Financial Section
Contents
Independent Auditor’s Report

K

Balance Sheets

L

Statements of Income and Retained Earnings

M

Statements of Changes in Net Assets

M

Statements of Cash FlowsN

Notes to Financial Statements

O

Financial Summary (Unaudited)
Historical Operating Trends
For the 18th–22nd Fiscal Periods
Unit

18th Period(as of Apr. 30, 2014)

Operating revenues

mn yen10,895

12,92814,13013,74014,362(Rental revenues)

mn yen10,33011,295

12,836

13,226

12,812

Operating expenses

mn yen

6,611

7,899

7,593

7,800

8,260

(Property-related expenses)

mn yen

5,047

5,557

6,377

6,668

6,533

Operating income

mn yen

4,283

5,028

6,537

5,940

6,102

Ordinary income

mn yen

2,887

3,570

5,111

4,565

4,816

Net income (a)mn yen

2,885

3,569

5,110

4,564

4,815

Total assets (b)mn yen355,167

388,169

407,799407,217

408,813

Period(Period-on-period change)

Interest-bearing debt (c)%mn yen(Period-on-period change)%

Unitholders’ equity (d)mn yen(Period-on-period change)%

Unitholders’ capitalmn yen(Period-on-period change)

Number of investment units issued andoutstanding (e)Unitholders’ equity per unit (d)/(e)19th Period(as of Oct. 31, 2014)

20th Period(as of Apr. 30, 2015)

21st Period(as of Oct. 31, 2015)

22nd Period(as of Apr. 30, 2016)(+12.1)(+9.3)(+5.1)(–0.1)(+0.4)

167,746

187,685

174,600

174,100

175,100(+11.4)(+11.9)(-7.0)(–0.3)(+0.6)

170,109180,844

211,951

211,914

212,555(+12.8)(+6.3)(+17.2)(–0.0)(+0.3)

166,261

176,632

206,199

206,199

206,199%(+13.0)(+6.2)(+16.7)

(0.0)

(0.0)

unit

332,540

355,010404,885

404,885

404,885
524,977yen

511,546

509,407523,484

523,394mn yen

3,205

3,571

4,600

4,170

4,335

yen

9,638

10,06011,363

10,30010,707(Earnings distributed per unit)

yen

9,638

10,06011,363

10,30010,707(Distribution in excess of earnings per unit)

yen

—

—

—

—

—

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

0.9 (1.7)

1.0 (1.9)

1.3 (2.6)

1.1 (2.2)

1.2 (2.4)

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

1.8 (3.6)

2.0 (4.0)

2.6 (5.2)

2.2 (4.3)

2.3 (4.6)

47.9

46.6

52.0

52.0

52.0

(+0.3)(-1.3)(+5.4)(+0.1)(-0.0)

47.2

48.4

42.8

42.8

42.8

Total distribution (f)Distribution per unit (f)/(e)Net assets ratio at end of period (d)/(b)(Period-on-period change)

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

Payout ratio (Note 4) (f)/(a)%%%(-0.3)(+1.1)(-5.5)(–0.1)(+0.1)

111.0

100.0

90.0

91.3

90.0

Other references
Number of properties

properties

Total leasable floor aream2

Occupancy ratio at end of period

89

94

97

97

97

386,659.01

437,233.24

453,999.44

453,681.06

457,774.90

%

96.0

95.6

96.5

94.9

96.9

Depreciation expenses for the period

mn yen

1,826

2,022

2,221

2,218

2,230

Capital expenditures for the period

mn yen

711

550

329

469

1,120

Leasing NOI (Net Operating Income) (Note 5)

mn yen

7,109

7,760

8,680

8,775

8,509

FFO (Funds From Operation) (Note 6)

mn yen

5,031

7,116

6,909

6,487

6,302

yen

15,13020,045

17,06516,023

15,565

FFO per unit (Note 7)

Notes: 1. Return on assets = Ordinary income/{(Total assets at beginning of period + Total assets at end of period)/2} × 100
2. Annualized values for the 18th Fiscal Period are calculated based on a period of 181 days, 184 days for the 19th Fiscal Period,
181 days for the 20th Fiscal Period, 184 days for the 21st Fiscal Period, 182 days for the 22nd Fiscal Period.
3. Return on net assets = Net income/{(Total net assets at beginning of period + Total net assets at end of period)/2} × 100
4. Payout ratio is rounded down to the first decimal place.
5. Leasing NOI = Rental revenues – Rental expenses + Depreciation expenses for the period
6 FFO = Net income + Depreciation expenses for the period – Gain on sale of real estate property + Loss on sale of real estate property
7. FFO per unit = FFO/Number of investment units issued and outstanding (figures below ¥1 rounded down)
8. Where applicable, figures are rounded down to the nearest million.

20

21

Financial Section
Contents
Independent Auditor’s Report

K

Balance Sheets

L

Statements of Income and Retained Earnings

M

Statements of Changes in Net Assets

M

Statements of Cash FlowsN

Notes to Financial Statements

O

Financial Summary (Unaudited)
Historical Operating Trends
For the 18th–22nd Fiscal Periods
Unit

18th Period(as of Apr. 30, 2014)

Operating revenues

mn yen10,895

12,92814,13013,74014,362(Rental revenues)

mn yen10,33011,295

12,836

13,226

12,812

Operating expenses

mn yen

6,611

7,899

7,593

7,800

8,260

(Property-related expenses)

mn yen

5,047

5,557

6,377

6,668

6,533

Operating income

mn yen

4,283

5,028

6,537

5,940

6,102

Ordinary income

mn yen

2,887

3,570

5,111

4,565

4,816

Net income (a)mn yen

2,885

3,569

5,110

4,564

4,815

Total assets (b)mn yen355,167

388,169

407,799407,217

408,813

Period(Period-on-period change)

Interest-bearing debt (c)%mn yen(Period-on-period change)%

Unitholders’ equity (d)mn yen(Period-on-period change)%

Unitholders’ capitalmn yen(Period-on-period change)

Number of investment units issued andoutstanding (e)Unitholders’ equity per unit (d)/(e)19th Period(as of Oct. 31, 2014)

20th Period(as of Apr. 30, 2015)

21st Period(as of Oct. 31, 2015)

22nd Period(as of Apr. 30, 2016)(+12.1)(+9.3)(+5.1)(–0.1)(+0.4)

167,746

187,685

174,600

174,100

175,100(+11.4)(+11.9)(-7.0)(–0.3)(+0.6)

170,109180,844

211,951

211,914

212,555(+12.8)(+6.3)(+17.2)(–0.0)(+0.3)

166,261

176,632

206,199

206,199

206,199%(+13.0)(+6.2)(+16.7)

(0.0)

(0.0)

unit

332,540

355,010404,885

404,885

404,885
524,977yen

511,546

509,407523,484

523,394mn yen

3,205

3,571

4,600

4,170

4,335

yen

9,638

10,06011,363

10,30010,707(Earnings distributed per unit)

yen

9,638

10,06011,363

10,30010,707(Distribution in excess of earnings per unit)

yen

—

—

—

—

—

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

0.9 (1.7)

1.0 (1.9)

1.3 (2.6)

1.1 (2.2)

1.2 (2.4)

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

1.8 (3.6)

2.0 (4.0)

2.6 (5.2)

2.2 (4.3)

2.3 (4.6)

47.9

46.6

52.0

52.0

52.0

(+0.3)(-1.3)(+5.4)(+0.1)(-0.0)

47.2

48.4

42.8

42.8

42.8

Total distribution (f)Distribution per unit (f)/(e)Net assets ratio at end of period (d)/(b)(Period-on-period change)

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

Payout ratio (Note 4) (f)/(a)%%%(-0.3)(+1.1)(-5.5)(–0.1)(+0.1)

111.0

100.0

90.0

91.3

90.0

Other references
Number of properties

properties

Total leasable floor aream2

Occupancy ratio at end of period

89

94

97

97

97

386,659.01

437,233.24

453,999.44

453,681.06

457,774.90

%

96.0

95.6

96.5

94.9

96.9

Depreciation expenses for the period

mn yen

1,826

2,022

2,221

2,218

2,230

Capital expenditures for the period

mn yen

711

550

329

469

1,120

Leasing NOI (Net Operating Income) (Note 5)

mn yen

7,109

7,760

8,680

8,775

8,509

FFO (Funds From Operation) (Note 6)

mn yen

5,031

7,116

6,909

6,487

6,302

yen

15,13020,045

17,06516,023

15,565

FFO per unit (Note 7)

Notes: 1. Return on assets = Ordinary income/{(Total assets at beginning of period + Total assets at end of period)/2} × 100
2. Annualized values for the 18th Fiscal Period are calculated based on a period of 181 days, 184 days for the 19th Fiscal Period,
181 days for the 20th Fiscal Period, 184 days for the 21st Fiscal Period, 182 days for the 22nd Fiscal Period.
3. Return on net assets = Net income/{(Total net assets at beginning of period + Total net assets at end of period)/2} × 100
4. Payout ratio is rounded down to the first decimal place.
5. Leasing NOI = Rental revenues – Rental expenses + Depreciation expenses for the period
6 FFO = Net income + Depreciation expenses for the period – Gain on sale of real estate property + Loss on sale of real estate property
7. FFO per unit = FFO/Number of investment units issued and outstanding (figures below ¥1 rounded down)
8. Where applicable, figures are rounded down to the nearest million.

20

21

Balance Sheets

Statements of Income and Retained Earnings

Kenedix Office Investment Corporation
As of April 30, 2016 and October 31, 2015

Kenedix Office Investment Corporation
For the period from November 1, 2015 to April 30, 2016 and the period from May 1, 2015 to October 31, 2015
In thousands of yen

In thousands of yen

ASSETS
Current assets:
Cash and bank deposits (Notes 3 and 13)
Rental receivables
Consumption tax refundable
Other current assets (Note 8)
Total current assets
Property and equipment, at cost: (Notes 4 and 15)
Land
Buildings and structures (Note 6)
Machinery and equipment
Tools, furniture and fixtures
Less-accumulated depreciation
Net property and equipment
Other assets:
Ground leasehold (Note 15)
Investment securities (Note 13)
Corporate bond issuance costs
Unit issuance costs
Other assets (Note 15)
Total assets
LIABILITIES AND NET ASSETS
Liabilities
Current liabilities:
Trade and other payables
Short-term debt and current portion of long-term debt (Notes 5 and 13)
Current portion of corporate bonds (Notes 5 and 13)
Deposits received
Rents received in advance
Other current liabilities
Total current liabilities
Non-current liabilities:
Corporate bonds (Notes 5 and 13)
Long-term debt (Notes 5 and 13)
Leasehold and security deposits received
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Units authorized: 2,000,000 units
Units issued and outstanding:404,885 units
As of April 30, 2016 and October 31, 2015, respectively
Surplus
Voluntary retained earnings
Reserve for reduction entry
Retained earnings
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges (Note 14)
Total valuation and translation adjustments
Total net assets (Note 9)
Total liabilities and net assets
See accompanying notes to the financial statements.

22

As of April 30, 2016

As of October 31, 2015

¥ 20,602,996
341,787
53,57859,744
21,058,105¥ 22,587,773
338,287—
97,212
23,023,272

273,049,253
136,422,576
2,041,893
514,082(27,295,009)
384,732,795

271,537,963
132,688,163
1,905,006
503,925(25,521,651)
381,113,406

352,460
1,089,761
42,378110,641
1,427,315¥408,813,455

353,234
1,100,235
34,102
167,122
1,426,091¥407,217,462¥¥

1,170,894
22,200,000
3,000,000
54,1602,115,825
91,25728,632,136

6,300,000
143,600,000
17,721,596
4,328
167,625,924¥196,258,060

1,372,165
33,300,000—
46,8401,958,661
497,937
37,175,603

Operating revenues:
Rental revenues (Note 11)
Gain on sale of real estate property (Note 11)
Dividends income
Total operating revenues
Operating expenses:
Property-related expenses (Note 11)
Loss on sale of real estate property (Note 11)
Asset management fees
Administrative service and custodian fees
Other operating expenses
Total operating expenses
Operating income
Non-operating expenses:
Interest expense
Financing-related expenses
Amortization of unit issuance costs
Amortization of corporate bond issuance costs
Others, net
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes (Note 8)
Net income
Retained earnings at the end of period

1,544,522
4,815,255
6,359,777
212,559,723

1,150,495
4,564,342
5,714,837
211,914,783(4,328)(4,328)
212,555,395¥408,813,455——
211,914,783¥407,217,462¥12,812,029
1,510,169
40,015
14,362,213¥13,226,032
461,366
53,27813,740,676

6,533,203
766,005
759,990
78,413
122,520
8,260,131
6,102,082

6,668,992
165,691753,00378,538134,2237,800,447
5,940,229

993,892
183,756
56,481
5,263
46,171
1,285,563
4,816,519
4,816,519
1,264
4,815,255¥ 4,815,255

1,058,112
220,018
56,481
5,312
34,701
1,374,624
4,565,605
4,565,605
1,263
4,564,342¥ 4,564,342

Statements of Changes in Net Assets
Kenedix Office Investment Corporation
For the period from November 1, 2015 to April 30, 2016 and the period from May 1, 2015 to October 31, 2015

8,300,000
132,500,000
17,327,076—
158,127,076¥195,302,679

206,199,946

From May 1, 2015
to October 31, 2015

See accompanying notes to the financial statements.

