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

Security code: 8972

TOKYO
M E T R O P O L I TA N A R E A

Kenedix Ofﬁce Investment Corporation
Semiannual Report October 2021 Fiscal Period
May 1, 2021–October 31, 2021

Operational Highlights
Conditions during the October 2021
fiscal period and distributions per unit
Number of owned properties

96

See the IR Presentation Materials formore information.

AUM (total asset value)

440.1

properties

Distributions per unit

billion yen

14,000yen

Sold part of the land for the KDX Toranomon 1chome Building

External
growth(Dec. 2, 2021)

Gain on sale of real estate, etc.

763

million yen

Estimated amount of provision toreserve for reduction entry

288

million yen

Increase in appraisal value

200+

million yen

Occupancy rate improved after bottoming out at 96.0% in July 2021

Internal
growthOccupancy rate

Rate of increase in unit rent
upon tenant turnover

Increase in monthly rent

97.6

%

+0.9% from last ﬁscal period

3.6

+

2.7

＋

million yen

Due to tenant turnover and rent revisions%

Reﬁnanced through large-scale syndicated loans, etc. (Nov. 2021)

FinancialstatusAverage interest rate oninterest-bearing debt

0.86

%

-0.07% from last ﬁscal period

Financial institutions

Interest-bearing debt ratio (LTV)

8

43.6

+

%

From last ﬁscal period

as of Oct. 31, 2021

■ Table of Contents
Operational Highlights

2

Sustainability Initiatives

8

Message from the Management
Financial Status
Financial Data

2

Financial Summary (Unaudited)

11

4

Balance Sheet

12

10Statement of Changes in Net Assets

15

Statement of Income and Retained Earnings
Statement of Cash Flows

Notes to the Financial Statements

14
16
17

Distributions

Independent Auditor’s Report

39
40

Investor and Property Information
Unitholder Information
Portfolio

42
44

■ Characteristics of Kenedix Office Investment Corporation (KDO)
We seek to maximize unitholder returns by focusing on
investing in and managing mid-sized ofﬁce buildings in
the Tokyo metropolitan area to generate stable proﬁts andsustainably expand assets under management.
We recognize the importance of factoring environmental,social, and governance (ESG) considerations into real estate
investment management. Strengthening efforts to help realizesocial sustainability is a key management priority.

Supports recommendations of
the Task Force on Climaterelated Financial Disclosures(“TCFD”)
KFM, the Asset Management Company, has expressed
support for the TCFD recommendations and joined the TCFD
Consortium, a group of companies in Japan that endorse therecommendations.

Image of a typical mid-sized ofﬁce
building
8–10 stories
Total ﬂoor area:
500–3,000 tsubo(roughly 1,600–9,900 m2)
Around2 elevators
Around100–150 tsubo(roughly 330–500 m2)
per ﬂoor of rental area

Sustainability Committee andSustainability Officeestablished
KFM implemented organizational changes on November 1,
2021, creating a new Sustainability Committee and new
Sustainability Ofﬁce to establish and strengthen systems forsustainability.

Sustainability
Committee

Chair:
President andCEO

TCFD (Task Force on Climate-related Financial Disclosures)
At the request of the G20, the Financial Stability Board (FSB) established
TCFD as an international initiative to consider how climate-related
information should be disclosed and how ﬁnancial institutions should
respond.

SustainabilityOﬃce

Gathers, analyzes, and examines
information on sustainability and
ESG-related matters

The committee meets every 3 months, inprinciple. The committee also reports to
the KFM Board of Directors and at KDO
Board of Directors meetings, which areattended by independent supervisory
directors, depending on the content.

Manages the practical aspects ofoperations related to ESG andsustainability.

Also serves as the secretariat for the
Sustainability Committee.

Refer to the following for the deﬁnitions of each term used in this document:“5 central wards of Tokyo” refers to Chiyoda, Chuo, Minato, Shinjuku, and Shibuya wards.
“Tokyo metropolitan area” refers to Tokyo, Kanagawa,
Saitama, and Chiba prefectures. “Other regional areas” refers to regional core cities such as government ordinance-designated cities.
Kenedix Ofﬁce
Investment Corporation is referred to as “the Investment Corporation” or “KDO,” and Kenedix Real Estate Fund Management, Inc., “the Asset Management
Company” or “KFM.”“Mid-sized ofﬁce buildings” as deﬁned by the Investment Corporation refers to rental ofﬁce buildings whose main use under the
Building Standards Act is for ofﬁces and whose total ﬂoor area of the entire building stated in the certiﬁcate of all registered elements fulﬁlls the criteria of
13,000 m2 or less in the 23 wards of Tokyo and 20,000 m2 or less outside the 23 wards of Tokyo.

Kenedix Office Investment Corporation

3

Hikaru Teramoto
Executive Director
Kenedix Ofﬁce Investment Corporation
Director and COO,
Head of Ofﬁce REIT Department andHead of Corporate Department,
Kenedix Real Estate Fund Management, Inc.
Apr. 1994

The Sakura Bank, Limited

Jun. 2012

Section Head of Finance, Financial Planning
Department, Kenedix REIT Management, Inc.

Sep. 2007

Mar. 2017
Nov. 2021

Feb. 2022

Goldman Sachs Japan Co., Ltd.

Head of Corporate Planning Department,
Kenedix, Inc.

Director and COO, Head of Ofﬁce REIT
Department and Head of Corporate
Department, Kenedix Real Estate FundManagement, Inc.
Executive Director, Kenedix Office
Investment Corporation* Based on the company name, etc. at the time he served in the positions.

Distributions per unit were 14,000 yen, on par with theinitial forecast.
We will stabilize distributions through active use of thereserve for reduction entry over the short term.
There were no property acquisitions or transfers during theimproved +0.9% from last fiscal period to 97.6% as of thethere were 96 properties in our portfolio and AUM wasdecreased reversal of the reserve for reduction entry from

October 2021 fiscal period. At the end of the fiscal period,
440.1 billion, unchanged from the last fiscal period (April

end of the October 2021 fiscal period. As a result, we

560 yen per unit in the previous forecast*1 to 209 yen while2021). The turnover rate for the October 2021 fiscal period

distributions per unit (DPU) remained on par with the

However, we actively engaged in leasing activities whilefrom distributions of 15,384 yen per unit in the previous

was 8.9% (annualized), remaining high as it was last period.
steadily capitalizing on the trend toward expansion andrelocation by strongly performing companies that could notrelocate and increase floor space previously due to low
vacancy rates. The occupancy rate showed signs ofimprovement after bottoming out at 96.0% in July 2021, and4previous forecast of 14,000 yen, a decrease of 1,384 yen
fiscal period. This decrease resulted mainly from theabsence of the gain on the sale of the KDX Shin-Nihonbashi
Building in the previous fiscal period.

The policy on use of reserve for reduction entry

provisions from the provision for the KDX Shin-Nihonbashi

Message from the Management
Building in the previous fiscal period onward is to use themillion yen of the gain on the sale of property from thisreserve for reduction entry for the sale of part of the land for*2 As of November 15, 2021

transaction to the reserve for reduction entry*3.

full amount to stabilize DPU in the future, including thethe KDX Toranomon 1chome Building mentioned below.

*3 The reserve for reduction entry for the KDX Toranomon 1chome Building is a
reserve for a special reduction entry account because it involves a special case of tax
assessment when a replacement asset is acquired in conjunction with expropriation,etc., and will be transferred to the reserve for reduction entry upon acquisition of a
replacement asset.

*1 As of June 15, 2021

We sold 114.3m2, a part of the land for the KDX Toranomon
1chome Building to Tokyo Metropolitan Government on

December 2, 2021, in the next fiscal period (April 2022).

