KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED April 30, 2016 (REIT)(November 1, 2015 to April 30, 2016)
Kenedix Office Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
Representative:

June 13, 2016

Naokatsu Uchida, Executive Director

Asset Management Company: Kenedix Real Estate Fund Management, Inc.
Representative:

Ryosuke Homma, CEO and President

Inquiries:

Hikaru Teramato, General Manager of Planning Department, Office REIT Division
TEL +81-3-5623-8979

Planned submission of semiannual securities report: July 28, 2016

Planned start of distribution payments: July 13, 2016

Preparing presentation material:

Yes･NoHold a financial brief meeting:Yes･No (for institutional investors and analysts)

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED April 30, 2016 (November 1, 2015 to April 30, 2016)(1) Business Results(Amounts are rounded down to the nearest one million yen.)(% indications are increase-decrease rate of period-over-period.)
Operating Revenues

Operating Income

Ordinary Income

Net Income

For the six months ended

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

April 30, 2016

14,362

4.5

6,102

2.7

4,816

5.5

4,815

5.5

October 31, 2015

13,740

(2.8)

5,940

(9.1)

4,565

(10.7)

4,564(10.7)Net Income per unit

Return on Unitholders’ Equity

Ordinary Income toOperating Revenues

Ordinary Income to Total Assets

For the six months ended

Yen

%

%

%

April 30, 2016

11,892

2.3

1.2

33.5

October 31, 2015

11,273

2.2

1.1

33.2

(2) Distribution(Total distributions are rounded down to the nearest one million yen.)
Distributions per Unit
(Excluding Excess of
Earnings)

Total Distributions(Excluding Excess of
Earnings)

Distributions in Excessof Earnings per Unit

Total Distributions in
Excess of Earnings

For the six months ended

Yen

Millions of Yen

Yen

Millions of Yen%%

April 30, 2016

10,707

4,335

0

0

90.0

2.0

October 31, 2015

10,300

4,170

0

0

91.4

2.0

Distribution Ratio to
Unitholders’ Equity

Payout Ratio

Note 1: Distributions per unit for the fiscal period ended October 31, 2015 is calculated by dividing the amount remaining after deducting provision of reserve for reduction entry (¥394
million) from unappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distributions per unit and net income per unit
is due to this calculation.
Note 2: Distributions per unit for the fiscal period ended April 30, 2016 is calculated by dividing the amount remaining after deducting provision of reserve for reduction entry (¥480 million)
from unappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distributions per unit and net income per unit is due tothis calculation.

(3) Financial Position(Total assets and unitholders’ equity are rounded down to the nearest one million yen.)
Total Assets

Unitholders’ Equity

Unitholders’ Equity to Total Assets

Unitholders’ Equity per Unit

For the six months ended

Millions of Yen

Millions of Yen%

Yen

April 30, 2016

408,813

212,555

52.0

524,977

October 31, 2015

407,217

211,91452.0

523,394(4) Cash Flow Position
Cash Flows fromOperating Activities(Amounts are rounded down to the nearest one million yen.)
Cash Flows from
Cash and Cash Equivalents
Financing Activities
at Period End

Cash Flows from
Investing Activities

For the six months ended

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

April 30, 2016

21,248(20,654)(3,179)19,175October 31, 201512,244(9,109)(5,099)21,760This notice is an English-language translation of the original Japanese announcement on our web site released on June 13, 2016. However, no assurance or warranties are given with respect tothe accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

2．FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING October 31, 2016 (May 1, 2016 to October 31, 2016)
Operating Revenues(Millions of Yen)
For the six months ending

October 31, 2016

Operating Income(Millions of Yen)%

13,280(7.5)

Ordinary Income(Millions of Yen)
%

5,491

(10.0)Net Income(Millions of Yen)
%

4,286

(% change from the previous fiscal period)
Distributions perDistributions in
Unit (Excluding
Excess of Earnings
Excess of Earnings)
per Unit(11.0)

4,285

%

Yen

Yen

(11.0)

10,9200(Reference) Estimated net income per unit for the fiscal period ending October 31, 2016: ¥10,583
Forecasted number of investment units issued and outstanding as of October 31, 2016: 404,885 units
Forecasted average number of investment units during the fiscal period ending October 31, 2016: 404,885 units
Note: Distributions per unit for the fiscal period ending October 31, 2016 is calculated based on distributions of the amount of the reversal of reserve for reduction entry (¥136 million) added
Net Income.

*OTHER(1) Changes in Accounting Policies・Changes in Accounting Estimate・Retrospective Restatement(a) Changes concerning accounting policy accompanying amendments to accounting standards: No(b) Changes other than (a): No(c) Changes in accounting estimate: No(d) Retrospective restatement: No(2) Number of Investment Units Issued and Outstanding (including treasury units)(a) Number of investment units issued and outstanding at period end (including treasury units)
As of April 30, 2016: 404,885 units
As of October 31, 2015: 404,885 units(b) Number of treasury units at period end
As of April 30, 2016: 0 units
As of October 31, 2015: 0 units
Note: Please refer to page 25 “Notes on the Information per Unit” for the calculation of net income per unit.

*Details concerning actual status of auditing procedures
As of the disclosure of this financial report, auditing procedures for financial statements based on the Financial Instruments and Exchange Law areunderway.
*Explanation on the appropriate use of the forecast of results and other matters of special consideration
Readers are advised that actual operating revenues, operating income, ordinary income, net income and distributions per unit may differ significantly
from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of the forecast distributions per unit.
Please refer to page 10 “Preconditions and Assumptions for the Twenty-third Fiscal Period Ending October 31, 2016” for the precondition of forecast
for the twenty-third fiscal period ending October 31, 2016.

This notice is an English-language translation of the original Japanese announcement on our web site released on June 13, 2016. However, no assurance or warranties are given with respect tothe accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

1. Basic Structure — Overview of Companies Related to the Investment Corporation
Basic structure as of June 13, 2016 is as follows.
Asset Custodian /Administrative Agent

Investment Corporation

Lenders(Operating of the Administrative Instruments)④

Sumitomo Mitsui Baking Corporation

Mizuho Trust & Banking Co., Ltd.

Kenedix Office Investment Corporation

Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited

General Meeting of Unitholders

Administrative Agent

Aozora Bank, Ltd.

(Accounting Business)

Mitsubishi UFJ Trust and Banking
Corporation

Resona Bank, Limited⑤

Mitsubishi UFJ Trust and Banking Corporation

Board of Directors

Mizuho Bank, Ltd.
Executive Director :Supervisory :Supervisory :Supervisory :Administrator for Unitholder’s Register
Administrator for Special AccountNaokatsu Uchida
Shiro Toba
Yoshihiro Morishima
Takahiro Seki

Mizuho Trust & Banking Co., Ltd.
The Bank of Fukuoka, Ltd.
The Nishi-Nippon City Bank, Ltd.

③⑧⑥

The Hiroshima Bank, Ltd.
The 77 Bank, Ltd.
The Higashi-Nippon Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited

Accounting Auditor

The Mie Bank, Ltd.

Ernst & Young ShinNihon LLC

Administrative Agent for
Investment Corporation Bond
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited

⑦

②

①

Property Management Company

Asset Management Company

Kenedix Property Management, Inc.

Kenedix Real Estate Fund Management, Inc.

①
②
③
④
⑤
⑥
⑦
⑧

Support-Line Company③⑧

Kenedix, Inc. (Note)

Asset Management Agreement
Property Management Agreement
Support-Line Memorandum of Understanding
Asset Custodian Agreement / Administrative Agency Agreement (Operating of the Administrative Instruments)
Administrative Agency Agreement (Accounting Business)
Unitholder Register Administrative Agency Agreement / Special Account Administrative Agency Agreement
Fiscal Agency Agreement
Trademark License Agreement(Note) The specified related company of the Investment Corporation (referring to the specified related company stipulated in Article 12, paragraph 3 of the Cabinet
Office Ordinance on Disclosure of Information, etc. on Specified Securities (Ordinance of the Ministry of Finance No. 22 of the year 1993, including
amendments thereafter)) is Kenedix, Inc. Kenedix, Inc. is the parent company (referring to the parent company stipulated in Article 8, paragraph 3 ofOrdinance on Terminology, Forms, and Preparation Methods of Financial Statements, etc. (Ordinance of the Ministry of Finance No.59 of the year 1963,
including amendments thereafter)) of the Asset Management Company.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

2. Management Policy and Operating Conditions(1) Management Policy
There were no major changes to the “Investment Policy,” “Investment Strategy” and “Distribution Policy” from the most recent securities report(submitted on January 29, 2016), and accordingly this information has been omitted from this document.
(2) Operating Conditions① Operating Conditions for the Twenty-second Fiscal Period (fiscal period ended April 30, 2016)
A. The Investment Corporation
Kenedix Office Investment Corporation (“the Investment Corporation”) was established on May 6, 2005 in accordance with the Investment
Trust and Investment Corporation Law (Law No. 198 of the year 1951, including amendments thereafter). On July 21, 2005, the Investment
Corporation was listed on the Real Estate Investment Trust Market of the Tokyo Stock Exchange, Inc. (“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 public offerings and including seven global offerings. As a result, as of April 30, 2016, the end of the twenty-second fiscal period, thenumber of investment units issued and outstanding totaled 404,885 units.
The Investment Corporation appointed Kenedix Real Estate Fund Management, Inc. (“the Asset management Company”) as our asset
manager. In collaboration with the Asset Management Company, the Investment Corporation strives to maximize cash distribution toinvestors by securing stable earnings and sustainable investment growth. To this end, the Investment Corporation adopts the basic policy of
conducting flexible and dynamic investment stance that seeks to respond to its environment and market trends, and endeavors to ensure atimely response to opportunities.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review (fiscal period ended April 30, 2016), the Japanese economy continued to be on a mild recovery trend
although individual consumption lacked strength as corporations took a cautious stance towards capital investment against the backdrop of
the ongoing appreciation of the yen, etc.
Concerning the office leasing market, demand for relocations for expanded floor area and better location choice continued to be strong in thefive central wards of Tokyo, leading to the steady improvement of the average vacancy rate and the rent level. Moreover, the averagevacancy rate of major cities across Japan continued to show an improving trend.
In the office building transaction market, domestic investors such as listed J-REITs and real estate companies, overseas investors and suchcontinued to show a strong appetite for property acquisitions. Due partially to such intensifying competition, a decrease in cap rates and anincrease in transaction prices further progressed.
(b) Management Performance
As of the end of the previous fiscal period (fiscal period ended October 31, 2015), the Investment Corporation owned 97 properties (with a
total acquisition price of ¥388,371 million) and equity interest in a Japanese silent partnership (tokumei kumiai) (“TK”) (acquisition price of¥1,107 million). During the fiscal period under review (fiscal period ended April 30, 2016), the Investment Corporation acquired two officebuildings (Nichigin-mae KD Building: acquisition price of ¥3,500 million, Nittochi Toranomon Building: acquisition price of ¥15,550
million) and, sold KDX Toranomon Building (initial acquisition price of ¥4,400 million), Toranomon Toyo Building (initial acquisition priceof ¥9,850 million) (with a total disposition price of ¥15,420 million).
As a result, the number of properties owned as of April 30, 2016 (excluding the TK interest, same applies below.) amounts to 97 (with a totalacquisition price of ¥393,171 million). Looking at the portfolio as a whole, 92.3% was comprised of office buildings, 5.6% of central urban
retail properties, 1.4% of residential properties and 0.7% of other property on an acquisition price basis. The occupancy ratio as of the end of
the twenty-second fiscal period (fiscal period ended April 30, 2016) considerably increased by 2.0 point to 96.9%.
Operation and Management of Existing Properties
The Investment Corporation entrusts property management services (“PM Services”) for its entire portfolio as of the end of the fiscal period
under review (fiscal period ended April 30, 2016) (excluding Shinjuku 6-chome Building (Land)) to Kenedix Property Management, Inc.
By doing so, the Investment Corporation has strived to unify policies, specifications, procedures, points of contact, etc. for the provision ofswift and quality services in the operation and management of properties.
In terms of leasing, in light of the recovery trends of the economy and real estate market, the Investment Corporation sought out potential
demand by maintaining close relationships with brokers. Moreover, in order to maintain and raise the competitiveness of office buildings,
upgrading of air conditioning systems and repair of common areas, etc. were implemented according to plan.
Consequently, as of the end of the period under review (fiscal period ended April 30, 2016), the occupancy ratio of the Investment
Corporation’s owned office buildings in the Tokyo Metropolitan Area stood at 96.4% and for the Investment Corporation’s office buildings
overall stood at 96.8%, a significant increase of 2.1 point from the end of the previous fiscal period (fiscal period ended October 31, 2015).
The Investment Corporation proactively negotiated with the tenants that pay rents lower than market rent level among tenants reaching rent
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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

revision period for upward rent revisions, achieved performances in terms of the number of cases and the difference in amounts of upward
rent revisions more than the previous fiscal period.
Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for our office buildings was 1,105 (Note 1) (Note 2) as of the end of the fiscal period (fiscal period ended April
30, 2016) and diversifying tenant’s stratum further. Furthermore, floor area leased to the top 10 office end-tenants as a proportion of totalleased floor area of the total portfolio was 8.5%. In addition, tenants of office buildings are in various sectors. As a result, we believe theimpact by a certain end-tenant vacating the property or sluggish performance in certain sectors would have a relatively limited effect and will
be able to maintain stable revenue.
Note 1: When a tenant is leasing more than one property, it is counted as one tenant and the number of tenants is indicated accordingly.
Note 2: The number of end-tenants for entire portfolio is 1,132 as of the end of the fiscal period (fiscal period ended April 30, 2016).

C. Capital Financing(a) Investment Corporation Bonds
The Investment Corporation issued the Seventh Series Unsecured Investment Corporation Bonds (totaling ¥1,000 million and maturing in
twelve years) on April 28, 2016, and used as a source of funds for the repayment of a portion of borrowings with repayment date of April 28,
2016. As a result, the outstanding investment corporation bonds as of the end of the fiscal period under review (fiscal period ended April 30,2016) totaled ¥9,300 million.
(b) Status of Borrowings
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates for its interest-bearing debt.
During the fiscal period under review (fiscal period ended April 30, 2016), the Investment Corporation undertook new borrowings of ¥18,800
million and issued the Seventh Series Unsecured Investment Corporation Bonds (totaling ¥1,000 million) for the funds to repay borrowings of¥19,800 million that matured during the fiscal period. Also, the Investment Corporation undertook new borrowings of ¥1,000 million at thetime of the property acquisition. As a result, the balance of interest-bearing debt as of April 30, 2016 is comprising ¥165,800 million inborrowings (¥2,500 million in short-term borrowings (Note 1) and ¥163,300 million in long-term borrowings (Note 1)) and ¥9,300 million in
investment corporation bonds, and interest-bearing debt ratio is 42.8%. (Note 2)
Furthermore, as of the end of fiscal period under review (fiscal period ended April 30, 2016), ¥110,350 million out of ¥114,350 million of
long-term borrowings, which have floating interest rates, have been hedged and practically fixed by utilizing interest-rate swap agreements, etc.
In addition, the long-term debt ratio (Note 3) was 98.6% and the long-term fixed interest debt ratio (Note 4) was 96.3%.
In addition, the Investment Corporation lengthened the average remaining term of its interest-bearing debt (Note 5), the weighted averagebased on the balance of interest-bearing debt at the end of each period, from 3.1 years at the end of the eighteenth fiscal period (fiscal period
ended April 30, 2014) to 4.7 years at the end of the fiscal period under review (fiscal period ended April 30, 2016). Furthermore, the averageinterest rate (Note 5) was reduced from 1.65% to 1.25% during the same period, demonstrating a steady reduction of financial costs.
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date. However,the borrowings whose period until repayment date have surpassed one year because the repayment date one year from the drawdown date is not abusiness day and for which the repayment date has been moved to the following business day are included in short-term borrowings. Long-termborrowings refer to borrowings with a period of more than one year from the drawdown date to the repayment date. The same classification criteria
apply to other borrowings listed below.
Note 2: Interest-bearing debt ratio = Balance of Interest-bearing debt at the end of fiscal period / Total assets at the end of fiscal period ×100
Note 3: Long-term debt ratio= (Balance of long-term borrowings + Balance of investment corporation bonds) / (Total borrowings + Balance of investment
corporation bonds) ×100
Long-term debt ratio is rounded to the nearest first decimal place.
Note 4: Long-term fixed interest debt ratio = (Balance of long-term fixed interest rate borrowings + Balance of investment corporation bonds) / (Total
borrowings + Balance of investment corporation bonds) ×100
The balance of long-term fixed interest rate borrowings includes long-term borrowings with floating interest rates effectively fixed by utilizing
interest-rate swap agreements and excludes long-term borrowings hedged by interest-rate cap agreements. Long-term fixed interest debt ratio isrounded to the nearest first decimal place.
Note 5: Average remaining terms and average interest rates are the weighted average of the period-end remaining terms and interest rates including upfront
fees based on the balance of interest-bearing debt. Average remaining terms are rounded to the nearest first decimal place and average interest rates
are rounded to the nearest second decimal place respectively.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

The balances of borrowings according to financial institutions as of October 31, 2015 and April 30, 2016 are as follows:
End of Twenty-first
End of Twenty-second
Ratio as of the End
Fiscal Period
Fiscal Periodof Twenty- second
Lender(as of October 31, 2015)(as of April 30, 2016)
Fiscal Period(Millions of Yen)
(Millions of Yen)(%) (Note 6)
Sumitomo Mitsui Banking Corporation
44,300.044,300.0
Development Bank of Japan Inc.
29,050.0
28,050.0
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
22,800.0
22,800.0
Sumitomo Mitsui Trust Bank, Limited
18,100.0
19,100.0
Aozora Bank, Ltd.
15,600.0
14,600.0
Resona Bank, Limited
9,250.0
10,250.0
Mitsubishi UFJ Trust and Banking Corporation
10,200.0
10,200.0
Mizuho Bank, Ltd.
6,200.0
6,200.0
Mizuho Trust & Banking Co., Ltd.
2,800.02,800.0
The Bank of Fukuoka, Ltd.
2,500.02,500.0
The Nishi-Nippon City Bank, Ltd.
1,700.0
1,700.0
The Hiroshima Bank, Ltd
1,000.0
1,000.0
The 77 Bank, Ltd
1,000.0
1,000.0
The Higashi-Nippon Bank, Limited
800.0
800.0
The Mie Bank, Ltd
500.0
500.0
Total
165,800.0
165,800.0
Note 6: Percentages as of the end of the fiscal period under review are rounded to the first decimal place.

26.7%
16.9%
13.8%
11.5%
8.8%
6.2%
6.2%
3.7%
1.7%
1.5%
1.0%
0.6%
0.6%
0.5%
0.3%
100.0%(c) Status of Credit Rating
The status of the credit ratings as of April 30, 2016 is as follows:
Credit Rating Agency
Details of the Ratings
Long-Term Issuer Rating
A+ (Outlook: Positive)
Japan Credit Rating Agency, Ltd. (JCR)
Ratings on Bonds
A+
Preliminary Rating of Shelf Registration(d) Status of Shelf Registration
The Investment Corporation filed a shelf registration statement for investment corporation bonds on February 6, 2015.
Details are as follows.
Planned Issue Amount¥100,000,000,000
Planned Issuance Period February 15, 2015 to February 14, 2017
Acquisition funds for specified assets, repayment of borrowings, repayment of
Use of Funds
investment corporation bonds, refund of lease and guarantee deposits, funds to pay for repairs andmaintenance, working capital, etc.
The Seventh Series Unsecured Investment Corporation Bonds of ¥1,000 million was issued based on the above shelf registration on
April 28, 2016.
D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥14,362 million,
operating income of ¥6,102 million, ordinary income of ¥4,816 million and net income of ¥4,815 million for its twenty-second fiscal period(fiscal period ended April 30, 2016).
Cash distributions are paid out to the application of Article 67-15 of the Special Taxation Measures Law (Law No. 26 of the year 1957,
including amendments thereafter). In addition, the Investment Corporation has decided to book a portion of its unappropriated retained
earnings to internal reserve as a reserve for reduction entry based on application of the “Special Provisions for Taxation in the Event ofAdvance Acquisition of Land, etc. in 2009 and 2010” (Article 66-2 of the Special Taxation Measures Law) in the fiscal period under review.
In accordance with this policy, the Investment Corporation deducted ¥480 million from net income to be set aside as a reserve for reduction
entry, the posting of which falls within the scope in application of provisions in Article 66-2 and Article 67-15 of the Special Taxation
Measures Law. Subsequently, the distributions per unit resulted in ¥10,707.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)② Outlook for next fiscal period
A. Investment Environment
Regarding the outlook for the Japanese economy, a mild recovery trend is expected to continue as the real GDP for January to March 2016
(The First Preliminary Estimates) turned positive growth.
Concerning the office building leasing market, the average vacancy rate in Tokyo’s five central wards at the end of April 2016 announced by
Miki Shoji Co., Ltd. was 4.23%, down 1.11 point year-on-year. Down 0.23 point compared with the end of the previous fiscal period (fiscal
period ended October 31, 2015), improvement in the average vacancy rate continues. In addition, the average rent in Tokyo’s five central
wards (including newly-built office buildings) has maintained an increasing trend.
In the office building transaction market, although some point out the overheated state, transaction prices are forecasted to continue
increasing with investors such as listed J-REITs, domestic real estate companies and foreign investors bearing yet a strong appetite foracquisition, backed by the introduction of the negative interest rate, the robust leasing market and the favorable financing environment.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting flexible and dynamic investment stance that seeks to respond to its
environment and market trends, and endeavors to ensure a timely response to opportunities. Based on this policy, the Investment
Corporation creates a property investment strategy, management strategy for existing properties, and financial strategy as set forth below andimplements them in a flexible and dynamic manner.
(a) Investment Strategy for New Properties and Sales Policy
The Investment Corporation aims for further expansion of its asset size, with the goal of “forming a firm portfolio focusing on mid-sized
office buildings” and to become the “No. 1 J-REIT for mid-sized office buildings.” The Investment Corporation will keep mid-sized officebuildings in the Tokyo Metropolitan Area as its focus, and with regard to central urban retail properties, invest only in those that have rarevalue as an alternative to office buildings, are located in busy commercial areas and offer a certain amount of office space. In addition, theInvestment Corporation believes that maintaining an investment strategy which aims for a certain degree of regional diversification, will be afoundation for constructing a superior portfolio and differentiating the Investment Corporation from others in the business.
Moreover, when acquiring assets, the Investment Corporation will aim for the stable growth of the portfolio, by securing continuous
opportunities for acquiring properties and flexible acquisition methods by utilizing the Asset Management Company’s own networks andthe sponsor company’s support line through building multiple pipelines. Also, based on the premises of that the Investment Corporation able
to obtain opportunities for property acquisitions in the future, the Investment Corporation might invest in TK interests etc. with the sponsor
company on a conjoint basis. In addition, in order to seek diversifying acquisition methods (direct acquisition, equity investment andco-acquisition with the sponsor company), with consideration to the timing or the consistency of the investment principles and to secure
mobilizing acquisition of properties, the investment company invests in warehousing related TMK etc. with the sponsor company
cooperation. In selling properties, the Investment Corporation will examine the sale of properties individually in considering the use of funds
for replacement of assets through new property acquisition or fund-type investments. Of this, concerning residential properties, theInvestment Corporation will not only refrain from conducting new investments in principle, but will also place such properties on the top of
the list of properties to sell while taking into consideration the market environment, asset size and other factors. On the other hand, theInvestment Corporation will decide on the sale of office buildings and central urban retail properties individually by considering the current
profitability, revenue projections that take into account future market trends, building age, area and property size, among other factors, andalso in light of the significance of the property’s presence in the portfolio.
(b) Management Strategy for Existing Properties
Taking into consideration economic and real estate market trends, the Investment Corporation adopts “a tenant-oriented approach which willlead to revenue” for its leasing activities with aims of ensuring a timely and flexible response as well as optimizing tenant satisfaction.
Accordingly, the Investment Corporation seeks to aim to maintain / increase cash flow by offering office environments with high tenantsatisfaction. Based on the aforementioned in aim to become “the mid-sized office building of the choice,” the Asset Management Company
undertakes asset management activities as follows:・Take measures to maintain and raise competitiveness of properties
・Tailor leasing management according to the market environment
・Apply careful control of management and operating costs by taking advantage of portfolio size
・Ensure appropriate response to relevant laws and regulations
・Develop a proactive response to environmental issues
Take measures to maintain and raise competitiveness of properties
The Investment Corporation will implement operation and management in close contact with the actual properties and further enhance themanagement level. Some specific examples of the operation and management are the installation of automated external defibrillators(AEDs) and service delivery of public wireless LAN in consideration of business continuity plans (BCP) and its corporate social-7-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

responsibilities (CSR).
Furthermore, tenants at properties are positioned as important “customers” and the perspective of customer satisfaction (CS) is applied to the
management of properties. The Investment Corporation has conducted CS surveys targeting the tenants of its office buildings six times incooperation with J.D. Power Asia Pacific, Inc., an internationally recognized company that engages in customer satisfaction evaluation(requesting those in charge of general affairs and employees of tenants to complete a questionnaire on the hard aspects such as the building
and facilities as well as on the soft aspects such as management and operation, consisting of multiple items for evaluation and open-ended
questions). The comprehensive satisfaction rating results for the Sixth CS survey conducted in August 2015 is as follows.
The response of “Satisfied”, “Slightly Satisfied” remains high level nearly equivalent to the Fifth CS Survey conducted in August 2013.
＜Comprehensive Satisfaction Rating＞ (Note 1) (Note 2)
Slightly
Slightly
Satisfied
Neither
Dissatisfied
Unknown
Satisfied
Dissatisfied
Sixth CS Survey
24%
51%
18%
6%
1%
1%
Fifth CS Survey
26%
51%
18%
4%
1%
1%
Note 1: Target respondents for the survey are the administration officers of each tenant and tenant employees.
Note 2: Ratios are rounded to the nearest unit.