In thousands of yen
Valuation andtranslation
adjustments

Unitholders’ equity
Surplus
Voluntary retained
earnings
Unitholders’capital206,199,946

From November 1, 2015
to April 30, 2016

Balance as of April 30, 2015
Changes during the fiscal period
Provision of reserve for reduction entry
Payments of dividends
Net income
Total changes during the fiscal period
Balance as of October 31, 2015
Changes during the fiscal period
Provision of reserve for reduction entry
Payments of dividends
Net income
Net changes of items other thanunitholder’s equity
Total changes during the fiscal period
Balance as of April 30, 2016

Reserve for
reduction entry

Retainedearnings

Total
surplusTotal
unitholders’equityDeferred gains
or losses onhedgesTotal¥206,199,946¥640,811¥5,110,392¥5,751,203 ¥211,951,149 ¥— ¥211,951,149————¥206,199,946

509,684——
509,684¥1,150,495(509,684)(4,600,708)
4,564,342(546,050)¥4,564,342——(4,600,708)(4,600,708)
4,564,342
4,564,342(36,366)(36,366)¥5,714,837 ¥211,914,783 ¥———(4,600,708)—
4,564,342—(36,366)— ¥211,914,783———

394,027——(394,027)(4,170,315)
4,815,255—(4,170,315)
4,815,255

—
—
—

—
—
¥206,199,946—
394,027¥1,544,522—
250,913¥4,815,255——
644,940
644,940¥6,359,777 ¥212,559,723—(4,170,315)
4,815,255—(4,170,315)
4,815,255(4,328)(4,328)(4,328)640,612¥(4,328) ¥212,555,395

See accompanying notes to the financial statements.

23

Balance Sheets

Statements of Income and Retained Earnings

Kenedix Office Investment Corporation
As of April 30, 2016 and October 31, 2015

Kenedix Office Investment Corporation
For the period from November 1, 2015 to April 30, 2016 and the period from May 1, 2015 to October 31, 2015
In thousands of yen

In thousands of yen

ASSETS
Current assets:
Cash and bank deposits (Notes 3 and 13)
Rental receivables
Consumption tax refundable
Other current assets (Note 8)
Total current assets
Property and equipment, at cost: (Notes 4 and 15)
Land
Buildings and structures (Note 6)
Machinery and equipment
Tools, furniture and fixtures
Less-accumulated depreciation
Net property and equipment
Other assets:
Ground leasehold (Note 15)
Investment securities (Note 13)
Corporate bond issuance costs
Unit issuance costs
Other assets (Note 15)
Total assets
LIABILITIES AND NET ASSETS
Liabilities
Current liabilities:
Trade and other payables
Short-term debt and current portion of long-term debt (Notes 5 and 13)
Current portion of corporate bonds (Notes 5 and 13)
Deposits received
Rents received in advance
Other current liabilities
Total current liabilities
Non-current liabilities:
Corporate bonds (Notes 5 and 13)
Long-term debt (Notes 5 and 13)
Leasehold and security deposits received
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Units authorized: 2,000,000 units
Units issued and outstanding:404,885 units
As of April 30, 2016 and October 31, 2015, respectively
Surplus
Voluntary retained earnings
Reserve for reduction entry
Retained earnings
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges (Note 14)
Total valuation and translation adjustments
Total net assets (Note 9)
Total liabilities and net assets
See accompanying notes to the financial statements.

22

As of April 30, 2016

As of October 31, 2015

¥ 20,602,996
341,787
53,57859,744
21,058,105¥ 22,587,773
338,287—
97,212
23,023,272

273,049,253
136,422,576
2,041,893
514,082(27,295,009)
384,732,795

271,537,963
132,688,163
1,905,006
503,925(25,521,651)
381,113,406

352,460
1,089,761
42,378110,641
1,427,315¥408,813,455

353,234
1,100,235
34,102
167,122
1,426,091¥407,217,462¥¥

1,170,894
22,200,000
3,000,000
54,1602,115,825
91,25728,632,136

6,300,000
143,600,000
17,721,596
4,328
167,625,924¥196,258,060

1,372,165
33,300,000—
46,8401,958,661
497,937
37,175,603

Operating revenues:
Rental revenues (Note 11)
Gain on sale of real estate property (Note 11)
Dividends income
Total operating revenues
Operating expenses:
Property-related expenses (Note 11)
Loss on sale of real estate property (Note 11)
Asset management fees
Administrative service and custodian fees
Other operating expenses
Total operating expenses
Operating income
Non-operating expenses:
Interest expense
Financing-related expenses
Amortization of unit issuance costs
Amortization of corporate bond issuance costs
Others, net
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes (Note 8)
Net income
Retained earnings at the end of period

1,544,522
4,815,255
6,359,777
212,559,723

1,150,495
4,564,342
5,714,837
211,914,783(4,328)(4,328)
212,555,395¥408,813,455——
211,914,783¥407,217,462¥12,812,029
1,510,169
40,015
14,362,213¥13,226,032
461,366
53,27813,740,676

6,533,203
766,005
759,990
78,413
122,520
8,260,131
6,102,082

6,668,992
165,691753,00378,538134,2237,800,447
5,940,229

993,892
183,756
56,481
5,263
46,171
1,285,563
4,816,519
4,816,519
1,264
4,815,255¥ 4,815,255

1,058,112
220,018
56,481
5,312
34,701
1,374,624
4,565,605
4,565,605
1,263
4,564,342¥ 4,564,342

Statements of Changes in Net Assets
Kenedix Office Investment Corporation
For the period from November 1, 2015 to April 30, 2016 and the period from May 1, 2015 to October 31, 2015

8,300,000
132,500,000
17,327,076—
158,127,076¥195,302,679

206,199,946

From May 1, 2015
to October 31, 2015

See accompanying notes to the financial statements.

In thousands of yen
Valuation andtranslation
adjustments

Unitholders’ equity
Surplus
Voluntary retained
earnings
Unitholders’capital206,199,946

From November 1, 2015
to April 30, 2016

Balance as of April 30, 2015
Changes during the fiscal period
Provision of reserve for reduction entry
Payments of dividends
Net income
Total changes during the fiscal period
Balance as of October 31, 2015
Changes during the fiscal period
Provision of reserve for reduction entry
Payments of dividends
Net income
Net changes of items other thanunitholder’s equity
Total changes during the fiscal period
Balance as of April 30, 2016

Reserve for
reduction entry

Retainedearnings

Total
surplusTotal
unitholders’equityDeferred gains
or losses onhedgesTotal¥206,199,946¥640,811¥5,110,392¥5,751,203 ¥211,951,149 ¥— ¥211,951,149————¥206,199,946

509,684——
509,684¥1,150,495(509,684)(4,600,708)
4,564,342(546,050)¥4,564,342——(4,600,708)(4,600,708)
4,564,342
4,564,342(36,366)(36,366)¥5,714,837 ¥211,914,783 ¥———(4,600,708)—
4,564,342—(36,366)— ¥211,914,783———

394,027——(394,027)(4,170,315)
4,815,255—(4,170,315)
4,815,255

—
—
—

—
—
¥206,199,946—
394,027¥1,544,522—
250,913¥4,815,255——
644,940
644,940¥6,359,777 ¥212,559,723—(4,170,315)
4,815,255—(4,170,315)
4,815,255(4,328)(4,328)(4,328)640,612¥(4,328) ¥212,555,395

See accompanying notes to the financial statements.

23

Statements of Cash Flows

Notes to Financial Statements

Kenedix Office Investment Corporation
For the period from November 1, 2015 to April 30, 2016 and the period from May 1, 2015 to October 31, 2015

Kenedix Office Investment Corporation
For the period from November 1, 2015 to April 30, 2016 and the period from May 1, 2015 to October 31, 2015
In thousands of yen

From November 1, 2015
to April 30, 2016

From May 1, 2015
to October 31, 2015

¥ 4,816,519¥ 4,565,605

2,470,695

2,494,805

CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income taxes
Adjustments to reconcile income before income taxes to
net cash provided by (used in) operating activities:
Depreciation and amortization
Interest income

(697)

(738)

Interest expense

993,892

1,058,112

Rental receivables(3,500)(16,372)

Consumption tax refundable(53,578)—

Accrued consumption tax(407,556)

159,196

Trade and other payables(203,532)

41,052

Rents received in advance

157,163(149,339)

14,591,896

5,309,142

Changes in assets and liabilities:

Property and equipment due to sale
Others, net(123,666)(145,670)

Subtotal

22,237,636

13,315,793

Interest income received
Cash payments of interest expense
Cash payments of income taxes
Net cash provided by (used in) operating activities

697

738

(989,130)(1,070,731)

(869)

(925)

21,248,334

12,244,875(20,403,242)(9,078,473)(5,913)—

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
Purchase of intangible assets
Proceeds from leasehold and security deposits received

1,851,210

1,100,651

Payments of leasehold and security deposits received(1,496,099)(1,180,848)(600,262)(59,130)—

108,411(20,654,306)(9,109,389)

Payments of restricted bank deposits
Proceeds from restricted bank deposits
Net cash provided by (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term debt

1,500,000

1,000,000

Payments of short-term debt

(1,500,000)(1,500,000)

Proceeds from long-term debt

18,300,000

14,500,000

Payments of long-term debt

(18,300,000)(14,500,000)

Proceeds from issuance of corporate bonds

990,472—

Payment of dividends(4,169,538)(4,599,589)

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

Net change in cash and cash equivalents(2,585,038)(1,964,103)

Cash and cash equivalents at the beginning of period

21,760,581

23,724,684¥ 19,175,543¥ 21,760,581

Cash and cash equivalents at the end of period (Note3)
See accompanying notes to the financial statements.

1.

ORGANIZATION AND BASIS OF PRESENTATIONORGANIZATION
Kenedix Office Investment Corporation (“the Investment Corporation”) is a real estate investment corporation whose units are listed on theTokyo Stock Exchange. The Investment Corporation is engaged in ownership and operation of selected office buildings, residential and retailproperties in Japan, with a focus on mid-sized office buildings in the Tokyo Metropolitan Area. The Investment Corporation was incorporated on
May 6, 2005 as an investment corporation under the Law Concerning Investment Trusts and Investment Corporations of Japan, or the Investment
Trust Law. On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo Stock Exchange witha total of 75,400 investment units issued and outstanding (Securities Code: 8972). Subsequently, the Investment Corporation raised funds
through seven public offerings and other means including global offerings. Pursuant to the Investment Trust Law, the Investment Corporation isexternally managed by a registered asset management company, Kenedix Real Estate Fund Management, Inc. (“the Asset Management
Company”), a subsidiary of Kenedix, Inc. (“Kenedix”). In concert with the Asset Management Company, the Investment Corporation strives tomaximize cash distribution to investors by securing stable earnings and sustainable investment growth. To this end, the Investment Corporation
adopts a dynamic and flexible investment stance that accurately reflects its environment and market trends, and endeavors to ensure a timely
response to each and every opportunity.
During the period ended October 31, 2015, the Investment Corporation acquired one office building (Hamamatsucho Center Building: acquisition price of ¥3,950 million) located in the Tokyo Metropolitan Area, one office building (Shin Osaka Center Building: acquisition price of ¥4,550
million ) located in Other Regional Areas, and sold Nagoya Nikko Shoken Building (initial acquisition price of ¥4,158 million) and KDX Nogizaka
Building (initial acquisition price of ¥1,065 million) (with a total combined disposition price of ¥5,760 million).
During the period ended April 30, 2016, the Investment Corporation acquired one office buildings (Nittochi Toranomon Building: acquisition
price of ¥15,550 million) located in the Tokyo Metropolitan Area, one office building (Nichigin-mae KD Building: acquisition price of ¥3,500 million ) located in Other Regional Areas, and sold KDX Toranomon Building (initial acquisition price of ¥4,400 million) and Toranomon Toyo Building(initial acquisition price of ¥9,850 million) (with a total combined disposition price of ¥15,420 million).
At the end of the twenty-first and twenty-second fiscal periods, the Investment Corporation had total unitholders’ capital of ¥206,200 million
with 404,885 investment units outstanding, respectively. The Investment Corporation owned a portfolio of 97 properties (consisting of 92 officebuildings, one residential property, three central urban retail properties and one other property) with total acquisition prices of ¥388,371 millionand ¥393,171 million at the end of the twenty-first and twenty-second fiscal periods, respectively. The occupancy ratios were approximately
94.9% and 96.9% at the end of the twenty-first and twenty-second fiscal periods, respectively.

BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trust Act of Japan, theFinancial Instruments and Exchange Law of Japan and related regulations, and in conformity with accounting principles and practices generally
accepted in Japan (“Japanese GAAP”), which are different in certain respects as to the application and disclosure requirements of theInternational Financial Reporting Standards or accounting principles generally accepted in the United States of America.
The accompanying financial statements are basically a translation of the audited financial statements that were prepared for Japanese domestic
purposes from the accounts and records maintained by the Investment Corporation and filed with the Kanto Local Finance Bureau of the Ministryof Finance as required by the Financial Instruments and Exchange Law. In preparing the accompanying financial statements, relevant notes havebeen added and certain reclassifications have been made to the financial statements issued domestically in order to present them in a form that ismore familiar to readers outside Japan. The Investment Corporation’s fiscal period is a six-month period that ends at the end of April and the endof October each year. The Investment Corporation does not prepare consolidated financial statements because it has no subsidiaries.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) SECURITIESNon-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving average method.
Concerning silent partnership (tokumei kumiai, “TK”) interests, the method of incorporating the amount of equity equivalent to the portion that
corresponds to the net gain or loss of the TK is adopted.

