Financial Statements（Fifth Fiscal Period:From May 1, 2007 to October 31, 2007）
Report of Independent Auditors
Balance Sheets
Statements of Income and Retained Earnings
Statements of Changes of Unitholders’ Equity
Statements of Cash Flows
Notes to Financial Statements

Kenedix Realty Investment Corporation

BALANCE SHEETSAs of October 31, 2007 and April 30, 2007
In thousands of yen

As of October31, 2007
AssetsCurrent assets:
Cash and bank deposits
Rental receivables
Consumption tax refundable
Other current assets
Total current assets
Property and equipment, at cost:
Land
Buildings and structures
Machinery and equipment
Tools, furniture and fixtures
Less-accumulated depreciation
Net property and equipment
Other assets:
Ground leasehold
Organization costs
Corporate bond issuance costs
Unit Issuance costs
Other assets
Total assets

Liabilities and Unitholders'Equity
Liabilities
Current liabilities :Trade and other payables
Short-term debt
Deposits received
Rents received in advance
Other current liabilities
Total current liabilities
Corporate bonds
Long-term debt
Leasehold and security deposits received
Other liabilities
Total liabilities
Unitholders'equity
Unitholders'capital
Units Authorized:2,000,000units
Units Issued and outstanding:200,000units
as of October31, 2007 and April 30, 2007, respectively
Retained earnings
Unrealized gain from deferred hedge transactions
Total unitholders'equity
Total liabilities and unitholders'equity
See notes to financial statements

¥

¥

¥

¥

12,323,340
141,91047,552
58,16912,570,971

As of April30, 2007¥

8,923,063
75,125302,041
32,956
9,333,185

131,547,185
72,108,105
861,811670,095(4,622,859)
200,564,337

113,187,263
67,134,816
823,009602,585(3,230,846)
178,516,827

285,350
25,44862,997
171,775
83,112
213,763,990 ¥

285,145
30,53868,875
71,13994,969188,400,678

526,994 ¥19,500,000
1,985
1,141,333
75,60021,245,912
12,000,000
44,000,000
8,749,709
6,434
86,002,055

413,751
20,000,000
26,743916,372
87,286
21,444,152
12,000,000
56,500,000
7,578,756−
97,522,908

124,973,750

88,729,652

2,792,084(3,899)127,761,935
213,763,990 ¥

2,148,118−
90,877,770
188,400,678

Kenedix Realty Investment Corporation

STATEMENTS OF INCOME AND RETAINED EARNINGSFor the period from November 1, 2006 to April 30, 2007, and the period from May 1, 2007 to October 31, 2007
In thousands of yen

From May 1, 2007
to October 31, 2007
Operating Revenues:
Rental revenues
Profit on sale of trust beneficiary interests in real estate
Total operating revenues
Operating Expenses:
Property-related expenses
Asset management fees
Administrative service and custodian fees
Other operating expenses
Total operating expenses
Operating income
Non-Operating Expenses:
Interest expense
Financing related expense
Amortization of organization costs
Amortization of unit issuance costs
Amortization of corporate bond issuance costs
Others, net
Income before income taxes
Income taxes
Net income
Retained earnings at the beginning of period
Retained earnings at the end of period
See notes to financial statements¥¥

From November1, 2006
to April 30, 2007

7,208,246 ¥7,208,246

5,647,462
130,748
5,778,210

3,205,728
369,00972,56590,0183,737,320
3,470,926

2,607,389
306,965
66,601
110,510
3,091,465
2,686,745

595,160
24,3395,090
41,4695,878
5,925
2,793,065
1,024
2,792,041
43
2,792,084 ¥

479,926
20,595
5,090
17,785
1,501
12,9692,148,879
821
2,148,058
60
2,148,118

Kenedix Realty Investment Corporation

Statements of Changes in Unitholders’ Equity
For the period from November 1, 2006 to April 30, 2007 and the period from May 1, 2007 to October 31, 2007

(Thousands in Yen)
Unitholders' Equity
Unrealized gainfrom deferred

Balance as of November 1, 2006¥

Unitholders'

Retained

hedge

capitalearnings

transactions

88,729,652¥

2,124,112

¥

Total

79,533¥90,933,297

Changes during the fiscal period
Payment of dividends-(2,124,052)-(2,124,052)

Net income-

2,148,058-

2,148,058

Interest-rate swap--

(79,533)(79,533)-

24,006(79,533)(55,527)