By conducting such surveys continuously and meeting tenant needs, the Investment Corporation is aiming to improve customer satisfaction
while also maintaining and improving the competitiveness and asset value of its properties, and to further enhance profitability.
Tailor leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary investment target of the Investment Corporation, are that tenant
turnover ratios are relatively high. Therefore, in the leasing aspect, the Investment Corporation implements leasing activities in a timely andflexible manner by adopting the basic policy of endeavoring to maximize revenues for the medium- to long-term through maintaining
occupancy ratios, while taking into account economic and real estate market trends.
Concerning the solicitation of new tenants, the Investment Corporation strives to shorten the period of vacancy and boost the occupancy
ratio by implementing flexible and dynamic leasing activities through sharing information closely with leasing brokers, holding of previews,
marketing directly to corporations, utilizing guarantee companies and other measures while closely watching market conditions and timingof changes going forward.
Apply careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation will carefully control the quality of property management and reduce building maintenance and operating costsby taking advantage of the portfolio size in building maintenance costs, construction bidding and procurement of facilities and equipments,
etc. via bulk orders.
Ensure appropriate responses to relevant laws and regulations
The Investment Corporation will gather information on the Building Standards Law (Law No. 201 of the year 1950, including amendments
thereafter) and other relevant laws and regulations and any future revisions, in a timely manner and will respond as necessary whileconsidering compliance.
Develop a proactive response to environmental issues
The Investment Corporation is designated as a specified corporation pursuant to the Act on the Rational Use of Energy. The Investment
Corporation will research on energy saving and environmental friendliness of mid-sized office buildings, develop medium- to long-term
energy saving plans and reduction targets, and proactively institute measures in terms of both hardware (buildings and facilities) and soft
services (operating and management services) in an aim to ensure the simultaneous pursuit of return on investment and social benefits.
Furthermore, the Investment Corporation will proactively participate in GRESB Survey and engage in efforts for various certification andrating systems such as DBJ Green Building Certification.
(c) Financial Strategy (Debt Financing)
As the environment for procuring interest-bearing debt remains favorable, the Investment Corporation continuously strives to improve theterms and conditions of existing borrowings.
In addition, by taking the following measures, etc., the Investment Corporation aims for stable financial management.
・Reduce refinance risks by diversifying maturities of interest-bearing debts
・Have the procurement ratio of long-term fixed interest borrowings above a certain level・Control the interest-bearing debt ratio (Note) in a conservative manner (the Investment Corporation will aim to keep the interest-bearing
debt ratio to total assets (LTV) at less than 45% level as a rule. However, it will also remain open to the option of increasing LTV to the-8-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

upper 40% level in the event of debt financing conducted for the purpose of acquiring competitive properties or otherwise.)Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial
institutions, especially mega-banks, trust banks and Development Bank of Japan Inc., as well as aim for more conservative financial
management. In addition, the Investment Corporation aspires to pay attention to the share of each bank and consider as appropriate theintroduction of transactions with new banks based on comparison with the conditions with currently transacting banks.
Note: Interest-bearing debt ratio = Balance of interest-bearing debt at the end of fiscal period / Total assets at the end of fiscal period×100(d) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aim ofpromptly providing a wide range of relevant information to investors, and make revisions to the information disclosure system when needed.
In specific terms, the Investment Corporation provides information through the Timely Disclosure Network System (TDnet), which is asystem operated by the Tokyo Stock Exchange, as well as press releases and its Web site (URL: http://www.kdo-reit.com/en/ ).
(3) Important Subsequent Events
Not applicable(4) Risk Factors
There are no significant changes to the “Investment Risks” as described in the Securities Report (including any amendments thereto) submitted
January 29, 2016.
(5) Outlook
Forecasts for the twenty-third fiscal period (May 1, 2016 to October 31, 2016) are presented as follows.
Operating Revenues¥13,280 million
Operating Income¥5,491 million
Ordinary Income¥4,286 million
Net Income¥4,285 million
Distributions per Unit
¥10,920
For preconditions and assumptions of the outlook, please see following “Preconditions and Assumptions for the Twenty-third Fiscal PeriodEnding October 31, 2016”.
Note: Forecast figures above are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income and distribution per unit
may differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does not guarantee payment of the forecasted
distribution per unit.

-9-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Preconditions and Assumptions for the Twenty-third Fiscal Period Ending October 31, 2016
Preconditions and Assumptions
Calculation Period The twenty-third fiscal period: May 1, 2016 to October 31, 2016 (184 days) The number of real estate and trust beneficiary interests in real estate held by the Investment Corporation as of June
13, 2016 is 97 properties.
 Forecasts are based on the assumption that the number of properties will remain unchanged (no sale or acquisition of
Property Portfolio
new properties, etc.) until the end of the twenty-third fiscal period.
 The Investment Corporation also holds the TK equity other than above. It assumes the refund of the TK equity will
not occur by the end of the twenty-third fiscal period.
 The actual results may fluctuate due to changes in the property portfolio.
 Rental revenues are estimated based on valid leasing agreements as of June 13, 2016 and by considering variablefactors, such as seasonal factors against the backdrop of historical performance, as well as leasing conditions, such as
the recent real estate market conditions, in addition to the difference in number of operating days due to movements
Operating Revenues
in existing investment assets.
 Dividends received of ¥48 million have been assumed with regard to the TK equity stated in the above “Property
Portfolio”.
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments from tenants.
 Expenses related to rent business other than depreciation are based on the historic expenses, adjusted to reflect
expense variables including seasonal factors.
 An amount of ¥1,269 million has been assumed for property management fees and facility management fees
(property management and building maintenance fees, etc.).
 An amount of ¥1,111 million has been assumed for taxes and public dues (property tax and city-planning tax, etc.).
 An amount of ¥2,268 million has been assumed for depreciation expense.
 An amount of ¥484 million has been assumed for repairs, maintenance and renovation expenses.
Operating Expenses
Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by the AssetManagement Company for each property and amounts considered essential for the period. Actual repairs,
maintenance and renovation expenses for the fiscal period may, however, differ significantly from estimatedamounts due to unforeseen circumstances or emergencies.
 In general, property tax and city planning tax are allocated to the seller and purchaser on a pro rata basis at the time ofacquisition settlement. In the case of the Investment Corporation, an amount equivalent to the portion allocated to thepurchaser is included in the acquisition price of the property.
 Interest payable (including financing related expenses etc.) of ¥1,128 million is assumed.
Non-Operating Expenses
 Amortization of investment unit issuance expenses of ¥56 million is assumed.
Extraordinary Profit/Loss  Extraordinary profit/loss is not assumed.
 The balance of the borrowings and the investment corporation bonds as of June 13, 2016 is ¥165,800 million and¥9, 300 million, respectively.
Borrowings and Of the borrowings as of June 13, 2016, a total of ¥13,500 million in borrowings is due for repayment during theInvestment Corporation
twenty-third fiscal period. However, it is assumed that all borrowings will be refinanced.
Bonds
 Forecasts are based on the assumption that there will be no maturity for investment corporation bonds during thetwenty-third fiscal period.
 Forecasts are based on the assumption that the number of investment units issued and outstanding as of April 30,
2016 is 404,885 units.
Investment Units Issued
 Forecasts are based on the assumption that the number of investment units issued and outstanding shall remain
and Outstanding
unchanged until the end of the twenty-third fiscal period.
 Distributions per unit are calculated in accordance with the distribution policy outlined in the Investment
Corporation’s Articles of Incorporation.
 Distributions per unit are calculated based on the assumption that the amount of the reversal of reserve for reduction
Distributions per Unit
entry (¥136 million) added net income is distributed.
 Actual distributions per unit may differ significantly from forecasted figures due to a variety of reasons including
movements in investment assets, rental revenues impacted by tenant movements or the incidence of major
unforeseen renovation expense.
Distributions in Excess of The Investment Corporation does not currently anticipate distributions in excess of earnings per unit.
Earnings per Unit
 Forecasts are based on the assumption that any revisions to regulatory requirements, taxation, accounting standards,
public listing regulations or requirements of the Investment Trusts Association, Japan will not impact forecast
Other
figures.
 Forecasts are based on the assumption that there will be no major unforeseen changes to economic trends and in realestate and other markets.

- 10 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

3. Financial Statements(1) Balance Sheets(Thousands of Yen)
Twenty-first Fiscal Period

Twenty-second Fiscal Period(As of October 31, 2015)(As of April 30, 2016)

Cash and deposits

13,556,590

11,235,762

Cash and deposits in trust

9,031,182

9,367,233

Accounts receivable-trade338,286

341,786

Prepaid expenses

89,21841,985

AssetsCurrent assets

Consumption taxes receivable
Other
Total current assets-

53,578

7,993

17,75823,023,272

21,058,104

Noncurrent assets
Property, plant and equipment
Buildings

18,820,078

19,417,134

Accumulated depreciation(3,965,311)(4,278,789)

Buildings, net

14,854,767

15,138,344

Structures

25,23537,639

Accumulated depreciation(11,503)(12,345)

Structures, net

13,731

25,294

Machinery and equipment

366,100

371,786

Accumulated depreciation(168,934)(179,333)

Machinery and equipment, net

197,165

192,452

Tools, furniture and fixtures

80,08084,191

Accumulated depreciation(44,234)(47,061)

Tools, furniture and fixtures, net

35,84537,129Land

36,424,212

36,424,212

113,470,785

116,588,541

Accumulated depreciation(20,315,884)(21,695,828)

Buildings in trust, net

93,154,901

94,892,713

372,063379,259

Accumulated depreciation(135,791)(146,980)

Structures in trust, net

236,271

232,279

Machinery and equipment in trust

1,538,904

1,670,106

Accumulated depreciation(665,597)(715,244)

Machinery and equipment in trust, net

873,307954,862

Tools, furniture and fixtures in trust

423,844429,890

Accumulated depreciation(214,392)(219,426)

Tools, furniture and fixtures in trust, net

209,452

210,464

235,113,750

236,625,041

381,113,406

384,732,794

Leasehold right

285,350

285,350

Leasehold right in trust

67,884

67,109-5,716

353,234

358,176

1,100,234

1,089,760

Buildings in trust*2

Structures in trust

Land in trust
Total property, plant and equipment
Intangible assets

Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

122,889

122,889

Long-term prepaid expenses

1,283,764

1,283,195

9,436

5,513

2,526,324

2,511,359

Other
Total investments and other assets- 11 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Thousands of Yen)
Twenty-first Fiscal Period

Twenty-second Fiscal Period(As of October 31, 2015)(As of April 30, 2016)

383,992,965

387,602,330

Investment corporation bond issuance costs

34,102

42,377

Investment unit issuance expenses

167,122

110,640

Total deferred assets

201,224

153,018

407,217,462

408,813,454

Total noncurrent assets
Deferred assets

Total assets

Liabilities
Current Liabilities
Accounts payable

1,104,158

913,869

Short-term loans payable

2,500,000

2,500,000

Current portion of investment corporation bonds-

3,000,000

30,800,000

19,700,000

Accounts payable-other

268,006

257,024

Accrued expenses

89,61890,456

Income taxes payable

762

799

Current portion of long-term loans payable

Accrued consumption taxes

407,556-

Advances received

1,958,661

2,115,824

Deposits received
Total current liabilities

46,84054,16037,175,603

28,632,136

Noncurrent liabilities
Investment corporation bonds
Long-term loans payable

8,300,000

6,300,000

132,500,000

143,600,000

Tenant leasehold and security deposits

1,857,217

1,938,465

Tenant leasehold and security deposits in trust

15,469,859

15,783,129

-

4,328

158,127,076

167,625,923

195,302,679

196,258,059

206,199,945

206,199,945

Reserve for reduction entry

1,150,494

1,544,521

Total voluntary reserve

1,150,494

1, 544,521

Unappropriated retained earnings (undisposed loss)

4,564,342

4,815,255

Total surplus

5,714,837

6,359,776

211,914,782

212,559,722

Deferred gains or losses on hedges-(4,328)

Total valuation and translation adjustments-(4,328)211,914,782

212,555,394

407,217,462

408,813,454

Other
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve

Total unitholders' equity
Valuation and translation adjustments

Total net assets*1

Total liabilities and net assets- 12 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(2) Statements of Income(Thousands of Yen）
Twenty-first Fiscal Period

Twenty-second Fiscal Period

May 1, 2015 toNovember 1, 2015 to

October 31, 2015

April 30, 2016

Operating revenues
Rental revenues*1

11,106,553

11,048,079

Other rental revenues*12,119,478

1,763,949

Gain on sales of real estate property*2461,366

1,510,168

53,27840,015

13,740,676

14,362,213

Dividends income
Total operating revenue
Operating expenses
Property related expenses*1

6,668,991

6,533,202

Loss on sales of real estate property, etc.

*2

165,690766,004

Asset management fee

753,003759,989

Directors' compensation

8,400

8,400

Asset custody fee

22,272

22,177Administrative service fees

56,26556,235

Audit fee

11,80011,800

Other operating expenses

114,023

102,321

Total operating expenses

7,800,447

8,260,131

5,940,228

6,102,081

Interest income

738

697

Dividends and redemption-prescription

876

1,133

Interest on refund

41

4

1,656

1,835

986,564

922,754

Operating income
Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

71,547

71,137

Borrowing related expenses

220,018

183,756

Amortization of investment corporation bond issuance costs

5,311

5,262

Amortization of investment unit issuance expenses

56,481

56,481Other

36,35748,005

1,376,279

1,287,398

Ordinary income

Total non-operating expenses

4,565,604

4,816,518

Income before income taxes

4,565,604

4,816,518

Income taxes-current

1,261

1,262

Income taxes-deferred

1

0

1,262

1,263

Net income

4,564,342

4,815,255

Unappropriated retained earnings (undisposed loss)

4,564,342

4, 815,255

Total income taxes- 13 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(3) Statements of Unitholders’ Equity
Twenty-first fiscal period (May 1, 2015 to October 31, 2015)(Thousands of Yen)
Unitholders' equity
Surplus
Voluntary reserve

Unitholders'
capital

Total net assets

Total surplus

Total unitholders'equityReserve for
reduction entry

Total voluntary
reserve

Unappropriatedretained earnings(undisposed loss)

640,810

640,810

5,110,392

5,751,203

211,951,148

211,951,148

509,684

509,684(509,684)---

Distribution from surplus(4,600,708)(4,600,708)(4,600,708)(4,600,708)

Net income

4,564,342

4,564,342

4,564,342

4,564,342

Balance at the start of current
periodChanges of items during theperiodProvision of reserve for
reduction entry

Total changes of items during theperiodBalance at the end of current
period206,199,945-

509,684

509,684(546,049)(36,365)(36,365)(36,365)* 206,199,945

1,150,494

1,150,494

4,564,342

5,714,837

211,914,782

211,914,782

Twenty-second fiscal period (November 1, 2015 to April 30, 2016)(Thousands of Yen)
Unitholders' equity

Valuation and translation adjustments

Surplus
Voluntary reserve

Unitholders'
capitalUnappropriatedretained earnings(undisposed loss)

Total surplus

Total unitholders' Deferred gains orequitylosses on hedges

Total valuationand translation
adjustments

Total net assets-

211,914,782

Reserve for
reduction entry

Total voluntary
reserve

1,150,494

1,150,494

4,564,342

5,714,837

211, 914,782

394,026

394,026(394,026)---

Distribution from surplus(4,170,315)(4,170,315)(4,170,315)(4,170,315)

Net income

4,815,255

4,815,255

4,815,255

4,815,255

Balance at the start of current
periodChanges of items during theperiodProvision of reserve for
reduction entry

Items other than unitholders'equity, net
Total changes of items during theperiodBalance at the end of current
period206,199,945-(4,328)(4,328)(4,328)-394,026

394,026

250,912644,939644,939(4,328)(4,328)640,611* 206,199,945

1,544,521

1, 544,521

4,815,255

6,359,776

212,559,722(4,328)(4,328)

212,555,394- 14 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(4) Basis for Calculating Cash Distribution(Unit: Yen)
Twenty-second Fiscal Period

Twenty-first Fiscal Period(May 1, 2015 to October 31, 2015)(November 1, 2015 to April 30, 2016)

I.

Retained earnings at the end of period

4,564,342,368

4,815,255,316

II.

Total Distribution(Distribution per Unit)
Voluntary retained earnings (Provision)
Provision for reserve for reduction entry
Retained Earnings brought forward to
the next period

4,170,315,500(10,300)

4,335,103,695(10,707)394,026,868

480,151,621--

Method of calculating the distribution amountIn accordance with the policy depicted in Article 35 (1)of its Articles of Incorporation, the Investment
Corporation determines that the amount of distribution
shall exceed the amount equivalent to 90% of its
distributable profit as stipulated in Article 67-15 of theSpecial Taxation Measures Law, and shall be up to theamount of its profits as the ceiling. Following this policy,
the Investment Corporation has decided that, of theamount remaining after the reserve for reduction entry as
stipulated in Article 66-2 of the Special Taxation
Measures Law is deducted from unappropriated retained
earnings, it shall distribute the maximum amount ofretained earnings at the period-end, namely totaling¥4,170,315,500 to 404,885 units issued and outstanding.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 35 (2) of theInvestment Corporation’s Articles of Incorporation. In its
fiscal period under review, the Investment Corporation
has decided not to distribute cash in excess of
distributable profit.

In accordance with the policy depicted in Article 35 (1)of its Articles of Incorporation, the Investment
Corporation determines that the amount of distribution
shall exceed the amount equivalent to 90% of its
distributable profit as stipulated in Article 67-15 of theSpecial Taxation Measures Law, and shall be up to theamount of its profits as the ceiling. Following this policy,
the Investment Corporation has decided that, of theamount remaining after the reserve for reduction entry as
stipulated in Article 66-2 of the Special Taxation
Measures Law is deducted from unappropriated retained
earnings, it shall distribute the maximum amount ofretained earnings at the period-end, namely totaling¥4,335,103,695 to 404,885 units issued and outstanding.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 35 (2) of theInvestment Corporation’s Articles of Incorporation. In its
fiscal period under review, the Investment Corporation
has decided not to distribute cash in excess of
distributable profit.

III.
IV.

- 15 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(5) Statements of Cash Flows(Thousands of Yen)

Twenty-first Fiscal Period

Twenty-second Fiscal Period

May 1, 2015 to October 31, 2015

November 1, 2015 to April 30, 2016

Net cash provided by (used in)operating activities
Income before income taxes

4,565,604

4,816,518

Depreciation

2,218,870

2,230,944

Amortization of long-term prepaid expenses

214,141

178,006

Interest income

(738)

(697)

Interest expenses

1,058,111

993,892

Amortization of investment unit issuance expenses

56,481

56,481

Amortization of investment corporation bond issuance expenses

5,311

5,262

(16,371)(3,499)Decrease (increase) in accounts receivable-trade-(53,578)

Decrease (increase) in prepaid expenses(38,770)

47,233

Increase (decrease) in accounts payable

36,194(188,896)

Increase (decrease) in accounts payable-other

4,857(14,635)

Increase (decrease) in accrued consumption taxes

159,195(407,556)

Increase (decrease) in advances received(149,339)

157,163

Increase (decrease) in deposits received(10,631)

7,320

Changes in net property, plant and equipment from sale

1,094,481-

Changes in net property, plant and equipment held in trust from sale

4,214,660

14,591,895

Decrease (increase) in long-term prepaid expenses(189,669)(177,437)

93,403(781)

13,315,793

22,237,636

738

697

(1,070,730)(989,130)

(925)

(868)

12,244,875

21,248,334(82,971)(600,760)(8,995,501)(19,802,481)-(5,913)

Payments of tenant leasehold and security deposits(308,147)(408,289)

Proceeds from tenant leasehold and security deposits

103,099

317,786

Payments of tenant leasehold and security deposits in trust(872,701)(1,087,808)

Proceeds from tenant leasehold and security deposits in trust

997,551

1,533,423

Payments of restricted bank deposits in trust(59,129)(600,261)

Proceeds from restricted bank deposits in trust

108,410-(9,109,388)(20,654,305)

Increase in short-term loans payable

1,000,000

1,500,000

Decrease in short-term loans payable(1,500,000)(1,500,000)

Proceeds from long-term loans payable

14,500,000

18,300,000

Repayment of long-term loans payable(14,500,000)(18,300,000)-

990,471

Dividends paid

(4,599,589)(4,169,538)

Net cash provided by (used in) financing activities(5,099,589)(3,179,066)

Net increase (decrease) in cash and cash equivalents(1,964,102)(2,585,038)

Cash and cash equivalents at beginning of period

23,724,684

21,760,581

21,760,581

19,175,542

Decrease (increase) in consumption taxes refund receivable

Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets

Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities

Proceeds from issuance of investment corporation bondCash and cash equivalents at end of period*- 16 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(6) Notes on the Going Concern
Not applicable(7) Important Accounting Standards
1. Evaluation standards and evaluation method of assets

Securities
Other securitiesThose with no fair value
Cost method through moving-average method
Concerning silent partnership (tokumei kumiai) (TK) interests, the method of incorporating
the amount of equity equivalent to the portion that corresponds to the net gain or loss of TK isadded.

2. Depreciation of fixed assets(1) Property, plant and equipment (includes trust assets)
The straight-line method is applied.
Useful lives of the assets ranging are as follows:
Buildings: 2 to 49 years
Structures: 2 to 45 years
Machinery and equipment: 3 to 17 years
Tools, furniture and fixtures: 3 to 20 years(2) Intangible assets (includes trust assets)
The straight-line method is applied.
Leasehold rights: Fixed term leasehold is amortized over a contractual period of 48 years and9 months under the straight-line method.
(3) Long-term prepaid expenses
The straight-line method is applied.

3. Accounting policies for deferred assets(1) Investment unit issuance costs
Unit issuance costs are amortized over a period of 3 years.
(2) Investment corporation bond issuance costs
Bond issuance costs are amortized by applying the straight-line method for the entire redemption
period.

4. Accounting standards for revenues and expenses

Accounting method for property tax
Property-related taxes including property taxes and city planning taxes, etc. are imposed on
properties on a calendar year basis. These taxes are generally charged to rental expenses for theperiod, for the portion of such taxes corresponding to said period.
In connection with the acquisition of real estate including trust beneficiary interests in real estate
during the fiscal period under review, the Investment Corporation included it’s pro rata property
portion for the year in each property acquisition price and not as rental expense. The amount ofproperty taxes included in acquisition prices for the previous fiscal period amounted to ¥13,307
thousand and for the fiscal period under review amounted to ¥83,801 thousand.