This transaction was due to road expansion plans. The

sale price was 1,702 million yen, 26.1% higher than theappraisal value of 1,350 million yen*2, and resulted in a gainon the sale of property of roughly 763 million yen. This wasa partial land sale and will not affect rental revenues for theproperty. The partial land sale will also decrease taxes onproperty, plant, and equipment, and improve revenues versus
expenditures. The appraisal value of this property therefore

The landsubject to sale

October 31, 2021. We intend to provision approximately 280

KDX Toranomon 1chome Building

increased by 200 million yen compared to the value as ofAssets under management (AUM) (total asset value) and number of owned properties(Billion yen)

Office buildings (left axis)

Residential (left axis)

Central urban retail property (left axis)

Others (left axis)

Number of properties (right axis)(Properties)

PO Fiscal period in which public offering occurred

96

600

100
90

500
PO
PO

400

100

0

PO

PO

70

50

PO

40

PO

31

80

60

PO

300

200

440.1

30

PO

20

69.1

10

As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct. As of Oct.
31, 2005 31, 2006 31, 2007 31, 2008 31, 2009 31, 2010 31, 2011 31, 2012 31, 2013 31, 2014 31, 2015 31, 2016 31, 2017 31, 2018 31, 2019 31, 2020 31, 2021

Kenedix Office Investment Corporation

05

Message from the Management
In terms of internal growth, the turnover ratio declined firstthrough syndicated loan refinancing in November 2021. The

COVID-19 pandemic was underway, strongly performing

billion yen was 0.86% as of November 30, 2021, 0.07%

and initially led to a decline in occupancy rates, but once thecompanies seized the rising vacancy rates at the time as anopportunity and this resulted in a brisk pace of expansion

and relocation. We were able to capitalize on that trend anduse it to acquire tenants.

Tenant turnover and rent revisions for existing tenants

led to a net increase in monthly rent of 3.6 million yen andthe average rate of increase accompanying tenant turnover
resulted in a net increase of 2.7%. KDO succeeded inachieving a net increase despite the fact that the COVID-19

pandemic made negotiations with tenants more difficult andaverage interest rate on total interest-bearing debt of 198.7
lower than the end of the previous fiscal period. We also
succeeded in further expanding our group of lending

financial institutions, increasing the number of institutions

by 8 to 24. I think the reduction in interest cost and increasein the number of lending financial institutions resulted fromthe rapid, significant improvement in creditworthiness that

accompanied the inclusion of Kenedix, Inc., the sponsor of
the asset management company, in the Sumitomo Mitsui
Finance and Leasing Co., Ltd. Group.

market rent remained flat.

To establish and strengthen the system for pursuingmarket conditions, implement an agile, flexible leasing

Committee as an advisory body for the entire company as

In the future, we intend to continue to accurately assess

strategy, and also utilize free rent to achieve a quick reboundin occupancy rates.

On the financial front, we refinanced a total of 15.3 billion

yen during the October 2021 fiscal period, 2.0 billion yen ofwhich was procured from an investment corporation bondissue and used to repay short-term debt. The interest-bearing
debt ratio (LTV) was 43.6% as of October 31, 2021. We
were also able to reduce borrowing costs substantially

initiatives in sustainability, we established the Sustainability
well as the Sustainability Office on November 1, 2021 toprovide specialized oversight of related operations. We

expressed support for the Task Force on Climate-related

Financial Disclosures (TCFD) recommendations as an asset
management company, as one step in strengthening
initiatives before these organizational changes.

In the GRESB Real Estate Assessment, we acquired

Green Star rating and 4 stars in the GRESB rating in 2021.
This was the 10th consecutive year in which we have

200 坪未満稼働率(契約面積ベース)

Ofﬁce building occupancy rate (contracted area basis)*1
99.5%

Signs ofimprovement
after bottoming out
at the end
97.6%
of July 2021

98.1%
96.7%

200 坪以上

Ofﬁce building turnover ratio (annualized)*2
9.2%

8.9%

7.0%

96.0%

Average occupancy
rate during period

Average occupancy
rate during period

Average occupancy
rate during period

98.5%

97.0%

96.6%

Oct. 2020

Apr. 2021

Oct. 2021*1 Occupancy rate (contracted area basis) is calculated by dividing contract-based
leased area by leasable area. The ﬁgures are rounded to the ﬁrst decimal place.
Average occupancy rate of ofﬁce buildings during each ﬁscal period is a simple
average of month-end occupancy rates of owned ofﬁce buildings during each period.

6Oct. 2020

Apr. 2021

Oct. 2021*2 Turnover ratio is calculated and annualized as follows: (Total leased area of the tenants whocancelled their lease agreements during the six-month period from the beginning to the endof each period) / (Average leasable area of all ofﬁce buildings owned by KDO as of eachmonth end during the relevant period) x 2. Figures are rounded to the ﬁrst decimal place.

acquired the Green Star rating. We are also actively pursuing

Nihonbashi Horidomecho First, in November 2021.

certiﬁcations. At present , we have succeeded in obtaining

pursue forms of green financing other than green bonds in(based on total ﬂoor area). We also completed the switch to*3 As of December 14, 2021

initiatives aimed at obtaining environmental assessments and*3certiﬁcation for 45 properties, or 60.9% of owned properties
electric power derived from renewable energy sources in

We have issued green bonds twice and intend to actively

the future.

We aim to maximize unitholder proﬁts by building a solid,
proﬁtable portfolio amid the persistently toughenvironment for acquisitions.
For external growth, we intend to focus on asset reshufflingand identifying superior acquisition opportunities although
the tough environment for acquisitions will persist.

Considering the current status of LTV, we have debt

financing capacity as well as cash on hand, and will consider
financing methods along with acquisition opportunities.
For internal growth, we will assign first priority tomaintaining and improving occupancy rates. It is fair to saythat improvement in occupancy rates is an essential element
in boosting profitability of KDO. Activity is robust among
tenants wanting to increase floor space in the mid-sized

office building rental market. The keys are how to capture
the demand and increase the number of new tenants.

Although each property has individual characteristics, we

KDO has now completed establishment of a system fortargeting market-level rent. Our response on slow-moving,steadily accelerate the pace of initiatives.

will utilize free rent effectively in tenant solicitation while
high-rent properties and properties in areas where

pursuing initiatives in sustainability and we intend to

We intend to target improvement in unitholder value,

conditions are tougher will be more flexible and we will

expressed in terms of distributions and net asset value

In terms of financial status, we are currently achieving

I ask for your continued support of Kenedix Officetarget improvement in occupancy rates.

substantial reductions in interest costs. KDO is also close to
obtaining a solid AA rating and the benefits from(NAV), through such initiatives.

Investment Corporation in the future.

improvement in the creditworthiness of our sponsor are

emerging. The interest terms on existing debt are still highcompared to recent financing terms so we intend to continue
to reduce interest costs.

Kenedix Office Investment Corporation

7

Sustainability Initiatives
Environmental certifications and new targets
Acquisition of environmental certiﬁcations
and other assessments*(As of Dec. 14, 2021)

Number ofproperties withcertiﬁcations

45

New target

Percentage ofthe portfolio(Based on total ﬂoor area)

properties(+3 properties fromlast ﬁscal period)

Acquire certiﬁcation
for more than

70

60.9

%

%
of the portfolio
in the future(+3.8% from lastﬁscal period)

Achieved the initial target of acquiringcertiﬁcation of more than 50% of the portfolio* The number of properties with certiﬁcations is counted without duplication in cases where a property has multiple certiﬁcations and assessments. The total ﬂoor area ratio is calculated without
duplication by dividing environmentally certiﬁed ﬂoor area by total ﬂoor area of the portfolio.

Environmental certifications and assessments (as of Dec. 14, 2021)■ GRESB Real Estate Assessment■ DBJ Green Building Certification

GRESB disclosure standards
Rated as “Level A” for Public Disclosure,the highest level.

25■ Certification for CASBEE for Real Estate■ BELS Certification

24

5

Acquired the “Green Star” rating for10th consecutive year and a 4-star
GRESB Rating, the second highest
ranking, in the 2021 GRESB Real
Estate Assessment.

Acquired A ranking for three owned
properties for the ﬁrst time in
December 2021.

8

properties, in total

We improved our score by
renovating two owned
properties to equip themwith LED lighting, etc. in
November 2021.

properties, in total

Acquired 4-star certiﬁcationof the KDX Ochanomizu
Building for the ﬁrst time in
December 2021.

properties, in total

Environmental Initiatives■ Greenhouse gas (GHG) emissions*1

Reduced greenhouse gas (GHG) emission by 15.6% in 2020,
compared to 2015. We intend to set medium and long-term
GHG emissions targets by April 2022.

