KENEDIX REALTY INVESTMENT CORPORATION (8972)

Translation Purpose Only

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2009 (REIT)(May 1, 2009 to October 31, 2009)

December 14, 2009

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

Taisuke Miyajima, Executive Director

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

Taisuke Miyajima, CEO and President

Inquires:

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

Planned submission of semiannual security report: January 28, 2010
Planned start of distribution payments:

January 19, 2010

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2009 (NINTH FISCAL PERIOD)(1) Business Results(The amount is rounded down to the nearest ¥million)

Ninth
Fiscal Period
EighthFiscal Period

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

7,921(△3.4%)

3,213(△7.2%)

2,103(△13.6%)2,102(△13.6%)8,204(△3.0%)

3,463(△16.4%)2,435(△22.1%)2,434(△22.1%)Net Income
NinthFiscal Period
EighthFiscal Period

Ordinary Income to

Return on Unitholders’ Equity

Ordinary Income to Total Assets

10,510

1.7%

0.9%

26.5%

12,171

1.9%

1.0%

29.7%

per Unit (Yen)

Operating Revenues（The total distribution is rounded down to the nearest ¥million.）(2) Distribution
Distributions per
Unit (Yen)

Total Distribution

Excluding Excess(Millions of Yen)of Earnings
Ninth
Fiscal Period
EighthFiscal Period

Total Distributions

Distributions in
Excess of Earnings
per Unit (Yen)Distribution Ratio

in Excess of

Payout Ratio

Earnings

to Unitholders’Equity(Millions of Yen)

10,511

2,102

0

0

100.0%

1.7%

12,172

2,434

0

0

100.0%

1.9%

Note: The payout ratio is round to the nearest first decimal place.
（The total assets and unitholders’ equity are rounded down to the nearest ¥million.）(3) Financial Position
Total Assets

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Share(Millions of Yen)

(Millions of Yen)

to Total Assetsof Common Stock (Yen)NinthFiscal Period
EighthFiscal Period(Reference) Total net assets
Ninth fiscal period: ¥127,067 million

236,320

127,06753.8%

635,335

238,745

127,398

53.4%

636,990

Eighth fiscal period: ¥127,398 million-1-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（The amount are rounded down to the nearest ¥million.）(4) Cash Flow Position
Cash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents at

Operating Activities

Investing Activities

Financing Activities

End of Period(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

Ninth
Fiscal Period
EighthFiscal Period

5,415△ 4,204△ 3,964

10,957

6,961△ 1,831△ 3,121

13,711

2．FORECAST OF RESULTS FOR THE TENTH FISCAL PERIOD (November 1, 2009 to April 30, 2010)

Tenth
Fiscal Period

Distribution perDistribution in

Operating Revenues

Operating Income

Ordinary Income

Net Income

Unit(Yen)Excluding

Excess of(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

Excess of Earnings

Earnings per Unit

(Yen)

(Yen)

10,30007,965（+0.6%） 3,521 （+9.6%） 2,408(+14.5%)2,407 （+14.5%）(Reference) Estimated net income per unit for the tenth fiscal period: ¥10,300
Forecasted number of investment units issued and outstanding as of April 30, 2010: 233,550 units

3．OTHER(1) Changes in Accounting Policies(a) Changes accompanying amendments to accounting standards: No(b) Changes other than (a): No(2) Number of Investment Units Issued and Outstanding (including treasury units)(a) Number of investment units issued and outstanding at end of period (including treasury units)Ninth fiscal period: 200,000 units
Eighth fiscal period: 200,000 units(b) Number of treasury units at end of period
Ninth fiscal period: 0 units
Eighth fiscal period: 0 units
Note: Please refer to page 35 “Notes to the Information per Unit” for the calculation for the net income per unit.

*Explanation on the appropriate use of the forecast of results and other matters of special consideration
The forecast of results for the tenth fiscal period ending April 30, 2010 are calculated as of December 14, 2009 based on theassumptions presented on page 17 “Preconditions and Assumptions for the Fiscal Period Ending April 30, 2010”. Readers areadvised that actual operating revenues, operating income, ordinary income, net income, distribution per unit may differ significantly
from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of the forecast
distribution per unit.

-2-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

1.

Basic Structure — Overview of Companies Related to the Investment Corporation
There were no major changes to the “Structure of the Investment Corporation” from the most recent securities report (submitted on July27, 2009), and so it has been omitted from this document.

2.

Management Policy and Operating Conditions(1) Management Policy
There were no major changes to the “Investment Policy,” “Investment Strategy” and “Distribution Policy” from the most recent
securities report (submitted on July 27, 2009), and so it has been omitted from this document.
(2) Operating Conditions(1) Operating Conditions for the Ninth Fiscal Period
A. The Investment Corporation
The Investment Corporation was established on May 6, 2005 in accordance with the Investment Trust and Investment Corporation Law(“the Investment Trust Law”). On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of
the Tokyo Stock Exchange with a total of 75,400 investment units issued and outstanding. (Securities Code: 8972). Subsequently, theInvestment Corporation raised funds through public offerings including two global offerings. Consequently, as of October 31, 2009, theend of the ninth fiscal period, the number of investment units issued and outstanding totaled 200,000 units.
The Investment Corporation appointed Kenedix REIT Management, Inc. as its asset management company. In concert with the AssetManagement Company, the Investment Corporation strives to maximize cash distribution to investors by securing stable earnings andsustainable investment growth. To this end, the Investment Corporation adopts a dynamic and flexible investment stance that accuratelyreflects its environment and market trends, and endeavors to ensure a timely response to each and every opportunity. The Investment
Corporation endeavors to develop a diversified investment portfolio named “KENEDIX Selection,” adopting a three-point investment
criteria based on property type, area and size.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review, the Japanese economy was affected by the global financial market crisis. The economy
experienced difficult conditions as evident by sudden deterioration of employment conditions, decrease of personal consumption, etc.
However, trends of recovery were observed in some areas due to improvements in the external economic environment, a round of
inventory adjustments and effects of economic measures have taken place.
As for the real estate market, according to the land price survey by prefectural governments as of July 1, 2009, the change in average land
prices in Japan for the one year period from July 2008 decreased by 5.9% for commercial land and by 4.0% for residential land. There
was an increase in the degree of decrease for all uses. In the Tokyo Area, the average decreased by 8.9% for commercial land and 6.5%
for residential land, both changing from a year-on-year increase in the previous year to a decrease. Furthermore, for the three major
metropolitan areas, the average decreased by 8.2% for commercial land and 5.6% for residential land. Both commercial land andresidential land changed to a decrease from an increase, for the first time in four consecutive years since 2005.
(b) Management Performance
As of the end of the eighth fiscal period, the Investment Corporation owned 67 properties with a total acquisition price of ¥218,999
million. In the fiscal period under review, the Investment Corporation acquired the building portion (acquisition price of ¥3,550 million)of the KDX Nagoya Sakae Building (office building in Other Regional Areas). In addition, the Investment Corporation sold 2 residential
properties (total acquisition price of ¥2,390 million) in Tokyo Metropolitan Area. As a result, the number of properties owned as of
October 31, 2009 stood at 65, with a total acquisition price of ¥220,159 million.
Looking at the portfolio as a whole, 89.6% was comprised of office buildings, 5.6% of central urban retail properties and 4.6% ofresidential properties on an acquisition price basis. The occupancy ratio as of the end of the ninth fiscal period was 94.7% reflecting
stable investment and asset management.
On October 29, 2009, the Investment Corporation made a decision to acquire “Koishikawa TG Building,” “Gotanda TG
Building,” “KDX Nihonbashi 216 Building” and “KDX Shin-Yokohama 381 Building Annex Tower” (total of 4 properties,
total acquisition price of 8,810 million yen) to raise the investment ratio of office buildings in the Tokyo Metropolitan Area, and-3-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

to further enhance and stabilize the Investment Corporation’s overall investment portfolio, in accordance with its Articles ofIncorporation and fundamental investment policies.
＜Changes in Asset Size after Fifth Fiscal Period＞
Fifth Fiscal Period
Sixth Fiscal Period
Seventh Fiscal Period
Eighth Fiscal Period
Ninth Fiscal Period(as of October 31, 2007)(as of April 30, 2008)(as of October 31, 2008) (as of April 30, 2009) (as of October 31, 2009)
Total
Total
Total
Total
Total
Ratio
Ratio
Ratio
Ratio
Acquisition Price
Acquisition Price
Acquisition Price
Acquisition Price
Acquisition Price Ratio
(%)
(%)
(%)
(%)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen) (%)
137,97970.0

184,08086.4

196,965

88.7

193,911 88.5

197,46189.6

Type of Use

Office Buildings
Central Urban
Retail Properties
Residential Properties

16,0598.1

16,0597.5

12,3795.5

12,3795.6

12,3795.6

43,05221.8

12,7095.9

12,7095.7

12,7095.8

10,3194.6

197,090

100.0

212,848100.0

222,053 100.0

218,999 100.0

220,159 100.0

162,51482.4

174,92382.1

189,23885.2

188,534 86.0

186,144

84.5

Area

Total
Tokyo Metropolitan
Area
Other Regional Areas

34,576

17.5

37,92517.8

32,81514.7

30,465 13.9

34,015

15.4

Total

197,090

100.0

212,848100.0

222,053 100.0

218,999 100.0

220,159 100.0

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

Make Diversified Acquisitions
As of October 31, 2009, the Investment Corporation owned 65 properties for a total acquisition price of ¥220,159 million with
94.7% occupancy ratio. Supported by this asset base along with the management know-how of mid-sized office building
accumulated by the Asset Management Company, the Investment Corporation has acquired properties based on its diversified
property acquisition strategy. The Investment Corporation has also expanded the asset size of the portfolio based on a diverse rangeof property acquisition strategies.
In particular, the Investment Corporation has realized various types of property acquisition, from the acquisition of properties witha low occupancy ratio and lease-up in a short period of time (KDX Nishi-Gotanda Building and KDX Toranomon Building whichwere acquired during the fourth fiscal period and KDX Jimbocho Building which was acquired during the sixth fiscal period),
acquisition of property at the stage when construction of the building was yet to be completed (KDX Nagoya Sakae Building,which land was acquired during the sixth fiscal period) and acquisition of property which Kenedix, Inc. was involved in thedevelopment (KDX Harumi Building which was acquired during the seventh fiscal period), etc.
Selling of Properties
The Investment Corporation succeeded in selling 2 residential properties during the third fiscal period, 2 residential properties
during the fourth fiscal period, 23 residential properties during the sixth fiscal period, 1 office building and 1 central urban retailproperty during the seventh fiscal period and 2 office buildings during the eighth fiscal period. In the fiscal period under review,
the Investment Corporation sold 2 residential properties (total acquisition price of ¥2,390 million) located in Tokyo Metropolitan
Area. Details are as follows.
(Unit: Millions of Yen)
Sold Properties
Type (Number of Properties)
Third Fiscal
Residential Property
Period(2 properties)
Fourth Fiscal
Residential Property
Period(2 properties)
Sixth Fiscal
Residential Property
Period(23 properties)
SeventhOffice Building (1 property)
Fiscal Period Central Urban Retail Property (1 property)
Eighth Fiscal
Office Building (2 properties)
PeriodNinth Fiscal
Residential Property
Period(2 properties)

Area (Number of Properties)
Tokyo Metropolitan Area
(2 properties)
Tokyo Metropolitan Area
(2 properties)
Tokyo Metropolitan Area (16 properties)
Other Regional Areas (7 properties)
Other Regional Areas (2 properties)
Tokyo Metropolitan Area (1 property)
Other Regional Areas (1 property)
Tokyo Metropolitan Area
(2 properties)-4-