5. Accounting for hedges(1) Hedge accounting method
The deferred hedge method is applied. However, the special treatment is applied for theinterest-rate swap and interest-rate cap agreements that meet the criteria.
(2) Hedging instruments and risks hedged
Hedge instruments
The Investment Corporation enters into interest-rate swap transactions.
The Investment Corporation enters into interest-rate cap transactions.
Risks hedged
Interest rates on debt.
(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its risk management
policies with the objective of hedging risks in accordance with its Articles of Incorporation.
(4) Method of evaluating the effectiveness of hedging
During the period from the commencement of hedging to the point at which effectiveness is
assessed, the Investment Corporation compares the cumulative total of market changes in thetargeted objects of hedging or cash flow changes with the cumulative total of market changes in
the hedging instruments or cash flow changes. The Investment Corporation then makes adecision based on the changes and other factors of the two.
However, the interest-rate swap and interest-rate cap agreements that meet the criteria for special
treatment, the evaluation of effectiveness are omitted.
- 17 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

6. The scope of cash and cash equivalents on statements ofcash flows

7. Other significant accounting policies utilized in the
preparation of financial statements

For the purpose of cash flow statements, cash and cash equivalents consist of cash on hand,deposits received that can be withdrawn on demand, and short-term investments with original
maturities of 3 months or less, that are readily convertible to known amounts of cash and present
insignificant risk of a change in value.
(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities as well as revenues and expenses of financial assets held in the form oftrust beneficiary interests in real estate and other assets are recorded in full in the Investment
Corporation’s balance sheets and statements of income.
Important line items included in accounting for financial assets and liabilities in the Investment
Corporation’s balance sheet are as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture andfixtures in trust, land in trust and construction in progress in trust
3. Leasehold rights in trust
4. Lease and guarantee deposits in trust
5. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption taxes are separately recorded. Non-deductible consumption taxes applicable to theacquisition of assets are included in the cost of acquisition for each asset.

- 18 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(8) Notes to the Financial Statements(Notes to the Balance Sheets)*1. Minimum unitholders’ equity pursuant to Article 67, paragraph 4 of the Act on Investment Trusts and Investment Corporations(Thousands of Yen)
Twenty-first Fiscal Period(as of October 31, 2015)

Twenty-second Fiscal Period(as of April 30, 2016)
50,00050,000*2. The amount of advanced depreciation of property, plant and equipment acquired by government subsidy(Thousands of Yen)
Twenty-first Fiscal Period(as of October 31, 2015)
Buildings in trust

Twenty-second Fiscal Period(as of April 30, 2016)
26,230(Notes to the Statements of Income)*1. Breakdown of real estate rental business profit and loss

26,230(Thousands of Yen)
Twenty-first Fiscal Period

Twenty-second Fiscal Period

May 1, 2015 to October 31, 2015

November 1, 2015 to April 30, 2016

A. Rental and other operating revenues
Rental revenues
Leasing income

9,124,877

9,117,585

Common area charges

1,981,676

1,930,493

Subtotal

11,106,553

11,048,079

Parking space rental revenues

472,738

471,916

Utility charge reimbursement

1,131,095

990,851

Other rental revenues

Miscellaneous

515,644

301,181Subtotal

2,119,478

1,763,949

13,226,032

12,812,028

Property management fees and facility management fees

1,261,503

1,251,482

Utilities

1,232,969

1,071,934

Taxes

1,097,079

1,112,600

Repairs and maintenance costs

497,904

451,262

Insurance

18,325

17,492Trust fees

52,43932,130Total rental and other operating revenues
B. Rental and other operating expenses
Property-related expenses

Others289,901

365,553

Depreciation

2,218,870

2,230,747

Total rental and other operating expenses

6,668,991

6,533,202

6,557,040

6,278,825

C. Rental business profit (A – B)

- 19 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)*2. Gain and Loss on sale of real estate property
Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015)(Thousands of Yen)
(1) Nagoya Nikko Shoken Building
Revenue from sale of the investment property

4,800,000

Costs of the investment property

4,214,660

Other sales expenses

123,973

Gain on sale of real estate property

461,366(Thousands of Yen)

(2) KDX Nogizaka Building
Revenue from sale of the investment property

960,000

Costs of the investment property

1,094,481

Other sales expenses

31,209Loss on sale of real estate property

165,690

Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016)(Thousands of Yen)
(1) Toranomon Toyo Building
Revenue from sale of the investment property

11,470,000

Costs of the investment property

9,899,061
60,770

Other sales expenses

1,510,168

Gain on sale of real estate property(Thousands of Yen)
(2) KDX Toranomon Building
Revenue from sale of the investment property

3,950,000

Costs of the investment property

4,692,834

Other sales expenses

23,170Loss on sale of real estate property

766,004(Notes to the Statements of Changes in Unitholders’ Equity)*Total number of authorized investment units and total number of investment units issued and outstanding
Twenty-first Fiscal Period

Twenty-second Fiscal Period

May 1, 2015 to October 31, 2015

November 1, 2015 to April 30, 2016

Total number of authorized investment units

2,000,000 units

2,000,000 units

Total number of investment units issued and outstanding

404,885 units

404,885 units(Notes to the Statements of Cash Flow)* Reconciliation of balance sheet items to cash and cash equivalents at end of period in the cash flows statements(Thousands of Yen)
Twenty-first Fiscal Period

Twenty-second Fiscal Period

May 1, 2015 to October 31, 2015

November 1, 2015 to April 30, 2016

Cash and deposits

13,556,590

11,235,762

Cash and deposits in trust

9,031,182

9,367,233

Restricted bank deposits held in trust (Note)(827,191)(1,427,453)

Cash and cash equivalents

21,760,581

19,175,542

Note: Restricted bank deposits held in trust are retained for repayment of tenant leasehold and security deposits held in trust.
(Notes on the Lease Transactions)Operating lease transactions(Lessor)(Thousands of Yen)
Twenty-first Fiscal Period(as of October 31, 2015)

Twenty-second Fiscal Period(as of April 30, 2016)

Unearned lease payments
Due within one year

1,759,328

1,486,303

Due after one year

9,540,265

9,544,085

Total

11,299,593

11,030,389- 20 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on the Financial Instruments)
1. Items with Regard to the current status of Financial Instruments(1) Action Policy with Regard to Financial Instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bank loans and theissuance of investment corporation bonds and new investment units. The Investment Corporation makes use of derivative instruments primarily as a risk hedge
against interest rate fluctuations and to lessen interest-rate payments. In addition, it is company policy to not conduct speculative derivative transactions.
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) Financial Instruments and Respective Risks
Investment securities are TK interests, which are exposed to credit risk of the issuer and risk of fluctuation of value of real estate, etc.
Loans 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 about 12 years following the closing date. Although a certain portion of said liabilities are subject to interest rate fluctuation risks, the Investment
Corporation utilizes derivative instruments (interest-rate swap transactions, etc.) in order to hedge against such risks.
Derivative instruments are interest-rate swap and interest-rate cap transactions that are used to hedge against interest rate fluctuation risks. Utilizing interest-rate
swap transactions, the Investment Corporation fixed its interest payments for funds procured on a floating interest rate basis or minimizing the risk of interest rateincrease. With regard to hedge accounting methods, hedging instruments and hedged items, hedge policy, and the method of evaluation of hedge effectiveness,please see “5. Hedge Accounting Method in notes concerning Important Accounting Standards”.
(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in Interest Rates and Others)
The Investment Corporation uses interest-rate swap etc., in order to minimize risks associated with interest payment rate fluctuations on funds procured.
The Investment Corporation will periodically grasp the value of real estate, etc. and financial condition, etc. of the issuer with regard to investment securities.
B. Management of Liquidity Risk (Risk of Defaulting on Payments by the Due Date) Associated with Funds Procurement
Although loans and other liabilities are subject to liquidity risks, the Investment Corporation reduces such risks by spreading out payment due dates and byusing diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplemental Explanation of Items with Regard to Fair Value of Financial Instruments
Included in the fair value of financial products are market prices, or, in the event market prices are not available, prices that are calculated on a rational basis.
Because the factors incorporated into the calculation of these prices are subject to change, differing assumptions are adopted which may alter fair value.
Moreover, the contract amounts, etc. of derivative transactions in “2. Items with Regard to Fair Value of Financial Instruments” do not indicate the market riskof derivative transactions.
2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference are as follows. Furthermore, items whose fair values are recognized to be extremely
difficult to grasp are not included in the following table (Refer to Note 2).
Twenty-first Fiscal Period (as of October 31, 2015)(Thousands of Yen)
Book Value(1) Cash and deposits(2) Cash and deposits in trust
Total(1) Short-term loans payable(2) Investment corporation bonds(3) Long-term loans payable
Total
Derivative Transaction

Fair Value

13,556,590
9,031,182
22,587,772
2,500,000
8,300,000
163,300,000
174,100,000-

Twenty-second Fiscal Period (as of April 30, 2016)

174,360
461,383
635,743(Thousands of Yen)

Book Value(1) Cash and deposits(2) Cash and deposits in trust
Total(1) Short-term loans payable(2) Investment corporation bonds(3) Long-term loans payable
Total
Derivative Transaction

Difference

13,556,590
9,031,182
22,587,772
2,500,000
8,474,360
163,761,383
174,735,743-

Fair Value

11,235,762
9,367,233
20,602,996
2,500,000
9,300,000
163,300,000
175,100,000(4,328)- 21 -

11,235,762
9,367,233
20,602,996
2,500,000
9,486,050
165,889,327
177,875,377(4,328)Difference
186,050
2,589,327
2,775,377-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Note 1: Items with regard to the calculation method of financial instrument fair value, investment securities and derivative transactions.
Assets(1) Cash and deposits, (2) Cash and deposits in trust
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used to determine fair value.
Liabilities(1) Short-term loans payable
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used to determine fairvalue.
(2) Investment corporation bonds
The fair value of investment corporation bonds is based on market prices.
(3) Long-term loans payable
The fair value of long-term borrowings is calculated based on the present value that discounts the total amount of principal and interest by using the estimated interest
rate in the event that the Investment Corporation conducts new borrowings of the same type. Among long-term borrowings with floating interest rates, the saidborrowings, which are subject to special treatment of interest-rate swaps or caps, are calculated by discounting the total amount of principal and interest, which ishandled together with applicable interest-rate swaps or caps, by the rationally estimated interest rate in the case that the same type of borrowings are undertaken.
Derivative Transactions
Please refer to the following “Notes on the Derivative Transactions”.
Note 2: Book value of financial instruments for which it is extremely difficult to determine the fair value
Twenty-first Fiscal Period
Classification(as of October 31, 2015)
Investment securities *(Thousands of Yen)
Twenty-second Fiscal Period(as of April 30, 2016)

1,100,234

1,089,760*Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are not included in the preceding table.
Note 3: Redemption schedule of monetary claims after the closing date
Twenty-first Fiscal Period (as of October 31, 2015)(Thousands of Yen)

Due within 1 yr.
Cash and deposits
Cash and deposits in trust
Total

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

13,556,590

-

-

-

-

-

9,031,182

-

-

-

-

-

22,587,772

-

-

-

-

-

Twenty-second Fiscal Period (as of April 30, 2016)(Thousands of Yen)

Due within 1 yr.
Cash and deposits
Cash and deposits in trust
Total

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

11,235,762

-

-

-

-

-

9,367,233

-

-

-

-

-

20,602,996

-

-

-

-

-

Note 4: Redemption schedule of investment corporation bonds and repayment schedule of loans after the closing date
Twenty-first Fiscal Period (as of October 31, 2015)(Thousands of Yen)

Due within 1 yr.
Short-term loans payable

2-3 yrs.

3-4 yrs.

More than 5yrs.

4-5 yrs.

2,500,000

-

-

-

-

-

-

4,500,000

1,800,000--

2,000,000

30,800,000

16,200,000

16,750,000

12,750,000

18,600,000

68,200,000

Investment corporation bonds
Long-term loans payable

1-2 yrs.

Twenty-second Fiscal Period (as of April 30, 2016)
Due within 1 yr.

(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

More than 5yrs.

4-5 yrs.

Short-term loans payable

2,500,000

-

-

-

-

-

Investment corporation bonds

3,000,000

1,500,000

1,800,000--

3,000,000

Long-term loans payable

19,700,000

19,250,000

16,050,000

14,700,000

19,600,000

74,000,000- 22 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on the Marketable Securities)
Twenty-first Fiscal Period (as of October 31, 2015) and Twenty-second Fiscal Period (as of April 30, 2016): Not applicable(Notes on the Derivative Transactions)(1) Items that do not apply hedge accounting
Twenty-first Fiscal Period (as of October 31, 2015) and Twenty-second Fiscal Period (as of April 30, 2016): Not applicable(2) Items that apply hedge accounting
Twentieth Fiscal Period (as of April 30, 2015)
Hedge accounting
methodType of derivative transactions(Thousands of Yen)
Main target ofrisk hedge

Contracted amountMore than 1 yr.

Fair value

Calculation method for
applicable fair value

Special treatment ofinterest-rate swaps

Interest-rate swap transactions
Fixed rate payable･Floating rate receivable

Long-term loans
payable98,050,000

92,050,000＊-

Special treatment ofinterest-rate caps

Interest-rate cap transactions

Long-term loans
payable3,000,000

500,000

＊

-

Total

101,050,000

92,550,000

Twenty-first Fiscal Period (as of October 31, 2015)
Hedge accounting
Type of derivative transactions
methodMain target ofrisk hedge

Contracted amountMore than 1 yr.

(Thousands of Yen)
Calculation method for
Fair value
applicable fair value
Based on the quoted priceobtained from
(4,328)counterparty financial
institutions.

Principle method

Interest-rate swap transactions
Fixed rate payable･Floating rate receivable

Long-term loans
payable1,000,000

1,000,000

Special treatment ofinterest-rate swaps

Interest-rate swap transactions
Fixed rate payable･Floating rate receivable

Long-term loans
payable109,350,000

102,150,000＊-

Special treatment ofinterest-rate caps

Interest-rate cap transactions

Long-term loans
payable2,000,000

500,000

＊

-

Total

112,350,000

103,650,000(4,328)-＊ Special treatment of interest-rate swaps or the interest-rate caps is reported at the fair value of applicable long-term loans payable. This is because such swaps orcaps are handled together with hedged long-term loans payable.
(Notes on the Retirement Payment)
Twenty-first Fiscal Period (as of October 31, 2015) and Twenty-second Fiscal Period (as of April 30, 2016): Not applicable(Notes on the Asset Retirement Obligations)Twenty-first Fiscal Period (as of October 31, 2015) and Twenty-second Fiscal Period (as of April 30, 2016): Not applicable(Notes on the Segment and Related Information)
1. Segment Information
Disclosure is omitted because the Investment Corporation has been engaged in the real estate leasing business as a sole business and it has no reportable segment
subject to disclosure.
2. Related Information
Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015)(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 the operating revenues on thestatement of income.
(2) Information about each geographic area
①Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statement of income.
②Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
- 23 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(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 the statement of income.
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016)(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 the operating revenues on thestatement of income.
(2) Information about each geographic area
①Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statement of income.
②Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant andequipment 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 the statement of income.
(Notes on the Tax-Effect Accounting)
1. Significant components of deferred tax assets and liabilities(Thousands of Yen)
Twenty-first Fiscal Period(as of October 31, 2015)

Twenty-second Fiscal Period(as of April 30, 2016)

Deferred tax assets
Enterprise tax payable not included in expenses

31

31

Deferred gains or losses on hedges

-

1,373

2,460

2,662

Amortization of leasehold rights in trust
Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets

2,492

4,067

(2,460)(4,036)31

31

2. Significant components causing difference between statutory income tax rate and the effective tax rate after tax effect accounting(Unit: %)Twenty-first Fiscal Period(as of October 31, 2015)

Twenty-second Fiscal Period(as of April 30, 2016)
32.31

32.31

Deductible cash distributions(29.51)(29.08)Provision of reserve for reduction entry(2.79)(3.22)

Others0.02

0.02

Effective tax rate after tax effect accounting

0.03

0.03

Statutory income tax rate
(Adjustments)

3. Revision of amount of deferred tax assets and deferred tax liabilities due to change in the tax rate of income taxes
The Act on Partial Revision of the Income Tax Act, etc. (Act No. 15 of 2016) and the Act on Partial Revision of the Local Tax Act, etc. (Act No. 13 of
2016) were enacted in the Diet session on March 29, 2016, which include lowering of the tax rate of income taxes, starting from accounting periods
starting on or after April 1, 2016. In accordance with this, the statutory tax rate used to calculate deferred tax assets and deferred tax liabilities is changed
from the previous 32.31% to 31.74%. The impact from the tax rate change is minimal.
(Notes on the Gains and Losses on Equity-method, etc.)
Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015) and Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016): Not applicable- 24 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on the Related-Party Transactions)
1．Parent Company, major corporate unitholders and other
Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015) and Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016): Not applicable
2．Affiliated companies and other
Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015) and Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016): Not applicable
3．Fellow subsidiary companies and other
Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015) and Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016): Not applicable
4．Directors, major individual unitholders and other
Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015) and Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016): Not applicable(Notes on the Fair Value of Real Estate for Rental Purposes)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenue.
The book value per balance sheet for the fiscal period under review and fair value concerning the above real estate for rental purposes are as follows.
(Thousands of Yen)
Twenty-first Fiscal Period

Twenty-second Fiscal Period

May 1, 2015 to October 31, 2015

November 1, 2015 to April 30, 2016

Book value (Thousands of Yen)
Balance at the beginning of the period
Changes during the period
Balance at the end of the period

379,905,813

381,466,640

1,560,827

3,618,614

381,466,640

385,085,254

Fair value at the end of period
392,422,000
402,555,000
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period under review is the appraisal value determined by outside appraisers.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the twenty-first fiscal period, principal increases were the acquisition ofreal estate trust beneficiary interests in 2 properties totaling ¥8,621,306 thousand, the sale of real estate in 1 property and real estate trust beneficiary interest in
1 property amounting ¥5,309,141 thousand and depreciation amounting in ¥2,218,870 thousand. For the fiscal period under review, principal increases were
the acquisition of real estate trust beneficiary interests in 2 properties totaling ¥19,321,018 thousand, the sale of real estate trust beneficiary interests in 2
properties amounting ¥14,591,895 thousand and depreciation amounting in ¥2,230,747 thousand.
Income and loss for real estate for rental purposes are listed in “Notes to the Statements of Income”.
(Notes on the Information per Unit)
Twenty-first Fiscal Period

Twenty-second Fiscal Period

May 1, 2015 to October 31, 2015

November 1, 2015 to April 30, 2016

Unitholders’ equity per unit

¥523,394¥524,977

Net income per unit
¥11,273¥11,892
Note 1: Net income per unit is calculated by dividing net income by the weighted average (based on number of days) number of units. Net income per unit after
adjusting for diluted investment units is not included because there were no dilutive investment units.
Note 2: The basis of calculation for the net income per unit is as follow.
Twenty-first Fiscal Period
Twenty-second Fiscal Period
May 1, 2015 to October 31, 2015
Net income(Thousands of Yen)
Amount not vested in ordinary unitholders(Thousands of Yen)
Net income for ordinary investment units(Thousands of Yen)
Average number of investment units
during the period (unit)(Important Subsequent Events)
Not applicable.

- 25 -

November 1, 2015 to April 30, 2016

4,564,342

4,815,255--

4,564,342

4, 815,255

404,885

404,885

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(9) Changes in the number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ capital in the last 5 years are summarized in the following table.
Investment Units Issued andUnitholders’ Capital
Outstanding (Units)(Millions of Yen) (Note 9)
Settlement Date
Particulars
Remarks
Increase
Increase
Balance
Balance(Decrease)(Decrease)
July 20, 2011
Public offering
51,400284,950
13,600146,730(Note 1)
August 8, 2011
Third-party allotment
1,600
286,550
423
147,153(Note 2)
November 13, 2013
Public offering
43,800330,350
18,198165,351(Note 3)
December 10, 2013
Third-party allotment
2,190
332,540909
166,261(Note 4)
May 27, 2014
Public offering
21,400353,940
9,876
176,138(Note 5)June 24, 2014
Third-party allotment
1,070
355,010493
176,632(Note 6)
November 27, 2014
Public offering
47,685
402,695
28,269204,901(Note 7)
December 24, 2014
Third-party allotment
2,190
404,885
1,298
206,199(Note 8)Note 1: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
new properties and repayment of borrowings. The offer price was ¥274,510 per unit with an issue price of ¥264,605 per unit.
Note 2: The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for the
repayment of borrowings. The issue price was ¥264,605 per unit.
Note 3: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
new properties and repayment of borrowings. The offer price was ¥430,950 per unit with an issue price of ¥415,480 per unit.
Note 4: The Investment Corporation undertook an additional issue of new investment units with an issue price of ¥415,480 per unit by way of third-party allotment
because cash on hand was allocated as a portion of the funds for the acquisition of new properties, the funds from the issuance of new Investment Units by
third-party allotment are allocated as proceeds to compensate for the decrease of cash on hand.
Note 5: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
new properties. The offer price was ¥478,725 per unit with an issue price of ¥461,540 per unit.
Note 6: The Investment Corporation undertook an additional issue of new investment units with an issue price of ¥461,540 per unit by way of third-party allotment
for the purpose of using as funds for the future acquisition of specified assets or a portion of funds for the repayment of borrowings.
Note 7: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
new properties and a portion of funds for the repayment of borrowings. The offer price was ¥614,250 per unit with an issue price of ¥592,830 per unit.
Note 8: The Investment Corporation undertook an additional issue of new investment units with an issue price of ¥592,830 per unit by way of third-party allotment
for the purpose of using as funds for the future acquisition of specified assets or a portion of funds for the repayment of borrowings.
Note 9: The amounts stated in ¥1 million unit are truncated at less than ¥1 million.
4. Resignation/Appointment of the Director(1) Resignation/Appointment of the Director of the Investment Corporation
Not applicable(2) Resignation/Appointment of the Director of the Asset Management Company
Not applicable- 26 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

5. Reference Information(1) Component of Assets
Twenty-first Fiscal Period(as of October 31, 2015)

Type of

Type

Specified Asset

Real Estate

Area

Total Amount Held
(Millions of Yen)
(Note 1)38,792

Tokyo Metropolitan Area

Office Buildings

Other Regional Areas

Total for Office Buildings
Total for Real Estate

9.5

Total Amount Held
(Millions of Yen)
(Note 1)
39,17913,018

3.2

12,922

3.2

51,811

12.7

52,102

12.7

Ratio(%) (Note 2)

Ratio(%) (Note 2)
9.6

51,811

12.7

52,102

12.7

Tokyo Metropolitan Area

243,58959.8

243,794

59.6

Other Regional Areas

56,77013.9

60,03414.7

300,35973.8

303,829

74.3

Tokyo Metropolitan Area

4,669

1.1

4,623

1.1

Total for Residential Properties
Central Urban RetailTokyo Metropolitan Area
Properties
Total for Central Urban Retail Properties

4,669

1.1

4,623

1.1

21,652

5.3

21,555

5.3

21,652

5.3

21,555

5.3

2,973

0.7

2,973

0.7

Office Buildings
Total for Office Buildings
Residential Properties
Trust BeneficiaryInterest in Real Estate

Twenty-second Fiscal Period(as of April 30, 2016)

OthersTokyo Metropolitan Area

Total for Others
Total of Trust Beneficiary Interests in Real Estate
Investment Securities (Note 3)

2,973

0.7

2,973

0.7

329,655

81.0

332,982

81.5

1,100

0.3

1,089

0.3

Bank Deposits and Other Assets

24,650

6.1

22,638

5.5

Total Assets

407,217100.0

408,813100.0

Note 1: “Total Amount Held” is the amount allocated in the balance sheets at the end of the period (figures are on a net book value basis after deducting depreciation),and is rounded down to the nearest ¥1 million.
Note 2: “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
Note 3: Interests in a silent partnership operated by G.K. KRF 43 are indicated.
Twenty-first Fiscal Period(as of October 31, 2015)
Amount (Millions of Yen)

Twenty-second Fiscal Period(as of April 30, 2016)

Ratio (%)

Amount (Millions of Yen)

Ratio (%)

Total of Liabilities

195,30248.0

196,258

48.0

Total Unitholders’ Equity

211,91452.0

212,555

52.0

Total of Assets

407,217100.0

408,813100.0(2) Details of Investment Assets① Major components of investment securities
Type of Assets
Silent Partnership
Equity Interest

Name
G.K. KRF43 Silent Partnership
Equity Interest (Note 3)

Number ofBook Value

Evaluation Value (Note 1)

Ratio (%)

Units

(Millions of Yen)

(Millions of Yen)

(Note 2)-

1,089

Note 1: Book value is stated for the evaluation value.
Note 2: “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
Note 3: The asset under management is the trust beneficiary interest in real estate of Shinjuku Sanei Building.

