KENEDIX REALTY INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2011 (REIT)(May 1, 2011 to October 31, 2011)

December 19, 2011

Kenedix Realty Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
Representative:

Taisuke Miyajima, Executive Director

Asset Management Company: Kenedix REIT Management, Inc.
Representative:

Taisuke Miyajima, CEO and President

Inquiries:

Masahiko Tajima, Director / General Manager, Financial Planning Division
TEL +81-3-3519-3491

Planned submission of semiannual securities report: January 30, 2012
Planned start of distribution payments:

January 20, 2012

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2011 (THIRTEENTH FISCAL PERIOD)(1) Business Results(Amounts are rounded down to the nearest ¥million)

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

For the six months ended
October 31, 2011

9,044

(11.2%)

4,425(19.3%)

3,040(29.6%)

3,052(32.2%)

April 30, 2011

8,136(-2.7%)

3,709(-3.3%)

2,346(-10.0%)2,309(-11.4%)Net Income

Return on Unitholders’ Equity

per Unit (Yen)

Ordinary Income to

Ordinary Income toTotal Assets

Operating Revenues

For the six months ended
October 31, 2011

11,592

2.1%

1.1%

33.6%

April 30, 2011

9,890

1.7%

0.9%

28.8%

（Total distributions is rounded down to the nearest ¥million.）(2) Distribution
Distributions per Unit
Excluding Excess of

Total Distribution(Millions of Yen)

Earnings (Yen)Distributions in

Total Distributions in

Excess of Earnings

Excess of Earnings

per Unit (Yen)(Millions of Yen)Distribution Ratio
Payout Ratio

to Unitholders’EquityFor the six months ended
October 31, 2011

9,596

2,749

0

-

82.8%

1.7%

April 30, 2011

9,891

2,310

0

-

100.0%

1.7%

Note 1: The payout ratio is a figure obtained by dividing distribution per unit by net income per unit, and is rounded to the first decimal place.
Note 2: Distribution per unit is calculated by dividing the amount remaining after deducting the provision of reserve for reduction entry (¥303 million) from unappropriated retained
earnings by the number of investment units issued and outstanding.
（Total assets and unitholders’ equity are rounded down to the nearest ¥million.）(3) Financial Position
Total Assets

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Share(Millions of Yen)

(Millions of Yen)

to Total Assetsof Common Stock (Yen)For the six months ended
October 31, 2011

274,973150,27254.6%

524,419

April 30, 2011

261,928

135,505

51.7%

580,199

This is an English-language translation of the original Japanese announcement on our Web site released on December 19, 2011. However,no assurance or warranties are given with respect to the 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 REALTY INVESTMENT CORPORATION (8972)（Amounts are rounded down to the nearest ¥million.）(4) Cash Flow Position
Cash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents

Operating Activities

Investing Activities

Financing Activities

at Period End(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

For the six months ended
October 31, 2011

9,434

-14,138

9,812

17,928

April 30, 2011

3,546

-13,701

7,607

12,8202．FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING APRIL 30, 2012 (November 1, 2011 to April 30, 2012)
Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)Distribution perDistribution in

Unit Excluding

Excess ofExcess ofEarnings per Unit

Earnings (Yen)

(Yen)

9,300

0

For the six months
endingApril 30, 2012

9,033(-0.1%)

4,098(-7.4%)

2,525(-16.9%)2,524 (-17.3%)(Reference) Estimated net income per unit for the fiscal period ending April 30, 2012: ¥8,809
Forecasted number of investment units issued and outstanding as of April 30, 2012: 286,550 units(Note)
Distribution per unit is calculated under the assumption that net profit after the addition of projected reversal of reserve for reduction entry of ¥143 million will be
distributed

3．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) Change 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 October 31, 2011: 286,550 units
As of April 30, 2011: 233,550 units(b) Number of treasury units at period end
As of October 31, 2010: 0 units
As of April 30, 2010: 0 units
Note: Please refer to page 37 “Notes to the Information per Unit” for the calculation of net income per unit.

*Explanation on the appropriate use of the forecast of results and other matters of special consideration
The forecast of results for the fourteenth fiscal period ending April 30, 2012 are calculated as of December 19, 2011 based on theassumptions presented on page 15 “Preconditions and Assumptions for the Fiscal Period Ending April 30, 2012.” Readers areadvised that actual operating revenues, operating income, ordinary income, net income and distribution per unit may differ
significantly from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of theforecast distribution per unit.

This notice is an English-language translation of the original Japanese announcement on our Web site released on December 19, 2011.
However, no assurance or warranties are given with respect to the 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 REALTY INVESTMENT CORPORATION (8972)

1.

Basic Structure — Overview of Companies Related to the Investment Corporation
There were partial changes to the “Structure of the Investment Corporation” from the most recent securities report (submitted on July29, 2011). As described below, Sumitomo Mitsui Banking Corporation newly joined as Administrative Agent for Investment
Corporation Bonds as of the end of the fiscal period under review (October 31, 2011).

Furthermore, the Administrative Agent for Accounting Business was changed from Mizuho Trust & Banking Co., Ltd. to Mitsubishi
UFJ Trust and Banking Corporation on November 1, 2011.
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 July 29, 2011), and accordingly this information has been omitted from this document.
(2) Operating Conditions(1) Operating Conditions for the Thirteenth Fiscal Period (fiscal period ended October 31, 2011)
A. The Investment Corporation
The Investment Corporation was established on May 6, 2005 in accordance with the Investment Trust and Investment Corporation Law(“the Investment Trust Law”). On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of-3-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

the Tokyo Stock Exchange with a total of 75,400 investment units issued and outstanding (Securities Code: 8972). Subsequently, theInvestment Corporation raised funds through public offerings including three global offerings. Most recently, the Investment Corporation
additionally issued 51,400 investment units on July 20, 2011 through public offerings including global offerings, and 1,600 investment
units on August 8, 2011 by way of third-party allotment. As a result, as of October 31, 2011, the end of the thirteenth fiscal period, thenumber of investment units issued and outstanding totaled 286,550 units.
The Investment Corporation appointed Kenedix REIT Management, Inc. as its asset management company. In collaboration with theAsset 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 seeks
to respond to its environment and market trends, and endeavors to ensure a timely response to opportunities. The Investment Corporation
endeavors to develop a diversified investment portfolio that it calls, “KENEDIX Selection,” adopting a three-point investment
methodology based on property type, area and size.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review (fiscal period ended October 31, 2011), the Japanese economy remained in a difficult situation due
to the impact of the Great East Japan Earthquake. Although recovery is continuing within a backdrop of reconstructed supply chains andvarious policy effects, the pace is becoming more moderate.
Concerning real estate market conditions, land prices continued to fall for the year from July 2010 throughout Japan but the rate ofdecrease slowed and there was an increase in the number of survey sites where the price rose or remained flat, according to thePrefectural Land Price Survey as of July 1, 2011 announced by the Ministry of Land, Infrastructure, Transport and Tourism. The
average annual change in land prices throughout Japan for the year from July 2010 decreased by 4.0% for commercial land anddecreased by 3.2% for residential land. In the Tokyo area, the average land prices decreased by 2.3% for commercial land and decreasedby 1.9% for residential land. In the three major metropolitan areas, the figures decreased by 2.2% for commercial land and decreased by
1.7% for residential land. In each case, the rate of decrease was smaller than in the previous survey.
Concerning the office building leasing market conditions, the office vacancy rate in the five central wards of Tokyo announced by Miki
Shoji Co., Ltd. decreased for the sixth consecutive month after reaching a record high of 9.19% in March 2011. Although the figure rose
by 0.14 % month-on-month to 8.78% in October, the vacancy rate in central Tokyo has generally been showing the sense of hitting thepeak. On the other hand, new rentals has continued to remain weak in the market.
In the office building transaction market, the number of transactions temporarily decreased due to the impact of the Great East Japan
Earthquake. However, there have been signs of gradual vitalization in property transactions, primarily by listed real estate investment
corporations (J-REITs), within a backdrop of Japan’s post-earthquake economic activity beginning to normalize and the debt
procurement environment recovering.
(b) Management Performance
As of the end of the twelfth fiscal period (fiscal period ended April 30, 2011), the Investment Corporation owned 71 properties with a
total acquisition price of ¥246,456 million. During the fiscal period under review (fiscal period ended October 31, 2011), the Investment
Corporation acquired 4 office buildings (total acquisition price of ¥14,270 million) and sold 1 office building (initial acquisition price of¥5,180 million) located in the Tokyo Metropolitan Area (sales price: ¥5,800 million).
<4 Office Buildings Acquired During the Thirteenth Fiscal Period>
Property
Acquisition Price
Property Name (Note)
Location
Acquisition Date
No.
(Millions of Yen)
A-71
KDX Iidabashi Building
Shinjuku ward, Tokyo
4,670
July 22, 2011
A-72
KDX Higashi-Shinagawa Building
Shinagawa ward, Tokyo
4,590
July 22, 2011
A-73
KDX Hakozaki Building
Chuo ward, Tokyo
2,710
July 22, 2011
A-74
KDX Shin-Nihonbashi Building
Chuo ward, Tokyo
2,300
July 22, 2011
Note: As of October 31, 2011, the Investment Corporation changed the names of the abovementioned buildings. The former names of the buildings were“Kyodo Building (Iidabashi)” for “KDX Iidabashi Building,” “P’s Higashi-Shinagawa Building” for “KDX Higashi-Shinagawa Building,”
Nihonbashi Dai-2 Building” for “KDX Hakozaki Building,” and “Kyodo Building (Shin-Nihonbashi)” for “KDX Shin-Nihonbashi Building.”

As a result, the number of properties owned as of October 31, 2011 amounts to 74, with a total acquisition price of ¥255,546 million.
Looking at the portfolio as a whole, 91.4% was comprised of office buildings, 4.8% of central urban retail properties and 3.6% ofresidential properties on an acquisition price basis. The occupancy ratio as of the end of the thirteenth fiscal period was 94.7% reflecting
stable investment and asset management.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)＜Changes in Asset Size since Ninth Fiscal Period＞
Ninth Fiscal Period
Tenth Fiscal Period
Eleventh Fiscal Period
Twelfth Fiscal Period Thirteenth Fiscal Period(as of October 31, 2009)(as of April 30, 2010)(as of October 31, 2010) (as of April 30, 2011) (as of October 31, 2011)
Total
Total
Total
Total
Total
Ratio
Ratio
Ratio
Ratio
Ratio
Acquisition Price
Acquisition Price
Acquisition Price
Acquisition Price
Acquisition Price
(%)
(%)
(%)
(%)
(%)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
Type of Use
Area

Office Buildings
Central Urban
Retail Properties

197,46189.6

213,07190.3

211,461

90.6

224,636 91.1

233,726

91.4

12,3795.6

12,3795.2

12,3795.3

12,3795.0

12,379

4.8

Residential Properties

10,3194.6

10,319

4.3

9,441

4.0

9,441

3.8

9,441

3.6

Total
Tokyo Metropolitan
Area
Other Regional Areas

220,159

100.0

235,769100.0

233,281 100.0

246,456 100.0

255,546 100.0

186,14484.5

201,75485.5

199,26685.4

207,566 84.2

216,656

84.7

34,01515.4

34,015

14.4

34,01514.5

38,890 15.7

38,890

15.2

Total

220,159

100.0

235,769100.0

233,281 100.0

246,456 100.0

255,546 100.0

Notes:
1. Total acquisition price is the total of acquisition price for each property classified by type and area.
2. Total acquisition price is rounded down to the nearest million yen. Percentages are rounded down to the nearest first decimal place.

Property Acquisitions in the Tenth Fiscal Period (fiscal period ended April 30, 2010) Onwards
The Investment Corporation has built a strong asset base (portfolio) that is focused on office buildings in the Tokyo Metropolitan
Area with 74 properties amounting to ¥255,546 million in total acquisition price and an occupancy ratio of 94.7% as of the end of
the fiscal period under review (fiscal period ended October 31, 2011).
The Investment Corporation acquired four office buildings in November and December 2009 (Koishikawa TG Building,
Gotanda TG Building, KDX Nihonbashi 216 Building and KDX Shin-Yokohama 381 Building Annex Tower) with funds
procured by fund raising through public offerings, ahead of a full-on recovery of the real estate transaction market. In addition, one
office building (KDX Shinjuku Building) was acquired in February 2010 with funds procured through new borrowings, and four
properties (KDX Ginza 1chome Building, KDX Nihonbashi Honcho Building, KDX Kobayashi-Doshomachi Building and
Kitananajo SIA Building) were acquired in March 2011 with funds procured through new borrowings and cash on hand. Throughacquiring these nine properties (total acquisition price of ¥28,785 million), the Investment Corporation increasingly enhanced its
presence in the mid-sized office building transaction market. Moreover, the Investment Corporation also secured funds for new
acquisitions by selling KDX Shinjuku-Gyoen Building and Court Shin-Okachimachi (total sales price: ¥2,500 million) in theeleventh fiscal period (fiscal period ended October 31, 2010).
During the fiscal period under review, the Investment Corporation acquired a total of four properties (total acquisition price of¥14,270 million) comprising KDX Iidabashi Building, KDX Higashi-Shinagawa Building, KDX Hakozaki Building and KDX
Shin-Nihonbashi Building on July 22, 2011, with funds procured by raising funds through public offerings and other means. In
addition, the Investment Corporation sold KDX Hirakawacho Building (sales price: ¥5,800 million) as of June 30, 2011.
As an investment corporation with an asset base (portfolio) focused on mid-sized office buildings, the Investment Corporation
pursues consistent external growth by leveraging the know-how on operating mid-sized office buildings accumulated by the AssetManagement Company.
Operation and Management of Existing Properties
The Investment Corporation has appointed the Asset Management Company as its property management company for its entire
portfolio. In establishing a single point of contact for all matters relating to property management activities, the Investment
Corporation strives to secure consistent policies, specifications and procedures along with ensuring swift service with a highdegree of quality. As of October 31, 2011, the investment portfolio is being managed generally at a high occupancy ratio and theoccupancy ratio for the portfolio as of the end of the fiscal period under review was 94.7%. The Investment Corporation issatisfied with the quality of property management.
Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for our office buildings was 714 as of the end of the fiscal period under review (fiscal period ended
October 31, 2011). Floor area leased to the largest end-tenant as a proportion of total leased floor area of the total portfolio was at
1.8% and 4.8% for the top 3 office building tenants. This illustrates our diversification of tenants. Furthermore, tenants of officebuildings are in various sectors. As a result, we believe the impact by a certain end-tenant vacating the property or sluggish
performance in certain sectors would have a relatively limited effect.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Leasing Management in View of the Leasing Market Environment
The Investment Corporation believes that the mid-sized office building market tends to be less volatile in a weakening leasing
environment. This is because the market has a broad base of potential tenants as well as tenants with a variety of lease needs. We
believe that the mid-sized office buildings market in the Tokyo Metropolitan Area, which is a primary investment focus area for
the Investment Corporation, is the largest market in terms of demand due to the economic scale of the Tokyo Metropolitan Area
and due to the many middle-market and small- and medium-sized enterprises that are candidates for tenancy.
Since listing in 2005, the Investment Corporation had conducted negotiations to increase rent while maintaining favorable
relationships with tenants in cases where market rent greatly exceeded contracted rent. These activities to match contracted rents
with the market rents contributed to increases in rental revenue.
Meanwhile, in view of the sudden deterioration of the economy since autumn 2008 and the accompanying trends in the leasing
market, the Investment Corporation shifted to a management policy of placing priority on maintaining occupancy ratios innegotiating rents for the eighth fiscal period (fiscal period ended April 30, 2009) and after. Since that time, operations have been
conducted with an aim to secure revenues and profits over the medium to long term while considering the market trends.
One reason why it was able to swiftly modify policies was because the Investment Corporation entrusts all its property
management duties to the Asset Management Company, and that it has an established structure that enables it to take into accountfuture trends of the leasing market in advance and swiftly respond to market changes.
Change in Occupancy Ratio
The average occupancy ratio of office buildings that the Investment Corporation owns in the Tokyo Metropolitan Area wasmaintained at over 95% at the end of the seventh fiscal period (fiscal period ended October 31, 2008) up to the end of the tenthfiscal period (fiscal period ended April 30, 2010) through a flexible leasing policy responding promptly to the market trends
mentioned above. The fiscal period under review (fiscal period ended October 31, 2011) continued with a difficult leasing
environment and was affected by such factors as extended periods of vacancy. Nevertheless, the occupancy ratio of theInvestment Corporations’s office buildings in the Tokyo Metropolitan Area maintained to the 95% level and the occupancy ratio
of office buildings overall rose to 94.3%, an increase of 0.1% compared to the end of the previous fiscal period. Furthermore, theoccupancy ratio was 100% for 43 out of 68 office buildings that the Investment Corporation owns.
*As of April 27, 2011, the Investment Corporation received a notice of cancellation with regard to the intended termination of alease agreement from a major end-tenant at KDX Harumi Building. The termination will affect the property’s occupancy ratio asof 1) the end of November 2011 (2,584.56 m2 for the termination dated October 31, 2011) and 2) the end of December 2011
(1,723.04 m2 for the termination dated November 30, 2011), respectively. Furthermore, the ratio of these areas to the portfolio
total leased floor area is 0.9% for 1) and 0.6% for 2).
<Changes in Occupancy Ratio (Note) for Total Office Buildings, Tokyo Metropolitan Area, Other Regional Areas and Portfolio>
Office Buildings
Total

Tokyo Metropolitan Area

Ninth Fiscal Period
94.4％
97.3％
(As of October 31, 2009)
Tenth Fiscal Period
94.0％
95.7％
(As of April 30, 2010)
Eleventh Fiscal Period
93.3％
94.6％
(As of October 31, 2010)
Twelfth Fiscal Period
94.2％
95.5％
(As of April 30, 2011)
Thirteenth Fiscal Period
94.3％
95.7％
(As of October 31, 2011)
Note: Occupancy ratios are rounded to the nearest first decimal place.

Other Regional Areas

Portfolio

85.9％

94.7％

88.2％

94.4％

89.0％

93.6％

90.4％

94.6％

90.2％

94.7％

Conservation of Electricity for Summer 2011
The Investment Corporation implemented measures to reduce (peak) use of electricity by 15% at properties it owns in the service
areas of The Tokyo Electric Power Company and Tohoku Electric Power Co., Inc. With the cooperation of the respective tenantsin their exclusive areas as well as electricity conservation measures in common areas, among other matters, the Investment
Corporation achieved conservation of electricity of approximately 30% at the 13 properties that were classified as large users andapproximately 23% at the properties categorized as small users. Both surpassing the 15% requirement, no property classified aslarge users failed to satisfy the restrictions on use of electricity pursuant to Article 27 of the Electricity Business Act.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

C. Capital Acquisition(a) Fund Raising through Public Offering
The Investment Corporation additionally issued 51,400 investment units through public offerings, including global offerings, as well as
1,600 investment units by way of third-party allotment, with an aim to procure funds for acquiring new properties and repaying
borrowings, and procured ¥13,600 million on July 20, 2011 and ¥423 million on August 8, 2011, respectively. The funds procured on
July 20, 2011 were allocated to fund part of the property acquisitions and to prepay part of the ¥2,000 million in short-term borrowings,
on July 22, 2011. Furthermore, the funds procured on August 8, 2011 were used to repay long-term borrowings as agreed upon by
November 30, 2011.
(b) Investment Corporation Bonds
The Investment Corporation issued the Third Series Unsecured Investment Corporation Bonds (totaling ¥1,500 million and maturing in
two years) on September 15, 2011, and used the procured funds to prepay ¥1,000 million in long-term borrowings. As a result, theoutstanding investment corporation bonds as of the end of the fiscal period under review (fiscal period ended October 31, 2011) totaled¥13,500 million.
(c) Status of Borrowings
During the fiscal period under review (fiscal period ended October 31, 2011), the Investment Corporation undertook borrowings of¥20,000 million (¥14,000 million in long-term borrowings and ¥6,000 million in short-term borrowings (Note 1)) to repay borrowings thatmatured during the fiscal period. In addition, the Investment Corporation prepaid ¥2,000 million in short-term borrowings using funds
procured by raising funds through public offering, etc. ,and prepaid ¥1,000 milling in long-term borrowings by issuing investment
corporation bonds. Details are provided as follows:
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 thedrawdown date is not a business day and for which the repayment date has been moved to the following business day are included in
short-term borrowings.
Long-term borrowings 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.

<Borrowings during the Thirteenth Fiscal Period>

Series 59

Borrowing Amount(Millions of Yen)
1,000

Drawdown
Date
July 13, 2011

Series 60-A

1,500

July 29, 2011

July 31, 2012

July 29, 2011

July 31, 2014

LenderClassification

Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation
The Chuo Mitsui Trust and Banking Co., Ltd.

Last Repayment Date
July 14, 2014

2,200
Series 60-B

Resona Bank, Ltd.

1,000
300

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Series 61

1,500

August 31, 2011

February 27, 2015

The Chuo Mitsui Trust and Banking Co., Ltd.

Series 62

1,000

September 1, 2011

August 29, 2014

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Series 63-A

1,000

September 30, 2011

September 30, 2013

The Chuo Mitsui Trust and Banking Co., Ltd.

Series 63-B

2,500

September 30, 2011

March 31, 2014

The Mizuho Trust and Banking Co., Limited

Series 63-C

1,000

September 30, 2011

September 30, 2014

Sumitomo Mitsui Banking Corporation

Series 63-D

2,500

September 30, 2011

March 31, 2015

October 31, 2011

October 31, 2012--

Aozora Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Total

Series 64

3,500
1,000
20,000-

As of the end of the twelfth fiscal period (fiscal period ended April 30, 2011), the balance of borrowings amounted to ¥100,715.5
million (¥92,015.5 million in long-term borrowings and ¥8,700 million in short-term borrowings). As a result, the balance ofinterest-bearing debt amounted to ¥110,914 million as of October 31, 2011, comprising ¥97,414 million in borrowings (¥87,214
million in long-term borrowings and ¥10,200 million in short-term borrowings) and ¥13,500 million in investment corporation
bonds.
As of October 31, 2011, ¥6,500 million out of ¥15,500 million of long-term borrowings, which have floating interest rates, havebeen hedged and fixed by utilizing interest-rate swap agreements. In addition, the long-term debt ratio (Note 2) was 90.8% andthe long-term fixed interest debt ratio (Note 3) was 82.7%.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Note 2: Long-term debt ratio＝（Balance of long-term borrowings＋Balance of investment corporation bonds）÷（Total borrowings＋Balanceof investment corporation bonds）Long-term debt ratio is rounded to the nearest first decimal place.
Note 3: 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）The balance of long-term fixed interest rate borrowings includes
borrowings with floating interest rates effectively fixed by utilizing interest-rate swap agreements. Long-term fixed interest debt ratio isrounded to the nearest first decimal place.