(B) PROPERTY AND EQUIPMENT
Property and equipment are stated at cost. Depreciation of property and equipment is calculated on a straight-line basis over the estimated useful
lives of the assets ranging as stated below:

24

From November 1, 2015 to April 30, 2016

From May 1, 2015 to October 31, 2015

Buildings and structures

2-49 years

2-49 years

Machinery and equipment

3-17 years

3-17 years

Tools, furniture and fixtures

3-20 years

3-20 years

25Statements of Cash Flows

Notes to Financial Statements

Kenedix Office Investment Corporation
For the period from November 1, 2015 to April 30, 2016 and the period from May 1, 2015 to October 31, 2015

Kenedix Office Investment Corporation
For the period from November 1, 2015 to April 30, 2016 and the period from May 1, 2015 to October 31, 2015
In thousands of yen

From November 1, 2015
to April 30, 2016

From May 1, 2015
to October 31, 2015

¥ 4,816,519¥ 4,565,605

2,470,695

2,494,805

CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income taxes
Adjustments to reconcile income before income taxes to
net cash provided by (used in) operating activities:
Depreciation and amortization
Interest income

(697)

(738)

Interest expense

993,892

1,058,112

Rental receivables(3,500)(16,372)

Consumption tax refundable(53,578)—

Accrued consumption tax(407,556)

159,196

Trade and other payables(203,532)

41,052

Rents received in advance

157,163(149,339)

14,591,896

5,309,142

Changes in assets and liabilities:

Property and equipment due to sale
Others, net(123,666)(145,670)

Subtotal

22,237,636

13,315,793

Interest income received
Cash payments of interest expense
Cash payments of income taxes
Net cash provided by (used in) operating activities

697

738

(989,130)(1,070,731)

(869)

(925)

21,248,334

12,244,875(20,403,242)(9,078,473)(5,913)—

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
Purchase of intangible assets
Proceeds from leasehold and security deposits received

1,851,210

1,100,651

Payments of leasehold and security deposits received(1,496,099)(1,180,848)(600,262)(59,130)—

108,411(20,654,306)(9,109,389)

Payments of restricted bank deposits
Proceeds from restricted bank deposits
Net cash provided by (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term debt

1,500,000

1,000,000

Payments of short-term debt

(1,500,000)(1,500,000)

Proceeds from long-term debt

18,300,000

14,500,000

Payments of long-term debt

(18,300,000)(14,500,000)

Proceeds from issuance of corporate bonds

990,472—

Payment of dividends(4,169,538)(4,599,589)

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

Net change in cash and cash equivalents(2,585,038)(1,964,103)

Cash and cash equivalents at the beginning of period

21,760,581

23,724,684¥ 19,175,543¥ 21,760,581

Cash and cash equivalents at the end of period (Note3)
See accompanying notes to the financial statements.

1.

ORGANIZATION AND BASIS OF PRESENTATIONORGANIZATION
Kenedix Office Investment Corporation (“the Investment Corporation”) is a real estate investment corporation whose units are listed on theTokyo Stock Exchange. The Investment Corporation is engaged in ownership and operation of selected office buildings, residential and retailproperties in Japan, with a focus on mid-sized office buildings in the Tokyo Metropolitan Area. The Investment Corporation was incorporated on
May 6, 2005 as an investment corporation under the Law Concerning Investment Trusts and Investment Corporations of Japan, or the Investment
Trust Law. On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo Stock Exchange witha total of 75,400 investment units issued and outstanding (Securities Code: 8972). Subsequently, the Investment Corporation raised funds
through seven public offerings and other means including global offerings. Pursuant to the Investment Trust Law, the Investment Corporation isexternally managed by a registered asset management company, Kenedix Real Estate Fund Management, Inc. (“the Asset Management
Company”), a subsidiary of Kenedix, Inc. (“Kenedix”). In concert with the Asset Management Company, the Investment Corporation strives tomaximize cash distribution to investors by securing stable earnings and sustainable investment growth. To this end, the Investment Corporation
adopts a dynamic and flexible investment stance that accurately reflects its environment and market trends, and endeavors to ensure a timely
response to each and every opportunity.
During the period ended October 31, 2015, the Investment Corporation acquired one office building (Hamamatsucho Center Building: acquisition price of ¥3,950 million) located in the Tokyo Metropolitan Area, one office building (Shin Osaka Center Building: acquisition price of ¥4,550
million ) located in Other Regional Areas, and sold Nagoya Nikko Shoken Building (initial acquisition price of ¥4,158 million) and KDX Nogizaka
Building (initial acquisition price of ¥1,065 million) (with a total combined disposition price of ¥5,760 million).
During the period ended April 30, 2016, the Investment Corporation acquired one office buildings (Nittochi Toranomon Building: acquisition
price of ¥15,550 million) located in the Tokyo Metropolitan Area, one office building (Nichigin-mae KD Building: acquisition price of ¥3,500 million ) located in Other Regional Areas, and sold KDX Toranomon Building (initial acquisition price of ¥4,400 million) and Toranomon Toyo Building(initial acquisition price of ¥9,850 million) (with a total combined disposition price of ¥15,420 million).
At the end of the twenty-first and twenty-second fiscal periods, the Investment Corporation had total unitholders’ capital of ¥206,200 million
with 404,885 investment units outstanding, respectively. The Investment Corporation owned a portfolio of 97 properties (consisting of 92 officebuildings, one residential property, three central urban retail properties and one other property) with total acquisition prices of ¥388,371 millionand ¥393,171 million at the end of the twenty-first and twenty-second fiscal periods, respectively. The occupancy ratios were approximately
94.9% and 96.9% at the end of the twenty-first and twenty-second fiscal periods, respectively.

BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trust Act of Japan, theFinancial Instruments and Exchange Law of Japan and related regulations, and in conformity with accounting principles and practices generally
accepted in Japan (“Japanese GAAP”), which are different in certain respects as to the application and disclosure requirements of theInternational Financial Reporting Standards or accounting principles generally accepted in the United States of America.
The accompanying financial statements are basically a translation of the audited financial statements that were prepared for Japanese domestic
purposes from the accounts and records maintained by the Investment Corporation and filed with the Kanto Local Finance Bureau of the Ministryof Finance as required by the Financial Instruments and Exchange Law. In preparing the accompanying financial statements, relevant notes havebeen added and certain reclassifications have been made to the financial statements issued domestically in order to present them in a form that ismore familiar to readers outside Japan. The Investment Corporation’s fiscal period is a six-month period that ends at the end of April and the endof October each year. The Investment Corporation does not prepare consolidated financial statements because it has no subsidiaries.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) SECURITIESNon-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving average method.
Concerning silent partnership (tokumei kumiai, “TK”) interests, the method of incorporating the amount of equity equivalent to the portion that
corresponds to the net gain or loss of the TK is adopted.

(B) PROPERTY AND EQUIPMENT
Property and equipment are stated at cost. Depreciation of property and equipment is calculated on a straight-line basis over the estimated useful
lives of the assets ranging as stated below:

24

From November 1, 2015 to April 30, 2016

From May 1, 2015 to October 31, 2015

Buildings and structures

2-49 years

2-49 years

Machinery and equipment

3-17 years

3-17 years

Tools, furniture and fixtures

3-20 years

3-20 years

25(C) UNIT ISSUANCE COSTS
Unit issuance costs are amortized over a period of three years under the straight-line method.

3.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consisted of the following as of April 30, 2016 and: October 31, 2015

(D) CORPORATE BOND ISSUANCE COSTS
In thousands of yen

Corporate bond issuance costs are amortized over a maturity period under the straight-line method.
As of April 30, 2016

(E) ACCOUNTING TREATMENT OF TRUST BENEFICIARY INTERESTS IN REAL ESTATE
For trust beneficiary interests in real estate, which are commonly utilized in the ownership of commercial properties in Japan, all assets and liabilities in trust are recorded in the relevant balance sheets and statements of income and retained earnings.

Cash and bank deposits

As of October 31, 2015

¥20,602,996

Restricted bank deposits (Note)
Cash and cash equivalents¥22,587,773(1,427,453)(827,192)¥19,175,543¥21,760,581

Note: Restricted bank deposits are retained for repayment of tenant leasehold and security deposits.

(F) GROUND LEASEHOLD
Fixed term leaseholds on the building and special agreements on building sales are amortized over a contractual period of 48 years and 9 months
under the straight-line method.

4.

SCHEDULE OF PROPERTY AND EQUIPMENT
In millions of yen(G) REVENUE RECOGNITION
Operating revenues consist of rental revenues including base rents, common area charges, and other operating revenues, which include utility
charge reimbursements, parking space rental revenues and other miscellaneous revenues. Rental revenues are generally recognized on an accrualbasis over the life of each lease. Utility charge reimbursements are recognized when earned and their amounts can be reasonably estimated.
Reimbursements from tenants including utility charge reimbursements are recorded on a gross basis and such amounts are recorded both as revenues and expenses during the fiscal period.

As of April 30, 2016
Acquisition
costs

Acquisition
costs

Accumulated
depreciation

Book
value

¥273,049¥—¥273,049¥271,538¥—¥271,538

Buildings and structures

136,423

26,134110,289

132,688

24,428108,260

Machinery and equipment

2,042

895

1,147

1,905

835

1,070

Tools, furniture and fixtures
Total

5.

514

266

248

504

259

245

¥412,028¥27,295¥384,733¥406,635¥25,522¥381,113SHORT-TERM DEBT, LONG-TERM DEBT AND CORPORATE BONDS

The following summarizes short-term debt, long-term debt and corporate bonds outstanding as of April 30, 2016:
Classification

Short-term debt
Current portion of long-term debt

Drawdown date

Last
repayment date

Weighted-averageinterest rate

July 31, 2015

July 31, 2016

0.51%

March 31, 2016

March 31, 2017

0.45%

Balance(In millions of yen)

¥

1,000
1,500

July 31, 2013

July 29, 2016

0.57%

December 26, 2011

October 31, 2016

1.42%

2,500

(I) INCOME TAXES

December 26, 2011

October 31, 2016

1.44%

2,500

Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets and liabilities using the statutory tax rates.

December 26, 2011

October 31, 2016

1.44%

2,000

October 31, 2012

October 31, 2016

1.06%

2,500

October 31, 2012

October 31, 2016

1.05%

1,500

(J) CONSUMPTION TAXES

November 12, 2015

November 30, 2016

0.49%

2,000

March 28, 2012

March 28, 2017

1.36%

500

December 10, 2012

December 12, 2016

0.98%

500

December 28, 2012

December 28, 2016

1.01%

2,000

(K) DERIVATIVE FINANCIAL INSTRUMENTS

January 15, 2013

January 15, 2017

0.97%

1,000

The Investment Corporation utilizes interest-rate swap and interest-rate cap contracts as derivative financial instruments only for the purpose ofhedging its exposure to changes in interest rates. The Investment Corporation deferred recognition of gains or losses resulting from changes infair value of interest-rate swap and interest-rate cap contracts because these contracts met the criteria for deferral hedging accounting. However,the Investment Corporation adopted special treatment for interest-swap and interest-rate cap contracts if they met the criteria for hedging
accounting under this treatment, whereby the net amount to be paid or received under the interest-rate swap and interest-rate cap contract is
added to or deducted from the interest on the assets or liabilities for which the swap and cap contract was executed. The hedge effectiveness forthe interest-rate swap and interest-rate cap contract is assessed each fiscal period except for those that meet the criteria of special treatment.

January 31, 2014

January 31, 2017

0.67%

Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Non-deductible consumption taxes applicableto the acquisition of assets are included in the cost of acquisition for each asset.

26

As of October 31, 2015
Book
value

Land

(H) TAXES ON PROPERTY AND EQUIPMENT
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar year
basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to the said period.
Under Japanese tax rules, the seller of property at the time of disposal is liable for these taxes on the property from the date of disposal to theend of the calendar year in which the property is disposed. The seller, however, is reimbursed by the purchaser for these accrued property-related
tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of the property-related
taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to ¥83,802 thousandand ¥13,308 thousand as of April 30, 2016 and October 31, 2015 respectively. In subsequent calendar years, such property-related taxes arecharged as operating expenses in the fiscal period to which the installments of such taxes correspond.

Accumulated
depreciation

¥

1,200

SubtotalLong-term debt

1,500

22,200November 12, 2010

November 12, 2017

2.02%

December 1, 2010

November 12, 2017

2.21%

¥

2,300
700

March 28, 2012

March 28, 2019

1.77%

1,400

March 28, 2012

March 28, 2019

1.77%

1,000

June 29, 2012

June 30, 2017

1.29%

1,500

September 21, 2012

September 21, 2017

1.16%

5,000

(L) CASH AND CASH EQUIVALENTS

September 21, 2012

September 21, 2017

1.16%

1,000

Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid, readily convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of purchase.

September 21, 2012

September 21, 2017

1.16%

1,000

October 31, 2012

October 31, 2017

1.10%

2,500

October 31, 2012

October 31, 2018

1.25%

2,500

(M) ROUNDING OF AMOUNTS PRESENTED

December 28, 2012

December 28, 2017

1.09%

500

Amounts have been truncated in the Japanese financial statements prepared in accordance with Japanese GAAP and filed with regulatory
authorities in Japan, whereas amounts have been rounded to the nearest million in the accompanying financial statements. Totals shown in theaccompanying financial statements do not necessarily agree with the sums of the individual amounts.

December 28, 2012

December 29, 2017

1.09%

500

March 26, 2013

March 26, 2018

1.04%

1,000

March 26, 2013

March 26, 2018

1.04%

1,000

July 31, 2013

July 31, 2018

0.67%

500

27

(C) UNIT ISSUANCE COSTS
Unit issuance costs are amortized over a period of three years under the straight-line method.

3.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consisted of the following as of April 30, 2016 and: October 31, 2015

(D) CORPORATE BOND ISSUANCE COSTS
In thousands of yen

Corporate bond issuance costs are amortized over a maturity period under the straight-line method.
As of April 30, 2016

(E) ACCOUNTING TREATMENT OF TRUST BENEFICIARY INTERESTS IN REAL ESTATE
For trust beneficiary interests in real estate, which are commonly utilized in the ownership of commercial properties in Japan, all assets and liabilities in trust are recorded in the relevant balance sheets and statements of income and retained earnings.

Cash and bank deposits

As of October 31, 2015

¥20,602,996

Restricted bank deposits (Note)
Cash and cash equivalents¥22,587,773(1,427,453)(827,192)¥19,175,543¥21,760,581

Note: Restricted bank deposits are retained for repayment of tenant leasehold and security deposits.