- 27 -

1,089

0.3

KENEDIX OFFICE INVESTMENT CORPORATION (8972)②. Properties Roster
A. The Price of the Investment Properties and the Investment Ratio(Unit: Millions of Yen)
Appraisal Value at the end of Twenty-first Fiscal Period

Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Acquisition
Price(Note 1)

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)
Value

Overall
Capitalization
Rate (%)

Discounted Cash Flow Method
Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-1

KDX Nihonbashi 313 Building

5,940

5,905

6,710

6,940

4.1

6,610

3.9

4.3

B

1.5

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,152

4,920

4,990

4.5

4,850

4.2

4.6

A

1.1

A-4

KDX Hatchobori Building

3,680

3,329

3,230

3,330

4.4

3,180

4.2

4.6

B

0.9

A-5

KDX Nakano-Sakaue Building

2,533

2,373

2,340

2,420

4.6

2,310

4.4

4.8

B

0.6

A-6

Harajuku F.F. Building

2,450

2,388

3,040

3,060

4.9

3,020

4.6

5.0

A

0.6

A-7

KDX Minami Aoyama Building

2,270

2,211

2,460

2,480

4.2

2,440

3.9

4.3

A

0.5

A-8

Kanda Kihara Building

1,950

1,804

1,620

1,680

4.4

1,600

4.2

4.6

B

0.4

A-13

KDX Kojimachi Building

5,950

5,584

4,610

4,650

4.0

4,560

3.7

4.1

A

1.5

A-14

KDX Funabashi Building

2,252

2,261

2,060

2,060

5.7

2,050

5.4

5.8

A

0.5

A-16

Toshin 24 Building

5,300

4,877

4,760

4,790

5.0

4,730

4.7

5.1

A

1.3

A-17

KDX Ebisu Building

4,640

4,449

4,720

4,740

4.3

4,690

3.9

4.4

A

1.1

A-19

KDX Hamamatsucho Building

3,460

3,090

3,360

3,480

4.0

3,310

3.8

4.2

B

0.8

A-20

KDX Kayabacho Building

2,780

2,751

2,530

2,550

4.6

2,500

4.2

4.7

A

0.7

A-21

KDX Shinbashi Building

3,728

3,772

4,470

4,510

4.0

4,420

3.7

4.1

A

0.9

A-22

KDX Shin-Yokohama Building

2,520

2,294

2,340

2,360

5.4

2,310

5.1

5.5

A

0.6

A-26

KDX Kiba Building

1,580

1,475

1,270

1,290

5.3

1,240

4.8

5.3

A

0.4

A-27

KDX Kajicho Building

2,350

2,294

2,240

2,300

4.4

2,210

4.2

4.6

B

0.5

A-29

KDX Higashi-Shinjuku Building

2,950

3,073

3,700

3,800

4.5

3,650

4.3

4.7

B

0.7

A-30

KDX Nishi-Gotanda Building

4,200

3,914

3,690

3,760

4.6

3,620

4.4

4.8

A

1.0

A-31

KDX Monzen-Nakacho Building

1,400

1,334

1,110

1,160

5.0

1,090

4.8

5.2

B

0.3

A-32

KDX Shiba-Daimon Building

6,090

6,049

4,970

5,010

4.5

4,920

4.2

4.6

A

1.5

A-33

KDX Okachimachi Building

2,000

2,060

1,980

2,030

4.5

1,960

4.4

4.7

B

0.5

A-34

KDX Hon-Atsugi Building

1,305

1,176

1,150

1,190

5.7

1,130

5.5

5.9

B

0.3

A-35

KDX Hachioji Building

1,155

1,223

1,050

1,040

5.4

1,050

5.2

5.6

B

0.2

A-37

KDX Ochanomizu Building

6,400

6,450

6,830

6,900

4.3

6,760

4.0

4.4

A

1.6

A-38

KDX Nishi-Shinjuku Building

1,500

1,537

1,200

1,200

4.7

1,190

4.4

4.8

A

0.3

A-41

KDX Shinjuku 286 Building

2,300

2,329

2,430

2,440

4.3

2,410

4.0

4.4

A

0.5

A-45

KDX Roppongi 228 Building

3,300

3,404

2,120

2,150

4.3

2,090

4.0

4.4

A

0.8

A-46

Hiei Kudan-Kita Building

7,600

7,512

7,910

8,150

4.1

7,810

3.9

4.3

B

1.9

A-47

KDX Shin-Yokohama 381 Building

5,800

5,540

4,280

4,310

5.4

4,250

5.1

5.5

A

1.4

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,612

3,060

3,060

5.4

3,060

4.8

5.4

A

0.9

A-50

KDX Ikejiri-Oohashi Building

2,400

2,379

1,710

1,720

5.1

1,700

4.8

5.2

A

0.6

A-51

KDX Hamacho Nakanohashi Building

2,310

2,258

1,900

1,920

4.7

1,880

4.4

4.8

A

0.5

A-52

KDX Kanda Misaki-cho Building

1,380

1,347

961

980

4.6

942

4.3

4.7

A

0.3

A-55

Shin-toshin Maruzen Building

2,110

2,103

1,650

1,660

4.7

1,640

4.3

4.9

A

0.5

A-56

KDX Jimbocho Building

2,760

2,885

2,080

2,100

4.6

2,060

4.2

4.7

A

0.7

A-57

KDX Gobancho Building

1,951

1,907

1,420

1,430

4.3

1,410

4.0

4.4

A

0.4

A-59

KDX Iwamoto-cho Building

1,864

1,700

1,490

1,500

4.8

1,480

4.5

4.9

A

0.4

A-60

KDX Harumi Building

10,250

9,110

8,470

8,570

4.4

8,370

4.0

4.4

A

2.6

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,250

2,080

2,140

4.0

2,050

3.8

4.2

B

0.5

A-62

Koishikawa TG Building

3,080

3,034

3,360

3,390

4.5

3,330

4.2

4.6

A

0.7

A-63

Gotanda TG Building

2,620

2,726

3,020

3,040

4.6

2,990

4.3

4.7

A

0.6

A-64

KDX Nihonbashi 216 Building

2,010

1,884

1,980

1,990

4.2

1,960

3.9

4.3

A

0.5

A-66

KDX Shinjuku Building

6,800

6,890

8,010

8,050

4.0

7,970

3.7

4.1

A

1.7

A-67

KDX Ginza 1chome Building

4,300

4,220

5,480

5,630

3.8

5,420

3.6

4.0

B

1.0

A-68

KDX Nihonbashi Honcho Building

4,000

3,951

4,530

4,670

4.2

4,470

4.0

4.4

B

1.0

- 28 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Appraisal Value at the end of Twenty-first Fiscal Period
Type

Area

Tokyo
Metropolitan
Area

OfficeBuidings

Other Regional
Areas

No.

Property Name

Acquisition
Price(Note 1)

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-71

KDX Iidabashi Building

4,670

4,577

5,370

5,550

4.2

5,290

4.0

4.4

B

1.1

A-72

KDX Higashi-Shinagawa Building

4,590

4,779

4,300

4,430

4.4

4,250

4.2

4.6

B

1.1

A-73

KDX Hakozaki Building

2,710

2,764

3,180

3,250

4.6

3,150

4.4

4.8

B

0.6

A-74

KDX Shin-Nihonbashi Building

2,300

2,139

2,710

2,770

4.0

2,680

3.8

4.2

B

0.5

A-75

KDX Nihonbashi Kabutocho Building

11,27011,164

12,10012,200

4.3

12,000

3.9

4.3

A

2.8

A-78

KDX Tachikawa Ekimae Building

1,267

1,304

1,490

1,490

5.4

1,480

5.1

5.5

A

0.3

A-83

KDX Fuchu Building

6,120

5,968

7,170

7,230

5.0

7,150

4.8

5.2

B

1.5

A-84

KDX Kasuga Building

2,800

2,781

3,580

3,600

4.5

3,550

4.2

4.6

A

0.7

A-85

KDX Nakameguro Building

1,880

1,873

2,490

2,550

4.6

2,470

4.4

4.8

B

0.4

A-86

KDX Omiya Building

2,020

2,199

2,720

2,730

5.2

2,720

5.0

5.4

B

0.5

A-87

Itopia Nihonbashi SA Building

2,200

2,247

2,460

2,460

4.5

2,460

4.3

4.7

B

0.5

A-88

KDX Shinjuku 6-chome Building

1,900

1,893

2,660

2,710

4.4

2,640

4.2

4.6

B

0.4

A-89

KDX Takanawadai Building

5,250

5,284

5,980

6,030

4.5

5,930

4.2

4.6

A

1.3

A-90

KDX Ikebukuro Building

3,900

3,787

4,680

4,770

4.1

4,640

3.9

4.3

B

0.9

A-91

KDX Mita Building

3,180

3,165

3,360

3,380

4.4

3,330

4.1

4.5

A

0.8

A-92

KDX Akihabara Building

2,600

2,572

2,980

3,000

4.3

2,950

4.0

4.4

A

0.6

A-93

KDX Iidabashi Square

4,350

5,020

4,890

5,050

4.2

4,820

4.0

4.4

B

1.1

A-94

KDX Musashi-Kosugi Building

12,000

11,637

13,90014,0004.6

13,800

4.3

4.7

A

3.0

A-95

KDX Toyosu Grand Square

8,666

8,412

9,030

9,330

4.8

8,900

4.6

5.0

B

2.2

A-96

KDX Takadanobaba Building

3,650

3,651

4,170

4,230

4.6

4,150

4.3

4.8

B

0.9

A-99

KDX Ikebukuro West Building

1,934

1,992

2,000

2,060

4.5

1,980

4.3

4.7

B

0.4

A-101

KDX Yokohama Building

7,210

7,237

8,070

8,360

4.6

7,950

4.4

4.8

B

1.8

A-102

KDX Yokohama Nishiguchi Building

2,750

2,757

2,980

3,050

4.7

2,950

4.5

4.9

B

0.6

A-103

KDX Shin-Yokohama 214 Building

2,200

2,219

2,290

2,310

5.3

2,260

5.0

5.4

A

0.5

A-105

BUREX Toranomon

1,750

1,750

2,380

2,400

3.9

2,350

3.6

4.0

A

0.4

A-107

KDX Ginza East Building (Note 6)

3,600

3,613

3,650

3,670

4.4

3,620

4.1

4.5

A

0.9

A-108

Pentel Building

3,350

3,567

3,594

3,687

4.1

3,552

3.9

4.3

B

0.8

A-109

KDX Hamamatsucho Center Building(Note 6)

3,950

4,003

4,140

4,340

4.0

4,050

3.8

4.2

B

1.0

A-112

Nittochi Toranomon Building

15,55015,713

16,30016,4003.7

16,100

3.4

3.8

A

3.9

A-12

Portus Center Building

5,570

4,196

5,140

5,190

5.8

5,120

5.6

6.0

B

1.4

A-42

KDX Karasuma Building (Note 6)

5,400

5,203

5,270

5,370

5.0

5,230

4.8

5.2

B

1.3

A-44

KDX Sendai Building

2,100

2,027

1,660

1,670

5.6

1,660

5.6

5.8

B

0.5

A-53

KDX Hakata-Minami Building

4,900

4,603

3,730

3,740

6.2

3,710

5.9

6.3

A

1.2

A-54

KDX Kitahama Building

2,220

2,101

1,610

1,610

5.6

1,610

5.1

5.7

A

0.5

A-58

KDX Nagoya Sakae Building

7,550

6,934

5,250

5,380

4.6

5,190

4.4

4.8

B

1.9

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,332

2,570

2,600

6.5

2,540

4.7

6.7

A

0.7

A-70

KDX Sapporo Building

2,005

1,974

2,080

2,140

5.2

2,060

5.0

5.4

B

0.5

A-79

KDX Nagoya Ekimae Building

7,327

8,002

8,250

8,340

4.6

8,160

4.3

4.7

A

1.8

A-82

KDX Higashi Umeda Building

2,770

2,607

3,690

3,770

4.5

3,660

4.3

4.7

B

0.7

A-97

KDX Utsunomiya Building

2,350

2,364

2,480

2,470

5.8

2,480

5.6

6.0

B

0.5

A-98

KDX Hiroshima Building

1,300

1,384

1,480

1,490

5.9

1,470

5.6

6.0

A

0.3

A-100

Senri Life Science Center Building

13,00012,858

13,10013,3004.8

13,000

4.6

5.0

B

3.3

A-104

KDX Minami-Honmachi Building

2,200

2,151

2,690

2,690

4.8

2,680

4.5

4.9

A

0.5

A-106

KDX Sakura-dori Building

5,900

6,023

7,450

7,590

4.8

7,390

4.6

5.0

B

1.5

A-110

KDX Shin-Osaka Building (Note 6)

4,550

4,606

4,830

5,030

4.3

4,750

4.1

4.5

B

1.1

A-111

Nichigin-mae KD Building

3,500

3,582

3,750

3,800

4.7

3,700

4.4

4.8

A

0.8

362,758

355,932

369,955

375,837-

366,274

-

-

-

92.2

Subtotal of Office Buildings (92 properties)- 29 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Appraisal Value at the end of Twenty-first Fiscal Period
Type

Residential

Area

No.

Tokyo
Metropolitan
Area

Property Name

B-19

Residence Charmante Tsukishima

Subtotal of Residential Properties (1 property)
CentralUrban
RetailProperties

OthersAcquisition
Price(Note 1)

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)

5,353

4,623

4,900

4,930

4.6

4,860

4.3

4.7

A

1.3

5,353

4,623

4,900

4,930

-

4,860

-

-

-

1.3

10,50010,6003.9

10,400

3.6

4.0

A

2.5

C-1

Frame Jinnan-zaka

9,900

9,396

C-2

KDX Yoyogi Building

2,479

2,474

2,110

2,100

4.9

2,110

4.4

5.0

A

0.6

C-4

Ginza 4chome Tower

9,800

9,684

11,90012,0003.5

11,700

3.2

3.6

A

2.4

Subtotal of Central Urban Retail Properties (3 properties)

22,17921,55524,51024,700-24,210

-

-

-

5.6

Tokyo
Metropolitan
Area

2,880

2,973

3,190

3,220

3.9

3,180

3.8

3.9

B

0.7

Subtotal of Others (1 property)

2,880

2,973

3,190

3,220

-

3,180

-

-

-

0.7

Total of 97 properties

393,171

385,085

402,555

408,687-

398,524

-

-

-

100.0

Tokyo
Metropolitan
Area

D-2

Shinjuku 6-chome Building (Land)

Note 1: Acquisition prices are the purchase prices for trust beneficiary interests or properties acquired by the Investment Corporation (excluding acquisition costs,
property tax, city-planning tax, and consumption tax, etc., rounded down to the nearest million yen.).
Note 2: Figures of less than 1 million are rounded down from the amounts on the balance sheet.
Note 3: Appraisal values (at the end of the twenty-second fiscal period) are based on the asset valuation method and standards outlined in the Investment
Corporation’s Articles of Incorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn fromvaluation reports prepared by Japan Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd.
Note 4: Appraisals of the properties were entrusted to two appraisers: Japan Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd. In the table, theappraisers are referred to as “A” for Japan Real Estate Institute and “B” for Daiwa Real Estate Appraisal Co., Ltd.
Note 5: Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest first decimal place.
The figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices of properties corresponding toeach subtotal and total column by the total acquisition price of the entire assets (97 properties).
Note 6: The Investment Corporation changed the property names for the following buildings. Same applies below.
No.

New Property Name

Old Property Name

Change of Date

A-42

KDX Karasuma Building

Karasuma Building

February 1, 2016

A-107

KDX Ginza East Building

35 Sankyo Building

February 1, 2016

A-109

KDX Hamamatsucho Center Building

Hamamatsucho Center Building

April 1, 2016

A-110

KDX Shin-Osaka Building

Shin Osaka Center Building

April 1, 2016

- 30 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

B. Property Distribution
Distribution by Property TypesType

Number of
Properties

Acquisition Price(Millions of Yen)

Office Buildings

92

Residential Properties
Central Urban Retail Properties
Others
Total

Ratio (Note)(%)

362,758

92.2

1

5,353

1.3

3

22,179

5.6

1

2,880

0.7

97

393,171

100.0

Geographic Distribution
Area

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note)(%)

Tokyo Metropolitan Area

80

317,659

80.7

Other Regional Areas

17

75,51219.2

97393,171

100.0

Total
Property Distribution by Acquisition Price
Acquisition Price (Millions of Yen)

Number of

Acquisition Price

Properties(Millions of Yen)

Less than 1,000

01,000 - 2,500
2,500 - 5,000

Ratio (Note)
(%)
-

-

36

70,84318.0

36126,33132.1

5,000 - 7,500

1590,41022.97,500 - 10,000

543,51611.0

10,000 - 12,500

333,5208.5

12,500 – 15,000

1

13,0003.3

15,000 – 17,500

1

15,5503.9

97393,171

100.0

Total

Note: “Ratio” refers to the percentage of the acquisition price by each category to the acquisition prices of the entire portfolio.
Figures are rounded down to the nearest first decimal place. Accordingly, the sum total of each item may be less than 100%.

- 31 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

C. Details of Investment Real Estate and Trust Real Estate(a) Overview of Investment Real Estate Properties and Trust Real Estate
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Site Area(m2) (Note 1)

Usage(Note 2)

Total Floor Area(m2) (Note 3)

A-1

KDX Nihonbashi 313 Building

1,047.72

Offices

8,613.09

A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48

A-4

KDX Hatchobori Building

992.20

Offices

4,800.43

Offices, Retail Shops
Residential, Parking
Storage
Retail Shops, Offices
Parking
Offices, Retail Shops
Residential

A-5

KDX Nakano-Sakaue Building

1,235.16

6,399.42

A-6

Harajuku F.F. Building

699.67

A-7

KDX Minami Aoyama Building

369.47

A-8

Kanda Kihara Building

410.18

Offices

2,393.94

A-13

KDX Kojimachi Building

612.17

Offices, Retail Shops

5,323.81

A-14

KDX Funabashi Building

1,180.41

Offices, Retail Shops

5,970.12

Offices, Retail Shops
Parking

8,483.17

3,812.44
1,926.98

A-16

Toshin 24 Building

1,287.16

A-17

KDX Ebisu Building

724.22

Offices, Retail Shops

4,394.58

Offices, Retail Shops
Parking

3,592.38

Offices, Parking

3,804.86

A-19

KDX Hamamatsucho Building

504.26

A-20

KDX Kayabacho Building

617.17

Offices, Retail Shops
Parking
Offices, Retail Shops
Parking

A-21

KDX Shinbashi Building

536.11

3,960.22

A-22

KDX Shin-Yokohama Building

705.00A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
7,885.40

6,180.51

A-29

KDX Higashi-Shinjuku Building

1,340.97

Offices
Storage, Parking

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87

A-31

KDX Monzen-Nakacho Building

580.99

Offices, Retail Shops

2,668.91

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00

A-34

KDX Hon-Atsugi Building

724.62

Offices, Retail Shops

3,603.63

Offices, Parking
Retail Shops
Offices, Storage
Retail Shops, Parking
Mechanical Room

A-35

KDX Hachioji Building

460.62A-37

KDX Ochanomizu Building

1,515.28

A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63

A-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04

A-45

KDX Roppongi 228 Building

408.86

Offices, Retail Shops

2,235.30

Offices, Retail Shops
Office Room
Parking, Storage
Offices, Retail Shops
Parking, Garbage Room

2,821.21
7,720.08

A-46

Hiei Kudan-Kita Building

1,844.83

11,425.31

A-47

KDX Shin-Yokohama 381 Building(Note 7)

1,229.24

A-48

KDX Kawasaki-Ekimae Hon-cho Building

1,968.13

Offices

7,420.87

A-50

KDX Ikejiri-Oohashi Building

834.79

Offices

3,482.96

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41

A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60
3,439.37

10,290.30

A-55

Shin-toshin Maruzen Building

457.64

Offices, Retail Shops
Parking

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11
1,618.65

A-59

KDX Iwamoto-cho Building

266.86

Offices
Residential Complex

A-60

KDX Harumi Building

2,230.69

Offices, Retail Shops

12,694.32

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90

A-62

Koishikawa TG Building

1,250.42

Offices, Parking

5,862.02

A-63

Gotanda TG Building

582.90

Offices, Parking

4,440.61

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62- 32 -

Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)

SRC
B2F9
SRC
B1F9
SRC・RC
B1F8April 1974

7.32

January 1987

3.71

June 1993

3.74

SRC
B1F11

August 1992

3.72

November 1985

5.88

November 1988

6.34

May 1993

4.26

May 1994

2.34

April 1989

4.17

September 1984

6.05

January 1992

7.35

September 1999

4.86

October 1987

4.25

February 1992

4.44

September 1990

6.88

October 1992

4.70

March 1990

7.11

January 1990

6.03

November 1992

8.29

September 1986

3.83

July 1986

4.58

June 1988

4.00

May 1995

6.38

December 1985

7.53

August 1982

5.93

October 1992

10.39

August 1989

5.92

April 1989

6.45

March 1988

4.33

March 1988

10.64

February 1985

4.71

September 1988

6.75

September 1988

3.71

October 1992

4.89

July 1990

5.99

May 1994

5.14

August 2000

5.05

March 2008

5.00

February 2008

7.12

April 1992

3.78

November 1989

6.61

April 1988

8.30

October 2006

7.86

SRC
F11
SRC
B1F9
SRC・RC・S
B1F8
SRC
B2F9
SRC
B1F8
SRC
B1F8
SRC
B1F7
S
F9
SRC
F8
SRC・S
B1F8
S
B1F9
RC
F5
SRC
B1F8
SRC
B1F9
SRC
B1F8
SRC
F8
SRC
B1F9
S
F10
SRC
F8
SRC
F9
SRC
B1F7
RC
F5
SRC・RC
B1F9
SRC
B1F9
SRC・S
B1F11
SRC・RC
B1F10
SRC
B1F9
RC
B2F9
SRC
F9
SRC
B1F7
SRC
B1F8
SRC
B1F8
S
F8
S
F9
S・SRC
B1F11
S・SRC
B1F8
SRC
B1F8
SRC
B1F9
SRC
F9

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other Regional
Areas

No.