Total changes during the fiscal period
Balance as of April 30, 2007¥

88,729,652¥

2,148,118¥-¥

90,877,770

Changes during the fiscal period
New unit issuance

36,244,098--

36,244,098

Payment of dividends-(2,148,074)-(2,148,074)

Net income-

2,792,041-

2,792,040

Interest-rate swap--

(3,899)(3,899)36,244,098

643,966(3,899)36,884,165

Total changes during the fiscal period
Balance as of October 31, 2007
See notes to financial statements¥

124,973,750¥

2,792,084¥(3,899)¥127,761,934

Kenedix Realty Investment Corporation

STATEMENTS OF CASH FLOWSFor the period from November 1, 2006 to April 30, 2007 and the period from May 1, 2007 to October 31, 2007
In thousands of yen

From May 1,2007
to October 31, 2007
Cash Flows from Operating Activities
Income before income taxes
Adjustments to reconcile income before income taxes
to net cash provided by operating activities
Depreciation and amortization
Interest expense
Changes in assets and liabilities:
Rental receivables
Consumption tax refundable
Trade and other payables
Rents received in advance¥

From November 1,2006
to April 30, 2007

2,793,065 ¥

2,148,879

1,465,288
595,160

1,288,871
479,926(66,786)
254,489
103,499
224,961

8,250
297,446
3,328
148,836(56,018)
5,313,658(606,962)(543)
4,706,153

1,433,571
37,0185,846,125(420,546)(924)
5,424,655

Cash Flow from Investing Activities:
Purchases of property and equipment
Proceeds from leasehold and security deposits received
Payments of leasehold and security deposits received
Payments of restricted bank deposits
Proceeds from restricted bank deposits
Others, net
Net cash used in investing activities(23,439,729)
1,779,663(599,597)(111,083)
435,530(762)(21,935,978)(31,759,821)
1,909,350(455,487)(361,623)
355,864
6,555(30,305,162)

Cash Flows from Financing Activities:
Proceeds from short-term debt
Payment of short-term debt
Proceeds from long-term debt

5,250,000(17,250,000)
2,000,000

19,500,000(14,500,000)
9,500,000

Payment of long-term debt

(3,000,000)-

Proceeds from issuance of units

36,101,994--

12,000,000

Sale of trust beneficiary interests in real estate
Others, net
Subtotal
Cash payments of interest expense
Cash payments of income taxes
Net cash provided by operating activities

Proceeds from issuance of corporate bonds
Payment of corporate bond issuance costs
Payment of dividends
Net cash provided by financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period
See notes to financial statements¥(2,147,444)
20,954,550
3,724,725
7,606,600
11,331,325 ¥(70,376)(2,120,522)
24,309,102(571,405)
8,178,005
7,606,600

Kenedix Realty Investment Corporation

Notes to Financial Statements
For the period from November 1, 2006 to April 30, 2007 and the period from May 1, 2007 to October 31, 2007

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Kenedix Realty Investment Corporation (“the Investment Corporation”) is a real estate investment corporation whose units are listed on theTokyo Stock Exchange. The Investment Corporation is engaged in ownership and operation of selected office buildings, residential and retailproperties in Japan. The Investment Corporation was incorporated as an investment corporation under the Law Concerning Investment Trusts
and Investment Corporations of Japan, or the Investment Trust Law. Pursuant to this law, the Investment Corporation is externally managed by alicensed asset management company, Kenedix REIT Management, Inc.("Asset Management Company"), a wholly-owned subsidiary of Kenedix,
Inc.(“Kenedix”)
On May 6, 2005, the Investment Corporation was originally formed with ¥200 million of initial capital contributions from Kenedix, AssetManagement Company and their executives and employees. On July 20, 2005, the Investment Corporation raised ¥41,869 million of equity
capital through an initial public offering of 75,000 investment units and was listed on the J-REIT section of the Tokyo Stock Exchange on thefollowing day.
On August 1, 2005, 29 properties with an aggregate purchase price of ¥61,083 million were acquired with additional debt proceeds of ¥23,000
million and substantial operations of the Investment Corporation were commenced from that date.
On August 16, 2005, the Investment Corporation completed third-party allotment of 3,970 investment units, generating an additional ¥2,216
million. Subsequent to that, the Investment Corporation acquired 2 additional properties in September, 2005.