The balance of borrowings according to financial institution as of April 30, 2011and October 31, 2011 are as follows:
LenderTwelfth Fiscal Period(as of April 30, 2011)

Thirteenth Fiscal Period(as of October 31, 2011)(Millions of Yen)

(Millions of Yen)

Ratio as of End of
Thirteenth Fiscal Period(%) (Note 4)

Sumitomo Mitsui Banking Corporation

23,135.5

22,434.0

23.0

Development Bank of Japan Inc.

16,492.5

16,430.0

16.9

The Chuo Mitsui Trust and Banking Co., Ltd.

16,325.0

15,800.0

16.2

Aozora Bank, Ltd.

14,462.5

13,950.0

14.3

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

11,800.0

11,300.0

11.6

Mitsubishi UFJ Trust and Banking Corporation

9,200.0

7,200.0

7.4

Resona Bank, Ltd.

5,300.0

5,300.0

5.4

The Norinchukin Bank

4,000.0

4,000.0

4.1-

1,000.0

1.0

100,715.5

97,414.0

100.0Mizuho Trust & Banking Co., Ltd.
Total

Note 4: Percentages are rounded down to the nearest first decimal place.

(b) Overview of Posted Collateral
On July 20, 2011, the collateral pledges established for the Investment Corporations’ 47 properties as of the end of the twelfth
fiscal period (April 30, 2011) were released. As a result, all borrowings of the Investment Corporation became unsecured andunguaranteed(e) Diversification of Debt Maturities
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates and extending
borrowing periods for its interest-bearing debt. In addition, the total balance of interest-bearing debt as of the end of the thirteenthfiscal period (fiscal period ended October 31, 2011) maturing in each fiscal period is as follows:
Balance of Interest-Bearing Debt Maturing in Each Fiscal Period of the Investment Corporation (Note)

Note: Amounts are rounded to the nearest second decimal place.

(f) Status of Credit Rating
The status of the credit ratings as of October 31, 2011 is as follows:
Credit Rating Agency
Details of the Ratings
Rating of Long-Term Senior Debts
Ratings on Bonds
Japan Credit Rating Agency, Ltd.
Rating of Shelf Registration
Outlook-8-

A
StableKENEDIX REALTY INVESTMENT CORPORATION (8972)(g) Status of Shelf Registration
The Investment Corporation filed a debt shelf registration statement on February 4, 2011. Details are as follows:

Planned Issue Amount
Planned Issuance Period
Use of Funds

Investment Corporation Bond
¥100,000,000,000
February 15, 2011 to February 14, 2013
Acquisition funds for specified assets, repayment of borrowings, repayment ofinvestment corporation bonds, refund of lease and guarantee deposits, funds to pay for repairs andmaintenance, working capital, etc.

The Investment Corporation’s First Series Unsecured Investment Corporation Bonds of ¥9,000,000,000 and Second Series
Unsecured Investment Corporation Bonds of ¥3,000,000,000 were issued in March 2007 based on the debt shelf registration
statement filed in February 2007. In addition, the Investment Corporation’s Third Series Unsecured Investment Corporation
Bonds of ¥1,500,000,000 were issued in September 2011 based on the debt shelf registration statement filed in February 2011.
On February 4, 2011, the Investment Corporation filed an equity shelf registration statement again to continue to secure
opportunity for flexible equity financing. Details are as follows:

Planned Issue Amount
Planned Issuance Period

Use of Funds

Investment Unit Certificate
Primary Offering¥100,000,000,000
February 15, 2011 to
February 14, 2013
Acquisition funds for specified assets, repayment ofborrowings, repayment of investment corporation
bonds, refund of lease and guarantee deposits, funds topay for repairs and maintenance, working capital, etc.

Secondary Offering¥15,000,000,000
February 15, 2011 to
February 14, 2013
Not applicable

There has not yet been any primary offering or secondary offering based on the abovementioned investment unit certificate shelfregistration.
D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥9,044
million, operating income of ¥4,425 million, ordinary income of ¥3,040 million and net income of ¥3,052 million for its thirteenthfiscal period (fiscal period ended October 31, 2011).
Concerning cash distributions, the Investment Corporation has decided to book a portion of its unappropriated retained earnings tointernal 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). Following theestablishment of this reduction entry reserve, which is maintained at a level stipulated in Article 66-2 of the Special Taxation
Measures Law, the Investment Corporation deducted ¥303 million from net income to be set aside as a reduction reserve, theestablishment of which falls within the scope in application of Article 67-15 of the Special Taxation Measures Law. Subsequently,
almost all the remaining net income was distributed to unitholders, yielding ¥9,596 per unit.

-9-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Outlook
A. Investment Environment
According to the Bank of Japan, the outlook for the time being is that Japan's economy will face adverse effects from the slowdown inoverseas economies and the appreciation of the yen as well as from the flooding in Thailand. Subsequently, the economy is expected toreturn to a moderate recovery path as the pace of recovery in overseas economies picks up, led by emerging and commodity-exporting
economies, and reconstruction-related demand after the earthquake disaster gradually materializes. Meanwhile, the Bank of Japan warns
that careful attention should continue to be paid to how Japan's economy will be affected by the uncertainty regarding financial andeconomic developments overseas, including the sovereign debt problem in Europe.
Concerning the real estate market conditions, according to the “Trend Report of the Prices of Intensively Used Land in Major Cities”(survey period: July 1, 2011 to October 1, 2011) announced by the Ministry of Land, Infrastructure, Transport and Tourism on
November 22, 2011, land prices rose in 11 districts (in contrast to 7 districts in the previous survey), remained unchanged in 61 districts(same, 53 districts) and fell in 78 districts (same, 86 districts) among the heavily populated districts (150 commercial and residential
districts) of major cities in Japan. Although the districts in which prices fell continued to hold a majority at 52% of all districts, thenumber of districts in which prices rose or remained unchanged increased from 41% in the previous survey to 48%.
In the office building leasing market, downward adjustment of rents is anticipated to linger, although the rate of decrease is contracting
and some office buildings have started to show signs of a reversal. As for vacancy rates, no abrupt improvement can be expected due tothe impact of the office spaces to be supplied in fiscal 2012. However, it is anticipated that vacant spaces will be gradually filled as
demand for office space recovers due to reconstruction-related demand after the earthquake and other factors.
In the real estate transaction market, property transactions have resumed recently, primarily by J-REITs, given the expectations of amacro economic recovery accompanying future reconstruction and the debt procurement environment continuing to stay robust. As such,
the Investment Corporations believes that the number of office building transactions will increase over time.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting dynamic and flexible investment that accurately reflects the trends
and ensures a timely response, and developing a diversified investment portfolio focused on a three-point investment methodology basedon property type, area and size. From this standpoint and in light of the investment environment described above (the Japanese economy,
land price trends, leasing market for office buildings, real estate transaction market, etc.), the Investment Corporation creates a property
investment strategy, existing property management strategy, and financial strategy in a dynamic and flexible manner as set forth below.
(a) New Property Investment Strategy 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 believes that keeping
office buildings in the Tokyo Metropolitan Area, as its focus while maintaining an investment strategy which aims for a certain degree ofregional diversification, will be a foundation for constructing a superior portfolio and differentiating the Investment Corporation fromothers in the business.
The Investment Corporation believes that it holds a competitive advantage over other real estate acquiring firms as it has laid afoundation for renewed external growth ahead of many other real estate firms since November 2009, has resumed property acquisitions
through public offerings and new borrowings, holds a portfolio surpassing ¥250 billion, and has a track-record in investing in andmanaging mid-sized office buildings and financial stability.
Moreover, in acquiring properties, the Investment Corporation is striving to diversify investment methods also taking into consideration
the balance of financing sources, such as fund-type investments through investments in silent partnership, and is also strengthening thesourcing of information on portfolio matters in order to acquire properties ahead of competitors.
The Investment Corporation aims to acquire properties that should contribute to increased profitability of its portfolio, fully considering
the rental NOI yield (Note) of the portfolio it owns, the weighted average costs and the significance and impact of the properties on its
growth strategies.
In selling properties, the Investment Corporation will examine the sale of properties individually in considering the use of funds for
replacement of assets through property acquisition or fund-type investments. Of this, concerning central urban retail properties andresidential properties, the Investment Corporation will not only refrain from conducting new investments in principle, but will also placesuch properties on the top of the list of properties to sell while taking into consideration the market environment, asset size and otherfactors. On the other hand, the Investment Corporation will decide on the sale of office buildings individually by considering the current
profitability, revenue projections that take into account future market trends, building age, area and property size, among other factors,
and also in light of the significance of the property’s presence in the portfolio.
-10-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Note: The leasing NOI yield is a weighted-average figure of the annualized yield of leasing NOI（= Rental revenues - Rental expenses + Depreciation
expenses for the period）against the acquisition price, in accordance with the operating period.

(b) Existing property management strategy
The Investment Corporation has appointed the Asset Management Company as its sole property management company for the entire
portfolio as of the end of the thirteenth fiscal period (fiscal period ended October 31, 2011). In establishing a single point of contact for all
matters relating to property management activities, the Investment Corporation strives to secure consistent policies, specifications andprocedures along with ensuring swift and quality service.
Taking into consideration economic and real estate market trends, the Investment Corporation adopts a tenant-oriented approach to its
leasing activities with aims of ensuring a timely and flexible response as well as optimal tenant satisfaction. Accordingly, the Investment
Corporation will aim to maintain / increase cash flow by offering office environments with high tenant satisfaction. Based on the
aforementioned, the Asset Management Company undertakes property management activities as follows:・Identify degree of satisfaction through use of CS surveys (customer satisfaction = tenant satisfaction)
・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 environmental response
Identify degree of tenant satisfaction through use of CS surveys
The Investment Corporation recognizes each tenant as a key customer and strives to enhance customer satisfaction and raise thecompetitiveness of its properties as the means to maintain and increase earnings.
The Investment Corporation conducted a customer satisfaction survey (“CS Survey”) through J.D. Power Asia Pacific, Inc., aninternationally recognized company that engages in customer satisfaction evaluation, to better understand the needs of its tenants and takesteps to respond to their preferences. As a part of this survey the administration officers of each tenant and tenant employees were asked torespond to many questions concerning buildings and facilities as well as operating and management services. The Investment Corporation
conducted the first CS Survey, which covered 20 of its properties, during the second fiscal period (fiscal period ended April 30, 2006), thesecond CS Survey, which covered 44 of its properties, during the fifth fiscal period (fiscal period ended October 31, 2007) and the third CS
Survey, which covers 58 properties during the ninth fiscal period (fiscal period ended October 31, 2009).
Furthermore, based on the responses of tenants up to the third survey, the Investment Corporation established guidelines on management
response centering on improvement measures to reflect issues of dissatisfaction in terms of soft services (operating and management
services), including cleaning and tenant services, in an aim to standardize and enhance service quality in relation to the portfolio. The
Investment Corporation has adopted the guidelines as a rule as of the twelfth fiscal period (fiscal period ending April 30, 2011) and has
implemented the improvement measures. These resulted in better evaluations in the fourth CS Survey compared to the previous survey
results, both in terms of comprehensive degree of satisfaction and willingness for continued lease, which confirmed that there was a certain
level of evaluation by tenants on the improvement measures.
The Investment Corporation will continue to listen to the voices of tenants, its customers, and will endeavor to conduct improvement
activities after grasping its strengths and problems both in terms of hardware and soft services for each property, in pursuit of maintaining
and enhancing tenant satisfaction.
By periodically conducting such surveys, the Investment Corporation will aim to increase customer satisfaction, generate improvements
in rent levels and asset values, promote enhanced earnings and aim to maintain and increase cash flow.
Take measures to maintain and raise competitiveness of properties
The Investment Corporation aims to provide attractive mid-sized office buildings in order to maintain and enhance portfolio value andrental revenues.
The Investment Corporation believes that the quality of mid-sized office buildings in Japan vary considerably depending on the nature of
the owner. For example, a building owned by an individual or small company that owns only one or a few buildings may not have theresources to provide high-quality maintenance. Furthermore, when a building is owned by a large company, property management isoften dictated by that company’s priorities and does not necessarily correspond to tenant needs or satisfaction.
The Investment Corporation will consolidate its building maintenance companies by taking utmost advantage of the portfolio size, andthen will implement operation and management in close contact with the actual properties in order to further enhance the management
quality and services. The Investment Corporation will set unified standards in regards to specifications and services that tend to differ by-11-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

property, and implement measures to enhance value by carrying out property management based on these unified standards. By doing so,
the Investment Corporation aims to maintain rent levels and asset values.
Tailor leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary target of the Investment Corporation’s investment, are that manyof the tenants generally tend to be small- and medium-sized enterprises and turnover ratios are relatively high. Therefore, in the leasing
aspect, the Investment Corporation implements leasing activities in a timely and flexible manner by adopting the basic policy ofendeavoring to maximize revenues for the medium- to long-term through maintaining occupancy ratios, while taking into accounteconomic 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 dynamic and flexible leasing activities through the sharing of information closely with leading brokers, holding ofpreviews, marketing directly to corporations, utilizing guarantee companies and other measures.
On the other hand, the Investment Corporation will endeavor to conduct property management so as to increase customer satisfaction by
adopting the basic policy of maintaining current conditions in serving existing tenants.
Apply careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation utilizes the scale merits of owning many properties and the negotiating strength acquired through its
management track record to reduce building maintenance costs. The Investment Corporation has managed to reduce building
maintenance expenses for office buildings, trust fees and electricity costs at some properties by reviewing the specific elements ofbuilding maintenance. In addition, the Investment Corporation has managed to improve the efficiency of content of maintenance andalso managed to reduce costs by consolidating the building maintenance company for office buildings in Tokyo.
The Investment Corporation will carefully control the quality of property management and operating costs and reduce building
maintenance and operating costs by taking advantage of the portfolio size in building maintenance costs and construction bidding.
Ensure appropriate responses to relevant laws and regulations
The Investment Corporation will swiftly collect information with regard to the laws to be revised, including the Energy Saving Act, as
well as present laws and regulations, to appropriately make the required responses.
Develop a proactive environmental response
The Investment Corporation was designated as a specified corporation pursuant to the Act on the Rational Use of Energy on October 1,
2010. 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, in November 2011, the Investment Corporation started to disclose its environmental
policies on its website to demonstrate its endeavors in approaching environmental issues.
(c) Financial Strategy (Debt Financing)
The Investment Corporation will seek to diversify its debt repayment period to reduce refinancing risk. Furthermore, the Investment
Corporation will pursue stable financial management through such measures as continuing to maintain long-term debt ratios above
prudent levels.
Given the ongoing improvement in the debt procurement environment since 2010, the Investment Corporation will continue its
endeavors to negotiate better borrowing terms.In order to pursue stable financial management, the Investment Corporation will continue
to aim to keep the ratio of interest-bearing debt to total assets (LTV) at less than 45% as a rule. However, it will also remain open to theoption of increasing LTV to the upper 40% level in the event of debt financing conducted for the purpose of acquiring competitive
properties or otherwise. The Investment Corporation will work to control the ratio of interest-bearing debt to total assets in the sameconservative manner as before.
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.
(d) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aim of-12-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

promptly providing a wide range of relevant information to investors. In specific terms, the Investment Corporation provides information
through the Timely Disclosure Network System (TDnet), which is a system operated by the Tokyo Stock Exchange, as well as press
releases and its Web site (URL: http://www.kdx-reit.com/eng/ ).
(3) Important Subsequent Events(1) Acquisition of Properties
On December 19, 2011, the Investment Corporation decided to acquire the eight properties described below (total planned acquisition
price: ¥28,550 million) as of December 26, 2011, with funds procured through new borrowings described in (2) below.
In addition, the following planned acquisition price does not include the acquisition costs, property tax, city-planning tax andconsumption tax, etc.
Details shared by the following acquisitions
Date of Contract
SellerScheduled Date of Acquisition
Type ofSpecified
Asset

Type

OfficeBuilding

Trust
beneficiaryinterest inreal estate

Other

December 19, 2011
AIG Edison Life Insurance Company
December 26, 2011

Property Name

PlannedAcquisition Price(Millions of Yen)

Numberof
StoriesYear Built

Kabutocho Nikko Building

11,270

6-5 Nihombashi Kabutocho, Chuo-ku, Tokyo

B1 F8

November 1998

Ikebukuro Nikko Building
Kabutocho Nikko Building II

1,653

1-20-8 Minami Ikebukuro, Toshima-ku, Tokyo

B1 F8March 1986

1,280

8-1 Nihombashi Kabutocho, Chuo-ku, Tokyo

F8

October 2001

Tachikawa Ekimae Building

1,267

2-12-18 Akebonocho, Tachikawa-shi, Tokyo

B1 F8

February 1990

Nagoya Ekimae Sakuradori Building

7,327

3-26-8 Meieki, Nakamura-ku, Nagoya-shi, Aichi

B2 F15

April 1986

Nagoya Nikko Shoken Building

4,158

3-2-3 Sakae, Naka-ku, Nagoya-shi, Aichi

B3 F11

August 1974

Sendai Nikko Building

950

3-2-21 Chuo, Aoba-ku, Sendai-shi, Miyagi

B1 F8

March 1989

Kanazawa Nikko Building

645

4-65 Minamicho, Kanazawa-shi, Ishikawa

B1 F7

March 1989

Location (Address)(2) Debt Financing
On December 19, 2011, the Investment Corporation concluded an agreement to borrow funds (total amount of ¥29,000 million)
through syndicated loans, with Sumitomo Mitsui Banking Corporation as the arranger and the agent and Development Bank of Japan
Inc. as the co-arranger, in order to finance the acquisition of the above eight properties.
Short-term borrowings (Term Loan 65-A)

Long-term borrowings (Term Loan 65-B)

Long-term borrowings (Term Loan 65-C)

Amount¥7,500 million¥5,000 million (Note 1)¥2,500 million

LenderAozora Bank, Ltd.,
Mitsubishi UFJ Trust and Banking Corporation
The Chuo Mitsui Trust and Banking Co., Limited
Base rate (JPY TIBOR for 3-month
in JBA) + 0.55% (Note 2)

Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.,The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Base rate (JPY TIBOR for 3-month
in JBA) + 0.65% (Note 2)

October 31, 2012

October 31, 2014

October 31, 2014

Long-term borrowings (Term Loan 65-D)

Long-term borrowings (Term Loan 65-E)

Long-term borrowings (Term Loan 65-F)¥4,500 million (Note 1)¥2,500 million

Interest
Rate
Repayment
Date

AmountLenderInterest
Rate
Repayment
Date

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Base rate (JPY TIBOR for 3-month
in JBA) + 0.70% (Note 2)

Development Bank of Japan Inc.
Not yet determined (Fixed rate of interest)

October 31, 2015

October 31, 2015

Long-term borrowings (Term Loan 65-G)
Amount¥2,500 million

LenderDevelopment Bank of Japan Inc.

Interest
Rate
Repayment
Date

Not yet determined (Fixed rate of interest)
October 31, 2016-13-

Development Bank of Japan Inc.
Not yet determined (Fixed rate of interest)¥4,500 million (Note 1)
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Base rate (JPY TIBOR for 3-month
in JBA) + 0.75% (Note 2)
October 31, 2016

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Details shared by the abovementioned borrowings
Drawdown Date

December 26, 2011

Interest Payment Date
Repayment Method

First interest payment on March 31, 2012, and at the end of every three months (on the lastbusiness day of each month, if the end of each month is a non-business day) and on repayment date.
Each principal repayment in full on respective dates of maturity

Collateral

Unsecured, unguaranteed

Notes:
1. The Investment Corporation has decided to execute an interest-rate swap agreement as a hedge against possible increases in future interest rates forthe long-term borrowing which has floating rate of interest (Term Loan 65-B, 65-D and 65-F).
2. The base rate for the period commencing December 26, 2011 through March 31, 2012 will be the Japanese Yen TIBOR for four months which
Japanese Bankers Association (JBA) will release on December 21, 2011. Thereafter, the base rate shall be calculated based on Japanese Yen
TIBOR for three months which JBA releases two business days before each interest payment date. The base rate for the last period shall becalculated based on Japanese Yen TIBOR for one month.

(Reference Material)(1) Debt Financing
The Investment Corporation entered into an agreement regarding a commitment-type term loan on December 19, 2011 for the
purpose of repaying the Investment Corporation’s First Series Unsecured Investment Corporation Bonds (¥9 billion in total), which
will mature on March 15, 2012, thereby securing flexible and stable means for funds procurement.
Term Loan 66-L
Lender：Sumitomo Mitsui Banking Corporation, Aozora Bank, Ltd.,
Development Bank of Japan Inc., The Chuo Mitsui Trust and Banking Co., Limited
Interest Rate
：Base rate (JPY TIBOR for 3-month in JBA) + 0.70%
Amount：total of ¥7,000 million
Commitment Period ：From December 19, 2011 through March 15, 2012
Debt Financing Method : Syndicated loan with Sumitomo Mitsui Banking Corporation acting as an agent.
Repayment Method ：Principal repayment in full on maturity, which shall be the date marking 2 years from thedrawdown date
Collateral：Unsecured, unguaranteed.
(2) Repayment of Debt Financing
The Investment Corporation repaid the following debt financing on November 30, 2011 using cash on hands and other means.
Series 13-B
Lender：The Norinchukin Bank
Amount：¥2,500 million
Drawdown Date ：December 1, 2006
Repayment Method：Principal repayment in full on maturity
Repayment Date ：November 30, 2011
Series 57
Lender：The Norinchukin Bank
Amount：¥1,500 million
Drawdown Date ：April 18, 2011
Repayment Method：Principal repayment in full on maturity
Repayment Date ：November 30, 2011-14-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Outlook
Forecasts for the fourteenth fiscal period (November 1, 2011 to April 30, 2012) are presented as follows. Please refer to the “Preconditions
and Assumptions for the Fiscal Period Ending April 30, 2012” below for factors that underpin forecasts.
Operating Revenues
Operating Income
Ordinary Income
Net Income
Distribution per Unit
Distribution in Excess of Earnings per Unit

¥9,033 million¥4,098 million¥2,525 million¥2,524 million¥9,300¥0Note: Forecast figures 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 forecast
distribution per unit.

“Preconditions and Assumptions for the Fiscal Period Ending April 30, 2012”
Preconditions and Assumptions
Calculation Period
Property Portfolio

Operating Revenues

 The fourteenth fiscal period: November 1, 2011 to April 30, 2012 (182 days)
 Forecasts are based on the 74 properties held as of December 19, 2011.
 Forecasts are based on the number of properties remaining unchanged up to and including the end of
the fourteenth fiscal period other than the acquisition of 8 properties (total planned acquisition of¥28,550 million) expected to be acquired on December 26, 2011.
 The property portfolio may change due to a variety of factors in the future.
 Rental revenues are estimated based on valid leasing agreements as of December 19, 2011 and byconsidering variable factors, such as seasonal factors against the backdrop of historical performance,
as well as leasing conditions, such as the recent deterioration of real estate market conditions, inaddition to the difference in number of operating days due to movements in existing investment
assets.
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments fromtenants.