Total Initial
Total Profit / Loss
Acquisition Price from Property Sale
1,708

157

1,407

130

30,343

512

5,110

299

3,054

△492

2,390

△440

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Operation and Management of Existing Properties
The Investment Corporation has appointed the Asset Management Company as its property management company for its entire
portfolio. In establishing a single point of contact for all matters relating to property management activities, the Investment
Corporation strives to secure consistent policies, specifications and procedures along with ensuring swift and quality service. Asof October 31, 2009, the investment portfolio is being managed generally at a high occupancy ratio and the occupancy ratio as ofthe end of the fiscal period under review was maintained at 94.7. The Investment Corporation is satisfied with the quality ofproperty management.
Stable Management due to Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for office buildings was 580 as of the end of the fiscal period under review (October 31, 2009). Floor
area leased to each end-tenant as a proportion of total leased floor area of the total portfolio was at most 2.2% for tenants of officebuildings, and 5.6% for the total top 3 tenants of office buildings. This indicates that diversification in the number of tenants has
been realized. Furthermore, tenants of office buildings are comprised of various sectors, such as the service sector, wholesalers,
retailers, manufacturers, etc. As a result, the impact by a certain end-tenant vacating the property or the economic recession
impacting a certain sector has little effect. Therefore, the Investment Corporation believes that it will achieve stable portfolio
management.
Actual Results of Tenant Turnover
Tenants for office buildings that the Investment Corporation owns are comprised of many medium and small-sized tenants, andthere is a large number of tenants representing a diversified scope of sectors. Therefore, regardless of the environment surrounding
the leasing market, around 10% of tenants tend to move out annually on a consistent basis. This trend has continued until now,even during this phase of sudden deterioration of the leasing market since the autumn of 2008.
Furthermore, as for the moving in of new tenants in office buildings that the Investment Corporation owns, the Investment
Corporation has been able to continue realizing a certain level of tenants moving in both in terms of floor area and number of new
tenants. This was achieved despite the sudden deterioration of the leasing market since the autumn of 2008.
＜Actual Results of Tenant Turnover for Office Buildings that the Investment Corporation Owns＞
Floor Area of Floor Area of Moving Differences of Floor No. of Tenants No. of Tenants No. of Differences
Moving Out for Tenants Moving
Area of New / Moving Moving In
Out Tenants
New Tenants
In / Out (㎡)(Note 3)(Note 3)
Out Tenants (㎡)(㎡)(Note 2)(㎡) (Note 1)
November 1, 2007
Sixth
to January 31,2008
FiscalFebruary 1, 2008
Periodto April 30, 2008
May 1, 2008
SeventhTo July 31, 2008
FiscalAugust 1, 2008
Periodto October31, 2008
November 1, 2008
Eighthto January 31, 2009
FiscalFebruary 1, 2009
Periodto April 30, 2009
May 1, 2009Ninth
to July 31, 2009
FiscalAugust 1, 2009
Periodto October 31, 2009

2,652

2,443

210

18

13

5

3,592

4,758

△1,165

16

22

△6

2,772

2,756

16

19

20

△1

9,903

5,000

4,903

30

24

6

3,670

4,429

△760

17

18

△1

6,523

5,561

962

34

29

5

4,208

6,238

△2,030

23

33

△10

10,556

4,774

5,782

43

25

18

Notes:
1. The floor area of new tenants is the total leased floor area leased to new tenants whose lease agreements or sub-lease agreements became
effective after November 2007 and was calculated every 3 months.
2. The floor area of moving out tenants is the total leased floor area leased to moving out tenants whose lease agreements or sub-lease agreements
terminated after November 2007 and was calculated every 3 months.
3. The number of tenants moving in and number of tenants moving out were calculated based on the number of floors, meaning that even if thesame tenant moved in/moved out from several floors, each floor was counted as 1 move in/move out.

-5-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Leasing Management in View of the Leasing Market Environment
The Investment Corporation believes that the mid-sized office building market tends to stably maintain the number of tenants at a
certain level even amidst the phase of a weakening leasing market. This is because the market has a broad base of potential tenants
as well as diversified business sectors, bringing a variety of tenant needs for lease that include demands for increased floor spaces,
requirements by companies to transfer offices from higher-rent buildings and needs to transfer offices as a result of corporate
restructuring.
Of all others, “mid-sized office buildings in Tokyo Metropolitan Area,” which is an area that the Investment Corporation ismainly investing in is the largest market in terms of demand due to the economic scale of the Tokyo Metropolitan Area and there
are many middle-market and small- and medium-sized enterprises that are candidates for tenancy.
Since the listing in 2005, the Investment Corporation had conducted negotiations to increase rents while maintaining favorable
relationships with tenants in cases where market rents greatly exceeded contracted rents. These activities to match the contracted
rent with the market rents had realized increases in rental revenue.
On the other hand, in view of the sudden deterioration of the economy since autumn 2008 and the accompanying trends of theleasing market, at the beginning of the eighth fiscal period (fiscal period ended April 30, 2009) the Investment Corporation
switched to the management policy of placing priority on maintaining occupancy ratios without, in principle, negotiating to raise
rents during forthcoming negotiations on rent.
One reason why it was able to swiftly switch policies was because the Investment Corporation entrusts all its property
management duties to the Asset Management Company, and that it has an established structure that enables it to take into accountfuture trends of the leasing market in advance and swiftly respond to market changes.
Change in Occupancy Ratio
The occupancy ratio of office buildings that the Investment Corporation owns was stably maintained in the 95% level during theeighth fiscal period (fiscal period ended April 30, 2009), despite the significant deterioration of the leasing market. This was madepossible because it adopted a flexible leasing policy to swiftly respond to the abovementioned market trends. During the ninth
fiscal period (fiscal period ended October 31, 2009), the occupancy ratio for office buildings dropped to 91.7% as of July 31, 2009
because of the extended period of vacancy and impacts of acquiring KDX Nagoya Sakae Building, which had a low occupancy
ratio at the time of acquisition (Note1). However, as of the end of the fiscal period under review (October 31, 2009), theoccupancy ratio rose 2.7% to 94.4% compared to the ratio as of July 31, 2009, in reflection of the favorable leasing situation at
KDX Nagoya Sakae Building, etc. Furthermore, the Investment Corporation achieved 100% occupancy ratios for 36 out of 58
office buildings as of October 31, 2009. These and other results indicate that it is maintaining a stable occupancy ratio.
<Changes in Occupancy Ratio (Note 2) for Office Buildings and Portfolio>
Portfolio
Office Buildings
Sixth Fiscal Period
95.8％
95.9％
(As of April 30, 2008)
Seventh Fiscal Period
95.7％
95.6％
(As of October 31, 2008)
Eighth Fiscal Period
95.6％
95.7％
(As of April 30, 2009)
Ninth Fiscal Period
94.4％
94.7％
(As of October 31, 2009)
Note 1: Occupancy ratio for KDX Nagoya Sakae Building was 30.4% as of July 31, 2009, and 72.3% as of October 31, 2009.
Note 2: Occupancy ratios are rounded to the nearest first decimal place.

Average Rent Level
As of the end of the fiscal period under review (October 31, 2009), the average rent level of office buildings was 17,300 yen(Note 3), whereas it was 17,500 yen (Note 3) as of the end of the eighth fiscal period (April 30, 2009). This means that it has
dropped 1.2% compared to the end of the eighth fiscal period, but the Investment Corporation believes that the rents are stableeven amidst this phase of the weakening leasing market.
Note 3: The average rent level covers the offices primarily on the second floor and above, excluding those on the first floor and those used as shops,
warehouses or for special purposes, etc., of the 57 properties (60 office buildings the Investment Corporation owned as of the end of theseventh fiscal period (October 31, 2008) minus 2 properties that were sold and KDX Nagoya Sakae Building which was acquired after
the eighth fiscal period (fiscal period ended April 30, 2009). The average rent level of each property is the value obtained by dividing the-6-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

sum of the monthly rent (including common area charges) per each property by the total leased area of each property, and is rounded
down to 100 yen..

C. Capital Acquisition(a) Overview of Refinance
The Investment Corporation undertook borrowings of ¥8 billion (¥3 billion in long-term borrowings and ¥5 billion in short-termborrowings (Note 1)). In addition, the Investment Corporation has repaid Series 32-L (Citibank Japan, Ltd.: ¥1.5 billion) with a repayment
date of October 30, 2009 using cash on hand. Details are provided as follows.
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date.
Long-term borrowings refer to borrowings with a period of more than one year from the drawdown date to the repayment date. Sameapplies below.

Borrowings During the Ninth Fiscal Period
LenderClassification

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Series 39-A

Sumitomo Mitsui Banking Corporation

Series 39-B

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

Series 40-A

Sumitomo Mitsui Banking Corporation

Series 40-B

Last
Borrowing Amount Drawdown
Borrowing
Repayment(¥ Billions)
Date
PeriodDate
October
October
1.0 year
1.5
26, 2009
26, 2010
October
October
4.0 years
1.0
26, 2009
26, 2013(Note 2)October
October
1.0 year
3.530, 2009
30, 2010
October
October
4.0 years
2.030, 2009
30, 2013(Note 3)Note 2: Repayment Method: February 26, 2010 to August 31, 2013: repayment of ¥20 million every 6 months, and October 26, 2013:
repayment of ¥840 million
Note 3: Repayment Method: January 29, 2010 to July 31, 2013: repayment of ¥40 million every 6 months, and October 30, 2013: repaymentof ¥1,680 million

As a result, the balance of interest-bearing debt stood at ¥97.22 billion as of October 31, 2009, comprising ¥85.22 billion inborrowings (¥75.22 billion in long-term borrowings and ¥10 billion in short-term borrowings) and ¥12 billion in investment
corporation bonds.
As of October 31, 2009, ¥29.5 billion out of ¥35 billion of long-term borrowings which have floating interest rates have been
fixed by utilizing interest-swap agreements. In addition, the long-term debt ratio (Note 4) was 89.7% and the long-term fixedinterest debt ratio (Note 5) was 84.1%.
Note 5: Long-term debt ratio＝（Balance of long-term borrowings＋Balance of investment corporation bonds）÷（Total borrowings＋Balanceof investment corporation bonds）Long-term debt ratio is rounded to the nearest first decimal place.
Note 6: Long-term fixed interest debt ratio＝（Balance of long-term fixed interest rate borrowings＋Balance of investment corporation bonds）
÷（Total borrowings＋Balance of investment corporation bonds）The balance of long-term fixed interest rate borrowings includes
borrowings with floating interest rates effectively fixed by utilizing interest-rate swap agreements. Long-term fixed interest debt ratio isrounded to the nearest first decimal place.

The balance of borrowings according to financial institution as of October 31, 2009 is as follows.
（Unit: Billions of Yen)
Ninth Fiscal Period
Ratio
Lender(as of October 31, 2009)(%)
Sumitomo Mitsui Banking Corporation
194.4
22.8
The Chuo Mitsui Trust and Banking Co., Ltd.
145.0
17.0
Aozora Bank, Ltd.
120.0
14.1
Development Bank of Japan Inc.
119.8
14.1
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
98.0
11.5
Mitsubishi UFJ Trust and Banking Corporation
72.0
8.4
Resona Bank, Ltd.
43.0
5.0
-7-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

The Norinchukin Bank
Citibank Japan, Ltd.
Mitsui Sumitomo Insurance Co., Ltd.
Total

40.0
10.0
10.0
852.2

4.7
1.2
1.2
-

(b) Overview of Posted Collateral
The status of the posted collateral as of October 31, 2009 are as follows.
（Unit: Millions of Yen)
Collateralized Assets (Secured)
Uncollateralized Assets (Unsecured)
Number of Appraisal Value at the End Number of Appraisal Value at the End
Properties
of Ninth Fiscal Period
Properties
of Ninth Fiscal Period
Office Buildings
37 properties
132,020 21 properties
51,197
Central Urban Retail Properties
1 property
10,300 1 property
1,940
Residential Properties
2 properties
5,790 3 properties
2,689
Total
40 properties
148,110 25 properties
55,826
Type

In addition, the outstanding balance of secured borrowings as of the end of the fiscal period under review (October 31, 2009)is 85.22 billion yen.
Note: As of December 14, 2009, the outstanding balance of secured borrowings are 84.22 billion yen.

(c) Diversification of Debt Maturities
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates for its
interest-bearing debt. Moreover, the total balance of interest-bearing debt as of the end of the ninth fiscal period (October 31,2009) maturing in each fiscal period is as follows.
Balance of Interest-Bearing Debt Maturing in Each Fiscal Period of the Investment Corporation（Billions of Yen）

Short-Term Borrowings

Long-Term Borrowings

Investment Corporation Bonds

25

20

9.00

15

10.09

10

18.34
15.59

4.59

10.53

5
5.00

5.58

5.00
2.44

3.06

15th
Period16th
Period

5.00

3.00

0
10th
Period11th
Period12th
Period13th
Period14th
Period17th
Period18th
Period19th
Period20th
Period21stPeriod22nd
Period23rd
Period24th
Period(Reference) Balance of Interest-Bearing Debt Maturing in Each Half-Year Period ending on March 31 and September 30
Short-Term Borrowings（Billions of Yen）

Long-Term Borrowings

Investment Corporation Bonds

3.06

3.06

2.52

2012
2H

2013
1H

2013
2H

20
18
16
9.00

14
12

12.34

10

18.59

8

11.59

6
4
2

10.03

2.59

6.44

5.00
3.00

2.00

2009
2H

2010
1H

5.00
3.00

0
2010
2H

2011
1H

2011
2H

2012
1H

2014
1H

2014
2H

2015
1H

2015
2H

2016
1H

2016
2H

Note: 1H is from April 1 to September 30, 2H is from October 1 to March 31 of the following year and are not identical with the fiscal
period of the Investment Corporation (e.g. 2009, 2H is from October 1, 2009 to March 31, 2010)-8-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(d) Status of Credit Rating
The Investment Corporation acquired a credit rating from Moody’s Investors Services, Inc. in February 2006, and credit ratingfrom Japan Credit Rating Agency, Ltd. in December 2006. Details of the credit ratings as of October 31, 2009 are as follows.
Credit Rating Agency
Moody’s Investors Service

Japan Credit Rating Agency, Ltd.