During the period ended April 30,

2006, the Investment Corporation acquired 4 additional properties by utilizing internal cash and bank borrowing.
On May 1, 2006, the Investment Corporation raised ¥42,172 million of equity capital through a public offering of 73,660 investment units and 26
properties with an aggregate purchase price of ¥58,033 million were acquired with additional debt proceeds of ¥16,000 million.
On May 26, 2006, the Investment Corporation completed third-party allotment of 3,970 investment units, generating an additional ¥2,273 million.
During the period ended October 31, 2006, the Investment Corporation sold 2 properties and acquired 5 properties.
During the period ended April 30, 2007, the Investment Corporation acquired 10 additional properties by utilizing internal cash and bankborrowing, and sold 2 properties.
On March 15, 2007, the Investment Corporation issued the investment corporation bonds. Their total amounts is ¥12,000 million and term are
five years and ten years.
At October 31, 2007, the Investment Corporation had total unitholders’ capital of ¥124,974 million with 200,000 investment units outstanding.
The Investment Corporation owned a portfolio of 77 properties with total acquisition costs of ¥197,090 million containing total leasable area of
248,653 m2. The occupancy ratio was approximately 96.9%.
properties and 3 central urban retail properties.

A portfolio of 77 properties consists of 44 office buildings, 30 residential

60 properties are located in the Tokyo Metropolitan Area and 17 properties are located in Other

Regional Areas.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trust Law of Japan,
the Japanese Corporation Law, the Financial Instruments and Exchange Law 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 and disclosure
requirements of International Financial Reporting Standards or accounting principles generally accepted in the United States of America.
The accompanying financial statements are a basically 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 from the financial statements issued domestically in order to present them ina form that is more familiar to readers outside Japan.

The Investment Corporation’s fiscal period is a six-month period which ends at the end of

April and October of each year, respectively. The Investment Corporation does not prepare consolidated financial statements because it has no
subsidiaries.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(a) 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 from the date of purchase.
(b) Property and Equipment
Property and equipment are stated at cost. Depreciation of property and equipment is calculated on a straight-line basis over the estimateduseful lives of the assets ranging as stated below:
From May 1, 2007
to October 31, 2007

From November 1, 2006
to April 30, 2007

Buildings and structures ......................................................................................................

2-46 years

2-46 years

Machinery and equipment ...................................................................................................

3-17 years

3-17 years

Tools, furniture and fixtures .................................................................................................

3-15 years

3-15 years(c) Impairment of Fixed Assets
The Investment Corporation adopted “Accounting Standard for Impairment of Fixed Assets” (“Opinion on Establishment of AccountingStandard for Impairment of Fixed Assets” issued by the Business Accounting Deliberation Council in Japan on August 9, 2002) and“Implementation Guidance for the Accounting Standards for Impairments of Fixed Assets” (“Financial Accounting Guidance No. 6” issued by the
Accounting Standards Board of Japan on October 31, 2003). The Investment Corporation has not recognized an impairment loss on any of theproperties during the fiscal periods ended October 31, 2007 and April 30, 2007.
(d) Organization Costs
Organization costs are amortized over a period of five years, comprised of ten fiscal periods, with an equal amount amortized in each fiscal
period.
(e) Unit Issuance Costs
Unit issuance costs are amortized over a period of three years under the straight-line method.
(f)Corporate Bond Issuance Costs
Investment corporation bonds issuance costs are amortized over a loan 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 and throughwhich the Investment Corporation holds all of its real property, all assets and liabilities within trust are recorded in the relevant balance sheet
and income statement accounts.
(h) Revenue Recognition
Operating revenues consist of rental revenues including base rents and common area charges, and other operating revenues including utility
charge reimbursements, 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 are recorded on a gross basis and such amounts are recorded
both as revenue and expense during the fiscal period, respectively.

(i)Taxes on Property and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar

year basis. Under the Japanese tax rule, the seller of the property at the time of disposal is liable for these taxes on the property from the date ofdisposal to the end of the calendar year in which the property is disposed. The seller, however, is 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 to the period
following the purchase date of each property through the end of the calendar year.

The amounts of those allocated portions of theproperty-related taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to¥82 million and ¥101 million as of October 31, 2007 and April 30, 2007.