Operating Expenses

 Property-related expenses other than depreciation are based on the difference in number of operatingdays due to movements in existing investment assets and historic expenses, adjusted to reflect
expense variables including seasonal factors.
 An amount of ¥924 million has been assumed for property management fees and facility
management fees (property management and building maintenance fees, etc.).
 An amount of ¥692 million has been assumed for taxes and public dues (property tax andcity-planning tax, etc.).
 An amount of ¥1,563 million has been assumed for depreciation expense.
 An amount of ¥156 million has been assumed for repairs, maintenance and renovation expenses.
 Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by theasset management company for each property and amounts considered essential for each period.
Actual repairs, maintenance and renovation expenses for each fiscal period may, however, differ
significantly from estimated amounts 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 of acquisition settlement. In the case of the Investment Corporation, an amountequivalent to the portion allocated to the purchaser is included in the acquisition price of the property.

Non-Operating Expenses

 The Investment Corporation is amortizing unit issuance costs over a period of three years using thestraight-line method.
 Interest payable (including financing related expenses etc.) of ¥1,539 million is assumed for the
fourteenth fiscal period.

Extraordinary Profit/Loss Extraordinary profit/loss is not assumed.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Debt Financing and Investment
Corporation Bonds

 The balance of the borrowings and the investment corporation bonds as of December 19, 2011 are¥93,414 million and ¥13,500 million, respectively.
 Forecasts are based on the assumption that the Investment Corporation will undertake borrowings of¥29,000 million (short-term borrowings: ¥7,500 million and long-term borrowings: ¥21,500 million)
on December 26, 2011 for the purpose of property acquisitions.
 Of the borrowings as of December 19, 2011 and new borrowing planned to be undertaken on
December 26, 2011, a total of ¥9,441.5 million (short-term borrowings: ¥2,700 million and long-termborrowings: ¥6,741.5 million) in borrowings are due during the fourteenth fiscal period. However, allborrowings are presupposed to be refinanced excluding ¥291.5 million of the partial payment.
 The Investment Corporation plans to repay the investment corporation bonds of ¥9,000 million,
which are due on March 15, 2012, with funds procured through the issuance of investment
corporation bonds or debt financing.

Investment Units Issued andOutstanding The number of investment units issued and outstanding as of December 19, 2011 is 286,550 units.
Forecasts are based on the assumption that the number of investment units issued and outstanding
shall remain unchanged for the fourteenth fiscal period.

Distributions per Unit Distributions per unit are calculated in accordance with the distribution policy outlined in theInvestment Corporation’s Articles of Incorporation. Forecasts are based on the assumption that of theamount accumulated in the reduction entry reserve pursuant to the “Special Provisions for Taxation in
the Event of Advance Acquisition of Land, etc. in 2009 and 2010” (Article 66-2 of the Special
Taxation Measures Law) , the Investment Corporation is presupposing to utilize ¥143 million for the
distribution of cash to unitholders.
 Actual distributions per unit may differ significantly from forecasted figures due to a variety ofreasons including movements in investment assets, rental revenues impacted by tenant movements or
the incidence of major unforeseen renovation expense.

Distributions in Excess of
Earnings per Unit
Other

 The Investment Corporation does not currently anticipate distributions in excess of 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 figures.
 Forecasts are based on the assumption that there will be no major unforeseen changes to economic
trends and in real estate and other markets.

-16-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

3. Financial Statements(1) Balance Sheets(Thousands of Yen)
Twelfth Fiscal Period

Thirteenth Fiscal Period(As of April 30, 2011)(As of October 31, 2011)ASSETS
Current assets *2
Cash and deposits *2

7,925,308

12,349,209

Cash and deposits in trust

5,869,654

5,989,325

Accounts receivable-trade186,412

173,772

Prepaid expenses

54,91374,204

Consumption taxes receivable

310,485-

Other
Total current assets

5,475

3,359

14,352,250

18,589,872

14,792,636

14,835,908

Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation-1,686,763-1,932,075

Buildings, net

13,105,873

12,903,832

22,26022,461

Structures
Accumulated depreciation-5,055-5,745Structures, net

17,204

16,715

345,675

354,877

Machinery and equipment
Accumulated depreciation-72,198-83,859

Machinery and equipment, net

273,476

271,017

Tools, furniture and fixtures

77,35078,185

Accumulated depreciation-17,888-21,378

Tools, furniture and fixtures, net

59,46156,807

29,104,205

29,104,205

Land
Buildings in trust *3

70,624,524

74,239,182

Accumulated depreciation-10,215,088-11,002,737

Buildings in trust, net

60,409,436

63,236,445

Structures in trust

218,908

232,442

Accumulated depreciation-75,935-80,745

Structures in trust, net

142,972

151,696

Machinery and equipment in trust

963,183

999,616

Accumulated depreciation-425,123-456,979

Machinery and equipment in trust, net

538,060

542,637

Tools, furniture and fixtures in trust

324,187

327,986

Accumulated depreciation-155,485-168,348

Tools, furniture and fixtures in trust, net

168,701

159,638

142,006,875

148,116,665

-

1,874

245,826,267

254,561,536

Leasehold right

285,350

285,350

Leasehold right in trust

74,85374,079908

790

361,112360,219

10,00010,000Land in trust
Construction in progress in trust
Total property, plant and equipment *2
Intangible assets

Right of using water facilities in trust *2
Total intangible assets
Investments and other assets
Lease and guarantee deposits-17-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Lease and guarantee deposits in trust

124,361

123,692

Long-term prepaid expenses

1,207,565

1,185,942

Total investments and other assets
Total noncurrent assets

1,341,926

1,319,635

247,529,306

256,241,390

Deferred assets
Investment corporation bond issuance costs

22,20530,906

Investment unit issuance expenses

25,136111,272

Total deferred assets

47,342

142,178

261,928,899

274,973,440

Total assets(Thousands of Yen)
Twelfth Fiscal Period

Thirteenth Fiscal Period(As of April 30, 2011)(As of October 31, 2011)

Liabilities
Current Liabilities
Accounts payable

409,413556,104

Short-term loans payable *2

8,700,000

10,200,000

Current portion of investment corporation bond

9,000,000

9,000,000

Current portion of long-term loans payable *2

27,460,000

13,850,000

Accounts payable-other

208,083

246,331

Accrued expenses

192,370

191,325

Income taxes payable

1,171

1,352

Accrued consumption taxes

51,28080,236

Advances received

1,872,708

1,281,806

Deposits received

16,243

2,814

Provision for loss on disaster

30,932

2,333

47,942,202

35,412,305

Total current liabilities
Noncurrent liabilities
Investment corporation bond

3,000,000

4,500,000

Long-term loans payable *2

64,555,500

73,364,000

Tenant leasehold and security deposits

1,521,762

1,556,321

Tenant leasehold and security deposits in trust

9,403,820

9,868,360

Total noncurrent liabilities

78,481,082

89,288,681

126,423,284

124,700,986

133,129,755

147,153,820

65,79565,795

Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusReserve for reduction entry
Total voluntary reserve

65,79565,795

Unappropriated retained earnings(undisposed loss)

2,310,063

3,052,837

Total surplus

2,375,859

3,118,633

135,505,614

150,272,453

135,505,614

150,272,453

261,928,899

274,973,440

Total unitholders' equity
Total net assets *1
Total liabilities and net assets-18-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Statements of Income(Thousands of Yen）
Twelfth Fiscal Period

Thirteenth Fiscal Period

November 1, 2010 to April 30, 2011

May 1, 2011 to October 31, 2011

Rent revenue-real estate *1

7,208,235

7,475,270

Other lease business revenue *1

928,681

1,023,679-

545,281

8,136,917

9,044,231

Expenses related to rent business *1

3,767,177

3,961,611

Asset management fee

448,106

487,405

Directors' compensation

5,850

6,300

Asset custody fee

24,82025,525Administrative service fees

54,771

56,326

Audit fee

10,80010,800Operating revenue

Gain on sales of real estate properties *2
Total operating revenue
Operating expenses

Other operating expenses

115,482

70,938

Total operating expenses

4,427,007

4,618,908

3,709,909

4,425,323

Interest income

1,205

1,063

Dividends and redemption-prescription

1,143

1,176

Operating income
Non-operating income

Interest on refund

-

3,512

Other

999

-

Total non-operating income

3,348

5,753

Interest expenses

935,345919,211

Interest expenses on investment corporation bonds

113,378

117,176

Borrowing related expenses

303,479

298,043

Non-operating expenses

Amortization of investment corporation bond issuance costs

5,781

6,880

Amortization of investment unit issuance expenses

8,378

27,281

Other

155

22,075

1,366,519

1,390,668

2,346,738

3,040,407

Total non-operating expenses
Ordinary income
Extraordinary income
Subsidy

26,230--13,97026,23013,970Loss on disaster

35,360-Loss on reduction of noncurrent assets

26,230-Total Extraordinary loss

61,590-

Income before income taxes

2,311,378

3,054,377

1,412

1,570

Gain on donation of noncurrent assets
Total Extraordinary income
Extraordinary loss

Income taxes-current
Income taxes-deferred

-28

-10

Total income taxes

1,383

1,560

2,309,995

3,052,817

Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)

-19-

68

20

2,310,063

3,052,837

KENEDIX REALTY INVESTMENT CORPORATION (8972)(3) Statements of Unitholders’ Equity(Thousands of Yen）
Twelfth Fiscal Period

Thirteenth Fiscal Period

November 1, 2010 to April 30, 2011

May 1, 2011 to October 31, 2011

Unitholders' equity
Unitholders' capital *Balance at the startof current period

133,129,755

133,129,755-

14,024,065-

14,024,065

133,129,755

147,153,820-

65,795

Provision of reserve for reduction entry

65,795-

Total changes of items during the period

65,795-65,79565,795-65,795

Provision of reserve for reduction entry

65,795-

Total changes of items during the period

65,795-65,79565,7952,607,121

2,310,063-65,795-

Distribution from surplus-2,541,257-2,310,043

Net income

2,309,995

3,052,817

Changes of items during the period
Issuance of new investment units
Total changes of items during the period
Balance at the end of current period
Surplus
Voluntary reserve
Reduction entry
Balance at the startof current period
Changes of items during the period

Balance at the end of current period
Total Voluntary reserve
Balance at the start of current period
Changes of items during the period

Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the start of current period
Changes of items during the period
Provision of reserve for reduction entry-297,058

742,774

2,310,063

3,052,837

2,607,121

2,375,859

Distribution from surplus-2,541,257-2,310,043

Net income

2,309,995

3,052,817

Total changes of items during the period-231,262

742,774

2,375,859

3,118,633

135,736,876

135,505,614-

14,024,065

Distribution from surplus-2,541,257-2,310,043

Net income

2,309,995

3,052,817

Total changes of items during the period-231,262

14,766,839

135,505,614

150,272,453-4,502-

Total changes of items during the period
Balance at the end of current period
Total Surplus
Balance at the start of current period
Changes of items during the period

Balance at the end of current period
Total unitholders' equity
Balance at the start of current period
Changes of items during the period
Issuance of new investment units

Balance at the end of current period
Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at the start of current period-20-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Changes of items during the period
Net change of items other than owners' equity

4,502

-

Total changes of items during the period

4,502

-

-

-

-4,502-

Net change of items other than owners' equity

4,502

-

Total changes of items during the period

4,502

-

-

-

135,732,374

135,505,614

Balance at the end of current period
Total valuation and translation adjustments
Balance at the start of current period
Changes of items during the period

Balance at the end of current period
Total net assets
Balance at the start of current period
Changes of items during the period
Issuance of new investment units-

14,024,065

Distribution from surplus-2,541,257-2,310,043

Net income

2,309,995

3,052,817

4,502

-

-226,760

14,766,839

135,505,614

150,272,453

Net change of items other than owners' equity
Total changes of items during the period
Balance at the end of current period-21-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Basis for Calculating Cash Distribution(Unit: Yen)
Thirteenth Fiscal Period

Twelfth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)

I. Retained earnings at the end of period

2,310,063,344

3,052,837,677

II. Total Distribution

2,310,043,050

2,749,733,800(9,891)(9,596)-

303,000,000

20,294

103,877

In accordance with the policy depicted in

In accordance with the policy depicted in

Article 35-1 of its Articles of Incorporation,

Article 35-1 of its Articles of Incorporation,

the Investment Corporation determines that

the Investment Corporation determines thatthe amount of distribution shall exceed thethe amount of distribution shall exceed theamount equivalent to 90% of its distributableamount equivalent to 90% of its distributableprofit as stipulated in Article 67-15 of the

profit as stipulated in Article 67-15 of theSpecial Taxation Measures Law, and shall beSpecial Taxation Measures Law, and shall be

up to the amount of its profits as the ceiling.

up to the amount of its profits as the ceiling.

Following this policy, the Investment

Following this policy, the Investment

Corporation has decided to distribute the

Corporation has decided that, of the amountmaximum amount of retained earnings at theremaining after the reserve for reduction

period-end, namely totaling ¥2,310,043,050

entry as stipulated in Article 66-2 of theto 233,550 units issued and outstanding.

Special Taxation Measures Law is deducted(Distribution per Unit)
III. Voluntary retained earnings
Provision for reserve for reduction entry
IV. Retained Earnings brought forward to the next
periodMethod of calculating the distribution amount

Procedures for the distribution of amounts

from unappropriated retained earnings, it

exceeding distributable income are outlined

shall distribute the maximum amount ofin

Investment

retained earnings at the period-end, namely

Corporation’s Articles of Incorporation. In its

Article

35-2

of

the

totaling ¥2,749,733,800 to 286,550 units

fiscal period under review, the Investment

issued and outstanding.

Corporation has decided not to distributecash in excess of distributable profit.

Procedures for the distribution of amounts
exceeding distributable income are outlinedin

Article

35-2

of

the

Investment

Corporation’s Articles of Incorporation. In its
fiscal period under review, the Investment
Corporation has decided not to distributecash in excess of distributable profit.

-22-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(5) Statements of Cash Flows(Thousands of Yen)
Twelfth Fiscal Period

Thirteenth Fiscal Period

November 1, 2010 to April 30, 2011

May 1, 2011 to October 31, 2011

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

2,311,378

3,054,377

Depreciation and amortization

1,406,895

1,442,935

Amortization of long-term prepaid expenses

213,368

247,729

Interest income-1,205-1,063

Interest expenses

1,048,723

1,036,387

Amortization of investment unit issuance expenses

8,378

27,281

Amortization of investment corporation bond issuance expenses

5,781

6,880

Loss on disaster

35,360-Subsidy-26,230-

Loss on reduction of noncurrent assets

26,230-Gain on donation of noncurrent assets--13,970

Decrease (increase) in accounts receivable-trade

22,066

12,639-310,485

310,485

Decrease (increase) in prepaid expenses

11,616-19,290

Increase (decrease) in accounts payable-12,251

65,851

Decrease (increase) in consumption taxes refund receivable

Increase (decrease) in accounts payable-other-21,496

8,563

Increase (decrease) in accrued consumption taxes-230,840

28,955

Increase (decrease) in advances received

705,811-590,901

Increase (decrease) in deposits received

9,084-13,429

Loss on retirement of noncurrent assets

5,402

-

-

5,122,100-668,009-226,107

18,596731

4,558,174

10,500,158

Changes in net property, plant and equipment held in trust from sale
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest income received

1,205

1,063

-1,011,751-1,037,432--28,598-632-1,171

3,546,997

9,434,020-57,818-53,346-13,745,779-15,177,128

Purchase of intangible assets in trust-75,498-

Payments for lease and guarantee deposits in trust-122,709

-

-

669

Payments of tenant leasehold and security deposits-85,045-40,773

Proceeds from tenant leasehold and security deposits

51,35387,177

Interest expenses paid
Payments for loss on disaster
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

Proceeds from collection of lease and guarantee deposits in trust

Payments of tenant leasehold and security deposits in trust-530,111-643,261

Proceeds from tenant leasehold and security deposits in trust

960,494

1,123,447

Payments into time deposits-74,000-

Proceeds from withdrawl of time deposits-

464,000

Payments of restricted bank deposits in trust-134,899-

Proceeds from restricted bank deposits in trust

112,587

100,403

Net cash provided by (used in) investment activities-13,701,425-14,138,812-23-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Net cash provided by (used in) financing activities
Increase in short-term loans payable

6,200,000

6,000,000

Decrease in short-term loans payable-3,800,000-4,500,000

Proceeds from long-term loans payable

26,300,000

14,000,000

Repayment of long-term loans payable-18,551,500-18,801,500

Proceeds from issuance of investment units-

13,938,968

Proceeds from issuance of investment corporation bonds-

1,485,336-2,541,093-2,310,038

Net cash provided by (used in) financing activities

7,607,406

9,812,767

Net increase (decrease) in cash and cash equivalents-2,547,022

5,107,976

15,367,049

12,820,027

12,820,027

17,928,003

Dividends paid

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

*

-24-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(6) Notes【Going Concern】
Thirteenth Fiscal Period(May 1, 2011 to October 31, 2011)
None【Important Accounting Standards】
1. 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.
Right of using water facilities: 6 years
Leasehold rights
Fixed term leasehold is amortized over a contractual period of forty-eight years and nine months under thestraight-line method.
(3) Long-term prepaid expenses
The straight-line method is applied.

2. 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.

3.Accounting standards for provision

Provision for loss due to disasterOf the cost of repairs on impaired fixed assets due to the East Japan Earthquake of 2011, the amount reasonably
estimable at the period end is recognized as a provision.

4. Accounting standards for revenues andexpenses

Accounting method for property tax
Property-related taxes including property taxes and city planning taxes, etc. are imposed on properties on acalendar year basis. These taxes are generally charged to rental expenses for the period, for the portion of suchtaxes 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 its pro rata property portion for the year in each property
acquisition price and not as rental expense. The amount of property taxes included in acquisition prices for theprevious fiscal period amounted to ¥23,704 thousand and for the fiscal period under review amounted to ¥44,438
thousand.

5. Accounting for hedges(1) Hedge accounting method
The deferred hedge method is applied. However, the special treatment is applied for the interest-rate swap
agreements that meet the criteria.
(2) Hedging instruments and risks hedged
Hedge instruments
The Investment Corporation enters into interest-rate swap transactions.
Risks hedged
Interest rates on debt.

-25-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its risk management policies with theobjective 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, theInvestment Corporation compares the cumulative total of market changes in the targeted 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 a decision based on the changes and other factors of the two.
However, the interest-rate swap agreements that meet the criteria for special treatment, the evaluation ofeffectiveness are omitted.
6. The scope of cash and cash equivalents onstatements of cash flows

For the purpose of cash flow statements, cash and cash equivalents consist of cash on hand, deposits received thatcan be withdrawn on demand, and short-term investments with original maturities of three months or less, thatare readily convertible to known amounts of cash and present insignificant risk of a change in value.

7. Other significant accounting policies utilized
in the preparation of financial statements(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 of trust beneficiaryinterests in real estate and other assets are recorded in full in the Investment Corporation’s balance sheets andstatements of income.
Important line items included in accounting for financial assets 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 and fixtures in trust,land in trust and construction in progress in trust
3. Right of using water facilities in trust
4. Tenant leasehold and security 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 the acquisition ofassets are included in the cost of acquisition for each asset.

【Additional Information】
Thirteenth Fiscal Period(May 1, 2011 to October 31, 2011)
Accounting Standards for Accounting Changes and Error Corrections
The Investment Corporation has applied the "Accounting Standard for Accounting Changes and Error Corrections" (Accounting Standards Board of Japan (ASBJ)
Statement No. 24; December 4, 2009) and the "Guidance on Accounting Standard for Accounting Changes and Error Corrections" (ASBJ Guidance No. 24);
December 4, 2009), starting with accounting changes and corrections of past errors to be conducted after the beginning of the fiscal period under review.

-26-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Balance Sheets】(Thousands of Yen)

Twelfth Fiscal Period

Thirteenth Fiscal Period(April 30, 2010)(October 31, 2011)*1. Minimum unitholders’ equity pursuant to Article 67-4 of the Law*1. Minimum unitholders’ equity pursuant to Article 67-4 of the Law

Concerning Investment Trusts and Investment Corporations Law

Concerning Investment Trusts and Investment Corporations Law
50,000Same applies as left.

*2. Assets pledged as collateral and secured loans payable
Assets pledged as collateral
Cash and deposits

464,000

Cash and deposits in trust

4,626,463

Buildings

6,947,263

Structures

5,337

Machinery and equipment

14,164Tools, furniture and fixtures

7,507

Land

12,547,562

Buildings in trust

47,260,160

Structures in trust

97,080Machinery and equipment in trust

493,645

Tools, furniture and fixtures in trust

127,528

Land in trust

115,133,177

Right of using water facilities in trust

908

Total

187,724,799

Secured loans payable
Short-term loans payable

8,700,000

Current portion of long-term loans payable

27,460,000

Long-term loans payable

64,555,500

Total

100,715,500*3 The amount of advanced depreciation of property, plant and equipment*3 The amount of advanced depreciation of property, plant and equipment

acquired by government subsidy

acquired by government subsidy

Building in trust

26,230Same applies as left.

-27-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Statements of Income】
Twelfth Fiscal Period(Thousands of Yen)
Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)*1. Breakdown of real estate rental business profit and loss

*1. Breakdown of real estate rental business profit and loss

A. Rental and other operating revenues

A. Rental and other operating revenues

Rental revenues

Rental revenues

Leasing income

5,908,063

Leasing income

6,121,318

Common area charges

1,300,172

Common area charges

1,353,951

Total

7,208,235

Total

7,475,270

OthersOthersParking space rental revenues

250,324

Parking space rental revenues

249,514

Utility charge reimbursement

583,965

Utility charge reimbursement

633,844

Miscellaneous

94,391

Miscellaneous

140,320

Subtotal

928,681Subtotal

1,023,679

Total rental and operating revenues

8,136,917

Total rental and operating revenues

8,498,949

B. Rental and other operating expenses

B. Rental and other operating expenses

Rental expenses

Rental expenses

Property management fees and facility management fees

811,786

Property management fees and facility management fees

832,724

Utilities

561,061

Utilities

617,943

Taxes

643,178

Taxes

703,542

Repairs and maintenance costs

123,949

Repairs and maintenance costs

152,452

Insurance

16,209Insurance

14,654

Trust fees

42,317

Trust fees

43,614

Others156,377

Others153,743

Depreciation

1,406,895

Depreciation

1,442,935

Loss on retirement of fixed assets

5,402

Total property-related expenses

3,961,611

Total property-related expenses

3,767,177

C. Rental business profit (A – B)

4,537,337

C. Rental business profit (A – B)

4,369,739*2. Gain and Loss on sale of real estate(Thousands of Yen)

①KDX Hirawakacho Building
Revenue from sale of the investment property

5,800,000

Costs of the investment property

5,122,100

Other sales’ expenses

132,618

Gain on sale of real estate545,281【Notes to the Statements of Changes in Unitholders’ Equity】
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)

Total number of authorized investment units and total number ofinvestment units issued and outstanding・Total number of authorized investment units

2,000,000 units

2,000,000 units

・Total number of investment units issued and outstanding

233,550 units

286,550 units-28-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Statements of Cash Flow】
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)*Reconciliation of balance sheet items to cash and cash equivalents at end of*Reconciliation of balance sheet items to cash and cash equivalents at end of

period in the cash flows statements.

period in the cash flows statements.

