2-1-6 Uchisaiwaicho, Chiyoda-ku, Tokyo

Security code: 8972

Semiannual Report April 2022 Fiscal Period
November 1, 2021-April 30,2022

Kenedix Office Investment Corporation1

To Our Unitholders
We at Kenedix Office Investment Corporation(“the Investment Corporation”) would liketo express our sincere appreciation to ourunitholders for your continuous support.
It is thanks to your support that the Investment
Corporation successfully finished the 34th fiscal
period (fiscal period ended April 30, 2022).
Again, we would like to express our sincere
gratitude for the support of our unitholders.
We seek to maximize unitholder returns byfocusing on investing in and managing midsized office buildings in the Tokyo metropolitan

YoshihiroMorishima,
Supervisory
Director

Akiko Tokuma,
Supervisory
Director

Hikaru Teramoto,Executive Director

Takahiro Seki,
Supervisory
Directorarea to generate stable profits and sustainably expand assets under management.
Also, we identified environmental, social, and governance (ESG) initiatives in real estate investment
management as one of the material topics for our business and aim to realize a sustainable society by
pursuing those initiatives.
We sincerely ask for further support and encouragement from our unitholders as we pursue these initiatives.

Conditions during the 34th fiscal period (fiscal period ended April 30,2022) and DPU (distributions per unit)
AUM (Total asset value)

JCR rating

DPU

445.6

AA

14,000billion yen(Stable)yen

For more details, please refer to the IR presentation materials for financial results.

Initiatives for unitholder returns
The Investment Corporation forecasts DPU of 14,150 yen (+150 yen compared to the level inthe 34th period) for two consecutive fiscal periods of the 35th (fiscal period ending October
31, 2022) and the 36th (fiscal period ending April 30, 2023).
The Investment Corporation will ensure stable level of DPU through the active use of internal
reserves and sale of properties.
Determined to acquire own investment units in an amount not to exceed 3 billion yen.
The Investment Corporation will continually strive to improve unitholder value over the medium
and long terms, by taking into comprehensive consideration levels of unit prices, the status ofcash on hand and other factors.
2

Financial Summary
Historical Operating Trends
For the 30th-34th Fiscal Periods

PeriodUnit

30th Period(Apr. 2020)

31st Period(Oct. 2020)

32nd Period(Apr. 2021)

33rd Period(Oct. 2021)

34th period(Apr.2022)

Operating revenues

millions of yen

15,272

16,71416,301

15,02815,891(Rental revenues)

millions of yen

15,215

15,583

15,11914,981

15,078Operating expenses

millions of yen

8,132

8,380

8,310

8,170

8,463

(Property-related expenses)

millions of yen

7,008

7,086

6,880

7,054

7,309

Operating income

millions of yen

7,140

8,334

7,990

6,857

7,427

Ordinary income

millions of yen

6,177

7,311

7,017

5,911

6,497

Net income (a)millions of yen

6,175

7,310

7,016

5,909

6,496

Total assets (b)(Period-on-period change)
Interest-bearing debt (c)(Period-on-period change)
Unitholders’ equity (d)(Period-on-period change)
Unitholders’ capital(Period-on-period change)

millions of yen%
millions of yen%
millions of yen%
millions of yen%

447,707(+1.8)
192,050(+3.8)
229,589(+0.1)
220,970(0.0)

459,719(+2.7)
201,750(+5.1)
230,665(+0.5)
220,970(0.0)

457,505(–0.5)
198,750(–1.5)
230,981(+0.1)
220,970(0.0)

456,327(–0.3)
198,750(0.0)
230,544(–0.2)
220,970(0.0)

464,802(+1.9)
205,150(+3.2)
231,763(+0.5)
220,970(0.0)

Number of investment units issued and outstanding (e)unit

428,510428,510428,510428,510428,510Unitholders’ equity per unit (d)/(e)yen535,786

538,295

539,034

538,015

540,859

millions of yen

6,175

6,592

6,592

5,999

5,999

Distributions per unit (f )/(e)yen

14,412

15,384

15,38414,00014,000(Earnings distributed per unit)

yen

14,412

15,384

15,38414,00014,000(Distributions in excess of earnings per unit)

yen

ー

ー

ー

ー

ー

Return on assets (annualized)*1, 2%

1.4(2.8)

1.6(3.2)

1.5(3.1)

1.3(2.6)

1.4(2.8)

Return on net assets (annualized)*2, 3%

2.7(5.4)

3.2(6.3)

3.0(6.1)

2.6(5.1)

2.8(5.7)

51.3(–0.9)
42.9(+0.8)

50.2(–1.1)
43.9(+1.0)

50.5(+0.3)
43.4(–0.4)

50.5(+0.0)
43.6(+0.1)

49.9(-0.7)
44.1(+0.6)

%

99.9

90.1

93.9

101.5

92.3

Number of properties

properties

99

98

96

96

97

Total leasable ﬂoor area

m2

488,127.53

488,010.71

482,299.10

482,247.31

491,113.35

Occupancy rate at end of period

%

99.5

98.1

96.7

97.6

98.3

Depreciation expenses for the period

millions of yen

2,470

2,523

2,548

2,567

2,588

Capital expenditures for the period

millions of yen

1,485

1,251

1,420

988

1,289

Leasing NOI (Net Operating Income)*5

millions of yen

10,676

11,01910,787

10,495

10,356

FFO (Funds from Operation)*6

millions of yen

8,646

8,776

8,635

8,477

8,314

yen

20,17820,48020,153

19,782

19,403

Total distributions (f )Net assets ratio at end of period (d)/(b)(Period-on-period change)
Interest-bearing debt ratio at end of period (c)/(b)(Period-on-period change)
Payout ratio*4 (f )/(a)%%Other references

FFO per unit*7*1 Return on assets = Ordinary income / {(Total assets at beginning of period + Total assets at end of period) / 2} × 100*2 Annualized values for the 182 days for the 30th Fiscal Period, 184 days for the 31st Fiscal Period, 181 days for the 32nd Fiscal Period, 184 days for the 33rd Fiscal Period and 181 days for 34th Fiscal Period.
*3 Return on net assets = Net income / {(Total net assets at beginning of period + Total net assets at end of period) / 2} × 100*4 Payout ratio is rounded down to the ﬁrst decimal place.
*5 Leasing NOI = Rental revenues – Property-related expenses + Depreciation expenses for the period*6 FFO = Net income + Depreciation expenses for the period – Gain on sale of real estate properties + Loss on sale of real estate properties*7 FFO per unit = FFO / Number of investment units issued and outstanding (ﬁgures below ¥1 rounded down)

Kenedix Office Investment Corporation

3

Financial StatementsofKenedix Office Investment Corporation
Thirty-fourth Fiscal Period: For the period from November 1, 2021 to April 30, 2022

With Independent Auditor’s Report4Kenedix Office Investment Corporation

Balance Sheet
As of April 30, 2022
As of April 30, 2022

As of October 31, 2021

In thousands of yen
AssetsCurrent assets
Cash and deposits (Notes 3)
Cash and deposits in trust (Notes 3)
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment (Notes 4 and 18)
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 (Note 7)
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
Construction in progress in trust
Total property, plant and equipment, net
Intangible assets (Note 4)
Leasehold right (Note 18)
Leasehold right in trust (Note 18)
Other
Total intangible assets
Investments and other assets
Investment securities (Note 15)
Lease and guarantee deposits
Lease and guarantee deposits in trust
Long-term prepaid expenses
Other (Notes 10,15 and 16)
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets¥¥

23,037,269 ¥
11,593,317
279,727
71,22010,14634,991,680

19,273,842
11,434,175
286,109109,784
8,478
31,112,390

18,127,176(7,449,568)
10,677,608
44,224(21,468)
22,755456,232(322,911)
133,320
104,554(79,754)
24,80027,520,902
130,362,510(40,770,613)
89,591,896
429,795(225,247)
204,547
2,075,571(981,465)
1,094,106
739,174(434,922)
304,251
296,760,716
800
426,335,705

18,103,290(7,140,580)
10,962,709
44,224(20,238)
23,985452,189(309,897)
142,292
101,522(76,005)
25,51627,520,902
128,595,353(38,615,129)
89,980,223
391,649(212,382)
179,266
2,003,777(917,306)
1,086,471
723,095(406,805)
316,289
291,876,758
5,300
422,119,717

285,257
346,10376
631,437

285,257
346,87798
632,233

1,136,860
10,000122,889
1,043,985
478,4432,792,179
429,759,322

1,138,386
10,000122,889
1,103,037
30,454
2,404,768
425,156,719

51,154
51,154
464,802,158

58,50358,503456,327,613¥

Kenedix Office Investment Corporation5

As of April 30, 2022
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable (Notes 6)
Current portion of investment corporation bonds(Notes 6 and 15)
Current portion of long-term loans payable (Notes 6,15 and 16)
Accounts payable–otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Other (Notes 15 and 16)
Total current liabilities
Non-current liabilities
Investment corporation bonds (Notes 6 and 15)
Long-term loans payable (Notes 6, 15 and 16)
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Other (Notes 15 and 16)
Total non-current liabilities
Total liabilities
Net Assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges (Notes 15 and 16)
Total valuation and translation adjustments
Total net assets (Note 11)
Total liabilities and net assets
See accompanying notes to the financial statements.

