Financial Summary (Unaudited)
Historical Operating Trends
For the 28th-32nd Fiscal Periods

28th Period(Apr. 2019)29th Period(Oct. 2019)30th Period(Apr. 2020)

31st Period(Oct. 2020)

32nd Period(Apr. 2021)

millions of yen

15,212

15,027

15,272

16,71416,301(Rental revenues)

millions of yen

14,595

14,95915,215

15,583

15,119Operating expenses

millions of yen

8,039

8,199

8,132

8,380

8,310

(Property-related expenses)

millions of yen

6,880

7,092

7,008

7,086

6,880

Operating income

millions of yen

7,172

6,828

7,140

8,334

7,990

Ordinary income

millions of yen

6,179

5,845

6,177

7,311

7,017

Net income (a)millions of yen

6,178

5,844

6,175

7,310

7,016

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

millions of yen%

436,753(–0.1)

439,773(+0.7)

447,707(+1.8)

459,719(+2.7)

457,505(–0.5)

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

millions of yen%

182,050(–0.5)

185,050(+1.6)

192,050(+3.8)

201,750(+5.1)

198,750(–1.5)

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

millions of yen%

229,440(+0.1)

229,276(–0.1)

229,589(+0.1)

230,665(+0.5)

230,981(+0.1)

Unitholders’ capital(Period-on-period change)

millions of yen%

220,970(0.0)

220,970(0.0)

220,970(0.0)

220,970(0.0)

220,970(0.0)

Number of investment units issued and outstanding (e) unit

428,510428,510428,510428,510428,510Unitholders’ equity per unit (d)/(e)yen535,437

535,054535,786

538,295

539,034

Total distribution (f)millions of yen

5,878

5,844

6,175

6,592

6,592

Distribution per unit (f)/(e)yen

13,71913,63914,412

15,384

15,384(Earnings distributed per unit)

yen

13,71913,63914,412

15,384

15,384(Distribution in excess of earnings per unit)

yen

─

─

─

─

─

Return on assets (annualized) (Notes 1 and 2)%

1.4 (2.9)

1.3 (2.6)

1.4 (2.8)

1.6 (3.2)

1.5 (3.1)

Return on net assets (annualized) (Notes 2 and 3)%

2.7 (5.4)

2.5 (5.1)

2.7 (5.4)

3.2 (6.3)

3.0 (6.1)

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

52.5(+0.1)

52.1(–0.4)

51.3(–0.9)

50.2(–1.1)

50.5(+0.3)

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

41.7(–0.2)

42.1(+0.4)

42.9(+0.8)

43.9(+1.0)

43.4(–0.4)

Payout ratio (Note 4) (f)/(a)

%

95.1

99.9

99.9

90.1

93.9

96

97

99

98

96

PeriodUnit

Operating revenues

Other references
Number of properties

properties

Total leasable floor aream2

468,528.20

480,328.18

488,127.53

488,010.71

482,299.10

Occupancy rate at end of period

%

99.2

99.5

99.5

98.1

96.7

Depreciation expenses for the period

millions of yen

2,369

2,419

2,470

2,523

2,548

Capital expenditures for the period

millions of yen

1,231

1,426

1,485

1,251

1,420

Leasing NOI (Net Operating Income) (Note 5)

millions of yen

10,084

10,287

10,676

11,01910,787

FFO (Funds from Operation) (Note 6)

millions of yen

7,983

8,265

8,646

8,776

8,635

FFO per unit (Note 7)

yen

18,63019,287

20,17820,48020,153

Notes: 1. Return on assets = Ordinary income / {(Total assets at beginning of period + Total assets at end of period) / 2} × 100
2. Annualized values for the 28th Fiscal Period are calculated based on a period of 181 days, 184 days for the 29th Fiscal Period, 182 days for the 30th Fiscal Period,
184 days for the 31st Fiscal Period, and 181 days for the 32nd Fiscal Period.
3. Return on net assets = Net income / {(Total net assets at beginning of period + Total net assets at end of period) / 2} × 100
4. Payout ratio is rounded down to the first decimal place.
5. Leasing NOI = Rental revenues – Property-related expenses + Depreciation expenses for the period
6. FFO = Net income + Depreciation expenses for the period – Gain on sale of real estate properties + Loss on sale of real estate properties
7. FFO per unit = FFO / Number of investment units issued and outstanding (figures below ¥1 rounded down)

Kenedix Office Investment Corporation

15

Kenedix Office Investment Corporation

Balance Sheet
As of April 30, 2021
As of April 30, 2021
AssetsCurrent assets
Cash and deposits (Notes 4 and 16)
Cash and deposits in trust (Notes 4 and 16)
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment (Notes 5 and 18)
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust (Note 8)
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment, net
Intangible assets (Note 5)
Leasehold right (Note 18)
Leasehold right in trust (Note 18)
Other
Total intangible assets
Investments and other assets
Investment securities (Note 16)
Lease and guarantee deposits
Lease and guarantee deposits in trust
Long-term prepaid expenses
Other (Notes 11,16 and 17)
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets

16
KENEDIX Office Investment Corporation

As of October 31, 2020

In thousands of yen¥

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

16,128,897
12,042,095
336,234
109,949
13,76628,630,942

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

17,975,653(6,526,749)
11,448,903
43,564(17,805)
25,759435,359(284,721)
150,638
99,918(68,421)31,49627,520,902
128,754,352(35,161,391)
93,592,960
379,369(191,656)
187,712
1,876,485(850,091)
1,026,394
561,026(365,732)
195,294
293,726,525
6,150
427,912,737

285,257
347,652
137
633,047

285,257
348,426540
634,225

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

1,137,526
10,000122,889
1,183,120
21,6762,475,213
431,022,176

51,41957,394
9,171
66,565459,719,684–¥

51,419457,505,270¥

As of April 30, 2021
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable (Notes 7 and 16)
Current portion of long-term loans payable (Notes 7,16 and 17)
Accounts payable–otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bonds (Notes 7 and 16)
Long-term loans payable (Notes 7, 16 and 17)
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Other (Notes 16 and 17)
Total non-current liabilities
Total liabilities
Net Assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges (Notes 16 and 17)
Total valuation and translation adjustments
Total net assets (Note 12)
Total liabilities and net assets

As of October 31, 2020

In thousands of yen¥¥

1,658,337
6,800,000
21,700,000
594,832
76,731
813
476,580
2,851,496
12,26034,171,052¥

1,496,596
12,500,000
23,000,000
679,554
79,227756
304,8212,678,412
3,799
40,743,168

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

11,000,000
155,250,000
2,007,851
19,640,709
412,880
188,311,441
229,054,609

220,970,508

220,970,508

3,493,596
3,493,596
7,016,251
10,509,848
231,480,356

2,775,335
2,775,335
7,310,459
10,085,794
231,056,303(498,680)(498,680)
230,981,676
457,505,270(391,228)(391,228)
230,665,074
459,719,684¥

See accompanying notes to the financial statements.

Kenedix Office Investment Corporation17

Kenedix Office Investment Corporation

Statement of Income and Retained Earnings
For the period from November 1, 2020 to April 30, 2021
From November 1, 2020

From May 1, 2020

to April 30, 2021

to October 31, 2020

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

13,508,875¥

13,757,065

Other lease business revenue (Note 14)

1,610,737

1,826,092

Gain on sale of real estate properties (Note 14)

1,128,423

1,057,790

53,08973,522

16,301,126

16,714,470

Expenses related to rent business (Note 14)

6,880,711

7,086,783

Loss on sale of real estate properties (Note 14)

198,923–

Asset management fees

1,044,945

1,110,211

Directors' compensation

8,400

8,400

Asset custody fees

23,742

23,431

Administrative service fees

59,231

58,207

Audit fees

12,80012,800

Other operating expenses

81,52780,234

Total operating expenses

8,310,282

8,380,067

Operating income

7,990,843

8,334,402

Dividends income
Total operating revenues
Operating expenses

Non-operating income
Interest income

49

69

Gain on forfeiture of unclaimed dividends

398

309

4

3

453

382

Interest expenses

776,153805,749

Interest expenses on investment corporation bonds

33,24930,712Financing-related expenses

125,161

128,471

Interest on refund
Total non-operating income
Non-operating expenses

Amortization of investment corporation bond issuance costs

5,975

5,551

Amortization of investment unit issuance costs

9,171

9,171

24,04443,783

973,755

1,023,438

Ordinary income

7,017,541

7,311,346

Income before income taxes

7,017,541

7,311,346

Current

1,299

1,115

Deferred(9)

11

Other non-operating expenses
Total non-operating expenses

Income taxes (Note 11)

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings
See accompanying notes to the financial statements.