(F) GROUND LEASEHOLD
Fixed term leaseholds on the building and special agreements on building sales are amortized over a contractual period of 48 years and 9 months
under the straight-line method.

4.

SCHEDULE OF PROPERTY AND EQUIPMENT
In millions of yen(G) REVENUE RECOGNITION
Operating revenues consist of rental revenues including base rents, common area charges, and other operating revenues, which include utility
charge reimbursements, parking space rental revenues and other miscellaneous revenues. Rental revenues are generally recognized on an accrualbasis over the life of each lease. Utility charge reimbursements are recognized when earned and their amounts can be reasonably estimated.
Reimbursements from tenants including utility charge reimbursements are recorded on a gross basis and such amounts are recorded both as revenues and expenses during the fiscal period.

As of April 30, 2016
Acquisition
costs

Acquisition
costs

Accumulated
depreciation

Book
value

¥273,049¥—¥273,049¥271,538¥—¥271,538

Buildings and structures

136,423

26,134110,289

132,688

24,428108,260

Machinery and equipment

2,042

895

1,147

1,905

835

1,070

Tools, furniture and fixtures
Total

5.

514

266

248

504

259

245

¥412,028¥27,295¥384,733¥406,635¥25,522¥381,113SHORT-TERM DEBT, LONG-TERM DEBT AND CORPORATE BONDS

The following summarizes short-term debt, long-term debt and corporate bonds outstanding as of April 30, 2016:
Classification

Short-term debt
Current portion of long-term debt

Drawdown date

Last
repayment date

Weighted-averageinterest rate

July 31, 2015

July 31, 2016

0.51%

March 31, 2016

March 31, 2017

0.45%

Balance(In millions of yen)

¥

1,000
1,500

July 31, 2013

July 29, 2016

0.57%

December 26, 2011

October 31, 2016

1.42%

2,500

(I) INCOME TAXES

December 26, 2011

October 31, 2016

1.44%

2,500

Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets and liabilities using the statutory tax rates.

December 26, 2011

October 31, 2016

1.44%

2,000

October 31, 2012

October 31, 2016

1.06%

2,500

October 31, 2012

October 31, 2016

1.05%

1,500

(J) CONSUMPTION TAXES

November 12, 2015

November 30, 2016

0.49%

2,000

March 28, 2012

March 28, 2017

1.36%

500

December 10, 2012

December 12, 2016

0.98%

500

December 28, 2012

December 28, 2016

1.01%

2,000

(K) DERIVATIVE FINANCIAL INSTRUMENTS

January 15, 2013

January 15, 2017

0.97%

1,000

The Investment Corporation utilizes interest-rate swap and interest-rate cap contracts as derivative financial instruments only for the purpose ofhedging its exposure to changes in interest rates. The Investment Corporation deferred recognition of gains or losses resulting from changes infair value of interest-rate swap and interest-rate cap contracts because these contracts met the criteria for deferral hedging accounting. However,the Investment Corporation adopted special treatment for interest-swap and interest-rate cap contracts if they met the criteria for hedging
accounting under this treatment, whereby the net amount to be paid or received under the interest-rate swap and interest-rate cap contract is
added to or deducted from the interest on the assets or liabilities for which the swap and cap contract was executed. The hedge effectiveness forthe interest-rate swap and interest-rate cap contract is assessed each fiscal period except for those that meet the criteria of special treatment.

January 31, 2014

January 31, 2017

0.67%

Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Non-deductible consumption taxes applicableto the acquisition of assets are included in the cost of acquisition for each asset.

26

As of October 31, 2015
Book
value

Land

(H) TAXES ON PROPERTY AND EQUIPMENT
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar year
basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to the said period.
Under Japanese tax rules, the seller of property at the time of disposal is liable for these taxes on the property from the date of disposal to theend of the calendar year in which the property is disposed. The seller, however, is reimbursed by the purchaser for these accrued property-related
tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of the property-related
taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to ¥83,802 thousandand ¥13,308 thousand as of April 30, 2016 and October 31, 2015 respectively. In subsequent calendar years, such property-related taxes arecharged as operating expenses in the fiscal period to which the installments of such taxes correspond.

Accumulated
depreciation

¥

1,200

SubtotalLong-term debt

1,500

22,200November 12, 2010

November 12, 2017

2.02%

December 1, 2010

November 12, 2017

2.21%

¥

2,300
700

March 28, 2012

March 28, 2019

1.77%

1,400

March 28, 2012

March 28, 2019

1.77%

1,000

June 29, 2012

June 30, 2017

1.29%

1,500

September 21, 2012

September 21, 2017

1.16%

5,000

(L) CASH AND CASH EQUIVALENTS

September 21, 2012

September 21, 2017

1.16%

1,000

Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid, readily convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of purchase.

September 21, 2012

September 21, 2017

1.16%

1,000

October 31, 2012

October 31, 2017

1.10%

2,500

October 31, 2012

October 31, 2018

1.25%

2,500

(M) ROUNDING OF AMOUNTS PRESENTED

December 28, 2012

December 28, 2017

1.09%

500

Amounts have been truncated in the Japanese financial statements prepared in accordance with Japanese GAAP and filed with regulatory
authorities in Japan, whereas amounts have been rounded to the nearest million in the accompanying financial statements. Totals shown in theaccompanying financial statements do not necessarily agree with the sums of the individual amounts.

December 28, 2012

December 29, 2017

1.09%

500

March 26, 2013

March 26, 2018

1.04%

1,000

March 26, 2013

March 26, 2018

1.04%

1,000

July 31, 2013

July 31, 2018

0.67%

500

27

Classification

Long-term debt

28

Drawdown date

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)

¥

1,000

Classification

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)August 19, 2013

August 19, 2018

0.95%

February 18, 2015

February 28, 2025

1.31%

August 19, 2013

August 19, 2018

0.95%

1,000

February 27, 2015

February 28, 2025

1.15%

August 19, 2013

August 19, 2018

0.95%

500

March 12, 2015

February 28, 2025

1.22%

1,000

August 19, 2013

August 19, 2018

0.95%

500

March 31, 2015

March 31, 2025

1.27%

2,500

August 19, 2013

August 19, 2018

0.97%

500

April 30, 2015

April 30, 2022

0.83%

2,300

August 30, 2013

August 31, 2018

1.08%

700

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2018

1.08%

500

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2018

1.08%

300

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2020

1.42%

1,500

August 31, 2015

August 31, 2022

0.87%

500

September 30, 2013

September 30, 2019

1.06%

1,800

August 31, 2015

August 31, 2022

0.87%

500

September 30, 2013

September 30, 2019

1.06%

900

August 31, 2015

August 31, 2022

0.87%

500

October 31, 2013

October 31, 2018

0.89%

500

September 30, 2015

September 30, 2024

1.07%

2,000

November 12, 2013

November 12, 2018

0.82%

1,000

October 30, 2015

October 31, 2024

0.99%

1,000

November 12, 2013

November 12, 2020

1.07%

2,000

October 30, 2015

October 30, 2025

1.11%

1,500

November 12, 2013

November 12, 2020

1.07%

500

October 30, 2015

October 30, 2025

1.11%

2,000

November 29, 2013

November 30, 2020

1.12%

1,000

October 30, 2015

October 30, 2025

1.11%

2,500

November 29, 2013

November 30, 2020

1.12%

900

October 30, 2015

October 30, 2025

1.12%

2,500

November 29, 2013

November 30, 2018

0.84%

200

November 12, 2015

November 30, 2025

1.17%

1,000

January 10, 2014

January 31, 2021

1.21%

1,300

January 29, 2016

January 31, 2022

0.59%

2,500

January 31, 2014

January 31, 2021

1.13%

2,300

January 29, 2016

January 31, 2022

0.64%

500

January 31, 2014

January 31, 2020

0.93%

3,700

January 29, 2016

January 29, 2026

1.07%

2,000

March 12, 2014

March 12, 2018

0.75%

2,250

January 29, 2016

January 29, 2026

1.02%

1,800

March 12, 2014

March 31, 2019

0.78%

450

February 18, 2016

February 18, 2026

1.00%

1,000

March 12, 2014

March 12, 2020

0.92%

1,800

February 18, 2016

February 18, 2026

1.00%

500

March 12, 2014

March 12, 2023

1.36%

1,800

March 30, 2016

March 31, 2019

0.17%

1,000

March 20, 2014

March 12, 2020

0.91%

3,000

March 31, 2016

March 31, 2026

0.90%

1,000

March 20, 2014

September 20, 2021

1.01%

4,000

April 28, 2016

April 30, 2024

0.65%

2,000

March 20, 2014

March 20, 2022

1.20%

3,000

April 28, 2016

April 30, 2026

0.84%

2,000

March 20, 2014

March 12, 2023

1.35%

2,000

April 28, 2016

April 30, 2026

0.87%

March 31, 2014

March 31, 2019

0.76%

2,500

April 22, 2014

October 31, 2020

0.95%

2,900

July 10, 2014

July 10, 2019

0.64%

500

July 10, 2014

July 10, 2021

0.90%

2,000

March 8, 2012

September 8, 2017

2.00%

July 10, 2014

July 10, 2021

0.90%

500

September 12, 2013

September 12, 2018

1.00%

1,800

July 14, 2014

July 31, 2019

0.68%

1,000

July 25, 2014

July 25, 2024

1.18%

2,000

July 31, 2014

July 31, 2019

0.62%

1,000

April 28, 2016

April 28, 2028

0.90%

July 31, 2014

July 31, 2020

0.74%

2,700

Subtotal

6,300

July 31, 2014

October 31, 2020

0.76%

300

Total

¥175,100

July 31, 2014

July 31, 2022

1.01%

2,200

August 29, 2014

July 31, 2019

0.65%

1,000

September 1, 2014

August 31, 2021

0.89%

800

September 1, 2014

August 31, 2021

0.89%

500

September 3, 2014

August 31, 2022

0.98%

1,000

September 3, 2014

August 31, 2022

0.98%

950

September 22, 2014

September 30, 2020

0.80%

2,700

September 30, 2014

September 30, 2021

0.89%

October 31, 2014

October 31, 2021

0.80%

October 31, 2014

October 31, 2023

October 31, 2014

Long-term debt

Drawdown date

¥

1,250
2,100

1,000

Subtotal

143,600

Current portion of Corporate bonds

March 15, 2007

March 15, 2017

2.37%

¥

Subtotal

3,000
3,000

Corporate bonds

1,500

1,000

The following summarizes short-term debt, long-term debt and corporate bonds outstanding as of October 31, 2015:
Classification

Short-term debt

Drawdown date

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)

April 2, 2015

March 31, 2016

0.53%

July 31, 2015

July 31, 2016

0.53%

November 12, 2010

November 12, 2015

1.79%

1,000

November 12, 2010

November 12, 2015

1.79%

800

3,000

December 1, 2010

November 12, 2015

1.32%

800

1.07%

2,000

December 1, 2010

November 12, 2015

1.32%

200

October 31, 2023

1.13%

1,500

January 31, 2011

January 29, 2016

1.94%

800

October 31, 2014

October 31, 2023

1.07%

1,000

February 28, 2011

January 29, 2016

1.95%

500

October 31, 2014

October 31, 2024

1.26%

2,000

March 31, 2011

January 29, 2016

1.91%

2,000

October 31, 2014

October 31, 2024

1.26%

1,000

April 28, 2011

January 29, 2016

1.89%

1,000

January 30, 2015

January 31, 2021

0.71%

1,500

January 10, 2012

January 29, 2016

1.27%

2,500

January 30, 2015

January 31, 2025

1.16%

1,500

February 18, 2013

February 18, 2016

0.84%

1,500

February 18, 2015

February 28, 2022

0.91%

1,250

March 31, 2011

March 31, 2016

1.22%

1,000

February 18, 2015

February 28, 2022

0.91%

350

May 1, 2006

April 30, 2016

2.73%

5,000

February 18, 2015

February 29, 2024

1.16%

1,700

April 30, 2013

April 30, 2016

0.67%

1,000

Current portion of long-term debt

¥

1,500
1,000

¥

1,200

29

Classification

Long-term debt

28

Drawdown date

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)