6

As of October 31, 2021

In thousands of yen¥¥

1,759,501
8,600,000
1,000,000
13,450,000
579,319
88,892
794
218,882
2,845,568
7,335－
28,550,295¥

1,642,689
10,600,000
1,000,000
18,550,000
465,668
87,958776
268,140
2,601,486
2,744
111
35,219,575

12,000,000
170,100,000
2,155,044
20,222,559
10,448204,488,052
233,038,347

12,000,000
156,600,000
2,128,145
19,551,492
283,539
190,563,178
225,782,754

220,970,508

220,970,508

3,828,434
3,828,434
6,496,709
10,325,143
231,295,652

3,917,542
3,917,542
5,910,032
9,827,574
230,798,082

468,158
468,158
231,763,810
464,802,158(253,223)(253,223)
230,544,859
456,327,613¥

Kenedix Office Investment Corporation

Statement of Income and Retained Earnings
For the period from November 1, 2021 to April 30, 2022
From November 1, 2021

From May 1, 2021

to April 30, 2022

to October 31, 2021

In thousands of yen
Operating revenues
Rent revenue – real estate (Note 13)¥

Other lease business revenue (Note 13)
Gain on sale of real estate properties (Note 13)
Dividends income
Total operating revenues

13,336,478¥

13,261,580

1,741,811

1,720,308

770,595－

42,214

46,86015,891,099

15,028,749

7,309,872

7,054,078

962,007930,027

Operating expenses
Expenses related to rent business (Note 13)
Asset management fees
Directors' compensation

6,300

8,400

Asset custody fees

23,65823,687Administrative service fees

58,94659,004

Audit fees

12,80012,800

Other operating expenses

89,82482,769Total operating expenses

8,463,409

8,170,767

Operating income

7,427,689

6,857,981

Interest income

48

45

Gain on forfeiture of unclaimed dividends

322

371

Interest on refund

75

7

446

424

Interest expenses

722,665

775,597

Interest expenses on investment corporation bonds

34,951

34,594

Financing-related expenses

Non-operating income

Total non-operating income
Non-operating expenses

149,392

128,022

Amortization of investment corporation bond issuance costs

7,348

6,802

Other non-operating expenses

15,831

2,277

930,189

947,294

Ordinary income

6,497,947

5,911,112

Income before income taxes

6,497,947

5,911,112

Current

1,240

1,181

Deferred(2)

6

Total non-operating expenses

Income taxes (Note 10)

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings

¥

1,237

1,188

6,496,709

5,909,924－

108

6,496,709¥

5,910,032

See accompanying notes to the financial statements.

Kenedix Office Investment Corporation

7

Kenedix Office Investment Corporation

Statement of Changes in Net Assets
For the period from November 1, 2021 to April 30, 2022
Valuationandtranslation
adjustments

Unitholders' equity (Note 5)

Surplus
Voluntary
retainedearnings

DeferredTotal

gains orUnitholders'

Reserve forretained earnings

Total

unitholders'losses on

Total net

capitalreduction entry(Note 22)

surplusequityhedgesassetsUnappropriatedIn thousands of yen
Balance as ofApril 30, 2021¥

220,970,508¥

3,493,596¥

7,016,251¥

10,509,848¥

231,480,356¥(498,680)¥

230,981,676

Changes during the fiscal period
Provision of reserve for–

reduction entry

423,945(423,945)

–

–

–

–

Dividends of surplus––（6,592,197）（6,592,197）（6,592,197）–（6,592,197）

Net income––

5,909,924

5,909,924

5,909,924–

5,909,924

–

–

–

–

–

245,456

245,456–

423,945(1,106,218)(682,273)(682,273)

245,456(436,817)

Net changes of items otherthan unitholders’ equity
Total changes during
the fiscal period
Balance as of
October 31, 2021¥

220,970,508¥

3,917,542¥

5,910,032¥

9,827,574¥

230,798,082¥(253,223)¥

230,544,859

Changes during the fiscal period
Reversal of reserve for–

reduction entry(89,107)

89,107––––

Dividends of surplus––(5,999,140)(5,999,140)(5,999,140)–(5,999,140)

Net income––

6,496,709

6,496,709

6,496,709–

6,496,709

–

–

–

–

–

721,382

721,382–(89,107)586,676

497,569

497,569

721,382

1,218,951

Net changes of items otherthan unitholders’ equity
Total changes during
the fiscal period
Balance as ofApril 30, 2022¥

220,970,508¥

3,828,434

See accompanying notes to the financial statements.

8¥

6,496,709¥

10,325,143¥

231,295,652¥

468,158¥

231,763,810

Kenedix Office Investment Corporation
Statement of Cash Flows
For the period from November 1, 2021 to April 30, 2022

From November 1, 2021
to April 30, 2022

From May 1, 2021
to October 31, 2021

In thousands of yen

Cash flows from operating activities
Income before income taxes¥

Depreciation
Amortization of long-term prepaid expenses

6,497,947¥

5,911,112

2,588,401

2,567,220

113,771

118,773

Interest income

(48)

(45)

Interest expenses

757,616

810,191

Amortization of investment corporation bond issuance costs

7,348

6,802

Decrease (increase) in operating accounts receivable

6,382(30,301)

Decrease (increase) in prepaid expenses

38,563(38,950)

Increase (decrease) in operating accounts payable(32,507)

241,808

Increase (decrease) in accounts payable–other

113,911(129,720)

Increase (decrease) in accrued consumption taxes(49,257)(208,440)

Increase (decrease) in advances received

244,082(250,010)

Increase (decrease) in deposits received

4,590(9,620)Decrease in property, plant and equipment in trust due to sale943,131–

Decrease (increase) in long-term prepaid expenses(54,719)(39,136)

Other, net(18,460)(26,736)

11,160,754

8,922,947

SubtotalInterest income received
Interest expenses paid
Income taxes paid

48

45(756,682)(798,964)

(784)

(820)

10,403,336

8,123,207(45,527)(76,560)

Purchases of property, plant and equipment in trust(7,322,312)(1,062,136)

Repayments of tenant leasehold and security deposits(64,187)(247,466)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property, plant and equipment

Proceeds from tenant leasehold and security deposits

100,541

222,552

Repayments of tenant leasehold and security deposits in trust(675,174)(809,827)

Proceeds from tenant leasehold and security deposits in trust

1,124,969

848,272

Payments of restricted deposits in trust(271,464)(12,137)

Proceeds from restricted deposits in trust

557,038–(6,596,116)(1,137,304)

Cash flows from financing activities
Proceeds from short-term loans payable

6,800,000

7,300,000

Repayments of short-term loans payable(8,800,000)(3,500,000)

Proceeds from long-term loans payable

18,300,000

6,000,000

Repayments of long-term loans payable(9,900,000)(11,800,000)–

1,986,113(5,999,077)(6,591,270)

400,922(6,605,157)

Net cash provided by (used in) investing activities

Proceeds from issuance of investment corporation bonds
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

4,208,142

380,746

Cash and cash equivalents at the beginning of period

28,948,207

28,567,460

Cash and cash equivalents at the end of period (Note 3)¥

33,156,349¥

28,948,207

See accompanying notes to the financial statements.

Kenedix Office Investment Corporation

9

Kenedix Office Investment Corporation

Notes to the Financial Statements
For the period from November 1, 2021 to April 30, 2022

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Kenedix Office Investment Corporation (“the Investment Corporation”) is a real estate investment corporation whose units are listedon the Tokyo Stock Exchange. The Investment Corporation is engaged in the ownership and operation of selected mainly officebuildings in Japan, with a focus on mid-sized office buildings in the Tokyo metropolitan area. The Investment Corporation wasincorporated on May 6, 2005 as an investment corporation under the Law Concerning Investment Trusts and Investment Corporationsof Japan, or “the Investment Trust Law.” On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust
Market of the Tokyo Stock Exchange with a total of 75,400 investment units issued and outstanding (Securities Code: 8972).
Subsequently, the Investment Corporation raised funds through eight public offerings. Pursuant to the Investment Trust Law, theInvestment Corporation is externally managed by a registered asset management company, Kenedix Real Estate Fund Management,
Inc. (“the Asset Management Company”), a subsidiary of Kenedix, Inc. (“Kenedix”). In concert with the Asset Management Company,
the Investment Corporation strives to maximize cash distribution to investors by securing stable earnings and sustainable investment
growth. To this end, the Investment Corporation adopts a dynamic and flexible investment stance that accurately reflects its
environment and market trends, and endeavors to ensure a timely response to each and every opportunity.
During the period ended October 31, 2021, the Investment Corporation did not acquire or sell any new assets.
During the period ended April 30, 2022, the Investment Corporation acquired one office building (Sendai Honcho Building :acquisition price of ¥6,360 million ) .
At the end of the thirty- third and thirty- fourth fiscal periods (fiscal periods ended October 31, 2021 and April 30, 2022), theInvestment Corporation had total unitholders’ capital of ¥220,970 million with 428,510 investment units outstanding, respectively.
The Investment Corporation owned a portfolio of 96 properties (consisting of 95 office buildings and one other property) and 97
properties (consisting of 96 office buildings and one other property) with total acquisition prices of ¥440,180 million and ¥445,606
million at the end of the thirty-third and thirty-fourth fiscal periods, respectively. The occupancy ratios were approximately 97.6% and98.3% at the end of the thirty-third and thirty-fourth fiscal periods, respectively.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trust Act ofJapan, the Financial Instruments and Exchange Law of Japan and related regulations, and in conformity with accounting principles
and practices generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to the application anddisclosure requirements of the International Financial Reporting Standards or accounting principles generally accepted in the UnitedStates of America.
The accompanying financial statements are basically a translation of the audited financial statements that were prepared for Japanese
domestic purposes from the accounts and records maintained by the Investment Corporation and filed with the Kanto Local Finance
Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law. In preparing the accompanying
financial statements, relevant notes have been added and certain reclassifications have been made to the financial statements issued
domestically in order to present them in a form that is more familiar to readers outside Japan. The Investment Corporation’s fiscal
period is a six-month period that ends at the end of April and the end of October each year. The Investment Corporation does notprepare consolidated financial statements because it has no subsidiaries.

102. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) Securities
Non-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving
average method. Concerning silent partnership (tokumei kumiai, “TK”) interests, the method of incorporating the amount ofequity equivalent to the portion that corresponds to the net gain or loss of the TK is adopted.
(B) Property, Plant and Equipment (including trust assets)
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is calculated on a straight-line
basis over the estimated useful lives of the assets ranging as stated below:
From November 1, 2021
to April 30, 2022
Buildings
2–49 years

From May 1, 2021
to October 31, 2021
2–49 years

Structures

2–45 years

2–45 years

Machinery and equipment

3–17 years

3–17 years

Tools, furniture and fixtures

3–20 years

3–20 years(C) Intangible Assets (including trust assets)
Intangible assets are amortized by the straight-line method.
Leasehold right: Fixed-term land leasehold is amortized over a contractual period of 48 years and 9 months under the straightline method.
(D) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized by the straight-line method.
(E) Investment Unit Issuance Costs
Investment unit issuance costs are amortized over a period of three years under the straight-line method.
(F) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized over a maturity period under the straight-line method.
(G) Accounting Treatment of Trust Beneficiary Interests in Real Estate
For trust beneficiary interests in real estate, which are commonly utilized in the ownership of commercial properties in Japan, allassets and liabilities in trust are recorded in the relevant balance sheets and statements of income and retained earnings.
(H) Revenue Recognition
Operating revenues consist of rental revenues including base rents, common area charges and other operating revenues, which
include utility charge reimbursement, parking space rental revenues and other miscellaneous revenues. Rental revenues are
generally recognized on an accrual basis over the life of each lease. Utility charge reimbursements are recognized when earned
and their amounts can be reasonably estimated. Reimbursements from tenants including utility charge reimbursements arerecorded on a gross basis and such amounts are recorded both as revenues and expenses during the fiscal period.

Kenedix Office Investment Corporation

11

(I)

Taxes on Property, Plant and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on acalendar year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes
corresponding to the said period. Under Japanese tax rules, the seller of property at the time of disposal is liable for these taxes on
the property from the date of disposal to the end of the calendar year in which the property is disposed. The seller, however, isgenerally reimbursed by the purchaser for these accrued property-related tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related tothe period following the purchase date of each property through the end of the calendar year. The amounts of those allocatedportions of the property-related taxes are capitalized as part of the acquisition costs of the related properties. There were no
capitalized property-related taxes as of October 31, 2021. Capitalized property-related taxes amounted to ¥28,605 thousand as ofApril 30, 2022. In subsequent calendar years, such property-related taxes are charged as operating expenses in the fiscal period towhich the installments of such taxes correspond.

(J) Accounting for revenues
The main content of the performance obligation regarding the revenue from contracts with the customers of the Investment
Corporation and the normal point of time when satisfying the said performance obligation (normal point of time when recognizing
revenue) are as follows.
1. Sale of real estate property
For the revenue from sale of real estate, etc., revenue is recorded when the buyer who is a customer gains control of
the real estate by performing the obligation of handover stipulated in the contract for real estate sales.
2. Utility charge reimbursements
For utility charge reimbursement, revenue is recorded in accordance with the supply of electricity, tap water, etc. tothe lessee who is a customer based on the lease agreement of real estate, etc. and the content of agreement incidental
to it.
Of the utility charge reimbursement, for those that are determined to fall under the category of an agent by theInvestment Corporation, the net amount obtained by deducting the amount paid to other related parties supplying
electricity, gas, etc. from the amount received as the fee of electricity, gas, etc. is recognized as revenue.
(K) Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases ofassets and liabilities using the statutory tax rates.
(L) Non-deductible consumption taxes
Non-deductible consumption taxes applicable to the acquisition of assets are included in the cost of acquisition for each asset .
(M) Derivative Financial Instruments
The Investment Corporation utilizes interest-rate swap contracts as derivative financial instruments only for the purpose ofhedging its exposure to changes in interest rates. The Investment Corporation deferred recognition of gains or losses resulting
from changes in fair value of interest-rate swap contracts because these contracts met the criteria for deferral hedging accounting.
However, the Investment Corporation adopted special treatment for interest-rate swap contracts if they met the criteria for hedging
accounting under this treatment. The hedge effectiveness for the interest-rate swap contracts is assessed each fiscal period except
for those that meet the criteria of special treatment.
(N) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid,readily convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less fromthe date of purchase.
12(O) Presentation of Amounts
Amounts of less than one thousand yen have been truncated in the Japanese financial statements prepared in accordance withJapanese GAAP and filed with regulatory authorities in Japan. Unless otherwise noted, amounts are rounded down and ratios arerounded off in the accompanying financial statements.
Totals shown in the accompanying financial statements do not necessarily agree with the sums of the individual amounts.

3. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following as of April 30, 2022 and October 31, 2021.
As of April 30, 2022

As of October 31, 2021

In thousands of yen¥ 23,037,269
11,593,317(1,474,236)¥ 33,156,349

Cash and deposits
Cash and deposits in trust
Restricted deposits in trust (Note)
Cash and cash equivalents in trust¥ 19,273,842
11,434,175(1,759,810)¥ 28,948,207

Note: Restricted deposits in trust are retained for the repayment of tenant leasehold and security deposits in trust.

4. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Property, plant and equipment and intangible assets consist of the following as of April 30, 2022.
Type of asset

Balance atthe beginningof period

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodDepreciation
Accumulated
depreciation

Depreciation
for the periodNetbalance atthe end of
periodRemarks(in thousands of yen)
Buildings¥ 18,103,290¥ 23,886

44,224¥–¥ 18,127,176¥ 7,449,568¥ 308,987¥ 10,677,608––

44,224

21,4681,230

22,755452,189

4,042–

456,232

322,911

13,014

133,320

Structures
Machinery andequipment
Tools, furnitureand fixturesLand

101,522

3,032–

104,554

79,754

3,748

24,80027,520,902––

27,520,902––

27,520,902

Subtotal

46,222,129

30,960–46,253,090

7,873,703

326,981

38,379,387¥ 128,595,353¥ 1,767,156–¥ 130,362,510¥ 40,770,613¥ 2,155,484¥ 89,591,896

391,649

38,145–

429,795

225,247

12,864

204,547

2,003,777

71,794–

2,075,571

981,465

64,159

1,094,106

723,095

16,079–739,174

434,922

28,116304,251

291,876,758

5,827,089

943,131

296,760,716––

296,760,716

5,300

–

4,500

800

–

–

800

Subtotal

423,595,934

7,720,265

947,631430,368,567

42,412,249

2,260,624

387,956,318

Total property, plant andequipment

469,818,064

7,751,225

947,631476,621,658

50,285,952

2,587,605

426,335,705–¥ 290,050¥ 4,792

Property,plant andequipment

Buildings in
trust
Structures intrust
Machinery andequipment in
trust
Tools, furnitureand fixtures intrust
Land in trust
Construction inprogress in trust

Intangible
assets¥Leasehold right¥ 290,050

Leasehold rightin trust

363,784––

363,784

6,306

–

–

660,141–¥ 470,478,205¥ 7,751,225

Other
Total intangible assets
Total

¥

–

¥

¥

–

¥ 285,257

17,680774

346,103

6,306

6,230

21

76

–

660,141

28,703

796

631,437¥ 947,631¥ 477,281,799¥ 50,314,656¥2,588,401¥ 426,967,143

Note 1

Notes 1
and 2

Note1: The amount of increase during the period is primarily attributable to the acquisition of the one real estate property.
Note2: The amount of decrease during the period is primarily attributable to the partial transfer of real estate related to land
expropriation.

Kenedix Office Investment Corporation

13

Property, plant and equipment and intangible assets consist of the following as of October 31, 2021.
Type of asset

Balance atthe beginningof period

Decreaseduring theperiodIncreaseduring theperiodBalance atthe end of
periodDepreciation
Accumulated
depreciation

Depreciation
for the periodNetbalance atthe end of
periodRemarks(in thousands of yen)
Buildings¥ 18,026,779¥ 76,510

43,564¥–¥ 18,103,290¥ 7,140,580¥ 307,614¥ 10,962,709

660–

44,224

20,2381,217

23,985442,289

9,900–

452,189

309,897

12,690142,292

100,902620–

101,52276,005

3,784

25,516Structures
Machinery andequipment
Tools, furnitureand fixtures
Land

27,520,902––

27,520,902––

27,520,902

Subtotal

46,134,439

87,690–46,222,129

7,546,722

325,308

38,675,407¥ 127,845,813¥ 749,539–¥ 128,595,353¥ 38,615,129¥ 2,138,426¥ 89,980,223

386,893

4,756–

391,649

212,382

12,576179,266

1,930,865

72,912–2,003,777

917,306

62,1791,086,471

649,345

73,749–723,095

406,805

27,915316,289

Land in trust
Construction inprogress in trust

291,876,758––

291,876,758––

291,876,758

12,750

800

8,250

5,300

–

–

5,300

Subtotal

422,702,425

901,758

8,250

423,595,934

40,151,624

2,241,099

383,444,309

Total property, plant andequipment

468,836,865

989,4488,250

469,818,064

47,698,346

2,566,407

422,119,717–¥ 290,050¥ 4,792

Property,plant andequipment

Intangible
assetsBuildings in
trust
Structures intrust
Machinery andequipment in
trust
Tools, furnitureand fixtures in
trust

¥

Leasehold right¥ 290,050

Leasehold rightin trust

363,784––

363,784

6,306

–

–

660,141–¥469,497,006¥ 989,448

Other
Total intangible assets
Total

¥

–

¥

¥

–

¥ 285,257

16,906774

346,877

6,306

6,208

39

98

–

660,141

27,907813

632,233¥ 8,250¥ 470,478,205¥ 47,726,254¥ 2,567,220¥ 422,751,950

5. UNITHOLDERS’ EQUITY
Total number of authorized investment units and total number of investment units issued and outstanding are as follows:

Total number of authorized investment units
Total number of investment units issued and outstanding

14

From November 1, 2021
to April 30, 2022
2,000,000

From May 1, 2021
to October 31, 2021
2,000,000

428,510428,510

6. SHORT-TERM LOANS PAYABLE, LONG-TERM LOANS PAYABLE AND INVESTMENTCORPORATION BONDS
The following summarizes short-term loans payable, long-term loans payable and investment corporation bonds outstanding as ofApril 30, 2022:
Classification
Short-term loans payable