In subsequent calendar years, such property-related taxes are charged

as operating expenses in the fiscal period in which the installments of such taxes are paid to the relevant tax authorities.
(j)

Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets

and liabilities using the statutory tax rates.
(k) Derivative Financial Instruments
The Investment Corporation utilizes interest rate swap contracts, which are derivative financial instruments only for the purpose of hedging its
exposure to adverse fluctuations and changes in interest rates.
Derivative financial instruments are measured at fair value. For derivatives used for hedging purposes, if such derivatives qualify for deferredhedge treatment due to high correlation and effectiveness between the hedging instruments and the hedged items, gains or losses on derivatives
are deferred until maturity of the hedged transactions and are reported on the balance sheet as either assets or liabilities.
Although deferred hedge treatment is generally adopted, if the interest rate swap contracts meet the criteria for the special treatment, theInvestment Corporation has applied the special treatment to interest rate swap contracts beginning the year ended April 30, 2007 based on therevised investment Trust Law.

Under the special treatment, interest rate swaps are not remeasured at fair value, Instead, the net amount paidor received under the interest rate swap contacts is recognized and include in interest expense or income.
(l)Rounding of Amounts Presented
Amounts have been truncated in the Japanese financial statements prepared in accordance with Japanese GAAP and filed with regulatory

authorities in Japan, whereas amounts have been rounded to the nearest million in the accompanying financial statements.

Totals shown in theaccompanying financial statements do not necessarily agree with the sums of the individual amounts.

3. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consisted of the following as of October 31, 2007 and April 30, 2007:
In thousands of yen

As of October 31, 2007

As of April 30, 2007

Cash and bank deposits ...................................................................................

¥ 12,323,340¥ 8,923,063

Restricted bank deposits held in trust ..............................................................

(992,015)(1,316,463)

Cash and cash equivalents ..............................................................................

¥ 11,331,325¥ 7,606,600

Restricted bank deposits held in trust are retained for repayment of tenant leasehold and security deposits.

4. SCHEDULE OF PROPERTY
In millions of yen
As of October 31, 2007

As of April 30, 2007

Acquisition costs

Accumulated
depreciation¥ 131,547−¥ 131,547¥ 113,187

Buildings andstructures

72,108

4,335

67,773

Machinery andequipment

862

169

Tools, furnitureand fixtures

670
205,187

Land

Total

Book value

Acquisition costs

Accumulated
depreciation¥

Book value−¥ 113,187

67,135

3,026

64,109

693

823

119

704

119

551

603

86

517

4,623

¥ 200,564¥ 181,748¥ 3,231¥ 178,517

5. SHORT-TERM AND LONG-TERM DEBTS
The following summarizes short-term and long-term debt outstanding as of October 31, 2007 :(As of October 31, 2007)
Classification

Unsecuredshort-term debt

Drawdown Date

Repayment Date

Weighted-averageinterest rate

Balance(In millions of yen)March 1, 2007

February 29, 2008

1.02%

¥ 1,250

July 31, 2007

July 31, 2008

1.05%

2,000

July 31, 2007

July 31, 2008

1.02%

1,000

September 20, 2007

September 20, 2008

1.04%

1,250

October31, 2007

October 31, 2008

1.10%

1,000

Unsecured current potion ofAugust 1, 2005

July 31, 2008

0.87%

9,500

long-term debt

November 1 , 2005

October 31, 2008

1.09%

3,500

Subtotal

19,500August 1, 2005

July 31 , 2010

1.29%

9,500

December 8, 2005

December 7, 2008

1.10%

2,000

March 1, 2006

February 28, 2009

1.45%

2,000

March 16, 2006

March 16, 2009

1.48%

2,500

May 1, 2006

April 30, 2009

1.63%

6,500

May 1, 2006

April 30, 2011

2.20%

2,500

Unsecured

May 1, 2006

April 30, 2016

2.73%

5,000

long-term debt

July 14, 2006

July 13, 2011

2.15%

1,000

September 1, 2006

August 31, 2013

2.12%

3,000

December 1, 2006

November 30, 2011

1.96%

2,500

April 2, 2007

April 2, 2010

1.57%

2,000

April 2, 2007

April 2, 2012

1.88%

2,000

April 17, 2007

April 16, 2011

1.26%

1,500

October 31, 2007

October 31, 2009

1.34%

2,000

Subtotal
Corporate bonds

March 15, 2007

March 15, 2012

March 15, 2007

March 15, 2017

44,000
1.74%

9,000

2.37%

3,000

Subtotal
Total

12,000¥75,5006. UNSECURED LINE OF CREDIT
The Investment Corporation established a credit facility with a financial institution in March 2007 which provides access to an aggregate ¥ 2.5
billion on an unsecured basis.