¥

1,000

Classification

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)August 19, 2013

August 19, 2018

0.95%

February 18, 2015

February 28, 2025

1.31%

August 19, 2013

August 19, 2018

0.95%

1,000

February 27, 2015

February 28, 2025

1.15%

August 19, 2013

August 19, 2018

0.95%

500

March 12, 2015

February 28, 2025

1.22%

1,000

August 19, 2013

August 19, 2018

0.95%

500

March 31, 2015

March 31, 2025

1.27%

2,500

August 19, 2013

August 19, 2018

0.97%

500

April 30, 2015

April 30, 2022

0.83%

2,300

August 30, 2013

August 31, 2018

1.08%

700

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2018

1.08%

500

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2018

1.08%

300

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2020

1.42%

1,500

August 31, 2015

August 31, 2022

0.87%

500

September 30, 2013

September 30, 2019

1.06%

1,800

August 31, 2015

August 31, 2022

0.87%

500

September 30, 2013

September 30, 2019

1.06%

900

August 31, 2015

August 31, 2022

0.87%

500

October 31, 2013

October 31, 2018

0.89%

500

September 30, 2015

September 30, 2024

1.07%

2,000

November 12, 2013

November 12, 2018

0.82%

1,000

October 30, 2015

October 31, 2024

0.99%

1,000

November 12, 2013

November 12, 2020

1.07%

2,000

October 30, 2015

October 30, 2025

1.11%

1,500

November 12, 2013

November 12, 2020

1.07%

500

October 30, 2015

October 30, 2025

1.11%

2,000

November 29, 2013

November 30, 2020

1.12%

1,000

October 30, 2015

October 30, 2025

1.11%

2,500

November 29, 2013

November 30, 2020

1.12%

900

October 30, 2015

October 30, 2025

1.12%

2,500

November 29, 2013

November 30, 2018

0.84%

200

November 12, 2015

November 30, 2025

1.17%

1,000

January 10, 2014

January 31, 2021

1.21%

1,300

January 29, 2016

January 31, 2022

0.59%

2,500

January 31, 2014

January 31, 2021

1.13%

2,300

January 29, 2016

January 31, 2022

0.64%

500

January 31, 2014

January 31, 2020

0.93%

3,700

January 29, 2016

January 29, 2026

1.07%

2,000

March 12, 2014

March 12, 2018

0.75%

2,250

January 29, 2016

January 29, 2026

1.02%

1,800

March 12, 2014

March 31, 2019

0.78%

450

February 18, 2016

February 18, 2026

1.00%

1,000

March 12, 2014

March 12, 2020

0.92%

1,800

February 18, 2016

February 18, 2026

1.00%

500

March 12, 2014

March 12, 2023

1.36%

1,800

March 30, 2016

March 31, 2019

0.17%

1,000

March 20, 2014

March 12, 2020

0.91%

3,000

March 31, 2016

March 31, 2026

0.90%

1,000

March 20, 2014

September 20, 2021

1.01%

4,000

April 28, 2016

April 30, 2024

0.65%

2,000

March 20, 2014

March 20, 2022

1.20%

3,000

April 28, 2016

April 30, 2026

0.84%

2,000

March 20, 2014

March 12, 2023

1.35%

2,000

April 28, 2016

April 30, 2026

0.87%

March 31, 2014

March 31, 2019

0.76%

2,500

April 22, 2014

October 31, 2020

0.95%

2,900

July 10, 2014

July 10, 2019

0.64%

500

July 10, 2014

July 10, 2021

0.90%

2,000

March 8, 2012

September 8, 2017

2.00%

July 10, 2014

July 10, 2021

0.90%

500

September 12, 2013

September 12, 2018

1.00%

1,800

July 14, 2014

July 31, 2019

0.68%

1,000

July 25, 2014

July 25, 2024

1.18%

2,000

July 31, 2014

July 31, 2019

0.62%

1,000

April 28, 2016

April 28, 2028

0.90%

July 31, 2014

July 31, 2020

0.74%

2,700

Subtotal

6,300

July 31, 2014

October 31, 2020

0.76%

300

Total

¥175,100

July 31, 2014

July 31, 2022

1.01%

2,200

August 29, 2014

July 31, 2019

0.65%

1,000

September 1, 2014

August 31, 2021

0.89%

800

September 1, 2014

August 31, 2021

0.89%

500

September 3, 2014

August 31, 2022

0.98%

1,000

September 3, 2014

August 31, 2022

0.98%

950

September 22, 2014

September 30, 2020

0.80%

2,700

September 30, 2014

September 30, 2021

0.89%

October 31, 2014

October 31, 2021

0.80%

October 31, 2014

October 31, 2023

October 31, 2014

Long-term debt

Drawdown date

¥

1,250
2,100

1,000

Subtotal

143,600

Current portion of Corporate bonds

March 15, 2007

March 15, 2017

2.37%

¥

Subtotal

3,000
3,000

Corporate bonds

1,500

1,000

The following summarizes short-term debt, long-term debt and corporate bonds outstanding as of October 31, 2015:
Classification

Short-term debt

Drawdown date

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)

April 2, 2015

March 31, 2016

0.53%

July 31, 2015

July 31, 2016

0.53%

November 12, 2010

November 12, 2015

1.79%

1,000

November 12, 2010

November 12, 2015

1.79%

800

3,000

December 1, 2010

November 12, 2015

1.32%

800

1.07%

2,000

December 1, 2010

November 12, 2015

1.32%

200

October 31, 2023

1.13%

1,500

January 31, 2011

January 29, 2016

1.94%

800

October 31, 2014

October 31, 2023

1.07%

1,000

February 28, 2011

January 29, 2016

1.95%

500

October 31, 2014

October 31, 2024

1.26%

2,000

March 31, 2011

January 29, 2016

1.91%

2,000

October 31, 2014

October 31, 2024

1.26%

1,000

April 28, 2011

January 29, 2016

1.89%

1,000

January 30, 2015

January 31, 2021

0.71%

1,500

January 10, 2012

January 29, 2016

1.27%

2,500

January 30, 2015

January 31, 2025

1.16%

1,500

February 18, 2013

February 18, 2016

0.84%

1,500

February 18, 2015

February 28, 2022

0.91%

1,250

March 31, 2011

March 31, 2016

1.22%

1,000

February 18, 2015

February 28, 2022

0.91%

350

May 1, 2006

April 30, 2016

2.73%

5,000

February 18, 2015

February 29, 2024

1.16%

1,700

April 30, 2013

April 30, 2016

0.67%

1,000

Current portion of long-term debt

¥

1,500
1,000

¥

1,200

29

Classification

Current portion of long-term debt

Drawdown date

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)¥

Long-term debt

30

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)

July 31, 2013

July 29, 2016

0.57%

April 22, 2014

October 31, 2020

0.95%

October 31, 2016

1.44%

2,500

July 10, 2014

July 10, 2019

0.64%

500

December 26, 2011

October 31, 2016

1.42%

2,500

July 10, 2014

July 10, 2021

0.90%

2,000

December 26, 2011

October 31, 2016

1.44%

2,000

July 10, 2014

July 10, 2021

0.90%

500

October 31, 2012

October 31, 2016

1.06%

2,500

July 14, 2014

July 31, 2019

0.68%

1,000

October 31, 2012

October 31, 2016

1.05%
¥

Long-term debt

Drawdown date

December 26, 2011

Subtotal

1,500Classification

¥

2,900

1,500

July 31, 2014

July 31, 2019

0.62%

1,000

33,300July 31, 2014

July 31, 2020

0.74%

2,700

2,300

July 31, 2014

October 31, 2020

0.76%

300

700

July 31, 2014

July 31, 2022

1.01%

2,200

November 12, 2010

November 12, 2017

2.02%

December 1, 2010

November 12, 2017

2.21%

March 28, 2012

March 28, 2017

1.36%

500

August 29, 2014

July 31, 2019

0.65%

1,000

March 28, 2012

March 28, 2019

1.77%

1,400

September 1, 2014

August 31, 2021

0.89%

800

March 28, 2012

March 28, 2019

1.77%

1,000

September 1, 2014

August 31, 2021

0.89%

500

June 29, 2012

June 30, 2017

1.29%

1,500

September 3, 2014

August 31, 2022

0.98%

1,000

September 21, 2012

September 21, 2017

1.16%

5,000

September 3, 2014

August 31, 2022

0.98%

950

September 21, 2012

September 21, 2017

1.16%

1,000

September 22, 2014

September 30, 2020

0.80%

2,700

September 21, 2012

September 21, 2017

1.16%

1,000

September 30, 2014

September 30, 2021

0.89%

1,000

October 31, 2012

October 31, 2017

1.10%

2,500

October 31, 2014

October 31, 2021

0.80%

3,000

October 31, 2012

October 31, 2018

1.25%

2,500

October 31, 2014

October 31, 2023

1.07%

2,000

December 10, 2012

December 12, 2016

0.98%

500

October 31, 2014

October 31, 2023

1.13%

1,500

December 28, 2012

December 28, 2016

1.01%

2,000

October 31, 2014

October 31, 2023

1.07%

1,000

December 28, 2012

December 28, 2017

1.09%

500

October 31, 2014

October 31, 2024

1.26%

2,000

December 28, 2012

December 29, 2017

1.09%

500

October 31, 2014

October 31, 2024

1.26%

1,000

January 15, 2013

January 15, 2017

0.97%

1,000

January 30, 2015

January 31, 2021

0.71%

1,500

March 26, 2013

March 26, 2018

1.04%

1,000

January 30, 2015

January 31, 2025

1.16%

1,500

March 26, 2013

March 26, 2018

1.04%

1,000

February 18, 2015

February 28, 2022

0.91%

1,250

July 31, 2013

July 31, 2018

0.67%

500

February 18, 2015

February 28, 2022

0.91%

350

August 19, 2013

August 19, 2018

0.95%

1,000

February 18, 2015

February 29, 2024

1.16%

1,700

August 19, 2013

August 19, 2018

0.95%

1,000

February 18, 2015

February 28, 2025

1.31%

1,250

August 19, 2013

August 19, 2018

0.95%

500

February 27, 2015

February 28, 2025

1.15%

2,100

August 19, 2013

August 19, 2018

0.97%

500

March 12, 2015

February 28, 2025

1.22%

1,000

August 19, 2013

August 19, 2018

0.95%

500

March 31, 2015

March 31, 2025

1.27%

2,500

August 30, 2013

August 31, 2018

1.08%

700

April 30, 2015

April 30, 2022

0.83%

2,300

August 30, 2013

August 31, 2018

1.08%

500

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2018

1.08%

300

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2020

1.42%

1,500

August 31, 2015

August 31, 2022

0.87%

500

September 30, 2013

September 30, 2019

1.06%

1,800

August 31, 2015

August 31, 2022

0.87%

500

September 30, 2013

September 30, 2019

1.06%

900

August 31, 2015

August 31, 2022

0.87%

500

October 31, 2013

October 31, 2018

0.89%

500

August 31, 2015

August 31, 2022

0.87%

500

November 12, 2013

November 12, 2018

0.82%

1,000

September 30, 2015

September 30, 2024

1.06%

2,000

November 12, 2013

November 12, 2020

1.07%

2,000

October 30, 2015

October 31, 2024

0.99%

1,000

November 12, 2013

November 12, 2020

1.07%

500

October 30, 2015

October 30, 2025

1.11%

1,500

November 29, 2013

November 30, 2018

0.84%

200

October 30, 2015

October 30, 2025

1.11%

2,000

November 29, 2013

November 30, 2020

1.12%

1,000

October 30, 2015

October 30, 2025

1.11%

2,500

November 29, 2013

November 30, 2020

1.12%

900

October 30, 2015

October 30, 2025

1.12%

2,500

January 10, 2014

January 31, 2021

1.21%

1,300

January 31, 2014

January 31, 2017

0.67%

1,200

March 15, 2007

March 15, 2017

2.37%

January 31, 2014

January 31, 2020

0.93%

3,700

March 8, 2012

September 8, 2017

2.00%

January 31, 2014

January 31, 2021

1.13%

2,300

September 12, 2013

September 12, 2018

1.00%

1,800

March 12, 2014

March 12, 2018

0.75%

2,250

July 25, 2014

July 25, 2024

1.18%

2,000

March 12, 2014

March 31, 2019

0.78%

450

Subtotal

8,300

March 12, 2014

March 12, 2020

0.92%

1,800

Total

¥174,100

March 12, 2014

March 12, 2023

1.36%

1,800

March 20, 2014

March 12, 2020

0.91%

3,000

March 20, 2014

September 20, 2021

1.01%

4,000

March 20, 2014

March 20, 2022

1.20%

3,000

March 20, 2014

March 12, 2023

1.35%

2,000

March 31, 2014

March 31, 2019

0.76%

2,500

Subtotal
Corporate bonds

132,500
¥

3,000
1,500

31

Classification

Current portion of long-term debt

Drawdown date

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)¥

Long-term debt

30

Last
repayment date

Weighted-averageinterest rate

Balance(In millions of yen)