(As of April 30, 2011)(Thousands of Yen)

(As of October 31, 2011)(Thousands of Yen)

Cash and bank deposits

7,925,308

Cash and bank deposits

12,349,209

Cash and deposits in trust

5,869,654

Cash and deposits in trust

5,989,325

Restricted bank deposits held in trust (Note 1)-510,936

Restricted bank deposits held in trust (Note)

Longer than 3 months fixed deposits (Note 2)-464,000

Cash and cash equivalents

Cash and cash equivalents-410,532
17,928,003

12,820,027

Note 1: Restricted bank deposits held in trust are retained for repayment of

Note: Restricted bank deposits held in trust are retained for repayment of

tenant leasehold and security deposits held in trust.

tenant leasehold and security deposits held in trust.

Note 2: Longer than 3 months fixed deposits are fixed deposit which have adeposit term longer than 3 months.
【Notes to the Lease Transactions】
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)
Operating lease transactions(May 1, 2011 to October 31, 2011)(Thousands of Yen)

Operating lease transactions(Lessor)(Thousands of Yen)

(Lessor)

Unearned lease payments

Unearned lease payments

Due within one year

1,008,045

Due within one year

788,658

Due after one year

5,892,331

Due after one year

5,355,453

Total

6,900,376

Total

6,144,111-29-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Financial Instruments】
Twelfth Fiscal Period (November 1, 2010 to April 30, 2011)
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 the issuanceof corporate bonds and new investment accounts. 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 isundertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Financial Instruments and Respective Risks
Loans and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a maximumof seven years following the accounting 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) in order to hedge against such risks.
Derivative instruments are interest-rate swap transactions that are used to hedge against interest rate fluctuation risks. Utilizing interest-rate swap transactions, theInvestment Corporation fixed its interest payments for funds procured on a floating interest rate basis. 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 ImportantAccounting 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 transactions in order to minimize risks associated with interest payment rate fluctuations on funds procured.
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.

2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference as of April 30, 2011 are as follows:Book Value
Fair Value(Thousands of Yen)
(Thousands of Yen)
(1) Cash and deposits
7,925,308
7,925,308(2) Cash and deposits in trust
5,869,654
5,869,654
Total assets
13,794,962
13,794,962(1) Short-term loans payable
8,700,000
8,700,000(2) Investment corporation bonds
12,000,000
11,737,200(3) Long-term loans payable
92,015,500
91,186,358
Total liabilities
112,715,500
111,623,558
Derivative Transaction-

Difference(Thousands of Yen)
-262,800-829,142-1,091,942-

Note 1: Items with regard to the calculation method of financial instrument fair value together with 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 fair value.

(2) Investment corporation bonds
The fair value of investment corporation bonds is based on market prices.

-30-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(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 interest rate fluctuations on long-term borrowings, saidborrowings—which are subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps—are calculated by discounting thetotal amount of principal and interest, which is handled together with applicable interest-rate swaps, by the rationally estimated interest rate in the case that the same typeof borrowings are undertaken.
Derivative Transaction
Please refer to the aforementioned “Derivative Transaction.”
Note 2: Amount of redemption of monetary claims
Less than or equal to 1 year
(Thousands of Yen)
Cash and deposits
7,925,308
Cash and deposits in trust
5,869,654
Total
13,794,962
Note 3: Investment corporation bonds, repayment of loans, planned repayment amountLess than or Equal to 1 yr.
1-2 yrs.
(Thousands of Yen)
(Thousands of Yen)
Short-term loans payable
8,700,000
Investment corporation bonds
9,000,000
Long-term loans payable
27,460,000
11,920,000
3-4 yrs.
(Thousands of Yen)
Short-term loans payable
Investment corporation bonds
Long-term loans payable

4-5 yrs.
(Thousands of Yen)

14,515,500

2-3 yrs.
(Thousands of Yen)
17,320,000
More than 5 yrs.
(Thousands of Yen)

17,800,000

3,000,000
3,000,000

Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011)
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 the issuanceof corporate bonds and new investment accounts. 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 isundertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Financial Instruments and Respective Risks
Loans and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a maximumof seven years following the accounting 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) in order to hedge against such risks.
Derivative instruments are interest-rate swap transactions that are used to hedge against interest rate fluctuation risks. Utilizing interest-rate swap transactions, theInvestment Corporation fixed its interest payments for funds procured on a floating interest rate basis. 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 ImportantAccounting 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 transactions in order to minimize risks associated with interest payment rate fluctuations on funds procured.
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.

-31-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(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.

2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference as of October 31, 2010 are as follows:Book Value
Fair Value(Thousands of Yen)
(Thousands of Yen)
(1) Cash and deposits
12,349,209
12,349,209(2) Cash and deposits in trust
5,989,325
5,989,325
Total assets
18,338,535
18,338,535(1) Short-term loans payable
10,200,000
10,200,000(2) Investment corporation bonds
13,500,000
13,324,050(3) Long-term loans payable
87,214,000
86,587,303
Total liabilities
110,914,000
110,111,353
Derivative Transaction-

Difference(Thousands of Yen)
-175,950-626,697-802,647-

Note 1: Items with regard to the calculation method of financial instrument fair value together with 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 fair value.

(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 interest rate fluctuations on long-term borrowings, saidborrowings—which are subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps—are calculated by discounting thetotal amount of principal and interest, which is handled together with applicable interest-rate swaps, by the rationally estimated interest rate in the case that the same typeof borrowings are undertaken.
Derivative Transaction
Please refer to the aforementioned “Derivative Transaction.”
Note 2: Amount of redemption of monetary claims
Less than or equal to 1 year
(Thousands of Yen)
Cash and deposits
12,349,209
Cash and deposits in trust
5,989,325
Total
18,338,535
Note 3: Investment corporation bonds, repayment of loans, planned repayment amountLess than or Equal to 1 yr.
1-2 yrs.
(Thousands of Yen)
(Thousands of Yen)
Short-term loans payable
10,200,000
Investment corporation bonds
9,000,000
1,500,000
Long-term loans payable
13,850,000
17,606,000-32-

2-3 yrs.
(Thousands of Yen)
24,323,000

KENEDIX REALTY INVESTMENT CORPORATION (8972)

3-4 yrs.
(Thousands of Yen)
Short-term loans payable
Investment corporation bonds
Long-term loans payable

4-5 yrs.
(Thousands of Yen)

15,135,000

More than 5 yrs.
(Thousands of Yen)

13,300,000【Notes to the Marketable Securities】
Twelfth Fiscal Period

3,000,000
3,000,000

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)

The Investment Corporation has not undertaken transactions in marketable

Same applies as left.

securities. Accordingly, there is no information to disclose.
【Notes to the Derivative Transactions】
Twelfth Fiscal Period (November 1, 2010 to April 30, 2011)(1) Items that do not apply hedge accounting
Not applicable(2) Items that apply hedge accounting
Hedge accounting
methodSpecial treatment of interest-rate
swaps

Type of Derivative Transactions
Interest-rate swap transaction
Fixed rate payable
Floating rate receivable

Main target risk hedge
Long-term loans payable

Contracted amount(Thousands of Yen)
More than 1 yr.
10,000,000

Hedge accounting
methodFair value(Thousandsof Yen)Calculation method for applicablefair value

Special treatment of interest-rate
1,000,000
*
swaps
Total
10,000,000
1,000,000* Special treatment of interest-rate swaps are reported at the fair value of applicable long-term loans payable. This is because such swaps are handled together withhedged long-term loans payable.
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011)(1) Items that do not apply hedge accounting
Not applicable(2) Items that apply hedge accounting
Hedge accounting
methodSpecial treatment of interest-rate
swaps

Type of Derivative Transactions
Interest-rate swap transaction
Fixed rate payable
Floating rate receivable

Hedge accounting
methodMain target risk hedge
Long-term loans payable

Contracted amount(Thousands of Yen)
More than 1 yr.
6,500,000

Fair value(Thousandsof Yen)Calculation method for applicablefair value

Special treatment of interest-rate
2,000,000
*
swaps
Total
6,500,000
2,000,000* Special treatment of interest-rate swaps are reported at the fair value of applicable long-term loans payable. This is because such swaps are handled together withhedged long-term loans payable.

【Notes to the Retirement Payment】
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)

The Investment Corporation does not maintain a retirement payment system.
Accordingly, there is no information to disclose.

-33-

Same applies as left.

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Asset Retirement Obligations】
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)

Not applicable

Same applies as left.

【Segment and Related Information】
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)

1. Segment Information

1. Segment Information

Disclosure is omitted because the real estate leasing business is the Investment

Same applies as left.

Corporation’s sole business and it has no reportable segment subject todisclosure.
2. Related Information

2. Related Information(1) Information about each product and service(1) Information about each product and service

Disclosure is omitted because net sales to external customers for a single

Same applies as left.

product/service category account for over 90% of the operating revenue on thestatement of income.
(2) Information about each geographic area(2) Information about each geographic area

A. Net sales

A. Net sales

Disclosure is omitted because net sales to external customers in Japan accountSame applies as left.

for over 90% of the operating revenue on the statement of income.
B. Property, plant and equipment

B. Property, plant and equipment

Disclosure is omitted because the amount of property, plant and equipment

Same applies as left.

located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
(3) Information about each major customer(3) Information about each major customer

Disclosure is omitted because net sales to a single external customer account forSame applies as left.

less than 10% of the operating revenue on the statement of income.

-34-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Tax-Effect Accounting】
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)

1.Principal deferred tax assets and liabilities(Thousands of Yen)

1.Principal deferred tax assets and liabilities(Deferred tax assets)(Thousands of Yen)

(Deferred tax assets)

Enterprise tax payable not included in expenses

39Enterprise tax payable not included in expenses

49

Amortization of leasehold rights in trust

253

Amortization of leasehold rights in trust

558

Subtotal deferred tax assets
Valuation Allowance
Total deferred tax assets

293
-253
39

2. Significant difference between statutory
income tax rate and the effective tax rate
Statutory tax rate

Subtotal deferred tax assets
Valuation Allowance

607
-558

Total deferred tax assets

49

2. Significant difference between statutory
(%)
39.33

(Adjustments)

income tax rate and the effective tax rate
Statutory tax rate

(%)
39.33

(Adjustments)

Deductible cash distributions- 39.31

Deductible cash distributions- 35.41

Others0.04

Provision for reserve for reduction entry-3.90

Effective tax rate

0.06

Others0.03

Effective tax rate

0.05

None

3. Tax rate changes after the settlement date
The Act to Revise the Income Tax Act, etc., in Order to Construct a Tax
System Addressing Changes in the Socio-Economic Structure (Act No.
114 of 2011) and the Act on Special Measures for Securing Necessary
Financial Resources to Implement Measures to Rebuild Areas Devastatedby the Great East Japan Earthquake (Act No. 117 of 2011) were
promulgated on December 2, 2011. In accordance with the promulgation,
the effective statutory tax rate used to calculate the deferred tax assets anddeferred tax liabilities concerning the temporary differences, etc.
expected to be reversed in the accounting periods starting on April 1, 2012
and after will be changed to 36.59%, and the effective statutory tax rateused to calculate the deferred tax assets and deferred tax liabilities
concerning the temporary differences, etc. expected to be reversed in theaccounting periods starting on April 1, 2015 and after will be changed to34.16%, respectively.
These changes will have no impact on the settlement of the Investment
Corporation.

【Equity-Method Income and Retained Earnings】
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)

The Investment Corporation has no affiliated companies accounted for underthe equity-method. Accordingly, there is no information to disclose.

-35-

Same applies as left.

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Related-Party Transactions】
Twelfth Fiscal Period (November 1, 2010 to April 30, 2011)
1．Parent Company, corporate shareholders and other:None

2. Affiliated companies and other: None
3. Fellow subsidiary companies and other: None
4. Directors, individual shareholders and other
Attributes

NameRatio ofPossession of
Details of Business
Voting Rights (%)

Business Activities / Position

Board ofDirectors and Taisuke
Close
Miyajima
Relatives

Executive Director for the
Possession of
Investment Corporation and CEO Right
and President of Kenedix REIT
Direct 0.0％
Management, Inc.

As above

As above

As above

As above

As above

As above

As above

As above

Payment of asset management fee
to Kenedix REIT Management,
Inc. (Note 1)
Payment of business consignment
fee to Kenedix REITManagement, Inc. (Note3)
Payment of property management
fee to Kenedix REITManagement, Inc. (Note5)

Deal Amount Accounting(¥Thousands)
Term

Balance of
Period End(¥Thousands)

500,806 Accounts(Note 2) Payable(Note 4) -other

75,060(Note 4)6,500
(Note4)－－

313,752(Note 4)

Accounts
Payable65,086(Note 4)

Notes:
1. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
2. Asset management fee include ¥58,700 thousand fee related to the acquisition of property are accounted for in book value for the individual real estate.
3. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Operating Agency
Agreement” between the Investment Corporation and Kenedix REIT Management, Inc.
4. Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Property
Management Agreement” between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥28,522 thousand
related to the acquisition of property are accounted in book value for the individual real estate..
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011)
1．Parent Company, corporate shareholders and other:None

2. Affiliated companies and other: None
3. Fellow subsidiary companies and other: None
4. Directors, individual shareholders and other
Attributes

NameBusiness Activities / Position

Ratio ofPossession of
Details of Business
Voting Rights (%)

Board of
TaisukeDirectors andMiyajima
Close Relatives

Executive Director for the
Possession of
Investment Corporation and CEO
and President of Kenedix REIT Right
Management, Inc.
Direct 0.0％

As above

As above

As above

As above

As above

As above

As above

As above

Payment of asset management fee
to Kenedix REIT Management,
Inc. (Note1)
Payment of business consignment
fee to Kenedix REITManagement, Inc. (Note3)
Payment of property management
fee to Kenedix REITManagement, Inc. (Note5)

Balance ofDeal Amount Accounting
Period End(¥Thousands) Term(¥Thousands)
587,755

Accounts(Note 2)

Payable(Note 4)-other1,500(Note4)

99,238(Note 4)－－

332,825 Accounts(Note 4) Payable

82,757(Note 4)

Notes:
1. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
2. Asset management fee include ¥71,350 thousand fee related to the acquisition of property are accounted in book value for the individual real estate and¥29,000 thousand sales fee related to the sale of property are accounted for in the sales expense for the individual real estate.
3. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Operating Agency
Agreement” between the Investment Corporation and Kenedix REIT Management, Inc.
4. Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Property
Management Agreement” between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥31,424 thousand-36-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

related to the acquisition of property are accounted in book value for the individual real estate and ¥2,400 thousand sales fee related to the sale of property areaccounted for in the sales expense for the individual real estate.
【Fair Value of Real Estate for Rental Purposes】
Twelfth Fiscal Period (November 1, 2010 to April 30, 2011)
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.
Book Value (Thousands of Yen)
Fair value at the end of current period(Thousands of Yen)
Balance at the end of previous period
Changes during the period
Balance at the end of current period
233,725,107
12,462,272
246,187,379
222,664,000
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. KDX Hirakawacho Building is calculated
based on the sales price of ¥5,800 million under the sales and purchase agreement dated April 5, 2011.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increases were the acquisitionof real estate trust beneficiary interests to four properties totaling ¥13,298,226 thousand, and depreciation amounting to ¥1,406,895 thousand.
Income and loss in the fiscal period ended October 31, 2010 for real estate for rental purposes is listed in Notes Concerning Statements of Income.
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011)
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.
Book Value (Thousands of Yen)
Fair value at the end of current period(Thousands of Yen)
Balance at the end of previous period
Changes during the period
Balance at the end of current period
246,187,379
8,734,375
254,921,755
230,717,000
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 fiscal period under review, principal increases were the acquisitionof real estate trust beneficiary interests to four properties totaling ¥14,609,501 thousand, the sale of real estate trust beneficiary interests to one property
amounting ¥5,122,100 thousand and depreciation amounting to ¥1,442,935 thousand.
Income and loss in the fiscal period ended October 31, 2011 for real estate for rental purposes is listed in Notes Concerning Statements of Income.
【Notes to the Information per Unit】
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)(May 1, 2011 to October 31, 2011)

Unitholders’ Equity per Unit

¥580,199

Unitholders’ Equity per Unit

¥524,419

Net Income per Unit

¥ 9,890

Net Income per Unit

¥11,592

Net Income per Unit is calculated by dividing Net Income by the weighted

Net Income per Unit is calculated by dividing Net Income by the weighted

average (based on number of days) number of units.

average (based on number of days) number of units.

Net income per unit after adjusting for residual units is not included because

Net income per unit after adjusting for residual units is not included because

there were no residual investment units.

there were no residual investment units.

Note: The calculation for the net income per unit is as follow.
Twelfth Fiscal Period

Thirteenth Fiscal Period(November 1, 2010 to April 30, 2011)
Net Income (¥ thousand)(May 1, 2011 to October 31, 2011)

2,309,995

3,052,817－-

Net income for ordinary units (¥ thousand)

2,309,995

3,052,817

Average number of units during the period (unit)

233,550

263,341

Amount not vested in ordinary investors (¥ thousand）-37-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Important Subsequent Events】
Thirteenth Fiscal Period(May 1, 2011 to October 31, 2011)(1) Acquisition of Properties
On December 19, 2011, the Investment Corporation decided to acquire the eight properties described below (total planned acquisition price: ¥28,550 million) as ofDecember 26, 2011, with funds procured through new borrowings described in (2) below.
In addition, the following planned acquisition price does not include the acquisition costs, property tax, city-planning tax and consumption tax, etc.
Details shared by the following acquisitions
Date of Contract

December 19, 2011

SellerAIG Edison Life Insurance Company

Scheduled Date of Acquisition

December 26, 2011

Type

OfficeBuilding

Type ofSpecified
Asset

Trust
beneficiaryinterest inreal estate

Other

Property Name

PlannedAcquisition Price(Millions of Yen)

Numberof
StoriesYear Built

Kabutocho Nikko Building

11,270

6-5 Nihombashi Kabutocho, Chuo-ku, Tokyo

B1 F8

November 1998

Ikebukuro Nikko Building
Kabutocho Nikko Building II

1,653

1-20-8 Minami Ikebukuro, Toshima-ku, Tokyo

B1 F8March 1986

1,280

8-1 Nihombashi Kabutocho, Chuo-ku, Tokyo

F8

October 2001

Tachikawa Ekimae Building

1,267

2-12-18 Akebonocho, Tachikawa-shi, Tokyo

B1 F8

February 1990

Nagoya Ekimae Sakuradori Building

7,327

3-26-8 Meieki, Nakamura-ku, Nagoya-shi, Aichi

B2 F15

April 1986

Nagoya Nikko Shoken Building

4,158

3-2-3 Sakae, Naka-ku, Nagoya-shi, Aichi

B3 F11

August 1974

Sendai Nikko Building

950

3-2-21 Chuo, Aoba-ku, Sendai-shi, Miyagi

B1 F8

March 1989

Kanazawa Nikko Building

645

4-65 Minamicho, Kanazawa-shi, Ishikawa

B1 F7

March 1989

Location (Address)(2) Debt Financing
As of December 19, 2011, the Investment Corporation concluded an agreement to borrow funds through syndicated loans, with Sumitomo Mitsui Banking
Corporation as the arranger and the agent and Development Bank of Japan Inc. as the co-arranger, in order to finance the acquisition of the above eight properties.
Short-term borrowings (Term Loan 65-A)

Long-term borrowings (Term Loan 65-B)

Long-term borrowings (Term Loan 65-C)

Amount¥7,500 million¥5,000 million (Note 1)¥2,500 million

LenderAozora Bank, Ltd.,
Mitsubishi UFJ Trust and Banking Corporation
The Chuo Mitsui Trust and Banking Co., Limited

Interest Rate

Base rate (JPY TIBOR for 3-month
in JBA) + 0.55% (Note 2)

Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.,The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Base rate (JPY TIBOR for 3-month
in JBA) + 0.65% (Note 2)

Repayment
Date

October 31, 2012

October 31, 2014

October 31, 2014

Long-term borrowings (Term Loan 65-D)

Long-term borrowings (Term Loan 65-E)

Long-term borrowings (Term Loan 65-F)¥4,500 million (Note 1)¥2,500 million¥4,500 million (Note 1)

AmountLenderInterest Rate
Repayment
Date

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Base rate (JPY TIBOR for 3-month
in JBA) + 0.70% (Note 2)

Development Bank of Japan Inc.
Not yet determined (Fixed rate of interest)

October 31, 2015

October 31, 2015

Long-term borrowings (Term Loan 65-G)
Amount¥2,500 million

LenderDevelopment Bank of Japan Inc.

Interest Rate

Not yet determined (Fixed rate of interest)

Repayment
Date

October 31, 2016

-38-

Development Bank of Japan Inc.
Not yet determined (Fixed rate of interest)

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Base rate (JPY TIBOR for 3-month
in JBA) + 0.75% (Note 2)
October 31, 2016

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Thirteenth Fiscal Period(May 1, 2011 to October 31, 2011)
Details shared by the abovementioned borrowings
Drawdown Date

December 26, 2011

Interest Payment DateFirst interest payment on March 31, 2012, and at the end of every three months (on the lastbusiness day of each month, if the end of each month is a non-business day) and repayment date.

Repayment Method

Each principal repayment in full on respective dates of maturity

Collateral

Unsecured, unguaranteed

Notes:
1. The Investment Corporation has decided to execute an interest-rate swap agreement as a hedge against possible increases in future interest rates forthe long-term borrowing which has floating rate of interest (Term Loan 65-B, 65-D and 65-F).
2. The base rate for the period commencing December 26, 2011 through March 31, 2012 will be the Japanese Yen TIBOR for four months which
Japanese Bankers Association (JBA) will release on December 21, 2011. Thereafter, the base rate shall be calculated based on Japanese Yen
TIBOR for three months which JBA releases two business days before each interest payment date. The base rate for the last period shall becalculated based on Japanese Yen TIBOR for one month.

-39-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（7）Movements in Investment Units Issued and Outstanding
Movements in unitholders’ capital and the number of investment units issued and outstanding since first fiscal periods are summarized in thefollowing table.
Settlement Date

Particulars

May 6, 2005
July 20, 2005
August 16, 2005
May 1, 2006
May 26, 2006
May 22, 2007
June 19, 2007
November 16, 2009
July 20, 2011
August 8, 2011

Private placement
Public offering
Third-party allocation
Public offering
Third-party allocation
Public offering
Third-party allocation
Public offering
Public offering
Third-party allocation

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)400
75,0003,970
73,6603,970
40,9002,100
33,55051,4001,600

Unitholders’ Capital(Millions of Yen)
Increase
Balance(Decrease)400
75,40079,370153,030
157,000
197,900
200,000
233,550
284,950
286,550200
41,8682,216
42,171
2,272
34,474
1,770
8,156
13,600423

200
42,06844,28586,45688,729123,203
124,973
133,129
146,730
147,153

Remarks(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)Notes:
1. The Investment Corporation was established with an offer price of ¥500,000 per unit.
2. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥580,000 per unit with an underwritten price of ¥558,250 per unit.
3. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥558,250 per unit.
4. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥593,096 per unit with an issue price of ¥572,519 per unit.
5. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥572,519 per unit.
6. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties and repayment of borrowings. The offer price was ¥873,180 per unit with an issue price of ¥842,886 per unit.
7. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties and repayment of borrowings. The issue price was ¥842,886 per unit.
8. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥252,200 per unit with an issue price of ¥243,100 per unit.
9. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥274,510 per unit with an issue price of ¥264,605 per unit.
10. 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.