7. PER UNIT INFORMATIONThe net asset value per unit as of October 31, 2007 and April 30, 2007 was ¥638,810 and ¥578,839. Net income per unit as of October 31,
2007 and April 30, 2007 was ¥14,334 and ¥13,681 .
The weighted average number of units outstanding of 194,772 and 157,000 was used for the computation of the amount of net income per unit
as of October 31, 2007 and April 30, 2007.

8. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 40%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements are met under the Special
Taxation Measure Law of Japan. Under this law, the Investment Corporation must meet a number of tax requirements, including a requirement it
currently distribute in excess of 90% of its taxable income for the fiscal period in order to be 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. Since the Investment Corporation distributed approximately 100% of its distributable income in the form of cash distributions
totaling 2,792 million and ¥2,148 million for the periods ended October 31, 2007 and April 30, 2007.

Such distributions were treated as

deductible distributions for purposes of corporate income taxes. The effective tax rate on the Investment Corporation’s income was 0.03% and0.04% for the periods ended October 31, 2007 and April 30, 2007.

The following summarizes the significant difference between the statutory

tax rate and the effective tax rate:
From May 1, 2007
to October 31, 2007

From November 1, 2006
to April 30, 2007

Statutory tax rate .....................................................................................................

39.39%

39.39%

Deductible cash distributions ...................................................................................

(39.37)(39.38)Other ........................................................................................................................

0.01

0.03

Effective tax rate ......................................................................................................

0.03%

0.04%

9. UNITHOLDERS’ EQUITYThe Investment Corporation issues only non-par value units in accordance with the Investment Trust Law.
price of new units is designated as stated capital.
required by the Investment Trust Law.

The entire amount of the issue

The Investment Corporation is required to maintain net assets of at least ¥50 million as10. RELATED-PARTY TRANSACTIONS(a) Transactions with Kenedix Advisors Co., Ltd. ("Kenedix Advisors")
Kenedix Advisors, a wholly-owned subsidiary of Kenedix, provides the Investment Corporation with property management services and related
services. For these services, the Investment Corporation pays Kenedix Advisors property management fees and other fees in accordance withthe terms of its Property Management Agreements. Transactions with Kenedix Advisors are as follows:
In thousands of yen

From May 1, 2007
to October 31, 2007

From November 1, 2006
to April 30, 2007

Property management fees ......................................................................................

¥ 256,842¥ 202,279

Management transfer fees .......................................................................................

10,80021,200Construction management fees ...............................................................................

40,19737,432(b) Transactions with Y.K.KWO Fourth (“KWO Fourth”)
KWO4 is a wholly owned subsidiary of Kenedix. On June 1, 2007 the Investment Corporation acquired 5 properties from KWO Fourth for¥22,000 million.

The purchase price of these properties was determined based on an independently appraised value at the time of acquisition.

11. BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES AND
PROPERTY-RELATED EXPENSES
Rental and other operating revenues and property-related expenses for the periods from May 1, 2007 to October 31, 2007 and from November
1, 2006 to April 30, 2007 consist of the following:
In thousands of yen
From May 1, 2007
to October 31, 2007

From November 1, 2006
to April 30, 2007

Rental and other operating revenues:
Rental revenues .................................................................................................

¥

5,336,255¥

4,234,864

Common area charges ......................................................................................

998,453

730,439

Subtotal ........................................................................................................

6,334,708

4,965,303

222,255

182,047

Others:Parking space rental revenues ...........................................................................
Utility charge reimbursement ..............................................................................

476,613274,748

Miscellaneous ....................................................................................................

174,670

225,364

Subtotal ........................................................................................................

873,538

Total rental and other operating revenues ...............................................................

¥

Property management fees and facility management fees .....................................

¥

Depreciation ............................................................................................................

682,159

7,208,246¥

704,418¥

5,647,462
571,266

1,392,013

1,243,900

Utilities .....................................................................................................................

454,313275,900

Taxes .......................................................................................................................

329,928

206,872

Insurance .................................................................................................................

17,21914,701

Repairs and maintenance .......................................................................................

119,71089,964

Trust fees .................................................................................................................

55,386

46,396

Others ......................................................................................................................

132,741

158,390

Total property-related expenses ..............................................................................

¥

3,205,728¥

2,607,389

12. LEASESThe Investment Corporation, as lessor, has entered into leases whose fixed monthly rents are due in advance with lease term of generally two
years for office buildings and residential properties and with lease term ranging from two to ten years for retail properties.