GHG emissions-21.3%

Intensity per base unit (t-CO2/m2)
0.006809

0.005361-15.6%

GHG emissions (t-CO2)
50,511

42,631

2015

2016

2017

2018

2019

2020

■ Switching to electricity derived fromrenewable energy sources
Initiative at Nihonbashi Horidomecho FirstWe switched the building to electric
power derived from renewable energy
on November 1, 2021.
This reduced electricity costs
by 7.5% compared to the previous
contract and GHG emissions*2 by
251t-CO2.

6800.000000

We have plans to switch 12 otherproperties to electricity derived fromrenewable energy by April 2022.

4533.333333

2266.666667
KDO aims to switch electricity used at each
property to renewable energy sources while
reducing the cost.
0.000000*1 The calculation period is from April of each year to March of the following year and covers the properties owned by KDO that have the authority to manage energy. GHG emissions are calculatedusing the emission factors (emission factors by electric power supplier (basic emission factors)) in the Ministry of the Environment's “Greenhouse Gas Emission Calculation, Reporting, andPublication System.” The intensity per base unit is calculated by dividing each year's consumption and emissions by the total operating ﬂoor area for the year (base unit).
*2 GHG emissions are estimated by KFM using the electric power supplier emission factors (adjusted emission factors) in the Ministry of the Environment's “Greenhouse Gas Emissions Calculation,
Reporting, and Publication Scheme.”

Introduced ESG-service“EaSyGo” (Easygo)
The “EaSyGo” (Easygo) ESG service was introduced totenants in KDX Toyosu Grand Square.
What is EaSyGo?
EaSyGo is a service that provides tenants with information that visualizes
their energy usage and CO2 emissions and gives them an opportunity to
reduce them. The various types of ESG-related information provided
quantify ESG and visualize improvement and the positive impact onsociety.

Speciﬁc Initiatives at KDX
Toyosu Grand Square

Quizzes are posted on the portal site to raise awareness of
disaster prevention. Incentives for correct answers are provided
to educate users on proper disaster prevention and raiseawareness of the website.
We disclose the total waste and CO2 emission together with thepercentage reduction in each from the previous year, andencourage cooperation to reduce waste and CO2 emissions.
We plan to provide ESG-related information on signage in thebuilding, in the future.

Kenedix Office Investment Corporation

9

Financial Status
Interest-bearing debt
The use of syndicated loans at the end of November 2021 and other forms of ﬁnancing substantially reduced the average rate ofinterest on all interest-bearing debt. Improvement in the creditworthiness of Kenedix, Inc., the sponsor of the KFM, also contributed
to an increase in lending ﬁnancial institutions and expanded our ﬁnancing base.
Average interest rate and average remaining period
to maturity of interest-bearing debt*
Average interest rate (including up-front fee) (%)
Average remaining period to maturity (years)

0.94

Outstanding borrowings from financial institutions
as of Nov. 30, 2021
Other
8.5%
Mizuho Trust &Banking
2.5%
Aozora Bank
4.8%
Resona Bank
6.1%
Sumitomo Mitsui
Trust Bank
10.2%
Mizuho Bank
11.3%

0.94

0.86
4.7

4.5

As of Oct.
31, 2020

4.6

As of Apr.
30, 2021

Total
borrowings fromfinancial institutions

185.7

Sumitomo Mitsui
Banking
23.4%

MUFG Bank
18.7%

billion yen

Development
Bank of Japan
14.6%

The Bank of Fukuoka, The Norinchukin Bank, The Nishi-Nippon City Bank,
Sumitomo Life Insurance Company, The Hiroshima Bank, The 77 Bank,
The Musashino Bank, Shinsei Bank, Dai-Ichi Life Insurance Company,
Higashi-Nippon Bank, San ju San Bank, Daishi Hokuetsu Bank, Chugoku Bank,
Yamaguchi Bank, Daiwa Next Bank, and The Shizuoka Bank

As of Nov.
30, 2021* The average interest rate and average remaining period to maturity are theweighted averages based on the balance of debt outstanding as of the end of eachﬁscal period (with the average interest rate rounded to the second decimal place
and the average remaining period to maturity rounded to the ﬁrst decimal place).

Lending ﬁnancial
institutions

Nov.
24 as30,of2021

Apr.
16 as30,of2021

Major indices related to financial stability
We will maintain a stable ﬁnancial position by engaging in conservative management practices while ensuring sufﬁcient liquidity.
Interest-bearing debt ratio (LTV)*1

Fixed interest rate ratio*2

43.6%

Credit rating status96.1%(as of Oct. 31, 2021)

AA- (Positive)(as of Nov. 30, 2021)(as of Oct. 31, 2021)

Maintain stable ﬁnancial base with a target of 45% Continue to hedge against a potential rise in interest rates

Japan Credit Rating Agency, Ltd. (JCR)*1 The Interest-bearing debt ratio (LTV) is the balance of interest-bearing debt at the end of the ﬁscal period divided by total assets at the end of the ﬁscal period.
*2 Includes borrowings ﬁxed by interest rate swaps.

Balance of interest-bearing debt by maturity (Sample, 2021)

Diversification of interest-bearing debt maturities

We seek to reduce reﬁnancing risk by strategically diversifying debt maturities.
Balance of interest-bearing debt by maturity (as of Nov. 30, 2021)
21.60
Debt repayment from syndicated loans, etc.
as of Nov. 30, 2021
(Billion yen)
10.0

13.20

12.80

12.45
2.80
1.00

9.70

9.50
4.80

10

Apr. 2023
fiscal period

8.70

11.05

12.30

10.80
6.70

Apr. 2024
fiscal period

9.05

Apr. 2025
fiscal period

14.20

2.00

16.20

17.10

12.30

14.10

Total interest-bearing debt:
198.7 billion yen

1.00

2.00

21.60

2.00

2.00

4.90

8.65

Apr. 2022
fiscal period

9.50

2.00

14.10

15.50

■Short-term debt: 7.7 billion yen■Long-term debt: 178.0 billion yen■Investment
corporation bonds: 13.0 billion yen

13.50

12.20

15.20

17.10

7.85
7.85

Apr. 2026
fiscal period

Apr. 2027
fiscal period

Apr. 2028
fiscal period

Apr. 2029
fiscal period

6.80
6.80

Apr. 2030
fiscal period

5.00
1.00

3.90

4.00

3.90

Apr. 2031
fiscal period

Focompanie
indiv132,120（30

Other do
com
9,76

（

Financial Summary (Unaudited)
Historical Operating Trends
For the 29th-33rd Fiscal Periods

29th Period(Oct. 2019)30th Period(Apr. 2020)

31st Period(Oct. 2020)

33rd Period(Oct. 2021)

32nd Period(Apr. 2021)

PeriodUnit

Operating revenues

millions of yen

15,027

15,272

16,71416,301

15,028(Rental revenues)

millions of yen

14,95915,215

15,583

15,11914,981

Operating expenses

millions of yen

8,199

8,132

8,380

8,310

8,170

(Property-related expenses)

millions of yen

7,092

7,008

7,086

6,880

7,054

Operating income

millions of yen

6,828

7,140

8,334

7,990

6,857

Ordinary income

millions of yen

5,845

6,177

7,311

7,017

5,911

Net income (a)millions of yen

5,844

6,175

7,310

7,016

5,909

Total assets (b)(Period-on-period change)

millions of yen%

439,773(+0.7)

447,707(+1.8)

459,719(+2.7)

457,505(–0.5)

456,327(–0.3)

Interest-bearing debt (c)(Period-on-period change)

millions of yen%

185,050(+1.6)

192,050(+3.8)

201,750(+5.1)

198,750(–1.5)

198,750(0.0)

Unitholders’ equity (d)(Period-on-period change)

millions of yen%

229,276(–0.1)

229,589(+0.1)

230,665(+0.5)

230,981(+0.1)

230,544(–0.2)

Unitholders’ capital(Period-on-period change)

millions of yen%

220,970(0.0)

220,970(0.0)

220,970(0.0)

220,970(0.0)