4. Resignation/Appointment of the Directors(1) Resignation/Appointment of the Investment Corporation Directors
None(2) Resignation/Appointment of the Asset Management Company
Retiring Auditor
Corporate Auditor (part-time) Kenichi Yamasaki (resignation due to passing away on September 18, 2011)-40-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Reference Information（1）Component of Assets
Type of

Type

Specified Asset

Real Estate

Office Buildings

Area

Total Amount Held

Ratio

Total Amount Held

Ratio(¥M) (Note 1)(%) (Note 2)(¥M) (Note 1)(%) (Note 2)

Tokyo Metropolitan Area

30,394

11.6

30,275

11.0

Other Regional Areas

12,4504.8

12,362

4.5

42,845

16.4

42,637

15.5

Tokyo Metropolitan Area

158,14360.4

167,283

60.8

Other Regional Areas

23,7009.0

23,584

8.6

181,843

69.4

190,868

69.4

Tokyo Metropolitan Area

7,262

2.8

7,198

2.6

Other Regional Areas

1,852

0.7

1,830

0.7

9,114

3.5

9,028

3.3

Total for Real Estate
Office Buildings
Trust
BeneficiaryInterest in RealThirteenth Fiscal Period(As of October 31, 2011)

Twelfth Fiscal Period(As of April 30, 2011)

Total for Office Buildings
Residential Properties

EstateTotal for Residential Properties

12,383

4.7

12,386

4.5

Total of Trust Beneficiary Interests in Real Estate

Central Urban Retail Properties

Tokyo Metropolitan Area

203,34177.6

212,283

77.2

Bank Deposits and Other Assets

15,741

6.0

20,051

7.3

Total Assets

261,928100.0

274,973

100.0

Notes:
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), andis rounded down to the nearest ¥1 million.
2. “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.

Thirteenth Fiscal Period(As of October 31, 2011)
Price (Millions of Yen)
Ratio (%)

Twelfth Fiscal Period(As of April 30, 2011)
Price (Millions of Yen)
Total of Liabilities
Total Unitholders’ Equity
Total of Assets

Ratio (%)

126,423

48.3

124,700

45.4

135,50551.7

150,27254.6

261,928100.0

274,973

100.0

-41-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（2） Properties Roster①The Price of the Investment Properties and the Investment Ratio(Millions of Yen)
Appraisal Value at the end of Thirteenth Fiscal Period

Type

Area

No.

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
（Note5）A-60

KDX Harumi Building

10,250

9,778

8,450

8,600

4.8

8,290

4.5

4.9

A

4.0

A-40

Toranomon Toyo Building

9,850

9,859

10,10010,300

4.5

9,850

4.3

4.8

A

3.8

A-46

Hiei Kudan-Kita Building

7,600

7,579

7,530

7,880

4.7

7,380

4.5

4.9

B

2.9

A-66

KDX Shinjuku Building

6,800

6,887

6,620

6,690

4.5

6,540

4.3

4.7

A

2.6

A-37

KDX Ochanomizu Building

6,400

6,663

6,400

6,480

4.9

6,310

4.7

5.1

A

2.5

A-32

KDX Shiba-Daimon Building

6,090

6,221

5,010

5,040

4.9

4,980

4.7

5.1

A

2.3

A-13

KDX Kojimachi Building

5,950

5,646

4,410

4,450

4.4

4,360

4.2

4.6

A

2.3

A-1

KDX Nihonbashi 313 Building

5,940

6,130

6,920

7,160

4.8

6,820

4.6

5.0

B

2.3

A-47

KDX Shin-Yokohama 381 Building

5,800

5,888

4,140

4,160

5.9

4,110

5.6

6.0

A

2.2

A-16

Toshin-24 Building

5,300

5,156

4,200

4,230

5.7

4,160

5.5

5.9

A

2.0

A-71

KDX Iidabashi Building (Note 6)

4,670

4,706

4,830

4,900

4.9

4,800

4.7

5.1

B

1.8

A-17

KDX Ebisu Building (Note 6)

4,640

4,576

4,260

4,290

4.9

4,230

4.6

5.1

A

1.8

A-72

KDX Higashi-Shinagawa Building(Note 6)

4,590

4,763

4,800

4,900

5.1

4,750

4.9

5.3

B

1.7

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,373

5,220

5,280

4.9

5,150

4.7

5.1

A

1.7

A-39

KDX Toranomon Building

4,400

4,804

3,640

3,680

4.4

3,600

4.2

4.6

A

1.7

A-67

KDX Ginza 1chome Building (Note 6)

4,300

4,312

4,740

4,860

4.5

4,690

4.3

4.7

B

1.6

A-30

KDX Nishi-Gotanda Building

4,200

4,073

3,800

3,830

5.1

3,760

5.0

5.4

A

1.6

4,000

4,016

4,330

4,390

4.8

4,300

4.6

5.0

B

1.5

3,760

3,817

3,410

3,410

6.3

3,410

5.9

6.5

A

1.4

KDX Hatchobori Building

3,680

3,357

3,420

3,450

5.0

3,410

4.8

5.2

B

1.4

KDX Omori Building

3,500

3,385

3,790

3,820

5.3

3,760

5.1

5.5

A

1.3

A-19

KDX Hamamatsucho Building

3,460

3,263

3,180

3,280

4.7

3,130

4.5

4.9

B

1.3

A-45

KDX Roppongi 228 Building

3,300

3,436

2,160

2,180

4.8

2,140

4.5

4.9

A

1.2

A-62

Koishikawa TG Building

3,080

3,147

3,330

3,360

5.0

3,290

4.8

5.2

A

1.2

A-29

KDX Higashi-Shinjuku Building

2,950

3,208

3,320

3,460

5.2

3,260

5.0

5.4

B

1.1

A-20

KDX Kayabacho Building

2,780

2,829

2,880

2,910

5.3

2,840

4.9

5.4

A

1.0

A-56

KDX Jimbocho Building

2,760

2,910

1,860

1,870

5.3

1,850

5.0

5.5

A

1.0

A-49

Nissou Dai-17 Building

2,710

2,632

1,590

1,610

5.8

1,570

5.6

6.0

A

1.0

A-73

KDX Hakozaki Building (Note 6)

2,710

2,825

2,850

2,920

5.2

2,820

5.0

5.4

B

1.0

A-21

KDX Shinbashi Building

2,690

2,651

2,850

2,870

4.6

2,820

4.2

4.8

A

1.0

A-63

Gotanda TG Building

2,620

2,823

2,660

2,690

5.3

2,620

5.1

5.5

A

1.0

A-5

KDX Nakano-Sakaue Building

2,533

2,457

2,330

2,360

5.4

2,310

5.2

5.6

B

0.9

A-22

KDX Shin-Yokohama Building

2,520

2,467

2,280

2,300

5.9

2,250

5.7

6.1

A

0.9

A-68
A-48
OfficeBuildings

Property Name

Amount on
Acquisition
the Balance
Price
Sheet
（Note 1）
(Note 2)

Tokyo
A-4
Metropolitan
Area
A-18

KDX Nihonbashi Honcho Building(Note 6)
KDX Kawasaki-Ekimae Hon-cho
Building

A-6

Harajuku F.F. Building

2,450

2,451

2,950

2,970

5.6

2,920

5.4

5.8

A

0.9

A-50

Ikejiri-Oohashi Building

2,400

2,462

1,570

1,580

5.9

1,560

5.6

6.0

A

0.9

A-27

KDX Kajicho Building

2,350

2,398

2,320

2,380

5.1

2,290

4.9

5.3

B

0.9

A-51

KDX Hamacho Nakanohashi Building

2,310

2,357

1,700

1,720

5.3

1,680

5.1

5.5

A

0.9

A-15

KDX Hamacho Building

2,300

2,260

2,360

2,380

5.2

2,340

5.0

5.4

A

0.9

A-41

KDX Shinjuku 286 Building

2,300

2,333

2,120

2,140

5.0

2,100

4.8

5.2

A

0.9

A-74

KDX Shin-Nihonbashi Building(Note 6)

2,300

2,315

2,480

2,540

4.7

2,450

4.5

4.9

B

0.9

-42-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Appraisal Value at the end of Thirteenth Fiscal Period

Type

Area

No.

Property Name

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
（Note5）

A-7

FIK Minami Aoyama

2,270

2,252

2,150

2,170

4.8

2,120

4.6

5.0

A

0.8

A-14

KDX Funabashi Building

2,252

2,416

1,950

1,960

6.1

1,940

5.9

6.3

A

0.8

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,257

1,850

1,900

4.7

1,830

4.5

4.9

B

0.8

A-55

Shin-toshin Maruzen Building

2,110

2,161

1,610

1,610

5.3

1,600

4.9

5.5

A

0.8

A-64

KDX Nihonbashi 216 Building

2,010

1,981

1,930

1,950

4.7

1,900

4.5

4.9

A

0.7

A-33

KDX Okachimachi Building

2,000

2,126

1,830

1,860

5.1

1,820

5.0

5.3

B

0.7

A-57

KDX Gobancho Building

1,951

1,987

1,530

1,550

4.9

1,510

4.7

5.1

A

0.7

Kanda Kihara Building

1,950

1,856

1,870

1,910

5.0

1,850

4.8

5.2

B

0.7

KDX Yotsuya Building

1,950

1,989

2,460

2,480

5.3

2,430

5.1

5.5

A

0.7

A-8
Tokyo
Metropolitan A-23
Area
A-59

KDX Iwamoto-cho Building

1,864

1,808

1,340

1,350

5.4

1,330

5.2

5.6

A

0.7

A-26

KDX Kiba Building

1,580

1,572

1,580

1,590

5.6

1,560

5.4

5.8

A

0.6

A-38

KDX Nishi-Shinjuku Building

1,500

1,526

1,170

1,180

5.2

1,150

5.0

5.4

A

0.5

A-31

KDX Monzen-Nakacho Building

1,400

1,412

1,260

1,300

5.6

1,240

5.4

5.8

B

0.5

A-52

KDX Kanda Misaki-cho Building

1,380

1,377

976

985

5.3

966

5.1

5.5

A

0.5

A-34

KDX Hon-Atsugi Building

1,305

1,183

1,070

1,060

6.3

1,070

6.1

6.5

B

0.5

A-35

KDX Hachioji Building

1,155

1,289

821

822

5.9

821

5.7

6.1

B

0.4

A-28

KDX Nogizaka Building

1,065

1,123

718

723

5.5

713

5.2

5.6

A

0.4

A-58

KDX Nagoya Sakae Building

7,550

7,564

4,730

4,860

5.2

4,680

5.0

5.4

B

2.9

A-12

Portus Center Building

5,570

4,638

4,590

4,620

6.4

4,580

6.2

6.6

B

2.1

A-42

Karasuma Building

5,400

5,410

5,020

5,150

5.6

4,960

5.4

5.8

B

2.1

A-53

KDX Hakata-Minami Building

4,900

4,798

3,490

3,540

6.6

3,440

6.4

6.8

A

1.9

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,795

2,920

2,950

6.9

2,890

5.3

7.3

A

1.1

A-54

KDX Kitahama Building

2,220

2,207

1,510

1,510

6.0

1,510

5.6

6.2

A

0.8

A-44

KDX Sendai Building

2,100

2,172

1,440

1,430

6.1

1,450

6.1

6.3

B

0.8

A-70

Kitananajo SIA Building

2,005

2,073

2,050

2,100

5.8

2,030

5.6

6.0

B

0.7

A-24

KDX Minami Semba Dai-1 Building

1,610

1,464

1,010

1,010

5.8

1,000

5.6

6.0

A

0.6

A-25

KDX Minami Semba Dai-2 Building

1,560

1,375

1,070

1,080

5.8

1,060

5.6

6.0

A

0.6

A-36

KDX Niigata Building

1,305

1,446

899

912

7.3

886

7.1

7.5

A

0.5

Subtotal of Office Buildings (68 properties)

233,726-

91.4

OfficeBuildings

Other
Regional
Areas

233,506 211,654 214,882-

209,236

-

-

5,353

5,019

4,480

4,520

5.3

4,440

5.1

5.5

A

2.0

1,250

1,173

952

956

5.4

947

5.2

5.6

A

0.4

1,038

1,005

971

980

5.6

962

5.4

5.8

A

0.4

1,800

1,830

1,470

1,470

6.8

1,470

6.6

7.0

A

0.7

9,441

9,028

7,873

7,926

-

3.6

C-1 Frame Jinnan-zaka

9,900

9,864

9,280

9,420

4.6

9,140

4.4

4.8

A

3.8

C-2 KDX Yoyogi Building

2,479

2,522

1,910

1,910

5.3

1,900

4.9

5.5

A

0.9

Subtotal of Central Urban Retail Properties (2 properties)

12,37912,386

11,19011,330-11,040

-

-

-

4.8

Total of 74 properties

255,546

254,921 230,717 234,138-

228,095

-

-

-

100.0

B-19 Residence Charmante Tsukishima
Tokyo
Metropolitan B-3 Court Mejiro
Area
Residential
B-34 Gradito Kawaguchi
Properties
Other
Regional
Areas

B-18 Venus Hibarigaoka

Subtotal of Residential Properties (4 properties)
CentralUrban
RetailProperties

Acquisition
Price（Note 1）

Tokyo
Metropolitan
Area

-

7,819

-

-

Notes:
1. Acquisition price is the purchase price 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.).

-43-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

2. Figures of less than1 million are rounded down from the amounts on the balance sheet.
3. Appraisal values (end of the thirteenth 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 from valuation reports prepared by
Japan Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd.
4. As of the fiscal period under review, appraisals of the properties are entrusted to two appraisers: Japan Real Estate Institute and Daiwa Real Estate Appraisal
Co., Ltd. In the table, the appraisers are referred to as “A” for Japan Real Estate Institute and “B” for Daiwa Real Estate Appraisal Co., Ltd.
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 (74 properties).
6. The Investment Corporation has changed the following property names on October 31, 2011. Same applies below.
Property
New Property Name
Former Property Name
No.
A-17

KDX Ebisu Building

Ebisu East 438 Building

A-67

KDX Ginza 1chome Building

Kyodo Building (Ginza No.8)

A-68

KDX Nihonbashi Honcho Building

Kyodo Building (Honcho 1chome)

A-71

KDX Iidabashi Building

Kyodo Building (Iidabashi)

A-72

KDX Higashi-Shinagawa Building

P’s Higashi-Shinagawa Building

A-73

KDX Hakozaki Building

Nihonbashi Dai-2 Building

A-74

KDX Shin-Nihonbashi Building

Kyodo Building (Shin-Nihonbashi)② Property Distribution
Property TypesType

Number of Properties

Office Buildings
Residential Properties
Central Urban Retail Properties
Total

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

68
4
2

233,726
9,441
12,379

91.4
3.6
4.8

74

255,546

100.0

Geographic Distribution
Area

Number of Properties

Tokyo Metropolitan Area
Other Regional Areas
Total

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

62
12

216,656
38,890

84.7
15.2

74

255,546

100.0

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

Number of Properties

1,000 - 2,500
2,500 - 5,000
5,000 - 7,500
7,500 - 10,000
10,000 – 12,500
Total

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

34
25
10
4
1

63,72088,07358,60334,900
10,250

24.9
34.4
22.9
13.6
4.0

74

255,546100.0

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.

-44-

KENEDIX REALTY INVESTMENT CORPORATION (8972)③

Details of Investment Real Estate and Trust Real Estate
A. Overview of Investment Real Estate Properties and Trust Real Estate
Type

Area

No.

Property Name

Site Area（㎡）(Note1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)
Offices,A-60

KDX Harumi Building

2,230.69

869.01

1,844.83

1,118.12

1,515.28

3.14

May 1993

1.78

August 1982

2.97

July 1986

7.60

May 1994

3.60

April 1974

9.50

B4F11

Offices, Storage, Retail Shops
KDX Ochanomizu Building

March 1988

S・RC
10,348.02

Parking
A-37

13.06

B1F11

Offices, Retails Shops
KDX Shinjuku Building

August 1962
SRC･S

11,425.31
Parking, Storage Offices

A-66

5.60

B2F9

Retail Shops, Office Room
Hiei Kudan-Kita Building

February 2008
RC

8,346.83
Retail Shops, Storage

A-46

PML
(%) (Note 6)

B1F11

Bank, Offices
Toranomon Toyo Building

Completion Date
(Note 5)

S・SRC
12,694.32

Retail Shops
A-40

Type of Structure(Note 4)SRC
7,720.08

Parking, Mechanical Room

B1F7
SRC

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03
B1F9

OfficesA-13

KDX Kojimachi Building

612.17SRC
5,323.81

Retail Shops

B2F9
SRC

A-1

KDX Nihonbashi 313 Building

1,047.72

Offices

8,613.09
B2F9

KDX Shin-Yokohama 381 Building
A-47

Offices, Retail Shops
1,229.24(Note 7)

Parking, Garbage Room
Offices, Retail Shops

A-16

Toshin-24 Building

SRC･RCMarch 1988

B1F10

(Note 8)

10,290.30

1,287.16

12.02
SRC

8,483.17
Parking

September 1984

8.75

March 1990

8.37

January 1992

4.16

January 1993

10.40

January 1987

7.01

April 1988

8.07

November 1991

8.41

November 1992

8.28

January 1984

7.92

February 1985

8.34

June 1993

6.42

October 1990

0.71

September 1999

6.13

B1F8
SRC

OfficeBuildings

Tokyo
Metropolitan
Area

A-71

KDX Iidabashi Building

967.38

Offices, Parking

5,422.64
B1F8

Offices
A-17

KDX Ebisu Building

724.22SRC
4,394.58

Retail Shops

B1F7
S・RC

A-72

KDX Higashi-Shinagawa Building

3,115.45

Offices

10,138.65
B1F5
SRC

A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48
B1F9

Offices
A-39

KDX Toranomon Building

288.20SRC
2,277.38

Retail Shops

B1F9
SRC

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

4,724.62
F9
SRC

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87
B1F8
SRC

A-68

KDX Nihonbashi Honcho Building

583.40

Offices, Parking

5,110.45
B1F9

A-48

SRC

KDX Kawasaki-Ekimae Hon-cho
Building

1,968.13

KDX Hatchobori Building

992.20

Offices

7,420.87
B1F9
SRC・RC

A-4

Offices

4,800.43
B1F8

Offices, Retail Shops
A-18

KDX Omori Building

1,123.93

RC・SRC
7,334.77

Parking

B1F9

Offices, Retail Shops
A-19

KDX Hamamatsucho Building

504.26

S3,592.38

Parking-45-

F9

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note1)

A-45

KDX Roppongi 228 Building

408.86

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%) (Note 6)

April 1989

8.95

November 1989

7.54

January 1990

3.63

October 1987

7.90

May 1994

7.25

July 1991

13.23

November 1993

7.29

February 1992

6.84

April 1988

8.37

August 1992

5.20

September 1990

10.36

November 1985

5.66

September 1988

3.02

March 1990

6.05

September 1988

6.17

September 1993

6.76

August 1989

8.71

November 2002

5.51

November 1988

4.92

April 1989

2.76

April 1992

2.01

July 1990

4.87

October 2006

6.99

June 1988

2.23

SRC
Offices, Retail Shops

2,235.30
B1F9
SRC

A-62

Koishikawa TG Building

1,250.42

Offices, Parking

5,862.02
B1F8

Offices, Storage
A-29

KDX Higashi-Shinjuku Building

1,340.97

SRC
7,885.40

Parking

B1F9
SRC

A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86
F8
SRC

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
B1F8
SRC

A-49

Nissou Dai-17 Building

629.00

Offices, Parking

4,016.61
B1F8
SRC

A-73

KDX Hakozaki Building

971.83

Offices, Parking

6,332.48
B1F10

Offices, Retail Shops
A-21

KDX Shinbashi Building

536.11

SRC・S
3,960.22

Parking

B1F8
SRC

A-63

Gotanda TG Building

582.90

Offices, Parking Storage

4,440.61
B1F9

Offices, Retail Shops
A-5

KDX Nakano-Sakaue Building

1,235.16

SRC
6,399.42

Residential, Parking. Storage

B1F11

Offices, Retail Shops
A-22

KDX Shin-Yokohama Building

705.00S
6,180.51

Parking

B1F9

Retail Shops
OfficeBuildings

Tokyo
Metropolitan
Area

A-6

Harajuku F.F. Building

699.67SRC
3,812.44

Offices, Parking

F11
RC

A-50

Ikejiri-Oohashi Building

834.79

Offices

3,482.96
B2F9
SRC

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
B1F8
SRC

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41
F9

Retail Shops, Offices
A-15

KDX Hamacho Building

554.80SRC
4,133.47

Parking

B2F10
SRC・RCA-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04
B1F9

Offices, Retail Shops
A-74

KDX Shin-Nihonbashi Building

444.32

S
3,712.25

Parking

B1F10

Offices, Retail Shops
A-7

FIK Minami Aoyama

369.47SRC
1,926.98

Residential

B1F9

Offices
A-14

KDX Funabashi Building

1,180.41

SRC
5,970.12

Retail Shops

B1F8
S・SRC

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90
B1F8

Offices, Retail Shops
A-55

Shin-toshin Maruzen Building

457.64SRC
3,439.37

Parking

B1F8
SRC

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62
F9
S

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00
F10-46-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%) (Note 6)