Details of the Ratings
Issuer Credit Rating
Senior Unsecured Long-Term Debt Rating
Outlook
Senior Debts
OutlookBa1
Negative
A+
Negative(e) Status of Shelf Registration
The Investment Corporation filed a debt shelf registration statement in February 2007, and on February 14, 2009, the issuance
period has matured. Therefore, the Investment Corporation once again filed a debt shelf registration statement on February 6,
2009. Details are as follows.

Planned Issue Amount
Planned Issuance Period
Use of Funds

Investment Corporation Bond
¥100,000,000,000
February 15, 2009 to February 14, 2011
Acquisition funds for specified assets, repayment of borrowings, repayment ofinvestment corporation bonds, refund of lease and guarantee deposits, funds to pay for repairs andmaintenance, working capital, etc

First Series Unsecured Investment Corporation Bonds of ¥9,000,000,000 and Second Series Unsecured Investment
Corporation Bonds of ¥3,000,000,000 have been issued in March 2007 based on the debt shelf registration statement filed in
February 2007.
In addition, the Investment Corporation filed an equity shelf registration statement to conduct equity financing in April 2007,
and on May 6, 2009, the issuance period has matured. Therefore, the Investment Corporation once again filed equity shelfregistration statements on April 27, 2009. Details are as follows.

Planned Issue Amount
Planned Issuance Period

Use of Funds

Investment Unit Certificate
Primary Offering¥100,000,000,000
May 8, 2009 to May 7, 2011
Acquisition funds for specified assets, repayment ofborrowings, repayment of investment corporation
bonds, refund of lease and guarantee deposits, funds topay for repairs and maintenance, working capital, etc.

Secondary Offering¥15,000,000,000
May 14, 2009 to May 7, 2011
Not applicable

There is no issuance based on the abovementioned investment unit certificate shelf registration.
(f) Status of Commitment Line Agreement
The status of the commitment line agreements during the fiscal period under review (October 31, 2009) are as follows.
LenderBorrowings Available
Borrowings BalanceCommitment Period

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
¥2,500 million (Note 1)¥2,500 million
March 21, 2008 to March 19, 2009-9-

Citibank Japan, Ltd.
¥2,500 million (Note 2)¥1,000 million (Note 2)
January 11, 2008 to January 8, 2009

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Notes:
1. The commitment period of the commitment line agreement concluded with The Bank of Tokyo-Mitsubishi UFJ, Ltd. hasalready expired. Furthermore, the expiration date of the commitment line agreement is March 31, 2011, set in thememorandum of understanding executed on September 26, 2008. However, since the commitment period has already
expired, the Investment Corporation may not undertake new borrowings.
2. Since, the commitment period and the expiration date of the commitment line agreement concluded with Citibank Japan, Ltd
has already expired, the Investment Corporation may not undertake new borrowings.
As of October 31, 2009, borrowings based on the commitment line agreement are as follows.
Balance
Classification
LenderDrawdown Date
(Billions of Yen)

Repayment Date

Series 33-L
(Short-Term) (Note 1)

Citibank Japan, Ltd.

1.0

November 4, 2008 November 2, 2009

Series 36-L
(Short-Term)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

0.5

February 27, 2009

February 26, 2010

Series 31-L
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(Long-Term) (Note 2)

2.0

September 30, 2008

March 31, 2011

Notes:
1. The Investment Corporation has repaid the Series 33-L (¥10 billion) on November 2, 2009 using cash on hands.
2. Concerning Series 31-L (¥2.0 billion), the Investment Corporation executed a memorandum of understanding on September
26, 2008 that sets March 31, 2011 as the expiration date of the commitment line agreement.
D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥7,921
million, operating income of ¥3,213 million, ordinary income of ¥2,103 million and net income of ¥2,102 million for its ninth
fiscal period. In accordance with Article 67.15 of the Special Taxation Measures Law, the Investment Corporation distributes thetotal amount of its unappropriated retained earnings for each period. Cash distribution for the ninth fiscal period was ¥10,511 per
unit

-10-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Outlook
A. Investment Environment
The Japanese economy is still in a state of difficulty, with such factors as the unemployment rate remaining at a high level. For the
moment it is necessary to keep a careful eye on the risks that might push down the economy, including the worsening employment
situation, concerns over weakening overseas economies, and the impact of deflation and the fluctuations in the financial capital market.
On the other hand, given the completion of inventory adjustments, the government’s economic measures taking effect and theimprovement in the external economic environment, it is expected that the recovering trend of the economy will continue.
As for the real estate market, the land price changes announced on November 27, 2009 by the Ministry of Land, Infrastructure, Transport
and Tourism (covering July 1 to October 1, 2009) showed that land prices of the high urbanization zones in major cities continued on adecreasing trend against the background of low land demands that reflect the stagnant economy, increased vacancy rates in offices andother properties, and lowered profitability due to drops in rents. Meanwhile, the rate of decrease has decelerated in general due to
expectations for an economic recovery, progress in inventory and price adjustments, and other factors.
In the office building leasing market, downward adjustments of rents are expected to continue for a while. Nevertheless, decreases indemand for office spaces and quantitative reductions in offices due to worsened corporate performance and other causes seem to be
gradually waning, and there is a growing expectation for a bottoming due to the heightening in the view that the brakes will be put onvacancy rates of office buildings, which have continued to rise to date.
B. Future Management Policies
The Investment Corporation adopts the basic policy of conducting dynamic and flexible investment that accurately reflects the trends
and ensures a timely response, and developing a diversified investment portfolio focused on a three-point investment criterion based on
property type, area and size. From this standpoint and in light of the investment environment described above (the Japanese economy,
land price trends, leasing market for office buildings, etc.), the Investment Corporation creates a property investment strategy, existing
property management strategy, and financial strategy in a dynamic and flexible manner as set forth below.
(a) New Property Investment Strategy and Sales Policy
The Investment Corporation aims to “build a strong portfolio primarily comprising mid-sized office buildings” by making investments
in a flexible and dynamic way that does not miss “trends” and the “timing.”
Given the global credit crunch, the Investment Corporation has put priorities on improving its financial standing and selling its properties
since the eighth fiscal period (fiscal period ended April 30, 2009). However, it now believes that it is time to start shifting its approach andpursue portfolio growth over a medium to long term, a natural position of a listed J-REIT.
Looking at the market, financial institutions continue to take a stringent attitude to provide loans to real estate companies and real estate
funds, and there is a possibility that the sale of properties as collateral to non-recourse loans and CMBSs will increase. In addition,although there do exist investors and other parties that seek opportunities to buy domestic real estate, not many are actually making
acquisitions. Thus, the present conditions also represent a good opportunity in terms of competition. Under these circumstances, theInvestment Corporation occupies an advantageous position in the transaction market for mid-sized office buildings, as it holds a portfolio
surpassing 200 billion yen and has an abundant track-record in investing in and managing mid-sized office buildings, as well as a goodprospect of improving its financial standing and proven financial stability.
Against such a backdrop, the Investment Corporation considers the present situation as “the arrival of a good opportunity to work to seek
stable growth of its portfolio through newly acquiring mid-sized office buildings.” With this perspective, the Investment Corporation
intends to re-start acquiring mid-sized office buildings ahead of the recovery of the market, without waiting for deals in the overall officebuilding transaction market to become active.
The Investment Corporation aims to acquire properties that should contribute to increased profitability of its portfolio, fully considering
the rental NOI yield (Note) of the portfolio it owns, the weighted average costs and the significance and impact of the properties on its
growth strategies.
Moreover, the Investment Corporation will examine the sale of properties individually in accordance with the necessity to enhancefinancial soundness or with the room for replacement of assets that assumes property acquisitions.
Of this, concerning central urban retail properties and residential properties, the Investment Corporation will not only refrain fromconducting new investments, but will also place such properties on the top of the list of properties to sell while taking into consideration
the market environment, asset size and other factors. In addition, in light of the characteristic features of individual properties and-11-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

depending on the sales terms and conditions, the Investment Corporation will not exclude office buildings either from the list of
properties that could be sold. Moreover, the Investment Corporation will not exclude assets whose cash flow shows no signs ofimprovement for the short-term from the list of properties that could be sold.
Note: The leasing NOI yield is a weighted-average figure of the annualized yield of leasing NOI（= Rental revenues - Rental expenses +Depreciation expenses for the period）against the acquisition price, in accordance with the operating period.
(b) Existing property management strategy
Taking into consideration economic and real estate market trends, the Investment Corporation adopts a tenant-oriented approach to its
leasing activities with aims of ensuring a timely and flexible responses as well as optimal tenant satisfaction. Accordingly, the Investment
Corporation will aim to maintain / increase of the cash flow by offering office environment with high tenant satisfaction. Based on the
aforementioned, the Asset Management Company undertakes property management activities as follows:・Identify satisfaction through use of tenant surveys
・Reduction of Construction Budget
・Measures to Maintain and Raise Competitiveness of Properties
・Leasing management according to the market environment
・Careful control of management and operating costs by taking advantage of portfolio size・Appropriate responses to relevant laws and regulations
Identify tenant satisfaction through use of tenant surveys
The Investment Corporation recognizes each tenant as a key customer and strives to enhance customer satisfaction and raise thecompetitiveness of its properties as the means to maintain and increase earnings.
The Investment Corporation conducted a customer satisfaction survey (“CS Survey”) through J.D. Power Asia Pacific, Inc., aninternationally recognized company that engages in customer satisfaction evaluation, to better understand the needs of its tenants and takesteps to respond to their preferences. As a part of this survey the administration officers of each tenant and tenant employees were asked torespond to many questions concerning buildings and facilities as well as operating and management services. The Investment Corporation
conducted the first CS Survey, which covered 20 of its properties, during the second fiscal period, the second CS Survey, which covered 44
of its properties, during the fifth fiscal period and the third CS Survey, which covers 58 properties during the fiscal period ending October
31, 2009.
Details of the Third CS Survey
Target respondent for the survey: The administration officers of each tenant and tenant employees of the 57 office buildings andone central urban retail property.
Survey population / Response rate: 477 administration officers / 392 collected (response rate of 82%)
2,950 tenant employees / 2,449 collected (response rate of 83%)
Examples of questions: Building location and environment, external façade, lease space areas (air conditioning system, lighting,ventilation, OA compliant etc.), common use area (elevators, etc. facilities), the service of property
manager and person in charge of the building maintenance company, status of cleaning, security, fire
prevention and construction conducted during the period
The comprehensive satisfaction rating results for the 2nd and 3rd CS Survey are as follows.
＜Comprehensive Satisfaction Rating＞
Satisfied
3rd CS Survey
2nd CS Survey

19%
16%

Slightly
Satisfied
49%
48%

Neither
22%
25%

Slightly
Dissatisfied
6%
9%

Dissatisfied

Unknown

1%
1%

3%
1%

Note 1: Target respondent for the survey are the administration officers of each tenant and tenant employees.
Note 2: Ratios are rounded down to the nearest first decimal place.