July 31, 2013

July 29, 2016

0.57%

April 22, 2014

October 31, 2020

0.95%

October 31, 2016

1.44%

2,500

July 10, 2014

July 10, 2019

0.64%

500

December 26, 2011

October 31, 2016

1.42%

2,500

July 10, 2014

July 10, 2021

0.90%

2,000

December 26, 2011

October 31, 2016

1.44%

2,000

July 10, 2014

July 10, 2021

0.90%

500

October 31, 2012

October 31, 2016

1.06%

2,500

July 14, 2014

July 31, 2019

0.68%

1,000

October 31, 2012

October 31, 2016

1.05%
¥

Long-term debt

Drawdown date

December 26, 2011

Subtotal

1,500Classification

¥

2,900

1,500

July 31, 2014

July 31, 2019

0.62%

1,000

33,300July 31, 2014

July 31, 2020

0.74%

2,700

2,300

July 31, 2014

October 31, 2020

0.76%

300

700

July 31, 2014

July 31, 2022

1.01%

2,200

November 12, 2010

November 12, 2017

2.02%

December 1, 2010

November 12, 2017

2.21%

March 28, 2012

March 28, 2017

1.36%

500

August 29, 2014

July 31, 2019

0.65%

1,000

March 28, 2012

March 28, 2019

1.77%

1,400

September 1, 2014

August 31, 2021

0.89%

800

March 28, 2012

March 28, 2019

1.77%

1,000

September 1, 2014

August 31, 2021

0.89%

500

June 29, 2012

June 30, 2017

1.29%

1,500

September 3, 2014

August 31, 2022

0.98%

1,000

September 21, 2012

September 21, 2017

1.16%

5,000

September 3, 2014

August 31, 2022

0.98%

950

September 21, 2012

September 21, 2017

1.16%

1,000

September 22, 2014

September 30, 2020

0.80%

2,700

September 21, 2012

September 21, 2017

1.16%

1,000

September 30, 2014

September 30, 2021

0.89%

1,000

October 31, 2012

October 31, 2017

1.10%

2,500

October 31, 2014

October 31, 2021

0.80%

3,000

October 31, 2012

October 31, 2018

1.25%

2,500

October 31, 2014

October 31, 2023

1.07%

2,000

December 10, 2012

December 12, 2016

0.98%

500

October 31, 2014

October 31, 2023

1.13%

1,500

December 28, 2012

December 28, 2016

1.01%

2,000

October 31, 2014

October 31, 2023

1.07%

1,000

December 28, 2012

December 28, 2017

1.09%

500

October 31, 2014

October 31, 2024

1.26%

2,000

December 28, 2012

December 29, 2017

1.09%

500

October 31, 2014

October 31, 2024

1.26%

1,000

January 15, 2013

January 15, 2017

0.97%

1,000

January 30, 2015

January 31, 2021

0.71%

1,500

March 26, 2013

March 26, 2018

1.04%

1,000

January 30, 2015

January 31, 2025

1.16%

1,500

March 26, 2013

March 26, 2018

1.04%

1,000

February 18, 2015

February 28, 2022

0.91%

1,250

July 31, 2013

July 31, 2018

0.67%

500

February 18, 2015

February 28, 2022

0.91%

350

August 19, 2013

August 19, 2018

0.95%

1,000

February 18, 2015

February 29, 2024

1.16%

1,700

August 19, 2013

August 19, 2018

0.95%

1,000

February 18, 2015

February 28, 2025

1.31%

1,250

August 19, 2013

August 19, 2018

0.95%

500

February 27, 2015

February 28, 2025

1.15%

2,100

August 19, 2013

August 19, 2018

0.97%

500

March 12, 2015

February 28, 2025

1.22%

1,000

August 19, 2013

August 19, 2018

0.95%

500

March 31, 2015

March 31, 2025

1.27%

2,500

August 30, 2013

August 31, 2018

1.08%

700

April 30, 2015

April 30, 2022

0.83%

2,300

August 30, 2013

August 31, 2018

1.08%

500

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2018

1.08%

300

August 31, 2015

August 31, 2022

0.87%

500

August 30, 2013

August 31, 2020

1.42%

1,500

August 31, 2015

August 31, 2022

0.87%

500

September 30, 2013

September 30, 2019

1.06%

1,800

August 31, 2015

August 31, 2022

0.87%

500

September 30, 2013

September 30, 2019

1.06%

900

August 31, 2015

August 31, 2022

0.87%

500

October 31, 2013

October 31, 2018

0.89%

500

August 31, 2015

August 31, 2022

0.87%

500

November 12, 2013

November 12, 2018

0.82%

1,000

September 30, 2015

September 30, 2024

1.06%

2,000

November 12, 2013

November 12, 2020

1.07%

2,000

October 30, 2015

October 31, 2024

0.99%

1,000

November 12, 2013

November 12, 2020

1.07%

500

October 30, 2015

October 30, 2025

1.11%

1,500

November 29, 2013

November 30, 2018

0.84%

200

October 30, 2015

October 30, 2025

1.11%

2,000

November 29, 2013

November 30, 2020

1.12%

1,000

October 30, 2015

October 30, 2025

1.11%

2,500

November 29, 2013

November 30, 2020

1.12%

900

October 30, 2015

October 30, 2025

1.12%

2,500

January 10, 2014

January 31, 2021

1.21%

1,300

January 31, 2014

January 31, 2017

0.67%

1,200

March 15, 2007

March 15, 2017

2.37%

January 31, 2014

January 31, 2020

0.93%

3,700

March 8, 2012

September 8, 2017

2.00%

January 31, 2014

January 31, 2021

1.13%

2,300

September 12, 2013

September 12, 2018

1.00%

1,800

March 12, 2014

March 12, 2018

0.75%

2,250

July 25, 2014

July 25, 2024

1.18%

2,000

March 12, 2014

March 31, 2019

0.78%

450

Subtotal

8,300

March 12, 2014

March 12, 2020

0.92%

1,800

Total

¥174,100

March 12, 2014

March 12, 2023

1.36%

1,800

March 20, 2014

March 12, 2020

0.91%

3,000

March 20, 2014

September 20, 2021

1.01%

4,000

March 20, 2014

March 20, 2022

1.20%

3,000

March 20, 2014

March 12, 2023

1.35%

2,000

March 31, 2014

March 31, 2019

0.76%

2,500

Subtotal
Corporate bonds

132,500
¥

3,000
1,500

31

6.

9.

REDUCTION ENTRY

The amount of reduction entry of property and equipment acquired by government subsidy
In thousands of yen
As of April 30, 2016

As of October 31, 2015

¥26,230¥26,230

Buildings and structures

7.

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

10.

RELATED-PARTY TRANSACTIONS
1. PARENT COMPANY, CORPORATE UNITHOLDERS’ AND OTHERPER UNIT INFORMATION

Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015): Not applicable
Yen
From November 1, 2015
to April 30, 2016

From May 1, 2015
to October 31, 2015

Net asset value per unit

¥524,977¥523,395

Net income per unit

¥ 11,893¥ 11,273

Weighted average number of units (units)404,885

404,885

The weighted average number of units outstanding of 404,885 as of April 30, 2016 and October 31, 2015, respectively was used for the computation of the amount of net income per unit. Net income per unit after adjusting for residual units is not included because there were no residual
investment units.

8.

2. AFFILIATED COMPANIES AND OTHER
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015): Not applicable

3. FELLOW SUBSIDIARY COMPANIES AND OTHER
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015): Not applicable

4. DIRECTORS, INDIVIDUAL UNITHOLDERS’ AND OTHER
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015): Not applicable

11.

BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES,GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTYINCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 32%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements are met under the Special
Taxation Measures Law of Japan. Under this law, the Investment Corporation must meet a number of tax requirements, including a requirementthat it currently distribute in excess of 90% of its net income for the fiscal period in order to be able to deduct such amounts. If the Investment
Corporation does not satisfy all of the requirements, the entire taxable income of the Investment Corporation will be subject to regular corporate
income taxes. The Investment Corporation distributed in excess of 90% of its distributable income in the form of cash distributions totaling¥4,335 million (deducting ¥480 million as the provision of reserve for reduction entry) and ¥4,170 million (deducting ¥394 million as the provisionof reserve for reduction entry) for the periods ended April 30, 2016, and October 31, 2015. Therefore such distributions were treated as deductible
distributions for purposes of corporate income taxes. The effective tax rate on the Investment Corporation’s income was 0.03% for the fiscal
periods ended April 30, 2016 and October 31, 2015. The following table summarizes the significant differences between the statutory tax rate
and the effective tax rate:

Rental and other operating revenues, property-related expenses, gain and loss on sale of real estate property for the periods from November 1,
2015 to April 30, 2016 and from May 1, 2015 to October 31, 2015 consist of the following:
In thousands of yen
From November 1, 2015
to April 30, 2016

Rental and other operating revenues:
Rental revenues¥ 9,117,586

Common area charges
Subtotal¥ 9,124,877

1,930,493

1,981,677

11,048,079

11,106,554

Others:Parking space rental revenues

471,916

472,738

Utility charge reimbursement

990,852

1,131,096

From November 1, 2015
to April 30, 2016

From May 1, 2015
to October 31, 2015

Statutory tax rate

32.31%

32.31%

Deductible cash distributions(29.08)(29.51)

Provision of reserve for reduction entry(3.22)(2.79)

Others0.02

0.02

Property management fees and facility management fees

Effective tax rate

0.03%

0.03%

Depreciation

2,230,747

2,218,871

Utilities

1,071,935

1,232,969

Taxes

1,112,600

1,097,079

The significant components of deferred tax assets and liabilities as of April 30, 2016 and October 31, 2015 were as follows:
In thousands of yen
As of April 30, 2016

As of October 31, 2015

Deferred tax assets:
Enterprise tax payable

¥

31

¥

32

Deferred gains or losses on hedges

1,374

—

Amortization of leasehold rights

2,663

2,460

Subtotal deferred tax assets

4,068

2,492

Valuation allowance

4,037

2,460

Total deferred tax assets

¥

31

¥

32

Revision of amount of deferred tax assets and deferred tax liabilities due to change in the tax rate of income taxes
The Act on Partial Revision of the Income Tax Act, etc. (Act No. 15 of 2016) and the Act on Partial Revision of the Local Tax Act, etc. (Act No. 13
of 2016) were enacted in the Diet session on March 29, 2016, which include lowering of the tax rate of income taxes, starting from accounting
periods starting on or after April 1, 2016. In accordance with this, the statutory tax rate used to calculate deferred tax assets and deferred tax liabilities is changed from the previous 32.31% to 31.74%. The impact from the tax rate change is minimal.

Miscellaneous

301,182

515,644

Subtotal

1,763,950

2,119,478¥12,812,029¥13,226,032¥ 1,251,483¥ 1,261,503

Total rental and other operating revenues
Property-related expenses:

Insurance

17,492

18,325

Repairs and maintenance451,262

497,904

Trust fees

32,13052,439Others365,554289,902¥ 6,533,203¥ 6,668,992

Total property-related expenses
Gain on sale of real estate property:
Revenue from sale of investment property

11,470,000

4,800,000

Cost of investment property

9,899,061

4,214,661

60,770123,973

1,510,169

461,366

Other sales expenses
Gain on sale of real estate property
Loss on sale of real estate property:
Revenue from sale of investment property

3,950,000

960,000

Cost of investment property

4,692,834

1,094,481

Other sales expenses
Loss on sale of real estate property

32

From May 1, 2015
to October 31, 2015

23,171¥

766,005

31,210¥165,691

33

6.

9.

REDUCTION ENTRY

The amount of reduction entry of property and equipment acquired by government subsidy
In thousands of yen
As of April 30, 2016

As of October 31, 2015

¥26,230¥26,230

Buildings and structures

7.

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

10.

RELATED-PARTY TRANSACTIONS
1. PARENT COMPANY, CORPORATE UNITHOLDERS’ AND OTHERPER UNIT INFORMATION

Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015): Not applicable
Yen
From November 1, 2015
to April 30, 2016

From May 1, 2015
to October 31, 2015

Net asset value per unit

¥524,977¥523,395

Net income per unit

¥ 11,893¥ 11,273

Weighted average number of units (units)404,885

404,885

The weighted average number of units outstanding of 404,885 as of April 30, 2016 and October 31, 2015, respectively was used for the computation of the amount of net income per unit. Net income per unit after adjusting for residual units is not included because there were no residual
investment units.

8.

2. AFFILIATED COMPANIES AND OTHER
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015): Not applicable

3. FELLOW SUBSIDIARY COMPANIES AND OTHER
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015): Not applicable

4. DIRECTORS, INDIVIDUAL UNITHOLDERS’ AND OTHER
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015): Not applicable

11.

BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES,GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTYINCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 32%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements are met under the Special
Taxation Measures Law of Japan. Under this law, the Investment Corporation must meet a number of tax requirements, including a requirementthat it currently distribute in excess of 90% of its net income for the fiscal period in order to be able to deduct such amounts. If the Investment
Corporation does not satisfy all of the requirements, the entire taxable income of the Investment Corporation will be subject to regular corporate
income taxes. The Investment Corporation distributed in excess of 90% of its distributable income in the form of cash distributions totaling¥4,335 million (deducting ¥480 million as the provision of reserve for reduction entry) and ¥4,170 million (deducting ¥394 million as the provisionof reserve for reduction entry) for the periods ended April 30, 2016, and October 31, 2015. Therefore such distributions were treated as deductible
distributions for purposes of corporate income taxes. The effective tax rate on the Investment Corporation’s income was 0.03% for the fiscal
periods ended April 30, 2016 and October 31, 2015. The following table summarizes the significant differences between the statutory tax rate
and the effective tax rate:

Rental and other operating revenues, property-related expenses, gain and loss on sale of real estate property for the periods from November 1,
2015 to April 30, 2016 and from May 1, 2015 to October 31, 2015 consist of the following:
In thousands of yen
From November 1, 2015
to April 30, 2016

Rental and other operating revenues:
Rental revenues¥ 9,117,586

Common area charges
Subtotal¥ 9,124,877

1,930,493

1,981,677

11,048,079

11,106,554

Others:Parking space rental revenues

471,916

472,738

Utility charge reimbursement

990,852

1,131,096

From November 1, 2015
to April 30, 2016

From May 1, 2015
to October 31, 2015

Statutory tax rate

32.31%

32.31%

Deductible cash distributions(29.08)(29.51)

Provision of reserve for reduction entry(3.22)(2.79)

Others0.02

0.02

Property management fees and facility management fees

Effective tax rate

0.03%

0.03%

Depreciation

2,230,747

2,218,871

Utilities

1,071,935

1,232,969

Taxes

1,112,600

1,097,079

The significant components of deferred tax assets and liabilities as of April 30, 2016 and October 31, 2015 were as follows:
In thousands of yen
As of April 30, 2016

As of October 31, 2015

Deferred tax assets:
Enterprise tax payable

¥

31

¥

32

Deferred gains or losses on hedges

1,374

—

Amortization of leasehold rights

2,663

2,460

Subtotal deferred tax assets

4,068

2,492

Valuation allowance

4,037

2,460

Total deferred tax assets

¥

31

¥

32

Revision of amount of deferred tax assets and deferred tax liabilities due to change in the tax rate of income taxes
The Act on Partial Revision of the Income Tax Act, etc. (Act No. 15 of 2016) and the Act on Partial Revision of the Local Tax Act, etc. (Act No. 13
of 2016) were enacted in the Diet session on March 29, 2016, which include lowering of the tax rate of income taxes, starting from accounting
periods starting on or after April 1, 2016. In accordance with this, the statutory tax rate used to calculate deferred tax assets and deferred tax liabilities is changed from the previous 32.31% to 31.74%. The impact from the tax rate change is minimal.