220,970(0.0)

Number of investment units issued andoutstanding (e)unit

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

535,054535,786

538,295

539,034

538,015

Total distribution (f)millions of yen

5,844

6,175

6,592

6,592

5,999

Distribution per unit (f)/(e)yen

13,63914,412

15,384

15,38414,000(Earnings distributed per unit)

yen

13,63914,412

15,384

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

yen

─

─

─

─

─

Return on assets (annualized)%

1.3(2.6)

1.4(2.8)

1.6(3.2)

1.5(3.1)

1.3(2.6)

Return on net assets (annualized)%

2.5(5.1)

2.7(5.4)

3.2(6.3)

3.0(6.1)

2.6(5.1)

Net assets ratio at end of period (d)/(b)(Period-on-period change)%

52.1(–0.4)

51.3(–0.9)

50.2(–1.1)

50.5(+0.3)

50.5(+0.0)

Interest-bearing debt ratio at end of period (c)/(b)%(Period-on-period change)

42.1(+0.4)

42.9(+0.8)

43.9(+1.0)

43.4(–0.4)

43.6(+0.1)

99.9

99.9

90.1

93.9

101.5

*1, 2
*2, 3

Payout ratio*4 (f)/(a)%Other references
Number of properties

properties

97

99

98

96

96

Total leasable ﬂoor area

m2

480,328.18

488,127.53

488,010.71

482,299.10

482,247.31

Occupancy rate at end of period

%

99.5

99.5

98.1

96.7

97.6

Depreciation expenses for the period

millions of yen

2,419

2,470

2,523

2,548

2,567

Capital expenditures for the period

millions of yen

1,426

1,485

1,251

1,420

988

Leasing NOI (Net Operating Income)*5

millions of yen

10,287

10,676

11,01910,787

10,495

FFO (Funds from Operation)*6

millions of yen

8,265

8,646

8,776

8,635

8,477

FFO per unit*7

yen

19,287

20,17820,48020,153

19,782*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 29th Fiscal Period are calculated based on a period of 184 days, 182 days for the 30th Fiscal Period, 184 days for the 31st Fiscal Period,
181 days for the 32nd Fiscal Period, and 184 days for the 33rd 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 Corporation11

Kenedix Office Investment Corporation

Balance Sheet
As of October 31, 2021
As of October 31, 2021

As of April 30, 2021

In thousands of yen
AssetsCurrent assets
Cash and deposits (Notes 4)
Cash and deposits in trust (Notes 4)
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment (Notes 5 and 19)
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 8)
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 5)
Leasehold right (Note 19)
Leasehold right in trust (Note 19)
Other
Total intangible assets
Investments and other assets
Investment securities (Note 16)
Lease and guarantee deposits
Lease and guarantee deposits in trust
Long-term prepaid expenses
Other (Notes 11,16 and 17)
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

12
KENEDIX Office Investment Corporation¥¥

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

18,455,256
11,859,877
255,807
70,834
10,87930,652,654

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

18,026,779(6,832,965)
11,193,814
43,564(19,020)
24,543442,289(297,207)
145,082
100,902(72,220)
28,681
27,520,902
127,845,813(36,476,702)
91,369,111
386,893(199,805)
187,087
1,930,865(855,126)
1,075,738
649,345(378,890)
270,454291,876,758
12,750423,704,925

285,257
346,87798
632,233

285,257
347,652
137
633,047

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

1,134,996
10,000122,889
1,182,675
12,662
2,463,223
426,801,196

58,50358,503456,327,613

51,41951,419457,505,270¥

As of October 31, 2021

As of April 30, 2021

In thousands of yen
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable (Notes 7)
Current portion of investment corporation bonds(Notes 7 and 16)
Current portion of long-term loans payable (Notes 7,16 and 17)
Accounts payable–otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Other (Notes 16 and 17)
Total current liabilities
Non-current liabilities
Investment corporation bonds (Notes 7 and 16)
Long-term loans payable (Notes 7, 16 and 17)
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Other (Notes 16 and 17)
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 16 and 17)
Total valuation and translation adjustments
Total net assets (Note 12)
Total liabilities and net assets¥¥

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¥

1,658,337
6,800,000–
21,700,000
594,832
76,731
813
476,580
2,851,496
12,260–34,171,052

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

11,000,000
159,250,000
2,065,341
19,525,890
511,308
192,352,540
226,523,593

220,970,508

220,970,508

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

3,493,596
3,493,596
7,016,251
10,509,848
231,480,356(253,223)(253,223)
230,544,859
456,327,613(498,680)(498,680)
230,981,676
457,505,270¥

See accompanying notes to the financial statements.

Kenedix Office Investment Corporation

13

Kenedix Office Investment Corporation

Statement of Income and Retained Earnings
For the period from May 1, 2021 to October 31, 2021
From May 1, 2021

From November 1, 2020

to October 31, 2021

to April 30, 2021

In thousands of yen
Operating revenues
Rent revenue – real estate (Note 14)¥

Other lease business revenue (Note 14)
Gain on sale of real estate properties (Note 14)

13,261,580¥

13,508,875

1,720,308

1,610,737－

1,128,423

46,86053,08915,028,749

16,301,126

7,054,078

6,880,711－

198,923

Asset management fees

930,027

1,044,945

Directors' compensation

8,400

8,400

Dividends income
Total operating revenues
Operating expenses
Expenses related to rent business (Note 14)
Loss on sale of real estate properties (Note 14)

Asset custody fees

23,687

23,742Administrative service fees

59,004

59,231

Audit fees

12,80012,800

Other operating expenses

82,76981,527

Total operating expenses

8,170,767

8,310,282

Operating income

6,857,981

7,990,843

Non-operating income
Interest income

45

49

Gain on forfeiture of unclaimed dividends

371

398

Interest on refund
Total non-operating income

7

4

424

453

775,597776,153

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

34,59433,249Financing-related expenses

128,022

125,161

Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Other non-operating expenses

6,802

5,975

－

9,171

2,277

24,044

Total non-operating expenses

947,294

973,755

Ordinary income

5,911,112

7,017,541

Income before income taxes

5,911,112

7,017,541

1,181

1,299

Income taxes (Note 11)
Current
Deferred
Total income taxes
Net income

6

(9)

1,188

1,290

5,909,924

7,016,251

Retained earnings brought forward

108

Unappropriated retained earnings

5,910,032

See accompanying notes to the financial statements.

14
KENEDIX Office Investment Corporation

¥

–

¥

7,016,251

Kenedix Office Investment Corporation

Statement of Changes in Net Assets
For the period from May 1, 2021 to October 31, 2021
Valuationandtranslation
adjustments

Unitholders' equity (Note 6)

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 of
October 31, 2020¥

220,970,508¥

2,775,335¥

7,310,459¥

10,085,794¥

231,056,303¥(391,228)¥

230,665,074

Changes during the fiscal period
Provision of reserve for‒718,261(718,261)

‒

‒

‒

‒

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

Net income––

7,016,251

7,016,251

7,016,251–

7,016,251

–

–

–

–

–

(107,451)(107,451)–

718,261(294,208)

424,053424,053(107,451)

316,601

reduction entry

Net changes of items otherthan unitholders’ equity
Total changes during
the fiscal period
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‒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)

reduction entry

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

See accompanying notes to the financial statements.