Based on the results of the first survey conducted in December 2005 and the second survey conducted in July 2007, the Investment
Corporation has strived to maintain and enhance customer satisfaction by, in terms of hardware (buildings and facilities), implementing-12-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

construction for maintenance and construction in response to the CS Survey (renovations to enhance value and for other purposes) for
respective properties in a way to meet tenant needs and, in terms of software (operating and management services), by changing building
maintenance companies for properties with low satisfaction on building management, and conducting improvement activities individuallybased on the feedback to questionnaires to administration officers on the site.
The third survey showed enhanced satisfaction in most items, resulting in the reflection of the improvement activities the Investment
Corporation has taken to date. Given the results of the latest survey, the Investment Corporation will establish a guideline centering on
improvement measures to reflect issues of dissatisfaction in terms of software, etc., including cleaning.
The Investment Corporation will continue to listen to the voices of tenants, its customers, and will endeavor to conduct improvement
activities after grasping its strengths and problems both in terms of hardware and software for each property, in pursuit of maintaining andenhancing tenant satisfaction.
By continuously conducting such surveys, the Investment Corporation will aim to increase customer satisfaction, generate
improvements in rent levels and asset values, promote enhanced earnings and aim to maintain and increase cash flow.
Reduction of the Construction Budget
Backed by the favorable leasing market for office buildings in the past, the Investment Corporation had thus far been proactively
conducting construction to enhance value under the objective of maintaining and improving rent levels and asset values. However, thebudget for major construction to enhance value has been reduced starting from the eighth fiscal period (fiscal period ended April 30,2009), due to having completed the bulk of construction measures at many of its portfolio properties. For the tenth fiscal period andonwards, the Investment Corporation continues to conduct management under the policy of keeping construction expenditures to thescope necessary.
Moreover, the following are changes in the actual costs and budgets of the repairs, maintenance and renovation plans (construction
budget) and changes in depreciation expenses.
Depreciation（ Billions of Ye n）

Construction actual cost・budget

180.0
150.0
120.0
90.0
139.2

135.7

60.0

143.0

144.5
130.2

129.4

147.0

145.1

142.9

142.3

103.0

30.0

57.1

47.1

35.9

0.0
5th Period
Result6th Period
Result7th Period
Result8th Period
Result9th Period
Result10th Period
Budget11th Period
BudgetMeasures to Maintain and Raise Competitiveness of Properties
The Investment Corporation aims to provide attractive mid-sized office buildings in order to enhance portfolio value and rental revenues.
The Investment Corporation believes that the quality of mid-sized office buildings in Japan vary considerably depending on the nature of
the owner. For example, a building owned by an individual or small company that owns only one or a few buildings may not have theresources to provide high-quality maintenance. Furthermore, when a building is owned by a large company, property management isoften dictated by that company’s priorities and does not necessarily correspond to tenant needs or satisfaction.
Based on the results of the CS Survey, the Investment Corporation will consolidate its building maintenance companies by taking utmost
advantage of the portfolio size, and then will implement operation and management in close contact with the actual properties in order tofurther enhance the management quality and services. Moreover, the Investment Corporation will work to reduce construction budgets
by focusing on construction for renovations that are useful for lease-up, in addition to appropriate construction for repairs andmaintenance. The Investment Corporation will set unified standards in regards to specifications and services that tend to differ by
property, and implement measures to enhance the value by carrying out property management based on these unified standards. By
doing so, the Investment Corporation aims to maintain rent levels and asset values.
-13-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary target of the Investment Corporation’s investment, are that manyof the tenants generally tend to be small- and medium-sized enterprises and turnover ratios are relatively high. Therefore, in the leasing
aspect, the Investment Corporation implements leasing activities in a timely and flexible manner by adopting the basic policy ofendeavoring to maximize revenues for the medium- to long-term through maintaining occupancy ratios, while taking into accounteconomic and real estate market trends.
Concerning the solicitation of new tenants, the Investment Corporation strives to shorten the period of vacancy and boost the occupancy
ratio by implementing dynamic and flexible leasing activities through the sharing of information closely with leading brokers, holding ofpreviews, marketing directly to corporations, utilizing guarantee companies and other measures.
On the other hand, the Investment Corporation will endeavor to conduct property management so as to increase customer satisfaction by
adopting the basic policy of maintaining current conditions in serving existing tenants.
Careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation utilizes the scale merits of owning many properties and the negotiating strength acquired through its past
management performance to reduce building maintenance costs. The Investment Corporation has managed to reduce building
maintenance expenses for office buildings, trust fees and electricity costs at some properties by reviewing the content of building
maintenance. In addition, the Investment Corporation has managed to improve the efficiency of content of maintenance and also
managed to reduce costs by consolidating the building maintenance company for office buildings in Tokyo.
The Investment Corporation will continue to carefully control management and operating costs by periodically reviewing its property
management standards to ensure that they remain relevant and appropriate for each property.
Appropriate responses to relevant laws and regulations
The Investment Corporation will swiftly collect information with regard to the laws to be revised, including the Energy Saving Act, as
well as present laws and regulations, to appropriately make the required responses.
The Investment Corporation has appointed the Asset Management Company as its sole property management company for the entire
portfolio as of the end of the ninth fiscal period. In establishing a single point of contact for all matters relating to property management
activities, the Investment Corporation strives to secure consistent policies, specifications and procedures along with ensuring swift andquality service.
(c) Financial Strategy
The Investment Corporation will seek to diversify its debt repayment period to reduce refinancing risk. Furthermore, the Investment
Corporation will pursue stable financial management through such measures as continuing to maintain long-term debt ratios above
prudent levels. Furthermore, through prepayment of borrowings (mainly borrowings whose repayment dates will arrive within 1 year)
by refinancing them as long-term borrowings and other measures, the Investment Corporation will aim to extend the average life of its
debts.
To date, the Investment Corporation has aimed to keep the ratio of interest-bearing debt to total assets at less than 50% as a rule. In orderto realize even more stable financial operations, it has changed the target to less than 45% and carry out conservative leverage control in
preparation for property acquisitions.
Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial
institutions, especially mega-banks, trust banks and Development Bank of Japan, Inc., as well as aim for more conservative financial
management than ever before.
(d) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aim ofpromptly providing a wide range of relevant information to investors. In specific terms, the Investment Corporation provides information
through the Timely Disclosure Network System (TDnet), which is a system operated by the Tokyo Stock Exchange, as well as press
releases and its Web site (URL: http://www.kdx-reit.com/eng/ ).
-14-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(3) Important Subsequent Events
Important subsequent events after the closing of the fiscal period ended on October 31, 2009 are as follows.
Primary Offering of the Issue of New Investment Units
On October 29, 2009 and November 9, 2009, the Board of Directors of the Investment Corporation resolved to issue newinvestment units as detailed below. The payments were completed on November 16, 2009 through public offering. As a result of theissuance of additional investment units, the Investment Corporation had total unitholders’ capital of ¥133,129,755,470 with 233,550
investment units outstanding as of November 16, 2009.
① Issuance of New Investment Units through Public Offering
Total Number of Units Issued：
33,550units
Issue Price (Offer Price)：¥252,200 per unit
Total Amount of the Issue Price (Offer Price)：¥8,461,310,000
Paid-in Value (Issue Value)：¥243,100 per unit
Gross Proceeds：¥8,156,005,000
Payment date：November 16, 2009
Starting date of the computation of cash distribution：
November 1, 2009
② Use of Funds
The Investment Corporation has applied the net proceeds from the public offering of new investment units to acquire thefollowing properties.
(Reference)① Acquisition of Properties
On November 18, 2009, the Investment Corporation acquired Koishikawa TG Building, Gotanda TG Building and KDX
Shin-Yokohama 381 Building Annex Tower and KDX Nihonbashi 216 Building on December 1, 2009 (trust beneficiaryinterests in 4 properties for a total acquisition price of ¥8,810 million) utilizing net proceeds from the public offering of new
investment units.
Property Name
Type of Specified
Asset
Location (Address)
Type of Structure
Site Area
Completion Date
Acquisition Price

Property Name

Koishikawa TG Building (Office Building)

Property Name
Type of Specified
Asset
Location (Address)
Type of Structure
Site Area

Trust beneficiary interest in real estate
1-12-16 Koishikawa, Bunkyo-ku, TokyoB1 F8
5,862.02 ㎡
November 1989

Completion Date
Acquisition Price

3,080 million yen
KDX Nihonbashi 216 Building(Office Building)Type of Specified
Asset
Location (Address)

2-16-2 Nihonbashi, Chuo-ku, Tokyo

Type of Structure
Site Area

9F
1,871.62 ㎡

Property Name

Gotanda TG Building (Office Building)Trust beneficiary interest in real estate
7-9-2 Nishi-Gotanda, Shinagawa-ku, Tokyo
B1 F94,440.61 ㎡
April 1988
2,620 million yen
KDX Shin-Yokohama 381 Building Annex Tower(Office Building)Type of Specified
Trust beneficiary interest in real estate
Asset
Location (Address) 3-8-11 Shin-Yokohama, Kouhoku-ku,
Yokohama-shi, Kanagawa
Type of Structure B1 F10 (Note)
10,290.30 ㎡ (Note)
Site Area
April 2009
Completion Date

Trust beneficiary interest in real estate

October 2006
Completion Date
Acquisition Price
2,010 million yen
Acquisition Price
1,100 million yen
Note: The entire building is comprised of 5 units for exclusive use, 1 unit for common use under the agreement and other common use portions. The
property refers to the office and retail shop portions on floors 1 through 9 (1 unit for exclusive use). Moreover, of the total portion of all 5
exclusive use units of the entire building (total of 8,527.48㎡), the Property’s exclusive use portion totals 2,406.74㎡ (approximately 28.223%).
Furthermore, the ratio of shared compartmentalized ownership of the common use area of the Property is 28.223%-15-

KENEDIX REALTY INVESTMENT CORPORATION (8972)②Debt Financing
The Investment Corporation has executed the following debt financing on December 8, 2009.
Series 41 (Note)
Lender：Resona Bank, Ltd.
Amount：¥500 million
Interest Rate
：1.67125% fixed rate of interest
Repayment Method：Principal repayment in full on maturity
Repayment Date ：December 10, 2012
Collateral：Secured, unguaranteed
Note: The Investment Corporation has applied the funds toward the repayment of Series 34 (total of ¥500 million)
with a repayment date of December 8, 2009.
.
③Repayment of Debt Financing
The Investment Corporation repaid the following debt financing on November 2, 2009 using cash on hands.
Series 33-L
Lender：Citibank Japan, Ltd.
Amount：¥1,000 million
Drawdown Date ：November 4, 2008
Repayment Method：Principal repayment in full on maturity
Repayment Date ：November 2, 2009-16-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Outlook
Forecasts for the tenth fiscal period (November 1, 2009 to April 30, 2010) are presented as follows. Please refer to the “Preconditions andAssumptions for the Fiscal Period Ending April 30, 2010” below for factors that underpin forecasts.
Operating Revenues
Operating Income
Ordinary Income
Net Income
Distribution per Unit
Distribution in Excess of Earnings per Unit

¥7,965 million¥3,521 million¥2,408 million¥2,407 million¥10,300¥0

Note: Forecast figures are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income anddistribution per unit may differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does notguarantee payment of the forecast distribution per unit.
“Preconditions and Assumptions for the Fiscal Period Ending April 30, 2010”
Preconditions and Assumptions
Calculation Period
Property Portfolio

Operating Revenues

 The tenth fiscal period: November 1, 2009 to April 30, 2010 (181 days)
 Forecasts are based on the 69 properties held as of December 14, 2009. This will remain unchanged(no new properties will be acquired and no existing properties will be sold) up to and including theend of the tenth fiscal period.
 The property portfolio may change due to a variety of factors.
 Rental revenues from the current properties held as of December 14, 2009 are estimated based on
historical performance and a variety of factors including leasing market conditions. Rental revenues
from the anticipated property acquisitions are estimated based on valid lease agreements a s of the daynearest to the present day, information from existing property owners regarding leasing conditionsetc., and a variety of factors including each property’s competitive standing and market conditions.

Operating Expenses

 Property-related expenses other than depreciation are estimated based on historic expenses, adjusted
to reflect the expenses variables.
 For the tenth fiscal period, an amount of ¥780 million has been estimated for property management
and building maintenance fees.
 For the tenth fiscal period, an amount of ¥637 million has been estimated for taxes and public dues
(property tax and city-planning tax, etc.).
 For the tenth fiscal period, an amount of ¥1,470 million has been estimated for depreciation expense.
 For the tenth fiscal period, an amount of ¥105 million has been estimated for repairs and maintenanceexpense.
 In general, property tax and city planning tax are allocated to the seller and purchaser on a pro rata
basis at the time of acquisition settlement. In the case of the Investment Corporation, an amountequivalent to the portion allocated to the purchaser is included in the acquisition price of the property.
Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by theasset management company for each property and amounts considered essential for each period.
Actual repairs, maintenance and renovation expenses for each fiscal period may, however, differ
significantly from estimated amounts due to unforeseen circumstances or emergencies.

Non-Operating Expenses

 A temporary expense of approximately ¥45 million is estimated for the Investment Corporation’s
issuance of new investment units.
 The Investment Corporation is amortizing unit issuance costs over a period of three years using thestraight-line method.
 Interest payable (including financing related expenses etc.) of ¥1,071 million is forecasted for thetenth fiscal period.

Debt Financing and Investment

 The balance of the borrowings and the investment corporation bonds as of December 14, 2009 are-17-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Corporation Bonds¥84.22 billion and ¥12.0 billion, respectively, and the balance will remain unchanged up to andincluding the end of the tenth fiscal period, excluding the following. Forecasts are based on theassumption that all borrowings that will mature up until the end of the tenth fiscal period will be
refinanced.

Investment Units Issued andOutstanding The number of investment units issued and outstanding as of December 14, 2009 is 233,550 units.
Forecasts are based on the assumption that the number of investment units issued and outstanding
shall remain unchanged for the tenth fiscal period.

Distributions per Unit Distributions per unit are calculated in accordance with the distribution policy outlined in theInvestment Corporation’s Articles of Incorporation.
 Actual distributions per unit may differ significantly from forecasted figures due to a variety ofreasons including movements in investment assets, rental revenues impacted by tenant movements or
the incidence of major unforeseen renovation expense.

Distributions in Excess of
Earnings per Unit
Other

 The Investment Corporation does not currently anticipate distributions in excess of earnings per unit.
 Forecasts are based on the assumption that any revisions to regulatory requirements, taxation,accounting standards, public listing regulations or requirements of the Investment Trusts Association,
Japan will not impact forecast figures.
 Forecasts are based on the assumption that there will be no major unforeseen changes to economic
trends and in real estate and other markets.

