http://www.top-reit.co.jp

Business Report for the 10 th Fiscal Period

1-13-1 Nihonbashi, Chuo Ward, Tokyo(November 1, 2010 – April 30, 2011)

ON TO the Next Stage

Harumi Island Triton Square Office Towers

TOP REIT’S DECLARATION OF ITS BASIC POLICYAn Open LineA LETTER FROM THE EXECUTIVE OFFICER OF THE INVESTMENT CORPORATIONTOP REIT, Inc. (Top REIT) is committed to providing our investors with stable results and steady portfolio growth in themedium to long-term through the management of a diversified portfolio and optimal utilization of our sponsors.

Dear Investors,
We at TOP REIT, Inc. (Top REIT) andwill stagnate due to such factors as adiscern the impact of the earthquake on

Top REIT Asset Management Co., Ltd.

drop in the functionality of the supply

the real estate market.

sincerely pray for the speedy andchain in the manufacturing sector andcomplete recovery of the affected areas

suppression of personal consumption.

and express our condolences for therevenue of 5,967 million yen (period-

REIT has continued to steadily

on-period decrease of 1.5%), ordinary

manage its portfolio and prudently

income of 2,194 million yen (period-on-

manage its finances as it strives toperiod decrease of 0.5%). However due

In the Tenth Fiscal Period (November

expand the portfolio and maintainto recording of an extraordinary loss

Credibility

1, 2010 – April 30, 2011), the Japanesedividends. Despite the severe real

economy was in the midst of returning

estate market climate, Top REIT Assetof 37 million yen in expenses to repair

Property pipeline/warehousing function
Personnel support

to a solid path of recovery when theManagement’s observance of prudent

Great East Japan Earthquake hit Japan,

asset management enabled Top

followed by the ongoing nuclear plant

REIT to maintain a continued highincidents. The impact of these has

occupancy rate and to overcome acreated the risk that the economy

concentrated period of rent revisions

victims of the tsunamis and aftershocks
in relation to the Great East Japan
Earthquake on March 11, 2011.

Optimal Utilization of Sponsors

Sumitomo
Trust & Banking

in the Tenth Fiscal Period was operating

Under such circumstances, TopBASIC POLICYSPONSORS

Consequently, Top REIT’s performance

Nippon Steel City Produce(Nippon Steel Group)

Oji Real Estate(Oji Paper Group)

minor damages to the portfolio causedby the earthquake, net income was 2,157
million yen (period-on-period decreaseof 2.1%). Top REIT is also paying out adividend per unit at 13,922 yen.

by achieving major rent revision

Top REIT will continue to prudently

agreements that were mostly withinmanage its portfolio within thethe expected ranges. Furthermore,

projected continued stagnation of thedespite continuing to consider thereal estate market and take steady steps

acquisition of new properties, Top REIT

towards achieving the “NEXT STAGE”

decided to postpone the acquisition of

by acquiring new properties. We thankproperties this fiscal period because of

you and ask for your continued support

the economic climate and the need toand understanding.

Hiroaki Amano
Executive Officer
TOP REIT, Inc.

tenth FISCAL PERIOD

Performance Highlights

Category

10TH Fiscal Period
performance

Amano entered Sumitomo Trust and Banking Co., Ltd. in 1970. After serving as the General Manager of the Fukuoka
Branch, and Director and General Manager of Corporate Business Department I at the Head Office, he entered Wakachiku
Construction Co., Ltd. in 2001 and served as Managing Director. He was appointed as Corporate Advisor of TOP REIT AssetManagement Co., Ltd. in July 2009 and he has been Executive Officer of TOP REIT, Inc. since August 2009.

11TH Fiscal Period
Forecast(ANNOUNCED ON June 14, 2011)12TH Fiscal Period
Forecast(ANNOUNCED ON June 14, 2011)		

181 days		

184 days		

182 days

operating revenue¥

5,967 million¥

5,806 million¥

5,320 million

Operating income¥

2,971 million¥

2,752 million¥

2,465 million

Ordinary income¥

2,194 million¥

1,954 million¥

1,721 million

Net income¥

2,157 million¥

1,953 million¥

1,720 million

Dividend per unit¥

13,922¥

12,600¥

11,100Period of asset management

Number of investment units

		 155,000 units

		 155,000 units

		 155,000 units

Portfolio size

		 15 properties				

15 properties

15 properties

Note: The forecasts presented above are the current estimated figures calculated based on certain assumptions and actual figures
may vary due to changes in circumstances. The forecasts should not be construed as a guarantee of the actual dividends.

1 Business Report for Tenth Fiscal Period[ CONTENTS ]1 TOP REIT’S DECLATION OF ITS BASIC POLICY

9 Financial Standing

1 TENTH FISCAL PERIOD PERFORMANCE HIGHLIGHTHS

11 PROPERTY HIGHLIGHTS

2 An Open Line:A LETTER FROM THE EXECUTIVEOFFICER OF THE INVESTMENT CORPORATION

13 PORTFOLIO SUMMARY

3 An Open Line:A LETTER FROM THE PRESIDENT
OF THE ASSET MANAGEMENT COMPANY
8 Questions Received After the Earthquake
Regarding Properties
8 Measures for Electricity Conservation
this Summer

14 PORTFOLIO LIST
15 PORTFOLIO
17 TOP REIT ASSET MANAGEMENT CO., LTD.
19 UNIT PRICE PERFORMANCE AND VOLUME TABLE/
UNITHOLDERS/IR SCHEDULE
20 ASSET MANAGEMENT OVERVIEW: FINANCIAL summary

Business Report for Tenth Fiscal Period 2

An Open LineA LETTER FROM THE PRESIDENT OF THE ASSET MANAGEMENTCOMPANYON TO THE NEXT STAGE

Metal Industries Co., Ltd. These facts

major biannual rent revisions. The(3) Top REIT Postpones Property

have contributed to the high occupancy

primary properties where we faced

Acquisitions

we have maintained since listing.

rent revisions during this fiscal period

October 2010), Top REIT was facing

Tenth Fiscal Period (November 1, 2010 ~ April 30, 2011) from the perspective ofNobuhito Endo

Koen Building. However, TRAM

the asset manager. The overview is presented by Nobuhito Endo, President andPresident and Representative Director
Top REIT Asset Management Co., Ltd.

orchestrated continued leasing activities

with growing public offerings points

2. Successfully Secured

conditions that surround Top REIT. In

to an improvement in the environment

Stable Revenues in the Tenththe case of the real estate rental market,

for fund raising and consequently

Fiscal Period Despite Severe

the vacancy rate in Central Tokyo

growing acquisitions of properties. As

Conditions

continues to fluctuate at a high level.

for the J-REIT market, the Bank of Japan

Despite the fact that there are somehas begun buying J-REIT investment

Class S and Class A buildings whereunits and this is expected to strongly

rents have previously been adjusted

contribute to stabilizing the market

and the climbing of the vacancy rategoing forward.

buildings where there are positive
trends such as companies moving-in to
obtain more floor space. There has notbeen a full-fledged recovery in rental
demand. In the case of rent levels,
there has been a gradual slowing in thebreadth of the decrease, but the market
is still relatively weak and a lot of timeis probably necessary before there is atrue recovery.