Property Name

Site Area(m2) (Note 1)

Usage(Note 2)

Total Floor Area(m2) (Note 3)

A-66

KDX Shinjuku Building

1,118.12

Offices, Retail Shops
Parking

10,348.02

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

4,724.62

A-68

KDX Nihonbashi Honcho Building

583.40

Offices, Parking

5,110.45

A-71

KDX Iidabashi Building

967.38

Offices, Parking

5,422.64

A-72

KDX Higashi-Shinagawa Building

3,115.45

Offices

10,138.65

A-73

KDX Hakozaki Building

971.83

Offices, Parking

6,332.48
3,712.25

A-74

KDX Shin-Nihonbashi Building

444.32

Offices, Retail Shops
Parking

A-75

KDX Nihonbashi Kabutocho Building

1,920.79

Offices, Parking

11,705.49

A-78

KDX Tachikawa Ekimae Building

464.95

Offices

2,896.48

A-83

KDX Fuchu Building

2,400.00

Offices, Parking

16,647.00

Offices, Retail Shops
Parking

6,444.31

Offices

3,455.90

A-84

KDX Kasuga Building

1,319.24

A-85

KDX Nakameguro Building

730.26

Offices, Retail Shops
Parking, Residential
Offices, Residential
Parking
Offices, Retail Shops,
Parking

A-86

KDX Omiya Building

775.67A-87

Itopia Nihonbashi SA Building

1,193.91

A-88

KDX Shinjuku 6-chome Building

1,072.03

A-89

KDX Takanawadai Building

2,547.15

A-90

KDX Ikebukuro Building

472.94

A-91

KDX Mita Building

548.72

A-92

KDX Akihabara Building

374.88Retail Shops, Office2,979.14

A-93

KDX Iidabashi Square

1,341.98

Offices, Parking

6,764.37

A-94

KDX Musashi-Kosugi Building

3,210.09

Offices, Retail Shops

16,094.14

A-95

KDX Toyosu Grand Square

20,403.07

Offices, Retail Shops

63,419.60

A-96

KDX Takadanobaba Building

1,511.58

Offices, Parking

6,576.07
3,477.86

OfficeOffices, Retail Shops
Parking
Offices, Retail Shops
Parking

5,055.50
7,362.25
5,907.00
9,265.03
3,848.18
5,007.98

A-99

KDX Ikebukuro West Building

603.21

Offices, Retail Shops,
Parking

A-101

KDX Yokohama Building

2,499.38

Offices, Parking

15,894.75

A-102

KDX Yokohama Nishiguchi Building

1,029.45

Offices

6,556.59
6,478.89

A-103

KDX Shin-Yokohama 214 Building

998.00

Offices, Retail Shops,
Parking

A-105

BUREX Toranomon

466.96

Offices

2,808.24

A-107

KDX Ginza East Building

1,216.99

Offices, Parking

6,413.60

A-108

Pentel Building

2,502.63

Offices, Bank,
Residential

18,880.89

A-109

KDX Hamamatsucho Center Building

835.83

Offices, Parking

3,981.69

A-112

Nittochi Toranomon Building

1,564.12

A-12

Portus Center Building

13,936.63

A-42

KDX Karasuma Building

1,788.67

A-44

KDX Sendai Building

987.78

Offices, Retail Shops
Parking
Offices, Retail Shops
Storage, Parking

11,212.05
79,827.08

Offices

12,632.68

Offices

5,918.30

Offices, Retail Shops
Parking
Offices, Storage
Parking

A-53

KDX Hakata-Minami Building

1,826.25

A-54

KDX Kitahama Building

751.92

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retail Shops

9,594.00

A-69

KDX Kobayashi-Doshomachi Building(Note 9)1,561.04

Offices, Parking
Retail Shops

10,723.83

A-70

KDX Sapporo Building

819.44

Offices

5,503.90

A-79

KDX Nagoya Ekimae Building

1,354.10

Offices, Retail Shops

13,380.30

A-82

KDX Higashi Umeda Building

804.50A-97

KDX Utsunomiya Building

1,412.00

A-98

KDX Hiroshima Building

706.78

Offices, Parking Tower

5,718.83

A-100

Senri Life Science Center Building

5,911.08

Offices, Retail Shops
Parking

49,260.78- 33 -

Offices, Retail Shops
Parking
Offices, Retail Shops
Parking

13,238.16
4,652.96

6,805.76
7,742.18

Type of Structure(Note 4)
S・RC
B4F11
SRC
F9
SRC
B1F9
SRC
B1F8
S・RC
B1F5
SRC
B1F10
S
B1F10
S・SRC
B1F8
S
B1F8
SRC・S
B1F14
SRC
B1F10
SRC
F7
①S・SRC B1F8
②S F3
SRC
B1F10
SRC・RC
B2F10
SRC
B1F9
S・RC
B1F10
S・SRC
B3F11
SRC
B1F9
SRC
B1F8
S
B1F11
S
F11
SRC・RC
B2F7
SRC
F10
SRC・S
B1F11
SRC
B1F9
SRC
B1F8
S
F13
SRC
B1F9
S・SRC
B3F14
SRC
F7
S・SRC
B1F11
SRC・S
B2F25
SRC
B1F8
SRC
B1F10
SRC
B1F9
S
F10
S
F11
S・SRC
B1F12
SRC
B1F9
S・SRC
B2F15
S・SRC
B1F10
S・SRC
B1F10
SRC
B1F10
SRC・S
B3F21

Completion Date
(Note 5)PML(%)
(Note 6)

May 1993

2.01

November 1991

6.80

January 1984

4.48

March 1990

4.49

January 1993

5.13

November 1993

4.42

November 2002

3.42

November 1998

4.89

February 1990

2.19

March 1996

1.83

June 1992

7.43

October 1985

6.50

April 1993

4.40

July 1995

3.64

March 1990

6.11

October 1985

6.17

March 2009

3.78

March 1993

4.81

December 1973

4.47

January 1994

4.48

May 2013

8.11

April 2008

3.84

October 1988

6.06

July 1988

4.45

March 1994

8.44

October 1988

7.59

November 1989

4.72

July 2011

6.57

August 1991

5.95

November 1990

6.22

December 1985

4.21

October 2013

7.93

September 1993

6.70

October 1982

3.88

February 1984

2.71

June 1973

0.93

July 1994

6.32

April 2009

1.12

July 2009

10.99

October 1989

0.41

April 1986

8.98

July 2009

6.11

February 1999

0.98

January 1990

6.98

June 1992

1.34

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

732.14

Offices

5,862.22

-

-

-

A-106

KDX Sakura-dori Building

2,420.43

A-110

KDX Shin-Osaka Building

1,016.54

A-111

Nichigin-mae KD Building

Residential

Other

19,680.16

882.96

Subtotal of Office Buildings (92 properties)
Tokyo
Metropolitan
B-19
Residence Charmante Tsukishima
Area
Subtotal of Residential Properties (1 property)

Total Floor Area(m2) (Note 3)

Offices, Retail Shops
Parking
Offices, Retail Shops
Lounge, Storage
Offices, Parking
Retail Shops

KDX Minami-Honmachi Building

Other Regional
Areas

Tokyo
Metropolitan
Area

Usage
(Note 2)

A-104
OfficeBuildings

CentralUrban
RetailProperties

Site Area(m2) (Note 1)

4,252.86

Residential Complex

7,987.35---

1,240.51

Retail Shops

6,302.58

C-2

KDX Yoyogi Building

228.74Retail Shops, Offices

1,269.06

Ginza 4chome Tower

PML(%)(Note 6)

December 2009

5.31

August 1992

10.49

May 1992

10.28

September 2006

9.67-

January 2004

5.38

-

S・RC・SRC
B2F7
SRC
F8
S
B1F13
-

-

-

-

-

-

-

-

-

Avg. 21.2yrs (Note 8)

2.38

-

Retail Shops, Offices
Parking-

1,355.13-

688.52Completion Date
(Note 5)

Avg. 22.0yrs (Note 8)

SRC
B1F10

18,115.39

Frame Jinnan-zaka

C-4

S・RC
B1F12
S
B1F18
SRC
B1F11
S
B1F10
-

7,694.03

C-1

Subtotal of Central Urban Retail Properties (3 properties)
Tokyo
Metropolitan
D-2
Shinjuku 6-chome Building (Land)
Area
Subtotal of Others (1 property)
Total of 97 properties

Type of Structure(Note 4)

6,787.33

Avg. 12.2yrs-

March 2005

6.80

August 1991

4.55

November 2008

5.23

Avg. 10.9yrs-

Note 1: Site area data is based on figures recorded in the land register (including relevant figures for leasehold land, if any). Data may not match with the actual current
status. In the case of buildings with compartmentalized ownership, the figure indicates the site area of the entire land subject to site rights.
Note 2: Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of exclusively-owned area is shown.
Note 3: Total floor area is based on figures recorded in the land register and does not include related structures. The total floor area for the entire building is reported forcompartmentalized ownership.
Note 4: Type of structure data is based on data recorded in the land register. For buildings with compartmentalized ownership, the structure and the number of floors of
the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating to structure and thenumber of floors:
SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level.
For example: B2F9: Two floors below ground level and nine floors above ground level.
Note 5: Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data are calculated using theweighted-average based on acquisition prices as of April 30, 2016, and are rounded down to the first decimal place.
Note 6: Probable Maximum Loss (PML) data is based on a survey provided by Sompo Risk Management & Health Care Inc. as of May 2016. Sompo Japan
Nipponkoa Risk Management Inc. merged with Healthcare Frontier Japan Inc. and Sompo Japan Nipponkoa Healthcare Services Inc. on April 1, 2016 and haschanged its name to Sompo Risk Management & Health Care Inc.
Note 7: KDX Shin-Yokohama 381 Building is comprised from two compartmentalized buildings within a single building. By consolidating them together, they
become a property that comprises the entire building (total ownership ratio: 100%).
Note 8: Upon calculating the average portfolio age, the completion date of KDX Shin-Yokohama 381 Building is based on the completion date of its existing tower.
Note 9: KDX Kobayashi Doshomachi Building includes the term leasehold interest with a special agreement to transfer building.

- 34 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(b) Capital Expenditure① Planned capital expenditures
Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the twenty-third fiscal period (May 1, 2016 to
October 31, 2016) are as follows. Planned capital expenditure may include portions classified into expenses for accounting purposes.
Planned Amount of Capital Expenditure(Millions of Yen)
Property Name
Schedule
PurposePaid in the Fiscal Total Amount(Location)
Total
Period Under
Previously
ReviewPaid
Air conditioning system
KDX Sakura-dori Building
construction, Renewal of
May 2016
308(Nagoya, Aichi)
mechanical car parking system,
to October 2016
other
KDX Yokohama Building
Air conditioning system
As above269(Yokohama, Kanagawa)construction, other
Renovation of external wall,
Senri Life Science Center Building
Upgrade of exclusively-owned
As above159(Toyonaka, Osaka)
area, other
KDX Hamamatsucho Center Building
Air conditioning system
As above48(Minato-ku, Tokyo)
construction, other
Harajuku F.F. Building
Air conditioning system
As above
37(Shibuya-ku, Tokyo)
construction, other
KDX Hiroshima Building
Renewal of mechanical car
As above
20(Hiroshima, Hiroshima)
parking system, other
KDX Kiba Building
Upgrade of exclusively-owned
As above
18(Koto-ku, Tokyo)
area, other
Note: The planned amounts of capital expenditure are truncated at less than ¥1 million.
② Capital Expenditures during the Fiscal Period under Review (fiscal period ended April 30, 2016)
The Investment Corporation undertook the following major capital expenditures. In the fiscal period under review (fiscal period ended October 31, 2015),
the Investment Corporation completed works across its entire portfolio totaling ¥1,571 million. This total comprised of ¥1,120 million in capital expendituresand ¥451 million for repairs, maintenance and renovation expenses.
Property Name
(Location)
KDX Iidabashi Square(Shinjuku-ku,Tokyo)
Pentel Building(Chuo-ku, Tokyo)
KDX Nagoya Ekimae Building(Nagoya, Aichi)
KDX Kawasaki-Ekimae Hon-cho
Building (Kawasaki, Kanagawa)
KDX Shin-Yokohama 214 Building(Yokohama, Kanagawa)
KDX Ikebukuro West Building(Toshima-ku, Tokyo)

Schedule

PurposeAmount of Capital Expenditures(Millions of Yen)

Upgrade of exclusively-owned area andcommon area, Air conditioning systemconstruction, otherNovember 2015
to April 2016509

Air conditioning system construction, other

As above76

As above54

As above37

Upgrade of common area, other

As above28

Upgrade of common area, Renewal ofmechanical car parking system, other

As above28

Elevator repair work,
Substation equipment renovation, other
Automatic fire alarm and emergency
broadcasting system construction,
Upgrade of common area, other

Others384

Portfolio Total

1,120

Note: The amounts of the capital expenditures are truncated at less than ¥1 million.

- 35 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)③ Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
The Investment Corporation formulates long-term repairs, maintenance and renovation plans on an individual investment property basis and allocates a
portion of its cash flow generated during the period to a reserve for repairs, maintenance and renovation to meet large-scale renovation over the medium- tolong-terms. The following amount has been transferred to the reserve from period cash flow.
(Millions of Yen)
Twenty-second
Fiscal Period(November 1, 2015 toApril 30, 2016)

Eighteenth
Fiscal Period(November 1, 2013 toApril 30, 2014)

Nineteenth
Fiscal Period(May 1, 2014 to October
31, 2014)

Twentieth
Fiscal Period(November 1, 2014 toApril 30, 2015)

Twenty-first
Fiscal Period(May 1, 2015 to October
31, 2015)

Balance at the beginningof the period

502

493

495

465

-

Reserve for the period

3

12

8

-

-

Fiscal period

Reversal of reserve for the
11
10
37
465
periodBalance brought forward to
493
495
465
the next period
Note: The Investment Corporation has decided not to reserve amount for repairs, maintenance and renovation expenses since the twenty-first fiscal period because
they are covered within the scope of the cash flow in each period.

- 36 --

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(c) Details of the Tenants
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Total Leasable
Floor Area(m2)
(Note 1)

Total Leased
Floor Area(m2)
(Note 2)

No. ofLeasable
Residential
Units(Note 3)

No. ofLeasedResidential
Units(Note 4)

No. ofTenants(Note 5)

Occupancy
Ratio (%）
(Note 6)

Rental and Other
Operating Revenues(Thousands of Yen)
(Note 7)

Leasehold andSecurity Deposits(Thousands of Yen)
(Note 8)A-1

KDX Nihonbashi 313 Building

5,889.32

5,889.32

-

-

11

100.0

191,975

231,769

A-3

Higashi-Kayabacho Yuraku Building

4,379.66

4,379.66

-

-

7

100.0

137,148

216,172

A-4

KDX Hatchobori Building

3,323.14

3,323.14

-

-

4

100.0

105,735

105,161

A-5

KDX Nakano-Sakaue Building

4,390.25

4,026.06

18

14

22

91.7

87,02887,611

A-6

Harajuku F.F. Building

3,071.15

3,071.15

-

-

2

100.0

102,876

141,704

A-7

KDX Minami Aoyama Building

1,814.56

1,814.56

-

-

8

100.0

74,163

107,055

A-8

Kanda Kihara Building

1,947.80

1,947.80

-

-

11

100.0

51,815

92,142

A-13

KDX Kojimachi Building

3,718.99

3,718.99

-

-

9

100.0

136,061

198,655

A-14

KDX Funabashi Building

3,849.82

3,849.82

-

-

21

100.0

102,804

135,283

A-16

Toshin 24 Building

6,621.19

6,621.19

-

-

22

100.0

183,945

251,741

A-17

KDX Ebisu Building

3,074.47

2,562.67

-

-

5

83.4

130,991

240,869

A-19

KDX Hamamatsucho Building

2,724.35

2,724.35

-

-

9

100.0

97,351

126,185

A-20

KDX Kayabacho Building

3,019.93

3,019.93

-

-

7

100.0

82,644

101,101

A-21

KDX Shinbashi Building

2,803.86

2,803.86

-

-

8

100.0

125,197

166,609

A-22

KDX Shin-Yokohama Building

4,782.67

3,763.88

-

-

15

78.7

79,272

98,570A-26

KDX Kiba Building

2,455.44

2,162.54

-

-

5

88.1

44,12853,725

A-27

KDX Kajicho Building

2,564.79

2,564.79

-

-

10

100.0

69,704

87,872A-29

KDX Higashi-Shinjuku Building

5,914.28

5,914.28

-

-

7

100.0

129,491

119,296

A-30

KDX Nishi-Gotanda Building

3,881.89

1,841.01

-

-

5

47.4

61,95879,040A-31

KDX Monzen-Nakacho Building

2,008.74

2,008.74

-

-

7

100.0

39,587

46,740A-32

KDX Shiba-Daimon Building

5,997.36

5,997.36

-

-

10

100.0

154,978

204,608

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

2

100.0

67,092110,237

A-34

KDX Hon-Atsugi Building

2,747.66

2,657.93

-

-

11

96.7

51,11468,316A-35

KDX Hachioji Building

2,163.36

1,849.55

-

-

9

85.5

40,04747,453A-37

KDX Ochanomizu Building

5,892.44

5,678.52

-

-

8

96.4

186,994

245,634

A-38

KDX Nishi-Shinjuku Building

1,593.60

1,593.60

-

-

9

100.0

45,79658,051A-41

KDX Shinjuku 286 Building

2,446.12

2,446.12

-

-

7

100.0

78,54899,609A-45

KDX Roppongi 228 Building

1,940.06

1,940.06

-

-

8

100.0

58,967

91,773

A-46

Hiei Kudan-Kita Building

6,908.84

6,908.84

-

-

14

100.0

232,298

321,424

A-47

KDX Shin-Yokohama 381 Building

8,131.46

7,807.20

-

-

38

96.0

163,920

231,948

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

5,126.69

5,126.69

-

-

1

100.0

105,515

93,529A-50

KDX Ikejiri-Oohashi Building

2,458.64

2,458.64

-

-

8

100.0

69,95596,301A-51

KDX Hamacho Nakanohashi
Building

2,238.01

2,238.01

-

-

9

100.0

66,70588,671A-52

KDX Kanda Misaki-cho Building

1,315.96

1,315.96

-

-

8

100.0

28,30840,408

A-55

Shin-toshin Maruzen Building

1,912.28

1,912.28

-

-

5

100.0

56,91874,077A-56

KDX Jimbocho Building

2,321.80

2,321.80

-

-

3

100.0

65,721

96,451A-57

KDX Gobancho Building

1,649.02

1,649.02

-

-

7

100.0

43,38554,247A-59

KDX Iwamoto-cho Building

1,529.91

1,529.91

3

3

10

100.0

49,25963,300A-60

KDX Harumi Building

9,294.00

8,657.86

-

-

9

93.2

215,570

300,148

A-61

KDX Hamamatsucho Dai-2 Building

1,954.23

1,954.23

-

-

8

100.0

61,591

98,026

A-62

Koishikawa TG Building

3,945.54

3,945.54

-

-

5

100.0

128,342

156,741

A-63

Gotanda TG Building

3,158.67

3,158.67

-

-

10

100.0

91,220136,590

A-64

KDX Nihonbashi 216 Building

1,615.20

1,615.20

-

-

8

100.0

57,31593,402A-66

KDX Shinjuku Building

5,836.68

5,736.09

-

-

21

98.3

235,573

310,963

A-67

KDX Ginza 1chome Building

3,573.59

3,507.89

-

-

3

98.2

105,329

186,478

A-68

KDX Nihonbashi Honcho Building

3,998.39

3,998.39

-

-

8

100.0

134,703

210,391

A-71

KDX Iidabashi Building

4,429.25

4,429.25

-

-

5

100.0

148,935

230,280

A-72

KDX Higashi-Shinagawa Building

7,117.09

6,289.22

-

-

4

88.4

78,572

201,171

A-73

KDX Hakozaki Building

3,992.60

3,992.60

-

-

8

100.0

111,090

152,576

A-74

KDX Shin-Nihonbashi Building

2,658.79

2,658.79

-

-

8

100.0

86,987

124,136- 37 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other Regional
Areas

No.

Property NameTokyo
Metropolitan
Area

No. ofLeasedResidential
Units(Note 4)

No. ofTenants(Note 5)

Occupancy
Ratio (%）
(Note 6)

Rental and Other
Operating Revenues(Thousands of Yen)
(Note 7)

Leasehold andSecurity Deposits(Thousands of Yen)
(Note 8)KDX Nihonbashi Kabutocho
Building

7,562.93

7,562.93

-

-

7

100.0

280,105

330,311

A-78

KDX Tachikawa Ekimae Building

1,612.13

1,612.13

-

-

5

100.0

64,20686,432A-83

KDX Fuchu Building

10,151.48

10,004.33

-

-

38

98.6

288,895

361,953

A-84

KDX Kasuga Building

4,345.13

4,345.13

-

-

15

100.0

126,057

150,464

A-85

KDX Nakameguro Building

2,724.03

2,328.20

-

-

5

85.5

75,788104,447

A-86

KDX Omiya Building

3,814.00

3,814.00

1

1

18

100.0

116,644

184,758

A-87

Itopia Nihonbashi SA Building

3,106.42

3,106.42

8

8

14

100.0

99,450119,839

A-88

KDX Shinjuku 6-chome Building

4,037.44

4,037.44

-

-

7

100.0

93,04886,041A-89

KDX Takanawadai Building

6,951.88

6,537.12

-

-

7

94.0

199,217

246,085

A-90

KDX Ikebukuro Building

3,110.65

3,110.65

-

-

10

100.0

130,531

197,990

A-91

KDX Mita Building

3,331.59

3,018.54

-

-

11

90.6

101,103

141,490

A-92

KDX Akihabara Building

2,289.09

2,289.09

-

-

7

100.0

81,333

99,414A-93

KDX Iidabashi Square

4,571.92

2,181.66

-

-

3

47.7

1,151

139,382

A-94

KDX Musashi-Kosugi Building

12,978.52

12,978.52

-

-

9

100.0

429,554659,542

A-95

KDX Toyosu Grand Square

11,797.86

11,797.86

-

-

15

100.0

235,851477,628

A-96

KDX Takadanobaba Building

4,585.47

4,269.37

-

-

10

93.1

138,139

148,555

A-99

KDX Ikebukuro West Building

2,553.06

2,553.06

-

-

6

100.0

71,71557,774A-101

KDX Yokohama Building

10,932.12

10,770.72

-

-

25

98.5

284,617330,249

A-102

KDX Yokohama Nishiguchi Building

4,980.45

4,980.45

-

-

14

100.0

119,043

146,309

A-103

KDX Shin-Yokohama 214 Building

4,615.14

4,412.63

-

-

16

95.6

79,144

120,851

A-105

BUREX Toranomon

1,900.93

1,900.93

-

-

1

100.0

49,99624,998A-107

KDX Ginza East Building

4,458.02

4,458.02

-

-

12

100.0

120,320

109,364

A-108

Pentel Building

4,346.66

4,126.84

5

5

10

94.9

108,536

148,911A-109

KDX Hamamatsucho Center
Building

3,052.64

3,052.64

-

-

8

100.0

102,719

126,586

A-112

Nittochi Toranomon Building

8,179.00

8,179.00

-

-

4

100.0

36,751

664,950

A-12

Portus Center Building

11,582.43

11,272.06

-

-

29

97.3

287,916355,047

A-42

KDX Karasuma Building

8,743.96

8,684.73

-

-

39

99.3

207,640

281,454

A-44

KDX Sendai Building

3,962.37

3,962.37

-

-

34

100.0

93,008176,184

A-53

KDX Hakata-Minami Building

9,826.80

9,578.33

-

-

51

97.5

164,833

238,551

A-54

KDX Kitahama Building

3,995.50

3,569.96

-

-

10

89.3

75,81981,417

A-58

KDX Nagoya Sakae Building

6,923.12

6,923.12

-

-

16

100.0

184,310233,229

A-69

KDX Kobayashi-Doshomachi
Building

7,072.23

7,072.23

-

-

12

100.0

187,609250,552

A-70

KDX Sapporo Building

3,788.51

3,788.51

-

-

21

100.0

93,184

121,360

A-79

KDX Nagoya Ekimae Building

7,931.39

7,931.39

-

-

19

100.0

315,105

518,486

A-82

KDX Higashi Umeda Building

4,986.24

4,986.24

-

-

8

100.0

127,701

107,939

A-97

KDX Utsunomiya Building

5,328.77

5,328.77

-

-

24

100.0

129,634

148,765

A-98

KDX Hiroshima Building

3,982.43

3,602.47

-

-

20

90.5

62,351

92,681

A-100

Senri Life Science Center Building

17,209.90

16,467.43

-

-

57

95.7

721,185

1,109,401

A-104

KDX Minami-Honmachi Building

5,285.95

5,285.95

-

-

23

100.0

107,845

143,523

A-106

KDX Sakura-dori Building

12,339.41

12,119.62

-

-

32

98.2

314,304

459,419A-110

KDX Shin-Osaka Building

5,977.39

5,977.39

-

-

17

100.0

126,062

146,475

A-111

Nichigin-mae KD Building

B-19

Residence Charmante Tsukishima

4,360.60

3,900.66

-

-

12

89.5

26,351

121,135

437,261.64

423,054.41

35

31

1,160

96.8

11,713,435

16,824,226

7,711.14

7,711.14

140

140

1
(Note 9)100.0

148,134

50,5807,711.14

7,711.14

140

140

1

100.0

148, 134

50,580

C-1

Frame Jinnan-zaka

4,646.51

4,438.15

-

-

12

95.5

219,186

338,063

C-2

KDX Yoyogi Building

1,176.25

1,176.25

-

-

11

100.0

68,101

105,833

C-4

Ginza 4chome Tower

5,624.23

5,624.23

-

-

4

100.0

276,973

346,121

Subtotal of Central Urban Retail Properties (3 properties)

11,446.99

11,238.63

-

-

27

98.2

564,261

790,018

Subtotal of Residential Properties (1 property)
CentralUrban Retail
Properties

Total Leased
Floor Area(m2)
(Note 2)

A-75

Subtotal of Office Buildings (92 properties)
Residential

Total Leasable
Floor Area(m2)
(Note 1)

No. ofLeasable
Residential
Units(Note 3)

Tokyo
MetropolitanArea- 38 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

No.