-18-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

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

Ninth Fiscal Period(As of April 30, 2009)(As of October 31, 2009)ASSETS
Current assets
Cash and deposits

9,981,142

7,256,449

Cash and deposits in trust

5,626,942

5,613,980

Accounts receivable-trade260,568

184,068

Prepaid expenses

59,59591,624

Consumption taxes receivable

-

Other
Total current assets

136,064

13,727

7,671

15,941,976

13,289,859

Noncurrent assets
Property, plant and equipment
Buildings

11,230,049

14,618,085

Accumulated depreciation△696,022△935,923

Buildings, net

10,534,027

13,682,162

Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

9,402

18,435△2,078△2,892

7,323

15,54237,885339,167△23,222△35,049

14,663

304,118

Tools, furniture and fixtures

39,65369,192

Accumulated depreciation△5,367△8,057

Tools, furniture and fixtures, net

34,286

61,134Land

29,104,205

29,104,205

Buildings in trust

62,890,727

62,107,732

Accumulated depreciation△6,378,641△7,195,211

Buildings in trust, net

56,512,085

54,912,521

198,761

186,000

Accumulated depreciation△56,034△57,274

Structures in trust, net

142,726

128,725

Machinery and equipment in trust

863,259

888,915

Accumulated depreciation△267,320△306,257

595,938

582,658

Tools, furniture and fixtures in trust

340,194258,519

Accumulated depreciation△115,256△109,553

224,937

148,966

124,725,632

123,222,811

221,895,828

222,162,846

285,350

285,350

Structures in trust

Machinery and equipment in trust, net

Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Leasehold right
Right of using water facilities in trust
Total intangible assets
Investments and other assets

-19-

1,382

1,264

286,732

286,614

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Eighth Fiscal Period

Ninth Fiscal Period(As of April 30, 2009)(As of October 31, 2009)

Lease and guarantee deposits

11,982

11,982Long-term prepaid expenses

498,863494,974

6,554

5,724

Deferred tax assets
Total investments and other assets
Total noncurrent assets

517,400

512,681

222,699,960

222,962,141

Deferred assets
Business commencement expenses

10,1795,089

Investment corporation bond issuance costs

45,524

39,646

Investment unit issuance expenses

47,36823,684

Total defferred assets
Total assets

103,072

68,420238,745,009

236,320,421(Thousands of Yen)
Eighth Fiscal Period

Ninth Fiscal Period(As of April 30, 2009)(As of October 31, 2009)

Liabilities
Current Liabilities
Accounts payable

304,660

288,251

Short-term loans payable

10,000,000

10,000,000

Current portion of long-term loans payable

9,000,000

14,500,000

Accounts payable-other

310,173

181,652

Accrured expenses

127,475

122,646

Income taxes payable

649

752

Accured consumption taxes

288,058

48,009Advances received

1,173,618

1,133,737

Deposits received

68,644

15,105

21,273,278

26,290,155

Investment corporation bond

12,000,000

12,000,000

Long-term loans payable

67,750,000

60,720,000

Tenant leasehold and security deposits

1,536,640

1,624,183

Tenant leasehold and security deposits in trust

8,770,327

8,604,358

16,665

14,554

Total current liabilities
Noncurrent liabilities

Derivatives liabilities
Total noncurrent liabilities

90,073,632

82,963,096

111,346,911

109,253,252

124,973,750

124,973,750

Unappropriated retained earnings (undisposed loss)

2,434,458

2,102,248

Total surplus

2,434,458

2,102,248

127,408,208

127,075,999△10,110△8,830Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus

Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets-20-△10,110△8,830127,398,097

127,067,169

238,745,009

236,320,421

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

Ninth Fiscal Period

November 1, 2008 to

May 1, 2009 to

April 30, 2009

October 31, 2009

Operating revenue
Rent revenue-real estate

7,232,621

6,906,124

Other lease business revenue

971,500

1,015,736

Total operating revenue

8,204,121

7,921,861

3,603,207

3,652,104

Operating expenses
Expenses related to rent business
Loss on sales of real estate properties

492,462

440,771

Asset management fee

434,810423,182

Directors' compensation

5,400

5,400

Asset custody fee

24,07724,018Administrative service fees

54,35452,708

Audit fee

10,80010,800

Other operating expenses

115,822

99,522

Total operating expenses

4,740,935

4,708,508

3,463,186

3,213,353

8,280

2,697

-

2,690

Other

3,657

612

Total non-operating income

11,9385,999Interest expenses

745,040

793,503

Interest expenses on investment corporation bonds

113,378

114,321

Borrowing related expenses

107,827

147,898

Operating income
Non-operating income
Interest income
Dividends and redemption-prescription

Non-operating expenses

Amortization of investment corporation bond issuance costs

5,781

5,877

Amortization of investment unit issuance expenses

41,46823,684

Amortization of business commencement expenses

5,089

5,089

Other

21,20825,7291,039,795

1,116,104

Ordinary income

2,435,329

2,103,248

Income before income taxes

2,435,329

2,103,248

959

1,255

Income taxes-deferred

10

△197

Total income taxes

969

1,057

2,434,359

2,102,190

98

58

2,434,458

2,102,248

Total non-operating expenses

Income taxes-current

Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)-21-

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

Ninth Fiscal Period

November 1, 2008 to

May 1, 2009 to

April 30, 2009

October 31, 2009

Unitholders' equity
Unitholders' capital
Balance at the end of previous period

124,973,750

124,973,750--

124,973,750

124,973,750

3,123,698

2,434,458△3,123,600△2,434,400

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

Unappropriated retained earnings (undisposed loss)
Balance at the end of previous period
Changes of items during the period
Distribution from surplus
Net income

2,434,359

2,102,190

Total changes of items during the period△689,240△332,209

2,434,458

2,102,248

128,097,449

127,408,208△3,123,600△2,434,400

Balance at the end of current period

Total unitholders' equity
Balance at the end of previous period
Changes of items during the period
Distribution from surplus
Net income
Total changes of items during the period
Balance at the end of current period

2,434,359

2,102,190△689,240△332,209

127,408,208

127,075,999△9,872△10,110

Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at the end of previous period
Changes of items during the period
Net change of items other than owners' equity

△238

1,280

Total changes of items during the period

△238

1,280

△10,110△8,830△9,872△10,110

△238

1,280

Balance at the end of current period

Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net change of items other than owners' equity
Total changes of items during the period
Balance at the end of current period

△238

1,280

△10,110△8,830128,087,577

127,398,097△3,123,600△2,434,400

2,434,359

2,102,190

Total net assets
Balance at the end of previous period
Changes of items during the period
Distribution from surplus
Net income
Net change of items other than owners' equity
Total changes of items during the period
Balance at the end of current period

-22-

△238

1,280

△689,479△330,928

127,398,097

127,067,169

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

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)

I. Retained earnings at the end of period

2,434,458,226

2,102,248,920

II. Total Distribution

2,434,400,000

2,102,200,000(Distribution per Unit)(12,172)(10,511)

III. Retained Earnings bring to next period

58,22648,920The Investment Corporation determines

In accordance with the policy depicted in

the amount of distribution in accordance with

Article 35-1 of its Articles of Incorporation,

Article 35-1 of its Articles of Incorporation,

the Investment Corporation determines thatwhich must exceed 90% of its distributable

the amount of distribution shall exceed theincome as stipulated in Article 67-15 of theamount equivalent to 90% of its distributable

Special Taxation Measures Law. The

profit as stipulated in Article 67-15 of theInvestment

therefore

Special Taxation Measures Law, and shall bedecided to distribute the maximum amount

up to the amount of its profits as the ceiling.

of retained earnings at the period-end of

Following this policy, the Investment

period, namely totaling ¥2,434,400,000 to

Corporation has decided to distribute the200,000 units issued and outstanding.

maximum amount of retained earnings at theProcedures for the distribution of amounts

period-end, namely totaling ¥2,102,200,000

exceeding distributable income are outlined

to 200,000 units issued and outstanding.

Method of calculating the distribution amountCorporation

has

Investment

Procedures for the distribution of amounts

Corporation’s Articles of Incorporation. In its

exceeding distributable income are outlined

fiscal period under review, the Investment

in

Corporation has decided not to distribute

Corporation’s Articles of Incorporation. In its

cash in excess of distributable income.

fiscal period under review, the Investment

in

Article

35-2

of

the

Article

35-2

of

the

Investment

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

-23-

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

Ninth Fiscal Period

November 1, 2008 to

May 1, 2009 to

April 30, 2009

October 31, 2009

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

2,435,329

2,103,248

Depreciation and amortization

1,429,328

1,451,832

Amortization of long-term prepaid expenses

90,327

127,148

Interest income△8,280△2,697

Interest expenses

858,418

907,825

Amortization of deferred organization expenses

5,089

5,089

Amortization of investment unit issuance expenses

41,46823,684

Amortization of investment corporation bond issuance expenses

5,781

5,877

Decrease (increase) in accounts receivable-trade△73,289

76,500Decrease (increase) in consumption taxes refund receivable

180,365△136,064

Decrease (increase) in prepaid expenses

21,185△17,239

Increase (decrease) in accounts payable△102,410△10,184

Increase (decrease) in accounts payable-other△12,573△126,228

Increase (decrease) in accrued consumption taxes

252,054△240,048

Increase (decrease) in advances received△64,576△39,880

Increase (decrease) in deposits received

62,233△53,538-

23,394

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

3,108,889

2,348,605

Decrease (increase) in long-term prepaid expenses△401,369△138,049△2,317

16,671

7,825,654

6,325,947

Loss on retirement of noncurrent assets

Other, net
Subtotal

8,280

2,697

△872,143△912,655

△605

△649

6,961,186

5,415,340

Purchase of property, plant and equipment△239,340△3,742,226

Purchase of property, plant and equipment in trust△684,277△368,340△1,422-244-

Payments of tenant leasehold and security deposits△58,660△97,127

Proceeds from tenant leasehold and security deposits

80,142

184,669

Payments of tenant leasehold and security deposits in trust△719,185△595,087

Proceeds from tenant leasehold and security deposits in trust

361,048

429,119

Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investment activities

Purchase of intangible assets in trust
Proceeds from collection of lease and guarantee deposits△1,390,000-

Payments of restricted bank deposits in trust△562△16,918

Proceeds from restricted bank deposits in trust

820,124

1,034△1,831,889△4,204,877

Payments of bank deposits in trust

Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Increase in short-term loans payable

12,000,000

5,000,000

Decrease in short-term loans payable△7,000,000△5,000,000

Proceeds from long-term loans payable

9,500,000

3,000,000-24-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Eighth Fiscal Period

Ninth Fiscal Period

November 1, 2008 to

May 1, 2009 to

April 30, 2009

October 31, 2009

Repayment of long-term loans payable△14,500,000△4,530,000

Dividends paid

△3,121,450△2,434,002

Net cash provided by (used in) financing activities△3,121,450△3,964,002

Net increase (decrease) in cash and cash equivalents

2,007,845△2,753,538

Cash and cash equivalents at beginning of period

11,703,649

13,711,494

13,711,494

10,957,955

Cash and cash equivalents at end of period

※

-25-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(6) Notes【Going Concern】
Ninth Fiscal Period(May 1, 2009 to October 31, 2009)

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)
None

Same applies as left.

【Important Accounting Standards】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)
1. Depreciation of fixed assets

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)(1) Property, plant and equipment (includes trust assets)(1) Property, plant and equipment (includes trust assets)

The straight-line method is applied.

Same applies as left.

Useful lives of the assets ranging are as follows:
Buildings: 2 to 49 years
Structures: 2 to 45 years
Machinery and equipment: 3 to 17 years
Tools, furniture and fixtures: 3 to 20 years(2) Intangible assets (includes trust assets)(2) Intangible assets (includes trust assets)

The straight-line method is applied.

Same applies as left.

Right of using water facilities: 6 years

2. Accounting policies for deferredassets(3) Long-term prepaid expenses
The straight-line method is applied.

(3) Long-term prepaid expenses
Same applies as left.

(1) Deferred organization expenses(1) Deferred organization expenses

Organization costs are amortized over a period of 5 years.

Same applies as left.

(2) Investment unit issuance costs(2) Investment unit issuance costs

Unit issuance costs are amortized over a period of 3 years.

Same applies as left.

(3) Investment corporation bond issuance costs(3) Investment corporation bond issuance costs
Same applies as left.

Bond issuance costs are amortized by applying thestraight-line method for the entire redemption period.
3. Accounting standards for revenues
and expenses

Accounting method for property tax

Accounting method for property tax

Property-related taxes including property taxes and city

Same applies as left.

planning taxes, etc. are imposed on properties on a calendar
year basis. These taxes are generally charged to rental
expenses for the period, for which the payment was madeduring the said period.
In connection with the acquisition of real estate including
trust beneficiary interests in real estate during the fiscal
period under review, the Investment Corporation
included its pro rata property portion for the year in each
property acquisition price and not as rental expense.
There are no property taxes included in acquisition prices
for the fiscal period under review.