18
KENEDIX Office Investment Corporation

1,290

1,126

7,016,251

7,310,219
240

–

¥

7,016,251¥

7,310,459

Kenedix Office Investment Corporation

Statement of Changes in Net Assets
For the period from November 1, 2020 to April 30, 2021
Valuationandtranslation
adjustments

Unitholders' equity (Note 6)

Surplus
Voluntary
retainedearnings

Deferred
UnappropriatedTotal

gains orUnitholders'

Reserve forretained earnings

Total

unitholders'losses on

Total net

capitalreduction entry(Note 21)

surplusequityhedgesassetsIn thousands of yen
Balance as ofApril 30, 2020¥

220,970,508¥

2,775,335¥

6,175,926¥

8,951,261¥

229,921,769¥(332,017)¥

229,589,752

Changes during the fiscal period
Dividends of surplus––（6,175,686）（6,175,686）（6,175,686）–（6,175,686）

Net income––

7,310,219

7,310,219

7,310,219–

7,310,219

–

–

–

–

–

(59,211)(59,211)––

1,134,533

1,134,533

1,134,533(59,211)

1,075,322

Net changes of items otherthan unitholders’ equity
Total changes during
the fiscal period
Balance as of
October 31, 2020¥

220,970,508¥

2,775,335¥

7,310,459¥

10,085,794¥

231,056,303¥(391,228)¥

230,665,074

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

–

–

–

–

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

Net income––

7,016,251

7,016,251

7,016,251–

7,016,251

–

–

–

–

–

(107,451)(107,451)–

718,261(294,208)

424,053424,053(107,451)

316,601

reduction entry

Net changes of items otherthan unitholders’ equity
Total changes during
the fiscal period
Balance as ofApril 30, 2021¥

220,970,508¥

3,493,596¥

7,016,251¥

10,509,848¥

231,480,356¥(498,680)¥

230,981,676

See accompanying notes to the financial statements.

Kenedix Office Investment Corporation

19

Kenedix Office Investment Corporation
Statement of Cash Flows
For the period from November 1, 2020 to April 30, 2021

From November 1, 2020
to April 30, 2021

From May 1, 2020
to October 31, 2020

In thousands of yen

Cash flows from operating activities
Income before income taxes¥

Depreciation
Amortization of long-term prepaid expenses

7,017,541¥

7,311,346

2,549,244

2,523,749

116,505

118,931

Interest income

(49)

(69)

Interest expenses

809,403

836,461

Amortization of investment unit issuance costs

9,171

9,171

Amortization of investment corporation bond issuance costs

5,975

5,551

Decrease (increase) in operating accounts receivable

80,426(58,776)

Decrease (increase) in prepaid expenses

39,114(35,348)

Increase (decrease) in operating accounts payable(290,597)

287,784

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

189,242

Increase (decrease) in accrued consumption taxes

171,759(73,292)

Increase (decrease) in advances received

173,084(143,064)

Increase (decrease) in deposits received

8,460(3,426)

Decrease in property, plant and equipment in trust due to sale

3,086,836

5,287,017

Decrease (increase) in long-term prepaid expenses(116,060)(151,900)

Other, net(15,521)(14,249)

13,564,741

16,089,127

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

49

69(811,899)(829,217)

(764)

(835)

12,752,128

15,259,143(45,815)(28,038)(1,168,428)(17,408,155)

(27)

–

Repayments of tenant leasehold and security deposits(28,160)(111,848)

Proceeds from tenant leasehold and security deposits

181,075

99,089

Repayments of tenant leasehold and security deposits in trust(954,679)(623,681)

Proceeds from tenant leasehold and security deposits in trust

1,004,016

1,296,269

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

Proceeds from restricted deposits in trust

9,631

89,059(1,022,674)(16,687,305)

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

5,800,000

4,000,000

Repayments of short-term loans payable(11,500,000)(1,000,000)

Proceeds from long-term loans payable

13,900,000

16,800,000

Repayments of long-term loans payable(11,200,000)(11,100,000)

Proceeds from issuance of investment corporation bonds–

992,122

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

(6,592,738)(6,174,673)

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

3,517,449

Net increase (decrease) in cash and cash equivalents

2,133,486

2,089,287

Net cash provided by (used in) investing activities

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

20
KENEDIX Office Investment Corporation

26,433,973¥

28,567,460

24,344,686¥

26,433,973

Kenedix Office Investment Corporation

Notes to the Financial Statements
For the period from November 1, 2020 to April 30, 2021

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Kenedix Office Investment Corporation (“the Investment Corporation”) is a real estate investment corporation whose units are listedon the Tokyo Stock Exchange. The Investment Corporation is engaged in the ownership and operation of selected mainly officebuildings in Japan, with a focus on mid-sized office buildings in the Tokyo metropolitan area. The Investment Corporation wasincorporated on May 6, 2005 as an investment corporation under the Law Concerning Investment Trusts and Investment Corporationsof Japan, or “the Investment Trust Law.” On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust
Market of the Tokyo Stock Exchange with a total of 75,400 investment units issued and outstanding (Securities Code: 8972).
Subsequently, the Investment Corporation raised funds through eight public offerings. Pursuant to the Investment Trust Law, theInvestment Corporation is externally managed by a registered asset management company, Kenedix Real Estate Fund Management,
Inc. (“the Asset Management Company”), a subsidiary of Kenedix, Inc. (“Kenedix”). In concert with the Asset Management Company,
the Investment Corporation strives to maximize cash distribution to investors by securing stable earnings and sustainable investment
growth. To this end, the Investment Corporation adopts a dynamic and flexible investment stance that accurately reflects its
environment and market trends, and endeavors to ensure a timely response to each and every opportunity.
During the period ended October 31, 2020, the Investment Corporation acquired one office building (KDX Shinbashi Ekimae
Building(*): acquisition price of ¥16,300 million) and sold two office buildings (KDX Nihonbashi Honcho Building: initial acquisition
price of ¥4,000 million, and KDX Nihonbashi Edo-dori Building: initial acquisition price of ¥1,350 million) with a disposition priceof ¥6,550 million.
During the period ended April 30, 2021, the Investment Corporation sold two office buildings (KDX Shin-Nihonbashi Building:initial acquisition price of 2,300 million yen, and KDX Hon-Atsugi Building: initial acquisition price of 1,305 million yen) with adisposition price of ¥4,135 million.
At the end of the thirty-first and thirty-second fiscal periods (fiscal periods ended October 31, 2020 and April 30, 2021), theInvestment Corporation had total unitholders’ capital of ¥220,970 million with 428,510 investment units outstanding, respectively.
The Investment Corporation owned a portfolio of 98 properties (consisting of 97 office buildings and one other property) and 96
properties (consisting of 95 office buildings and one other property) with total acquisition prices of ¥443,785 million and ¥440,180
million at the end of the thirty-first and thirty-second fiscal periods, respectively. The occupancy ratios were approximately 98.1% and96.7% at the end of the thirty-first and thirty-second fiscal periods, respectively.
(*) The property name was changed from “Shinbashi M-SQUARE Bright” to “KDX Shinbashi Ekimae Building” on February 1, 2021.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trust Act ofJapan, the Financial Instruments and Exchange Law of Japan and related regulations, and in conformity with accounting principles
and practices generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to the application anddisclosure requirements of the International Financial Reporting Standards or accounting principles generally accepted in the UnitedStates of America.
The accompanying financial statements are basically a translation of the audited financial statements that were prepared for Japanese
domestic purposes from the accounts and records maintained by the Investment Corporation and filed with the Kanto Local Finance
Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law. In preparing the accompanying
financial statements, relevant notes have been added and certain reclassifications have been made to the financial statements issued
domestically in order to present them in a form that is more familiar to readers outside Japan. The Investment Corporation’s fiscal
period is a six-month period that ends at the end of April and the end of October each year. The Investment Corporation does notprepare consolidated financial statements because it has no subsidiaries.