August 2000

9.06

May 1993

7.77

October 1989

9.79

March 2008

7.15

October 1992

7.79

October 1992

9.02

September 1986

5.72

October 1992

9.41

May 1995

11.12

December 1985

13.00

May 1991

9.48

April 20092.87

September 1993

3.48

October 1982

8.37

June 1973

1.48

July 2009

13.79

July 1994

9.79

February 1984

1.93

October 1989

0.51

March 1993

9.04

September 1993

10.59

July 1983

4.39

S
A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11
F8
SRC・RC・S

A-8

Kanda Kihara Building

410.18

Offices

2,393.94
B1F8

Offices, Retail Shops
A-23

KDX Yotsuya Building

996.65RC
3,329.68

Parking

B2F4

OfficesA-59

KDX Iwamoto-cho Building

266.86

S
1,618.65

Residential Complex

F9
RC

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64
F5

Tokyo
Metropolitan
Area

RC
A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63
F5

Offices
A-31

KDX Monzen-Nakacho Building

580.99SRC
2,668.91

Retail Shops

F8
SRC

A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60
B1F7

OfficesA-34

KDX Hon-Atsugi Building

724.62SRC
3,603.63

Retail Shops

F8

Offices, Parking
A-35

KDX Hachioji Building

460.62SRC
2,821.21

Retail Shops

F9

Offices, Retail Shops
A-28

KDX Nogizaka Building

409.36RC
1,695.07

Residential
OfficeBuildings

B1F5
S

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retails Shops

9,594.00
F11

Offices, Retail Shops
A-12

Portus Center Building

13,936.63

SRC・S
79,827.08

Storage, Parking

B2F25
SRC

A-42

Karasuma Building

1,788.67

Offices

12,632.68
B1F8

Offices,A-53

KDX Hakata-Minami Building

1,826.25

SRC
13,238.16

Retail Shops, Parking
KDX Kobayashi-Doshomachi Building
A-69

Offices, Parking Storage
1,561.04

S・SRC
10,723.83(Note 9)
Other
Regional
Areas

B1F9

Retail Shops

B1F12

Offices, Storage
A-54

KDX Kitahama Building

751.92

S
4,652.96

Parking

F10
SRC

A-44

KDX Sendai Building

987.78

Offices

5,918.30
B1F10
SRC

A-70

Kitananajo SIA Building

819.44

Offices

5,503.90
B1F9
SRC・RC・S

A-24

KDX Minami Semba Dai-1 Building

715.44

Offices, Parking

4,236.59
B1F9

Parking Storage
SRC・S
A-25

KDX Minami Semba Dai-2 Building

606.45Retail Shops

3,315.93
B1F9

Offices, Residential
OfficesA-36

KDX Niigata Building

1,110.56

RC
6,810.29

Retail Shops

B2F13
Average of 21.6 yrs

Subtotal of Office Buildings (68 properties)

-

-

-

-

(Note 8)-47-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%) (Note 6)

January 2004

9.88

March 1997

7.11

February 2006

6.46

①RC F6②RC F5③RC F6

March 1989

5.20

-

Average of 11.3 yrs-

March 2005

8.02

August 1991

8.17

Average of 9.3 yrs-

Average of 20.6 yrs

5.30(Note 6)SRC
B-19

Residence Charmante Tsukishima

4,252.86

Residential Complex

18,115.39
B1F10

Tokyo
Metropolitan
Area

Residential
Properties

RC
B-3

Court Mejiro

1,581.91

Residential Complex

3,326.07
B1F3

Residential Complex
B-34

Gradito Kawaguchi

423.94RC
1,705.38

Retail Shops
Other
Regional
Areas

B-18

Venus Hibarigaoka

Subtotal of Residential Properties (4 properties)

F128,595.00

Residential Complex

14,976.25---

S・RC・SRC
CentralUrban
RetailProperties

C-1

Frame Jinnan-zaka

1,240.51

Retail Shops

Tokyo
Metropolitan
Area6,302.58
B2F7

Retail Shops
C-2

KDX Yoyogi Building

228.74SRC
1,269.06

Offices

F8

Subtotal of Central Urban Retail Properties (2 properties)

-

-

-

-

Total of 74 properties

-

-

-

(Note 8)Notes:
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.
2. Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of areas covered by the relevant
ownership is shown.
3. Total floor space is based on figures recorded in the land register and does not include related structures. The total floor area for the entire buildings isreported for compartmentalized ownership.
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 floorsof the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating to structure andthe number 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.
5. Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data is calculated using theweighted-average based on acquisition prices as of October 31, 2011, and is rounded down to the nearest first decimal place.
6. Probable Maximum Loss (PML) data is based on a survey provided by NKSJ Risk Management, Inc. as of June 2011. The Portfolio PML is the data
based on 74 properties.
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%).
8. The completion date of the existing tower is shown for the completion date of KDX Shin-Yokohama 381 Building. Upon calculating the weighted-average
portfolio age, the completion date (April 2009) for the KDX Shin-Yokohama 381 Building Annex Tower is not considered.
9. KDX Kobayashi Doshomachi Building includes the term leasehold interest with a special agreement to transfer building. In addition, the rent for land to theland owner (Kobayashi Pharmaceutical Co., Ltd.) is stipulated according to specific terms under the land lease agreement and the annual rent to be paid is¥80.7 million until August 2014.

-48-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

B. Capital Expenditure(a) Planned capital expenditures
Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the fourteenth fiscal period(November 1, 2011 to April 30, 2012) are as follows. Planned capital expenditure may include portions classified into expenses foraccounting purposes.

Property Name

PurposeSchedule

KDX Hakozaki Building

Air conditioning system construction,

November 2011

(Chuo-ku, Tokyo)

otherto April 2012

Hiei Kudan-Kita Building

Air conditioning system construction,(Chiyoda-ku, Tokyo)

other(Location)

KDX Higashi-Shinagawa Building(Shinagawa-ku, Tokyo)

101

-

-

As above90--

As above73--

As above67--

As above64--

Upgrade of common areas, other

As above

53--

Upgrade of external walls, other

As above47--

As above38--

As above32--

Upgrade of external walls, other

As above28--

Upgrade of elevators, other

As above

23--

Rooftop waterproofing, other

As above

13--

Upgrade of common areas, other

KDX Shinjuku 286 Building

Air conditioning system construction,(Shinjuku-ku, Tokyo)

other

KDX Shinbashi Building

Air conditioning system construction,(Minato-ku, Tokyo)

other

KDX Kayabacho Building(Chuo-ku, Tokyo)
KDX Hon-Atsugi Building(Atsugi, Kanagawa)
KDX Hamamatsucho Dai-2 Building

Air conditioning system construction,(Minato-ku, Tokyo)

otherKitananajo SIA Building

Repair of multi-story parking space,(Sapporo, Hokkaido)

other

KDX Nishi-Shinjuku Building(Shinjuku-ku, Tokyo)
KDX Niigata Building(Niigata, Niigata)
Court Mejiro(Shinjuku-ku, Tokyo)

Planned Amount of Capital Expenditure(Millions of Yen)
Paid in the Fiscal Total Amount
Total
Period Under Previously
ReviewPaid-49-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(b) Capital Expenditures during the Fiscal Period Under Review (fiscal period ended October 31, 2011)
The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review (fiscal period
ended October 31, 2011), the Investment Corporation completed work across its entire portfolio totaling ¥826 million. This total comprisedof ¥674 million in capital expenditures and ¥152 million for repairs, maintenance and renovation expenses.
Property Name

Purpose(Location)
Frame Jinnan-zaka
Kitananajo SIA Building(Sapporo, Hokkaido)
KDX Higashi-Shinjuku Building(Shinjuku-ku, Tokyo)
KDX Hakozaki Building(Chuo-ku, Tokyo)(Millions of Yen)

May 2011 toUpgrade 4th and 5th floor, other(Shibuya-ku, Tokyo)

Amount of Capital Expenditures

Schedule

54

October 2011

Air conditioning system construction, other

As above

53

Upgrade of common areas, other

As above51

Upgrade of common areas, other

As above44

As above23

KDX Sendai Building

Upgrade of fire alarm control panel, repair(Sendai, Miyagi)

of external walls, other
Others447

Portfolio Total

674

Note: The amounts of the capital expenditures are rounded down to the nearest ¥1 million.

(c) 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 flows generated during the period to a reserve for repairs, maintenance and renovation to meet large-scalerenovation over the medium- to long-terms. The following amount has been transferred to the reserve from period cash flows.
( Millions of Yen)
Fiscal period
Reserve for the end of theprevious period
Reserve for the fiscal
period under review
Reversal of reserve for the
fiscal period under review
Reserve brought forward to
the next period

Ninth Fiscal Period

Tenth Fiscal Period

Eleventh Fiscal Period

Twelfth Fiscal Period

Thirteenth Fiscal Period(May 1, 2009 to(November 1, 2009 to(May 1, 2010 to(November 1, 2010 to(May 1, 2011 to

October 31, 2009)

April 30, 2010)

October 31, 2010)

April 30, 2011)

October 31, 2011)

477

469

444

430

440

71

29

10

96

79

54

14

-

19

469

444

430

440

517

-50-

-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

C.
Type

OfficeBuildings

Details of the Tenants
Area

Tokyo
Metropolitan
Area

No.

(As of October 31, 2011)
Property Name

Total Leasable
Floor Area(㎡)(Note 1)

Total No. of
Total No. of
Total Leased
No. ofLeasable
LeasedFloor Area
Tenants
Residential units Residential units(㎡)(Note 2)(Note 5)(Note 3)(Note 4)

Total Rental
Leasehold andOccupancyand Other Operating Security Deposits
Ratio (%）
Revenues(¥thousands) (¥thousands)(Note 6)(Note 7)(Note 8)A-60

KDX Harumi Building

9,294.00

8,261.08

-

-

5

88.9

308,516

496,959

A-40

Toranomon Toyo Building

6,421.29

6,421.29

-

-

12

100.0

299,232

534,705

A-46

Hiei Kudan-Kita Building

6,900.33

6,819.56

-

-

14

98.8

245,807

338,190

A-66

KDX Shinjuku Building

5,887.35

5,887.35

-

-

23

100.0

259,101

374,986

A-37

KDX Ochanomizu Building

5,881.47

5,881.47

-

-

6

100.0

201,929

239,812A-32

KDX Shiba-Daimon Building

5,984.71

5,984.71

-

-

9

100.0

187,277

233,247

A-13

KDX Kojimachi Building

3,792.64

3,792.64

-

-

10

100.0

155,331

231,525

A-1

KDX Nihonbashi 313 Building

5,893.90

5,021.44

-

-

9

85.2

194,089

220,025

A-47

KDX Shin-Yokohama 381 Building

8,131.94

7,565.14

-

-

35

93.0

161,011

246,064

A-16

Toshin 24 Building

6,618.81

6,369.33

-

-

18

96.2

174,216

240,599

A-71

KDX Iidabashi Building

4,429.22

4,429.22

-

-

7

100.0

102,331

267,187

A-17

KDX Ebisu Building

3,077.61

3,077.61

-

-

7

100.0

148,795

229,812A-72

KDX Higashi-Shinagawa Building

7,107.50

7,107.50

7

100.0

110,290271,272

A-3

Higashi-Kayabacho Yuraku Building

4,413.17

4,413.17

-

-

7

100.0

168,664

232,512

A-39

KDX Toranomon Building

1,966.56

1,966.56

-

-

7

100.0

109,613

183,786

A-67

KDX Ginza 1chome Building

3,573.59

3,573.59

-

-

5

100.0

147,365

178,693

A-30

KDX Nishi-Gotanda Building

3,881.58

3,881.58

-

-

5

100.0

155,780

211,542

A-68

KDX Nihonbashi Honcho Building

3,998.39

3,998.39

-

-

7

100.0

160,879

200,469

A-48

KDX Kawasaki-Ekimae Hon-cho Building

5,124.98

5,124.98

-

-

1

100.0

146,819

155,091

A-4

KDX Hatchobori Building

3,323.83

3,323.83

-

-

6

100.0

136,862

148,613

A-18

KDX Omori Building

4,945.03

4,945.03

-

-

10

100.0

164,908

227,454

A-19

KDX Hamamatsucho Building

2,724.35

2,724.35

-

-

8

100.0

108,288

137,148

A-45

KDX Roppongi 228 Building

1,909.08

1,242.01

-

-

6

65.1

42,954

58,188

A-62

Koishikawa TG Building

3,944.26

3,944.26

-

-

5

100.0

134,877

165,511A-29

KDX Higashi-Shinjuku Building

5,928.76

4,937.70

-

-

6

83.3

139,290132,030

A-20

KDX Kayabacho Building

3,019.95

3,019.95

-

-

5

100.0

121,344

190,438

A-56

KDX Jimbocho Building

2,321.80

2,321.80

-

-

3

100.0

62,28096,431

A-49

Nissou Dai-17 Building

2,739.62

2,366.99

-

-

5

86.4

58,66865,196A-73

KDX Hakozaki Building

3,992.60

3,325.77

6

83.3

58,971

158,053

A-21

KDX Shinbashi Building

1,696.62

1,696.62

6

100.0

98,188129,117

A-63

Gotanda TG Building

3,169.57

2,535.34

-

-

8

80.0

71,802

116,723

A-5

KDX Nakano-Sakaue Building

4,389.65

3,690.82

18

17

23

84.1

95,20385,091A-22

KDX Shin-Yokohama Building

4,802.64

4,472.68

-

-

18

93.1

84,990154,004--

A-6

Harajuku F.F. Building

3,068.36

3,068.36

-

-

3

100.0

111,557

169,103

A-50

Ikejiri-Oohashi Building

2,449.11

1,344.40

-

-

5

54.9

53,27051,708A-27

KDX Kajicho Building

2,564.11

2,564.11

-

-

10

100.0

82,966

100,026

A-51

KDX Hamacho Nakanohashi Building

2,240.08

2,240.08

-

-

9

100.0

69,90488,079A-15

KDX Hamacho Building

3,106.00

2,951.38

-

-

8

95.0

92,653

137,537

A-41

KDX Shinjuku 286 Building

2,444.43

2,444.43

-

-

9

100.0

85,687

103,971

A-74

KDX Shin-Nihonbashi Building

2,658.79

2,658.79

10

100.0

47,320111,936

A-7

FIK Minami Aoyama

1,814.56

1,814.56

-

-

9

100.0

65,547103,752

A-14

KDX Funabashi Building

3,867.34

3,817.08

-

-

20

98.7

102,992

126,134

A-61

KDX Hamamatsucho Dai-2 Building

1,953.50

1,953.50

-

-

8

100.0

69,85596,164

A-55

Shin-toshin Maruzen Building

1,922.79

1,562.09

-

-

4

81.2

55,78485,798A-64

KDX Nihonbashi 216 Building

1,615.20

1,615.20

-

-

8

100.0

53,339100,833-51-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

Residential
Properties

Other
Regional
Areas

Property Name

Total Leasable
Floor Area(㎡)(Note 1)

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

4

100.0

69,638A-57

KDX Gobancho Building

1,650.58

1,650.58

-

-

7

100.0

45,87754,678A-8

Kanda Kihara Building

1,947.40

1,947.40

-

-

9

100.0

66,251

130,723

A-23

KDX Yotsuya Building

2,530.71

2,530.71

-

-

4

100.0

93,992

142,123

A-59

KDX Iwamoto-cho Building

1,524.44

1,524.44

3

3

10

100.0

47,27951,509A-26

KDX Kiba Building

2,450.90

2,450.90

-

-

7

100.0

67,53780,731A-38

KDX Nishi-Shinjuku Building

1,598.06

1,598.06

-

-

7

100.0

46,916

62,173A-31

KDX Monzen-Nakacho Building

2,010.48

2,010.48

-

-

5

100.0

46,02753,367

A-52

KDX Kanda Misaki-cho Building

1,334.76

1,334.76

-

-

8

100.0

34,56245,898A-34

KDX Hon-Atsugi Building

2,747.28

2,747.28

-

-

10

100.0

61,41087,259A-35

KDX Hachioji Building

2,178.61

2,178.61

-

-

8

100.0

48,42047,023

A-28

KDX Nogizaka Building

1,250.76

1,250.76

1

1

6

100.0

21,23034,580A-58

KDX Nagoya Sakae Building

6,923.12

6,923.12

-

-

16

100.0

174,157

213,436

A-12

Portus Center Building

11,581.93

10,436.31

-

-

26

90.1

301,891

355,914

A-42

Karasuma Building

8,744.97

8,673.75

-

-

40

99.2

214,102

280,032

A-53

KDX Hakata-Minami Building

10,038.54

7,956.63

-

-

45

79.3

140,148

181,726

A-69

KDX Kobayashi-Doshomachi Building

7,072.24

6,762.62

-

-

12

95.6

185,993

247,846

A-54

KDX Kitahama Building

3,993.67

3,371.43

-

-

8

84.4

78,35374,960A-44

KDX Sendai Building

3,957.61

3,457.39

-

-

27

87.4

91,877

182,945

A-70

Kitananajo SIA Building

3,788.73

3,788.73

-

-

19

100.0

99,781

108,602

A-24

KDX Minami Semba Dai-1 Building

3,108.16

2,944.94

-

-

11

94.7

58,80172,731

A-25

KDX Minami Semba Dai-2 Building

2,693.37

2,538.67

-

-

22

94.3

53,39842,532

A-36

KDX Niigata Building

4,061.95

2,624.43

-

-

19

64.6

49,99450,39694.3

7,804,212

10,942,128

100.0

148,551

50,580269,971.88

254,652.28

22

21

742
(Note 9)1(Note 10)

115,397

B-19

Residence Charmante Tsukishima

7,711.14

7,711.14

140

140

B-3

Court Mejiro

2,046.79

2,046.79

20

20

20

100.0

40,262

15,717100.0

32,641

10,028

B-34

Gradito Kawaguchi

1,619.34

1,619.34

66

66

2(Note 11)

B-18

Venus Hibarigaoka

12,829.64

12,761.14

159

158

124

99.5

93,77826,00424,206.91

24,138.41

385

384

147

99.7

315,234

102,329

Subtotal of Residential Properties (4 properties)
CentralTokyo
Urban
Metropolitan
RetailArea
Properties

Total Rental
Leasehold andOccupancyand Other Operating Security Deposits
Ratio (%）
Revenues(¥thousands) (¥thousands)(Note 6)(Note 7)(Note 8)

No.

Subtotal of Office Buildings (68 properties)

Tokyo
Metropolitan
Area

Total No. of
Total No. of
Total Leased
No. ofLeasable
LeasedFloor Area
Tenants
Residential units Residential units(㎡)(Note 2)(Note 5)(Note 3)(Note 4)

C-1

Frame Jinnan-zaka

4,655.96

4,164.88

-

-

12

89.5

258,559

272,072

C-2

KDX Yoyogi Building

1,182.14

1,182.14

-

-

11

100.0

67,645

108,150

Subtotal of Central Urban Retail Properties (2 properties)

5,838.10

5,347.02

-

-

23

91.6

326,205

380,223

Total of 74 properties

300,016.89

284,137.71

407

405

912
(Note 9 )94.7

8,445,652

11,424,681

Occupancy Ratio over the Past Five Years
April 30, 2007

95.9%

October 31, 2007

96.9%

April 30, 2008

95.9%

October 31, 2008

95.6%

April 30, 2009

95.7%

October 31, 2009

94.7%

April 30, 2010

94.4%

October 31, 2010

93.6%

April 30, 2011

94.6%

October 31, 2011

94.7%

-52-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Notes:
1. Total leasable floor area refers to the leasable floor area for each Property including the 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.
2. Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
3. The total number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential purposes.
4. The total number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end
tenants or sub-lease agreements are singed.
5. The total number of tenants refers to the actual number of end tenants for each property. However, for Residence Charmante Tsukishima, please refer to Note10, and for Gradito Kawaguchi, please refer to Note 11.
6. The occupancy ratio is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place.
7. Total rental and other operating revenues cover all income, including that from rental revenue, common charges, and parking space rental revenues, rounded
to the nearest one thousand yen. Total real estate business rental revenues refers to the total amount of revenues generated during the fiscal period underreview from real estate rental operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
(Reference) Total operating rental and other revenues for one office building sold during the Thirteenth Fiscal Period
No.

Property Name

Total Rental and Other Operating Revenues (¥thousands)

A-2

KDX Hirawakacho Building

53,297

8. Guarantee 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.
9. The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.
10. Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-term lease: until January 30, 2014) 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.
11. Gradito Kawaguchi: Because the master lessor and Haseko Livenet Inc. have concluded a rental guarantee (fixed-term lease: until March 31, 2012) building
lease contract for dwelling units (excluding first-floor shops), the total number of tenants is indicated as 2.

D. Information concerning major real estate properties
There were no major real estate properties with real estate business rental revenues exceeding 10% of total real estate business rental revenues forthe thirteenth fiscal period (fiscal period ended October 31, 2011).
E. Information concerning major tenants(a) Tenant which holds more than 10% of the total leased area: None(b) Reference: Major end tenants(As of October 31, 2011)
Name of End Tenant

Property Name

1

Sekiwa Real Estate, Ltd.

Residence Charmante Tsukishima

2

NTT Data Corporation (Note 2)

KDX Harumi Building, KDX Higashi-Shinjuku Building

3

N / A (Note 3)

4

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5

Kodak Japan Ltd.

KDX Kawasaki-Ekimae Hon-cho Building
Toranomon Toyo Building, Harajuku F.F. Building,
KDX Yoyogi Building
KDX Monzen Nakacho Building,
KDX Ochanomizu Building

Subtotal

Leased Floor
Area

Percentage of Total Leased Floor
Area (Note 1)

7,711.14 ㎡

2.7％

5,185.96 ㎡(Note 2)

1.8％

5,124.98 ㎡

1.8％

3,478.05 ㎡

1.2％

3,121.83 ㎡

1.1％

24,621.96 ㎡

8.7％

Portfolio Total
284,137.71 ㎡
100.0％
Notes:
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 the nearest
first decimal place.
2. As of December 19, 2011, the tenant has already vacated from KDX Harumi Building (4,307.60 m2).
3. Not disclosed due to the tenants’ request.