-26-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)
4. Accounting for hedges

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)(1) Hedge accounting method(1) Hedge accounting method

The deferred hedge method is applied. However, theSame applies as left.

special treatment is applied for the interest-rate swap
agreements that meet the criteria.
(2) Hedging instruments and risks hedged(2) Hedging instruments and risks hedged

Hedge instruments

Hedge instruments

The Investment Corporation enters into interest-rate

Same applies as left.

swap transactions.

Risks hedged

Risks hedged

Same applies as left.

Interest rates on debt.
(3) Hedging policy(3) Hedging policy

The Investment Corporation enters into derivative

Same applies as left.

transactions based on its risk management policies withthe objective of hedging risks in accordance with its
Articles of Incorporation.
(4) Method of evaluating the effectiveness of hedging(4) Method of evaluating the effectiveness of hedging

During the period from the commencement of hedging

Same applies as left.

to the point at which effectiveness is assessed, theInvestment Corporation compares the cumulative total ofmarket changes in the targeted objects of hedging or cash
flow changes with the cumulative total of market
changes in the hedging instruments or cash flow changes.
The Investment Corporation then makes a decision basedon the changes and other factors of the two.
However, the interest-rate swap agreements that meet thecriteria for special treatment, the evaluation ofeffectiveness are omitted.
5. The scope of cash and cash

For the purpose of cash flow statements, cash and cash

equivalents on statements ofequivalents consist of cash on hand, deposits received

cash flowsthat can be withdrawn on demand, and short-termSame applies as left.

investments with original maturities of three months or
less, that are readily convertible to known amounts ofcash and present insignificant risk of a change in value
6. Other significant accounting(1) Accounting method for trust beneficiary interests in(1) Accounting method for trust beneficiary interests inpolicies utilized in the preparation

real estate and other assets

real estate and other assetsof financial statements

The assets and liabilities as well as revenues andSame applies as left.

expenses of financial assets held in the form of trust
beneficiary interests in real estate and other assets arerecorded in full in the Investment Corporation’s balance
sheets and statements of income.
Important line items included in accounting for financial
assets in the Investment Corporation’s balance sheet are
as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery andequipment in trust, tools, furniture and fixtures in trust,-27-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)and land in trust
3. Right of using water facilities in trust
4. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax(2) Accounting method for consumption tax
Consumption

taxes

are

separately

recorded.

Same applies as left.

Non-deductible consumption taxes applicable to theacquisition of assets are included in the cost of acquisition
for each asset.
【Notes on Changes in Presentation or Classification】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)“Dividends and redemption-prescription,” which was included in “Other”
under “Non-operating income” in the eighth fiscal period and before, has been
separately presented as the amount exceeded 10% of non-operating income.
The amount of “Dividends and redemption-prescription” in the eighth fiscal
period was ¥1,041 thousand.

-28-

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

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)*1. Minimum unitholders’ equity pursuant to Article
67-4 of the Law Concerning Investment Trusts*1. Minimum unitholders’ equity pursuant to Article¥50,000

67-4 of the Law Concerning Investment Trusts

and Investment Corporations Law¥50,000

and Investment Corporations Law*2. Balance of undrawn credit facility*2. Balance of undrawn credit facility

The Investment Corporation established credit facilities with financial

The Investment Corporation established credit facilities with financial

institutions. (Note)institutions. (Note)

Total credit facility

5,000,000

Total credit facility

5,000,000

Drawn credit facility

5,000,000

Drawn credit facility

3,500,000

Balance of Undrawn credit facility－

Balance of Undrawn credit facility

－

Note:

Note:

The commitment period of the commitment line agreement (total commitment The commitment period of the commitment line agreement (totalline amount ¥2,500,000 thousand) concluded with The Bank of commitment line amount ¥2,500,000 thousand) concluded with The Bank ofTokyo-Mitsubishi UFJ, Ltd. has already expired. Furthermore, the expiration Tokyo-Mitsubishi UFJ, Ltd. has already expired. Furthermore, the expiration
date of the commitment line agreement is March 31, 2011, set in the date of the commitment line agreement is March 31, 2011, set in thememorandum of understanding executed on September 26, 2008. However, memorandum of understanding executed on September 26, 2008. However,since the commitment period has already expired, the Investment Corporation since the commitment period has already expired, the Investment Corporation
may not undertake new borrowings.

may not undertake new borrowings.

The commitment period and the expiration date of the commitment line Since the commitment period and the expiration date of the commitment line
agreement (total commitment line amount ¥2,500,000 thousand) concluded agreement (total commitment line amount ¥2,500,000 thousand) concluded
with Citibank Japan, Ltd has already expired. Furthermore, the agreement has with Citibank Japan, Ltd has already expired, the Investment Corporation
not been renewed.

may not undertake new borrowings.

*3. Assets pledged as collateral and secured loans payable*3. Assets pledged as collateral and secured loans payable

Assets pledged as collateral

Assets pledged as collateral

Cash and deposits

390,000

Cash and deposits

390,000

Cash and deposits in trust

4,431,045

Cash and deposits in trust

4,425,093

Buildings

7,387,644

Buildings

7,239,662

Structures

2,412

Structures

2,152

Machinery and equipment

14,201

Machinery and equipment

17,402Tools, furniture and fixtures

6,939

Tools, furniture and fixtures

6,191

Land

12,547,562

Land

12,547,562

Buildings in trust

42,420,405

Buildings in trust

41,810,670

Structures in trust

103,259

Structures in trust

98,360Machinery and equipment in trust

534,194

Machinery and equipment in trust

538,468

Tools, furniture and fixtures in trust

131,686

Tools, furniture and fixtures in trust

Land in trust
Right of using water facilities in trust
Total

93,412,175
1,382
161,382,910

Secured loans payable

Land in trust
Right of using water facilities in trust
Total

119,609
93,412,175
1,264
160,608,612

Secured loans payable

Short-term loans payable

10,000,000

Short-term loans payable

10,000,000

Current portion of long-term loans payable

9,000,000

Current portion of long-term loans payable

14,500,000

Long-term loans payable

67,750,000

Long-term loans payable

60,720,000

Total

86,750,000

Total

85,220,000-29-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Statements of Income】(Thousands of Yen)

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)*1. Breakdown of real estate rental business profit and loss

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

A. Rental and other operating revenues

A. Rental and other operating revenues

Rental revenues

Rental revenues

Leasing income

5,985,835

Leasing income

5,711,052

Common area charges

1,246,786

Common area charges

1,195,071

Total

7,232,621

Total

6,906,124

OthersOthersParking space rental revenues

241,961

Parking space rental revenues

231,982

Utility charge reimbursement559,130

Utility charge reimbursement

617,328

Miscellaneous

170,408

Miscellaneous

166,426

Subtotal

971,500

Subtotal

1,015,736

Total rental and operating revenues

8,204,121

Total rental and operating revenues

7,921,861

B. Rental and other operating expenses

B. Rental and other operating expenses

Rental expenses

Rental expenses

Property management fees and facility management fees

799,004

Property management fees and facility management fees

764,051

Utilities

578,388

Utilities

529,105

Taxes

494,866

Taxes

536,723

Repairs and maintenance costs

138,370

Repairs and maintenance costs

171,074

Insurance

16,532

Insurance

16,098Trust fees

45,274

Trust fees

38,191Others101,440

Others121,632

Depreciation

1,429,328

Depreciation

1,451,832

Total property-related expenses

3,603,207

Loss on retirement of fixed assets

23,394

C. Rental business profit (A – B)

4,600,914

Total property-related expenses

3,652,104

C. Rental business profit (A – B)

4,269,756*2. Loss on sale of real estate*2. Loss on sale of real estate

KDX Koishikawa Building

Apartments Motoazabu

Revenue from sale of the investment property

670,000

Revenue from sale of the investment property

1,052,000

Costs of the investment property

678,062

Costs of the investment property

1,204,474

Other sales’ expenses

16,368Other sales’ expenses

58,253

Loss on sale of real estate

24,431

Loss on sale of real estate

210,727

KDX Hakata Building

Apartments Wakamatsu-Kawada

Revenue from sale of the investment property

2,000,000

Revenue from sale of the investment property

930,000

Costs of the investment property

2,430,829

Costs of the investment property

1,144,131

Other sales’ expenses

37,202Other sales’ expenses

15,912

Loss on sale of real estate

468,031

Loss on sale of real estate

230,043【Notes to the Statements of Changes in Unitholders’ Equity】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)

・Total number of authorized investment units

2,000,000 units

2,000,000 units

・Total number of investment units issued and outstanding

200,000 units

200,000 units

Total number of authorized investment units and total number ofinvestment units issued and outstanding-30-

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

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)*Reconciliation of balance sheet items to cash and cash equivalents at end of*Reconciliation of balance sheet items to cash and cash equivalents at end of

period in the cash flows statements.

period in the cash flows statements.

(As of April 30, 2009)(Thousands of Yen)

(As of October 31, 2009)(Thousands of Yen)

Cash and bank deposits

9,981,142

Cash and bank deposits

7,256,449

Cash and deposits in trust

5,626,942

Cash and deposits in trust

5,613,980

Restricted bank deposits held in trust (Note 1)△506,590

Restricted bank deposits held in trust (Note 1)△522,474

More than 3 months fixed deposits (Note 2)△1,390,000

More than 3 months fixed deposits (Note 2)△1,390,000

Cash and cash equivalents

13,711,494

Cash and cash equivalents

10,957,955

Note 1: Restricted bank deposits held in trust are retained for repayment ofNote 1: Restricted bank deposits held in trust are retained for repayment of
tenant leasehold and security deposits held in trust.

tenant leasehold and security deposits held in trust.
Note 2: More than 3 months fixed deposits are fixed deposit which has deposit

Note 2: More than 3 months fixed deposits are fixed deposit which has deposit
term of more than 3 months.

term of more than 3 months.
【Notes to the Lease Transactions】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)
Operating lease transactions

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)(Thousands of Yen)

Operating lease transactions(Lessor)(Lessor)

Unearned lease payments

Unearned lease payments(Thousands of Yen)

Due within one year

1,314,069

Due within one year

1,059,032

Due after one year

7,930,499

Due after one year

7,538,785

Total

9,244,568

Total

8,597,817【Notes to the Marketable Securities】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)

The Investment Corporation has not undertaken transactions in marketable

Same applies as left.

securities. Accordingly, there is no information to report.

-31-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Derivative Transactions】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)(1) Details of the transaction(1) Details of the transaction

The Investment Corporation entering into interest-rate swap transactions uses

Same applies as left.

derivatives as hedging instruments(2) Transaction policies(2) Transaction policies

Derivatives are used by the Investment Corporation to manage its exposure toSame applies as left.

the risk of future interest rate fluctuation. Derivative transactions are not used
for speculative purposes.
(3) Purpose of the transaction(3) Purpose of the transaction

In interest-related transactions, derivative transaction is used to maintain

Same applies as left.

earnings stability by managing exposure to the risk of interest rate hikes in theinterest rate market on borrowings. Hedge accounting is applied to the use ofderivative transactions.
① Hedge accounting method① Hedge accounting method

The deferred hedge method is applied. However, the special treatment isSame applies as left.

applied for the interest-rate swap agreements that meet the criteria.
② Hedging instruments and risks hedged② Hedging instruments and risks hedged・Hedge instruments

Same applies as left.

The Investment Corporation enters into interest-rate swap transactions.
・Risks hedged
Interest rates on debt
③ Hedging policy③ Hedging policy

The Investment Corporation enters into derivative transactions based on its risk

Same applies as left.

management policies with the objective of hedging risks in accordance with its
Articles of Incorporation.
④ Method of evaluating the effectiveness of hedging④ Method of evaluating the effectiveness of hedging

During the period from the commencement of hedging to the point at which

Same applies as left.

effectiveness is assessed, the Investment Corporation compares the cumulative
total of market changes in the targeted objects of hedging or cash flow changes
with the cumulative total of market changes in the hedging instruments or cash
flow changes. The Investment Corporation then makes a decision based on thechanges and other factors of the two.
However, the interest-rate swap agreements that meet the criteria for special
treatment, the evaluation of effectiveness are omitted.
(4) Risks related to derivative transaction(4) Risks related to derivative transaction

Interest-rate swap transactions are subject to risks stemming from fluctuations

Same applies as left.

in the interest rate market.
(5) Risks management system for derivative transaction(5) Risks management system for derivative transaction

Risks management is based on the management procedures of the AssetSame applies as left.

Management Company.

-32-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Retirement Payment】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)

The Investment Corporation does not maintain a retirement payment system.

Same applies as left.