Kenedix Office Investment Corporation

15

Kenedix Office Investment Corporation
Statement of Cash Flows
For the period from May 1, 2021 to October 31, 2021

From May 1, 2021
to October 31, 2021

From November 1, 2020
to April 30, 2021

In thousands of yen

Cash flows from operating activities
Income before income taxes¥

Depreciation

5,911,112¥

7,017,541

2,567,220

2,549,244

118,773

116,505

Interest income

(45)

(49)

Interest expenses

810,191

809,403–

9,171

Amortization of long-term prepaid expenses

Amortization of investment unit issuance costs
Amortization of investment corporation bond issuance costs

6,802

5,975

Decrease (increase) in operating accounts receivable(30,301)

80,426

Decrease (increase) in prepaid expenses(38,950)

39,114

Increase (decrease) in operating accounts payable

241,808(290,597)

Increase (decrease) in accounts payable–other(129,720)(80,554)

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

171,759

Increase (decrease) in advances received(250,010)

173,084

Increase (decrease) in deposits received(9,620)8,460–

3,086,836(39,136)(116,060)

Decrease in property, plant and equipment in trust due to sale
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid

(26,736)(15,521)

8,922,947

13,564,741

45

49(798,964)(811,899)

(820)

(764)

8,123,207

12,752,128(76,560)(45,815)(1,062,136)(1,168,428)

–

(27)

Repayments of tenant leasehold and security deposits(247,466)(28,160)

Proceeds from tenant leasehold and security deposits

222,552

181,075

Repayments of tenant leasehold and security deposits in trust(809,827)(954,679)

Proceeds from tenant leasehold and security deposits in trust

848,272

1,004,016

Payments of restricted deposits in trust(12,137)(20,285)–

9,631(1,137,304)(1,022,674)

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

Proceeds from restricted deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term loans payable

7,300,000

5,800,000

Repayments of short-term loans payable(3,500,000)(11,500,000)

Proceeds from long-term loans payable

6,000,000

13,900,000

Repayments of long-term loans payable(11,800,000)(11,200,000)

1,986,113–

Proceeds from issuance of investment corporation bonds
Payments of investment corporation bond issuance costs–(3,228)Dividends paid

(6,591,270)(6,592,738)

Net cash provided by (used in) financing activities(6,605,157)(9,595,966)

Net increase (decrease) in cash and cash equivalents

380,746

2,133,486

Cash and cash equivalents at the beginning of period

28,567,460

26,433,973

Cash and cash equivalents at the end of period (Note 4)
See accompanying notes to the financial statements.

16
KENEDIX Office Investment Corporation¥

28,948,207¥

28,567,460

Kenedix Office Investment Corporation

Notes to the Financial Statements
For the period from May 1, 2021 to October 31, 2021

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 April 30, 2021, the Investment Corporation sold two office buildings (KDX Shin-Nihonbashi Building:initial acquisition price of ¥2,300 million and KDX Hon-Atsugi Building: initial acquisition price of ¥1,305 million) with a disposition
price of ¥4,135 million.
During the period ended October 31, 2021, the Investment Corporation did not acquire or sell any new assets.
At the end of the thirty- second and thirty- third fiscal periods (fiscal periods ended April 30, 2021 and October 31, 2021), 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) with totalacquisition prices of ¥440,180 million at the end of the thirty-second and thirty-third fiscal periods, respectively. The occupancy ratios
were approximately 96.7% and 97.6% at the end of the thirty-second and thirty-third 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.

Kenedix Office Investment Corporation17

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

From November 1, 2020
to April 30, 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.

18
KENEDIX Office Investment Corporation

(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 April 30, 2021 and October 31, 2021, respectively. In subsequent calendar years, suchproperty-related taxes are charged as operating expenses in the fiscal period to which 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) Consumption Taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of 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.
Kenedix Office Investment Corporation

19

(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. CHANGES IN ACCOUNTING POLICIES(A) Application of Accounting Standard for Revenue Recognition
The Investment Corporation applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 issued on
March 31, 2020. “the Revenue Recognition Accounting Standard”), etc. from the beginning of the current calculation period, andrecognize revenue based on the amount which is expected to be received in exchange for the promised goods and services when
the control of such goods and services is transferred to customers. This has minimal impact on the financial statement for thecurrent calculation period.
Moreover, in accordance with the transitional treatment stipulated in Paragraph 89-3 of the Revenue Recognition AccountingStandard, the notes “related to revenue recognition” for the previous calculation period are not indicated.
(B) Application of Accounting Standard for Fair Value Measurement, Etc.
The Investment Corporation applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on
July 4, 2019. “the Fair Value Measurement Accounting Standard”), etc. from the beginning of the current calculation period, andapply the new accounting policy stipulated in the Fair Value Measurement Accounting Standard, etc. over the future in accordancewith the transitional treatment stipulated in Paragraph 19 of the Fair Value Measurement Accounting Standard and Paragraph 442 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10 issued on July 4, 2019). This has minimal
impact on the financial statement for the current calculation period.

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

As of April 30, 2021

In thousands of yen
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.

20
KENEDIX Office Investment Corporation¥

18,455,256
11,859,877(1,747,673)¥ 28,567,460

5. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Property, plant and equipment and intangible assets consist of the following as of October 31, 2021.
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¥ 18,026,779¥ 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–¥ 285,257

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

16,906774

346,877

6,306

–

–

6,306

6,208

39

98

660,141––

660,141

27,907813

632,233¥469,497,006¥ 989,448¥ 8,250¥ 470,478,205¥ 47,726,254¥ 2,567,220¥ 422,751,950

Other
Total intangible assets
Total

¥

–

¥

¥

Kenedix Office Investment Corporation21

Property, plant and equipment and intangible assets consist of the following as of April 30, 2021.
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¥ 17,975,653¥ 51,126

43,564¥–¥ 18,026,779¥ 6,832,965¥ 306,215¥ 11,193,814––

43,56419,0201,215

24,543435,359

6,930–

442,289

297,207

12,485145,082

Structures
Machinery andequipment
Tools, furnitureand fixturesLand

99,918984–

100,90272,2203,799

28,681

27,520,902––

27,520,902––

27,520,902

Subtotal

46,075,399

59,040–46,134,439

7,221,414

323,715

38,913,025¥ 128,754,352¥ 1,127,268¥ 2,035,806¥ 127,845,813¥ 36,476,702¥ 2,129,795¥ 91,369,111

379,369

12,1204,596

386,893

199,805

12,255

187,087

1,876,485

122,127

67,7471,930,865

855,126

58,995

1,075,738

561,026

99,907

11,588649,345

378,890

23,276

270,454

Land in trust
Construction inprogress in trust

293,726,525‒

1,849,767

291,876,758––

291,876,758

6,150

6,600

–

12,750––12,750Subtotal

425,303,909

1,368,023

3,969,506

422,702,425

37,910,525

2,224,323

384,791,900

Total property, plant andequipment

471,379,308

1,427,063

3,969,506

468,836,865

45,131,939

2,548,039

423,704,925–¥ 290,050¥ 4,792–¥ 285,257

363,784

16,132774

347,652

Property,plant andequipment

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

Leasehold right¥ 290,050

Leasehold rightin trust

363,784

–

–

Other
Total intangible assets
Total

¥

–

¥

¥

6,278

27

–

6,306

6,169

431

137

660,11327–

660,141

27,094

1,205

633,047¥ 472,039,421¥ 1,427,091¥ 3,969,506¥ 469,497,006¥ 45,159,033¥ 2,549,244¥ 424,337,972

Note: The amount of decrease during the period is primarily attributable to the sales of the two real estate properties.

6. 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

22
KENEDIX Office Investment Corporation

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

From November 1, 2020
to April 30, 2021
2,000,000

428,510428,510

Note

Note

7. 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 of
October 31, 2021:
Classification
Short-term loans payable

Weighted-average

Balanceinterest rate

(In thousands of yen)

Drawdown date

Last repayment dateNovember 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¥

500,000

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

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

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

SubtotalLong-term loans payable

500,000

18,550,000
March 12, 2014

March 12, 2023

1.358%March 20, 2014

March 12, 2023

1.349%¥

1,800,000
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

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

October 30, 2015

October 30, 2025

1.114%

1,500,000

October 30, 2015

October 30, 2025

1.114%

2,000,000

Kenedix Office Investment Corporation

23

Classification
Long-term loans payable

24
KENEDIX Office Investment Corporation

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

October 30, 2015

October 30, 2025

1.114%

October 30, 2015

October 30, 2025

1.121%¥

2,500,000

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

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

Classification
Long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)August 31, 2018

August 31, 2025

0.723%

August 31, 2018

August 31, 2028

1.012%¥

700,000

300,000

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

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

February 28, 2023

0.300%

1,000,000

Kenedix Office Investment Corporation25

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)