Miscellaneous

301,182

515,644

Subtotal

1,763,950

2,119,478¥12,812,029¥13,226,032¥ 1,251,483¥ 1,261,503

Total rental and other operating revenues
Property-related expenses:

Insurance

17,492

18,325

Repairs and maintenance451,262

497,904

Trust fees

32,13052,439Others365,554289,902¥ 6,533,203¥ 6,668,992

Total property-related expenses
Gain on sale of real estate property:
Revenue from sale of investment property

11,470,000

4,800,000

Cost of investment property

9,899,061

4,214,661

60,770123,973

1,510,169

461,366

Other sales expenses
Gain on sale of real estate property
Loss on sale of real estate property:
Revenue from sale of investment property

3,950,000

960,000

Cost of investment property

4,692,834

1,094,481

Other sales expenses
Loss on sale of real estate property

32

From May 1, 2015
to October 31, 2015

23,171¥

766,005

31,210¥165,6913312.

(B) ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying value of financial instruments on the balance sheet as of April 30, 2016 and estimated fair value are shown in the following table.

LEASES

The Investment Corporation, as lessor, has entered into leases whose fixed monthly rents are due in advance with lease terms of generally two
years for office buildings and residential properties and with lease terms ranging from two to ten years for retail properties. The future minimum
rental revenues under existing non-cancelable operating leases as of April 30, 2016 and October 31, 2015 are as follows:

In thousands of yen
Carrying value햲 Cash and bank deposits

In thousands of yen
As of April 30, 2016

As of October 31, 2015

Due within one year

¥ 1,486,303¥ 1,759,328

Due after one year

9,544,086

9,540,266

Total¥11,030,389¥11,299,594

13.

The following table does not include financial instruments for which it is extremely difficult to determine the fair value (Refer to *2 below).

SubtotalTwenty-second Fiscal Period (November 1, 2015 to April 30, 2016)(A) OVERVIEW(1) POLICY FOR FINANCIAL INSTRUMENTS
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bankloans and the issuance of corporate bonds and new investment units. The Investment Corporation uses derivatives for the purpose of hedging its
exposure to changes in interest rates and does not enter into derivatives for speculative or trading purposes. Management of surplus funds isundertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.

¥ 20,602,996

Difference¥—

20,602,996

20,602,996—

햲 Short-term debt

2,500,000

2,500,000—

햳 Corporate bonds(including current portion of corporate bonds)

9,300,000

9,486,050

186,050

햴 Long-term debt(including current portion of long-term debt)

163,300,000

165,889,327

2,589,327¥175,100,000¥177,875,377¥2,775,377(4,328)(4,328)—Subtotal

FINANCIAL INSTRUMENTS

Estimated fair value¥ 20,602,996

Derivative Transactions (*)(*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing net liability position.

*1: METHODS TO DETERMINE THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS AND OTHER MATTERS RELATED TO
SECURITIES AND DERIVATIVE TRANSACTIONSASSETS햲 Cash and bank deposits
Since these items are settled in a short period of time, their carrying value approximates fair value.

(2) TYPES OF FINANCIAL INSTRUMENTS AND RELATED RISK
Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer and risk offluctuation of value of its property.
Debt and corporate bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a
maximum of approximately 12 years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate swap and interest-rate cap transactions) in order to reduce such risk.
Interest-rate swap and interest-rate cap transactions are used as derivative financial instruments. Utilizing interest-rate swap and interest-rate
cap transaction, the Investment Corporation fixes its interest expense for long-term debt bearing interest at a variable rate. With regard to hedge
accounting methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please
see Note 2(K) “Derivative Financial Instruments”.

LIABILITIES햲 Short-term debt
Since these items are settled in a short period of time, their carrying value approximates fair value.
햳 Corporate bonds
The fair value of corporate bonds is based on quoted market prices.
햴 Long-term debt
The fair value of long-term debt is based on the present value of the total of principal and interest discounted by the interest rate to be applied if
similar new loans were entered into. The fair value of long-term debt bearing interest at a variable rate, which is subject to fixed interest rates
resulting from interest-rate swaps and special treatment applied to said swaps, is based on the present value of the total of principal and interest,
which is handled together with the applicable interest-rate swaps, discounted by the interest rate to be applied if similar loans were entered into.

(3) RISK MANAGEMENT FOR FINANCIAL INSTRUMENTS(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap and interest-rate cap transactions in order to minimize risk arising from fluctuations in interest
rates on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer withregard to investment securities.
(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled due
dates) associated with procurement of funds
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates
and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.

(4) SUPPLEMENTARY EXPLANATION OF THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fairvalue is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors
could result in a different fair value.

DERIVATIVE TRANSACTIONS
Please refer to Note 14 “DERIVATIVE TRANSACTIONS”.

*2: FINANCIAL INSTRUMENTS FOR WHICH IT IS EXTREMELY DIFFICULT TO DETERMINE THE FAIR VALUEClassification

Carrying value (In thousands of yen)

Investment securities¥1,089,761

Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are not included in thepreceding table.

*3: REDEMPTION SCHEDULE FOR RECEIVABLES
Due within 1 year or less
(In thousands of yen)

Cash and bank deposits¥20,602,996

Total¥20,602,996*4: REDEMPTION SCHEDULE FOR DEBT AND CORPORATE BONDS
In thousands of yen

34

Due within 1 year
or less

Due after 1 year
through 2 years

Due after 2 years
through 3 years

Due after 3 years
through 4 years

Due after 4 years
through 5 years

Short-term debt

¥ 2,500,000

¥

¥

¥

¥

Corporate bonds

3,000,000

1,500,000

1,800,000——

3,000,000

Long-term debt

¥19,700,000¥19,250,000¥16,050,000¥14,700,000¥19,600,000¥74,000,000

—

—

—

—

Due after
5 years

¥

—

35

12.

(B) ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying value of financial instruments on the balance sheet as of April 30, 2016 and estimated fair value are shown in the following table.

LEASES

The Investment Corporation, as lessor, has entered into leases whose fixed monthly rents are due in advance with lease terms of generally two
years for office buildings and residential properties and with lease terms ranging from two to ten years for retail properties. The future minimum
rental revenues under existing non-cancelable operating leases as of April 30, 2016 and October 31, 2015 are as follows:

In thousands of yen
Carrying value햲 Cash and bank deposits

In thousands of yen
As of April 30, 2016

As of October 31, 2015

Due within one year

¥ 1,486,303¥ 1,759,328

Due after one year

9,544,086

9,540,266

Total¥11,030,389¥11,299,594

13.

The following table does not include financial instruments for which it is extremely difficult to determine the fair value (Refer to *2 below).

SubtotalTwenty-second Fiscal Period (November 1, 2015 to April 30, 2016)(A) OVERVIEW(1) POLICY FOR FINANCIAL INSTRUMENTS
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bankloans and the issuance of corporate bonds and new investment units. The Investment Corporation uses derivatives for the purpose of hedging its
exposure to changes in interest rates and does not enter into derivatives for speculative or trading purposes. Management of surplus funds isundertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.

¥ 20,602,996

Difference¥—

20,602,996

20,602,996—

햲 Short-term debt

2,500,000

2,500,000—

햳 Corporate bonds(including current portion of corporate bonds)

9,300,000

9,486,050

186,050

햴 Long-term debt(including current portion of long-term debt)

163,300,000

165,889,327

2,589,327¥175,100,000¥177,875,377¥2,775,377(4,328)(4,328)—Subtotal

FINANCIAL INSTRUMENTS

Estimated fair value¥ 20,602,996

Derivative Transactions (*)(*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing net liability position.

*1: METHODS TO DETERMINE THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS AND OTHER MATTERS RELATED TO
SECURITIES AND DERIVATIVE TRANSACTIONSASSETS햲 Cash and bank deposits
Since these items are settled in a short period of time, their carrying value approximates fair value.

(2) TYPES OF FINANCIAL INSTRUMENTS AND RELATED RISK
Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer and risk offluctuation of value of its property.
Debt and corporate bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a
maximum of approximately 12 years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate swap and interest-rate cap transactions) in order to reduce such risk.
Interest-rate swap and interest-rate cap transactions are used as derivative financial instruments. Utilizing interest-rate swap and interest-rate
cap transaction, the Investment Corporation fixes its interest expense for long-term debt bearing interest at a variable rate. With regard to hedge
accounting methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please
see Note 2(K) “Derivative Financial Instruments”.

LIABILITIES햲 Short-term debt
Since these items are settled in a short period of time, their carrying value approximates fair value.
햳 Corporate bonds
The fair value of corporate bonds is based on quoted market prices.
햴 Long-term debt
The fair value of long-term debt is based on the present value of the total of principal and interest discounted by the interest rate to be applied if
similar new loans were entered into. The fair value of long-term debt bearing interest at a variable rate, which is subject to fixed interest rates
resulting from interest-rate swaps and special treatment applied to said swaps, is based on the present value of the total of principal and interest,
which is handled together with the applicable interest-rate swaps, discounted by the interest rate to be applied if similar loans were entered into.

(3) RISK MANAGEMENT FOR FINANCIAL INSTRUMENTS(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap and interest-rate cap transactions in order to minimize risk arising from fluctuations in interest
rates on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer withregard to investment securities.
(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled due
dates) associated with procurement of funds
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates
and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.

(4) SUPPLEMENTARY EXPLANATION OF THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fairvalue is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors
could result in a different fair value.

DERIVATIVE TRANSACTIONS
Please refer to Note 14 “DERIVATIVE TRANSACTIONS”.

*2: FINANCIAL INSTRUMENTS FOR WHICH IT IS EXTREMELY DIFFICULT TO DETERMINE THE FAIR VALUEClassification

Carrying value (In thousands of yen)

Investment securities¥1,089,761

Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are not included in thepreceding table.

*3: REDEMPTION SCHEDULE FOR RECEIVABLES
Due within 1 year or less
(In thousands of yen)

Cash and bank deposits¥20,602,996

Total¥20,602,996*4: REDEMPTION SCHEDULE FOR DEBT AND CORPORATE BONDS
In thousands of yen

34

Due within 1 year
or less

Due after 1 year
through 2 years

Due after 2 years
through 3 years

Due after 3 years
through 4 years

Due after 4 years
through 5 years

Short-term debt

¥ 2,500,000

¥

¥

¥

¥

Corporate bonds

3,000,000

1,500,000

1,800,000——

3,000,000

Long-term debt

¥19,700,000¥19,250,000¥16,050,000¥14,700,000¥19,600,000¥74,000,000

—

—

—

—

Due after
5 years¥—

35

Twentieth-first Fiscal Period (May 1, 2015 to October 31, 2015)*1: METHODS TO DETERMINE THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS AND OTHER MATTERS RELATED TO
SECURITIES AND DERIVATIVE TRANSACTIONS(A) OVERVIEW(1) POLICY FOR FINANCIAL INSTRUMENTS
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bankloans and the issuance of corporate bonds and new investment units. The Investment Corporation uses derivatives for the purpose of hedging its
exposure to changes in interest rates and does not enter into derivatives for speculative or trading purposes. Management of surplus funds isundertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.

ASSETS햲 Cash and bank deposits
Since these items are settled in a short period of time, their carrying value approximates fair value.

LIABILITIES(2) TYPES OF FINANCIAL INSTRUMENTS AND RELATED RISK햲 Short-term debt

Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer and risk offluctuation of value of its property.
Debt and corporate bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a
maximum of approximately ten years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate swap and interest-rate cap transactions) in order to reduce such risk.
Interest-rate swap and interest-rate cap transactions are used as derivative financial instruments. Utilizing interest-rate swap and interest-rate
cap transactions, the Investment Corporation fixes its interest expense for long-term debt bearing interest at a variable rate. With regard tohedge accounting methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities,
please see Note 2 (K) “Derivative Financial Instruments”.

Since these items are settled in a short period of time, their carrying value approximates fair value.
햳 Corporate bonds
The fair value of corporate bonds is based on quoted market prices.
햴 Long-term debt
The fair value of long-term debt is based on the present value of the total of principal and interest discounted by the interest rate to be applied if
similar new loans were entered into. The fair value of long-term debt bearing interest at variable rates, which is subject to fixed interest rates
resulting from interest-rate swaps and special treatment applied to said swaps, is based on the present value of the total of principal and interest,
which is handled together with the applicable interest-rate swaps, discounted by the interest rate to be applied if similar loans were entered into.

DERIVATIVE TRANSACTIONS(3) RISK MANAGEMENT FOR FINANCIAL INSTRUMENTS

Please refer to Note 14 “DERIVATIVE TRANSACTIONS”.

(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap and interest-rate cap transactions in order to minimize risk arising from fluctuations in interest
rates on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer withregard to investment securities.
(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled due
dates) associated with funds procurement
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates
and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.

*2: FFINANCIAL INSTRUMENTS FOR WHICH IT IS EXTREMELY DIFFICULT TO DETERMINE THE FAIR VALUEClassification

Carrying value (In thousands of yen)

Investment securities¥1,100,235

Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are not included in thepreceding table.

*3: REDEMPTION SCHEDULE FOR RECEIVABLES
Due within 1 year or less
(In thousands of yen)

(4) SUPPLEMENTARY EXPLANATION OF THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fairvalue is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors
could result in a different fair value.

Cash and bank deposits¥22,587,773

Total¥22,587,773*4: REDEMPTION SCHEDULE FOR DEBT AND CORPORATE BONDS(B) ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
In thousands of yen

The carrying value of financial instruments on the balance sheet as of October 31, 2015 and estimated fair value are shown in the following
table. The following table does not include financial instruments for which it is extremely difficult to determine the fair value (Refer to *2 below).
Short-term debt

In thousands of yen

Subtotal

Due after 3 years
through 4 years

Due after 4 years
through 5 years¥ 2,500,000

¥

¥

¥

¥

—

—

—

—

Due after
5 years¥—

Estimated fair value

Difference

Corporate bonds—

4,500,000

1,800,000——

2,000,000¥

Long-term debt

¥30,800,000¥16,200,000¥16,750,000¥12,750,000¥18,600,000¥68,200,000—

22,587,773

22,587,773—

2,500,000

2,500,000—

햳 Corporate bonds(including current portion of corporate bonds)

8,300,000

8,474,360

174,360

햴 Long-term debt(including current portion of long-term debt)

163,300,000

163,761,383

461,383¥174,100,000¥174,735,743¥635,743———

Subtotal

Due after 2 years
through 3 years¥ 22,587,773

햲 Short-term debt

Derivative Transactions (*)

Due after 1 year
through 2 years¥ 22,587,773

Carrying value햲 Cash and bank deposits

Due within 1 year
or less(*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing net liability position.