1. Earthquake’s Impact on theand during the Tenth Fiscal Period,

Portfolio
As for the earthquake’s impact on our
portfolio, there was no damage that
affects management conditions. Top
REIT Asset Management contractedwith an external expert to conduct

space, the use of free rent for a set

total number of tenants TRAM had

both the Nittetsu Honmachi Building

period even if the space has been filled,

to negotiate with, including those of

and Faret East Building recovered

etc. This means there is a greater riskother buildings, was sixteen. These

occupancies of 100%. Furthermore,that the dividend will be lowered. Top

tenants comprise around 30% of all

the luxury residential complex known as

REIT is no exception. The dividend levelmonthly rental revenues collected

Fukasawa House maintained an average

will be lowered in the Eleventh and(including common expenses). As theoccupancy of 94% for the fiscal

Twelfth Fiscal Periods due to lower rents

asset manager, TRAM is also aware that

period. Furthermore, Ecology Toyosu

as a result of the negotiated major rent

it is just these times where the asset

revisions discussed earlier, the key tenant

manager is tested for its managementthat has very convenient access andof Akasaka Oji Building relocating andabilities and so TRAM committed itself

is comprised of primarily studio

depending on the actual terms given toto negotiating new rents that fell withinapartments, reached an occupancy of

new tenants.

the expected range with these tenants.

100% in February 2011 and enjoyed anaverage occupancy of more than 98%

TRAM diligently negotiated with eachfor the fiscal period.

tenant within the opaque economic
earnings of the tenants were severe

Period and has successfully managed

includes the time needed to lease up

term lease contract was maturing. The

Steady Returns through Optimal

than 99% for the entire Tenth Fiscal

tenants relocate. Down time risk

with the subleasing firm whose fixed

climate in which the corporate

Top REIT posted an occupancy of more

has been brought under control withto leasing up the space after previous

where we faced contract negotiations(1) Maintain High Occupancy andManagement of Portfolio

moving out and down time risk related

Island Triton Square Office Tower Z

Procentury, a residential propertyFirst, let me explain the real estate

rents will be lowered, risks of tenants

cho Sanchome Building and Harumi

Building, Faret East Building and Shiba-

Endo entered Sumitomo Trust and Banking Co.,
Ltd. in April 1978. He was promoted to General
Manager of the Real Estate Management
Department in April 2004 and served as theGeneral Manager of the Real Estate Information
Development Department from April 2006. He wasappointed President and Representative Directorof TOP REIT Asset Management in July 2007 andExecutive Officer of Top REIT in October 2007. He
resigned as Executive Officer in July 2009 to focus
on his asset management duties.

has been an emergence of risks thatflagship properties, Kanda-Nishiki-

vacancies in Nittetsu Honmachi

Representative Director of Top REIT Asset Management Co., Ltd. (TRAM).

real estate market conditions, there

Square Office Tower Y, one of ourof the Ninth Fiscal Period (end of

The following is an overview of TOP REIT, Inc.’s (Top REIT) performance over its

Within the present stagnation ofwere part of Harumi Island Triton

Furthermore, reflecting on the end(2) Most Rent Revisions Fall within

Under these conditions, the acquisitionof new properties is essential to reduce
the scope of the fall in the dividendlevel.

and the needs they faced for reducing

Top REIT has been aware of the severity

costs strong. As a result of TRAM’sof this situation from before and in

The Tenth Fiscal Period was a criticalefforts, most of the negotiations were

the Tenth Fiscal Period we continued

period for Top REIT in which if facedcompleted within the expected range.

to source information using various

Expectations

the end-of-period occupancy at over
99% since listing. It is true that theJapanese real estate rental market

HISTORY OF OCCUPANCY

continues to struggle with vacancies
growing and rent levels being weak.

(Gross rentable floor space: m2)

325,000

studies on the fourteen properties weApproximately 75% of our portfolio

300,000

own in the Tokyo Metropolitan Area.

is comprised of major office buildings

275,000

99.8

99.9

99.7

99.5

Occupancy (%)(Occupancy: %)

99.5

99.5

99.2

99.2

99.2

99.4

99.5

99.8

99.6

99.5

99.5

100

99.7

99.6

Gross rentable floor space

95
90

276,833.20

283,622.23

291,647.88

291,627.72

291,627.72

This expert found minute damage toin the central three wards of Tokyo –On the other hand, in the case of

the interiors and exteriors, facilities, etc.,

Chiyoda, Chuo and Minato – including

the real estate investment market,

but the cost of the restorations related

the NEC Head Office Building and

225,000

reorganization of the J-REIT market has

to the concerned damage was only

Office Towers Y and Z of Harumi

200,00075

progressed with a number of J-REIT

37 million yen and this was recorded

Island Triton Square. Additionally,

mergers being completed and thisas an extraordinary loss in the Tenthrepresentative companies of Japan use

175,000 178,104.46

70

has led to an increase in size and an

Fiscal Period as an earthquake related

our properties as head offices including

150,000

65

improvement in trust. This combined

expense.

Nippon Electric Co., Ltd. and Sumitomo

125,000

3 Business Report for Tenth Fiscal Period

261,671.68

250,000

261,671.67

283,622.23

283,622.23

291,627.72

291,627.72

291,627.72

291,627.72

85

291,627.72

291,627.72

80

229,231.70

IPO
Mar.
2006
(End of)Oct.
(1st FP)

Apr.
(2nd FP)
2007

Oct.
(3rd FP)

Apr.
(4th FP)
2008

Oct.
(5th FP)

Apr.
(6th FP)2009

Oct.
(7th FP)

Apr.
(8th FP)2010

Oct.
(9th FP)

Nov.

Dec.

10th FP

Jan.

Feb.

Mar.

Apr.
(10th FP)

May

60

2011

Business Report for Tenth Fiscal Period 4

An Open LineA LET TER FROM THE PRESIDENT OF THE ASSET MANAGEMENT COMPANY

3. TOP REIT’s Management

are based. Please see page 1 for the(2) Projections on Leasing Up the(3) Implementation of a Recovery PlanAs the asset manager, TRAM regrets

competitive office buildings in Central

Policy and Strategy Going

projected operating revenue, etc.

Akasaka Oji Buildingthat Foresees the Twelfth Fiscal Period

the concerns it is causing the investors,

Tokyo and or residential properties with

ForwardDividend Level as the Bottom

but also announces that the following

channels so that we could acquire

good access to CBDs and excellent
convenience. There were a number ofcandidate properties where we were

A. The fifteen properties owned by
Top REIT as of June 14, 2011 are thebroke the news that Sony Computer

As described earlier, Top REIT expects

stable management performance

assumptions for the portfolio.

Entertainment, one of our key

the Twelfth Fiscal Period to be a difficult

tenants, would be consolidating inperiod. The major development that

the Shinagawa District. Since then we

will have a negative impact on the

Period is the bottom and that a recovery

have had inquiries about this building

figures is the relocating of the key

is commenced in the Thirteenth Fiscalfrom real estate brokers and individual

tenant at the Akasaka Oji Building andPeriod and after.

companies. Later, in December 2010,

the accompanying results of attracting

A. TRAM will proactively work to lease

Top REIT received from the tenant a

successor tenants.

up the Akasaka Oji Building so thatgeneral report on its relocation plans

We are presently in the midst of

the vacant period can be minimized

conducting earnest tenant leasing

and work to lease up tenants that will

activities, but candidates are reflecting

pay a certain level of rent.