Kenedix Office Investment Corporation21

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) Securities
Non-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving
average method. Concerning silent partnership (tokumei kumiai, “TK”) interests, the method of incorporating the amount ofequity equivalent to the portion that corresponds to the net gain or loss of the TK is adopted.
(B) Property, Plant and Equipment (including trust assets)
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is calculated on a straight-line
basis over the estimated useful lives of the assets ranging as stated below:
From November 1, 2020
to April 30, 2021
Buildings
2–49 years

From May 1, 2020
to October 31, 2020
2–49 years

Structures

2–45 years

2–45 years

Machinery and equipment

3–17 years

3–17 years

Tools, furniture and fixtures

3–20 years

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

22
KENEDIX Office Investment Corporation

(I)Taxes on Property, Plant and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on acalendar year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes
corresponding to the said period. Under Japanese tax rules, the seller of property at the time of disposal is liable for these taxes on
the property from the date of disposal to the end of the calendar year in which the property is disposed. The seller, however, isgenerally reimbursed by the purchaser for these accrued property-related tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related tothe period following the purchase date of each property through the end of the calendar year. The amounts of those allocatedportions of the property-related taxes are capitalized as part of the acquisition costs of the related properties. Capitalized propertyrelated taxes amounted to ¥38,663 thousand as of October 31, 2020. There were no capitalized property-related taxes as of April
30, 2021. In subsequent calendar years, such property-related taxes are charged as operating expenses in the fiscal period to which
the installments of such taxes correspond.

(J) Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases ofassets and liabilities using the statutory tax rates.
(K) Consumption Taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Non-deductible consumption
taxes applicable to the acquisition of assets are included in the cost of acquisition for each asset.
(L) Derivative Financial Instruments
The Investment Corporation utilizes interest-rate swap contracts as derivative financial instruments only for the purpose ofhedging its exposure to changes in interest rates. The Investment Corporation deferred recognition of gains or losses resulting
from changes in fair value of interest-rate swap contracts because these contracts met the criteria for deferral hedging accounting.
However, the Investment Corporation adopted special treatment for interest-rate swap contracts if they met the criteria for hedging
accounting under this treatment. The hedge effectiveness for the interest-rate swap contracts is assessed each fiscal period except
for those that meet the criteria of special treatment.
(M) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid,readily convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less fromthe date of purchase.
(N) Presentation of Amounts
Amounts of less than one thousand yen have been truncated in the Japanese financial statements prepared in accordance withJapanese GAAP and filed with regulatory authorities in Japan. Unless otherwise noted, amounts are rounded down and ratios arerounded off in the accompanying financial statements.
Totals shown in the accompanying financial statements do not necessarily agree with the sums of the individual amounts.

Kenedix Office Investment Corporation23

3. ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE
New accounting standards and implementation guidance issued but not yet effective are as follows:・ “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29 issued on
March 31, 2020)
・ “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 issued on March 26,
2021)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the United States
have jointly developed comprehensive accounting standards for revenue recognition and issued “Revenue from Contracts with
Customers” (IFRS 15 (IASB) and Topic 606 (FASB)) in May 2014. Given the situation where IFRS 15 is applied from fiscal
years beginning on or after January 1, 2018 and that Topic 606 is applied from fiscal years beginning after December 15, 2017,
the ASBJ has developed comprehensive accounting standards for revenue recognition and issued them together with theimplementation guidance.
The basic policy of the ASBJ when it developed the accounting standards for revenue recognition was to specify the accounting
standards, incorporating the basic principles of IFRS 15 as a starting point, from the perspective of comparability between
financial statements, which is one of the benefits of maintaining compatibility with IFRS 15. The basic policy also stipulates that
if there is an item to which consideration should be given, such as practices that have been conducted thus far in Japan, alternative
treatments will be added to the extent to which comparability is not impaired.
(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending October 31, 2021.
(3) Impact of applying the accounting standards
The impact of applying “Accounting Standard for Revenue Recognition” and its guidance on the financial statements is currently
under evaluation.

・ “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on July 4, 2019)
・ “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 issued on July 4,
2019)・ “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on March
31, 2020)(1) Overview
The IASB and the FASB have established detailed guidance regarding fair value measurement (IFRS 13 “Fair Value Measurement”(IASB) and Topic 820 “Fair Value Measurement” (FASB)). The ASBJ repeatedly considered the guidance regarding fair valueof financial instruments and disclosure in order to improve the comparability with such international accounting standards, andissued “Accounting Standard for Fair Value Measurement” and “Implementation Guidance on Accounting Standard for Fair
Value Measurement.”(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending October 31, 2021.
(3) Impact of applying the accounting standards
The impact of applying the “Accounting Standard for Fair Value Measurement” and its guidance on the financial statements iscurrently under evaluation.

KENEDIX Office Investment Corporation

24

4. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following as of April 30, 2021 and October 31, 2020.
As of April 30, 2021

As of October 31, 2020

In thousands of yen
Cash and deposits¥

18,455,256

Cash and deposits in trust¥

11,859,877

Restricted deposits in trust (Note)(1,747,673)

Cash and cash equivalents in trust¥

16,128,897
12,042,095(1,737,018)

28,567,460¥

26,433,973

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

5. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Property, plant and equipment and intangible assets consist of the following as of April 30, 2021.
Type of asset

Balance atthe beginningof period

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodDepreciation
Accumulated
depreciation

Depreciation
for the periodNetbalance atthe end of
periodRemarks(in thousands of yen)
Buildings¥ 17,975,653¥ 51,126

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

43,56419,0201,215

24,543435,359

6,930–

442,289

297,207

12,485145,082

99,918984–

100,90272,2203,799

28,681

Structures
Machinery andequipment
Tools, furnitureand fixtures
Land

27,520,902––

27,520,902––

27,520,902

Subtotal

46,075,399

59,040–46,134,439

7,221,414

323,715

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

379,369

12,1204,596

386,893

199,805

12,255

187,087

1,876,485

122,127

67,7471,930,865

855,126

58,995

1,075,738

561,026

99,907

11,588649,345

378,890

23,276

270,454

Land in trust
Construction inprogress in trust

293,726,525–

1,849,767

291,876,758––

291,876,758

6,150

6,600

–

12,750––12,750Subtotal

425,303,909

1,368,023

3,969,506

422,702,425

37,910,525

2,224,323

384,791,900

Total property, plant andequipment

471,379,308

1,427,063

3,969,506

468,836,865

45,131,939

2,548,039

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

Property,plant andequipment

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

Leasehold right¥ 290,050

Leasehold rightin trust

363,784––

363,784

16,132774

347,652

6,278

27

–

6,306

6,169

431

137

660,11327–

660,141

27,094

1,205

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

OtherTotal intangible assets
Total

¥

–

¥

¥

Note

Note

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

Kenedix Office Investment Corporation25

Property, plant and equipment and intangible assets consist of the following as of October 31, 2020.
Type of asset

Balance atthe beginningof period

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodDepreciation
Accumulated
depreciation

Depreciation
for the periodNetbalance atthe end of
periodRemarks(in thousands of yen)
Buildings¥ 17,951,815¥ 23,838

43,564¥–¥ 17,975,653¥ 6,526,749¥ 305,591¥ 11,448,903––

43,56417,805

1,215

25,759432,2093,150–

435,359284,721

12,359150,638

96,841

3,077–

99,91868,421

3,730

31,496Structures
Machinery andequipment
Tools, furnitureand fixtures
Land

27,520,902––

27,520,902––

27,520,902

Subtotal

46,045,333

30,065–46,075,399

6,897,698

322,896

39,177,700¥ 126,874,865¥ 2,682,955¥ 803,468¥ 128,754,352¥ 35,161,391¥ 2,109,983¥ 93,592,960

362,902

16,466–379,369

191,656

11,770187,712

1,741,678

140,227

5,421

1,876,485

850,091

56,086

1,026,394

528,530

37,0064,510

561,026

365,732

21,610195,294

283,648,781

14,774,582

4,696,837

293,726,525––

293,726,525

–

6,150

–

6,150

–

–

6,150

Subtotal

413,156,757

17,657,388

5,510,237

425,303,909

36,568,871

2,199,450

388,735,037

Total property, plant andequipment

459,202,091

17,687,453

5,510,237

471,379,308

43,466,570

2,522,346

427,912,737–¥ 290,050¥ 4,792–¥ 285,257

363,784

15,357774

348,426

Property,plant andequipment

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

Intangible
assetsLeasehold right¥ 290,050

Leasehold rightin trust

363,784

–

–

Other
Total intangible assets
Total

¥

–

¥

¥

6,278

–

–

6,278

5,738

627

540

660,113––660,11325,8881,402

634,225¥ 459,862,205¥ 17,687,453¥ 5,510,237¥ 472,039,421¥ 43,492,458¥ 2,523,749¥ 428,546,962

Notes 1
and 2

Notes 1
and 2

Note1: The amount of increase during the period is primarily attributable to the acquisition of the one real estate property.
Note2: The amount of decrease during the period is primarily attributable to the sales of the two real estate properties.