36

37

Twentieth-first Fiscal Period (May 1, 2015 to October 31, 2015)*1: METHODS TO DETERMINE THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS AND OTHER MATTERS RELATED TO
SECURITIES AND DERIVATIVE TRANSACTIONS(A) OVERVIEW(1) POLICY FOR FINANCIAL INSTRUMENTS
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bankloans and the issuance of corporate bonds and new investment units. The Investment Corporation uses derivatives for the purpose of hedging its
exposure to changes in interest rates and does not enter into derivatives for speculative or trading purposes. Management of surplus funds isundertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.

ASSETS햲 Cash and bank deposits
Since these items are settled in a short period of time, their carrying value approximates fair value.

LIABILITIES(2) TYPES OF FINANCIAL INSTRUMENTS AND RELATED RISK햲 Short-term debt

Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer and risk offluctuation of value of its property.
Debt and corporate bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a
maximum of approximately ten years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate swap and interest-rate cap transactions) in order to reduce such risk.
Interest-rate swap and interest-rate cap transactions are used as derivative financial instruments. Utilizing interest-rate swap and interest-rate
cap transactions, the Investment Corporation fixes its interest expense for long-term debt bearing interest at a variable rate. With regard tohedge accounting methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities,
please see Note 2 (K) “Derivative Financial Instruments”.

Since these items are settled in a short period of time, their carrying value approximates fair value.
햳 Corporate bonds
The fair value of corporate bonds is based on quoted market prices.
햴 Long-term debt
The fair value of long-term debt is based on the present value of the total of principal and interest discounted by the interest rate to be applied if
similar new loans were entered into. The fair value of long-term debt bearing interest at variable rates, which is subject to fixed interest rates
resulting from interest-rate swaps and special treatment applied to said swaps, is based on the present value of the total of principal and interest,
which is handled together with the applicable interest-rate swaps, discounted by the interest rate to be applied if similar loans were entered into.

DERIVATIVE TRANSACTIONS(3) RISK MANAGEMENT FOR FINANCIAL INSTRUMENTS

Please refer to Note 14 “DERIVATIVE TRANSACTIONS”.

(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap and interest-rate cap transactions in order to minimize risk arising from fluctuations in interest
rates on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer withregard to investment securities.
(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled due
dates) associated with funds procurement
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates
and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.

*2: FFINANCIAL INSTRUMENTS FOR WHICH IT IS EXTREMELY DIFFICULT TO DETERMINE THE FAIR VALUEClassification

Carrying value (In thousands of yen)

Investment securities¥1,100,235

Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are not included in thepreceding table.

*3: REDEMPTION SCHEDULE FOR RECEIVABLES
Due within 1 year or less
(In thousands of yen)

(4) SUPPLEMENTARY EXPLANATION OF THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fairvalue is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors
could result in a different fair value.

Cash and bank deposits¥22,587,773

Total¥22,587,773*4: REDEMPTION SCHEDULE FOR DEBT AND CORPORATE BONDS(B) ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
In thousands of yen

The carrying value of financial instruments on the balance sheet as of October 31, 2015 and estimated fair value are shown in the following
table. The following table does not include financial instruments for which it is extremely difficult to determine the fair value (Refer to *2 below).
Short-term debt

In thousands of yen

Subtotal

Due after 3 years
through 4 years

Due after 4 years
through 5 years¥ 2,500,000

¥

¥

¥

¥

—

—

—

—

Due after
5 years¥—

Estimated fair value

Difference

Corporate bonds—

4,500,000

1,800,000——

2,000,000¥

Long-term debt

¥30,800,000¥16,200,000¥16,750,000¥12,750,000¥18,600,000¥68,200,000—

22,587,773

22,587,773—

2,500,000

2,500,000—

햳 Corporate bonds(including current portion of corporate bonds)

8,300,000

8,474,360

174,360

햴 Long-term debt(including current portion of long-term debt)

163,300,000

163,761,383

461,383¥174,100,000¥174,735,743¥635,743———

Subtotal

Due after 2 years
through 3 years¥ 22,587,773

햲 Short-term debt

Derivative Transactions (*)

Due after 1 year
through 2 years¥ 22,587,773

Carrying value햲 Cash and bank deposits

Due within 1 year
or less(*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing net liability position.

36

37

The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:

14.

Carrying value (In thousands of yen)

DERIVATIVE TRANSACTIONS

The following summarizes the contracted amount and the fair value of interest-rate swap and the interest-rate cap contracts as of April 30, 2016:
햲 Hedge accounting not applied
Not applicable햳 Hedge accounting applied
Hedge accounting
methodType of derivativetransactions

Contracted amount(In thousands of yen)

Hedged items

Maturing after 1 year

Principle method

Interest-rate swaps:
Receive/floating andpay/fixed

Special treatment ofinterest-rate swaps

Interest-rate swaps:
Receive/floating andpay/fixed

Long-term debt

Special treatment ofinterest-rate caps

Interest-rate caps
transaction

Long-term debt

Long-term debt¥

1,000,000¥

1,000,000

Fair value(In thousands of yen)Calculation method for
applicable fair value¥(4,328)

Based on theamount provided
by counterparty
financial institutions¥109,350,000¥102,150,000

As of October 31, 2015

Fair value As of October 31, 2015
(In thousands of yen)

¥379,905,814¥1,560,827¥381,466,641¥392,422,000

Notes: 1. The carrying value represents the acquisition cost less accumulated depreciation.
2: The fair value is the appraisal value or the survey value determined by outside appraisers.
3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increases and decreases were
the acquisition of two properties totaling ¥8,621,306 thousand, the sale of two properties totaling ¥5,309,142 thousand and depreciation amounting to¥2,218,871 thousand.

Income and loss in the fiscal period ended October 31, 2015 for real estate for rental purposes is listed in Note 11. “BREAKDOWN OF RENTALAND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY”.

16.

SEGMENT AND RELATED INFORMATION

2,000,000

500,000¥112,350,000¥103,650,000(A) SEGMENT INFORMATION*

Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment subject to disclosure.

*¥(4,328)(*) Interest-rate swaps and interest-rate caps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, theirfair value is included in the fair value of the hedged long-term debt.

The following summarizes the contracted amount and the fair value of interest-rate swap and the interest-rate cap contracts as of October 31, 2015:
햲 Hedge accounting not applied
Not applicable햳 Hedge accounting applied
Contracted amount(In thousands of yen)Type of derivativetransactions

Hedged items

Special treatment ofinterest-rate swaps

Interest-rate swaps:
Receive/floating andpay/fixed

Long-term debt

¥ 98,050,000

Special treatment ofinterest-rate caps

Interest-rate caps
transaction

Long-term debt

Fair value(In thousands of yen)Calculation method for
applicable fair value¥92,050,000*—

3,000,000

500,000*—¥101,050,000¥92,550,000

Maturing after 1 year(B) RELATED INFORMATION(1) INFORMATION ABOUT EACH PRODUCT AND SERVICE
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue
on the statement of income.

(2) INFORMATION ABOUT EACH GEOGRAPHIC AREA(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
(b) Property and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounts for over 90% of the amount of property andequipment on the balance sheet.

(3) INFORMATION ABOUT EACH MAJOR CUSTOMER

Total

INVESTMENT AND RENTAL PROPERTIES

Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
Carrying value (In thousands of yen)Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.
Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015)(*) Interest-rate swaps and interest-rate caps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, theirfair value is included in the fair value of the hedged long-term debt.

15.

Net change

Twenty-second Fiscal Period(November 1, 2015 to April 30, 2016)

Total

Hedge accounting
methodAs of April 30, 2015

As of October 31, 2015

Net change

As of April 30, 2016

Fair value As of April 30, 2016
(In thousands of yen)

¥381,466,641¥3,618,614¥385,085,255¥402,555,000

notes: 1. The carrying value represents the acquisition cost less accumulated depreciation.
2: The fair value is the appraisal value or the survey value determined by outside appraisers.
3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increases and decreases were
the acquisition of two properties totaling ¥19,321,019 thousand, the sale of two properties totaling ¥14,591,896 thousand and depreciation amounting to¥2,230,747 thousand.

Income and loss in the fiscal period ended April 30, 2016 for real estate for rental purposes is listed in Note 11. “BREAKDOWN OF RENTAL AND
OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY”.

(A) SEGMENT INFORMATION
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment subject to disclosure.

(B) RELATED INFORMATION(1) INFORMATION ABOUT EACH PRODUCT AND SERVICE
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue
on the statement of income.

(2) INFORMATION ABOUT EACH GEOGRAPHIC AREA(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
(b) Property and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounts for over 90% of the amount of property andequipment on the balance sheet.

(3) INFORMATION ABOUT EACH MAJOR CUSTOMER
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.

Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015)17.

SUBSEQUENT EVENTS

Not applicable.

38

39

The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:

14.

Carrying value (In thousands of yen)

DERIVATIVE TRANSACTIONS

The following summarizes the contracted amount and the fair value of interest-rate swap and the interest-rate cap contracts as of April 30, 2016:
햲 Hedge accounting not applied
Not applicable햳 Hedge accounting applied
Hedge accounting
methodType of derivativetransactions

Contracted amount(In thousands of yen)

Hedged items

Maturing after 1 year

Principle method

Interest-rate swaps:
Receive/floating andpay/fixed

Special treatment ofinterest-rate swaps

Interest-rate swaps:
Receive/floating andpay/fixed

Long-term debt

Special treatment ofinterest-rate caps

Interest-rate caps
transaction

Long-term debt

Long-term debt¥

1,000,000¥

1,000,000

Fair value(In thousands of yen)Calculation method for
applicable fair value¥(4,328)

Based on theamount provided
by counterparty
financial institutions¥109,350,000¥102,150,000

As of October 31, 2015

Fair value As of October 31, 2015
(In thousands of yen)

¥379,905,814¥1,560,827¥381,466,641¥392,422,000

Notes: 1. The carrying value represents the acquisition cost less accumulated depreciation.
2: The fair value is the appraisal value or the survey value determined by outside appraisers.
3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increases and decreases were
the acquisition of two properties totaling ¥8,621,306 thousand, the sale of two properties totaling ¥5,309,142 thousand and depreciation amounting to¥2,218,871 thousand.

Income and loss in the fiscal period ended October 31, 2015 for real estate for rental purposes is listed in Note 11. “BREAKDOWN OF RENTALAND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY”.

16.

SEGMENT AND RELATED INFORMATION

2,000,000

500,000¥112,350,000¥103,650,000(A) SEGMENT INFORMATION*

Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment subject to disclosure.

*¥(4,328)(*) Interest-rate swaps and interest-rate caps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, theirfair value is included in the fair value of the hedged long-term debt.

The following summarizes the contracted amount and the fair value of interest-rate swap and the interest-rate cap contracts as of October 31, 2015:
햲 Hedge accounting not applied
Not applicable햳 Hedge accounting applied
Contracted amount(In thousands of yen)Type of derivativetransactions

Hedged items

Special treatment ofinterest-rate swaps

Interest-rate swaps:
Receive/floating andpay/fixed

Long-term debt

¥ 98,050,000

Special treatment ofinterest-rate caps

Interest-rate caps
transaction

Long-term debt

Fair value(In thousands of yen)Calculation method for
applicable fair value¥92,050,000*—

3,000,000

500,000*—¥101,050,000¥92,550,000

Maturing after 1 year(B) RELATED INFORMATION(1) INFORMATION ABOUT EACH PRODUCT AND SERVICE
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue
on the statement of income.

(2) INFORMATION ABOUT EACH GEOGRAPHIC AREA(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
(b) Property and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounts for over 90% of the amount of property andequipment on the balance sheet.

(3) INFORMATION ABOUT EACH MAJOR CUSTOMER

Total

INVESTMENT AND RENTAL PROPERTIES

Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
Carrying value (In thousands of yen)Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.
Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015)(*) Interest-rate swaps and interest-rate caps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, theirfair value is included in the fair value of the hedged long-term debt.

15.

Net change

Twenty-second Fiscal Period(November 1, 2015 to April 30, 2016)

Total

Hedge accounting
methodAs of April 30, 2015

As of October 31, 2015

Net change

As of April 30, 2016

Fair value As of April 30, 2016
(In thousands of yen)

¥381,466,641¥3,618,614¥385,085,255¥402,555,000

notes: 1. The carrying value represents the acquisition cost less accumulated depreciation.
2: The fair value is the appraisal value or the survey value determined by outside appraisers.
3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increases and decreases were
the acquisition of two properties totaling ¥19,321,019 thousand, the sale of two properties totaling ¥14,591,896 thousand and depreciation amounting to¥2,230,747 thousand.

Income and loss in the fiscal period ended April 30, 2016 for real estate for rental purposes is listed in Note 11. “BREAKDOWN OF RENTAL AND
OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY”.

(A) SEGMENT INFORMATION
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment subject to disclosure.

(B) RELATED INFORMATION(1) INFORMATION ABOUT EACH PRODUCT AND SERVICE
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue
on the statement of income.

(2) INFORMATION ABOUT EACH GEOGRAPHIC AREA(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
(b) Property and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounts for over 90% of the amount of property andequipment on the balance sheet.

(3) INFORMATION ABOUT EACH MAJOR CUSTOMER
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.

Twenty-first Fiscal Period (May 1, 2015 to October 31, 2015)17.

SUBSEQUENT EVENTS

Not applicable.

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