Accordingly, there is no information to report.
【Tax-Effect Accounting】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)
1.Principal deferred tax assets and liabilities

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)(Thousands of Yen)

(Deferred tax assets)

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

(Deferred tax assets)

Enterprise tax payable not included in expenses

17Enterprise tax payable not included in expenses

31

Bad debts loss

22

Bad debts loss

246

Unrealized loss from deferred hedge transactions

5,724

Unrealized loss from deferred hedge transactions
Total deferred tax assets

6,554
6,594

Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets

6,002
△40
5,962

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

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

rate

(%)

tax rate(%)

Statutory tax rate

39.33

Statutory tax rate

39.33

(Adjustments)(Adjustments)

Deductible cash distributions△39.31

Deductible cash distributions△39.31Others0.02

Others0.03

Effective tax rate

0.04

Effective tax rate

0.05

【Equity-Method Income and Retained Earnings】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)

The Investment Corporation has no affiliated companies accounted for under theequity-method. Accordingly, there is no information to report.

-33-

Same applies as left.

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Related-Party Transactions】
Eighth Fiscal Period (November 1, 2008 to April 30, 2009)
1．Parent Company, corporate shareholders and other:

None

2．Directors, individual shareholders and other
Ratio of Possession of
Attributes

NameBusiness Activities / Position

Voting Rights

Details of Business(%)
Executive Director for the
Board of Directors

TaisukeInvestment Corporation and CEO

Possession of Right

and Close Relatives

Miyajima

and President of Kenedix REIT

Direct 0.0％

Management, Inc.

As above

As above

As above

Accounts

to Kenedix REIT Management,(Note 2)

PayableInc. (Note 1)(Note 4)-otherfee to Kenedix REIT

Payment of property management
As above

As above

As aboveTerm

448,160

Management, Inc. (Note 3)

As above(¥Thousands)

Payment of asset management fee

Payment of business consignment
As above

Deal Amount Accounting

6,500

－

Balance of
Period End(¥Thousands)

82,622(Note 4)－(Note4)
323,675

fee to Kenedix REIT

Accounts

75,069

PayableManagement, Inc. (Note 5)
Notes:
1. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of the Investment Corporation.
2. Asset management fee include ¥13,350 thousand sales fee related to the sale of property.
3. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Operating Agency Agreement” between
the Investment Corporation and Kenedix REIT Management, Inc.
4. Consumption taxes are not included in a deal amount, and are included in the balance of the end of period.
5. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Property Management Agreement”
between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥29,712 thousand related to the acquisition of property that count in bookvalue for individual real estate.

3．Subsidiary companies and other:

None

4．Fellow subsidiary companies and other: None
Ninth Fiscal Period (May 1, 2009 to October 31, 2009)
1．Parent Company, corporate shareholders and other:

None

2．Directors, individual shareholders and other
Ratio of Possession of
Attributes

NameBusiness Activities / Position

Voting Rights

Details of Business(%)
Executive Director for the
Board of Directors

TaisukeInvestment Corporation and CEO

Possession of Right

and Close Relatives

Miyajima

and President of Kenedix REIT

Direct 0.0％

Management, Inc.

As above

As above

As above

Accounts

to Kenedix REIT Management,(Note 2)

PayableInc. (Note 1)(Note 4)-otherfee to Kenedix REIT

Payment of property management
As above

As above

As aboveTerm

450,842Management, Inc. (Note 3)

As above(¥Thousands)

Payment of asset management fee

Payment of business consignment
As above

Deal Amount Accounting

fee to Kenedix REIT

1,500

－

Balance of
Period End(¥Thousands)

68,318(Note 4)－(Note4)
298,666

Accounts

56,225

PayableManagement, Inc. (Note 5)
Notes:
1. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of the Investment Corporation.
2. Asset management fee include ¥9,910 thousand sales fee related to the sale of property and ¥17,750 thousand management fee related to the acquisition of property that count in bookvalue for individual real estate.
3. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Operating Agency Agreement” between
the Investment Corporation and Kenedix REIT Management, Inc.

-34-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
4. Consumption taxes are not included in a deal amount, and are included in the balance of the end of period.
5. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Property Management Agreement”
between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥14,676 thousand related to the acquisition of property that count in bookvalue for individual real estate.

3．Subsidiary companies and other:

None

4．Fellow subsidiary companies and other: None

【Notes to the Information per Unit】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)

Unitholders’ Equity per Unit

¥636,990

Unitholders’ Equity per Unit

¥635,335

Net Income per Unit

¥ 12,171

Net Income per Unit

¥ 10,510

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

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

were no residual investment units.

there were no residual investment units.

Note: The calculation for the net income per unit is as follow.
Eighth Fiscal Period(November 1, 2008 to April 30, 2009)
Net Income (¥ thousand)Ninth Fiscal Period(May 1, 2009 to October 31, 2009)

2,434,359

2,102,190－－

Net income for ordinary units (¥ thousand)

2,434,359

2,102,190

Average number of units during the period (unit)

200,000

200,000

Amount vested in ordinary investors (¥ thousand）【Important Subsequent Events】

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)
None

Ninth Fiscal Period(May 1, 2009 to October 31, 2009)
Primary Offering of the Issue of New Investment Units
On October 29, 2009 and November 9, 2009, the Board of
Directors of the Investment Corporation resolved to issue newinvestment units as detailed below. The payments were completed on
November 16, 2009 through public offering. As a result of theissuance of additional investment units, the Investment Corporation
had total unitholders’ capital of ¥133,129,755,470 with 233,550
investment units outstanding as of November 16, 2009.
① Issuance of New Investment Units through Public Offering
Total Number of Units Issued：
33,550units
Issue Price (Offer Price)：¥252,200 per unit
Total Amount of the Issue Price (Offer Price)： ¥8,461,310,000
Paid-in Value (Issue Value)：¥243,100 per unit
Gross Proceeds：¥8,156,005,000
Payment date：November 16, 2009
Starting date of the computation of cash distribution：
November 1, 2009
② Use of Funds
The Investment Corporation has applied the net proceeds from thepublic offering of new investment units to acquire the properties.

-35-

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

Particulars

May 6, 2005
July 20, 2005
August 16, 2005
May 1, 2006
May 26, 2006
May 22, 2007
June 19, 2007

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

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)400
75,0003,970
73,6603,970
40,9002,100Unitholders’ Capital(Millions of Yen)
Increase
Balance(Decrease)400
75,40079,370153,030
157,000
197,900
200,000

200
41,8682,216
42,171
2,272
34,4741,770

200
42,06844,28586,45688,729123,203
124,973

Remarks(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

Notes:
1.

The Investment Corporation was established with an offer price of ¥500,000 per unit.

2.

The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥580,000 per unit with an underwritten price of ¥558,250 per unit.

3.

The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥558,250 per unit.

4.

The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥593,096 per unit with an issue price of ¥572,519 per unit.

5.

The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥572,519 per unit.

6.

The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties and repayment of borrowings. The offer price was ¥873,180 per unit with an issue price of ¥842,886 per unit.

7.

The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties and repayment of borrowings. The issue price was ¥842,886 per unit.

4. Transfer of the Directors
During the ninth fiscal period, there was no transfer for the Directors.

-36-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Reference Information（1）Component of Assets
Eighth Fiscal Period(As of April 30, 2009)

Type of

Type

Specified Asset

Real Estate

Area

Office Buildings

Total Amount Held

Ratio

Total Amount Held

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

Tokyo Metropolitan Area

30,89712.9

30,741

13.0

Other Regional Areas

9,082

3.8

12,711

5.4

39,97916.7

43,452

18.4

Tokyo Metropolitan Area

137,45657.6

136,915

57.9

Other Regional Areas

19,4988.2

19,3078.2

156,955

65.7

156,223

66.1

Tokyo Metropolitan Area

10,750

4.5

8,317

3.5

Other Regional Areas

1,876

0.8

1,899

0.8

12,627

5.3

10,216

4.3

Total for Real Estate
Office Buildings
Trust BeneficiaryInterest in Real
EstateTotal for Office Buildings
Residential Properties
Total for Residential Properties
Central Urban Retail Properties

Ninth Fiscal Period(As of October 31, 2009)

12,620

5.3

12,557

5.3

Total of Trust Beneficiary Interests in Real EstateTokyo Metropolitan Area

182,20276.3

178,996

75.7

Bank Deposits and Other Assets

16,562

6.9

13,8705.9

Total Assets

238,745100.0

236,320100.0

Notes:
1. “Total Amount Held” is the amount allocated in the balance sheets at the end of the period (figures are on a net book value basis after deducting depreciation), and isrounded down to the nearest million yen.
2. “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.

Eighth Fiscal Period(As of April 30, 2009)
Price (Millions of Yen)
Ratio (%)
Total of Liabilities
Total Unitholders’ Equity
Total of Assets

Ninth Fiscal Period(As of October 31, 2009)
Price (Millions of Yen)
Ratio (%)