Drawdown dateJuly 12, 2021

Last repayment dateJune 30, 2022

Weighted-average

Balanceinterest rate

(In thousands of yen)0.329%¥

August 31, 2021

August 31, 2022

0.329%

800,000

November 30, 2021

November 30, 2022

0.279%

1,250,000

November 30, 2021

November 30, 2022

0.279%

500,000

November 30, 2021

November 30, 2022

0.279%

350,000

November 30, 2021

November 30, 2022

0.279%

2,000,000

November 30, 2021

November 30, 2022

0.279%

500,000

November 30, 2021

November 30, 2022

0.279%

300,000

April 28, 2022

April 28, 2023

0.250%

1,900,000

July 31, 2014

July 31, 2022

1.014%

Subtotal
Current portion of long-term loans payable

8,600,000¥

2,200,000

July 31, 2019

July 31, 2022

0.291%

1,000,000

September 3, 2014

August 31, 2022

0.979%

1,000,000

September 3, 2014

August 31, 2022

0.979%

950,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

September 30, 2021

October 31, 2022

0.250%

500,000

September 21, 2021

February 28, 2023

0.300%

1,000,000

March 12, 2014

March 12, 2023

1.358%

1,800,000

March 20, 2014

March 12, 2023

1.349%

2,000,000

SubtotalLong-term loans payable

1,000,000

13,450,000
October 31, 2014

October 31, 2023

1.071%

October 31, 2014

October 31, 2023

1.126%¥

2,000,000
1,500,000

October 31, 2014

October 31, 2023

1.071%

1,000,000

October 31, 2014

October 31, 2024

1.257%

2,000,000

October 31, 2014

October 31, 2024

1.259%

1,000,000

January 30, 2015

January 31, 2025

1.161%

1,500,000

February 18, 2015

February 29, 2024

1.157%

1,700,000

February 18, 2015

February 28, 2025

1.314%

1,250,000
2,100,000

February 27, 2015

February 28, 2025

1.153%March 12, 2015

February 28, 2025

1.218%

1,000,000

March 31, 2015

March 31, 2025

1.266%

2,500,000

September 30, 2015

September 30, 2024

1.065%

2,000,000

October 30, 2015

October 31, 2024

0.989%

1,000,000

October 30, 2015

October 30, 2025

1.114%

1,500,000

October 30, 2015

October 30, 2025

1.114%

2,000,000

October 30, 2015

October 30, 2025

1.114%

2,500,000

October 30, 2015

October 30, 2025

1.121%

2,500,000

November 12, 2015

November 30, 2025

1.173%

1,000,000

January 29, 2016

January 29, 2026

1.074%

2,000,000

January 29, 2016

January 29, 2026

1.024%

1,800,000

February 18, 2016

February 18, 2026

0.998%

1,000,000

February 18, 2016

February 18, 2026

0.998%

500,000

March 31, 2016

March 31, 2026

0.898%

1,000,000

Kenedix Office Investment Corporation

15

Classification
Long-term loans payable

16

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

April 28, 2016

April 30, 2024

0.654%

April 28, 2016

April 30, 2026

0.835%¥

2,000,000
2,000,000

April 28, 2016

April 30, 2026

0.865%

1,000,000

July 29, 2016

July 31, 2026

0.613%

1,500,000

August 2, 2016

July 31, 2026

0.544%

1,000,000

October 31, 2016

October 31, 2024

0.668%

1,000,000

October 31, 2016

October 31, 2026

0.876%

2,500,000

October 31, 2016

October 31, 2026

0.760%

1,000,000

October 31, 2016

October 31, 2026

0.734%

4,000,000

October 31, 2016

October 31, 2026

0.826%

1,500,000

December 12, 2016

November 30, 2026

0.982%

500,000

December 28, 2016

December 28, 2026

0.950%

1,500,000

January 16, 2017

January 31, 2027

0.860%

500,000

January 31, 2017

January 31, 2027

0.853%

700,000

March 28, 2017

March 31, 2027

0.850%

500,000

June 30, 2017

June 30, 2027

0.849%

1,500,000

August 10, 2017

July 28, 2027

0.800%

3,500,000

August 31, 2017

August 31, 2023

0.544%

1,000,000

September 21, 2017

March 31, 2024

0.555%

1,000,000

September 21, 2017

September 30, 2025

0.680%

1,500,000

September 21, 2017

March 31, 2027

0.732%

1,000,000

September 21, 2017

September 21, 2027

0.873%

1,000,000

September 21, 2017

September 30, 2027

0.851%

2,500,000

October 31, 2017

October 31, 2027

0.810%

2,500,000

November 13, 2017

November 13, 2027

0.931%

3,000,000

December 7, 2017

November 30, 2027

0.899%

1,400,000

December 7, 2017

November 30, 2027

0.820%

1,200,000

December 7, 2017

November 30, 2027

0.969%

1,000,000

December 7, 2017

November 30, 2027

0.939%

1,000,000

December 7, 2017

November 30, 2027

0.869%

1,000,000

December 7, 2017

November 30, 2027

0.899%

800,000

December 7, 2017

November 30, 2027

0.869%

600,000

December 28, 2017

December 28, 2025

0.744%

500,000

December 28, 2017

December 28, 2026

0.878%

500,000

December 28, 2017

December 28, 2027

0.864%

500,000

March 12, 2018

March 31, 2028

0.914%

1,500,000

March 26, 2018

March 31, 2027

0.808%

1,000,000

March 26, 2018

March 31, 2028

0.902%

1,000,000

July 31, 2018

July 31, 2028

0.988%

500,000

August 20, 2018

August 31, 2025

0.696%

500,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

500,000

August 20, 2018

August 31, 2028

0.966%

500,000

August 31, 2018

August 31, 2025

0.700%

500,000

August 31, 2018

August 31, 2025

0.723%

300,000

August 31, 2018

August 31, 2028

1.012%

700,000

October 31, 2018

October 31, 2028

1.013%

1,500,000

October 31, 2018

October 31, 2028

0.910%

1,000,000

October 31, 2018

October 31, 2028

1.013%

500,000

March 28, 2019

March 31, 2029

0.838%

1,400,000

Classification
Long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)March 29, 2019

March 31, 2029

0.839%

June 14, 2019

June 30, 2023

0.246%¥

2,950,000

June 14, 2019

December 28, 2026

0.517%

500,000

June 14, 2019

April 30, 2027

0.605%

1,000,000

June 14, 2019

March 31, 2029

0.725%

1,000,000

July 10, 2019

July 31, 2023

0.230%

500,000

July 31, 2019

July 31, 2023

0.295%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

500,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

September 30, 2019

September 30, 2026

0.489%

1,000,000

September 30, 2019

March 31, 2027

0.531%

900,000

September 30, 2019

March 31, 2027

0.425%

800,000

January 31, 2020

January 31, 2025

0.406%

700,000

January 31, 2020

January 31, 2027

0.526%

1,500,000

January 31, 2020

January 31, 2029

0.675%

1,500,000

March 12, 2020

February 28, 2026

0.361%

1,800,000

March 31, 2020

March 31, 2028

0.642%

1,000,000

June 30, 2020

June 30, 2028

0.646%

2,000,000

June 30, 2020

June 30, 2028

0.646%

2,000,000

June 30, 2020

June 30, 2028

0.646%

700,000

June 30, 2020

June 30, 2028

0.510%

2,000,000

July 31, 2020

July 31, 2028

0.636%

2,700,000

August 31, 2020

August 31, 2030

0.705%

1,500,000

September 30, 2020

September 30, 2025

0.396%

1,000,000

September 30, 2020

September 30, 2027

0.511%

1,000,000

September 30, 2020

September 30, 2030

0.738%

700,000

October 30, 2020

April 30, 2027

0.542%

1,400,000

October 30, 2020

October 31, 2030

0.803%

1,500,000

October 30, 2020

October 31, 2030

0.803%

300,000

November 12, 2020

April 30, 2027

0.552%

1,300,000

November 12, 2020

November 12, 2030

0.808%

700,000

November 12, 2020

November 12, 2030

0.808%

500,000

November 30, 2020

May 31, 2027

0.516%

200,000

November 30, 2020

November 30, 2030

0.763%

900,000

November 30, 2020

November 30, 2030

0.763%

800,000

November 30, 2020

November 30, 2030

0.763%

200,000

January 29, 2021

January 31, 2024

0.287%

1,000,000

January 29, 2021

January 31, 2028

0.527%

1,200,000

January 29, 2021

January 31, 2030

0.678%

2,300,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

November 30, 2030

0.755%

800,000

July 12, 2021

June 30, 2028

0.484%

500,000

July 30, 2021

July 31, 2026

0.350%

1,000,000

September 21, 2021

August 31, 2023

0.300%

2,000,000

September 21, 2021

February 29, 2024

0.300%

1,000,000

November 30, 2021

October 31, 2024

0.289%

500,000

November 30, 2021

October 31, 2024

0.289%

500,000

November 30, 2021

October 31, 2024

0.289%

300,000

November 30, 2021

October 31, 2024

0.250%

2,500,000

November 30, 2021

April 30, 2026

0.300%

500,000

November 30, 2021

April 30, 2026

0.300%

500,000

November 30, 2021

April 30, 2026

0.300%

500,000

Kenedix Office Investment Corporation17

Classification
Long-term loans payable

Subtotal
Current portion of investment corporation
bonds

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

500,000

November 30, 2021

November 30, 2026

0.412%

November 30, 2021

November 30, 2026

0.412%

November 30, 2021

November 30, 2026

0.350%

500,000

November 30, 2021

November 30, 2026

0.384%

1,000,000

November 30, 2021

November 30, 2026

0.384%

500,000

November 30, 2021

November 30, 2026

0.384%

500,000

November 30, 2021

November 30, 2026

0.384%

500,000

November 30, 2021

November 30, 2026

0.325%

1,000,000

November 30, 2021

November 30, 2026

0.350%

1,000,000

November 30, 2021

November 30, 2028

0.511%

1,000,000

November 30, 2021

November 30, 2029

0.450%

500,000

April 28, 2022

April 30, 2024

0.267%

1,000,000

April 28, 2022

April 30, 2024

0.230%

2,500,000

April 28, 2022

April 30, 2025

0.297%

1,000,000

April 28, 2022

May 31, 2027

0.350%¥

500,000

1,000,000
170,100,000

July 19, 2017

July 19, 2022

0.260%¥

1,000,000

July 25, 2014

July 25, 2024

1.180%¥

2,000,000

April 28, 2016

April 28, 2028

0.900%

1,000,000

July 19, 2017

July 16, 2027

0.640%

2,000,000

February 15, 2019

February 15, 2024

0.390%

2,000,000

January 30, 2020

January 30, 2025

0.250%

2,000,000

October 20, 2020

October 18, 2030

0.610%

1,000,000

July 28, 2021

July 31, 2026

0.180%

2,000,000

Subtotal

1,000,000

Investment corporation bonds

Subtotal

12,000,000

Total

¥

205,150,000

The following summarizes short-term loans payable, long-term loans payable and investment corporation bonds outstanding as of
October 31, 2021:
Classification
Short-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