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

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

26
KENEDIX Office Investment Corporation

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

From May 1, 2020
to October 31, 2020
2,000,000

428,510428,510

7. SHORT-TERM LOANS PAYABLE, LONG-TERM LOANS PAYABLE AND INVESTMENTCORPORATION BONDS
The following summarizes short-term loans payable, long-term loans payable and investment corporation bonds outstanding as ofApril 30, 2021:
Classification
Short-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)August 31, 2020

August 31, 2021

0.323%¥

November 30, 2020

November 30, 2021

0.376%

November 30, 2020

November 30, 2021

0.326%

500,000

January 29, 2021

January 29, 2022

0.378%

1,300,000

1,000,000

January 29, 2021

January 29, 2022

0.328%

500,000

February 26, 2021

February 26, 2022

0.378%

2,000,000

March 31, 2021

March 31, 2022

0.327%

500,000

Subtotal
Current portion of long-term loans payable

6,800,000
July 10, 2014

July 10, 2021

0.903%

July 10, 2014

July 10, 2021

0.903%¥

500,000

September 1, 2014

August 31, 2021

0.885%

800,000

September 1, 2014

August 31, 2021

0.885%

500,000

March 20, 2014

September 20, 2021

1.013%

4,000,000

September 30, 2014

September 30, 2021

0.893%

1,000,000

October 31, 2014

October 31, 2021

0.802%

3,000,000

January 29, 2016

January 31, 2022

0.590%

2,500,000

January 29, 2016

January 31, 2022

0.640%

500,000

February 18, 2015

February 28, 2022

0.907%

1,250,000

February 18, 2015

February 28, 2022

0.907%

350,000

March 20, 2014

March 20, 2022

1.199%

3,000,000

April 30, 2015

April 30, 2022

0.825%

2,000,000

2,300,000

SubtotalLong-term loans payable

1,000,000

21,700,000
March 12, 2014

March 12, 2023

1.358%March 20, 2014

March 12, 2023

1.349%¥

1,800,000
2,000,000

July 31, 2014

July 31, 2022

1.014%

2,200,000

September 3, 2014

August 31, 2022

0.979%

1,000,000

September 3, 2014

August 31, 2022

0.979%

950,000

October 31, 2014

October 31, 2023

1.071%

2,000,000

October 31, 2014

October 31, 2023

1.126%

1,500,000

October 31, 2014

October 31, 2023

1.071%

1,000,000

October 31, 2014

October 31, 2024

1.257%

2,000,000

October 31, 2014

October 31, 2024

1.259%

1,000,000

January 30, 2015

January 31, 2025

1.161%

1,500,000

February 18, 2015

February 29, 2024

1.157%

1,700,000

February 18, 2015

February 28, 2025

1.314%

1,250,000

February 27, 2015

February 28, 2025

1.153%

2,100,000

March 12, 2015

February 28, 2025

1.218%

1,000,000

March 31, 2015

March 31, 2025

1.266%

2,500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

September 30, 2015

September 30, 2024

1.065%

2,000,000

October 30, 2015

October 31, 2024

0.989%

1,000,000

Kenedix Office Investment Corporation27

Classification
Long-term loans payable

28
KENEDIX Office Investment Corporation

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

October 30, 2015

October 30, 2025

1.114%

October 30, 2015

October 30, 2025

1.114%¥

1,500,000

October 30, 2015

October 30, 2025

1.114%

2,500,000

October 30, 2015

October 30, 2025

1.121%

2,500,000

November 12, 2015

November 30, 2025

1.173%

1,000,000

January 29, 2016

January 29, 2026

1.074%

2,000,000

January 29, 2016

January 29, 2026

1.024%

1,800,000

February 18, 2016

February 18, 2026

0.998%

1,000,000

February 18, 2016

February 18, 2026

0.998%

500,000

March 31, 2016

March 31, 2026

0.898%

1,000,000

April 28, 2016

April 30, 2024

0.654%

2,000,000

April 28, 2016

April 30, 2026

0.835%

2,000,000

April 28, 2016

April 30, 2026

0.865%

1,000,000

2,000,000

July 29, 2016

July 31, 2026

0.613%

1,500,000

August 2, 2016

July 31, 2026

0.544%

1,000,000

October 31, 2016

October 31, 2024

0.668%

1,000,000

October 31, 2016

October 31, 2026

0.876%

2,500,000

October 31, 2016

October 31, 2026

0.760%

1,000,000

October 31, 2016

October 31, 2026

0.734%

4,000,000

October 31, 2016

October 31, 2026

0.826%

1,500,000

December 12, 2016

November 30, 2026

0.982%

500,000

December 28, 2016

December 28, 2026

0.950%

1,500,000

January 16, 2017

January 31, 2027

0.860%

500,000

January 31, 2017

January 31, 2027

0.853%

700,000

March 28, 2017

March 31, 2027

0.850%

500,000

June 30, 2017

June 30, 2027

0.849%

1,500,000

August 10, 2017

July 28, 2027

0.800%

3,500,000

August 31, 2017

August 31, 2023

0.544%

1,000,000

September 21, 2017

March 31, 2024

0.555%

1,000,000

September 21, 2017

September 30, 2025

0.680%

1,500,000

September 21, 2017

March 31, 2027

0.732%

1,000,000

September 21, 2017

September 21, 2027

0.873%

1,000,000

September 21, 2017

September 30, 2027

0.851%

2,500,000

October 31, 2017

October 31, 2027

0.810%

2,500,000

November 13, 2017

November 13, 2027

0.931%

3,000,000

December 7, 2017

November 30, 2027

0.899%

1,400,000

December 7, 2017

November 30, 2027

0.820%

1,200,000

December 7, 2017

November 30, 2027

0.969%

1,000,000

December 7, 2017

November 30, 2027

0.939%

1,000,000

December 7, 2017

November 30, 2027

0.869%

1,000,000

December 7, 2017

November 30, 2027

0.899%

800,000

December 7, 2017

November 30, 2027

0.869%

600,000

December 28, 2017

December 28, 2025

0.744%

500,000

December 28, 2017

December 28, 2026

0.878%

500,000

December 28, 2017

December 28, 2027

0.864%

500,000

March 12, 2018

March 31, 2028

0.914%

1,500,000

March 26, 2018

March 31, 2027

0.808%

1,000,000

March 26, 2018

March 31, 2028

0.902%

1,000,000

July 31, 2018

July 31, 2028

0.988%

500,000

August 20, 2018

August 31, 2025

0.696%

500,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

500,000

Classification
Long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)August 20, 2018