The future minimum

rental revenues under existing non-cancelable operating leases as of October 31, 2007 and April 30, 2007 are as follows:
In thousands of yen
As of October 31, 2007

As of April 30, 2007¥¥

Due within one year .................................................................................................
Due after one year ...................................................................................................
Total ................................................................................................................

¥

1,561,805

1,266,446

10,516,248

9,741,832

12,078,054¥ 11,008,278

13. DERIVATIVES AND HEDGE ACCOUNTINGThe Investment Corporation has entered into interest rate swap agreements with several Japanese financial institutions to hedge its variable
rate long-term debt obligations. The Investment Corporation utilizes interest rate swap contracts, which are derivative financial instruments, only
for the purpose of mitigating future risks of fluctuations of interest rates, but does not enter into such transactions for speculative or trading
purposes. The Investment Corporation entered into such derivative transactions to hedge interest rate risk in accordance with its Articles ofIncorporation and the established risk management policies of the Asset Management Company.
The following summarizes the notional principal amounts and the estimated unrealized loss from interest rate swap contacts as of October 31,
2007.
The estimated unrealized loss does not include the interest rate swap contracts that met the criteria for the special treatment.
(As of October 31, 2007)
Type
Interest-rate swap:
Fixed rate payable and floating rate receivable

Notional amount¥45,300 million

Unrealized loss
¥ (6 million)

14. PROPERTY INFORMATION
Details of the property portfolio as of October 31, 2007 were as follows:
Type

Office Buildings

Location
Number of properties

Residential Properties

Central Urban RetailTokyo
Metropolitan
Area

Other
Regional
Areas

Tokyo
Metropolitan
Area

Other
Regional
Areas

Tokyo
Metropolitan
Area

Other
Regional
Areas

36

8

22

8

2

1

¥ 116,654¥ 21,325

Property information(In millions of yen)
Acquisition price
Percentage of total acquisition costs¥ 33,481¥ 9,571¥ 12,380¥ 3,680

59.2%

10.8%

17.0%

4.9%

6.3%

1.9%

Net book value

119,088

21,32333,899

9,998

12,863

3,679

Appraisal value at year end

133,938

22,11034,702

9,646

14,440

3,810

61.3

10.1

15.9

4.4

6.6

1.7

4,238,851

980,450

1,084,938

383,989

411,922108,000

3,750,764

798,944996,510354,084

326,652

108,000

Percentage of total appraisal value
Financial results for the period ended October(In thousands of yen)
Rental and other operating revenues
Rental revenues
Other revenues

488,087

181,506

88,42829,90585,270-1,072,853

312,517

216,214107,144

95,192

8,381

Property management fees

393,484

159,271

84,15435,426

27,737

4,347

Taxes

210,242

38,42132,721

24,844

19,666

2,725

Utilities

304,875

85,63027,155

6,880

29,773-

Repairs and maintenance

64,186

11,27225,37817,615

1,170-

Property-related expenses

Insurance

7,971

4,450

2,756

1,504

429

109

Trust fees and other expenses

92,095

13,47344,05020,875

16,417

1,200

NOI (Net Operating Income)Depreciation expenses
Operating income from property leasing

3,165,998

667,933

868,724

276,845

316,730

99,619708,771

227,845

272,131

99,89973,5129,856

2,457,227

440,088596,593

176,946

243,218

89,763

Capital expenditures

972,457

143,567

12,72689,72918,594-

NCF (Net Cash Flow)

2,193,541

524,366

855,998

187,116

298,136

99,619A breakdown of property-type as of October 31, 2007 was as follows:
Property type

Area

Balance at the end of period(In millions of yen)

Tokyo Metropolitan Area

Office Buildings

Other Regional Areas

55.7

21,323

10.0
65.7

Tokyo Metropolitan Area

33,89915.8

Other Regional Areas

9,998

4.7

43,897

20.5

Tokyo Metropolitan Area

12,863

6.0

Other Regional Areas

3,679

1.7

16,542

7.7

Subtotal
Central Urban Retail Properties¥ 119,088
140,411

Subtotal
Residential Properties

Percentage of
total assets

Subtotal
Total

200,850

93.4

Bank deposits and other assets

12,914

6.0

Total assets

213,764

100.0

Total liabilities

86,002

40.2

127,762

59.8

Net assets¥