B. For real estate revenue for existing

However, we are aware that the

towards acquisitions, but the recent

properties, Top REIT takes into

Eleventh and Twelfth Fiscal Periods

Great East Japan Earthquake occurredconsideration execution of new

will be periods that test the truein the midst of the final negotiation ofmanagement prowess of Top REIT andterms with the sellers. The Earthquake

TRAM.

suddenly and completely transformed

management strategy (recovery plan)

Top REIT was able to post relatively
during the Tenth Fiscal Period.

negotiating specific terms with sellers

In the spring of 2010, newspapers

agreements, early termination ofagreements, etc. that have been
finalized as of June 14, 2011, along

the social and economic situation andIn particular, the most critical issue

with current real estate leasing

we were forced into making a decisionfacing Top REIT is that the leasemarket conditions, and also takes

as to whether or not we should go

agreement with Sony Computer

into account factors that may causethrough acquisitions under such

Entertainment, the key tenant of thefluctuations in such aspects asconfusion. TRAM, as the asset manager,

Akasaka Oji Building, matures onrisks of reductions in revenue duebe terminated on September 18, 2011.

reflected on the core responsibilities of

September 18, 2011 and the company

to decreased amounts of rent of

TRAM has continued to follow up withterms that fall below present rent levels

asset management and reconfirmed ourwill relocate at that time. Consequently,

tenants when they reach their rent

other parties that had made inquiries

and that demand free rent for a set

duty to maintain and improve investor

Top REIT must advertise for and leaserevision period hereafter.

from before and has conducted full-period of time. Therefore, even if thevalue for our investors. Consequently,

up about 2,000 tsubos.

fledged leasing activities following

property is successfully leased up, there
is little possibility that rental revenues

C. For the balance of interest-bearing

we decided that our priority should be

and rough relocation schedule. Then in
March of this year Top REIT received anotice that the lease agreement would

the slump of the real estate leasing

will be implemented to ensure thatthe dividend level of the Twelfth Fiscal

B. TRAM will continue to prudently

market and submitting offers withmanage the other portfolio
properties and further strengthen
tenant relations as a means to defend
against further tenant relocations andto maintain the occupancy rate.

liabilities, the assumption is that 67.5

receipt of the official termination

to discern the impact of the Earthquake(1) Projected Management Overview for

million yen in long-term payables

notice. As a result, there are several

will be generated from the date theand we re-ordered engineering andthe Eleventh and Twelfth Fiscal Periods

will be paid during both thecandidate tenants proactively

lease commences and so there is awith tenants on rent revisions that

Eleventh and Twelfth Fiscal Periods.

considering the location and we havestrong possibility that revenues will not

Top REIT faces in the Eleventh andAdditionally, the assumption for

negotiated lease terms with each

improve for a certain period of time.

Twelfth Fiscal Periods.

loans to be repaid in November

candidate. Unfortunately, the Greatis that they will be refinanced at a

East Japan Earthquake changed thecertain interest level.

market abruptly and candidates asked

other reports on the buildings we wereFirst, the following are the assumptions

planning to acquire. We thus decided

on which the projections for theto postpone the acquisitions and to not

management conditions for theacquire properties during the Tenth

Eleventh and Twelfth Fiscal Periods

Fiscal Period.

C. TRAM will diligently negotiate· Faces Aoyama-dori Street (Route 246)
to feature high visibility, while standing
adjacent to Akasaka Imperial Gardens
where the Crown Prince’s Palace islocated as well as the Canadian Embassy,
which provide abundant greenery
despite the business surroundings

AKASAKA OJI BUILDING

to terminate negotiations so that they
could review their relocation plans.
We are presently once again fully
HISTORY OF office RENT REVISIONS (ACTUAL)

dividends per unit (actual and forecast)committed to leasing activities.
As of June 14, Top REIT has successfullyMonthly rent before revision

15,00013,484-13.8%

250

Further, the property’s pleasant(yen/unit)

14,22013,922environment, despite being in Central(forecast*)
12,60012,000+0.5%

tenant candidates to highly appraise

activities in a manner that fully realizes
0

8th FP

9th FP

10th FP

11th FP

12th FPthe strengths of Top REIT.

Akasaka Oji
Building

So

tob

ori

Kokkai-Gijido-mae Sta.

i

Tameike-Sannori S Sta.
t.

-do

Cir

cula

rR

oute

Akasaka Sta.

ChiyodaGinza Lin

e

er

Line

ei

Oe

do

Tokyo Midtown

pp

Lin

Ro

e

Roppongi Sta.
gi S

pon

Rop

ta. Hib

iya

ori

i-d

g
on

Lin

e

St.

Roppongi-Itchome
Sta.

Line

To

· Administration by staff / mechanicalsecurity at night and on holidays

iya

Nogizaka Sta.

NambokuLine

1st FP 2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP 9th FP 10th FPof their industry and to conduct leasing

National Diet
BuildingchTBS
Broadcasting
Center

Hib

-6.5%

M
Lin aru
e nou

St.

St.

0

-1.4%

St.

+9.1%

3,000

dori

ama-

Aoy

Embassy of Canada

ashi-dori+7.8%

AoyamaCemeteryori
Nishi-d+0.2%

continue approaching firms regardless

Gaien

50

apparel firms. Top REIT plans to+14.9%

Sta.

ine Honda Motor

za L

Gin

Line

Gaien Hig

100

6,000

mon

Inn

strong interest centering on IT and-5.8%

Akasaka Imperial Gardenzo
Meijijingu
Han
Gaien
Aoyama-Itchome· Has specifications comparable to mostmodern office buildings, including
individually controlled air conditioning
systems (renewed in 2006), officeautomation-compatible floors andleasable to multiple tenantsay

the property and Top REIT has received

150

ssw

9,000

pre

200

and its excellent convenience has led

Ex

+0.1%

Tokyo near Aoyama or Roppongi,(forecast*)
11,100uto

300

Increase in monthly rentMonthly rent before revision· Located a four-minute walk from Aoyama
1-chome Station on the Tokyo Metro
Ginza Line and Hanzomon Line and Toei
Oedo Line, enjoying high convenience
for accessconcluded a contract with one tenant.

Sh

Rent revision results(%) =(mn yen)

Revised monthly rent

Kamiyacho Sta.

Note: The forecasts should not be construed as a guarantee of the actual dividends.

5 Business Report for Tenth Fiscal PeriodBusiness Report for Tenth Fiscal Period 6

An Open LineA LET TER FROM THE PRESIDENT OF THE ASSET MANAGEMENT COMPANY

Questions Received After the Earthquake Regarding Properties
D. TRAM and Top REIT will strive

the management projections for theon acquiring properties that contributeto acquire new properties by

Eleventh and Twelfth Fiscal Periods will

to improving the revenues of the overall

broadly examining not only office

What were the effects of the earthquake on Harumi Island Triton Square?

be severe. Under the slumping real

portfolio while showing concern forbuildings in Central Tokyo but also

estate market conditions of today, it is

the levels of approaching dividends.

competitive rental apartments withunavoidable that rents will be revisedThis will still be based on the policy

strong locations and access.

downwards and this ultimately meansfor external growth and strategy for

4. Strategy For the NEXT

that dividend levels will also be reduced.

the REIT that has existed from before.