August 31, 2028

0.966%¥

500,000

August 31, 2018

August 31, 2025

0.700%

500,000

August 31, 2018

August 31, 2025

0.723%

300,000

August 31, 2018

August 31, 2028

1.012%

700,000

October 31, 2018

October 31, 2028

1.013%

1,500,000

October 31, 2018

October 31, 2028

0.910%

1,000,000

October 31, 2018

October 31, 2028

1.013%

500,000

March 28, 2019

March 31, 2029

0.838%

1,400,000

March 29, 2019

March 31, 2029

0.839%

2,950,000

June 14, 2019

June 30, 2023

0.246%

500,000

June 14, 2019

December 28, 2026

0.517%

500,000

June 14, 2019

April 30, 2027

0.605%

1,000,000

June 14, 2019

March 31, 2029

0.725%

1,000,000

July 10, 2019

July 31, 2023

0.230%

500,000

July 31, 2019

July 31, 2022

0.291%

1,000,000

July 31, 2019

July 31, 2023

0.295%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

September 30, 2019

September 30, 2026

0.489%

1,000,000

September 30, 2019

March 31, 2027

0.531%

900,000

September 30, 2019

March 31, 2027

0.425%

800,000

January 31, 2020

January 31, 2025

0.406%

700,000

January 31, 2020

January 31, 2027

0.526%

1,500,000

January 31, 2020

January 31, 2029

0.675%

1,500,000

March 12, 2020

February 28, 2026

0.361%

1,800,000

March 31, 2020

March 31, 2028

0.642%

1,000,000

June 30, 2020

June 30, 2028

0.646%

2,000,000

June 30, 2020

June 30, 2028

0.646%

2,000,000

June 30, 2020

June 30, 2028

0.646%

700,000

June 30, 2020

June 30, 2028

0.510%

2,000,000

July 31, 2020

July 31, 2028

0.636%

2,700,000

August 31, 2020

August 31, 2030

0.705%

1,500,000

September 30, 2020

September 30, 2025

0.396%

1,000,000

September 30, 2020

September 30, 2027

0.511%

1,000,000

September 30, 2020

September 30, 2030

0.738%

700,000

October 30, 2020

April 30, 2027

0.542%

1,400,000

October 30, 2020

October 31, 2030

0.803%

1,500,000

October 30, 2020

October 31, 2030

0.803%

300,000

November 12, 2020

April 30, 2027

0.552%

1,300,000

November 12, 2020

November 12, 2030

0.808%

700,000

November 12, 2020

November 12, 2030

0.808%

500,000

November 30, 2020

May 31, 2027

0.516%

200,000

November 30, 2020

November 30, 2030

0.763%

900,000

November 30, 2020

November 30, 2030

0.763%

800,000

November 30, 2020

November 30, 2030

0.763%

200,000

January 29, 2021

January 31, 2024

0.287%

1,000,000

January 29, 2021

January 31, 2028

0.527%

1,200,000

January 29, 2021

January 31, 2030

0.678%

2,300,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

November 30, 2030

0.755%

800,000

Kenedix Office Investment Corporation

29

Classification

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

Subtotal

159,250,000

Investment corporation bonds

July 25, 2014

July 25, 2024

1.180%

April 28, 2016

April 28, 2028

0.900%¥

1,000,000

2,000,000

July 19, 2017

July 19, 2022

0.260%

1,000,000

July 19, 2017

July 16, 2027

0.640%

2,000,000

February 15, 2019

February 15, 2024

0.390%

2,000,000

January 30, 2020

January 30, 2025

0.250%

2,000,000

October 20, 2020

October 18, 2030

0.610%

1,000,000

Subtotal

11,000,000

Total

¥

198,750,000

The following summarizes short-term loans payable, long-term loans payable and investment corporation bonds outstanding as of
October 31, 2020:
Classification
Short-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

January 31, 2020

January 31, 2021

0.319%¥

January 31, 2020

January 31, 2021

0.319%

500,000

January 31, 2020

January 31, 2021

0.259%

4,200,000

January 31, 2020

January 31, 2021

0.259%

800,000

March 12, 2020

February 28, 2021

0.359%

2,000,000

March 31, 2020

March 31, 2021

0.309%

500,000

June 30, 2020

June 30, 2021

0.359%

1,000,000

June 30, 2020

June 30, 2021

0.309%

1,000,000

June 30, 2020

June 30, 2021

0.309%

1,000,000

August 31, 2020

August 31, 2021

0.315%

1,000,000

Subtotal
Current portion of long-term loans payable

12,500,000
November 12, 2013

November 12, 2020

1.074%

November 12, 2013

November 12, 2020

1.074%¥

500,000

November 29, 2013

November 30, 2020

1.122%

1,000,000

November 29, 2013

November 30, 2020

1.122%

900,000

November 29, 2019

November 30, 2020

0.359%

1,000,000

November 29, 2019

November 30, 2020

0.309%

500,000

November 29, 2019

November 30, 2020

0.319%

200,000

January 10, 2014

January 31, 2021

1.205%

1,300,000

January 31, 2014

January 31, 2021

1.130%

2,300,000

January 30, 2015

January 31, 2021

0.710%

1,500,000

July 10, 2014

July 10, 2021

0.903%

2,000,000

30
KENEDIX Office Investment Corporation

2,000,000

July 10, 2014

July 10, 2021

0.903%

500,000

September 1, 2014

August 31, 2021

0.885%

800,000

September 1, 2014

August 31, 2021

0.885%

500,000

March 20, 2014

September 20, 2021

1.013%

4,000,000

September 30, 2014

September 30, 2021

0.893%

1,000,000

October 31, 2014

October 31, 2021

0.802%

3,000,000

SubtotalLong-term loans payable

500,000

23,000,000
March 12, 2014

March 12, 2023

1.358%March 20, 2014

March 20, 2022

1.199%¥

3,000,000

1,800,000

March 20, 2014

March 12, 2023

1.349%

2,000,000

July 31, 2014

July 31, 2022

1.014%

2,200,000

September 3, 2014

August 31, 2022

0.979%

1,000,000

September 3, 2014

August 31, 2022

0.979%

950,000

October 31, 2014

October 31, 2023

1.071%

2,000,000

October 31, 2014

October 31, 2023

1.126%

1,500,000

Classification
Long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

October 31, 2014

October 31, 2023

1.071%¥

1,000,000

October 31, 2014

October 31, 2024

1.257%

2,000,000

October 31, 2014

October 31, 2024

1.259%

1,000,000

January 30, 2015

January 31, 2025

1.161%

1,500,000

February 18, 2015

February 28, 2022

0.907%

1,250,000

February 18, 2015

February 28, 2022

0.907%

350,000

February 18, 2015

February 29, 2024

1.157%

1,700,000

February 18, 2015

February 28, 2025

1.314%

1,250,000

February 27, 2015

February 28, 2025

1.153%

2,100,000

March 12, 2015

February 28, 2025

1.218%

1,000,000

March 31, 2015

March 31, 2025

1.266%

2,500,000

April 30, 2015

April 30, 2022

0.825%

2,300,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

August 31, 2015

August 31, 2022

0.872%

500,000

September 30, 2015

September 30, 2024

1.065%

2,000,000

October 30, 2015

October 31, 2024

0.989%

1,000,000

October 30, 2015

October 30, 2025

1.114%

1,500,000

October 30, 2015

October 30, 2025

1.114%

2,000,000

October 30, 2015

October 30, 2025

1.114%

2,500,000

October 30, 2015

October 30, 2025

1.121%

2,500,000

November 12, 2015

November 30, 2025

1.173%

1,000,000

January 29, 2016

January 31, 2022

0.590%

2,500,000

January 29, 2016

January 31, 2022

0.640%

500,000

January 29, 2016

January 29, 2026

1.074%

2,000,000

January 29, 2016

January 29, 2026

1.024%

1,800,000

February 18, 2016

February 18, 2026

0.998%

1,000,000

February 18, 2016

February 18, 2026

0.998%

500,000

March 31, 2016

March 31, 2026

0.898%

1,000,000

April 28, 2016

April 30, 2024

0.654%

2,000,000

April 28, 2016

April 30, 2026

0.835%

2,000,000

April 28, 2016

April 30, 2026

0.865%

1,000,000

July 29, 2016

July 31, 2026

0.613%

1,500,000

August 2, 2016

July 31, 2026

0.544%

1,000,000

October 31, 2016

October 31, 2024

0.668%

1,000,000

October 31, 2016

October 31, 2026

0.876%

2,500,000

October 31, 2016

October 31, 2026

0.760%

1,000,000

October 31, 2016

October 31, 2026

0.734%

4,000,000
1,500,000

October 31, 2016

October 31, 2026

0.826%

December 12, 2016

November 30, 2026

0.982%

500,000

December 28, 2016

December 28, 2026

0.950%

1,500,000

January 16, 2017

January 31, 2027

0.860%

500,000

January 31, 2017

January 31, 2027

0.853%

700,000

March 28, 2017

March 31, 2027

0.850%

500,000

June 30, 2017

June 30, 2027

0.849%

1,500,000

August 10, 2017

July 28, 2027

0.800%

3,500,000

August 31, 2017

August 31, 2023

0.544%

1,000,000

September 21, 2017

March 31, 2024

0.555%

1,000,000

Kenedix Office Investment Corporation

31

Classification
Long-term loans payable

32
KENEDIX Office Investment Corporation

Weighted-average

Balanceinterest rate

(In thousands of yen)