September 21, 2021

August 31, 2023

0.300%

September 21, 2021

February 29, 2024

0.300%¥

2,000,000
1,000,000
156,600,000

July 19, 2017

July 19, 2022

0.260%¥

Subtotal

1,000,000
1,000,000

Investment corporation bonds

July 25, 2014

July 25, 2024

1.180%

April 28, 2016

April 28, 2028

0.900%¥

2,000,000
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

12,000,000

Total

¥

198,750,000

The following summarizes short-term loans payable, long-term loans payable and investment corporation bonds outstanding as ofApril 30, 2021:
Classification
Short-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)August 31, 2020

August 31, 2021

0.323%¥

November 30, 2020

November 30, 2021

0.376%

1,000,000

November 30, 2020

November 30, 2021

0.326%

500,000

January 29, 2021

January 29, 2022

0.378%

1,300,000

January 29, 2021

January 29, 2022

0.328%

500,000

February 26, 2021

February 26, 2022

0.378%

2,000,000

March 31, 2021

March 31, 2022

0.327%

500,000

July 10, 2014

July 10, 2021

0.903%

July 10, 2014

July 10, 2021

0.903%

500,000

September 1, 2014

August 31, 2021

0.885%

800,000

September 1, 2014

August 31, 2021

0.885%

500,000

March 20, 2014

September 20, 2021

1.013%

4,000,000

September 30, 2014

September 30, 2021

0.893%

1,000,000

October 31, 2014

October 31, 2021

0.802%

3,000,000

January 29, 2016

January 31, 2022

0.590%

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%

Subtotal
Current portion of long-term loans payable

6,800,000¥

26
KENEDIX Office Investment Corporation

2,000,000

2,300,000

SubtotalLong-term loans payable

1,000,000

21,700,000
March 12, 2014

March 12, 2023

1.358%¥

1,800,000

March 20, 2014

March 12, 2023

1.349%

2,000,000

July 31, 2014

July 31, 2022

1.014%

2,200,000

September 3, 2014

August 31, 2022

0.979%

1,000,000

September 3, 2014

August 31, 2022

0.979%

950,000

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

January 30, 2015

January 31, 2025

1.161%

1,500,000

Classification
Long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)February 18, 2015

February 29, 2024

1.157%

February 18, 2015

February 28, 2025

1.314%¥

1,700,000

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

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, 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

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

1,250,000

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

Kenedix Office Investment Corporation27

Classification
Long-term loans payable

28

KENEDIX Office Investment Corporation

Weighted-average

Balanceinterest rate

(In thousands of yen)

Drawdown date

Last repayment date

December 7, 2017

November 30, 2027

0.939%

December 7, 2017

November 30, 2027

0.869%

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, 2022

0.291%

1,000,000

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

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¥

1,000,000
1,000,000

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

Classification
Long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

November 12, 2020

April 30, 2027

0.552%

November 12, 2020

November 12, 2030

0.808%¥

1,300,000
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 25, 2014

July 25, 2024

1.180%

April 28, 2016

April 28, 2028

0.900%

1,000,000

July 19, 2017

July 19, 2022

0.260%

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

Subtotal
Investment corporation bonds

159,250,000¥

2,000,000

Subtotal

11,000,000

Total

¥

198,750,000

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

26,230¥26,2309. COMMITMENT LINE AGREEMENTThe Investment Corporation has concluded a commitment line agreement with bank of account, etc.
As of October 31, 2021

As of April 30, 2021

In thousands of yen
Maximum amount¥

9,000,000

Drawn credit facility¥

6,000,000–

Balance¥–

9,000,000¥

6,000,000

10. PER UNIT INFORMATION
From May 1, 2021
to October 31, 2021

From November 1, 2020
to April 30, 2021
Yen

Net asset value per unit¥

Net income per unit¥

Weighted-average number of units (units)

538,015¥

13,791¥

428,510539,034
16,373
428,510

The weighted-average number of units outstanding of 428,510 as of October 31, 2021 and April 30, 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.
Kenedix Office Investment Corporation

29

11. 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 and ¥6,592 million for the fiscal periods
ended October 31, 2021 and April 30, 2021, respectively. Therefore, such distributions were treated as deductible distributions forpurposes of corporate income taxes. The effective tax rate on the Investment Corporation’s income was 0.02% for the fiscal periods
ended October 31, 2021 and April 30, 2021, respectively. The following table summarizes the significant differences between thestatutory tax rate and the effective tax rate.
From November 1, 2020
to April 30, 2021

From May 1, 2021
to October 31, 2021
Statutory tax rate

31.46%

31.46%

Deductible cash distributions(31.93)(29.55)0.47–

Reversal of reserve for reduction entry
Provision of reserve for reduction entry
Others
Effective tax rate–

(1.90)

��
0.01

��
0.01

0.02%

0.02%

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

As of April 30, 2021

In thousands of yen
Deferred tax assets
Enterprise tax payable

¥

27

¥

33

Amortization of leasehold right

5,318

5,075

Deferred gains or losses on hedges

89,201

160,857

Subtotal

94,548

165,966

Valuation allowance(94,520)(165,932)

Total deferred tax assets

¥

¥

27

33

12. 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.

13. RELATED-PARTY TRANSACTIONS(1) Parent Company, Major Corporate Unitholders and Other
Thirty-third fiscal period (From May 1, 2021 to October 31, 2021) and Thirty- second fiscal period (From November 1, 2020 toApril 30, 2021): Not applicable(2) Affiliated Companies and Other
Thirty-third fiscal period (From May 1, 2021 to October 31, 2021) and Thirty-second fiscal period (From November 1, 2020 toApril 30, 2021): Not applicable(3) Fellow Subsidiary Companies and Other
Thirty-third fiscal period (From May 1, 2021 to October 31, 2021) and Thirty-second fiscal period (From November 1, 2020 toApril 30, 2021): Not applicable

30
KENEDIX Office Investment Corporation

(4) Directors, Major Individual Unitholders and Other
Thirty-third fiscal period (From May 1, 2021 to October 31, 2021) and Thirty-second fiscal period (From November 1, 2020 toApril 30, 2021): Not applicable

14. 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 May 1, 2021 to October 31, 2021 and from November 1, 2020 to April 30, 2021 consist of the following:
From May 1, 2021

From November 1, 2020

to October 31, 2021

to April 30, 2021

In thousands of yen
Rental and other operating revenues
Rent revenue – real estate
Rental revenues¥ 11,710,362¥ 11,882,196

1,551,218

1,626,678

13,261,580

13,508,875

Parking space rental revenues

475,555

495,509

Utility charge reimbursement

1,025,789

895,090

Common area charges
Subtotal
Others:Miscellaneous

218,963

220,136

Subtotal

1,720,308

1,610,737¥ 14,981,889¥ 15,119,613

Property management fees and facility management fees

¥1,414,777¥1,438,342

Utilities

1,023,838

887,792

Taxes

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

1,339,335

1,302,176

Repairs and maintenance

337,875

356,093

Insurance

19,306

19,514

Trust fees

29,76730,152OthersDepreciation
Total expenses related to rent business

321,977

297,8082,567,199

2,548,829¥ 7,054,078¥ 6,880,711

Gain and loss on sale of real estate properties
KDX Shin-Nihonbashi Building
Revenue from sale of investment properties－¥ 3,200,000

Cost of investment properties－

1,971,004

Other sales expenses－

100,571－¥ 1,128,423－¥ 935,000－

1,115,831

Gain on sale of real estate properties¥¥

KDX Hon-Atsugi Building
Revenue from sale of investment properties¥

Cost of investment properties
Other sales expenses
Loss on sale of real estate properties¥－

18,091－¥ 198,923

Kenedix Office Investment Corporation31

15. 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 of
October 31, 2021 and April 30, 2021 are as follows:
As of October 31, 2021

As of April 30, 2021

In thousands of yen
Due within one year

¥ 2,863,474¥ 3,250,060

Due after one year

7,163,359

7,850,178¥ 10,026,834¥ 11,100,238

Total

16. FINANCIAL INSTRUMENTS
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.

32
KENEDIX Office Investment Corporation

(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

156,600,000

157,523,811

923,811¥ 188,150,000¥ 189,163,194¥ 1,013, 194(253,223)(253,223)–

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 17 “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 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¥

23,350,000

4,000,000

26,100,000¥

28,100,000

81,150,000¥

85,150,000

Thirty-second fiscal period (From November 1, 2020 to April 30, 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.