STAGE

It is essential for Top REIT to achieve

Therefore, Top REIT is committed toHarumi Triton Square is supported by a strong stratum (Kazusa layer group) locatedabout 30m below ground with plenty of soil bearing capacity. The conditions are about
the same as central urban regions such as Marunouchi and Shiodome.

continuing the management strategy❙ Aren't skyscrapers prone to severe damage in earthquakes?

Top REIT has not acquired a new

external growth by acquiring new

for the NEXT STAGE it has observedbuilding since the Kanda Nishiki-cho

properties in order to break out of thisfrom before and to realize the goals of

3-Chome Building in January 2010. As

situation. Top REIT and TRAM will

the NEXT STAGE by steadily expanding

long as there is no external growthcontinue to follow the management

the portfolio size in line with the

The bui lding employs a damage level control str ucture wh ich prote cts the main
structural material by passing the damage to the energy-absorbing material. It has theeffect of not only protecting humans but also mitigates the impact of earthquakes on
facilities and appliances. Also, with the energy-absorbing material, quick recovery fromdamage is made possible.

leading to a greater portfolio size,

strategy of placing the greatest priority

discerned best timing for doing so.

❙ What about tsunamis?

■ Factorsof Dividend Decrease at 11th FP and 12th FP· Major tenant moving out of Akasaka Oji Building
Completion of early leasing of Akasaka Oji Building· Possibility of free rent requests from new tenants· Weak rents due to delayed recovery of company results· Putting off of acquisition of new properties
Minimize range of decrease in rent revisions● Secure foothold for revenues through flawless management of existing properties· Place utmost focus on securing tenants for Akasaka Oji Building· In addition to continuing to strengthen tenant relations, implement measures to prevent
tenants moving out and maintain high occupancy rates● External growth that perceives good acquisition opportunities for superior properties(acquisition of superior properties with cash on hand + additional bank loans)
Accumulate greater·U tilize the sponsor’s strengths (properties owned or brokered by sponsors) as well as various information channels
revenues with· Target office buildings in Central Tokyo and residential properties in the Tokyo Metropolitan Areaacquisition of new

early recovery toproperties

13,000 yen ~ 14,000 yen

Asset class

Property acquisition target

target Portfolio
share

Offices❙ Excellent location in Central Tokyo❙ High-quality specifications❙ Properties with strong competitiveness (ability to attract tenants, long-life andstable operations)

Approx. 75%❙ Primary focus on residential properties· Located in Central Tokyo and surrounding areas, close to railway stations andwith excellent transit access· Stable occupancy rates and rent levels

Approx. 25%

Other thanoffices

Growth Strategy for the NEXT STAGE
Growth Methods
Fully utilize the Top REIT Edge
· Sponsor Strength· Superior Portfolio●Implement growth strategy with anextreme focus on the dividend level(13,000 yen ~ 14,000 yen)●

7 Business Report for Tenth Fiscal Period❙ Since Harumi is a landfill, does that mean the ground is weak?

Harumi Island Triton Square

The Harumi district is safeguarded by a seawall for earthquakes and is protected fromtsunamis and high tides. Harumi Triton Square is especially well protected as it faces
Asashio Canal which is surrounded by a seawall and a water gate. Also, Harumi is a
designated regional evacuation area for times of disasters.

Current Management Policy

Dividend level

When Harumi Island Triton Square opened, each tenant was given a pamphlet titled“Preparing for Earthquakes.” We are more confident in earthquake resistance now.

Has there been liquefaction at areas surrounding Ecology Toyosu Procentury?
❙ T here have been reports of liquefaction at Urayasu and parts of the Toyosu
district. What about TOP REIT's residential property in Toyosu?
There has been no liquefaction at Ecology Toyosu Procentury. Restoration works ofsome form or another are taking place at 13 owned properties and restoration costs
for this property is actually the lowest of the 13 properties at 99,000 yen. Only minimal
restoration work was required and it has already been completed.

Measures for Electricity Conservation this Summer
A restriction of electrical power use came into effect as of June 1, 2011 based on article 27 of the Electricity Business Act. Subject to therestriction are large consumers with contract electricity of 500kw or more in the supply area of Tokyo Electric Power and Tohoku ElectricPower. (Restriction in the supply area of Tokyo Electric Power: the hours between 9:00 – 20:00 of July 1, 2011 to September 22, 2011 except
Saturdays, Sundays and holidays)

Subject properties and measures of tenants
NEC Head Office Building

The tenant, NEC Corporation, established a power saving task force and is also planning to implement two weeks
holiday rotations at all of its operational locations (excluding factories and data centers) by splitting them into fourgroups.

Harumi Island Triton Square
Office Towers Y&Z

Major tenant of Office Tower Y, Sumitomo Metal Industries, Ltd, has been introducing summer time working hours.
At Office Tower Z, thorough efforts to turn off unnecessary lights, adjust lighting and use minimum air conditioning
are being implemented.

Kanda Nishiki-cho 3-chome
Building

The building’s tenant (there is only one tenant) will turn off all lights at 18:00 during this period. Besides this,
it is also implementing thorough efforts to turn off unnecessary lights, adjust lighting and use minimum air
conditioning.

Retail Properties

Ito-Yokado Co., Ltd. is turning off the lights on their exterior billboards and have installed demand controllers tomonitor and adjust electric usage. Also, shops at Musashiurawa Shopping Square are turning off unnecessary
lights, turning off lights of vending machines and other measures.

Akasaka Oji Building

Major tenant, Sony Computer Entertainment, Inc., will relocate in mid June and work for restoring to original
conditions will take place at the area they vacated, thus electricity usage of the building is anticipated to be largely
reduced.

Growth Strategy
While securing a foothold for revenues, acquire competitive and highly profitable properties
Flexibly select fund raising means according to the market environment· Bank loans: Flexibly utilize strong bank formation· Investment corporation bonds: Consider in view of market environment, etc.
·C
 apital increases through public offerings: Consider investment unit price levels and property
returns, as well as amount of net assets and dividend● Consider M&A and joining of new sponsors

Ecology Toyosu Procentury●●Top REIT's Measures
The following will be implemented at common areas and tenants will be asked to cooperate● Turn off unnecessary lights and suspend operation of some elevators● Raise air conditioning temperature and suspend some air conditioning● Turn off electric water heater at hot water supply room

● Turn off hand dryers at restrooms● Turn off exhaust fans
● Turn off lights of vending machines

Business Report for Tenth Fiscal Period 8

FINANCIAL STANDING:GREATER STABILITY WITH EXTENDED AVERAGE REPAYMENT PERIOD

was extended by converting the 23.4 billion yen inborrowings into long-term loans of approximately 5 years

conducted the following refinancing towards extending the●S preading out of repayment dates

average remaining period of interest-bearing liabilities, to offset●R educing interest rate fluctuation risks by executing aninterest rate fluctuation risks and to enlarge the fund raisinginterest rate swap agreement with 16.7 billion yen infinancing as its principal

platform.
1) R efinanced 6.7 billion yen in shor t-term loans that

*Expanded fund raising platform with the inclusion of
three new lenders*Reduced fund raising costs in the syndicate loan contractthat included the new lenders

matured in February 2011●C
 onverted the entire amount into short-term loans on therepayment date (February 2011)●P roceeded to convert this amount of financing into an

approximately 5-year syndicate long-term loan with three
new lenders participating, before maturity (March 2011)2) Refinanced 16.7 billion yen in long-term loans thatmatured in March 2011●C
 onverted the entire amount into an approximately 5-year

long-term loan on the repayment date (March 2011)*On the same date, the interest rate was fixed throughexecution of an interest rate swap agreement with theentire amount as principal
It is important to note that the refinancing clearly evidenced thestrengths of Top REIT and particularly realized the following
points.