November 30, 2020

November 30, 2021

0.385%

November 30, 2020

November 30, 2021

0.335%¥

January 29, 2021

January 29, 2022

0.385%

300,000

February 26, 2021

February 26, 2022

0.385%

2,000,000

July 12, 2021

June 30, 2022

0.335%

2,000,000

August 31, 2021

August 31, 2022

0.335%

800,000

August 31, 2021

August 31, 2022

0.335%

500,000

August 31, 2021

August 31, 2022

0.335%

500,000

September 30, 2021

September 30, 2022

0.385%

500,000

October 29, 2021

October 29, 2022

0.325%

3,000,000

January 29, 2016

January 31, 2022

0.590%

Subtotal
Current portion of long-term loans payable

18

500,000
500,000

10,600,000¥

2,500,000

January 29, 2016

January 31, 2022

0.640%

500,000

February 18, 2015

February 28, 2022

0.907%

1,250,000

February 18, 2015

February 28, 2022

0.907%

350,000

March 20, 2014

March 20, 2022

1.199%

3,000,000

April 30, 2015

April 30, 2022

0.825%

2,300,000

July 31, 2014

July 31, 2022

1.014%

2,200,000

Classification
Current portion of long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

July 31, 2019

July 31, 2022

0.291%

September 3, 2014

August 31, 2022

0.979%¥

September 3, 2014

August 31, 2022

0.979%

950,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

September 30, 2021

October 31, 2022

0.250%

500,000

March 12, 2014

March 12, 2023

1.358%March 20, 2014

March 12, 2023

1.349%

2,000,000

October 31, 2014

October 31, 2023

1.071%

2,000,000

October 31, 2014

October 31, 2023

1.126%

1,500,000

October 31, 2014

October 31, 2023

1.071%

1,000,000

October 31, 2014

October 31, 2024

1.257%

2,000,000

October 31, 2014

October 31, 2024

1.259%

1,000,000

SubtotalLong-term loans payable

1,000,000
1,000,000

18,550,000¥

1,800,000

January 30, 2015

January 31, 2025

1.161%

1,500,000

February 18, 2015

February 29, 2024

1.157%

1,700,000

February 18, 2015

February 28, 2025

1.314%

1,250,000

February 27, 2015

February 28, 2025

1.153%

2,100,000

March 12, 2015

February 28, 2025

1.218%

1,000,000

March 31, 2015

March 31, 2025

1.266%

2,500,000

September 30, 2015

September 30, 2024

1.065%

2,000,000

October 30, 2015

October 31, 2024

0.989%

1,000,000
1,500,000

October 30, 2015

October 30, 2025

1.114%

October 30, 2015

October 30, 2025

1.114%

2,000,000

October 30, 2015

October 30, 2025

1.114%

2,500,000

October 30, 2015

October 30, 2025

1.121%

2,500,000

November 12, 2015

November 30, 2025

1.173%

1,000,000

January 29, 2016

January 29, 2026

1.074%

2,000,000

January 29, 2016

January 29, 2026

1.024%

1,800,000

February 18, 2016

February 18, 2026

0.998%

1,000,000

February 18, 2016

February 18, 2026

0.998%

500,000

March 31, 2016

March 31, 2026

0.898%

1,000,000

April 28, 2016

April 30, 2024

0.654%

2,000,000

April 28, 2016

April 30, 2026

0.835%

2,000,000

April 28, 2016

April 30, 2026

0.865%

1,000,000

July 29, 2016

July 31, 2026

0.613%

1,500,000

August 2, 2016

July 31, 2026

0.544%

1,000,000

October 31, 2016

October 31, 2024

0.668%

1,000,000

October 31, 2016

October 31, 2026

0.876%

2,500,000

October 31, 2016

October 31, 2026

0.760%

1,000,000

October 31, 2016

October 31, 2026

0.734%

4,000,000

October 31, 2016

October 31, 2026

0.826%

1,500,000

December 12, 2016

November 30, 2026

0.982%

500,000

December 28, 2016

December 28, 2026

0.950%

1,500,000

January 16, 2017

January 31, 2027

0.860%

500,000

January 31, 2017

January 31, 2027

0.853%

700,000

March 28, 2017

March 31, 2027

0.850%

500,000

June 30, 2017

June 30, 2027

0.849%

1,500,000

August 10, 2017

July 28, 2027

0.800%

3,500,000

Kenedix Office Investment Corporation

19

Classification
Long-term loans payable

20

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)August 31, 2017

August 31, 2023

0.544%

September 21, 2017

March 31, 2024

0.555%¥

1,000,000

September 21, 2017

September 30, 2025

0.680%

1,500,000

September 21, 2017

March 31, 2027

0.732%

1,000,000

September 21, 2017

September 21, 2027

0.873%

1,000,000

September 21, 2017

September 30, 2027

0.851%

2,500,000

1,000,000

October 31, 2017

October 31, 2027

0.810%

2,500,000

November 13, 2017

November 13, 2027

0.931%

3,000,000

December 7, 2017

November 30, 2027

0.899%

1,400,000

December 7, 2017

November 30, 2027

0.820%

1,200,000

December 7, 2017

November 30, 2027

0.969%

1,000,000

December 7, 2017

November 30, 2027

0.939%

1,000,000

December 7, 2017

November 30, 2027

0.869%

1,000,000

December 7, 2017

November 30, 2027

0.899%

800,000

December 7, 2017

November 30, 2027

0.869%

600,000

December 28, 2017

December 28, 2025

0.744%

500,000

December 28, 2017

December 28, 2026

0.878%

500,000

December 28, 2017

December 28, 2027

0.864%

500,000

March 12, 2018

March 31, 2028

0.914%

1,500,000

March 26, 2018

March 31, 2027

0.808%

1,000,000

March 26, 2018

March 31, 2028

0.902%

1,000,000

July 31, 2018

July 31, 2028

0.988%

500,000

August 20, 2018

August 31, 2025

0.696%

500,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

500,000

August 20, 2018

August 31, 2028

0.966%

500,000

August 31, 2018

August 31, 2025

0.700%

500,000

August 31, 2018

August 31, 2025

0.723%

300,000

August 31, 2018

August 31, 2028

1.012%

700,000

October 31, 2018

October 31, 2028

1.013%

1,500,000

October 31, 2018

October 31, 2028

0.910%

1,000,000

October 31, 2018

October 31, 2028

1.013%

500,000

March 28, 2019

March 31, 2029

0.838%

1,400,000

March 29, 2019

March 31, 2029

0.839%

2,950,000

June 14, 2019

June 30, 2023

0.246%

500,000

June 14, 2019

December 28, 2026

0.517%

500,000

June 14, 2019

April 30, 2027

0.605%

1,000,000

June 14, 2019

March 31, 2029

0.725%

1,000,000

July 10, 2019

July 31, 2023

0.230%

500,000

July 31, 2019

July 31, 2023

0.295%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

September 30, 2019

September 30, 2026

0.489%

1,000,000

September 30, 2019

March 31, 2027

0.531%

900,000

September 30, 2019

March 31, 2027

0.425%

800,000

January 31, 2020

January 31, 2025

0.406%

700,000

January 31, 2020

January 31, 2027

0.526%

1,500,000

January 31, 2020

January 31, 2029

0.675%

1,500,000

March 12, 2020

February 28, 2026

0.361%

1,800,000

March 31, 2020

March 31, 2028

0.642%

1,000,000

Classification
Long-term loans payable

Subtotal
Current portion of investment corporation
bonds

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

June 30, 2020

June 30, 2028

0.646%

June 30, 2020

June 30, 2028

0.646%¥

2,000,000

June 30, 2020

June 30, 2028

0.646%

700,000

June 30, 2020

June 30, 2028

0.510%

2,000,000

July 31, 2020

July 31, 2028

0.636%

2,700,000

August 31, 2020

August 31, 2030

0.705%

1,500,000

September 30, 2020

September 30, 2025

0.396%

1,000,000

September 30, 2020

September 30, 2027

0.511%

1,000,000

September 30, 2020

September 30, 2030

0.738%

700,000

October 30, 2020

April 30, 2027

0.542%

1,400,000

October 30, 2020

October 31, 2030

0.803%

1,500,000

October 30, 2020

October 31, 2030

0.803%

300,000

November 12, 2020

April 30, 2027

0.552%

1,300,000

November 12, 2020

November 12, 2030

0.808%

700,000

November 12, 2020

November 12, 2030

0.808%

500,000

November 30, 2020

May 31, 2027

0.516%

200,000

November 30, 2020

November 30, 2030

0.763%

900,000

November 30, 2020

November 30, 2030

0.763%

800,000

November 30, 2020

November 30, 2030

0.763%

200,000

January 29, 2021

January 31, 2024

0.287%

1,000,000

January 29, 2021

January 31, 2028

0.527%

1,200,000

January 29, 2021

January 31, 2030

0.678%

2,300,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

November 30, 2030

0.755%

800,000

July 12, 2021

June 30, 2028

0.484%

500,000

July 30, 2021

July 31, 2026

0.350%

1,000,000

September 21, 2021

February 28, 2023

0.300%

1,000,000

September 21, 2021

August 31, 2023

0.300%

2,000,000

September 21, 2021

February 29, 2024

0.300%

1,000,000
156,600,000

July 19, 2017

July 19, 2022

0.260%¥

1,000,000

July 25, 2014

July 25, 2024

1.180%¥

2,000,000

April 28, 2016

April 28, 2028

0.900%

1,000,000

July 19, 2017

July 16, 2027

0.640%

2,000,000

February 15, 2019

February 15, 2024

0.390%

2,000,000

January 30, 2020

January 30, 2025

0.250%

2,000,000

October 20, 2020

October 18, 2030

0.610%

1,000,000

July 28, 2021

July 31, 2026

0.180%

2,000,000

Subtotal
Investment corporation bonds

2,000,000

1,000,000

Subtotal

12,000,000

Total

¥

198,750,000

7. REDUCTION ENTRY
The amount of reduction entry of property, plant and equipment acquired by government subsidy is as follows:
As of April 30, 2022
As of October 31, 2021
In thousands of yen
Buildings in trust¥