Kenedix Office Investment Corporation33

(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 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(L) “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 April 30, 2021 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 them have been omitted.
Carrying value
Estimated fair value
Difference
In thousands of yen(1) Current portion of investment corporation bonds(2) Current portion of long-term loans payable

–

–

–

21,700,000

21,756,816

56,816(3) Investment corporation bonds

11,000,000

11,019,300

19,300(4) Long-term loans payable

159,250,000

160,294,270

1,044,270¥ 191,950,000¥ 193,070,386¥ 1,120,386(498,680)(498,680)–

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.

34
KENEDIX Office Investment Corporation

(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 17 “DERIVATIVE TRANSACTIONS.”*2 Redemption schedule for loans payable and investment corporation bonds
Due within
1 year or lessDue after

Due after

Due after

1 year through2 years through2 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

2,000,000

4,000,000–

4,000,000

21,700,000

11,950,000

13,200,000

16,050,000

24,900,000

93,150,000

bonds
Long-term loans payable
Total

¥

21,700,000¥

12,950,000¥

15,200,000¥

20,050,000¥

24,900,000¥

97,150,000

17. DERIVATIVE TRANSACTIONS
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(2) Hedge accounting applied
Hedge

Type ofaccounting

derivative

methodtransactions

Principle method Interest-rate

Contracted amount
Hedgeditems(In thousands of yen)
Maturing
after 1 year

Fair value(In thousandsof yen)Long-termswaps:

loans

Receive/floating

payableCalculation
method for
applicable fair value
Based on the¥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*

and pay/fixed
Total

¥

(253,223)(*)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 April 30, 2021:(1) Hedge accounting not applied
Not applicable

Kenedix Office Investment Corporation35

(2) Hedge accounting applied
Hedge

Type ofaccounting

derivative

methodtransactions

Contracted amount
Hedgeditems

Principle method Interest-rate

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¥69,850,000¥

69,850,000¥(498,680)

amount provided bycounterparty
financial institutions

and pay/fixedSpecial treatment Interest-rateLong-termof interest-rate

swaps:

loans

swaps

Receive/floating

payable55,950,000

37,250,000¥ 125,800,000¥ 107,100,000*

and pay/fixed
Total

¥

(498,680)(*)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.

18. REVENUE RECOGNITION(1)

I nformation 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 and utility 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
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.
(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(balance at beginning of fiscal period)
Receivables generated from contracts with customers(balance at end of fiscal period)

36¥212,192
246,452

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)–

KENEDIX Office Investment Corporation

(b)Transaction value allocated to remaining performance obligations
Not applicable.
The Investment Corporation does not include contracts whose terms are initially expected to be less than one year as a targetof the note on transaction value allocated to remaining performance obligations as an expedient in practice.
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.

19. INVESTMENT AND RENTAL PROPERTIES
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

Fair value

As of October 31, 2021
(In thousands of yen)
¥ 517,705,000¥ 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 .
*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 14 “BREAKDOWNOF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, AND GAIN AND LOSS ON SALE
OF REAL ESTATE PROPERTY.”
Thirty-second fiscal period (From November 1, 2020 to April 30, 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 October 31, 2020

Net change

As of April 30, 2021

Fair value
As of April 30, 2021
(In thousands of yen)
¥ 517,402,000¥ 428,546,523¥ (4,208,574)¥ 424,337,948*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 sales of two properties totaling ¥3,086,836 thousand and depreciation amounting to¥2,548,829 thousand.

Income and loss in the fiscal period ended April 30, 2021 for real estate for rental purposes is listed in Note 14 “BREAKDOWN OFRENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, AND GAIN AND LOSS ON SALE OF
REAL ESTATE PROPERTY.”

Kenedix Office Investment Corporation

37

20. SEGMENT AND RELATED INFORMATION
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.
Thirty-second fiscal period (From November 1, 2020 to April 30, 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.

21. SIGNIFICANT SUBSEQUENT EVENTS
Not applicable

38
KENEDIX Office Investment Corporation

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

Thirty-second fiscal period(From November 1, 2020 to April 30, 2021)

(Yen)

(Yen)

¥ 5,910,032,522¥ 7,016,251,384¥ 89,107,478¥-

III. Total distributions¥ 5,999,140,000¥ 6,592,197,840

Distributions per unit

¥ 14,000¥ 15,384

Provision of reserve for reduction entry¥-¥423,945,058

V. Retained earnings brought forward to
the next period¥ -¥ 108,486

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.

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 66-2 of the Act on Special
Measures Concerning Taxation is deducted fromunappropriated retained earnings, it shall
distribute part of the outstanding ¥6,592,197,840
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.

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

39

40

Kenedix Office Investment Corporation

41

Unitholder Information
Investment Corporation Structure as of Feb. 1, 2022❺

Parent Companies of AssetManagement Company
Company with a speciﬁed relationship/
Supporting company

Investment Corporation

Sumitomo Mitsui Finance and Leasing
Co., Ltd.
SMFL MIRAI Partners Co., Ltd.

SMFL MIRAI Partners Investment 2
Co., Ltd.
Parent Companies of AssetManagement Company
Property Support Line Company
Trademark Licenser

Kenedix Property Design, Inc.

❻

Parent Companies of AssetManagement Company
Company with a speciﬁed relationship

Board of Directors

Asset Custodian /Administrative Agent(Institutional administration)
Mizuho Trust & Banking Co., Ltd.

General Meeting ofUnitholders❸

Property Management Company*

Administrative Agent(Accounting business)❼

Executive Director:
Hikaru Teramoto

Mitsubishi UFJ Trust andBanking Corporation

Supervisory Director:
Yoshihiro Morishima

Kenedix, Inc.

❽

Suprvisory Director:
Takahiro Seki❷❹

Asset Management Company❶

Kenedix Real Estate FundManagement, Inc.

Sumitomo Mitsui
Trust Bank, Limited

Suprvisory Director:
Akiko Tokuma❾

Auditor❷Ernst & Young
ShinNihon LLC

Property Support Line Company
Kenedix Investment Partners, Inc.
❶ Asset management agreement❷ Memorandum of Understanding on providing real estate information❸ Support agreement❹ Trademark licensing agreement❺ Property management agreement

Administrator for Unitholders’ Register
Administrator for Special Account

Administrative Agent for
Investment Corporation Bonds
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.

❻ Asset custodian agreement / Administrative agency agreement(Institutional administration)❼ Administrative agency agreement (Accounting business)❽ Unitholder registry administrator agreement / Special accounts administration agreement❾ Financial agency agreement* Several properties are not under the property management of Kenedix Property Management, Inc.

Unitholder structure as of Oct. 31, 2021
Percentage of investment units by type of unitholder
Individuals and others
13,377 units
Foreigncompanies andindividuals
132,120 units（3.12%）

Financial institutions(including securities
companies)

273,249 units（63.76%）（30.83%）

428,510 units
Other domestic
companies

9,764 units（2.27%）* Ratios rounded down to the second decimal place.

42

Percentage of unitholders by type of unitholder
Other domestic companies
94

Foreign companies
and individuals
291(1.99%）

Financial
institutions(including
securities
companies)
137（2.90%）（6.17%）

4,714
Individuals
and others
4,192（88.92%）

IR schedule
Fiscal period ended October
May

Jun.

Jul.

Aug.

Sep.

Financial results
announcement

Fiscal period ended April
Oct.

Nov.

Fiscal period end

Start of distribution payments
Asset management report publication

Dec.

Jan.

Feb.

Financial results
announcement

Mar.

Apr.