Drawdown date

Last repayment date

September 21, 2017

September 30, 2025

0.680%

September 21, 2017

March 31, 2027

0.732%

September 21, 2017

September 21, 2027

0.873%

1,000,000

September 21, 2017

September 30, 2027

0.851%

2,500,000¥

1,500,000
1,000,000

October 31, 2017

October 31, 2027

0.810%

2,500,000

November 13, 2017

November 13, 2027

0.931%

3,000,000

December 7, 2017

November 30, 2027

0.899%

1,400,000

December 7, 2017

November 30, 2027

0.820%

1,200,000

December 7, 2017

November 30, 2027

0.969%

1,000,000

December 7, 2017

November 30, 2027

0.939%

1,000,000

December 7, 2017

November 30, 2027

0.869%

1,000,000

December 7, 2017

November 30, 2027

0.899%

800,000

December 7, 2017

November 30, 2027

0.869%

600,000

December 28, 2017

December 28, 2025

0.744%

500,000

December 28, 2017

December 28, 2026

0.878%

500,000

December 28, 2017

December 28, 2027

0.864%

500,000

March 12, 2018

March 31, 2028

0.914%

1,500,000

March 26, 2018

March 31, 2027

0.808%

1,000,000

March 26, 2018

March 31, 2028

0.902%

1,000,000

July 31, 2018

July 31, 2028

0.988%

500,000

August 20, 2018

August 31, 2025

0.696%

500,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

500,000

August 20, 2018

August 31, 2028

0.966%

500,000

August 31, 2018

August 31, 2025

0.700%

500,000

August 31, 2018

August 31, 2025

0.723%

300,000

August 31, 2018

August 31, 2028

1.012%

700,000

October 31, 2018

October 31, 2028

1.013%

1,500,000

October 31, 2018

October 31, 2028

0.910%

1,000,000

October 31, 2018

October 31, 2028

1.013%

500,000

March 28, 2019

March 31, 2029

0.838%

1,400,000

March 29, 2019

March 31, 2029

0.839%

2,950,000

June 14, 2019

June 30, 2023

0.246%

500,000

June 14, 2019

December 28, 2026

0.517%

500,000

June 14, 2019

April 30, 2027

0.605%

1,000,000

June 14, 2019

March 31, 2029

0.725%

1,000,000

July 10, 2019

July 31, 2023

0.230%

500,000

July 31, 2019

July 31, 2022

0.291%

1,000,000

July 31, 2019

July 31, 2023

0.295%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

September 30, 2019

September 30, 2026

0.489%

1,000,000

September 30, 2019

March 31, 2027

0.531%

900,000

September 30, 2019

March 31, 2027

0.425%

800,000

January 31, 2020

January 31, 2025

0.406%

700,000

January 31, 2020

January 31, 2027

0.526%

1,500,000

January 31, 2020

January 31, 2029

0.675%

1,500,000

March 12, 2020

February 28, 2026

0.361%

1,800,000

March 31, 2020

March 31, 2028

0.642%

1,000,000

June 30, 2020

June 30, 2028

0.646%

2,000,000

June 30, 2020

June 30, 2028

0.646%

2,000,000

June 30, 2020

June 30, 2028

0.646%

700,000

Classification
Long-term loans payable

Drawdown dateJune 30, 2020

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

June 30, 2028

0.510%¥

2,000,000

July 31, 2020

July 31, 2028

0.636%

2,700,000

August 31, 2020

August 31, 2030

0.705%

1,500,000

September 30, 2020

September 30, 2025

0.396%

1,000,000

September 30, 2020

September 30, 2027

0.511%

1,000,000

September 30, 2020

September 30, 2030

0.738%

700,000

October 30, 2020

April 30, 2027

0.542%

1,400,000

October 30, 2020

October 31, 2030

0.803%

1,500,000

October 30, 2020

October 31, 2030

0.803%

300,000

July 25, 2014

July 25, 2024

1.180%

April 28, 2016

April 28, 2028

0.900%

1,000,000

July 19, 2017

July 19, 2022

0.260%

1,000,000

July 19, 2017

July 16, 2027

0.640%

2,000,000

February 15, 2019

February 15, 2024

0.390%

2,000,000

January 30, 2020

January 30, 2025

0.250%

2,000,000

October 20, 2020

October 18, 2030

0.610%

1,000,000

Subtotal
Investment corporation bonds

155,250,000¥

2,000,000

Subtotal

11,000,000

Total

¥

201,750,000

8．
．REDUCTION ENTRY
The amount of reduction entry of property, plant and equipment acquired by government subsidy is as follows:
As of April 30, 2021
As of October 31, 2020
In thousands of yen
Buildings in trust¥

26,230¥26,2309. COMMITMENT LINE AGREEMENTThe Investment Corporation has concluded a commitment line agreement with bank of account, etc.
As of April 30, 2021

As of October 31, 2020

In thousands of yen
Maximum amount¥

6,000,000¥

6,000,000

Drawn credit facility¥

6,000,000¥

6,000,000–

Balance–

10. PER UNIT INFORMATION
From November 1, 2020
to April 30, 2021

From May 1, 2020
to October 31, 2020
Yen

Net asset value per unit¥

Net income per unit¥

Weighted-average number of units (units)

539,034¥

16,373¥

428,510538,295
17,059428,510

The weighted-average number of units outstanding of 428,510 as of April 30, 2021 and October 31, 2020, respectively, was used forthe computation of the amount of net income per unit. Net income per unit after adjusting for residual units is not included because
there were no residual investment units.

Kenedix Office Investment Corporation

33

11. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 31%. However, theInvestment Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements are
met under the Special Taxation Measures Law of Japan. Under this law, the Investment Corporation must meet a number of tax
requirements, including a requirement that it currently distribute in excess of 90% of its net income for the fiscal period in order tobe able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of
the Investment Corporation will be subject to regular corporate income taxes. The Investment Corporation distributed in excess of
90% of its distributable income in the form of cash distributions totaling ¥6,592 million for the fiscal periods ended April 30, 2021
and October 31, 2020, respectively. Therefore, such distributions were treated as deductible distributions for purposes of corporate
income taxes. The effective tax rate on the Investment Corporation’s income was 0.02% for the fiscal periods ended April 30, 2021
and October 31, 2020, respectively. The following table summarizes the significant differences between the statutory tax rate and theeffective tax rate.
From November 1, 2020
to April 30, 2021

From May 1, 2020
to October 31, 2020

Statutory tax rate

31.46%

31.46%

Deductible cash distributions(29.55)(28.37)

Provision of reserve for reduction entry(1.90)(3.09)

Others0.01

0.01

Effective tax rate

0.02%

0.02%

The significant components of deferred tax assets and liabilities as of April 30, 2021 and October 31, 2020 are as follows:
As of April 30, 2021

As of October 31, 2020

In thousands of yen
Deferred tax assets
Enterprise tax payable¥

Amortization of leasehold right

5,075

4,831

Deferred gains or losses on hedges

160,857

129,892

Subtotal

33

¥

24

165,966

134,748

Valuation allowance(165,932)(134,723)

Total deferred tax assets

¥

¥

33

24

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

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

34
KENEDIX Office Investment Corporation

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

14. BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATEDEXPENSES, AND GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY
Rent revenue – real estate, expenses related to rent business, and gain and loss on sale of real estate property for the fiscal
periods from November 1, 2020 to April 30, 2021 and from May 1, 2020 to October 31, 2020 consist of the following:
From November 1, 2020

From May 1, 2020

to April 30, 2021

to October 31, 2020

In thousands of yen
Rental and other operating revenues
Rent revenue – real estate
Rental revenues¥ 11,882,196¥ 12,051,161

1,626,678

1,705,904

13,508,875

13,757,065

Parking space rental revenues

495,509507,703

Utility charge reimbursement

895,090

1,085,419

Miscellaneous

220,136

232,969

Common area charges
Subtotal
Others:Subtotal
Total rental and other operating revenues

1,610,737

1,826,092¥ 15,119,613¥ 15,583,157

Property-related expenses
Expenses related to rent business
Property management fees and facility management fees

¥1,438,342¥ 1,436,668

Utilities

887,792

1,039,948

Taxes

1,302,176

1,316,730

Repairs and maintenance356,093441,103

Insurance

19,514

19,286

Trust fees

30,152

40,734

Others297,808

269,1732,548,829

2,523,136¥ 6,880,711¥ 7,086,783

Depreciation
Total expenses related to rent business
Gain and loss on sale of real estate properties
KDX Nihonbashi Honcho Building
Revenue from sale of investment properties－¥ 5,000,000

Cost of investment properties－

3,905,680

Other sales expenses－

Gain on sale of real estate properties¥¥

154,834－¥

939,484－¥ 1,550,000－

1,381,337

KDX Nihonbashi Edo-dori Building
Revenue from sale of investment properties¥

Cost of investment properties
Other sales expenses
Gain on sale of real estate properties