Property Name

OthersTokyo
Metropolitan
Area

D-2

Shinjuku 6-Chome Building (Land)

Total Leasable
Floor Area(m2)
(Note 1)

Total Leased
Floor Area(m2)
(Note 2)

No. ofLeasable
Residential
Units(Note 3)

1,355.13

1,355.13--

1,355.13

1,355.13

-

-

1

100.0

68,12956,770171

1,189(Note 10)96.9

12,493,960

17,721,595

Subtotal of Others (1 property)
Total of 97 properties

457,774.90

443,359.31

175

No. ofLeasedResidential
Units(Note 4)

No. ofTenants(Note 5)

Occupancy
Ratio (%）
(Note 6)

Rental and Other
Operating Revenues(Thousands of Yen)
(Note 7)

Leasehold andSecurity Deposits(Thousands of Yen)
(Note 8)1

100.0

68,12956,770Occupancy Ratio over the Past Five Years
October 31, 2011

94.7%

April 30, 2012

95.4%

October 31, 2012

95.5%

April 30, 2013

93.9%

October 31, 2013

95.8%

April 30, 2014

96.0%

October 31, 2014

95.6%

April 30, 2015

96.5%

October 31, 2015

94.9%

April 30, 2016

96.9%

Note 1: Total leasable floor area refers to the leasable floor area for a building (aggregate total of the leasable floor area of each building in the case of more than one
building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans, etc. However, theindicated figure of rentable area for Pentel Building includes rentable area for land stated in the lease agreement. The indicated figure of rentable area for
Shinjuku 6-chome Building (Land) is rentable area stated in the land lease agreement.
Note 2: Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
Note 3: The number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential purposes.
Note 4: The number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end tenantsor sub-lease agreements are signed.
Note 5: The number of tenants refers to the actual number of end tenants for each property. However, for Residence Charmante Tsukishima, please refer to Note 9.
Note 6: Occupancy ratio is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place.
Note 7: Rental and other operating revenues refers to the total amount of revenues generated during the fiscal period under review from real estate rental operations
including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
(Reference) Rental and other operating revenues for properties sold during the twenty-second fiscal period
Rental and Other Operating Revenues (Thousands of Yen)

Type of Property

No.

Property Name

Office Building

A-39

KDX Toranomon Building

84,272

Office Building

A-40

Toranomon Toyo Building

233,795

Note 8: Leasehold and security deposits refers to the total of the balances of security deposits held (including net security deposits in the case of discount) andguarantee deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest thousand yen.
Note 9: Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-term lease: until January 31, 2019) fixed-term building lease
contract (term of contract: to January 30, 2029) with Sekiwa Real Estate, Ltd., a master lessor, the total number of tenants is indicated as 1.
Note 10: The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.
(d) Information concerning major real estate properties
There were no major real estate properties with rental and other operating revenues exceeding 10% of total rental and other operating revenues for thetwenty-second fiscal period (fiscal period ended April 30, 2016).

- 39 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(e) Information concerning major tenants① Tenant which holds more than 10% of the total leased area: Not applicable② Reference: Major end tenants

Name of End Tenant

Property Name(As of April 30, 2016)
Leased Floor Percentage of Total Leased
Area (m2)
Floor Area (Note 1)
7,711.14
1.7%

1 Sekiwa Real Estate, Ltd.

Residence Charmante Tsukishima

2 N / A (Note 2)

KDX Kawasaki-Ekimae Hon-cho Building

5,126.69

1.2%

3 N / A (Note 2)

KDX Musashi-Kosugi Building, KDX Hiroshima Building

4,856.75

1.1%

4 ADK Arts Inc.

Nittochi Toranomon Building

4,719.91

1.1%

5 JASTEC Co., Ltd.

KDX Takanawadai Building

4,312.83

1.0%

Subtotal

26,727.32

6.0%

Total Portfolio

443,359.31

100.0%

Note 1: Percentage of total leased floor area refers to the floor area leased to each end tenant as a proportion of total leased floor area. Figures are rounded to thenearest first decimal place.
Note 2: Not disclosed due to the tenants’ request.

- 40 -

a0011

a0031

a0041

a0051

a0061

a0071

a0081

a0131

a0141

a0161

【Reference】

Earnings Performance for the Individual Properties for the 22nd Fiscal Period (November 1, 2015 to April 30, 2016)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A001

Property NameKDX Nihonbashi
313 Building

A003

A004

A005

HigashiKDX Hatchobori KDX NakanoKayabacho
Building
Sakaue Building
Yuraku Building

a0171

Price Information

Acquisition price (\ Millions)

a0201

a0211

A006

A007

A008

A013

A014

A016

A017

A019

A020

A021

Harajuku F.F.
Building

KDX Minami
Aoyama Building

Kanda Kihara
Building

KDX Kojimachi
Building

KDX Funabashi
Building

Toshin 24
Building

KDX Ebisu
Building

KDX
Hamamatsucho
Building

KDX Kayabacho
Building

KDX Shinbashi
Building

May 1, 2006

May 1, 2006

May 1, 2006

May 1, 2006

4,640

3,460

2,780

3,728

August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 November 1, 2005 March 1, 2006 May 1, 2006
5,940
4,450
3,680
2,533
2,450
2,270
1,950
5,950
2,252
5,300

Acquisition Date

a0191

※As of April 30, 2016

Percentage of total portfolio

1.5%

1.1%

0.9%

0.6%

0.6%

0.6%

0.5%

1.5%

0.6%

1.3%

1.2%

0.9%

0.7%

0.9%

Net book value (\ Millions)

5,905

4,152

3,329

2,373

2,388

2,211

1,804

5,584

2,261

4,877

4,449

3,090

2,751

3,772

Appraisal value at the end of period (\ Millions)

6,710

4,920

3,230

2,340

3,040

2,460

1,620

4,610

2,060

4,760

4,720

3,360

2,530

4,470

Percentage of total appraisal value

1.7%

1.2%

0.8%

0.6%

0.8%

0.6%

0.4%

1.1%

0.5%

1.2%

1.2%

0.8%

0.6%

1.1%

11

7

4

22

2

8

11

9

21

22

5

9

7

8

Leasable floor area (㎡)5,889.32

4,379.66

3,323.14

4,390.25

3,071.15

1,814.56

1,947.80

3,718.99

3,849.82

6,621.19

3,074.47

2,724.35

3,019.93

2,803.86

Leased floor area（㎡)5,889.32

4,379.66

3,323.14

4,026.06

3,071.15

1,814.56

1,947.80

3,718.99

3,849.82

6,621.19

2,562.67

2,724.35

3,019.93

2,803.86

As of April 30, 2016

100.0%

100.0%

100.0%

91.7%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

83.4%

100.0%

100.0%

100.0%

As of October 31, 2015

100.0%

100.0%

100.0%

94.8%

100.0%

100.0%

100.0%

100.0%

95.6%

100.0%

100.0%

100.0%

100.0%

100.0%

As of April 30, 2015

100.0%

100.0%

93.1%

96.5%

100.0%

100.0%

88.2%

100.0%

99.8%

97.4%

100.0%

100.0%

84.9%

100.0%

As of October 31, 2014

100.0%

100.0%

100.0%

95.2%

100.0%

100.0%

76.2%

100.0%

96.5%

94.1%

100.0%

100.0%

84.9%

100.0%

As of April 30, 2014

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

88.0%

100.0%

100.0%

94.4%

100.0%

100.0%

84.9%

86.8%

As of October 31, 2013100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

76.2%

100.0%

100.0%

91.1%

83.4%

100.0%

100.0%

100.0%

As of April 30, 2013

99.7%

89.1%

100.0%

100.0%

100.0%

100.0%

86.5%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

As of October 31, 2012

100.0%

89.1%

100.0%

100.0%

100.0%

88.4%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

As of April 30, 2012

94.6%

100.0%

100.0%

98.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

99.5%

As of October 31, 2011

85.2%

100.0%

100.0%

84.1%

100.0%

100.0%

100.0%

100.0%

98.7%

96.2%

100.0%

100.0%

100.0%

100.0%

Number of tenants

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 22nd Fiscal Period

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

191,975

137,148

105,735

87,028102,876

74,16351,815136,061

102,804

183,945

130,991

97,35182,644125,197

Rental revenues

175,235

126,030

90,00464,16595,56268,30046,964

117,253

88,837

148,736

116,081

88,842

73,844

117,421

Other operating revenues

16,73911,11815,731

22,862

7,314

5,862

4,851

18,807

13,96735,20914,910

8,508

8,799

7,776

57,39634,09330,70736,01825,723

18,73914,59440,79435,31753,01834,874

24,74923,282

32,134

Property management fees

15,725

12,06010,699

8,978

6,570

5,134

5,058

9,449

13,111

14,852

9,402

7,286

7,052

9,165

Taxes

20,760

9,028

8,679

7,619

8,083

5,712

4,085

17,161

7,293

12,31911,115

9,020

6,373

15,876

Utilities

13,637

8,908

7,996

7,806

5,706

4,695

4,145

10,712

9,332

17,515

8,644

5,595

6,547

5,575

Repairs and maintenance costs

2,953

1,535

2,195

9,758

2,212

2,517

431

2,441

4,340

6,975

1,259

585

2,521

509

225

153

135

170

103

56

59

154

140

222

113

85

93

107

Trust fees and other expenses

4,093

2,407

1,000

1,685

3,047

624

815

876

1,098

1,132

4,338

2,175

695

899

③NOI （＝①-②） (\ Thousands)

134,578

103,055

75,02851,01077,15255,42437,22095,266

67,487130,927

96,116

72,60259,362

93,063④Depreciation (\ Thousands)

27,75427,071

19,00015,847

9,301

6,536

8,330

19,847

19,44436,51919,462

10,456

17,354

10,381⑤Rental operating income （＝③-④） (\ Thousands)

106,823

75,98356,02735,162

67,851

48,88728,89075,41948,043

94,40876,654

62,14542,007

82,681

7,527

2,472

140

13,428

1,979

3,740

820

3,412

5,790

775

4,483

1,028

322

1,106

127,050

100,582

74,88837,58175,17351,68436,40091,854

61,697130,152

91,633

71,57459,04091,956②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)⑦NCF （＝③-⑥） (\ Thousands)

Reference

Expense ratio （＝②／①）

29.9%

24.9%

29.0%

41.4%

25.0%

25.3%

28.2%

30.0%

34.4%

28.8%

26.6%

25.4%

28.2%

25.7%

Property tax for the year 2016 or 2015 (\ Thousands)

41,521

18,056

17,333

15,23016,167

11,4248,122

34,322

14,56924,62822,231

18,04012,74631,753

Property management fee (Leasing management fees) of ② (\ Thousands)

6,664

4,902

3,689

2,817

3,674

2,644

1,817

4,720

3,475

6,425

4,634

3,468

2,898

4,454

Reference： Percentage of rental and other operating revenues

3.5%

3.6%

3.5%

3.2%

3.6%

3.6%

3.5%

3.5%

3.4%

3.5%

3.5%

3.6%

3.5%

3.6%

318,440

159,300

141,890

164,530

204,340

97,67079,020161,000

180,238

309,328

232,159

163,222

198,294

133,340

26,536

13,275

11,824

13,71017,028

8,139

6,585

13,41615,01925,777

19,346

13,601

16,524

11,111Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.

- 41 -

a0221

a0261

a0271

a0291

a0301

a0311

a0321

a0331

a0341

a0351

【Reference】

Earnings Performance for the Individual Properties for the 22nd Fiscal Period (November 1, 2015 to April 30, 2016)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A022

A026

A027

A029

Property NameKDX ShinYokohama
Building

KDX Kiba
Building

KDX Kajicho
Building

KDX HigashiShinjuku
Building

July 3, 2006

September 1, 2006 December 1, 2006 January 19, 2007

Acquisition Date

May 1, 2006 June 20, 2006

A030

A031

A032

KDX NishiKDX MonzenKDX ShibaGotanda Building Nakacho Building Daimon Building

a0371

a0381

a0411

a0451

※As of April 30, 2016

A033

A034

A035

A037

A038

A041

A045

KDX
Okachimachi
Building

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX
Ochanomizu
Building

KDX NishiShinjuku
Building

KDX Shinjuku
286 Building

KDX Roppongi
228 Building

March 1, 2007 March 1, 2007 March 1, 2007 March 1, 2007 April 2, 2007 April 2, 2007

June 1, 2007 January 10, 2008

Price Information

Acquisition price (\ Millions)

2,520

1,580

2,350

2,950

4,200

1,400

6,090

2,000

1,305

1,155

6,400

1,500

2,300

Percentage of total portfolio

0.6%

0.4%

0.6%

0.8%

1.1%

0.4%

1.5%

0.5%

0.3%

0.3%

1.6%

0.4%

0.6%

0.8%

Net book value (\ Millions)

2,294

1,475

2,294

3,073

3,914

1,334

6,049

2,060

1,176

1,223

6,450

1,537

2,329

3,404

Appraisal value at the end of period (\ Millions)

2,340

1,270

2,240

3,700

3,690

1,110

4,970

1,980

1,150

1,050

6,830

1,200

2,430

2,120

Percentage of total appraisal value

0.6%

0.3%

0.6%

0.9%

0.9%

0.3%

1.2%

0.5%

0.3%

0.3%

1.7%

0.3%

0.6%

0.5%

15

5

10

7

5

7

10

2

11

9

8

9

7

8

Leasable floor area (㎡)4,782.67

2,455.44

2,564.79

5,914.28

3,881.89

2,008.74

5,997.36

1,792.54

2,747.66

2,163.36

5,892.44

1,593.60

2,446.12

1,940.06

Leased floor area（㎡)3,763.88

2,162.54

2,564.79

5,914.28

1,841.01

2,008.74

5,997.36

1,792.54

2,657.93

1,849.55

5,678.52

1,593.60

2,446.12

1,940.06

As of April 30, 2016

78.7%

88.1%

100.0%

100.0%

47.4%

100.0%

100.0%

100.0%

96.7%

85.5%

96.4%

100.0%

100.0%

100.0%

As of October 31, 2015

83.3%

76.1%

93.5%

87.3%

100.0%

84.3%

100.0%

100.0%

96.7%

72.7%

96.4%

100.0%

100.0%

100.0%

As of April 30, 2015

87.2%

76.1%

97.5%

87.3%

100.0%

100.0%

100.0%

100.0%

94.3%

72.7%

100.0%

100.0%

100.0%

87.4%

As of October 31, 2014

97.5%

88.1%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

72.7%

100.0%

77.8%

100.0%

87.4%

As of April 30, 2014

94.1%

88.1%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

73.8%

As of October 31, 2013

92.9%

100.0%

100.0%

100.0%

100.0%

100.0%

92.9%

100.0%

89.0%

100.0%

100.0%

100.0%

100.0%

63.1%

As of April 30, 2013

92.9%

100.0%

100.0%

100.0%

100.0%

100.0%

79.1%

100.0%

95.7%

100.0%

100.0%

100.0%

100.0%

54.4%

As of October 31, 2012

95.4%

100.0%

100.0%

100.0%

100.0%

100.0%

82.8%

100.0%

86.0%

100.0%

90.1%

100.0%

100.0%

54.4%

As of April 30, 2012

97.9%

100.0%

100.0%

99.7%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

88.6%

100.0%

65.1%

As of October 31, 2011

93.1%

100.0%

100.0%

83.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

65.1%

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

Number of tenants

3,300

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 22nd Fiscal Period

79,272

44,12869,704

129,491

61,95839,587

154,978

67,092

51,11440,047

186,994

45,79678,54858,967

Rental revenues

65,60332,171

61,647

115,21248,59430,852

141,219

58,61344,04833,129172,751

40,63266,01851,490

Other operating revenues

13,668

11,956

8,057

14,27813,364

8,735

13,759

8,478

7,066

6,917

14,243

5,163

12,5297,476

25,591

19,48021,29344,31924,56816,81043,411

15,345

17,917

16,79245,51915,28024,367

21,216

Property management fees

8,178

4,610

6,639

12,818

7,086

3,962

13,680

5,537

6,209

4,402

11,738

4,597

7,052

5,209

Taxes

6,380

4,731

5,389

13,601

9,044

3,112

11,470

2,878

3,629

4,079

15,002

4,326

8,198

7,286

Utilities

7,434

3,535

5,187

12,825

6,238

5,580

12,336

4,247

4,771

4,201

12,789

3,750

6,871

5,970

Repairs and maintenance costs

2,396

1,173

2,527

2,960

499

3,829

1,076

929

2,469

1,328

3,308

1,928

1,335

1,787

141

69

77

198

135

68

173

48

95

65

199

53

93

55

Trust fees and other expenses

1,059

5,361

1,472

1,915

1,563

257

4,673

1,704

741

2,715

2,481

624

815

907

③NOI （＝①-②） (\ Thousands)

53,681

24,647

48,411

85,171

37,38922,777

111,567

51,74633,197

23,254141,474

30,51654,18137,750④Depreciation (\ Thousands)

22,42011,816

12,71020,322

29,131

9,477

30,587

8,145

13,512

10,691

27,456

6,901

9,450

5,439

⑤Rental operating income （＝③-④） (\ Thousands)

31,261

12,83135,70064,848

8,258

13,29980,97943,60019,684

12,563

114,018

23,61444,73132,311②Property-related expenses (\ Thousands)

Insurance

Reference⑥Capital expenditures (\ Thousands)

3,444

553

1,416

12,288

6,296

656

3,557

540

721

-

11,933

230

1,540

800

⑦NCF （＝③-⑥） (\ Thousands)

50,23724,094

46,99472,88231,09322,121

108,010

51,20632,47623,254

129,540

30,28652,641

36,950

Expense ratio （＝②／①）

32.3%

44.1%

30.5%

34.2%

39.7%

42.5%

28.0%

22.9%

35.1%

41.9%

24.3%

33.4%

31.0%

36.0%

Property tax for the year 2016 or 2015 (\ Thousands)

12,747

9,462

10,73027,20318,0906,226

22,939

5,758

7,259

8,126

30,004

8,646

16,397

14,574

Property management fee (Leasing management fees) of ② (\ Thousands)

2,713

1,403

2,410

4,380

2,027

1,272

5,439

2,425

1,720

1,291

6,703

1,557

2,708

1,973

Reference： Percentage of rental and other operating revenues

3.4%

3.2%

3.5%

3.4%

3.3%

3.2%

3.5%

3.6%

3.4%

3.2%

3.6%

3.4%

3.4%

3.3%

111,671

127,183

133,761

93,342

133,200

113,920

169,180

55,430147,990

100,380249,81074,560143,300

80,0709,305

10,598

11,146

7,778

11,1009,493

14,098

4,619

12,3328,365

20,817

6,213

11,941

6,672

Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.

- 42 -

a0461

a0471

a0481

a0501

a0511

a0521

a0551

a0561

a0571

a0591

【Reference】

Earnings Performance for the Individual Properties for the 22nd Fiscal Period (November 1, 2015 to April 30, 2016)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A046

A047

A048

A050

A051

A052

A055

A056

A057

KDX ShinKDX KawasakiKDX Hamacho
KDX Kanda
KDX IkejiriShin-toshin
KDX Jimbocho KDX Gobancho
Yokohama 381 Ekimae Hon-cho
Nakanohashi
Misaki-cho
Oohashi Building
Maruzen Building
Building
Building
Building
Building
Building
Building
February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 29, 2008 March 31, 2008 March 31, 2008
Hiei Kudan-Kita
Building

Property Name
Acquisition Date

a0601

a0611

a0621

a0631

※As of April 30, 2016

A059

A060

A061

A062

A063

KDX Iwamotocho Building

KDX Harumi
Building

KDX
Hamamatsucho
Dai-2 Building

Koishikawa TG
Building

Gotanda TG
Building

May 1, 2008 June 30, 2008 September 1, 2008 November 18, 2009 November 18, 2009

Price Information

Acquisition price (\ Millions)

7,600

5,800

3,760

2,400

2,310

1,380

2,110

2,760

1,951

1,864

10,250

2,200

3,080

Percentage of total portfolio

1.9%

1.5%

1.0%

0.6%

0.6%

0.4%

0.5%

0.7%

0.5%

0.5%

2.6%

0.6%

0.8%

0.7%

Net book value (\ Millions)

7,512

5,540

3,612

2,379

2,258

1,347

2,103

2,885

1,907

1,700

9,110

2,250

3,034

2,726

Appraisal value at the end of period (\ Millions)

7,910

4,280

3,060

1,710

1,900

961

1,650

2,080

1,420

1,490

8,470

2,080

3,360

3,020

Percentage of total appraisal value

2.0%

1.1%

0.8%

0.4%

0.5%

0.2%

0.4%

0.5%

0.4%

0.4%

2.1%

0.5%

0.8%

0.8%

14

38

1

8

9

8

5

3

7

10

9

8

5

10

Leasable floor area (㎡)6,908.84

8,131.46

5,126.69

2,458.64

2,238.01

1,315.96

1,912.28

2,321.80

1,649.02

1,529.91

9,294.00

1,954.23

3,945.54

3,158.67

Leased floor area（㎡)6,908.84

7,807.20

5,126.69

2,458.64

2,238.01

1,315.96

1,912.28

2,321.80

1,649.02

1,529.91

8,657.86

1,954.23

3,945.54

3,158.67

As of April 30, 2016

100.0%

96.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

93.2%

100.0%

100.0%

100.0%

As of October 31, 2015

100.0%

96.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

88.5%

As of April 30, 2015

100.0%

100.0%

100.0%

100.0%

88.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

As of October 31, 2014

100.0%

100.0%

100.0%

63.6%

88.3%

86.8%

100.0%

100.0%

100.0%

100.0%

90.7%

100.0%

100.0%

100.0%

As of April 30, 2014

100.0%

100.0%

100.0%

91.3%

100.0%

60.8%

100.0%

100.0%

100.0%

100.0%

72.2%

100.0%

100.0%

100.0%

As of October 31, 2013100.0%

99.2%

100.0%

91.3%

100.0%

73.7%

100.0%

100.0%

100.0%

100.0%

71.2%

87.5%

100.0%

100.0%

As of April 30, 2013100.0%

100.0%

100.0%

91.3%

100.0%

100.0%

100.0%

100.0%

85.7%

100.0%

72.2%

100.0%

100.0%

100.0%

As of October 31, 2012

100.0%

91.7%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

70.3%

87.6%

100.0%

100.0%

As of April 30, 2012

91.4%

91.5%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

70.3%

87.6%

100.0%

100.0%

As of October 31, 2011

98.8%

93.0%

100.0%

54.9%

100.0%

100.0%

81.2%

100.0%

100.0%

100.0%

88.9%

100.0%

100.0%

80.0%

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

Number of tenants

2,620

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 22nd Fiscal Period

232,298

163,920

105,515

69,95566,70528,30856,91865,721

43,38549,259215,570

61,591

128,342

91,220Rental revenues

211,870

136,318

92,47856,16054,79625,582

49,91059,37439,56543,783

156,177

54,718

107,782

82,121Other operating revenues

20,427

27,602

13,036

13,795

11,908

2,725

7,008

6,346

3,819

5,475

59,393

6,872

20,5609,098

85,18750,35647,75524,004

19,792

10,16016,647

18,812

12,315

13,31987,69518,87653,20629,994

Property management fees

30,525

12,676

12,406

6,045

6,981

3,436

6,339

5,122

4,056

3,876

32,386

4,620

14,014

7,664

Taxes

25,361

12,737

7,241

6,278

5,486

2,545

4,613

6,829

4,046

3,000

18,112

7,999

9,981

8,604

Utilities

15,761

14,995

7,838

5,318

4,992

2,530

3,813

4,579

2,525

2,536

28,102

4,020

12,9777,466

Repairs and maintenance costs

5,297

6,725

3,369

5,378

1,445

1,360

649

1,953

1,346

1,892

5,748

1,357

15,270

607

263

246

167

86

89

39

63

72

46

40

315

59

159

121

Trust fees and other expenses

7,979

2,974

16,732

896

797

248

1,168

255

293

1,973

3,031

819

803

5,531

③NOI （＝①-②） (\ Thousands)

147,110

113,564

57,75945,951

46,91318,14840,271

46,90931,06935,939127,874

42,71575,136

61,225④Depreciation (\ Thousands)

17,391

48,82332,383

11,56912,360

4,175

7,915

9,990

10,512

13,36478,003

5,066

15,087

13,570⑤Rental operating income （＝③-④） (\ Thousands)

129,719

64,74025,37634,382

34,552

13,97232,35536,91820,556

22,57549,87137,64860,04847,655-

7,354

37,779

-

-

-

3,853

-

900

-

1,764

-

-

5,775

147,110106,209

19,97945,951

46,91318,14836,417

46,90930,16935,939126,11042,71575,13655,450②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)⑦NCF （＝③-⑥） (\ Thousands)

Reference

Expense ratio （＝②／①）

36.7%

30.7%

45.3%

34.3%

29.7%

35.9%

29.2%

28.6%

28.4%

27.0%

40.7%

30.6%

41.5%

32.9%

Property tax for the year 2016 or 2015 (\ Thousands)

50,722

25,427

14,50912,548

10,972

5,091

9,461

13,660

8,094

6,001

36,22416,00019,963

17,208Property management fee (Leasing management fees) of ② (\ Thousands)

7,743

5,662

3,332

2,365

2,318

948

1,983

2,298

1,519

1,738

7,009

2,128

4,152

3,111

Reference： Percentage of rental and other operating revenues

3.3%

3.5%

3.2%

3.4%

3.5%

3.3%

3.5%

3.5%

3.5%

3.5%

3.3%

3.5%

3.2%

3.4%

328,200

204,910

157,210

120,300

98,82051,48092,54093,86061,48026,050114,460

75,220297,050140,280

27,35017,075

13,10010,025

8,235

4,290

7,711

7,821

5,123

2,170

9,538

6,268

24,754

11,690Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.