Fiscal period end

Start of distribution payments
Asset management report publication

Unitholder memorandum
Fiscal period end

April 30 and October 31 of each year

General Meeting of Unitholders

Convened at least once every two years, in principle

Date of record for establishment ofunitholder 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 public announcements Nihon Keizai Shimbun (Nikkei)
Unitholder registry andspecial account administrator

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

Postal address andtelephone inquiries

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, in principle, contact the brokeragewith which you have an account. 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 KDO, 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

43

Portfolio

Tokyo metropolitan area48

We own properties in excellent locations,near to train stations

Advantageof owned

properties

Walking time from nearest station(central 5 wards)(based on acquisition cost; office buildings)

5 minutes
5.5%

6+ minutes
16.8%

1 minute
25.6%

Within a

5-minute walk

properties

83.2% 2 minutes

4 minutes
14.0%(as of Oct. 31, 2021)

12.6%

3 minutes
25.5%

Ueno
JR Yamanote Line

A-37

A-93
A-29

D-2

A-38

Shinjuku

A-66

A-41

A-55

Shibuya
Harajuku
Ward

A-71

A-88

Shinjuku
Ward Ichigaya

A-6

A-56

A-8

A-27

A-46

A-59

Ochanomizu

A-127

A-87
A-64

A-51

Nihonbashi

A-73
A-108

A-7

Shibuya

A-115

A-119

Toranomon

A-116

Minato
Ward

A-20
A-4

A-21

A-112

A-124
A-109

A-67

A-121

Shimbashi
A-128

A-107

Chuo Ward

Hamamatsucho

A-32

JR Sobu Line

A-113

Kanda

A-1

JR Yamanote Line

Ebisu

Iidabashi

A-92

Akihabara

ChiyodaA-13
Ward Tokyo

JR Chuo Line

A-120

Suidobashi

A-60

A-19
A-91

A-17

A-89

JR
Tokaido Line

ShinagawaSee pages 21-26 for more information on owned properties as of October 31, 2021.
See our website for more information on owned properties: https://www.kdo-reit.com/en/portfolio/list.html

44

A-3

A-1

A-3

A-4

A-20

A-51

A-60

A-64

A-67

KDX Nihonbashi
313 Building

HigashiKayabacho
Yuraku Building

KDX Hatchobori
Building

KDX Kayabacho
Building

KDX Hamacho
Nakanohashi
Building

KDX Harumi
Building

KDX Nihonbashi
216 Building

KDX Ginza
1chome Building

A-73

A-87

A-107

A-108

A-113

A-121

A-7

A-19

KDX Hakozaki
Building

Nihonbashi
HoridomechoFirst

KDX Ginza East
Building

Pentel Building

KDX
Shin-Nihonbashi
Ekimae Building

Ginza 4chome
Tower

KDX Minami
Aoyama Building

KDX
Hamamatsucho
Building

A-21

A-32

A-89

A-91

A-109

A-112

A-115

A-116

KDX Shinbashi
Building

KDX ShibaDaimon Building

KDX
Takanawadai
Building

KDX Mita
Building

KDX
Hamamatsucho
Center Building

KDX Toranomon
1chome Building

ARK Mori
Building

KDX
Nishi-Shinbashi
Building

A-124

A-128

A-8

A-13

A-27

A-37

A-46

A-56

KDX
Hamamatsucho
Place

KDX Shinbashi
Ekimae Building

KDX Kanda
Kitaguchi
Building

KDX Kojimachi
Building

KDX Kajicho
Building

KDX
Ochanomizu
Building

Hiei Kudan-Kita
Building

KDX Jimbocho
Building

A-59

A-92

A-127

A-29

A-38

A-41

A-55

A-66

KDX Iwamotocho
Building

KDX Akihabara
Building

KDX Kanda
Ekimae Building

KDX
Higashi-Shinjuku
Building

KDX
Nishi-Shinjuku
Building

KDX Shinjuku
286 Building

Shin-toshin
Maruzen Building

KDX Shinjuku
Building

A-71

A-88

A-93

A-6

A-17

A-119

A-120

D-2

KDX Iidabashi
Building

KDX Shinjuku
6-chome Building

KDX Iidabashi
SquareHarajuku F.F.
Building

KDX Ebisu
Building

KDX Shibuya
Nanpeidai Building

KDX Yoyogi
Building

Shinjuku 6chome
Building (Land)

Kenedix Office Investment Corporation

45

Portfolio

SaitamaPrefecture

Tokyo metropolitan area
(excluding central 5 wards)

29

A-86
A-99

A-62

A-90

A-84

A-33

A-96

Tokyo Metropolitan
A-78

properties

A-35(as of Oct. 31, 2021)

A-5
A-125
A-85

A-83

A-117
A-94
A-22
A-102

Kanagawa PrefectureTokyo
central5 wards

A-14

A-26
A-95
A-72

A-30

A-63

A-48
A-101
A-123

A-16

A-31

A-122

Chiba Prefecture

A-5

A-14

A-16

A-22

A-26

A-30

A-31

A-33

KDX NakanoSakaue Building

KDX Funabashi
Building

Toshin 24
Building

KDX
Shin-Yokohama
Building

KDX Kiba
Building

KDX NishiGotanda Building

KDX MonzenNakacho Building

KDX
Okachimachi
Building

A-35

A-48

A-62

A-63

A-72

A-78

A-83

A-84

KDX Hachioji
Building

KDX Kawasaki-Ekimae
Hon-cho Building

Koishikawa TG
Building

KDX Gotanda
Building

KDX Tachikawa
Ekimae Building

KDX Fuchu
Building

KDX Kasuga
Building

A-85

A-86

A-90

A-94

KDX HigashiShinagawa
Building

A-95

A-96

A-99

A-101

KDX
Nakameguro
Building

KDX Omiya
Building

KDX Ikebukuro
Building

KDX MusashiKosugi Building

KDX Toyosu
Grand Square

KDX IkebukuroWest Building

KDX Yokohama
Building

A-102

A-117

A-122

A-123

A-125

KDX
Takadanobaba
Building

KDX Yokohama
Nishiguchi
Building

BR Gotanda

Mitsubishijuko
Yokohama
Building

KDX Yokohama
Kannai Building

KDX Chofu
Building46

A-118

SapporoOther regional areas

19

properties(as of Oct. 31, 2021)

A-12

A-82

A-110

A-54

A-100

A-126

A-69

A-104

A-98

A-53

Sendai

Utsunomiya

A-42

Kyoto

Hiroshima

Osaka

Hakata

A-70

A-44

A-97

Tokyo
metropolitan
area

Nagoya
A-58

A-106

A-79

A-111

A-12

A-42

A-44

A-53

A-54

A-58

A-69

A-70

Portus Center
Building

KDX Karasuma
Building

KDX Sendai
Building

KDX HakataMinami Building

KDX Kitahama
Building

KDX Nagoya
Sakae Building

KDX KobayashiDoshomachi
Building

KDX Sapporo
Building

A-79

A-82

A-97

A-98

Advantageof owned
properties

KDX Nagoya
Ekimae Building

KDX Higashi
Umeda Building

KDX Utsunomiya
Building

KDX Hiroshima
Building

A-100

A-104

A-106

A-110

Percentage of properties meeting the new earthquakeresistant building standards in the portfolio*
Comparable to newearthquake-resistantbuilding standards

3 properties
3.8%
Senri Life Science
Center Building

A-111

KDX Nagoya
Nichigin-mae
Building

KDX MinamiHonmachi
Building

A-118

KDX Sapporo
Kitaguchi
Building

KDX Sakura-dori
Building

KDX Shin-Osaka
Building

All properties meet the new earthquake
resistant (shin-taishin) building standards

New earthquakeresistantbuilding standards

100%

92 properties
96.2%

A-126

KDX Tosabori
Building* The percentage of area based on rentable area as of October 31, 2021. The percentage
interest in rentable area in the entire building is used for properties with quasi common
areas.

Kenedix Office Investment Corporation

47

Please see KDO’s website
for further information.

Our Website

It is also easy to view ona smartphone and tablet.

Latest Financial Information
https://www.kdo-reit.com/en/ir/
library.html

The latest ﬁnancial
reports and IR
presentation materials areavailable for viewing.

Video of IR Presentation

https://www.video-streaming.net/ir/
8972/2021_10_e/

This is a video of
the IR presentation
for the October
2021 ﬁscal period.

To Our Individual Unitholders
https://www.kdo-reit.com/ja/ir/
individual.html (Japanese only)This page presents
the main points of
the investment
corporation
overview andcharacteristics.

URL

https://www.kdo-reit.com/en/