50,356－¥－¥

118,305

Kenedix Office Investment Corporation

35

KDX Shin-Nihonbashi Building
Revenue from sale of investment properties¥ 3,200,000

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

1,971,004－

100,571－¥ 1,128,423¥

Revenue from sale of investment properties¥ 935,000¥

Cost of investment properties

1,115,831－

KDX Hon-Atsugi Building

Other sales expenses

18,091

Loss on sale of real estate properties－－－¥ 198,923¥－

15. LEASESThe Investment Corporation, as lessor, has entered into leases whose fixed monthly rents are due in advance with lease terms ofgenerally two years for office buildings. The future minimum rental revenues under existing non-cancelable operating leases as ofApril 30, 2021 and October 31, 2020 are as follows:
As of April 30, 2021

As of October 31, 2020
In thousands of yen

Due within one year
Due after one year
Total

¥ 3,250,060¥ 3,168,087

7,850,178

8,183,583¥ 11,100,238¥ 11,351,671

16. FINANCIAL INSTRUMENTS
Thirty-second fiscal period (From November 1, 2020 to April 30, 2021)(A) Overview(1) Policy for financial instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily
through bank loans and the issuance of investment corporation bonds and new investment units. The Investment Corporation uses
derivatives for the purpose of hedging its exposure to changes in interest rates and does not enter into derivatives for speculative or
trading purposes. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety,
liquidity, interest-rate conditions and cash flows.
(2) Types of financial instruments and related risk
Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer
and risk of fluctuation of value of its property.
Loans payable and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties
and have a redemption date of a maximum of approximately 9 years and 7 months following the accounting date. Although a certain
portion of said liabilities are subject to interest-rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate
swap transactions) in order to reduce such risk.
Interest-rate swap transactions are used as derivative financial instruments. Utilizing interest-rate swap transactions, the Investment
Corporation fixes its interest expense for long-term loans payable bearing interest at a variable rate. With regard to hedge accounting
methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please
see Note 2(L) “Derivative Financial Instruments.”(3) Risk management for financial instruments(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap transactions in order to minimize risk arising from fluctuations in interest rates
on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer
with regard to investment securities.

36
KENEDIX Office Investment Corporation

(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled
due dates) associated with procurement of funds
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out
payment due dates and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly
checking the balance of cash reserves.

(4) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market priceavailable, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different
assumptions and factors could result in a different fair value. Moreover, the contract amounts, etc. of derivative transactions in “(B)
Estimated Fair Value of Financial Instruments” do not indicate the market risk of derivative transactions.
(B) Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet as of April 30, 2021 and estimated fair value are shown in the following
table. The following table does not include financial instruments for which it is extremely difficult to determine the fair value (Referto *2 below).
Carrying value
Estimated fair value
Difference
In thousands of yen(1) Cash and deposits(2) Cash and deposits in trust¥ 18,455,256¥ 18,455,256¥–

11,859,877

11,859,877–

30,315,133

30,315,133–

6,800,000

6,800,000

–

–

–

–

(3) Current portion of long-term loans payable

21,700,000

21,756,816

56,816(4) Investment corporation bonds

11,000,000

11,019,300

19,300(5) Long-term loans payable

159,250,000

160,294,270

1,044,270¥ 198,750,000¥ 199,870,386¥ 1,120,386(498,680)(498,680)–

Subtotal(1) Short-term loans payable(2) Current portion of investment corporation bonds

Subtotal
Derivative transactions(*)(*)The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing
the net liability position.
*1 Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivativetransactions
Assets(1) Cash and deposits and (2) Cash and deposits in trust
Since these items are settled in a short period of time, their carrying value approximates fair value.
Liabilities(1) Short-term loans payable
Since these items are settled in a short period of time, their carrying value approximates fair value.
(2) Current portion of investment corporation bonds and (4) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices. The fair value of those for which no market priceis available is based on the quoted price obtained from counterparty financial institutions, etc.
(3) Current portion of long-term loans payable and (5) Long-term loans payable
The fair value of long-term loans payable is based on the present value of the total of principal and interest discounted by the interest
rate to be applied if similar new loans were entered into. The fair value of long-term loans payable bearing interest at a variable rate,
which is subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps, is based on thepresent value of the total of principal and interest, which is handled together with the applicable interest-rate swaps, discounted by
the interest rate to be applied if similar loans were entered into.
Derivative Transactions
Please refer to Note 17 “DERIVATIVE TRANSACTIONS.”

Kenedix Office Investment Corporation37

*2 Financial instruments for which it is extremely difficult to determine the fair value
Carrying value (In thousands of yen)Classification
Investment securities¥

1,134,996

Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are notincluded in the preceding table.

*3 Redemption schedule for receivables
Due within 1 year or less
(In thousands of yen)
Cash and deposits¥

18,455,256

Cash and deposits in trust

11,859,877

Total

¥

30,315,133*4 Redemption schedule for loans payable and investment corporation bonds
Due within
1 year or lessDue after

Due after

1 year through2 years through2 years

3 years

Due after

Due after

Due after

3 years through 4 years through4 years

5 years

5 years

In thousands of yen
Short-term loans payable¥

6,800,000

Investment corporation

–

bonds
Long-term loans payable
Total

¥

28,500,000¥

1,000,000

21,700,000¥–

12,950,000¥

2,000,000

11,950,000¥–

15,200,000¥

4,000,000

13,200,000¥–

20,050,000

¥

–

–

16,050,000¥–

4,000,000

24,900,000¥

24,900,000

93,150,000¥

97,150,000

Thirty-first fiscal period (From May 1, 2020 to October 31, 2020)(A) Overview(1) Policy for financial instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily
through bank loans and the issuance of investment corporation bonds and new investment units. The Investment Corporation uses
derivatives for the purpose of hedging its exposure to changes in interest rates and does not enter into derivatives for speculative or
trading purposes. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety,
liquidity, interest-rate conditions and cash flows.
(2) Types of financial instruments and related risk
Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer
and risk of fluctuation of value of its property.
Loans payable and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties
and have a redemption date of a maximum of approximately 10 years following the accounting date. Although a certain portion ofsaid liabilities are subject to interest-rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate swap
transactions) in order to reduce such risk.
Interest-rate swap transactions are used as derivative financial instruments. Utilizing interest-rate swap transactions, the Investment
Corporation fixes its interest expense for long-term loans payable bearing interest at a variable rate. With regard to hedge accounting
methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please
see Note 2(L) “Derivative Financial Instruments.”(3) Risk management for financial instruments(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap transactions in order to minimize risk arising from fluctuations in interest rates
on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer
with regard to investment securities.

38
KENEDIX Office Investment Corporation

(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled
due dates) associated with procurement of funds
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out
payment due dates and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly
checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market priceavailable, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different
assumptions and factors could result in a different fair value. Moreover, the contract amounts, etc. of derivative transactions in “(B)
Estimated Fair Value of Financial Instruments” do not indicate the market risk of derivative transactions.
(B) Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet as of October 31, 2020 and estimated fair value are shown in thefollowing table. The following table does not include financial instruments for which it is extremely difficult to determine the fairvalue (Refer to *2 below).
Carrying value
Estimated fair value
Difference
In thousands of yen(1) Cash and deposits(2) Cash and deposits in trust
Subtotal(1) Short-term loans payable¥ 16,128,897¥ 16,128,897–

12,042,095

12,042,095–

28,170,992

28,170,992–

12,500,000

12,500,000–(2) Current portion of investment corporation bonds(3) Current portion of long-term loans payable

¥

–

–

–

23,000,000

23,057,531

57,531(4) Investment corporation bonds

11,000,000

11,011,000

11,000(5) Long-term loans payable

155,250,000

156,906,399

1,656,399¥ 201,750,000¥ 203,474,930¥ 1,724,930(391,228)(391,228)–

Subtotal
Derivative transactions(*)(*)The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing
the net liability position.
*1 Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivativetransactions
Assets(1) Cash and deposits and (2) Cash and deposits in trust
Since these items are settled in a short period of time, their carrying value approximates fair value.
Liabilities(1) Short-term loans payable
Since these items are settled in a short period of time, their carrying value approximates fair value.
(2) Current portion of investment corporation bonds and (4) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices. The fair value of those for which no market priceis available is based on the quoted price obtained from counterparty financial institutions, etc.
(3) Current portion of long-term loans payable and (5) Long-term loans payable
The fair value of long-term loans payable is based on the present value of the total of principal and interest discounted by the interest
rate to be applied if similar new loans were entered into. The fair value of long-term loans payable bearing interest at a variable rate,
which is subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps, is based on thepresent value of the total of principal and interest, which is handled together with the applicable interest-rate swaps, discounted by
the interest rate to be applied if similar loans were entered into.
Derivative Transactions
Please refer to Note 17 “DERIVATIVE TRANSACTIONS.”