As a result of the refinancing, the total interest-bearing liabilities
as of the end of the Tenth Fiscal Period was 94.11 billion yen andOutstanding Interest-bearing Liabilities
Balance of Loans by Lender●T he average remaining period of interest-bearing liabilities

a financial policy. During the Tenth Fiscal Period, Top REIT

Outstanding Interest-bearing Liabilities

Top REIT conducts prudent financial management based on

Sumitomo Trust and Banking

22,689mm yen

26.5%

Development Bank of Japan

6,565mn yen

7.7%

Mizuho Corporate Bank

15,946mn yen

18.6%

The Dai-ichi Life Insurance

1,000mn yen

1.2%

Sumitomo Mitsui Banking
Corporation

12,570mn yen

14.7%

Resona Bank

1,000mn yen

1.2%

Bank of Tokyo-Mitsubishi UFJ

12,570mn yen

14.7%

The Bank of Fukuoka (new)

3,000mn yen

3.5%

Chuo-Mitsui Trust and Banking
Company

4,190mn yen

4.9%

The Hiroshima Bank (new)1,000mn yen

1.2%

Mitsubishi UFJ Trust and Banking

4,075mn yen

4.8%

The Yamaguchi Bank (new)1,000mn yen

1.2%

85,605mn yen

100%

8,500mn yen-

94,105mn yen-

Subtotal
No. 1 Unsecured Investment Corporation Bonds

Total

the LTV was 50.5%.
There are no interest-bearing liabilities that mature in the(Note) The above rates are rounded to the first decimal place.

Eleventh Fiscal Period. Top REIT is committed to achieving
diverse and flexible fund raising as it prepares to acquire new

SPREADING OUT OF REPAYMENT DATES AND EXTENDING REMAINING PERIODS

properties and refinance existing interest-bearing liabilities*Scheduled repayment of 67.5 million yen each period between the 10th FP and 21st FP

in the future. As for the fund raising to achieve the goalsof the “NEXT STAGE,” we will conduct prudent financial
management that flexibly selects between the use of cash on(million yen)
25,000

hand, bank loans, issuance of investment corporation bonds,
public offerings and such after adequately considering the

20,000

6,700

6,700
1,670

returns on the properties to be newly acquired and the market
environment.

4,908

15,0001 year and 9 months

9th FP(as of October 31, 2010)

10th FP(as of April 30, 2011)

9,800

9,000

1,273

No. 1 Unsecured
Investment
Corporation Bonds

10,000AVERAGE REMAINING PERIOD OF INTEREST-BEARING LIABILITIES

11,1895,000

016,7003,000

16,7002 years and 6 months

Short-termLong-termLong-term

8,500

10th
FP

11th
FP

12th
FP

8,500

6,300

13th
FP

4,000

14th
FP

15th
FP

16th
FP

17th
FP

1,823
18th
FP

19th
FP

20th
FP

22nd
FP

21st
FP

HISTORY OF DEBT STRUCTURE AND LTV(100 million yen)

1,000
Short-term

47.4%

Long-term

750

LTV

37.1%
500

250

27.8%

28.0%
209.0

334.0

25.0
334.0

37.3%

103.0
727.0

47.3%
93.0
727.0

47.3%
132.8
684.6

47.3%

50.6%
67.0

50.5%
67.0

875.4

874.7

MANAGING THE RISK OF FLUCTUATING INTEREST RATES

(%)
60

45

132.8
684.6

50.5%

941.1

(%)
100

RATIO OF LONG-TERM LOANS
Short-term

7.0

7.1

7.1

38.5

80

IPO

1st FP(End of)2nd FP

30

60

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

Floating

19.1 24.9 24.0

35.9

37.9 37.9

10th FP

40

100.0

93.0

87.6 88.7 83.8 83.8

92.9 92.9

100.0

0

52.8 52.8 47.3

100.0
40

1st FP(End of)2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP062.1 62.1

42.4

20

IPO

80.9 75.1 76.0

64.1

61.5

15

0

Fixed

60
100.0

Conduct operation with a target ratio of loans to total assets (LTV)of around 50% in contrast to the 60% ceiling

3rd FPRATIO OF LOANS WITH FIXED INTEREST RATES

80

20
0

(%)
100

57.6

544.0

334.0

12.4 11.3 16.2 16.2

Long-term

IPO

1st FP(End of)2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

47.2 47.2 52.7

8th FP

9th FP

10th FP(Note) The interest-bearing liabilities (long-term) as of the end of the 9th FP and 10th FP include investment corporation bonds.

9 Business Report for Tenth Fiscal PeriodBusiness Report for Tenth Fiscal Period 10

property HIGHLIGHTs

property HIGHLIGHTs
properties certified as near-topTop REIT
level oThreefSpecial Global

NEC HEAD OFFICE BUILDING

Warminrior“Supeasure Office Buildin g
e
m
r
e
t
n
gs”
Cou
the Tokyo Metrop

is based onironmental Prese olitan Ordinancrvationewhich
on Env(certified May 26, 2011)

Harumi Island Triton
Square Office Towers Y&Z“Superior Special Global Warming Countermeasure
Office Buildings” refer to office buildings where thosewith extremely superior levels of promoting global
warming countermeasures are certified as “top-level”
and those with superior levels of such are certified

Top-level officebuildings

Near-top-level officebuildings

buildings, are reduced for certified buildings. Various

14

22

ura

October 2001

e

t.
iS
or

sa
ku

-d

sa
iA

Sh
in-

Line
ome

Oh
as

hi-

do

ri S

t.

To
e

wa

Lin

-do

Gi

uo
Ch

Sh
o

Kaigan-dori St.

ri S
t
nz .
a
Lin
e

en
Shinkans
Tokaidoikam
Yur

Dai-Ichi
KeihinRouteToei Asakusa
Line
JR
Line
Yok
osu
Shu
k
aL
to E
ine
xpre
ssw
ay R
oute
1

St.
Hibiya-dori

Sakurada-dori St.

t.
ri S

da

-do

Namboku LineSakCompletioneTsukiji

Tsukishima Sta.

Tsukishima

Tsukiji Market

i
oe

T

do

Oe

Hamarikyu Garden

Kachidoki Sta.
Yu

rika

mo

me

Kachidoki

Reimeibashi

e

Lin

e

Shibaura	Y: 267,132.67m2
Z: 267,132.67m2

Lin

11 Business Report for Tenth Fiscal Period

Tamachi Sta.

n

Mo

Floor space

o

kyo

To

il
ora

Etchujima Sta.

chToei Mita Line

Mita Sta.