26,230¥Kenedix Office Investment Corporation

26,23021

8. COMMITMENT LINE AGREEMENTThe Investment Corporation has concluded a commitment line agreement with bank of account, etc.
As of April 30, 2022

As of October 31, 2021

In thousands of yen
Maximum amount¥

9,000,000

Drawn credit facility¥

9,000,000–

Balance¥–

9,000,000¥

9,000,000

9. PER UNIT INFORMATION
From November 1, 2021
to April 30, 2022

From May 1, 2021
to October 31, 2021
Yen

Net asset value per unit¥

540,859¥

Net income per unit¥

15,161¥

538,015
13,791

428,510Weighted-average number of units (units)

428,510

The weighted-average number of units outstanding of 428,510 as of April 30, 2022 and October 31, 2021, respectively, was used forthe computation of the amount of net income per unit. Net income per unit after adjusting for residual units is not included because
there were no residual investment units.

10. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 31%. However, theInvestment Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements are
met under the Special Taxation Measures Law of Japan. Under this law, the Investment Corporation must meet a number of tax
requirements, including a requirement that it currently distribute in excess of 90% of its net income for the fiscal period in order tobe able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of
the Investment Corporation will be subject to regular corporate income taxes. The Investment Corporation distributed in excess of
90% of its distributable income in the form of cash distributions totaling ¥5,999 million for the fiscal periods ended April 30, 2022
and October 31, 2021, respectively. Therefore, such distributions were treated as deductible distributions for purposes of corporate
income taxes. The effective tax rate on the Investment Corporation’s income was 0.02% for the fiscal periods ended April 30, 2022
and October 31, 2021, respectively. The following table summarizes the significant differences between the statutory tax rate and theeffective tax rate.

From May 1, 2021
to October 31, 2021

From November 1, 2021
to April 30, 2022
Statutory tax rate

31.46%

31.46%

Deductible cash distributions(29.05)(31.93)

Reversal of reserve for reduction entry

–

0.47

Provision of reserve for reduction entry(2.41)–

Others0.01

0.01

Effective tax rate

0.02%

0.02%

The significant components of deferred tax assets and liabilities as of April 30, 2022 and October 31, 2021 are as follows:
As of April 30, 2022

As of October 31, 2021

In thousands of yen
Deferred tax assets
Enterprise tax payable¥

Amortization of leasehold right

5,562

5,318

Deferred gains or losses on hedges

3,287

89,201

8,879

94,548(8,849)(94,520)

Subtotal
Valuation allowance
Total deferred tax assets

22

¥

30

30

¥

¥

27

27

11. NET ASSETSThe Investment Corporation issues only non-par value units in accordance with the Investment Trust Act. The entire amount of theissue price of new units is designated as stated capital. The Investment Corporation is required to maintain net assets of at least ¥50
million as required by the Investment Trust Act.

12. RELATED-PARTY TRANSACTIONS(1) Parent Company, Major Corporate Unitholders and Other
Thirty-fourth fiscal period (From November 1, 2021 to April 30, 2022) and Thirty- third fiscal period (From May 1, 2021 to October
31, 2021): Not applicable(2) Affiliated Companies and Other
Thirty-fourth fiscal period (From November 1, 2021 to April 30, 2022) and Thirty-third fiscal period (From May 1, 2021 to October
31, 2021): Not applicable(3) Fellow Subsidiary Companies and Other
Thirty-fourth fiscal period (From November 1, 2021 to April 30, 2022) and Thirty-third fiscal period (From May 1, 2021 to October
31, 2021): Not applicable(4) Directors, Major Individual Unitholders and Other
Thirty-fourth fiscal period (From November 1, 2021 to April 30, 2022) and Thirty-third fiscal period (From May 1, 2021 to October
31, 2021): Not applicable

13. BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATEDEXPENSES, AND GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY
Rent revenue – real estate, expenses related to rent business, and gain and loss on sale of real estate property for the fiscal

periods from November 1, 2021 to April 30, 2022 and from May 1, 2021 to October 31, 2021 consist of the following:
From November 1, 2021

From May 1, 2021

to April 30, 2022

to October 31, 2021

In thousands of yen
Rental and other operating revenues
Rent revenue – real estate
Rental revenues¥ 11,829,399¥ 11,710,362

1,507,079

1,551,218

13,336,478

13,261,580

Parking space rental revenues

486,655

475,555

Utility charge reimbursement

Common area charges
Subtotal
Others:

1,027,409

1,025,789

Miscellaneous

227,746

218,963

Subtotal

1,741,811

1,720,308¥ 15,078,289¥ 14,981,889

Property management fees and facility management fees

¥1,450,957¥1,414,777

Utilities

1,115,245

1,023,838

Taxes

Total rental and other operating revenues
Property-related expenses
Expenses related to rent business

1,341,445

1,339,335

Repairs and maintenance406,830

337,875

Insurance

19,585

19,306

Trust fees

29,867

29,767

OthersDepreciation
Total expenses related to rent business

357,542

321,977

2,588,398

2,567,199¥ 7,309,872¥ 7,054,078

Kenedix Office Investment Corporation

23

Gain and loss on sale of real estate properties
KDX Toranomon 1Chome Building（partial sale due to expropriation）
Revenue from sale of investment properties(*)¥ 1,731,347

Cost of investment properties¥

943,131

Other sales expenses

17,620Gain on sale of real estate properties－－－¥ 770,595¥－(*)Revenue from sale of real estate, etc. includes 29,150 thousand yen of compensation for property transfer.

14. LEASESThe Investment Corporation, as lessor, has entered into leases whose fixed monthly rents are due in advance with lease terms ofgenerally two years for office buildings. The future minimum rental revenues under existing non-cancelable operating leases as ofApril 30, 2022 and October 31, 2021 are as follows:
As of April 30, 2022

As of October 31, 2021
In thousands of yen

Due within one year

¥ 3,198,073¥ 2,863,474

Due after one year

8,224,029

7,163,359¥ 11,422,103¥ 10,026,834

Total

15. FINANCIAL INSTRUMENTS
Thirty-fourth fiscal period (From November 1, 2021 to April 30, 2022)(A) Overview(1) Policy for financial instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily
through bank loans and the issuance of investment corporation bonds and new investment units. The Investment Corporation uses
derivatives for the purpose of hedging its exposure to changes in interest rates and does not enter into derivatives for speculative or
trading purposes. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety,
liquidity, interest-rate conditions and cash flows.
(2) Types of financial instruments and related risk
Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer
and risk of fluctuation of value of its property.
Loans payable and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties
and have a redemption date of a maximum of approximately 8 years and 7 months following the accounting date. Although a certain
portion of said liabilities are subject to interest-rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate
swap transactions) in order to reduce such risk.
Interest-rate swap transactions are used as derivative financial instruments. Utilizing interest-rate swap transactions, the Investment
Corporation fixes its interest expense for long-term loans payable bearing interest at a variable rate. With regard to hedge accounting
methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please
see Note 2(M) “Derivative Financial Instruments.”(3) Risk management for financial instruments(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap transactions in order to minimize risk arising from fluctuations in interest rates
on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer
with regard to investment securities.
(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled
due dates) associated with procurement of funds
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out

24payment due dates and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly
checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
Because the factors incorporated into the calculation of fair value of financial instruments are subject to change, differing assumptions
are adopted which may alter fair value. Moreover, the contract amounts, etc. of derivative transactions in “(B) Estimated Fair Valueof Financial Instruments” do not indicate the market risk of derivative transactions.
(B) Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet as of April 30, 2022 and estimated fair value are shown in the following
table. Moreover, because “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are settled with cash in
the short term, the fair value can be considered as equivalent to the book value. Therefore, the notes for these accounts have been
omitted.
Carrying value
Estimated fair value
Difference
In thousands of yen(1) Current portion of investment corporation bonds

1,000,000

999,800(200)(2) Current portion of long-term loans payable

13,450,000

13,482,518

32,518(3) Investment corporation bonds

12,000,000

12,025,400

25,400(4) Long-term loans payable

170,100,000

169,880,655(219,344)¥ 196,550,000¥ 196,388,374¥ (161,625)

468,158

468,158–

Subtotal
Derivative transactions(*)(*)The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing
the net liability position.
*1 Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivativetransactions
Liabilities(1) Current portion of investment corporation bonds and (3) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices. The fair value of those for which no market priceis available is based on the quoted price obtained from counterparty financial institutions, etc.
(2) Current portion of long-term loans payable and (4) Long-term loans payable
The fair value of long-term loans payable is based on the present value of the total of principal and interest discounted by the interest
rate to be applied if similar new loans were entered into. The fair value of long-term loans payable bearing interest at a variable rate,
which is subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps, is based on thepresent value of the total of principal and interest, which is handled together with the applicable interest-rate swaps, discounted by
the interest rate to be applied if similar loans were entered into.
Derivative Transactions
Please refer to Note 16 “DERIVATIVE TRANSACTIONS.”*2 Redemption schedule for loans payable and investment corporation bonds
Due within
1 year or lessDue after