Kenedix Office Investment Corporation39

*2 Financial instruments for which it is extremely difficult to determine the fair value
Carrying value (In thousands of yen)Classification
Investment securities¥

1,137,526

Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are notincluded in the preceding table.
*3 Redemption schedule for receivables
Due within 1 year or less
(In thousands of yen)
Cash and deposits¥

16,128,897

Cash and deposits in trust

12,042,095

Total

¥

28,170,992*4 Redemption schedule for loans payable and investment corporation bonds
Due within
1 year or lessDue after

Due after

1 year through2 years through2 years

3 years

Due after

Due after

Due after

3 years through 4 years through4 years

5 years

5 years

In thousands of yen
Short-term loans payable¥

12,500,000

Investment corporation

Total

¥

–

¥

–

¥

–

¥

–

¥

–

–

1,000,000–

4,000,000

2,000,000

4,000,000

23,000,000

18,050,000

11,300,000

11,700,000

21,350,000

92,850,000

bonds
Long-term loans payable¥

35,500,000¥

19,050,000¥

11,300,000¥

15,700,000¥

23,350,000¥

96,850,000

17. DERIVATIVE TRANSACTIONS
The following summarizes the contracted amount and the fair value of interest-rate swap contracts as of April 30, 2021:(1) Hedge accounting not applied
Not applicable(2) Hedge accounting applied
Hedge

Type ofaccounting

derivative

methodtransactions

Principle method Interest-rate

Contracted amount

Hedgeditems(In thousands of yen)
Maturing
after 1 year

Fair value(In thousandsof yen)Based on theLong-termswaps:

loans

Receive/floating

payableCalculation
method for
applicable fair value¥

69,850,000¥

69,850,000¥(498,680)

and pay/fixedamount provided bycounterparty
financial institutions

Special treatment Interest-rateLong-termof interest-rate

swaps:

loans

swaps

Receive/floating

payable55,950,000

37,250,000¥ 125,800,000¥ 107,100,000*

and pay/fixed
Total

¥

(498,680)(*)Interest-rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As aresult, their fair value is included in the fair value of the hedged long-term loans payable.

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KENEDIX Office Investment Corporation

The following summarizes the contracted amount and the fair value of interest-rate swap contracts as of October 31, 2020:(1) Hedge accounting not applied
Not applicable(2) Hedge accounting applied
Hedge

Type ofaccounting

derivative

methodtransactions

Principle method Interest-rate

Contracted amount

Hedgeditems(In thousands of yen)
Maturing
after 1 year

Fair value(In thousandsof yen)Based on theLong-termswaps:

loans

Receive/floating

payableCalculation
method for
applicable fair value¥

55,950,000¥

55,950,000¥(391,228)

and pay/fixedamount provided bycounterparty
financial institutions

Special treatment Interest-rateLong-termof interest-rate

swaps:

loans

swaps

Receive/floating

payable65,450,000

44,150,000¥ 121,400,000¥ 100,100,000*

and pay/fixed
Total

¥

(391,228)(*)Interest-rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As aresult, their fair value is included in the fair value of the hedged long-term loans payable.

18. INVESTMENT AND RENTAL PROPERTIES
Thirty-second fiscal period (From November 1, 2020 to April 30, 2021)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo metropolitan area for the purpose of generating
rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
Carrying value (In thousands of yen)
As of October 31, 2020

Net change

As of April 30, 2021

Fair value
As of April 30, 2021
(In thousands of yen)
¥ 517,402,000¥ 428,546,523¥ (4,208,574)¥ 424,337,948*1: The carrying value represents the acquisition cost less accumulated depreciation.
*2: Fair value at the end of the fiscal period is the appraisal value determined by outside appraisers.
*3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal
increase/decrease factors were the sales of two properties totaling ¥3,086,836 thousand and depreciation amounting to¥2,548,829 thousand.

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

Kenedix Office Investment Corporation

41

Thirty-first fiscal period (From May 1, 2020 to October 31, 2020)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo metropolitan area for the purpose of generating
rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
Carrying value (In thousands of yen)
As of April 30, 2020

Net change

As of October 31, 2020

Fair value

As of October 31, 2020
(In thousands of yen)
¥ 520,792,000¥ 418,669,303¥ 9,877,219¥ 428,546,523*1: The carrying value represents the acquisition cost less accumulated depreciation.
*2: Fair value at the end of the fiscal period is the appraisal value determined by outside appraisers. Fair value at the end of the fiscal
period under review of KDX Shin-Nihonbashi Building that was sold on November 2, 2020 is calculated based on the sale price(¥3,200,000 thousand) in the transaction agreement on June 26, 2020.
*3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal
increase/decrease factors were the acquisition of one property totaling ¥16,430,044 thousand, the sales of two properties totaling¥5,287,017 thousand and depreciation amounting to ¥2,523,136 thousand.
Income and loss in the fiscal period ended October 31, 2020 for real estate for rental purposes is listed in Note 14 “BREAKDOWNOF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, AND GAIN AND LOSS ON SALE
OF REAL ESTATE PROPERTY.”

19. SEGMENT AND RELATED INFORMATION
Thirty-second fiscal period (From November 1, 2020 to April 30, 2021)(A) Segment Information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportablesegment subject to disclosure.
(B) Related Information(1)

Information about each product and service

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

Information about each geographic area(a)

Net sales

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

Property, plant and equipment

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

Information about each major customer

Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenues on thestatement of income and retained earnings.
Thirty-first fiscal period (From May 1, 2020 to October 31, 2020)(A) Segment Information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportablesegment subject to disclosure.
(B) Related Information(1)

Information about each product and service

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

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KENEDIX Office Investment Corporation

(2)Information about each geographic area(a)

Net sales

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

Property, plant and equipment

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

Information about each major customer

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

20. SIGNIFICANT SUBSEQUENT EVENTS
Not applicable

Kenedix Office Investment Corporation

43

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

Thirty-first fiscal period(From May 1, 2020 to October 31, 2020)

(Yen)

(Yen)

I. Retained earnings at the end of period¥ 7,016,251,384¥ 7,310,459,769

II. Total distributions¥ 6,592,197,840¥ 6,592,197,840

Distributions per unit

¥ 15,384¥ 15,384

Provision of reserve for reduction entry¥423,945,058¥718,261,929

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

In accordance with the policy stipulated in Article
35 (1) of its Articles of Incorporation, theInvestment Corporation determines that theamount of distribution shall exceed the amountequivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Act on Special
Measures Concerning Taxation, and shall be up to
the amount of its profits as the ceiling. Following
this policy, the Investment Corporation has
decided that, of the amount remaining after theprovision of reserve for reduction entry as
stipulated in Article 66-2 of the Act on Special
Measures Concerning Taxation is deducted fromunappropriated retained earnings, it shall
distribute part of the outstanding ¥6,592,197,840
as profit distribution.
In addition, the Investment Corporation decided
not to distribute cash in excess of distributableprofit, stipulated in Article 35 (2) of its Articles ofIncorporation.

In accordance with the policy stipulated in Article
35 (1) of its Articles of Incorporation, theInvestment Corporation determines that theamount of distribution shall exceed the amountequivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Act on Special
Measures Concerning Taxation, and shall be up to
the amount of its profits as the ceiling. Following
this policy, the Investment Corporation has
decided that, of the amount remaining after theprovision of reserve for reduction entry as
stipulated in Article 66-2 of the Act on Special
Measures Concerning Taxation is deducted fromunappropriated retained earnings, it shall
distribute the outstanding ¥6,592,197,840 as
profit distribution.
In addition, the Investment Corporation decided
not to distribute cash in excess of distributableprofit, stipulated in Article 35 (2) of its Articles ofIncorporation.

III. Voluntary reserve (provision)

Method of calculating distribution
amount

KENEDIX Office Investment Corporation

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Kenedix Office Investment Corporation45

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