Tsukijishijo
Sta.

Hinode Sta.

e
Lin	Ownershipku

Keio University

St. Luke's
International
Hospital

Tsukiji Honganji

.

28.1%

Embassy of
Italy

Mita

NEC
Head Office
Building

ine
a L Tsukiji Sta.

biy

Hi

St

Portfolio share

Embassy ofAustralia

Shibakoen
Sta.

Shuto Ex
Inner C pressway
ircular Ro
ute

Kyu Hama Takeshiba
Sta.
Rikyu Gardenori

41,950 million yen

Hamamatsucho
Sta.

i-d

Acquisition price

The Prince
Park Tower Tokyo

Akabanebashi Sta.

Harumi, Chuo Ward, Tokyo

Type of titleraJanuary 1990

ine

Address
Higashi-Ginza Sta.

Yu

Completion

do L

Ginza Sta.

rum

144,476.05m2

i Oe-JubanSta.

Daimon Sta.

subject to assessment.

Ha

Floor space

Toe

Azabu

Shibadaimon

facility performances and operational systems areLin(ratio of quasi-co-ownership is 50%)

Higashi-Azabu

Shibakoen

reduction obligations, imposed on large-scale officeiyo	Quasi-co-ownership (jun-kyoyu) of beneficiaryinterests in trust of real estate (shintaku jueki-ken)

Tokyo Tower

the governor of Tokyo. Greenhouse gas emissions

Ke

Type of title“near-top-level” according to the standards set by

Shiba, Minato Ward, Tokyo

Shuto
Route Expressway2

Address

Number of Top Level Office Buildings
Certified in 2011 (Tokyo)

Harumi Island
Triton Square
Office Towers Y&Z

Acquisition price 	Y: 33,000 million yen
Z: 20,000 million yen
Portfolio share

Y: 22.7%; Z: 8.4%

HarumiLin

e

Business Report for Tenth Fiscal Period 12

PORTFOLIO SUMMARY

Portfolio list

BUILDING A SUPERIOR PORTFOLIO THAT GENERATES STEADY RESULTSTOP REIT HAS CONSTRUCTED A POWERFUL PORTFOLIO OF SUPERIOR PROPERTIES WITH EXCELLENT PERFORMANCE(end of Tenth Fiscal Period)

J - R E I T p o r t fo l i o m a n a g e m e nt c a n b e d e f i n e d a s t h equalitative improvement of assets based on a basic core

conducting of investment by an asset management company

policy of managing a diversified portfolio and optimallyfor its J-REIT in accordance with said J-REIT’s investment

utilizing sponsors’ strengths. Therefore, Top REIT Asset

pol icy and the management of said J-REIT’s por tfol ioManagement is devoted to creating a special value added forw ith the ai m of max i m i zing the value and prof itability

the existing portfolio by applying our management strengthof the overal l por tfol io. The basic pol icy of Top REIT

and optimally utilizing our sponsors.

Portfolio Data
Asset
Class

Area

Property Name
NEC Head Office Building

・Targeted areas are the three major metropolitan areas andcore regional cities nationwide
・Asset allocation is targeted at up to 50% (Note)

OfficeBuildings

RetailProperties

Residential
Properties

・Targeted areas are primarily the Tokyo metropolitan area, thethree major metropolitan areas and cities designated bygovernment ordinance・Asset allocation is targeted at up to 50% (Note)

33,00038,70022.7

20,00014,3008.4

12,70014,000

8.2

Akasaka Oji Building

9,660

9,570

5.6

Shiba-Koen Building

5,770

3,410

2.0

Kanda Park Plaza

5,156

4,970

2.9

Tokyo Metropolitan Area

Faret East Building

2,091

2,430

1.4

Kansai Area

Nittetsu Honmachi Building

1,100

1,430

0.8

131,427

136,760

80.1

Sagamihara Shopping Center

12,00010,300

6.0

Ito-Yokado Higashi-Narashino
Store

8,900

5,560

3.3

Musashiurawa Shopping Square

4,335

3,810

2.2

25,235

19,670

11.5

Fukasawa House Towers H & I

10,6356,990

4.1

Ecology Toyosu Procentury

5,160

4,590

2.7

15,795

11,580

6.8

2,590

2,660

1.6

2,590

2,660

1.6

175,047

170,670

100.0

Harumi Island Triton Square OfficeTower Y
Harumi Island Triton Square OfficeTower Z
Kanda Nishiki-cho 3-chome
Building (former Sumitomo
Corporation Nishiki-cho Building)

Subtotal (9 properties)

portfolio history
Expansion of Portfolio

End of 5th Fiscal Period

End of 10th Fiscal Period

Harumi Island Triton Square Office Tower Z
and other properties

49 billion yen. Total 6 other properties

Kanda Nishiki-cho 3-chome Building

RetailTokyo Metropolitan Area

12.7 billion yen

Subtotal (3 properties)

Residential
8 properties

14 properties

113.286 billion yen

15 properties

162.347 billion yen

Diversification of Uses
Retailproperties

Residential 9.0% Other 1.5%

Retailproperties

18.4%

Office buildings

75.1%

Other

33.8%

37.0%

Note 3: Investment Breakdown indicates the proportion of each property’s appraised value to the total appraised value of all properties. Figures are rounded to the first decimal place.
Note 4: Property name was changed on December 15, 2010.

Other

41.5%

NEC
Head Office
Building

25.8%

Other

45.8%

Harumi Island
Triton Square
Office Tower Y
Harumi Island Triton Square
Office Tower Y 29.1%

Subtotal (1 property)

Note 2: Appraised Value at End of Period indicates the appraisal value (as of April 30, 2011) by real estate appraisal firms based on the asset evaluation method, a standard stipulated in the
Articles of Incorporation and rules by the Investment Trusts Association, Japan.

Diversification of Property Share Risk
NEC
Head Office
Building

OAK PLAZA

Note 1: Acquisition Value indicates the transaction price (pre-tax price) described in the real estate sales agreement and the trust beneficiary interest transfer agreement concluded uponacquiring each of the properties.

Office buildings

73.1%

Central Tokyo

Total

14.4%

Office buildings

81.6%

Other

Retailproperties

15.5%

Tokyo Metropolitan Area

Subtotal (2 properties)

175.047 billion yen

Residential 9.7% Other 1.6%(%) (Note 3)

28.1

OfficeNote: The actual investment ratios may surpass the targets described above temporarily or for a certain period of time, including the start of management due to giving priority to dynamicallysecuring investment opportunities for competitive properties and other reasons.