-53-

a0601

a0401

a0461

a0661

a0371

a0321

a0131

a0011

a0471

a0161

【Reference】

Earnings Performance for the Individual Properties for the 13th Fiscal Period (May 1, 2011 to October 31, 2011)：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A60

Property Name

KDX Harumi
Building

Toranomon Toyo Hiei Kudan-Kita
Building
Building

Acquisition Date

June 30, 2008

June 1, 2007 February 1, 2008 February 18, 2010 April 2, 2007 March 1, 2007 November 1, 2005 August 1, 2005 February 1, 2008 May 1, 2006

Price Information

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)

A40

A46

A66

A37

KDX Shinjuku
Building

KDX
Ochanomizu
Building

A32

A13

A01

a0711

KDX ShibaKDX Kojimachi KDX Nihonbashi
Daimon Building
Building
313 Building

a0171

a0721

a0031

a0391

a0671

※As of October 31, 2011

A47

A16

A71

A17

A72

KDX ShinYokohama 381
Building

Toshin 24
Building

KDX Iidabashi
Building

KDX Ebisu
Building

KDX HigashiShinagawa
Building

A03

A39

A67

July 22, 2011 August 1, 2005 April 17, 2007 November 12, 2010

HigashiKDX Toranomon
KDX Ginza
Kayabacho
Building
1chome Building
Yuraku Building

July 22, 2011

May 1, 2006

10,250
4.0%
9,778
8,450
3.7%
5
9,294.00
8,261.08

9,850
3.9%
9,859
10,1004.4%
126,421.29
6,421.29

7,600
3.0%
7,579
7,530
3.3%
14
6,900.33
6,819.56

6,800
2.7%
6,887
6,620
2.9%
23
5,887.35
5,887.35

6,400
2.5%
6,663
6,400
2.8%
6
5,881.47
5,881.47

6,090
2.4%
6,221
5,010
2.2%
9
5,984.71
5,984.71

5,950
2.3%
5,646
4,410
1.9%
10
3,792.64
3,792.64

5,940
2.3%
6,130
6,920
3.0%
9
5,893.90
5,021.44

5,800
2.3%
5,888
4,140
1.8%
35
8,131.94
7,565.14

5,300
2.1%
5,156
4,200
1.8%
18
6,618.81
6,369.33

4,670
1.8%
4,706
4,830
2.1%
7
4,429.22
4,429.22

4,640
1.8%
4,576
4,260
1.8%
7
3,077.61
3,077.61

4,590
1.8%
4,763
4,800
2.1%
7
7,107.50
7,107.50

4,450
1.7%
4,373
5,220
2.3%
7
4,413.17
4,413.17

4,400
1.7%
4,804
3,640
1.6%
7
1,966.56
1,966.56

4,300
1.7%
4,312
4,740
2.1%
5
3,573.59
3,573.59

88.9%
98.2%
98.2%
98.2%
100.0%
100.0%
100.0%-

100.0%
100.0%
95.4%
93.9%
95.4%
100.0%
100.0%
99.1%
97.5%
-

98.8%
95.9%
85.3%
91.9%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
93.7%
93.8%
-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
90.2%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
97.3%
100.0%
100.0%
100.0%
100.0%
100.0%
93.0%

100.0%
100.0%
91.9%
97.1%
86.7%
88.6%
98.2%
98.2%
97.1%
97.1%

85.2%
71.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
98.9%

93.0%
89.5%
100.0%
100.0%
100.0%
92.1%
97.5%
94.6%
-

96.2%
84.7%
72.7%
84.1%
93.3%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%-

100.0%
100.0%
83.4%
100.0%
100.0%
83.4%
100.0%
100.0%
100.0%
100.0%

100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.1%

100.0%
100.0%
100.0%
100.0%
89.3%
78.6%
78.6%
100.0%
100.0%
0.0%

100.0%
100.0%-

Occupancy ratio
Lease Information

As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Income and Retained Earnings Information for the 13th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days102days184days102days184days184days184days①Rental and other operating revenues (\ Thousands)

308,516

299,232

245,807259,101

201,929

187,277

155,331

194,089

161,011

174,216

102,331

148,795

110,290

168,664

109,613

147,365

Rental revenues

279,572

286,593

219,056

224,069

192,195

172,110132,177

175,240

136,419

143,871

82,856

129,578

94,807

147,604

102,923

132,715

Other operating revenues

28,943

12,63926,75135,032

9,734

15,16723,153

18,84824,591

30,345

19,474

19,217

15,482

21,0606,690

14,65089,011

68,161

87,274

83,09541,99744,962

44,18260,15650,631

56,96817,57834,675

21,53834,84922,38434,706

Property management fees

36,10020,77030,01323,152

12,461

15,86010,83815,72913,565

17,258

7,312

10,225

11,043

13,233

6,703

9,652

Taxes

19,59829,191

26,71430,03915,686

12,117

18,03020,857

13,78012,9240

11,349

6

9,689

9,936

13,211

Utilities

28,04814,81318,746

21,8109,802

13,044

11,07011,99013,976

16,7138,584

10,523

9,609

8,053

3,961

7,888

Repairs and maintenance costs

1,965

1,152

5,305

3,789

680

487

2,956

1,404

7,580

3,946

1,160

1,233

246

378

381

108

425

283

369

358

262

233

190

277

321

289

90

147

146

190

79

151

Trust fees and other expenses

2,873

1,949

6,123

3,944

3,104

3,220

1,095

9,898

1,406

5,836

430

1,196

485

3,304

1,321

3,693

③ＮＯＩ （＝①-②） (\ Thousands)

219,504

231,071

158,533

176,006

159,931

142,315

111,148

133,932

110,380

117,247

84,752

114,12088,751

133,81487,229112,659④Depreciation (\ Thousands)

77,13012,17914,791

15,334

26,73328,746

20,52428,30946,61734,873

10,27918,674

13,52827,206

13,204

11,253⑤Rental operating income （＝③-④） (\ Thousands)

142,374

218,892

143,741

160,671

133,197

113,568

90,624

105,622

63,76282,37474,473

95,44675,222

106,608

74,024

101,405②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)

10,493

4,635

471

30,713526

16,2391,055

11,55535,67142,4084,034

31,174

-

896

1,386

785

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

209,011

226,435

158,062

145,292

159,405

126,075

110,093

122,377

74,70874,83980,717

82,94588,751

132,918

85,843111,874

Expense ratio （＝②／①）

28.9%
39,197
10,874
3.52%

22.8%
58,382
10,822
3.62%

35.5%
53,428
8,251
3.36%

32.1%
60,067
8,956
3.46%

20.8%
31,372
7,384
3.66%

24.0%
24,237
6,726
3.59%

28.4%
36,060
5,438
3.50%

31.0%
41,712
6,729
3.47%

31.4%
27,561
5,837
3.63%

32.7%
25,845
6,070
3.48%

17.2%
23,430
3,818
3.73%

23.3%
22,699
5,365
3.61%

19.5%
35,756
4,062
3.68%

20.7%
19,378
6,173
3.66%

20.4%
19,872
4,017
3.66%

23.6%
26,415
5,306
3.60%

110,320
9,193

260,050
21,670296,707
24,725362,230
30,185

323,470
26,955

169,180
14,098

180,970
15,080214,470
17,872

216,990
18,082

217,670
18,139117,560
9,796

147,940
12,328

256,450
21,370107,050
8,920

70,4005,866

80,6906,724

Property tax for the year 2011(\ Thousands)
Reference

Among ② of property management fee (Leasing management fees) (\ Thousands)

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

-54-

a0301

a0681

a0481

a0041

a0181

a0191

a0451

a0621

a0291

a0201

【Reference】

Earnings Performance for the Individual Properties for the 13th Fiscal Period (May 1, 2011 to October 31, 2011)：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A18

A19

A45

Property NameKDX KawasakiKDX NishiKDX Nihonbashi
KDX Hatchobori
Ekimae Hon-cho
Gotanda Building Honcho Building
Building
Building

A30

KDX Omori
Building

KDX
Hamamatsucho
Building

KDX Roppongi
228 Building

Acquisition Date

December 1, 2006 November 12, 2010 February 1, 2008 August 1, 2005

May 1, 2006

Price Information

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)

A68

A48

A04

A62

A29

a0561

a0491

a0731

a0211

a0631

a0051

※As of October 31, 2011

A20

A56

A49

A73

A21

A63

A05

KDX Jimbocho
Building

Nissou Dai-17
Building

KDX Hakozaki
Building

KDX Shinbashi
Building

Gotanda TG
Building

KDX NakanoSakaue Building

May 1, 2006 January 10, 2008 November 18, 2009 September 1, 2006 May 1, 2006 March 31, 2008 February 1, 2008 July 22, 2011

May 1, 2006

Koishikawa TG
KDX Higashi- KDX Kayabacho
Building
Shinjuku Building
Building

November 18, 2009 August 1, 2005

4,200
1.6%
4,073
3,800
1.6%
5
3,881.58
3,881.58

4,000
1.6%
4,016
4,330
1.9%
7
3,998.39
3,998.39

3,760
1.5%
3,817
3,410
1.5%
1
5,124.98
5,124.98

3,680
1.4%
3,357
3,420
1.5%
6
3,323.83
3,323.83

3,500
1.4%
3,385
3,790
1.6%
10
4,945.03
4,945.03

3,460
1.4%
3,263
3,180
1.4%
8
2,724.35
2,724.35

3,300
1.3%
3,436
2,160
0.9%
6
1,909.08
1,242.01

3,080
1.2%
3,147
3,330
1.4%
5
3,944.26
3,944.26

2,950
1.2%
3,208
3,320
1.4%
6
5,928.76
4,937.70

2,780
1.1%
2,829
2,880
1.2%
5
3,019.95
3,019.95

2,760
1.1%
2,910
1,860
0.8%
3
2,321.80
2,321.80

2,710
1.1%
2,632
1,590
0.7%
5
2,739.62
2,366.99

2,710
1.1%
2,825
2,850
1.2%
6
3,992.60
3,325.77

2,690
1.1%
2,651
2,850
1.2%
6
1,696.62
1,696.62

2,620
1.0%
2,823
2,660
1.2%
8
3,169.57
2,535.34

2,533
1.0%
2,457
2,330
1.0%
23
4,389.65
3,690.82

100.0%
100.0%
100.0%
100.0%
100.0%
91.9%
100.0%
100.0%
100.0%
73.7%

100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
93.1%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
94.5%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
87.7%
75.4%
100.0%
100.0%
100.0%

65.1%
65.1%
65.1%
65.1%
52.4%
65.2%
78.0%
80.4%
-

100.0%
100.0%
100.0%
100.0%-

83.3%
100.0%
100.0%
100.0%
100.0%
97.0%
86.2%
82.2%
92.6%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
84.9%

100.0%
74.8%
94.4%
85.0%
100.0%
100.0%
59.8%
0.0%
-

86.4%
86.4%
94.9%
94.9%
100.0%
100.0%
100.0%
100.0%-

83.3%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

80.0%
80.0%
77.1%
57.8%
-

84.1%
100.0%
96.5%
100.0%
91.3%
92.3%
96.5%
100.0%
100.0%
100.0%

Occupancy ratio
Lease Information

As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Income and Retained Earnings Information for the 13th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days102days184days184days184days①Rental and other operating revenues (\ Thousands)

155,780

160,879

146,819

136,862

164,908108,288

42,954

134,877

139,290

121,344

62,28058,66858,971

98,18871,802

95,203

Rental revenues

133,194

137,076

134,066

118,613

144,729

98,04038,418

117,986

123,567

110,804

56,68350,182

54,21990,47664,62983,619Other operating revenues

22,58523,802

12,753

18,24920,178

10,2484,535

16,891

15,723

10,539

5,596

8,485

4,752

7,712

7,173

11,58432,02940,51239,33833,601

48,48527,99017,37340,42244,894

23,511

22,491

22,073

10,942

28,23325,51742,609Property management fees

12,211

10,66013,846

12,634

16,980

7,890

4,781

15,187

13,753

9,068

4,994

7,428

4,119

7,322

7,352

9,693

Taxes

9,547

15,149

7,736

9,346

13,006

9,531

7,682

10,672

14,370

6,672

7,242

5,542

4

10,415

8,994

8,062

Utilities

8,675

5,295

16,154

9,572

16,342

6,218

4,505

11,596

13,567

6,026

4,272

5,984

5,373

5,968

6,139

6,203

Repairs and maintenance costs

1,113

190

615

701

1,124

1,904

209

1,663

1,260

762

1,433

1,666

807

3,519

1,702

17,186②Property-related expenses (\ Thousands)

Insurance

176

156

211

170

247

111

71

202

260

127

95

132

105

99

153

211

Trust fees and other expenses

304

9,060

774

1,175

783

2,333

122

1,100

1,682

854

4,453

1,318

531

906

1,175

1,250

③ＮＯＩ （＝①-②） (\ Thousands)

123,751

120,366

107,481

103,261

116,42280,29825,581

94,454

94,395

97,83239,78836,59548,02969,95446,28452,594④Depreciation (\ Thousands)

29,507

9,116

30,56016,97125,45622,524

4,918

14,262

19,071

16,184

10,315

15,53012,1385,646

12,736

17,551⑤Rental operating income （＝③-④） (\ Thousands)

94,243111,249

76,92086,28990,966

57,773

20,66280,19175,324

81,64829,47321,06435,89064,30833,54835,043⑥Capital expenditures (\ Thousands)

10,531

1,068

4,792

2,935

15,408

981

1,271

7,802

51,775

7,024

5,741

2,400

44,943361

23,76723,730⑦ＮＣＦ （＝③-⑥） (\ Thousands)

113,220

119,298

102,689

100,326

101,01479,31724,31086,652

42,61990,80834,04734,195

3,085

69,59322,51728,864

Expense ratio （＝②／①）

20.6%
19,093
5,704
3.66%

25.2%
30,289
5,811
3.61%

26.8%
15,469
5,189
3.53%

24.6%
18,693
4,900
3.58%

29.4%
26,012
5,741
3.48%

25.8%
19,063
3,920
3.62%

40.4%
15,363
1,398
3.26%

30.0%
21,340
4,680
3.47%

32.2%
28,744
4,772
3.43%

19.4%
13,344
4,472
3.69%

36.1%
14,483
2,083
3.34%

37.6%
11,081
1,944
3.31%

18.6%
25,911
2,201
3.73%

28.8%
20,832
3,721
3.79%

35.5%
17,982
2,413
3.36%

44.8%
16,124
3,633
3.82%

133,200
11,10082,1806,848

446,967
37,247

158,190
13,182

317,870
26,489135,060
11,25554,6804,556

230,330
19,194

149,280
12,440120,000
10,00098,3998,199

88,4807,373

255,430
21,285111,266
9,272

207,750
17,312

141,400
11,783

Property tax for the year 2011(\ Thousands)
Reference

Among ② of property management fee (Leasing management fees) (\ Thousands)

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

-55-

a0221

a0061

a0501

a0271

a0511

a0151

a0411

a0741

a0071

a0141

【Reference】

Earnings Performance for the Individual Properties for the 13th Fiscal Period (May 1, 2011 to October 31, 2011)：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0611

a0551

Property No.

A22

A06

A50

A27

A51

A15

A41

A74

A07

A14

A61

Property NameKDX ShinYokohama
Building

Harajuku F.F.
Building

Ikejiri-Oohashi
Building

KDX Kajicho
Building

KDX Hamacho
Nakanohashi
Building

KDX Hamacho
Building

KDX Shinjuku
286 Building

KDX ShinNihonbashi
Building

FIK Minami
AoyamaKDX Funabashi
Building

KDX
Hamamatsucho
Dai-2 Building

Acquisition Date

May 1, 2006 August 1, 2005 February 1, 2008

Price Information

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)July 3, 2006 February 1, 2008 March 16, 2006 June 1, 2007

a0641

a0331

a0571

a0081

※As of October 31, 2011

A55

A64

Shin-toshin
KDX Nihonbashi
Maruzen Building 216 Building

A33

A57

A08

KDX
Okachimachi
Building

KDX Gobancho
Building

Kanda Kihara
Building

July 22, 2011 August 1, 2005 March 1, 2006 September 1, 2008 February 29, 2008 December 1, 2009 March 1, 2007 March 31, 2008 August 1, 2005

2,520
1.0%
2,467
2,280
1.0%
18
4,802.64
4,472.68

2,450
1.0%
2,451
2,950
1.3%
3
3,068.36
3,068.36

2,400
0.9%
2,462
1,570
0.7%
5
2,449.11
1,344.40

2,350
0.9%
2,398
2,320
1.0%
10
2,564.11
2,564.11

2,310
0.9%
2,357
1,700
0.7%
9
2,240.08
2,240.08

2,300
0.9%
2,260
2,360
1.0%
8
3,106.00
2,951.38

2,300
0.9%
2,333
2,120
0.9%
9
2,444.43
2,444.43

2,300
0.9%
2,315
2,480
1.1%
10
2,658.79
2,658.79

2,270
0.9%
2,252
2,150
0.9%
9
1,814.56
1,814.56

2,252
0.9%
2,416
1,950
0.8%
20
3,867.34
3,817.08

2,200
0.9%
2,257
1,850
0.8%
8
1,953.50
1,953.50

2,110
0.8%
2,161
1,610
0.7%
4
1,922.79
1,562.09

2,010
0.8%
1,981
1,930
0.8%
8
1,615.20
1,615.20

2,000
0.8%
2,126
1,830
0.8%
4
1,792.54
1,792.54

1,951
0.8%
1,987
1,530
0.7%
7
1,650.58
1,650.58

1,950
0.8%
1,856
1,870
0.8%
9
1,947.40
1,947.40

93.1%
93.1%
74.0%
86.3%
93.1%
93.1%
83.2%
100.0%
99.6%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

54.9%
74.4%
91.3%
100.0%
91.3%
82.6%
100.0%
91.3%-

100.0%
100.0%
84.2%
75.1%
94.3%
100.0%
100.0%
100.0%
85.8%
100.0%

100.0%
100.0%
93.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

95.0%
100.0%
93.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%-

100.0%
100.0%
100.0%
77.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

98.7%
100.0%
98.5%
100.0%
100.0%
100.0%
98.4%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
87.5%
100.0%
100.0%
100.0%-

81.2%
100.0%
100.0%
100.0%
100.0%
64.3%
80.9%
100.0%-

100.0%
100.0%
75.0%
87.5%
-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.7%
100.0%
100.0%

100.0%
100.0%
85.7%
85.7%
85.7%
100.0%
85.7%
100.0%-

100.0%
93.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Occupancy ratio
Lease Information

As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Income and Retained Earnings Information for the 13th Fiscal Period

Operating periods

184days184days184days184days184days184days184days102days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

84,990111,557

53,27082,966

69,904

92,65385,68747,32065,547

102,992

69,85555,78453,33969,63845,877

66,251

Rental revenues

72,980101,982

43,03674,93759,48883,53872,27935,25860,44489,74061,14045,26647,206

61,10741,31560,912Other operating revenues

12,010

9,575

10,234

8,029

10,415

9,114

13,40812,062

5,103

13,251

8,714

10,517

6,132

8,531

4,561

5,338

28,72745,335

17,71019,964

19,39025,86324,786

12,287

17,191

31,371

19,17820,143

15,55817,05911,934

19,203

Property management fees

12,135

10,183

5,670

7,338

7,024

9,000

7,275

4,367

4,994

12,971

4,979

6,158

5,241

5,941

4,542

6,272

Taxes

7,064

8,522

6,606

5,567

5,820

7,452

8,528

-

5,911

7,852

8,516

4,842

4,819

3,228

4,311

4,250

Utilities

7,597

6,339

3,728

5,026

4,256

5,600

7,025

3,269

4,223

7,669

4,140

3,583

3,208

4,575

2,774

4,796

Repairs and maintenance costs

642

18,051

842

1,037

560

1,692

849

1,477

346

2,204

517

4,679

1,182

1,361

185

2,944

Insurance

186

128

113

103

116

139

121

61

69

184

78

82

70

62

61

76

Trust fees and other expenses

1,101

2,109

749

891

1,613

1,978

986

3,112

1,648

488

946

797

1,036

1,890

60

863

③ＮＯＩ （＝①-②） (\ Thousands)

56,262

66,22135,56063,00150,513

66,78960,90035,032

48,35571,621

50,67635,64137,781

52,57833,94347,047④Depreciation (\ Thousands)

21,8379,500

10,926

12,525

11,964

21,173

7,753

14,337

6,361

19,364

4,415

7,696

11,225

7,978

10,326

9,258⑤Rental operating income （＝③-④） (\ Thousands)

34,42456,72024,63450,47638,54945,61653,147

20,69541,99452,256

46,26027,94426,55544,60023,61637,789⑥Capital expenditures (\ Thousands)

5,856

15,254

1,528

7,133

4,026

8,244

1,137

2,197

1,148

5,948

368

8,910

-

600

268

2,512

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

50,40550,96634,03255,86846,48758,54559,763

32,83547,20765,67250,30826,73037,781

51,97833,67544,534

Expense ratio （＝②／①）

33.8%
14,127
2,882
3.39%

40.6%
17,045
4,241
3.80%

33.2%
13,212
1,812
3.40%

24.1%
11,135
2,978
3.59%

27.7%
11,640
2,457
3.52%

27.9%
14,905
3,253
3.51%

28.9%
17,056
2,991
3.49%

26.0%
15,654
1,680
3.55%

26.2%
11,822
2,324
3.55%

30.5%
15,709
3,563
3.46%

27.5%
17,031
2,459
3.52%

36.1%
10,296
2,072
3.71%

29.2%
9,638
1,859
3.49%

24.5%
6,454
2,494
3.58%

26.0%
8,620
1,628
3.55%

29.0%
8,498
2,419
3.65%

152,030
12,669160,510
13,375

158,270
13,18987,5907,299

130,030
10,835

134,170
11,180169,080
14,090102,390
8,532

71,790
5,982

160,670
13,38981,7106,809

70,9005,908

31,1902,599

64,4005,366

55,2304,602

80,4306,702②Property-related expenses (\ Thousands)

Property tax for the year 2011(\ Thousands)
Reference

Among ② of property management fee (Leasing management fees) (\ Thousands)

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

-56-

a0231

a0591

a0261

a0381

a0311

a0521

a0341

a0351

a0281

a0581

【Reference】

Earnings Performance for the Individual Properties for the 13th Fiscal Period (May 1, 2011 to October 31, 2011)：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0121

a0421

a0531

A59

A26

Property NameKDX Iwamotocho Building

KDX Kiba
Building

Acquisition Date

May 1, 2006

May 1, 2008

1,950
0.8%
1,989
2,460
1.1%
4
2,530.71
2,530.71

1,864
0.7%
1,808
1,340
0.6%
10
1,524.44
1,524.44

1,580
0.6%
1,572
1,580
0.7%
7
2,450.90
2,450.90

1,500
0.6%
1,526
1,170
0.5%
7
1,598.06
1,598.06

1,400
0.5%
1,412
1,260
0.5%
5
2,010.48
2,010.48

1,380
0.5%
1,377
976
0.4%
8
1,334.76
1,334.76

1,305
0.5%
1,183
1,070
0.5%
10
2,747.28
2,747.28

1,155
0.5%
1,289
821
0.4%
8
2,178.61
2,178.61

1,065
0.4%
1,123
718
0.3%
6
1,250.76
1,250.76

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
75.0%
100.0%
92.7%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.0%
100.0%
100.0%

100.0%
87.6%
87.6%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
84.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
84.4%
100.0%

100.0%
86.9%
86.9%
100.0%
100.0%
100.0%
100.0%
86.9%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.6%
100.0%
100.0%
100.0%

100.0%
100.0%
96.4%
100.0%
85.6%
85.6%
85.6%
85.6%
85.6%
96.4%

100.0%
56.2%
78.1%
78.1%
100.0%
87.7%
100.0%
100.0%
87.7%
100.0%

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

93,99247,27967,537

46,91646,02734,562

61,41048,42021,230174,157

301,891

214,102

Rental revenues

85,44944,49460,293

41,15438,81132,28153,663

41,372

17,973

150,677

238,344

180,399

Other operating revenues

8,542

2,785

7,244

5,762

7,215

2,280

7,747

7,048

3,257

23,48063,54622,8709,568

16,204

14,792

14,3829,430

18,99920,11012,69757,729Property management fees

9,162

3,854

5,955

4,660

4,472

3,765

6,486

10,283

2,918

Taxes

6,591

3,126

5,012

4,567

3,322

2,654

3,912

4,229

Utilities

5,218

2,246

4,253

3,635

4,605

2,095

4,956

Repairs and maintenance costs

1,027

90

59

787

602

393

1,078

Price Information

A23
KDX Yotsuya
Building

Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)

a0541

a0441

Other Regional Areas

Property No.