- 43 -

a0641

a0661

a0671

a0681

a0711

a0721

a0731

a0741

a0751

a0781

【Reference】

Earnings Performance for the Individual Properties for the 22nd Fiscal Period (November 1, 2015 to April 30, 2016)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A064

A066

Property NameKDX Nihonbashi
216 Building

KDX Shinjuku
Building

A067

A068

Acquisition Date

December 1, 2009 February 18, 2010 November 12, 2010 November 12, 2010

KDX Ginza
KDX Nihonbashi
1chome Building Honcho Building

A071

A072

A073

A074

KDX Iidabashi
Building

KDX HigashiShinagawa
Building

KDX Hakozaki
Building

KDX ShinNihonbashi
Building

A075

a0831

A078

KDX Nihonbashi
KDX Tachikawa
Kabutocho
Ekimae Building
Building

July 22, 2011 July 22, 2011 July 22, 2011 July 22, 2011

a0841

a0851

a0861

※As of April 30, 2016

A083

A084

A085

A086

KDX Fuchu
Building

KDX Kasuga
Building

KDX
Nakameguro
Building

KDX Omiya
Building

December 26, 2011 December 26, 2011 September 21, 2012 September 21, 2012 September 21, 2012

March 26, 2013

Price Information

Acquisition price (\ Millions)

2,010

6,800

4,300

4,000

4,670

4,590

2,710

2,300

11,270

1,267

6,120

2,800

1,880

Percentage of total portfolio

0.5%

1.7%

1.1%

1.0%

1.2%

1.2%

0.7%

0.6%

2.9%

0.3%

1.6%

0.7%

0.5%

0.5%

Net book value (\ Millions)

1,884

6,890

4,220

3,951

4,577

4,779

2,764

2,139

11,164

1,304

5,968

2,781

1,873

2,199

Appraisal value at the end of period (\ Millions)

1,980

8,010

5,480

4,530

5,370

4,300

3,180

2,710

12,100

1,490

7,170

3,580

2,490

2,720

Percentage of total appraisal value

0.5%

2.0%

1.4%

1.1%

1.3%

1.1%

0.8%

0.7%

3.0%

0.4%

1.8%

0.9%

0.6%

0.7%

8

21

3

8

5

4

8

8

7

5

38

15

5

18

Leasable floor area (㎡)1,615.20

5,836.68

3,573.59

3,998.39

4,429.25

7,117.09

3,992.60

2,658.79

7,562.93

1,612.13

10,151.48

4,345.13

2,724.03

3,814.00

Leased floor area（㎡)1,615.20

5,736.09

3,507.89

3,998.39

4,429.25

6,289.22

3,992.60

2,658.79

7,562.93

1,612.13

10,004.33

4,345.13

2,328.20

3,814.00

Number of tenants

2,020

Occupancy ratio

100.0%

98.3%

98.2%

100.0%

100.0%

88.4%

100.0%

100.0%

100.0%

100.0%

98.6%

100.0%

85.5%

100.0%

As of October 31, 2015

100.0%

100.0%

65.4%

100.0%

100.0%

51.0%

100.0%

100.0%

100.0%

100.0%

99.1%

100.0%

100.0%

100.0%

As of April 30, 2015

100.0%

88.3%

100.0%

100.0%

86.6%

73.5%

100.0%

100.0%

100.0%

100.0%

99.1%

100.0%

100.0%

93.8%

As of October 31, 2014

100.0%

91.8%

100.0%

100.0%

86.6%

56.7%

89.3%

100.0%

100.0%

100.0%

97.6%

100.0%

100.0%

100.0%

As of April 30, 2014

100.0%

88.4%

100.0%

100.0%

100.0%

76.7%

78.6%

100.0%

100.0%

100.0%

97.6%

100.0%

100.0%

100.0%

As of October 31, 2013100.0%

88.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

99.8%

100.0%

100.0%

97.4%

100.0%

95.1%

As of April 30, 2013100.0%

96.5%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

13.4%

100.0%

97.2%

92.4%

100.0%

95.1%

As of October 31, 2012

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

98.2%

95.7%

100.0%-

As of April 30, 2012

100.0%

97.7%

100.0%

100.0%

100.0%

89.2%

100.0%

100.0%

100.0%

100.0%----

As of October 31, 2011

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

83.3%

100.0%

-

-

-

-

-

-

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

Lease Information

As of April 30, 2016

Income and Retained Earnings Information for the 22nd Fiscal Period
Reference

57,315

235,573

105,329

134,703148,935

78,572

111,090

86,987280,105

64,206

288,895

126,057

75,788116,644

Rental revenues

52,233

201,594

98,499125,637

131,052

60,247100,765

79,014

252,70954,922257,001

113,870

65,099101,864

Other operating revenues

5,082

33,979

6,829

9,066

17,88318,325

10,325

7,972

27,3959,284

31,894

12,186

10,68814,78016,772

77,71942,671

34,73843,42057,08432,52625,25983,42023,62593,22533,69924,261

28,848Property management fees

5,194

22,118

7,786

9,430

10,537

11,636

7,956

7,081

25,258

5,058

28,923

11,583

6,497

9,836

Taxes

4,552

27,726

12,69014,612

10,595

16,127

12,0797,170

31,455

7,258

24,75911,388

5,615

6,722

Utilities

3,330

18,518

6,387

6,882

17,283

14,561

9,329

6,733

22,281

4,501

29,421

8,004

4,544

11,001

Repairs and maintenance costs

1,906

5,980

1,407

2,587

3,257

4,878

1,725

3,129

2,554

5,766

6,122

1,638

4,097

740

55

278

126

124

144

225

167

96

334

72

417

159

92

141

Trust fees and other expenses

1,731

3,097

14,273

1,100

1,602

9,656

1,267

1,048

1,536

968

3,581

924

3,414

407

③NOI （＝①-②） (\ Thousands)

40,542

157,854

62,657

99,965105,515

21,48778,56361,728

196,684

40,580195,670

92,35751,526

87,796④Depreciation (\ Thousands)

11,376

18,831

11,7399,866

16,041

26,53523,05822,31158,293

4,056

41,422

19,233

9,233

13,769⑤Rental operating income （＝③-④） (\ Thousands)

29,165139,023

50,91890,09889,473△5,04755,50539,417

138,391

36,523

154,248

73,12442,29374,026

-

6,847

-

-

590

-

6,212

5,145

1,041

810

8,531

1,365

199

2,840

⑦NCF （＝③-⑥） (\ Thousands)

40,542

151,006

62,657

99,965

104,925

21,48772,351

56,583

195,643

39,770187,139

90,992

51,327

84,955

Expense ratio （＝②／①）

29.3%

33.0%

40.5%

25.8%

29.2%

72.7%

29.3%

29.0%

29.8%

36.8%

32.3%

26.7%

32.0%

24.7%

Property tax for the year 2016 or 2015 (\ Thousands)

9,081

55,45325,38029,224

21,191

32,255

24,15914,34062,911

14,46549,52022,775

11,23013,449Property management fee (Leasing management fees) of ② (\ Thousands)

1,997

8,029

3,428

4,789

5,192

2,042

3,870

3,035

9,730

2,138

9,889

4,457

2,598

4,172

Reference： Percentage of rental and other operating revenues

3.5%

3.4%

3.3%

3.6%

3.5%

2.6%

3.5%

3.5%

3.5%

3.3%

3.4%

3.5%

3.4%

3.6%

75,950347,300

103,230

172,940

204,780

216,520

169,820

151,090549,760

121,540

442,330

204,470

173,340

210,300

6,329

28,941

8,602

14,411

17,06518,043

14,151

12,59045,813

10,12836,86017,03914,445

17,525②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)

Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.

- 44 -

a0871

a0881

a0891

a0901

a0911

a0921

a0931

a0941

a0951

a0961

【Reference】

Earnings Performance for the Individual Properties for the 22nd Fiscal Period (November 1, 2015 to April 30, 2016)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A087

A088

a0991

a1011

a1021

a1031

※As of April 30, 2016

A089

A090

A091

A092

A093

A094

A095

A096

KDX
Takanawadai
Building

KDX Ikebukuro
Building

KDX Mita
Building

KDX Akihabara
Building

KDX Iidabashi
SquareKDX MusashiKosugi Building

KDX Toyosu
Grand Square

KDX
Takadanobaba
Building

A099

A101

KDX Ikebukuro KDX YokohamaWest Building
Building

A102

A103

KDX Yokohama
Nishiguchi
Building

KDX ShinYokohama 214
Building

Property Name

Itopia Nihonbashi KDX Shinjuku
SA Building
6-chome Building

Acquisition Date

August 19, 2013 September 13, 2013 November 19, 2013 November 18, 2013 November 18, 2013 November 19, 2013 January 10, 2014 March 20, 2014 May 30, 2014 May 30, 2014 September 3, 2014 October 29, 2014 December 2, 2014 December 2, 2014

Price Information

Acquisition price (\ Millions)

2,200

1,900

5,250

3,900

3,180

2,600

4,350

12,000

8,666

3,650

1,934

7,210

2,750

Percentage of total portfolio

0.6%

0.5%

1.3%

1.0%

0.8%

0.7%

1.1%

3.1%

2.2%

0.9%

0.5%

1.8%

0.7%

0.6%

Net book value (\ Millions)

2,247

1,893

5,284

3,787

3,165

2,572

5,020

11,637

8,412

3,651

1,992

7,237

2,757

2,219

Appraisal value at the end of period (\ Millions)

2,460

2,660

5,980

4,680

3,360

2,980

4,890

13,900

9,030

4,170

2,000

8,070

2,980

2,290

Percentage of total appraisal value

0.6%

0.7%

1.5%

1.2%

0.8%

0.7%

1.2%

3.5%

2.2%

1.0%

0.5%

2.0%

0.7%

0.6%

14

7

7

10

11

7

3

9

15

10

6

25

14

16

Leasable floor area (㎡)3,106.42

4,037.44

6,951.88

3,110.65

3,331.59

2,289.09

4,571.92

12,978.52

11,797.86

4,585.47

2,553.06

10,932.12

4,980.45

4,615.14

Leased floor area（㎡)3,106.42

4,037.44

6,537.12

3,110.65

3,018.54

2,289.09

2,181.66

12,978.52

11,797.86

4,269.37

2,553.06

10,770.72

4,980.45

4,412.63

As of April 30, 2016

100.0%

100.0%

94.0%

100.0%

90.6%

100.0%

47.7%

100.0%

100.0%

93.1%

100.0%

98.5%

100.0%

95.6%

As of October 31, 2015

100.0%

90.2%

100.0%

100.0%

87.5%

100.0%

0.0%

100.0%

80.8%

100.0%

100.0%

98.2%

100.0%

83.0%

As of April 30, 2015

100.0%

100.0%

100.0%

100.0%

95.6%

100.0%

100.0%

100.0%

87.0%

100.0%

81.2%

100.0%

100.0%

96.3%

As of October 31, 2014

98.0%

100.0%

100.0%

100.0%

95.6%

100.0%

100.0%

100.0%

87.0%

100.0%

100.0%

100.0%--

As of April 30, 2014

81.1%

100.0%

95.7%

100.0%

88.4%

100.0%

100.0%

95.9%

-

-

-

-

-

-

As of October 31, 2013100.0%

100.0%

-

-

-

-

-

-

-

-

-

-

-

-

As of April 30, 2013

-

-

-

-

-

-

-

-

-

-

-

-

-

-

As of October 31, 2012

-

-

-

-

-

-

-

-

-

-

-

-

-

-

As of April 30, 2012

-

-

-

-

-

-

-

-

-

-

-

-

-

-

As of October 31, 2011

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

Number of tenants

2,200

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 22nd Fiscal Period

99,45093,048199,217130,531

101,103

81,333

1,151

429,554

235,851

138,139

71,715

284,617

119,043

79,144

Rental revenues

89,57377,090179,256

118,707

84,05175,374

1,151

391,056

194,704

111,724

60,557

248,543

103,335

66,482Other operating revenues

9,876

15,957

19,96011,824

17,052

5,959-

38,49841,147

26,414

11,15736,074

15,70812,661

25,47733,521

68,76432,55932,247

17,247

124,429

92,586105,150

34,951

17,997

77,63741,39879,252

Property management fees

10,478

8,310

15,835

10,947

8,850

5,434

4,231

36,28820,237

10,023

6,499

29,65011,699

6,577

Taxes

6,861

10,495

18,415

7,535

9,724

3,462

13,506

26,35021,593

9,691

5,052

18,925

10,2695,981

Utilities

7,078

8,609

17,936

9,403

8,443

5,692

5,207

26,631

29,186

10,936

5,392

22,393

13,7896,517

Repairs and maintenance costs

291

2,694

15,266

1,656

1,903

1,156

80,511

1,319

8,201

2,353

668

4,439

2,997

56,859Insurance

141

142

233

83

129

77

162

430

382

138

94

420

176

173

Trust fees and other expenses

625

3,269

1,078

2,934

3,196

1,423

20,811

1,568

25,549

1,808

291

1,808

2,466

3,143

③NOI （＝①-②） (\ Thousands)

73,97259,526130,452

97,972

68,85664,086△123,278

336,968

130,700

103,187

53,717

206,979

77,644△108④Depreciation (\ Thousands)

9,819

9,133

8,301

27,16911,266

11,124

17,587

101,805

77,97914,8649,401

36,098

14,594

12,426⑤Rental operating income （＝③-④） (\ Thousands)

64,15350,392

122,150

70,80357,58952,962△140,866

235,162

52,721

88,322

44,316

170,880

63,050△12,535⑥Capital expenditures (\ Thousands)

10,691

5,030

2,205

900

550

-

509,128

-

1,725

8,304

28,82047,777

16,631

28,990⑦NCF （＝③-⑥） (\ Thousands)

63,28154,496

128,247

97,07268,30664,086△632,407

336,968

128,975

94,882

24,897

159,20261,013△29,098②Property-related expenses (\ Thousands)

Reference

Expense ratio （＝②／①）

25.6%

36.0%

34.5%

24.9%

31.9%

21.2%

10807.2%

21.6%

44.6%

25.3%

25.1%

27.3%

34.8%

100.1%

Property tax for the year 2016 or 2015 (\ Thousands)

13,64420,99036,83015,07019,4406,924

27,01253,26941,216

19,382

10,10737,98020,555

11,974

Property management fee (Leasing management fees) of ② (\ Thousands)

3,539

3,113

6,727

4,663

3,468

2,967

23

15,643

2,537

4,925

2,559

10,032

4,014

1,612

Reference： Percentage of rental and other operating revenues

3.6%

3.3%

3.4%

3.6%

3.4%

3.6%

2.0%

3.6%

1.1%

3.6%

3.6%

3.5%

3.4%

2.0%

337,220

214,340551,21372,362

180,220

117,070

384,169

140,030

708,370

213,711

187,542

647,152

213,177

170,738

28,101

17,86145,934

6,030

15,0189,755

32,014

11,66959,03017,80915,62853,92917,764

14,228Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.

- 45 -

a1051

a1071

a1081

a1091

a1121

a0121

a0421

a0441

a0531

a0541

【Reference】

Earnings Performance for the Individual Properties for the 22nd Fiscal Period (November 1, 2015 to April 30, 2016)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0581

a0691

a0701

a0791

※As of April 30, 2016

Other Regional Areas

Property No.

A105

A107

A108

A109

A112

A012

A042

A044

A053

A054

A058

A069

A070

A079

Property Name

BUREX
Toranomon

KDX
Ginza East
Building

Pentel Building

KDX
Hamamatsucho
Center Building

NittochiToranomon
Building

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

KDX Nagoya
Ekimae Building

June 1, 2007

June 1, 2007 February 1, 2008 February 1, 2008 July 1, 2009

Acquisition Date

December 3, 2014 March 13, 2015 March 26, 2015 September 1, 2015 March 30, 2016 September 21, 2005

December 1, 2010 March 25, 2011 December 26, 2011

Price Information

Acquisition price (\ Millions)

1,750

3,600

3,350

3,950

15,550

5,570

5,400

2,100

4,900

2,220

7,550

2,870

2,005

Percentage of total portfolio

0.4%

0.9%

0.9%

1.0%

4.0%

1.4%

1.4%

0.5%

1.2%

0.6%

1.9%

0.7%

0.5%

1.9%

Net book value (\ Millions)

1,750

3,613

3,567

4,003

15,713

4,196

5,203

2,027

4,603

2,101

6,934

2,332

1,974

8,002

Appraisal value at the end of period (\ Millions)

2,380

3,650

3,594

4,140

16,300

5,140

5,270

1,660

3,730

1,610

5,250

2,570

2,080

8,250

Percentage of total appraisal value

0.6%

0.9%

0.9%

1.0%

4.0%

1.3%

1.3%

0.4%

0.9%

0.4%

1.3%

0.6%

0.5%

2.0%

1

12

10

8

4

29

39

34

51

10

16

12

21

19

Leasable floor area (㎡)

1,900.93

4,458.02

4,346.66

3,052.64

8,179.00

11,582.43

8,743.96

3,962.37

9,826.80

3,995.50

6,923.12

7,072.23

3,788.51

7,931.39

Leased floor area（㎡)1,900.93

4,458.02

4,126.84

3,052.64

8,179.00

11,272.06

8,684.73

3,962.37

9,578.33

3,569.96

6,923.12

7,072.23

3,788.51

7,931.39

As of April 30, 2016

100.0%

100.0%

94.9%

100.0%

100.0%

97.3%

99.3%

100.0%

97.5%

89.3%

100.0%

100.0%

100.0%

100.0%

As of October 31, 2015

100.0%

100.0%

88.9%

100.0%

-

95.9%

99.2%

100.0%

88.7%

92.8%

100.0%

100.0%

100.0%

100.0%

As of April 30, 2015

100.0%

96.4%

100.0%

-

-

94.9%

100.0%

96.4%

94.7%

92.8%

100.0%

100.0%

100.0%

99.0%

As of October 31, 2014

-

-

-

-

-

97.5%

100.0%

94.4%

98.5%

92.8%

99.3%

91.3%

95.6%

99.0%

As of April 30, 2014

-

-

-

-

-

96.5%

100.0%

91.9%

95.8%

92.8%

100.0%

100.0%

97.8%

100.0%

As of October 31, 2013

-

-

-

-

-

95.8%

94.3%

91.5%

93.9%

92.8%

100.0%

100.0%

89.8%

100.0%

As of April 30, 2013

-

-

-

-

-

98.6%

98.3%

96.8%

94.9%

92.8%

100.0%

93.5%

94.4%

100.0%

As of October 31, 2012

-

-

-

-

-

89.5%

99.2%

93.8%

93.3%

92.8%

100.0%

91.3%

100.0%

93.8%

As of April 30, 2012

-

-

-

-

-

89.5%

100.0%

96.7%

86.0%

89.2%

100.0%

95.6%

100.0%

92.8%

As of October 31, 2011

-

-

-

-

-

90.1%

99.2%

87.4%

79.3%

84.4%

100.0%

95.6%

100.0%-

Operating periods

182days

182days

182days

182days

32days182days

182days

182days

182days

182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

49,996

120,320

108,536

102,719

36,751

287,916

207,640

93,008164,833

75,819184,310

187,609

93,184315,105

49,996

102,903

104,155

92,46535,778240,335

182,071

78,975

139,443

61,356

166,179

170,561

75,772

272,476-

17,417

4,380

10,253972

47,581

25,56814,032

25,38914,463

18,13017,04817,411

42,6288,321

26,616

31,173

18,945

7,507

108,660

76,02532,27359,62928,49356,211

91,51336,666

121,828

Property management fees

1,888

9,338

29,873

9,347

4,453

60,80919,983

11,206

14,092

7,569

17,862

15,677

9,583

30,539

Taxes

6,261

163

-

1

9

21,947

21,535

6,729

10,067

4,440

19,93011,456

8,821

37,864

-

9,956

-

6,058

2,519

19,247

17,237

9,704

22,522

8,696

14,661

14,233

14,67425,371

Repairs and maintenance costs

100

5,893

576

1,331

26

4,553

14,642

3,274

6,963

2,144

1,372

1,767

1,195

12,051

Insurance

71

173

212

115

56

1,121

288

141

299

114

248

263

147

369

Trust fees and other expenses

-

1,090

510

2,090

441

981

2,338

1,216

5,684

5,527

2,136

48,114

2,242

15,633③NOI （＝①-②） (\ Thousands)

41,67493,70377,363

83,77429,244

179,255

131,615

60,734105,203

47,325

128,099

96,09556,518193,276④Depreciation (\ Thousands)

12,167

12,824

11,9297,820

15,77951,61930,752

19,96936,534

13,506

71,84253,414

16,81840,916⑤Rental operating income （＝③-④） (\ Thousands)

29,50680,87965,43375,953

13,464

127,636

100,863

40,764

68,66933,81956,256

42,681

39,699152,359-

4,196

76,133

9,701

-

4,746

8,210

270

17,822

4,914

1,050

-

-

54,667

41,67489,507

1,229

74,072

29,244

174,509

123,405

60,46487,38142,411

127,049

96,09556,518

138,608

Number of tenants

7,327

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 22nd Fiscal Period

Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)

Utilities⑥Capital expenditures (\ Thousands)⑦NCF （＝③-⑥） (\ Thousands)

Reference

Expense ratio （＝②／①）

16.6%

22.1%

28.7%

18.4%

20.4%

37.7%

36.6%

34.7%

36.2%

37.6%

30.5%

48.8%

39.3%

38.7%

Property tax for the year 2016 or 2015 (\ Thousands)

12,526

20,833

26,47415,306

92,05543,82343,091

13,474

20,108

8,875

39,68522,87917,654

76,383

Property management fee (Leasing management fees) of ② (\ Thousands)

1,870

4,367

3,793

3,805

1,346

9,534

6,923

3,137

5,510

2,513

6,375

5,789

3,055

10,375

Reference： Percentage of rental and other operating revenues

3.7%

3.6%

3.5%

3.7%

3.7%

3.3%

3.3%

3.4%

3.3%

3.3%

3.5%

3.1%

3.3%

3.3%

25,599242,059

288,245

169,148

118,382

856,430

262,560

223,960

185,690

136,270

95,450170,520

202,570

737,870

2,133

20,171

24,02014,095

9,865

71,36921,88018,663

15,474

11,355

7,954

14,21016,88061,489Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.