End of 1st Fiscal Period(million yen) (Note 2)(Note 4)・Targeted areas are regions that are appropriate for each usageof the property
・Asset allocation is targeted at up to 10% (Note)

Other
Assetsyen) (Note 1)

INVESTMENT
BREAKDOWN

47,950Central Tokyo

・Targeted areas are primarily Central Tokyo, the three major
metropolitan areas and core regional cities nationwide
・Asset allocation is targeted at up to 80% (Note)

APPRAISED VALUEAT END OF PERIOD

41,950c onsist s of the pu r su it of both ext er na l g row th a nd

Diversified Portfolio

ACQUISITIONVALUE (million

Harumi Island Triton Square
Office Tower Z 12.3%

20.3%

NEC
Head Office
Building

24.0%

Harumi Island
Triton Square
Office Tower Y
Harumi Island Triton Square
Office Tower Z 11.4%

18.9%

Note: The charts represent rounded figures and so totals sometime do not equal 100.0%

13 Business Report for Tenth Fiscal PeriodBusiness Report for Tenth Fiscal Period 14

TOP REIT Remains Committed to Building a Strong,
Diversified Portfolio Centered on the Tokyo Area

Portfolio

tokyo
metropolitan
area

CentralKeisei Ueno

Tokyo

Asakusa

BUNKYOWARDSHINJUKU
WARD

Oshiage
Faret East
Building

Akihabara
KameidoOak plaza

NAKANO
WARD

Kanda

Shinjuku

CHIBA

TOKYO

Ueno

Takadanobaba

NakanoMusashiurawa
Shopping Square

SAITAMA(as of the end of April 2011)

Kinshicho
Ito-Yokado HigashiNarashino StoreCHIYODA
WARD
Kanda Nishiki-cho
3-chome Building

KANAGAWATokyo

Sagamihara Shopping
CenterSHIBUYA
WARD
Akasaka Oji
Building

MINATO
WARD

Shibuya
Shimokitazawa

CHUO
WARD

Hamamatsucho

SETAGAYAWARD
Sangenjaya

Kanda Park Plaza

Shimbashi

Ecology Toyosu
Procentury

Total acquisitions (as of April 30, 2011)¥175,047 million

Umeda
Osaka
Shinkiba

Sengakuji

KyobashiAppraised value (as of April 30, 2011)¥170,670 million

Yodoyabashi

Properties

MeguroShinagawa

GotandaFukasawa House
Towers H & I

AREA

ToyosuShiba-Koen
Building

MEGURO
WARD

Kansai

NEC Head Office
Building

Kintetsu Nanba

Harumi Island Triton
Square Office Towers
Y&Z

15

Nanba

Rentable area

Nittetsu Honmachi
Building

291,627.72m2

Top REIT boasts a diversified portfolio built around Central Tokyo office properties
Geographic Area

Diversification of Assets in Portfolio

100%

Other
Retail

11.5%

80%
60%
40%

Retail

18.4%

2.0%

Residential 8.1%
Retail19.3%
Office

88.5%

1.6%

Other

Residential 6.8%
Retail

16.1%

Other

1.6%

Other

1.5%

Residential 9.7%

Residential 9.0%

RetailRetail

15.5%

14.4%

100%
80%
60%

Office

81.6%

Office70.6%

Office75.5%

Office73.1%

Office75.1%

40%

Osaka 1.1%

Osaka 1.0%

Osaka 0.8%

Osaka 0.7%

Osaka

Tokyo
Metropolitan Area

Tokyo
Metropolitan Area

Tokyo
Metropolitan Area

Tokyo
Metropolitan Area

Tokyo
Metropolitan Area

Tokyo
Metropolitan Area

Central Tokyo

Central Tokyo

Central Tokyo

4th FP

5th/6th/7th FP

8th/9th/10th FP

13.0%

Central Tokyo

19.8%

86.0%

Central Tokyo

IPO

1st FP(End of)

79.2%

28.6%

Central Tokyo

70.6%

24.2%

75.1%

0.7%

26.6%

72.8%

Osaka

0.6%

24.6%

74.7%

20%

20%

0%

0%
IPO

15 Business Report for Tenth Fiscal Period

1st FP(End of)2nd/3rd FP

4th FP

5th/6th/7th FP

8th/9th/10th FP

2nd/3rd FP

Business Report for Tenth Fiscal Period 16

TOP REIT ASSET MANAGEMENT CO., LTD. :Committed to making TOP REIT a leading J-REIT

Robust Support Key to Stability and Future GrowthA s t h e a s s e t m a n a g e r of Top R EI T, TOP R EI T A s s e tcontributing to achieving the sound growth and development

Top REIT enjoys the robust suppor t of th re e Japane s eof Nippon Steel; and Oji Real Estate (31%), the real estate

M a n a g e m e n t C o., L t d . ( T R A M ) i s c o m m i t t e d t o t h eof the real estate investment trust market and real estatebusiness leaders through TRAM. TRAM is sponsored anddeveloper and planner for the Oji Paper Group. The support

suc c essful management of the Top REIT por tfol io andm a rket , c ont r ibut i ng to t he g row t h of so c iet y a nd t heow ned by Sum itomo Tr ust and Bank ing (38%); Nippon

provided by these sponsors is outlined in the figure below.

t o d e l i v e r i n g o p t i m a l d i v i d e n d s a n d p e r fo r m a n c e t oeconomy, and the formation of a desirable city.

Steel City Produce (31%), the real estate development arm

investors. The management philosophy of the company

The operating philosophy that TRAM follows to achieve

calls for building Top REIT into a “top brand” for investors,

these goals is outlined in the figure below.

TOP REIT

Building an optimal portfolio with high quality properties
Implementing appropriate management

Mitigation of risk through diversified investment

An external growth strategy that applies
the pipeline function of the sponsors

Profitability

Optimal Application of Sponsors' Strengths

Growthpotential

Stability

Pipeline support
agreement

Building andManaging aBlue-chip Portfolio

Fairness

Corporate governancethat thoroughly
emphasizes complianceand risk management

Operating
Structure
Focused on
Investors

Transparency

Information disclosure
Proactive IR
Robust relationships with investors

17 Business Report for Tenth Fiscal Period

Capturing
Trust

Agreement on providing
warehousing support

Sumitomo
Trust & Banking

Financial Strategy
that Effectively
Flexibility
Implements
Financial Know-how

Soundness
Capturinga Top Brand
Position

TOP REIT ASSET MANAGEMENT

Flexible anddynamic
fund-raising

Maintenance of a soundfinancial condition

Nippon SteelCity Produce(Nippon Steel Group)

Oji Real Estate(Oji Paper Group)

Provision ofreal estate
investment
opportunities

Provision of
information
on properties
owned ordeveloped bysponsors or
their groups

Pipeline Function
Sponsors provide information
on available third party andsponsor group properties to
TOP REIT

Originationof structures
for acquiringproperties

Investment
andfinancing of
SPCs

Warehousing Function
Sponsors provide a temporary
ownership function for realestate to TOP REIT, enabling it
to secure blue-chip properties
in advanceReal estate
operation
andmanagementthat utilizes
the expertiseand riskmanagement
capabilities ofthe sponsors

Leasing
activities that
apply theinformationon leasing
demandpossessed bysponsorgroupsManagement Expertise
Sponsors provide value-add
property and othermanagement services

Business Report for Tenth Fiscal Period 18

Unit Price Performance and Volume Table
Unit Price (thousand yen)

Trading Volume (unit)

1,000

10,000
Trading volume
on the first day

Market capitalization

31,893 units

800¥76,182.5 mn

Historical high¥998,000

Historical low¥208,000(based on closing price)(based on closing price)