Due after

1 year through2 years through2 years

3 years

Due after

Due after

Due after

3 years through 4 years through4 years

5 years

5 years

In thousands of yen
Investment corporationbonds
Long-term loans payable
Total

¥

1,000,000

2,000,000

4,000,000–

2,000,000

4,000,000

13,450,000

19,700,000

20,850,000

26,400,000

35,100,000

68,050,000

14,450,000¥

21,700,000¥

24,850,000¥

26,400,000¥

37,100,000¥

72,050,000

Kenedix Office Investment Corporation

25

Thirty-third fiscal period (From May 1, 2021 to October 31, 2021)(A) Overview(1) Policy for financial instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily
through bank loans and the issuance of investment corporation bonds and new investment units. The Investment Corporation uses
derivatives for the purpose of hedging its exposure to changes in interest rates and does not enter into derivatives for speculative or
trading purposes. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety,
liquidity, interest-rate conditions and cash flows.
(2) Types of financial instruments and related risk
Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer
and risk of fluctuation of value of its property.
Loans payable and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties
and have a redemption date of a maximum of approximately 9 years and 1 month following the accounting date. Although a certain
portion of said liabilities are subject to interest-rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate
swap transactions) in order to reduce such risk.
Interest-rate swap transactions are used as derivative financial instruments. Utilizing interest-rate swap transactions, the Investment
Corporation fixes its interest expense for long-term loans payable bearing interest at a variable rate. With regard to hedge accounting
methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please
see Note 2(M) “Derivative Financial Instruments.”(3) Risk management for financial instruments(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap transactions in order to minimize risk arising from fluctuations in interest rates
on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer
with regard to investment securities.
(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled
due dates) associated with procurement of funds
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out
payment due dates and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly
checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
Because the factors incorporated into the calculation of fair value of financial instruments are subject to change, differing assumptions
are adopted which may alter fair value. Moreover, the contract amounts, etc. of derivative transactions in “(B) Estimated Fair Valueof Financial Instruments” do not indicate the market risk of derivative transactions.
(B) Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet as of October 31, 2021 and estimated fair value are shown in thefollowing table. Moreover, because “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are settled withcash in the short term, the fair value can be considered as equivalent to the book value. Therefore, the notes for these accounts havebeen omitted.
Carrying value
Estimated fair value
Difference
In thousands of yen(1) Current portion of investment corporation bonds

1,000,000

999,400(600)(2) Current portion of long-term loans payable

18,550,000

18,585,583

35,583(3) Investment corporation bonds

12,000,000

12,054,400

54,400(4) Long-term loans payable
Subtotal
Derivative transactions(*)

156,600,000

157,523,811

923,811¥ 188,150,000¥ 189,163,194¥ 1,013, 194(253,223)(253,223)–(*)The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing
the net liability position.
*1 Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivativetransactions
26

Liabilities(1) Current portion of investment corporation bonds and (3) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices. The fair value of those for which no market priceis available is based on the quoted price obtained from counterparty financial institutions, etc.
(2) Current portion of long-term loans payable and (4) Long-term loans payable
The fair value of long-term loans payable is based on the present value of the total of principal and interest discounted by the interest
rate to be applied if similar new loans were entered into. The fair value of long-term loans payable bearing interest at a variable rate,
which is subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps, is based on thepresent value of the total of principal and interest, which is handled together with the applicable interest-rate swaps, discounted by
the interest rate to be applied if similar loans were entered into.
Derivative Transactions
Please refer to Note 16 “DERIVATIVE TRANSACTIONS.”*2 Redemption schedule for loans payable and investment corporation bonds
Due within
1 year or lessDue after

Due after

1 year through2 years throughDue after

2 years

3 years

Due after

Due after

3 years through 4 years through4 years

5 years

5 years

In thousands of yen
Investment corporation

1,000,000

bonds
Long-term loans payable
Total

–

18,550,000¥

19,550,000

4,000,000

14,300,000¥

14,300,000

2,000,000

13,700,000¥

17,700,000

2,000,000

21,350,000¥

4,000,000

26,100,000

23,350,000¥

28,100,000

81,150,000¥

85,150,000

16. DERIVATIVE TRANSACTIONS
The following summarizes the contracted amount and the fair value of interest-rate swap contracts as of April 30, 2022:(1) Hedge accounting not applied
Not applicable(2) Hedge accounting applied
Hedge

Type ofaccounting

derivative

methodtransactions

Principle method Interest-rate

Contracted amount

Hedgeditems

Fair value(In thousands of yen)
Maturing
after 1 year

(In thousandsof yen)Long-termswaps:

loans

Receive/floating

payableCalculation
method for
applicable fair value
Based on the¥72,650,000¥

71,650,000¥

468,158

and pay/fixedamount provided bycounterparty
financial institutions

Special treatment Interest-rateLong-termof interest-rate

swaps:

loans

swaps

Receive/floating

payable37,250,000

30,100,000¥ 109,900,000¥ 101,750,000*

and pay/fixed
Total

¥

468,158(*)Interest-rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As aresult, their fair value is included in the fair value of the hedged long-term loans payable.
The following summarizes the contracted amount and the fair value of interest-rate swap contracts as of October 31, 2021:(1) Hedge accounting not applied
Not applicable

Kenedix Office Investment Corporation27

(2) Hedge accounting applied
Hedge

Type ofaccounting

derivative

methodtransactions

Principle method Interest-rate

Contracted amount

Hedgeditems

Fair value(In thousands of yen)
Maturing
after 1 year

(In thousandsof yen)Based on theLong-termswaps:

loans

Receive/floating

payableCalculation
method for
applicable fair value¥

70,350,000¥

69,350,000¥(253,223)

and pay/fixedamount provided bycounterparty
financial institutions

Special treatment Interest-rateLong-termof interest-rate

swaps:

loans

swaps

Receive/floating

payable44,150,000

30,100,000*¥ 114,500,000¥ 99,450,000¥ (253,223)

and pay/fixed
Total(*)Interest-rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As aresult, their fair value is included in the fair value of the hedged long-term loans payable.

17. REVENUE RECOGNITION
Thirty-fourth fiscal period (From November 1, 2021 to April 30, 2022)(1)

Information on the Breakdown of Revenue from Contracts with Customers
Thirty- fourth Fiscal Period (November 1, 2021, to April 30, 2022)
Revenues generated from contracts
with customers*1

Sales to external customers(in thousands of yen)
Revenue from sale of realestate property¥1,731,347*2¥ 770,595

1,027,409

1,027,409

Other

–

14,093,094

Total¥2,758,756¥15,891,099

Utility charge reimbursements(*1)Rental revenues, etc. which are subject to Accounting Standard for Lease Transactions (ASBJ Statement No. 13) and the transfer
of real estate properties which is subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real
Estate Using Special Purpose Companies” (Accounting System Committee Report No.15 of the Japanese Institute of Certified
Public Accountants) are not included in the above amounts as they are excluded from revenue recognition accounting standards.
Furthermore, revenue generated from contracts with major customers include of revenue from sale of real estate properties andutility charge reimbursements.
(*2) Revenue from sale of real estate, etc. is recorded as gain and loss on sale of real estate, etc. in the statement of income. Therefore,
the amount calculated by deducting the cost of real estate, etc. sold and other sales expenses from the revenue from sale of realestate, etc. is indicated.
(2)

Information Utilized as the Base for Understanding Revenue from Contracts with Customers
Thirty-fourth Fiscal Period (November 1, 2021, to April 30, 2022)
The information is as described in the notes on Summary of Significant Accounting Policies.

(3)

Information on relationship of Fulfillment of performance Obligations based with customers with cashflow generated
from said contracts and Amount and period of Revenue expected to be recognized in the next calculation period or
thereafter from contracts existing at the end of the current calculation period.

28

(a) Balance of contract assets and contract liabilities, etc.
From November 1, 2021
to April 30, 2022
(in thousands of yen)
Receivables generated from contracts with customers¥246,452(balance at beginning of fiscal period)
Receivables generated from contracts with customers

247,784(balance at end of fiscal period)
Contract assets (balance at beginning of fiscal period)–

Contract assets (balance at end of fiscal period)–

Contract liabilities (balance at beginning of fiscal period)–

Contract liabilities (balance at end of fiscal period)–(b)Transaction value allocated to remaining performance obligations
Not applicable.
With regard to utility charge reimbursements, as the Investment Corporation has the right to receive from customers anamount directly corresponding to the value for the lessees, or customers, of sections for which performance is complete by
the end of the fiscal period, the amount it has the right to claim is recognized as revenue in accordance with Paragraph 19 of
the Implementation Guidance on Accounting Standard for Revenue Recognition. Accordingly, such is not included in thenote on transaction value allocated to remaining performance obligations through application of the provisions of Paragraph80-22 (2) of the Accounting Standard for Revenue Recognition.
Thirty-third fiscal period (From May 1, 2021 to October 31, 2021)(1) Information on the Breakdown of Revenue from Contracts with Customers
Thirty-third Fiscal Period (May 1, 2021, to October 31, 2021)
Revenues generated from contracts
with customers*

Sales to external customers(in thousands of yen)
Revenue from sale of realestate property

¥

–

¥

–

1,025,789

1,025,789

Other

–

14,002,959

Total¥ 1,025,789¥15,028,749

Utility charge reimbursements(*)Rental revenues, etc. which are subject to Accounting Standard for Lease Transactions (ASBJ Statement No. 13) and the transfer
of real estate properties which is subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real Estate
Using Special Purpose Companies” (Accounting System Committee Report No.15 of the Japanese Institute of Certified Public
Accountants) are not included in the above amounts as they are excluded from revenue recognition accounting standards.
Furthermore, revenue generated from contracts with major customers include of revenue from sale of real estate properties andutility charge reimbursements.
(2) Information Utilized as the Base for Understanding Revenue from Contracts with Customers
Thirty-third Fiscal Period (May 1, 2021, to October 31, 2021)
The information is as described in the notes on Summary of Significant Accounting Policies.
(3) Information on relationship of Fulfillment of performance Obligations based with customers with cashflow generated fromsaid contracts and Amount and period of Revenue expected to be recognized in the next calculation period or thereafter
from contracts existing at the end of the current calculation period.