A058 KDX Nagoya Sakae Building: The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.
A069 KDX Kobayashi Doshomachi Building: The rent for land to the land owner (Kobayashi Pharmaceutical Co., Ltd.) is stipulated according to specific terms
under the land lease agreement and the annual rent to be paid is￥94.3 million until the end of August 2019.

- 46 -

a0821

a0971

a0981

a1001

a1041

a1061

a1101

a1111

b0191

c0011

【Reference】

Earnings Performance for the Individual Properties for the 22nd Fiscal Period (November 1, 2015 to April 30, 2016)：182days

Type

Office Buildings

Location

Residential
Properties

Property No.

A082

A097

A098

A100

A104

A106

A110

A111

KDX MinamiHonmachi
Building

KDX
Sakura-dori
Building

KDX
Shin-Osaka
Building

Nichigin-mae
KD Building

Residence
Charmante
Tsukishima

Property Name

KDX Higashi KDX Utsunomiya KDX Hiroshima Senri Life Science
Umeda Building
Building
Building
Center Building

Acquisition Date

March 28, 2012 May 30, 2014 September 1, 2014 October 15, 2014 December 2, 2014 January 9, 2015 September 1, 2015 March 15, 2016

c0041

d0021

Central Urban Retail Properties

Tokyo
Metropolitan
Area
B019

Other Regional Areas

c0021

97

※As of April 30, 2016
Other

C001

C002

C004

Tokyo
Metropolitan
Area
D002

Frame
Jinnan-zaka

KDX Yoyogi
Building

Ginza 4chome
Tower

Shinjuku 6-chome
Building (Land)

Tokyo Metropolitan Area

Total of 97
Properties

May 1, 2006 August 1, 2005 September 30, 2005 August 19, 2013 April 18, 2014

Price Information

Acquisition price (\ Millions)

2,770

2,350

1,300

13,000

2,200

5,900

4,550

3,500

5,353

9,900

2,479

9,800

2,880

Percentage of total portfolio

0.7%

0.6%

0.3%

3.3%

0.6%

1.5%

1.2%

0.9%

1.4%

2.5%

0.6%

2.5%

0.7%

100.0%Net book value (\ Millions)

2,607

2,364

1,384

12,858

2,151

6,023

4,606

3,582

4,623

9,396

2,474

9,684

2,973

385,085

Appraisal value at the end of period (\ Millions)

3,690

2,480

1,480

13,100

2,690

7,450

4,830

3,750

4,900

10,5002,110

11,9003,190

402,555

Percentage of total appraisal value

0.9%

0.6%

0.4%

3.3%

0.7%

1.9%

1.2%

0.9%

1.2%

2.6%

0.5%

3.0%

0.8%

100.0%

8

24

20

57

23

32

17

12

1

12

11

4

1

1,189

Leasable floor area (㎡)4,986.24

5,328.77

3,982.43

17,209.90

5,285.95

12,339.41

5,977.39

4,360.60

7,711.14

4,646.51

1,176.25

5,624.23

1,355.13

457,774.90

Leased floor area（㎡)4,986.24

5,328.77

3,602.47

16,467.43

5,285.95

12,119.62

5,977.39

3,900.66

7,711.14

4,438.15

1,176.25

5,624.23

1,355.13

443,359.31

As of April 30, 2016

100.0%

100.0%

90.5%

95.7%

100.0%

98.2%

100.0%

89.5%

100.0%

95.5%

100.0%

100.0%

100.0%

96.9%

As of October 31, 2015

100.0%

100.0%

82.3%

97.3%

100.0%

94.6%

96.6%

-

100.0%

95.2%

100.0%

100.0%

100.0%

94.9%

As of April 30, 2015

100.0%

98.5%

74.0%

99.0%

98.8%

89.9%

-

-

100.0%

98.0%

91.7%

100.0%

100.0%

96.5%

As of October 31, 2014

100.0%

97.0%

73.3%

99.3%

-

-

-

-

100.0%

93.6%

100.0%

100.0%

100.0%

95.6%

As of April 30, 2014

100.0%

-

-

-

-

-

-

-

100.0%

96.3%

100.0%

100.0%

100.0%

96.0%

As of October 31, 2013100.0%

-

-

-

-

-

-

-

100.0%

100.0%

100.0%

100.0%-

95.8%

As of April 30, 2013100.0%

-

-

-

-

-

-

-

100.0%

100.0%

100.0%

-

-

93.9%

As of October 31, 2012

95.5%

-

-

-

-

-

-

-

100.0%

100.0%

100.0%

-

-

95.5%

As of April 30, 2012

95.5%

-

-

-

-

-

-

-

100.0%

100.0%

100.0%

-

-

95.4%

-

-

-

-

-

-

-

-

100.0%

89.5%

100.0%--

Operating periods

182days

182days

182days

182days

182days

182days

182days

47days182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

Number of tenants

393,171

Occupancy ratio
Lease Information

As of October 31, 2011

94.7%

Income and Retained Earnings Information for the 22nd Fiscal Period

175days ※Reference

127,701

129,634

62,351

721,185

107,845314,304

126,062

26,351

148,134

219,186

68,101

276,973

68,12912,493,960

Rental revenues

107,977

113,03150,920457,634

89,800267,049

111,258

22,696132,064

200,155

59,354

245,603

68,124

10,744,171

Other operating revenues

19,723

16,602

11,430263,551

18,04547,254

14,804

3,654

16,07019,031

8,746

31,3705

1,749,789

38,254

38,693

22,687315,754

38,523

114,427

35,213

5,643

42,09462,004

14,152

70,1206,116

4,209,538

Property management fees

9,388

15,462

7,921

83,366

10,60349,35913,286

2,279

16,832

16,573

4,152

18,967-1,230,813

Taxes

12,073

8,569

6,638

60,643

12,44718,025

6,112

11

10,023

15,546

4,269

20,6785,916

1,055,899

Utilities

14,595

11,354

5,921

90,801

13,29230,287

10,295

1,508

1,517

16,916

4,418

22,866-

1,058,681

Repairs and maintenance costs

906

2,256

178

9,835

1,065

11,216

1,990

1,550

9,816

2,965

311

6,504

-

450,781

Insurance

192

195

139

1,218

186

499

209

39

276

154

37

189

-

17,256

Trust fees and other expenses

1,097

854

1,887

69,887

927

5,038

3,320

255

3,626

9,848

964

913

200

396,106③NOI （＝①-②） (\ Thousands)

89,447

90,94039,663

405,431

69,322

199,876

90,84820,707106,040

157,182

53,948206,852

62,0128,284,422④Depreciation (\ Thousands)

35,387

27,676

12,208112,264

23,92728,55820,028

8,735

46,106

58,207

9,236

34,855-2,206,023⑤Rental operating income （＝③-④） (\ Thousands)

54,06063,26427,455

293,166

45,395

171,318

70,82011,97259,933

98,97444,712

171,997

62,012

6,078,398

430

600

6,602

44,447235

26,508

11,213

-

264

3,236

650

1,573

-

1,120,238⑦NCF （＝③-⑥） (\ Thousands)

89,017

90,34033,061360,983

69,087

173,368

79,63520,707

105,775

153,945

53,298205,278

62,012

7,164,183

Expense ratio （＝②／①）

30.0%

29.8%

36.4%

43.8%

35.7%

36.4%

27.9%

21.4%

28.4%

28.3%

20.8%

25.3%

9.0%

33.7%

Property tax for the year 2016 or 2015 (\ Thousands)

24,037

17,145

13,276

121,256

24,85072,07724,446

17,60820,04731,092

8,537

41,357

11,8332,330,784

Property management fee (Leasing management fees) of ② (\ Thousands)

4,431

4,501

2,081

21,6703,615

10,493

4,426

960

4,531

7,680

2,490

9,873

-

416,987

Reference： Percentage of rental and other operating revenues

3.5%

3.5%

3.3%

3.0%

3.4%

3.3%

3.5%

3.6%

3.1%

3.5%

3.7%

3.6%

0.0%

3.3%

107,610

312,190

195,898

1,489,569

111,951

580,570

274,671132,296334,719

141,540

47,520161,290-

21,023,689

8,967

26,015

16,324

124,130

9,329

48,38022,88911,02427,893

11,7953,960

13,440-1,751,974②Property-related expenses (\ Thousands)⑥Capital expenditures (\ Thousands)

Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.

*Total: Cost-weighted average management period (days)- 47 -

a0391

a0401

2【Reference】

Earnings Performance for the Individual Properties for the 22nd Fiscal Period (November 1, 2015 to April 30, 2016)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A039

Total 2 Properties
for sale

Total of 99
Properties

A040

Property NameKDX Toranomon Toranomon Toyo
Building
Building

Acquisition Date

April 17, 2007 June 1, 2007

Price Information

Acquisition price (\ Millions)

4,400

9,850

14,250407,421

Percentage of total portfolio

30.9%

69.1%

100.0%-

Revenue from sale of the investment property (\ Millions)

3,950

11,47015,420-Costs of the investment property (\ Millions)

4,692

9,899

14,591-Gain / Loss on sale of real estate (\ Millions)

△766

1,510

744

-

Number of tenants

-

-

-

-

Leasable floor area (㎡)

-

-

-

-

Leased floor area（㎡)

-

-

-

-

Occupancy ratio

-

-

-

-

As of October 31, 2015

100.0%

90.5%

-

-

As of April 30, 2015

100.0%

90.5%

-

-

As of October 31, 2014

100.0%

75.1%

-

-

As of April 30, 2014

100.0%

96.9%

-

-

As of October 31, 2013100.0%

96.9%

-

-

As of April 30, 2013100.0%

96.9%

-

-

As of October 31, 2012

100.0%

96.9%

-

-

As of April 30, 2012

100.0%

95.1%

-

-

As of October 31, 2011

100.0%

100.0%-

Operating periods

150days150days150days①Rental and other operating revenues (\ Thousands)

As of April 30, 2016
Lease Information-

Income and Retained Earnings Information for the 22nd Fiscal Period

174days *Total: Cost-weighted average management period (days)

84,272

233,795

318,068

12,812,028

Rental revenues

78,830225,077

303,908

11,048,079

Other operating revenues

5,442

8,717

14,1591,763,949

23,584

69,332

92,9174,302,455

Property management fees

5,069

15,59920,6691,251,482

Taxes

14,12542,57556,701

1,112,600

Utilities

3,388

9,864

13,252

1,071,934

Repairs and maintenance costs

82

398

480

451,262

Insurance

51

184

235

17,492Trust fees and other expenses

867

710

1,577

397,683③NOI （＝①-②） (\ Thousands)

60,688164,462

225,151

8,509,573④Depreciation (\ Thousands)

10,701

14,022

24,7232,230,747⑤Rental operating income （＝③-④） (\ Thousands)

49,986

150,440

200,4276,278,825---

1,120,238⑦NCF （＝③-⑥） (\ Thousands)

60,688164,462

225,151

7,389,334

Expense ratio （＝②／①）

28.0%

29.7%

29.2%

33.6%

-

-

-

-

Property management fee (Leasing management fees ) of ② (\ Thousands)

2,958

8,127

11,086

428,073

Reference： Percentage of rental and other operating revenues

3.5%

3.5%

3.5%

3.3%

75,680286,720

-

-

6,306

23,893--②Property-related expenses (\ Thousands)⑥Capital expenditures (\ Thousands)

Property tax for the year 2016 or 2015 (\ Thousands)
ReferenceLong-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.

A039
A040

KDX Toranomon Building was sold on March 30, 2016
Toranomon Toyo Building was sold on March 30, 2016

- 48 -※As of April 30, 2016

(Reference) Borrowings
Borrowings as of April 30, 2016 are as follows.
Classification
Short-Term
PayableCurrent Potion of Long-Term Payable
Long-Term Payable

LenderDrawndown Date

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sub Total
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
The Bank of Fukuoka, Ltd.
(Note 3)
Resona Bank, Limited(Note 3)Development Bank of Japan Inc.
(Note 3)
Sumitomo Mitsui Trust Bank, Limited(Note 3)
Mitsubishi UFJ Trust and Banking Corporation(Note 3)
Sub Total
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Resona Bank, Limited
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
The Bank of Fukuoka, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited
Resona Bank, Limited
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
The Bank of Fukuoka, Ltd.
The Hiroshima Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.
The 77 Bank, Ltd.
The Higashi-Nippon Bank, Limited
Development Bank of Japan Inc.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
The Hiroshima Bank, Ltd.
Mizuho Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mizuho Trust & Banking Co., Ltd.
The Bank of Fukuoka, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Mizuho Trust & Banking Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation

April 2, 2015
July 31, 2015
March 31, 2016
May 1, 2006
November 12, 2010
November 12, 2010
December 1, 2010
December 1, 2010
January 31, 2011
February 28, 2011
March 31, 2011
March 31, 2011
April 28, 2011
January 10, 2012
February 18, 2013
April 30, 2013
July 31, 2013
December 26, 2011
December 26, 2011
December 26, 2011
October 31, 2012
October 31, 2012
November 12, 2015
March 28, 2012
December 10, 2012
December 28, 2012
January 15, 2013
January 31, 2014
November 12, 2010
December 1, 2010
March 28, 2012
March 28, 2012
June 29, 2012
September 21, 2012
September 21, 2012
September 21, 2012
October 31, 2012
October 31, 2012
December 28, 2012
December 28, 2012
March 26, 2013
March 26, 2013
July 31, 2013
August 19, 2013
August 19, 2013
August 19, 2013
August 19, 2013
August 19, 2013
August 30, 2013
August 30, 2013
August 30, 2013
August 30, 2013
September 30, 2013
September 30, 2013
October 31, 2013
November 12, 2013
November 12, 2013
November 12, 2013
November 29, 2013
November 29, 2013
November 29, 2013
January 10, 2014
January 31, 2014
January 31, 2014
March 12, 2014
March 12, 2014
March 12, 2014
March 12, 2014
March 20, 2014
March 20, 2014
March 20, 2014
March 20, 2014
March 31, 2014
April 22, 2014
July 10, 2014
July 10, 2014
July 10, 2014
July 14, 2014
July 31, 2014
July 31, 2014
July 31, 2014
July 31, 2014
August 29, 2014
September 1, 2014
September 1, 2014
September 3, 2014
September 3, 2014
September 22, 2014
September 30, 2014
October 31, 2014

Balance at the
Beginning of
Period(\Thousands)

Balance at theEnd of Period(\Thousands)

1,500,000
1,000,000
2,500,000
5,000,000
1,200,000
800,000
800,000
200,000
800,000
500,000
2,000,000
1,000,000
1,000,000
2,500,000
1,500,000
1,000,000
1,500,000
2,500,000
2,500,000
2,000,000
2,500,000
1,500,000
500,000
500,000
2,000,000
1,000,000
1,200,000
36,000,000
2,300,000
700,000
1,400,000
1,000,000
1,500,000
5,000,000
1,000,000
1,000,000
2,500,000
2,500,000
500,000
500,000
1,000,000
1,000,000
500,000
1,000,000
1,000,000
500,000
500,000
500,000
700,000
500,000
300,000
1,500,000
1,800,000
900,000
500,000
1,000,000
2,000,000
500,000
1,000,000
900,000
200,000
1,300,000
2,300,000
3,700,000
2,250,000
450,000
1,800,000
1,800,000
3,000,000
4,000,000
3,000,000
2,000,000
2,500,000
2,900,000
500,000
2,000,000
500,000
1,000,000
1,000,000
2,700,000
300,000
2,200,000
1,000,000
800,000
500,000
1,000,000
950,000
2,700,000
1,000,000
3,000,000

1,000,000
1,500,000
2,500,000
1,500,000
2,500,000
2,500,000
2,000,000
2,500,000
1,500,000
2,000,000
500,000
500,000
2,000,000
1,000,000
1,200,000
19,700,000
2,300,000
700,000
1,400,000
1,000,000
1,500,000
5,000,000
1,000,000
1,000,000
2,500,000
2,500,000
500,000
500,000
1,000,000
1,000,000
500,000
1,000,000
1,000,000
500,000
500,000
500,000
700,000
500,000
300,000
1,500,000
1,800,000
900,000
500,000
1,000,000
2,000,000
500,000
1,000,000
900,000
200,000
1,300,000
2,300,000
3,700,000
2,250,000
450,000
1,800,000
1,800,000
3,000,000
4,000,000
3,000,000
2,000,000
2,500,000
2,900,000
500,000
2,000,000
500,000
1,000,000
1,000,000
2,700,000
300,000
2,200,000
1,000,000
800,000
500,000
1,000,000
950,000
2,700,000
1,000,000
3,000,000- 49 -

Average
Interest Rate
(Note 1)(%)

Last Repayment Date

Payment
MethodUsage

Remarks

0.519
0.511
0.451

March 31, 2016
July 31, 2016
March 31, 2017

Full onmaturity(Note 2)

Unsecured/
Unguaranteed

2.731
1.789
1.789
1.283
1.283
1.939
1.952
1.905
1.221
1.886
1.269
0.840
0.671
0.570
1.415
1.439
1.439
1.061
1.045
0.489
1.364
0.983
1.013
0.974
0.667

April 30, 2016
November 12, 2015
November 12, 2015
November 12, 2015
November 12, 2015
January 29, 2016
January 29, 2016
January 29, 2016
March 31, 2016
January 29, 2016
January 29, 2016
February 18, 2016
April 30, 2016
July 29, 2016
October 31, 2016
October 31, 2016
October 31, 2016
October 31, 2016
October 31, 2016
November 30, 2016
March 28, 2017
December 12, 2016
December 28, 2016
January 15, 2017
January 31, 2017

Full onmaturity(Note 2)

Unsecured/
Unguaranteed

2.023
2.206
1.770
1.770
1.286
1.158
1.158
1.158
1.096
1.253
1.086
1.086
1.036
1.036
0.670
0.950
0.950
0.950
0.950
0.969
1.080
1.080
1.080
1.420
1.059
1.059
0.887
0.820
1.074
1.074
1.122
1.122
0.844
1.205
1.130
0.932
0.751
0.781
0.916
1.358
0.912
1.013
1.199
1.349
0.762
0.954
0.640
0.903
0.903
0.682
0.616
0.736
0.756
1.014
0.650
0.885
0.885
0.979
0.979
0.798
0.893
0.802

November 12, 2017
November 12, 2017
March 28, 2019
March 28, 2019
June 30, 2017
September 21, 2017
September 21, 2017
September 21, 2017
October 31, 2017
October 31, 2018
December 28, 2017
December 29, 2017
March 26, 2018
March 26, 2018
July 31, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 31, 2018
August 31, 2018
August 31, 2018
August 31, 2020
September 30, 2019
September 30, 2019
October 31, 2018
November 12, 2018
November 12, 2020
November 12, 2020
November 30, 2020
November 30, 2020
November 30, 2018
January 31, 2021
January 31, 2021
January 31, 2020
March 12, 2018
March 31, 2019
March 12, 2020
March 12, 2023
March 12, 2020
September 20, 2021
March 20, 2022
March 12, 2023
March 31, 2019
October 31, 2020
July 10, 2019
July 10, 2021
July 10, 2021
July 31, 2019
July 31, 2019
July 31, 2020
October 31, 2020
July 31, 2022
July 31, 2019
August 31, 2021
August 31, 2021
August 31, 2022
August 31, 2022
September 30, 2020
September 30, 2021
October 31, 2021

Full onmaturity(Note 2)

Unsecured/
UnguaranteedClassification

LenderDrawndown Date

Balance at the
Beginning of
Period(\Thousands)

Balance at theEnd of Period(\Thousands)

Average
Interest Rate
(Note 1)(%)

Last Repayment Date

Payment
MethodUsage

Remarks

Long-Term Payable

Resona Bank, Limited
October 31, 2014
2,000,000
2,000,000
1.071 October 31, 2023
Development Bank of Japan Inc.
October 31, 2014
1,500,000
1,500,000
1.126 October 31, 2023
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 31, 2014
1,000,000
1,000,000
1.071 October 31, 2023
Sumitomo Mitsui Banking Corporation
October 31, 2014
2,000,000
2,000,000
1.257 October 31, 2024
Development Bank of Japan Inc.
October 31, 2014
1,000,000
1,000,000
1.259 October 31, 2024
Mitsubishi UFJ Trust and Banking Corporation
January 30, 2015
January 31, 2021
1,500,000
1,500,000
0.710
Sumitomo Mitsui Banking Corporation
January 30, 2015
January 31, 2025
1,500,000
1,500,000
1.161
Sumitomo Mitsui Trust Bank, Limited
February 18, 2015
1,250,000
1,250,000
0.907 February 28, 2022
Aozora Bank, Ltd.
February 18, 2015
350,000
350,000
0.907 February 28, 2022
Sumitomo Mitsui Banking Corporation
February 18, 2015
1,700,000
1,700,000
1.157 February 29, 2024
Development Bank of Japan Inc.
February 18, 2015
1,250,000
1,250,000
1.314 February 28, 2025
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
February 27, 2015
2,100,000
2,100,000
1.153 February 28, 2025
Mizuho Bank, Ltd.
March 12, 2015
1,000,000
1,000,000
1.218 February 28, 2025
Sumitomo Mitsui Banking Corporation
March 31, 2015
March 31, 2025
2,500,000
2,500,000
1.266
Aozora Bank, Ltd.
April 30, 2015
April 30, 2022
2,300,000
2,300,000
0.825Mizuho Bank, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
The Bank of Fukuoka, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
The Nishi-Nippon City Bank, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
The 77 Bank, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
Full on
Unsecured/(Note 2)
The Higashi-Nippon Bank, Limited
August 31, 2015
August 31, 2022
500,000
500,000
0.872
maturity
Unguaranteed
The Mie Bank, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
Sumitomo Mitsui Trust Bank, Limited
September 30, 2015
2,000,000
2,000,000
1.065 September 30, 2024
Mitsubishi UFJ Trust and Banking Corporation
October 30, 2015
1,000,000
1,000,000
0.989 October 31, 2024
Mizuho Bank, Ltd.
October 30, 2015
1,500,000
1,500,000
1.114 October 30, 2025
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 30, 2015
2,000,000
2,000,000
1.114 October 30, 2025
Sumitomo Mitsui Banking Corporation
October 30, 2015
2,500,000
2,500,000
1.114 October 30, 2025
Development Bank of Japan Inc.
October 30, 2015
2,500,000
2,500,000
1.121 October 30, 2025
Resona Bank, Limited
November 12, 2015
1,000,000
1.173 November 30, 2025
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
January 29, 2016
January 31, 2022
2,500,000
0.590
Sumitomo Mitsui Banking Corporation
January 29, 2016
January 31, 2022
500,000
0.640
Sumitomo Mitsui Banking Corporation
January 29, 2016
January 29, 2026
2,000,000
1.074
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
January 29, 2016
January 29, 2026
1,800,000
1.024
Sumitomo Mitsui Trust Bank, Limited
February 18, 2016
1,000,000
0.998 February 18, 2026
Aozora Bank, Ltd.
February 18, 2016
500,000
0.998 February 18, 2026
Resona Bank, Limited
March 30, 2016
March 31, 2019
1,000,000
0.169
Resona Bank, Limited
March 31, 2016
March 31, 2026
1,000,000
0.898
Development Bank of Japan Inc.
April 28, 2016
April 30, 2024
2,000,000
0.654
Development Bank of Japan Inc.
April 28, 2016
April 30, 2026
2,000,000
0.835
Mitsubishi UFJ Trust and Banking Corporation
April 28, 2016
April 30, 2026
1,000,000
0.865
Sub Total
127,300,000
143,600,000
Total
165,800,000
165,800,000
Note 1: The average interest rate is the weighted-average interest rate for the fiscal period, rounded to the third decimal place. The Investment Corporation entered into interest-rate swap transactions with the aim ofminimizing the risk of future increase in interest rates. The effect of interest-rate swap transactions has been incorporated into calculations for the weighted-average interest rate.
Note 2: Funds procured through borrowings are used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings, etc.
Note 3: Borrowings listed in the current potion of long-term payable were listed in long-term payable in the previous fiscal period.

- 50 -