Acquisition price (\ Millions)a0691※As of October 31, 2011

A38

A31

A52

A34

A35

A28

A58

A12

A42

A53

A69

A54

A44

KDX Kanda
Misaki-cho
Building

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX Nogizaka
Building

KDX Nagoya
Sakae Building

Portus Center
Building

Karasuma
Building

KDX HakataMinami Building

KDX KobayashiDoshomachi
Building

KDX Kitahama
Building

KDX Sendai
Building

June 20, 2006 April 2, 2007 January 19, 2007 February 1, 2008 March 1, 2007 March 1, 2007 July 14, 2006

July 1, 2009

September 21, 2005

7,550
3.0%
7,564
4,730
2.1%
16
6,923.12
6,923.12

5,570
2.2%
4,638
4,590
2.0%
26
11,581.93
10,436.31

5,400
2.1%
5,410
5,020
2.2%
40
8,744.97
8,673.75

4,900
1.9%
4,798
3,490
1.5%
45
10,038.54
7,956.63

2,870
1.1%
2,795
2,920
1.3%
12
7,072.24
6,762.62

2,220
0.9%
2,207
1,510
0.7%
8
3,993.67
3,371.43

2,100
0.8%
2,172
1,440
0.6%
27
3,957.61
3,457.39

100.0%
93.7%
90.3%
90.3%
72.3%
-

90.1%
95.8%
93.9%
88.5%
88.5%
93.4%
100.0%
100.0%
94.6%
97.1%

99.2%
94.2%
93.2%
93.9%
86.1%
93.0%
98.1%
98.6%
100.0%
-

79.3%
75.4%
80.6%
86.2%
94.4%
95.8%
95.4%
95.4%
-

95.6%
91.0%
-

84.4%
92.8%
96.4%
96.4%
96.4%
100.0%
88.1%
88.1%
-

87.4%
99.1%
98.7%
92.8%
96.6%
91.2%
86.2%
93.7%
97.1%
-

184days184days184days184days

140,148

185,993

78,35391,877

120,941

166,065

63,15575,56733,703

19,207

19,927

15,197

16,310131,042

70,33648,93686,354

28,86338,012

17,12374,822

21,026

13,98016,156

7,691

12,744

3,501

22,54625,502

21,77010,07012,716

5,227

7,439

4,081

2,406

15,84023,776

19,486

19,407

14,440

9,268

6,271

603

583

395

3,376

3,210

700

37

752

10,019KDX NishiKDX MonzenShinjuku Building Nakacho Building

June 1, 2007 February 1, 2008 December 1, 2010 February 1, 2008 June 1, 2007

Occupancy ratio
Lease Information

As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Income and Retained Earnings Information for the 13th Fiscal Period②Property-related expenses (\ Thousands)

Insurance

107

53

95

70

90

54

126

86

52

322

2,256

374

390

337

151

183

Trust fees and other expenses

763

197

828

1,072

1,289

466

2,438

825

3,234

1,502

1,307

4,467

4,387

42,666

5,772

1,354

③ＮＯＩ （＝①-②） (\ Thousands)

71,121

37,71051,33332,12331,64425,13142,411

28,3108,533

116,428

170,849

143,766

91,212

99,63849,48953,865④Depreciation (\ Thousands)

10,17913,087

13,166

6,299

9,495

4,524

24,761

9,914

5,661

71,27754,014

29,41533,41852,911

19,66918,456⑤Rental operating income （＝③-④） (\ Thousands)

60,942

24,62338,16625,824

22,14920,607

17,64918,3962,871

45,151

116,834

114,350

57,793

46,727

29,82035,408⑥Capital expenditures (\ Thousands)

1,293

667

4,670

1,525

1,260

588

5,514

5,164

3,923

4,556

10,456

8,308

11,469

1,656

1,927

23,038⑦ＮＣＦ （＝③-⑥） (\ Thousands)

69,82837,043

46,66330,59830,38424,54336,897

23,146

4,609

111,872

160,393

135,457

79,742

97,982

47,56230,826

Expense ratio （＝②／①）

24.3%
13,183
3,369
3.59%

20.2%
6,251
1,734
3.67%

24.0%
10,024
2,425
3.59%

31.5%
9,131
1,613
3.44%

31.2%
6,640
1,585
3.44%

27.3%
5,308
1,218
3.52%

30.9%
7,825
2,405
3.92%

41.5%
8,459
1,565
3.23%

59.8%
7,001
607
2.86%

33.1%
45,095
5,930
3.41%

43.4%
51,002
9,647
3.20%

32.9%
43,542
7,418
3.46%

34.9%
20,143
4,721
3.37%

46.4%
25,435
5,829
3.13%

36.8%
10,455
2,609
3.33%

41.4%
14,903
3,865
4.21%

90,0207,501

19,6801,640

93,6507,804

69,9505,829

61,4705,122

46,1403,845

141,590
11,799109,860
9,155

49,9504,162

94,2707,855

527,651
43,970229,180
19,098140,450
11,70487,3407,278

167,760
13,980

192,400
16,033

Property tax for the year 2011(\ Thousands)
Reference

Among ② of property management fee (Leasing management fees) (\ Thousands)

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

Note:The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.

-57-

a0701

a0241

a0251

a0361

b0191

b0031

b0341

b0181

c0011

c0021

【Reference】

Earnings Performance for the Individual Properties for the 13th Fiscal Period (May 1, 2011 to October 31, 2011)：184days

Type

Office Buildings

Location

Residential Properties

Other Regional Areas74※As of October 31, 2011

Central Urban Retail Properties
Other
Regional
Areas
B18

Tokyo Metropolitan Area

Property No.

A70

A24

A25

A36

B19

Property Name

Kitananajo SIA
Building

KDX Minami
Semba Dai-1
Building

KDX Minami
Semba Dai-2
Building

KDX Niigata
Building

Residence
Charmante
Tsukishima

March 25, 2011
2,005
0.8%
2,073
2,050
0.9%
19
3,788.73
3,788.73

May 1, 2006

May 1, 2006 March 1, 2007 May 1, 2006 August 1, 2005 June 30, 2006 December 8, 2005 August 1, 2005 September 30, 2005

1,610
0.6%
1,464
1,010
0.4%
11
3,108.16
2,944.94

1,560
0.6%
1,375
1,070
0.5%
22
2,693.37
2,538.67

1,305
0.5%
1,446
899
0.4%
19
4,061.95
2,624.43

5,353
2.1%
5,019
4,480
1.9%
1
7,711.14
7,711.14

1,250
0.5%
1,173
952
0.4%
20
2,046.79
2,046.79

1,038
0.4%
1,005
971
0.4%
2
1,619.34
1,619.34

1,800
0.7%
1,830
1,470
0.6%
124
12,829.64
12,761.14

9,900
3.9%
9,864
9,280
4.0%
12
4,655.96
4,164.88

2,479
1.0%
2,522
1,910
0.8%
11
1,182.14
1,182.14

100.0%
100.0%
-

94.7%
95.6%
83.1%
83.1%
84.4%
96.9%
91.6%
87.2%
100.0%
100.0%

94.3%
100.0%
100.0%
94.1%
82.1%
88.1%
91.2%
94.1%
93.6%
93.6%

64.6%
66.7%
65.4%
64.3%
62.2%
73.2%
76.2%
61.0%
71.2%
83.9%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
91.3%
95.2%
95.2%
85.3%
96.1%
100.0%
95.1%
100.0%
95.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

99.5%
96.7%
92.4%
96.3%
96.5%
98.9%
88.7%
93.0%
94.4%
98.7%

89.5%
100.0%
100.0%
100.0%
93.6%
96.0%
97.9%
97.9%
100.0%
91.7%

100.0%
100.0%
94.8%
87.2%
100.0%
75.9%
91.7%
100.0%
100.0%
100.0%

Operating periods

184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

99,78158,80153,39849,994

148,551

40,26232,641

93,778258,559

67,6458,445,652

Rental revenues

84,03645,047

41,15044,053132,064

37,041

32,50983,659238,720

59,184

7,426,847

Other operating revenues

15,745

13,754

12,248

5,941

16,487

3,220

132

10,118

19,8398,461

1,018,804

23,94623,226

19,081

26,66040,287

11,361

6,245

33,676

57,694

14,4162,494,840

10,394

6,966

5,547

10,861

16,683

2,860

2,621

8,319

17,842

4,452

827,602

0

7,144

5,838

8,419

10,637

3,146

1,584

8,294

16,4494,367

688,480

Utilities

10,526

7,255

5,627

4,535

1,204

653

384

1,942

19,027

3,920

615,421

Repairs and maintenance costs

1,843

740

424

1,567

4,585

2,842

769

6,702

1,066

462

151,926

Insurance

203

139

122

211

360

83

54

385

189

45

14,559Trust fees and other expenses

978

980

1,521

1,065

6,816

1,773

830

8,032

3,120

1,167

196,850③ＮＯＩ （＝①-②） (\ Thousands)

75,83535,57534,317

23,334

108,264

28,901

26,396

60,101200,864

53,2295,950,811④Depreciation (\ Thousands)

14,214

13,733

13,412

12,47845,526

11,223

10,034

23,11557,7108,534

1,434,764⑤Rental operating income （＝③-④） (\ Thousands)

61,62021,842

20,904

10,85562,737

17,67816,362

36,985

143,154

44,695

4,516,046⑥Capital expenditures (\ Thousands)

53,011

1,942

9,298

3,366

274

2,077

840

719

54,199605

674,065⑦ＮＣＦ （＝③-⑥） (\ Thousands)

22,823

33,63325,01919,968

107,989

26,82325,55659,382

146,665

52,624

5,276,745

Expense ratio （＝②／①）

24.0%
18,239
3,640
3.65%

39.5%
14,293
1,926
3.28%

35.7%
11,680
1,790
3.35%

53.3%
16,467
1,496
2.99%

27.1%
21,273
4,568
3.08%

28.2%
6,293
1,411
3.51%

19.1%
3,168
1,204
3.69%

35.9%
16,592
3,140
3.35%

22.3%
32,898
9,376
3.63%

21.3%
8,735
2,466
3.65%

29.5%
1,496,151
297,114
3.52%

202,790
16,899140,130
11,677

122,820
10,235249,590
20,799170,810
14,23474,6506,220

30,4802,540

339,440
28,28682,3306,860

39,1603,263

11,146,580
928,881

Acquisition Date
Price Information

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)

B03

B34

Court Mejiro

GraditoKawaguchi

Tokyo Metropolitan Area

Venus
Hibarigaoka

C01

C02

Frame Jinnanzaka

KDX Yoyogi
Building

Total of 74
Properties

255,546
100.0% *Percentage are rounded to the first decimal place.
254,921230,717100.0%
912
300,016.89
284,137.71

Occupancy ratio
Lease Information

As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Income and Retained Earnings Information for the 13th Fiscal Period②Property-related expenses (\ Thousands)
Property management fees
Taxes

Property tax for the year 2011(\ Thousands)
Reference

Among ② of property management fee (Leasing management fees) (\ Thousands)

Reference： Percentage of rental and other operating revenues

94.7%
94.6%
93.6%
94.4%
94.7%
95.7%
95.6%
95.9%
96.9%
95.9%
179days *Total: Cost-weighted average management period (days)

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

-58-

a002174

75【Reference】

Earnings Performance for the Individual Properties for the 13th Fiscal Period (May 1, 2011 to October 31, 2011)：184days

Type

Office Buildings
Tokyo
Metropolitan
Area
A02

Location

KDX
Hirakawacho
Building

Property Name
Acquisition Date
Price Information

Acquisition price (\ Millions)
Percentage of total portfolio
Revenue from sale of the investment property (\ Millions)
Costs of the investment property (\ Millions)
Gain / Loss on sale of real estate (\ Millions)
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)August 1, 2005
5,180
100.0%
5,800
5,122
545
-

Occupancy ratio

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Lease Information

As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Total of 1 sold
Properties

5,180
100.0%
5,800
5,122
545
-

Total of 75
Properties- *Percentage are rounded to the first decimal place.
-

Income and Retained Earnings Information for the 13th Fiscal Period

Operating periods

61days61days①Rental and other operating revenues (\ Thousands)

53,29753,297

8,498,949

Rental revenues

48,422

48,422

7,475,270

Other operating revenues

4,875

4,875

1,023,679

23,834

23,8342,518,675

Property management fees

5,121

5,121

832,724Taxes

15,062

15,062

703,542

Utilities

2,522

2,522

617,943

Repairs and maintenance costs

526

526

152,452

Insurance

95

95

14,654

Trust fees and other expenses

507

507

197,357③ＮＯＩ （＝①-②） (\ Thousands)

29,462

29,4625,980,273④Depreciation (\ Thousands)

8,170

8,170

1,442,935⑤Rental operating income （＝③-④） (\ Thousands)

21,291

21,291

4,537,337--

674,065⑦ＮＣＦ （＝③-⑥） (\ Thousands)

29,462

29,462

5,306,208

Expense ratio （＝②／①）

44.7%
1,801
3.38%

44.7%
1,801
3.38%

29.6%
298,915
3.52%

-

-

-

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

Property tax for the year 2011(\ Thousands)
Reference

Among ② of property management fee (Leasing management fees) (\ Thousands)

Reference： Percentage of rental and other operating revenues

177days *Total: Cost-weighted average management period (days)

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

Note:The Investment Corporation has sold KDX Hirakawacho Building on June 30, 2011.

※As of October 31, 2011-59-

(Reference)Borrowings

Borrowings on a financial institution basis as of October 31, 2011 are as follows.
Classification

LenderDrawndown Date

Balance at the
AverageEnd ofBalance at theInterestPrevious
End of Period
Rate
Period(\Thousands)(Note 1)(\Thousands)
1,500,000
1.140

Last Repayment
Date

Payment
MethodUsage

Remarks

Short-Term Payable

Mitsubishi UFJ Trust and Banking Corporation

July 30, 2010

Mitsubishi UFJ Trust and Banking Corporation

October 29, 2010

1,000,000

-

1.140

October 31, 2011

Mitsubishi UFJ Trust and Banking Corporation

January 31, 2011

2,700,000

2,700,000

1.090

January 31, 2012

Mitsubishi UFJ Trust and Banking Corporation (Note3)

March 25, 2011

2,000,000

-

1.430

The Norinchukin Bank

April 18, 2011

1,500,000

1,500,000

March 23, 2012
Full on
Unsecured/(Note 2)
Unguaranteed
1.380 November 30, 2011 maturity

Mitsubishi UFJ Trust and Banking Corporation

July 29, 2011-

1,500,000

1.040

-

3,500,000

0.986

-

1,000,000

0.986

Aozora Bank, Ltd.

October 31, 2011

Mitsubishi UFJ Trust and Banking Corporation
Sub Total

July 31, 2011

July 31, 2012
October 31, 2012

8,700,000

10,200,000

July 14, 2006

1,000,000

-

2.149

July 13, 2011

February 29, 2008

1,500,000

-

1.429

August 31, 2011

3,000,000

-

1.609

The Chuo Mitsui Trust and Banking Co., Ltd.

2,000,000

-

1.559

Sumitomo Mitsui Banking Corporation

2,200,000

-

1.992

1,000,000

-

1.992

300,000-

1.992

September 1, 2008

1,000,000-

1.775 September 1, 2011

Mitsubishi UFJ Trust and Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation

March 31, 2008

July 31, 2008

The Chuo Mitsui Trust and Banking Co., Ltd.
Current Potion of Long-Term Payable

Resona Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

(Note4)The Chuo Mitsui Trust and Banking Co., Ltd. (Note4)

April 30, 2009

3,500,000

-

2.240

October 26, 2010

1,500,000

-

1.240

September 30, 2011

July 31, 2011
Full onmaturity

October 31, 2011

May 1, 2008

1,000,000-

1.905 November 1, 2011

The Norinchukin Bank

December 11, 2006

2,500,000

2,500,000

1.964 November 30, 2011

Sumitomo Mitsui Banking Corporation

January 10, 2008

2,500,000

2,500,000

1.503

Sumitomo Mitsui Banking Corporation

February 27, 2009

460,000

450,000

April 2, 2007

2,000,000

2,000,000

1.875

April 2, 2012

The Chuo Mitsui Trust and Banking Co., Ltd.

2.071 February 29, 2012

2,000,000

1,500,000

2.240

April 27, 2012

Resona Bank, Ltd.

(Note7)

June 30, 2008

1,500,000

1,500,000

2.150

June 30, 2012

Development Bank of Japan Inc.

(Note7)

February 27, 2009

920,000

900,000

2.040

August 31, 2012

(Note 8)The Bank of Tokyo-Mitsubishi UFJ, Ltd.

(Note7)

October 29, 2010

2,500,000

2,500,000

1.450

October 31, 2012

Full onmaturity

32,380,000

13,850,000

Long-Term Payable

Development Bank of Japan Inc.

May 1, 2006

5,000,000

5,000,000

2.731

April 30, 2016

Development Bank of Japan Inc.

September 1, 2006

3,000,000

3,000,000

2.124

August 31, 2013

Development Bank of Japan Inc.

June 30, 2008

3,000,000

3,000,000

2.263 December 28, 2012

Sumitomo Mitsui Banking Corporation

October 26, 2009

940,000

920,000

2.424

October 26, 2013

(Note 9)Sumitomo Mitsui Banking Corporation

October 30, 2009

1,880,000

1,840,000

2.445

October 30, 2013

(Note10)

Resona Bank, Ltd.

December 8, 2009

500,000

500,000

1.671 December 8, 2012

The Chuo Mitsui Trust and Banking Co., Ltd.

January 13, 2010

1,000,000

1,000,000

1.901

January 15, 2013

Full onmaturity

Sumitomo Mitsui Banking Corporation

January 29, 2010

1,128,000

1,104,000

2.173

January 30, 2015

(Note11)1,500,000

1,500,000

1.899 February 18, 2013

Full onmaturity

2,127,500

2,070,000

2.190

1,572,500

1,530,000

2.190

The Chuo Mitsui Trust and Banking Co., Ltd.

925,000

900,000

2.190

Aozora Bank, Ltd.

462,500

450,000

2.190

Development Bank of Japan Inc.

February 18, 2010-60-

Unsecured/
Unguaranteed

Full onmaturity

April 30, 2009

Sumitomo Mitsui Banking Corporation(Note 2)

(Note 5)(Note6)

Aozora Bank, Ltd.

Unsecured/
Unguaranteed

January 10, 2012

Aozora Bank, Ltd.

Sub Total(Note 2)

Full onmaturity

February 18, 2015 (Note12)

Classification

LenderDrawndown Date

Sumitomo Mitsui Banking Corporation

April 2, 2010

Resona Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.

July 30, 2010

Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.

October 29, 2010

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
Aozora Bank, Ltd.

November 12, 2010

Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.
Development Bank of Japan Inc.

Balance at the
AverageEnd ofBalance at theInterestPrevious
End of Period
Rate
Period(\Thousands)(Note 1)(\Thousands)
1,900,000
1,850,000
2.220

Last Repayment
Date

Payment
MethodApril 2, 2015

(Note13)500,000

500,000

1.488

July 31, 2013

3,700,000

3,700,000

1.660

January 31, 2014

3,700,000

3,700,000

1.731

July 31, 2014

500,000

500,000

1.463

October 31, 2013

1,500,000

1,500,000

1.584

800,000

800,000

1.584 November 12, 2013

400,000

400,000

1.584

1,200,000

1,200,000

1.789

800,000

800,000

1.789

2,300,000

2,300,000

500,000

500,000

1.450

The Chuo Mitsui Trust and Banking Co., Ltd.

200,000

200,000

1.450 November 12, 2013

Aozora Bank, Ltd.

100,000

100,000

1.450

Sumitomo Mitsui Banking Corporation

800,000

800,000

1.550

Resona Bank, Ltd.

200,000

200,000

1.550

Development Bank of Japan Inc.

700,000

700,000

2.206 November 12, 2017

1,300,000

1,300,000

1.570

January 31, 2014

800,000

800,000

1.939

January 29, 2016

3,000,000

3,000,000

1.912

August 31, 2015

500,000

500,000

1.952

January 29, 2016

2,700,000

2,700,000

1.630 September 22, 2014

2,000,000

2,000,000

1.525 September 30, 2013

2,000,000

2,000,000

1.905January 29, 2016

Resona Bank, Ltd.

1,000,000

1,000,000

1.389

March 31, 2016

Mitsubishi UFJ Trust and Banking Corporation

1,000,000

1,000,000

1.496

April 30, 2013

1,500,000

1,500,000

1.859

October 31, 2015

1,000,000

1,000,000

1.886January 29, 2016-

1,000,000

1.535

July 14, 2014-

2,200,000

1.140

-

1,000,000

1.140
1.398

Sumitomo Mitsui Banking Corporation
Long-Term Payable

January 31, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.

February 28, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.

March 22, 2011

Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

March 31, 2011

April 28, 2011

Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation

July 13, 2011

Sumitomo Mitsui Banking Corporation
The Chuo Mitsui Trust and Banking Co., Ltd.

July 29, 2011

Resona Bank, Ltd.

2.023 November 12, 2017

November 12, 2015-

300,000

August 31, 2011-

1,500,000

1.086 February 27, 2015

The Chuo Mitsui Trust and Banking Co., Ltd.

September 1, 2011-

1,000,000

1.149

-

1,000,000

1.151 September 30, 2013

The Chuo Mitsui Trust and Banking Co., Ltd.

August 29, 2014-

2,500,000

1.161

The Mizuho Trust and Banking Co., Limited-

1,000,000

1.270 September 30, 2014

Sumitomo Mitsui Banking Corporation-

2,500,000

1.289

Sub Total

59,635,500

73,364,000

Total

100,715,500

97,414,000

September 30, 2011

Full on
Unsecured/maturity (Note 2) Unguaranteed

July 31, 2014

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Remarks

November 12, 2015

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

December 1, 2010

Usage

March 31, 2014

March 31, 2015

Notes:
1. The average interest rate is the weighted-average interest rate for the fiscal period. 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.
2. Funds procured through borrowings were used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings.
3. The Investment Corporation undertook prepayment on July 25, 2011.
4. The Investment Corporation undertook prepayment on September 30, 2011.
5. Repayment Method: August 31, 2009 to August 31, 2011: repayment of 10,000 thousand yen every 6 months, and February 29, 2012: repayment of 450,000 thousand yen
6. The Investment Corporation undertook portion of prepayment on October 11, 2011.
7. Borrowings listed in the current potion of long-term payable were listed in long-term payable in the previous fiscal period.
8. Repayment Method: August 31, 2009 to February 29, 2012: repayment of 20,000 thousand yen every 6 months, and August 31, 2012: repayment of 880,000 thousand yen
9. Repayment Method: February 26, 2010 to August 31, 2013: repayment of 20,000 thousand yen every 6 months, and October 26, 2013: repayment of 840,000 thousand yen
10. Repayment Method: January 29, 2010 to July 31, 2013: repayment of 40,000 thousand yen every 6 months, and October 30, 2013: repayment of 1,680,000 thousand yen
11. Repayment Method: April 30, 2010 to October 31, 2014: repayment of 24,000 thousand yen every 6 months, and January 30, 2015: repayment of 960,000 thousand yen
12. Repayment Method: February 26, 2010 to August 31, 2014: repayment of 137,500 thousand yen every 6 months, and February 18, 2015: repayment of 4,125,000 thousand yen
13. Repayment Method: August 31, 2010 to February 28, 2015: repayment of 50,000 thousand yen every 6 months, and April 2, 2015: repayment of 1,500,000 thousand yen-61-