Kenedix Office Investment Corporation29

(a) Balance of contract assets and contract liabilities, etc.
From May 1, 2021
to October 31, 2021
(in thousands of yen)
Receivables generated from contracts with customers¥212,192(balance at beginning of fiscal period)
Receivables generated from contracts with customers

246,452(balance at end of fiscal period)
Contract assets (balance at beginning of fiscal period)–

Contract assets (balance at end of fiscal period)–

Contract liabilities (balance at beginning of fiscal period)–

Contract liabilities (balance at end of fiscal period)–(b)Transaction value allocated to remaining performance obligations
Not applicable.
With regard to utility charge reimbursements, as the Investment Corporation has the right to receive from customers anamount directly corresponding to the value for the lessees, or customers, of sections for which performance is complete by
the end of the fiscal period, the amount it has the right to claim is recognized as revenue in accordance with Paragraph 19 of
the Implementation Guidance on Accounting Standard for Revenue Recognition. Accordingly, such is not included in thenote on transaction value allocated to remaining performance obligations through application of the provisions of Paragraph80-22 (2) of the Accounting Standard for Revenue Recognition.

18. INVESTMENT AND RENTAL PROPERTIES
Thirty-fourth fiscal period (From November 1, 2021 to April 30, 2022)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo metropolitan area for the purpose of generating
rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
Carrying value (In thousands of yen)
As of October 31, 2021

Net change

Fair value
As of April 30, 2022
(In thousands of yen)
¥ 535,600,000

As of April 30, 2022

¥ 422,751,947¥ 4,215,195¥ 426,967,143*1: The carrying value represents the acquisition cost less accumulated depreciation.
*2: Fair value at the end of the fiscal period is the appraisal value determined by outside appraisers.
*3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal
increase/decrease factors were the acquisition of trust beneficiary interest in real estate of 1 property totaling 6,461,511
thousand, partial sale of real estate pertaining to land expropriation totaling 943,131 thousand and depreciation amounting
to 2,588,398 thousand.
Income and loss in the fiscal period ended April 30, 2022 for real estate for rental purposes is listed in Note 13 “BREAKDOWN OFRENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, AND GAIN AND LOSS ON SALE OF
REAL ESTATE PROPERTY.”
Thirty-third fiscal period (From May 1, 2021 to October 31, 2021)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo metropolitan area for the purpose of generating
rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
Carrying value (In thousands of yen)
As of April 30, 2021

Net change

As of October 31, 2021

¥ 424,337,948¥ (1,586,000)¥ 422,751,947*1: The carrying value represents the acquisition cost less accumulated depreciation.
*2: Fair value at the end of the fiscal period is the appraisal value determined by outside appraisers .

30

Fair value

As of October 31, 2021
(In thousands of yen)
¥ 517,705,000

*3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal
increase/decrease factor was the depreciation amounting to ¥2,567,199 thousand.
Income and loss in the fiscal period ended October 31, 2021 for real estate for rental purposes is listed in Note 13 “BREAKDOWNOF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, AND GAIN AND LOSS ON SALE
OF REAL ESTATE PROPERTY.”

19. SEGMENT AND RELATED INFORMATION
Thirty-fourth fiscal period (From November 1, 2021 to April 30, 2022)(A) Segment Information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportablesegment subject to disclosure.
(B) Related Information(1)

Information about each product and service

Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of theoperating revenues on the statement of income and retained earnings.
(2)

Information about each geographic area(a)

Net sales

Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statementof income and retained earnings.
(b)

Property, plant and equipment

Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount ofproperty, plant and equipment on the balance sheet.
(3)

Information about each major customer

Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenues on thestatement of income and retained earnings.
Thirty- third fiscal period (From May 1, 2021 to October 31, 2021)(A) Segment Information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportablesegment subject to disclosure.
(B) Related Information(1)

Information about each product and service

Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of theoperating revenues on the statement of income and retained earnings.
(2)

Information about each geographic area(a)

Net sales

Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statementof income and retained earnings.
(b)

Property, plant and equipment

Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount ofproperty, plant and equipment on the balance sheet.
(3)

Information about each major customer

Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenues on thestatement of income and retained earnings.

Kenedix Office Investment Corporation3120. SIGNIFICANT SUBSEQUENT EVENTS
Determination of Acquisition of Own Investment Units
The Investment Corporation decided at its board of directors’ meeting held on June 14, 2022, the matters pertaining to the acquisitionof own investment units based on the provisions of Article 80-2 of the Investment Trust Act which is applied by replacing the provisionsof Article 80-5, Paragraph 2 of the same act. Moreover, all of the acquired investment units are scheduled to be extinguished during
the fiscal period ending October 2022.
(A)

Reason for Acquisition of Own Investment Units
The Investment Corporation decided to acquire the own investment units by judging that the improvement of capital efficiency
and implementation of unitholder return through the acquisition and extinguishment of own investment units bycomprehensively taking into account such factors as the level of investment unit price, status of cash on hand, financial status
and market environment will lead to the improvement of unitholder value over the medium to long term.

(B)

32

Details of Matters Pertaining to the Acquisition(1) Total Number of: 6,000 units (maximum amount)
Ratio to the total number of investment units issued and outstanding
Investment Units thatCan be Acquired(excluding own investment units) 1.4%
(2) Total Acquisition Price of : 3,000 million yen (maximum amount)
Investment Units(3) Acquisition Method: Purchase on the Tokyo Stock Exchange based on the discretionary
investment agreement pertaining to the acquisition of own
investment units with securities company(4) Acquisition Period: June 15, 2022 to September 9, 2022

21. DISTRIBUTIONS
Thirty-third fiscal period(From May 1, 2021 to October 31, 2021)

Thirty-fourth fiscal period(From November 1, 2021 to April 30, 2022)
(Yen)

(Yen)

¥ 6,496,709,393¥ 5,910,032,522¥-¥ 89,107,478

III. Total distributions¥ 5,999,140,000¥ 5,999,140,000

Distributions per unit

¥ 14,000¥ 14,000

Provision of reserve for reduction entry¥ 497,569,393¥ -V. Retained earnings brought forward to
the next period

¥ -

¥-

In accordance with the policy stipulated in Article
35 (1) of its Articles of Incorporation, theInvestment Corporation determines that theamount of distribution shall exceed the amountequivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Act on Special
Measures Concerning Taxation, and shall be up to
the amount of its profits as the ceiling. Following
this policy, the Investment Corporation has
decided that, of the amount remaining after theprovision of reserve for reduction entry as
stipulated in Article 64 of the Act on Special
Measures Concerning Taxation is deducted fromunappropriated retained earnings, it shall
distribute the outstanding ¥5,999,140,000 as
profit distribution.
In addition, the Investment Corporation decided
not to distribute cash in excess of distributableprofit, stipulated in Article 35 (2) of its Articles ofIncorporation.

In accordance with the policy stipulated in Article
35 (1) of its Articles of Incorporation, theInvestment Corporation determines that theamount of distribution shall exceed the amountequivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Act on Special
Measures Concerning Taxation, and shall be up to
the amount of its profits as the ceiling. Following
this policy, the Investment Corporation has
decided to distribute ¥5,999,140,000 the
maximum integral multiple amount of the total
number of investment units issued andoutstanding of 428,510 units, based on the total
amount obtained by adding the reversal of reserve
for reduction entry to the unappropriated retained
earnings for the fiscal period under review.
In addition, the Investment Corporation decided
not to distribute cash in excess of distributableprofit, stipulated in Article 35 (2) of its Articles ofIncorporation.

I. Retained earnings at the end of period
II.Voluntary reserve (reversal)
Reversal of reserve for reduction entry

IV. Voluntary reserve (provision)

Method of calculating distribution
amountKenedix Office Investment Corporation

33

34

Kenedix Office Investment Corporation

35

36

IR schedule
Fiscal period ended April
Nov.

Dec.

Jan.

Feb.

Mar.

Fiscal period ended October
Apr.

Fiscal period end

Financial results
announcement

Start of distribution payments
Asset management report publication

May

Jun.

Jul.

Aug.

Sep.

Oct.

Fiscal period end
Financial results
announcement
Start of distribution payments
Asset management report publication

Unitholder memorandum
Fiscal period end

April 30 and October 31 of each year

General Meeting ofUnitholders

Convened at least once every two years, in principle

Date of record forestablishment of unitholder
voting rights

Prescribed in Article 16 of the Articles of Incorporation

Distribution payment dates

April 30 and October 31 (within three months from payment record dates)

Listing

Tokyo Stock Exchange (Securities code: 8972)

Newspaper for publicannouncements

Nihon Keizai Shimbun (Nikkei)

Unitholder registry andspecial account administrator

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Postal address and telephoneinquiries

Stock Transfer Agency Department Sumitomo Mitsui Trust Bank, Limited 8-4 Izumi
2-chome, Suginami-ku, Tokyo Toll-free tel: 0120 782 031

Receipt of Distributions
During receipt period

Take your distribution receipt to the head or branch ofﬁces of Japan Post Bank Co.,
Ltd. or post ofﬁces (bank agents).

After receipt period

Specify the receipt method on the back of the distribution receipt and mail it to the
Stock Transfer Agency Division of Sumitomo Mitsui Trust Bank, Limited, or receive
distributions at a branch of the bank.

Receiving future distributions

Distributions can be paid by remittances to bank or ordinary postal savings accounts.
If transfer designations or other procedures are preferred, you should contact
the brokerage with which you have an account, in principle. If you do not have a
brokerage account and have a special account, contact Sumitomo Mitsui Trust Bank,
Limited, the institution for managing special accounts.

Exclusion

Under the Articles of Incorporation of Kenedix Office Investment Corporation, you cannot
receive distributions after three years have elapsed from the commencement of distribution
payments, so please receive them as soon as possible.

Kenedix Office Investment Corporation

37