Asset Management Overview:
Financial summary

Unit Price (based on closing price)
Trading Volume

8,000

unit

6th FP
Nov. 1, 2008 –Apr. 30, 2009

7th FPMay 1, 2009 –Oct. 31, 2009

8th FP
Nov. 1, 2009 –Apr. 30, 2010

9th FPMay 1, 2010 –Oct. 31, 2011

10th FP
Nov. 1, 2010 –Apr. 30, 2011

mn yen

5,606

5,608

5,814

6,060

5,967

mn yen

5,606

5,608

5,814

6,060

5,967

mn yen

2,905

2,978

2,964

3,041

2,995

mn yen

2,346

2,429

2,405

2,451

2,414

Operating income

mn yen

2,700

2,630

2,849

3,019

2,971

Ordinary income

mn yen

2,047

1,960

2,091

2,204

2,194

Net income

mn yen

2,046

1,961

2,090

2,204

2,157

mn yen172,850

172,884

186,296

186,459

186,336

as of April 30, 2011600

category

6,000

IPO Price (¥550,000)(1) Operating results
4,000

400

Operating revenue(Note 1)

(Of which, rent revenue)
Operating expense

2,000

200

0

0
3/1
2006

6/1

9/1

12/1

3/1
2007

6/1

9/1

12/1

3/1
2008

6/1

9/1

12/1

3/1
2009

6/1

9/1

12/1

3/1
2010

6/1

9/1

12/1

3/1
2011

5/31

No. of Unitholders

8th Fiscal Period (Total No. of Units: 155,000)

8th Fiscal Period (Total No. of Unitholders: 6,879)

Individuals/other

Financial institutions (including securities firms)

Other domestic corporations

19,969 units (12.9%)

98 (1.4%)

14,220units (9.2%)

Financial institutions(including securities firms)

6,513 (94.7%)

Overseas corporations/individuals

Overseas corporations/individuals

26,656 units (17.2%)

124 (1.8%)

9th Fiscal Period (Total No. of Units: 155,000)
Individuals/other

19,556 units (12.6%)

9th Fiscal Period (Total No. of Unitholders: 6,830)
Financial institutions (including securities firms)

Other domestic corporations

105 (1.5%)

13,870 units (9.0%)

Financial institutions(including securities firms)

Individuals/other(-0.2)

(0.0)

(7.8)

(0.1)

(-0.1)

mn yen81,74081,74094,24094,172

94,105

Net assets

mn yen84,20884,14084,28984,43884,418Overseas corporations/individuals

Financial institutions (including securities firms)

113 (1.6%)

13,475 units (8.7%)

Financial institutions(including securities firms)

6,718 (94.8%)

97,259 units (62.7%)

Overseas corporations/individuals

Overseas corporations/individuals

23,674 units (15.3%)

114 (1.6%)(0.0)

82,26082,260Total cash distributions

mn yen

2,046

1,961

2,090

2,204

2,157

Dividend payout ratio

%

100.0

100.0

100.0

100.0

100.0

(3) Cash distributions

Number of Units outstanding

Other domestic
corporations

145 (2.0%)

Individuals/other(0.2)

82,260Net assets per unit

10th Fiscal Period (Total No. of Unitholders: 7,090)
Other domestic corporations

20,592 units (13.3%)(0.2)

82,260139 (2.0%)

113 (1.7%)

10th Fiscal Period (Total No. of Units: 155,000)(-0.1)

82,260unit

155,000

155,000

155,000

155,000

155,000yen

543,280

542,842

543,805

544,768

544,632

Dividend per unit

yen

13,206

12,654

13,484

14,22013,922(Earnings distribution per unit)

yen

13,206

12,654

13,484

14,22013,922(Distribution in excess of earnings per unit)

yen

-

-

-

-

-

Top REIT Revises English Web Site
End of Tenth Fiscal PeriodMay(5) Financial indices
Ratio of ordinary income to total assets(Note 3)%

1.2 (2.4)

1.1 (2.2)

1.2 (2.3)

1.2 (2.3)

1.2 (2.4)

Ratio of net income to unitholders’ equity(Note 3)%2.4 (4.9)

2.3 (4.6)

2.5 (5.0)

2.6 (5.2)

2.6 (5.2)

48.7

48.7

45.2

45.3

45.3

Ratio of unitholders’ equity to total assets

http://www.top-reit.co.jp/english

Rental NOI

(0.1)

(0.0)

(-3.5)

(0.1)

(0.0)

47.3

47.3

50.6

50.5

50.5

(Note 4)mn yen

4,412

4,284

4,535

4,691

4,639

case

14

14

15

15

15

(Note 5)

case

42

42

44

46

46

m2

283,622.23

283,622.23

291,647.88

291,627.72

291,627.72(6) Other referential information
Number of properties at end of period
Number of tenants at end of period

June

Top REIT has completely revised

Payment of dividend forTenth Fiscal Period

its website to provide investors with up-

Total rentable area at period end

July

to-date information on its activities.

Occupancy at end of period

AugustSeptemberEnd ofEleventh Fiscal Period

NovemberAnnounce performance ofDecember Eleventh Fiscal Period

Payment of dividend for
Eleventh Fiscal Period

February%%(Period-on-period variation)

Announce performance ofTenth Fiscal Period

January(Note 2)LTV

IR Schedule

October%Unitholders’ capital

Other domestic
corporations

Overseas corporations/individuals

20,601 units (13.3%)(0.1)

mn yen(Period-on-period variation)(4) Per unit information

6,473 (94.8%)

100,973 units (65.1%)

Individuals/other

Other domestic
corporations

144 (2.1%)

Individuals/other

94,155 units (60.7%)

2012

%

Interest-bearing liabilities(Period-on-period variation)

No. of Units Held

APRIL

(2) Asset, etc. (end of period)
Total assets

Unitholders

2011(Of which, expenses related to rent business)

%

99.2

99.2

99.2

99.5

99.7

Depreciation and amortization at end of period

mn yen

1,151

1,105

1,127

1,081

1,086

Capital expenditure at end of period

mn yen

412

97

544

83

464

(Note 6)Note 1: Operating revenue, etc. do not include consumption taxes.
Note 2: Net assets per unit have been rounded to the nearest yen.
Note 3: The indices above are calculated using the following formulas. In addition, annualized figures derived from the management period are indicated in brackets.
Ratio of ordinary income to total assets = Ordinary income / ((Total assets at beginning of period + Total assets at end of period) / 2) × 100
Ratio of net income to unitholders’ equity = Net income / ((Net assets at beginning of period + Net assets at end of period) / 2) × 100
Note 4: Rental NOI (Net operating income) = Rent revenue – Expenses related to rental business + Depreciation and amortization
Note 5: 	Number of tenants at end of period indicates total number of tenants of each property as of the end of the period. In the case a master lease agreement is concluded, it is counted as 1
tenant. In the case 1 tenant rents multiple units, it is counted as 1 tenant if the units are in the same property and as multiple tenants if the units are in multiple properties.
Note 6: Occupancy rate at end of period = Total leased floor area at end of period / Total leasable floor area at end of period
When a pass-through type master lease agreement has been concluded, the area subleased to the end tenants have been used as the leased floor area.
Note 7: Unless otherwise mentioned in the report, fractions of figures not indicated are rounded off for monetary amounts and rounded for ratios.

March

19 Business Report for Tenth Fiscal PeriodBusiness Report for Tenth Fiscal Period 20