111,34646.6

109,25346.2

127,39853.4

127,06753.8

238,745100.0

236,320

100.0

-37-

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

Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

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

Direct Capitalization
Method(Note 3)
Value

Discounted Cash Flow Method

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
（Note5）A-60

KDX Harumi Building

10,25010,075

10,60010,7004.8

10,500

4.6

5.0

A

4.6

A-40

Toranomon Toyo Building

9,850

9,891

9,910

10,000

4.8

9,820

4.5

5.0

A

4.4

A-46

Hiei Kudan-Kita Building

7,600

7,636

7,900

8,070

4.8

7,830

4.6

5.0

B

3.4

A-37

KDX Ochanomizu Building

6,400

6,711

6,760

6,840

4.9

6,670

4.7

5.1

A

2.9

A-32

KDX Shiba-Daimon Building

6,090

6,312

5,030

5,100

5.4

5,010

5.2

5.5

C

2.7

A-13

KDX Kojimachi Building

5,950

5,773

4,420

4,420

5.0

4,420

4.8

5.1

C

2.7

A-1

KDX Nihonbashi 313 Building

5,940

6,231

7,400

7,510

4.9

7,350

4.7

5.1

B

2.6

A-16

Toshin-24 Building

5,300

5,203

4,970

5,020

5.7

4,910

5.5

5.9

A

2.4

A-2

KDX Hirakawacho Building

5,180

5,198

5,250

5,380

4.8

5,190

4.6

5.0

B

2.3

A-47

KDX Shin-Yokohama 381 Building

4,700

4,868

3,050

3,060

5.9

3,030

5.6

6.1

A

2.1

A-17

Ebisu East 438 Building

4,640

4,543

4,280

4,310

5.2

4,250

4.9

5.4

A

2.1

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,466

5,560

5,620

5.1

5,490

4.9

5.3

A

2.0

A-39

KDX Toranomon Building

4,400

4,855

3,620

3,650

4.6

3,580

4.4

4.8

A

1.9

A-30

KDX Nishi-Gotanda Building

4,200

4,178

3,710

3,670

5.4

3,720

5.2

5.5

C

1.9

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,900

3,320

3,320

6.3

3,320

5.9

6.5

A

1.7

A-4

KDX Hatchobori Building

3,680

3,458

3,440

3,500

5.1

3,420

4.9

5.3

B

1.6

A-18

KDX Omori Building

3,500

3,452

3,900

3,930

5.4

3,860

5.2

5.6

A

1.5

A-19

KDX Hamamatsucho Building

3,460

3,344

3,510

3,610

4.8

3,470

4.6

5.0

B

1.5

A-45

KDX Roppongi 228 Building

3,300

3,452

2,240

2,280

4.9

2,200

4.7

5.1

A

1.4

A-29

KDX Higashi-Shinjuku Building

2,950

3,199

3,240

3,320

5.3

3,200

5.1

5.5

B

1.3

A-20

KDX Kayabacho Building

2,780

2,877

2,870

2,840

5.4

2,880

5.2

5.5

C

1.2

A-56

KDX Jimbocho Building

2,760

2,947

2,450

2,460

5.4

2,430

5.2

5.7

A

1.2

A-49

Nissou Dai-17 Building

2,710

2,690

1,720

1,730

5.8

1,700

5.6

6.0

A

1.2

A-21

KDX Shinbashi Building

2,690

2,672

2,790

2,810

4.7

2,770

4.3

4.9

A

1.2

A-5

KDX Nakano Sakaue Building

2,533

2,488

2,400

2,410

5.5

2,400

5.3

5.7

B

1.1

A-22

KDX Shin-Yokohama Building

2,520

2,470

2,550

2,560

5.9

2,530

5.7

6.1

A

1.1

A-6

Harajuku F.F. Building

2,450

2,476

2,920

2,940

5.7

2,890

5.5

5.9

A

1.1

A-50

Ikejiri-Oohashi Building

2,400

2,492

1,700

1,710

6.2

1,690

6.0

6.4

A

1.0

A-27

KDX Kajicho Building

2,350

2,435

2,300

2,330

5.2

2,290

5.0

5.4

B

1.0

A-51

KDX Hamacho Nakanohashi Building

2,310

2,388

1,950

1,970

5.6

1,930

5.4

5.8

A

1.0

A-15

KDX Hamacho Building

2,300

2,276

2,220

2,240

5.5

2,220

5.3

5.6

C

1.0

A-41

KDX Shinjuku 286 Building

2,300

2,356

2,050

2,070

5.3

2,020

5.1

5.5

A

1.0

A-7

FIK Minami Aoyama

2,270

2,272

2,780

2,810

5.0

2,750

4.8

5.2

A

1.0

A-14

KDX Funabashi Building

2,252

2,453

1,890

1,900

6.2

1,890

6.0

6.4

C

1.0

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,269

2,010

2,060

4.7

1,990

4.5

4.9

Ｂ

0.9

A-55

Shin-toshin Maruzen Building

2,110

2,174

1,680

1,690

5.5

1,670

5.1

5.7

A

0.9

A-33

KDX Okachimachi Building

2,000

2,140

1,830

1,880

5.2

1,810

5.1

5.4

B

0.9

A-57

KDX Gobancho Building

1,951

2,017

1,510

1,520

5.2

1,490

5.0

5.4

A

0.8

A-8

Kanda Kihara Building

1,950

1,863

1,870

1,900

5.1

1,850

4.9

5.3

B

0.8

A-23

KDX Yotsuya Building

1,950

1,963

2,370

2,390

5.6

2,350

5.4

5.8

A

0.8

-38-

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

Type

Area

Tokyo
Metropolitan
Area

Property Name

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
（Note5）A-59

KDX Iwamoto-cho Building

1,864

1,860

1,470

1,480

5.7

1,460

5.5

5.9

A

0.8

A-9

KDX Shinjuku-Gyoen Building

1,610

1,581

2,030

2,050

5.2

2,010

5.0

5.4

A

0.7

A-26

KDX Kiba Building

1,580

1,623

1,450

1,440

5.7

1,450

5.5

5.8

C

0.7

A-38

KDX Nishi-Shinjuku Building

1,500

1,550

1,330

1,330

5.3

1,330

5.1

5.4

C

0.6

A-31

KDX Monzen-Nakacho Building

1,400

1,443

1,280

1,290

5.6

1,270

5.4

5.8

B

0.6

A-52

KDX Kanda Misaki-cho Building

1,380

1,392

1,040

1,050

5.5

1,020

5.3

5.7

A

0.6

A-34

KDX Hon-Atsugi Building

1,305

1,266

1,090

1,070

6.3

1,100

6.1

6.5

B

0.5

A-35

KDX Hachioji Building

1,155

1,321

821

836

5.9

814

5.7

6.1

B

0.5

KDX Nogizaka Building

1,065

1,133

872

882

5.2

869

5.0

5.3

C

0.4

A-58

KDX Nagoya Sakae Building

7,550

7,822

5,100

5,330

5.2

5,000

5.0

5.4

B

3.4

A-12

Portus Center Building

5,570

4,941

4,860

4,920

6.4

4,840

6.2

6.6

B

2.5

A-42

Karasuma Building

5,400

5,499

5,400

5,510

5.6

5,350

5.4

5.8

B

2.4

A-53

KDX Hakata-Minami Building

4,900

4,888

4,180

4,200

6.5

4,150

6.3

6.7

A

2.2

A-54

KDX Kitahama Building

2,220

2,219

1,740

1,740

6.0

1,730

5.6

6.2

A

1.0

A-44

KDX Sendai Building

2,100

2,216

1,510

1,460

6.1

1,530

5.9

6.3

B

0.9

A-24

KDX Minami Semba Dai-1 Building

1,610

1,518

1,110

1,150

5.6

1,100

5.4

5.8

C

0.7

A-25

KDX Minami Semba Dai-2 Building

1,560

1,424

1,140

1,210

5.6

1,120

5.4

5.8

C

0.7

A-36

KDX Niigata Building

1,305

1,486

824

836

7.3

812

7.1

7.5

A

0.5

Subtotal of Office Buildings (58 properties)

197,461

199,675

-

89.6

Other
Regional
Areas

183,217 185,314

181,745

-

-

-

B-19

Residence Charmante Tsukishima

5,353

5,201

4,420

4,480

5.5

4,410

5.3

5.7

C

2.4

B-3

Court Mejiro

1,250

1,216

962

970

5.6

954

5.4

5.8

A

0.5

B-34

Gradito Kawaguchi

1,038

1,044

951

969

5.8

947

5.5

6.1

C

0.4

B-25

Court Shin-Okachimachi

878

855

776

790

5.6

770

5.4

5.8

B

0.3

B-18

Venus Hibarigaoka

1,800

1,899

1,370

1,370

6.7

1,370

6.3

6.9

C

0.8

10,31910,216

8,479

8,579

-

4.6

C-1 Frame Jinnan-zaka

9,900

10,017

10,30010,300

4.7

10,200

4.4

4.8

A

4.4

C-2 KDX Yoyogi Building

2,479

2,539

1,940

1,970

5.1

1,930

4.9

5.2

C

1.1

Subtotal of Central Urban Retail Properties (2 properties)

12,37912,557

12,24012,270-12,130

-

-

-

5.6

Total of 65 properties

220,159

222,449

203,936 206,163-

202,326

-

-

-

100.0

Tokyo
Metropolitan
Area

Other
Regional
Areas

Subtotal of Residential Properties (5 properties)
CentralUrban
RetailProperties

Acquisition
Price（Note 1）

A-28

OfficeBuildings

Residential
Properties

No.

Tokyo
Metropolitan
Area

-

8,451

-

-

Notes:
1. Acquisition price is the purchase price for trust beneficiary interests or properties acquired by the Investment Corporation (excluding acquisition costs,
property tax, city-planning tax, and consumption tax, etc., rounded down to the nearest million yen.).
2. Figures of less than1 million are rounded down from the amounts on the balance sheet.
3. Appraisal values (end of the ninth fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation’s Articles ofIncorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports prepared by theJapan Real Estate Institute, Daiwa Real Estate Appraisal Corporation, and Nippon Tochi-Tatemono Limited.
4. The appraisers for the properties are Japan Real Estate Institute (A), Daiwa Real Estate Appraisal Corporation (B) and Nippon Tochi-Tatemono Limited (C).
5. Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest first decimal place.
The figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices of properties corresponding to each
subtotal and total column by the total acquisition price of the entire assets (65 properties).

-39-

KENEDIX REALTY INVESTMENT CORPORATION (8972)② Property Distribution
Property TypesType

Number of Properties

Acquisition Price (Millions of Yen)

Ratio (Note) (%)

58
5
2

197,461
10,31912,379

89.6
4.6
5.6

Total

65

220,159

100.0

Geographic Distribution
Area

Number of Properties

Acquisition Price （Millions of Yen）

Ratio (Note) (%)

55
10

186,144
34,015

84.5
15.4

65

220,159

100.0

Number of Properties

Acquisition Price （Millions of Yen）

Ratio (Note) (%)

1
32
18
9
4
1

878
59,01563,93351,18334,900
10,250

0.3
26.8
29.0
23.2
15.8
4.6

65

220,159

100.0

Office Buildings
Residential Properties
Central Urban Retail Properties

Tokyo Metropolitan Area
Other Regional Areas
Total
Property Distribution by Acquisition Price
Acquisition Price (Millions of Yen)
Less than 1,000
1,000 - 2,500
2,500 - 5,000
5,000 - 7,500
7,500 - 10,000
10,000 – 12,500
Total

Note: “Ratio” refers to the percentage of the acquisition price by each category to the acquisition prices of the entire portfolio. Figures are rounded down
to the nearest first decimal place.

-40-

KENEDIX REALTY INVESTMENT CORPORATION (8972)③ Details of Investment Real Estate and Trust Real Estate
A. Overview of Investment Real Estate Properties and Trust Real Estate
Type

Area

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

PML（㎡）(Note1)(Note 2)（㎡）(Note 3)(Note 4)(Note 5)(%)

Offices,A-60

KDX Harumi Building

2,230.69

S・SRC
12,694.32

Retail Shops
Bank, Offices
A-40

Toranomon Toyo Building

869.01

1,844.83

1,515.28

March 1988

3.14

August1982

2.97

July 1986

7.60

May 1994

3.60

April 1974

9.50

September 1984

8.75

March 1988

7.25

March 1988

11.64

January 1992

4.16

January 1987

7.01

April 1988

8.07

November 1992

8.28

February 1985

8.34

June 1993

6.42

October 1990

0.71

September 1999

6.13

April 1989

8.95

January 1990

3.63

October 1987

7.90

May 1994

7.25

B1F11

Offices, Storage, Retail Shops
KDX Ochanomizu Building

13.06

SRC･S
11,425.31

Parking, Storage, Offices

A-37

August 1962
B2F9

Retail Shops, Office Room
Hiei Kudan-Kita Building

5.60

RC
8,346.83

Retail Shops, Storage
A-46

February 2008
B1F11

SRC
7,720.08

Parking, Mechanical Room

B1F7
SRC

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03
B1F9

OfficesA-13

KDX Kojimachi Building

612.17SRC
5,323.81

Retail Shops

B2F9
SRC

A-1

KDX Nihonbashi 313 Building

1,047.72

Offices

8,613.09
B2F9

Offices, Retail Shops
A-16

Toshin-24 Building

1,287.16

SRC
8,483.17

Parking

B1F8

Offices, Retail Shops
A-2

KDX Hirakawacho Building

1,013.85

SRC
8,002.97

Residential Complex
1,229.24
A-47

Tokyo

Offices, Retail Shops,

KDX Shin-Yokohama 381 Building

SRC･RC
10,290.30(Note 6)

Office

B3F10

Garbage Room, Parking

B1F10

Offices
A-17

Ebisu East 438 Building

724.22SRC
4,394.58

Retail Shops

Metropolitan

B1F7

Buildings
Area

SRC
A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48
B1F9

Retail Shops
A-39

KDX Toranomon Building

288.20SRC
2,277.38

Offices

B1F9
SRC

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87
B1F8

A-48

SRC

KDX Kawasaki-Ekimae Hon-cho
Building

1,968.13

KDX Hatchobori Building

992.20

Offices

7,420.87
B1F9
SRC・RC

A-4

Offices

4,800.43
B1F8

Offices, Retail Shops
A-18

KDX Omori Building

1,123.93

RC・SRC
7,334.77

Parking

B1F9

Offices, Retail Shops
A-19

KDX Hamamatsucho Building

504.26

S3,592.38

Parking

F9
SRC

A-45

KDX Roppongi 228 Building

408.86

Offices, Retail Shops

2,235.30
B1F9

Offices, Storage
A-29

KDX Higashi-Shinjuku Building

1,340.97

SRC
7,885.40

Parking

B1F9
SRC

A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86
F8
SRC

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
B1F8

-41-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

PML（㎡）(Note1)(Note 2)（㎡）(Note 3)(Note 4)(Note 5)

(%)

SRC
A-49

Nissou Dai-17 Building

629.00

Offices, Parking

4,016.61

July 1991

13.23

February 1992

6.84

August 1992

5.20

September 1990

10.36

November 1985

5.66

September 1988

3.02

March 1990

6.05

September 1988

6.17

September 1993

6.76

August 1989

8.71

November 1988

4.92

April 1989

2.76

April 1992

2.01

July 1990

4.87

June 1988

2.23

August 2000

9.06

May 1993

7.77

October 1989

9.79

March 2008

7.15

June 1992

6.05

October 1992

7.79

October 1992

9.02

September 1986

5.72

B1F8
Offices, Retail Shops
A-21

KDX Shinbashi Building

536.11

SRC・S
3,960.22

Parking

B1F8

Offices, Retail ShopSRC
A-5

KDX Nakano Sakaue Building

1,235.16

Residential, Parking

6,399.42
B1F11

Storage
Offices, Retail Shops
A-22

KDX Shin-Yokohama Building

705.00S
6,180.51

Parking

B1F9

Retail Shops
A-6

Harajuku F.F. Building

699.67SRC
3,812.44

Offices, Parking

F11
RC

A-50

Ikejiri-Oohashi Building

834.79

Offices

3,482.96
B2F9
SRC

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
B1F8
SRC

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41
F9

Retail Shops, Offices
A-15

KDX Hamacho Building

554.80SRC
4,133.47

Parking

B2F10
SRC・RCA-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04
B1F9

Offices, Retail Shops
A-7

FIK Minami Aoyama

369.47SRC
1,926.98

Tokyo

Residential

B1F9

OfficeMetropolitan
Buildings

Offices
A-14

KDX Funabashi Building

1,180.41

SRC
5,970.12

Area

Retail Shops

B1F8
S・SRC

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90
B1F8
SRC

A-55

Shin-toshin Maruzen Building

457.64

Offices, Retail Shops Parking

3,439.37
B1F8
S

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00
F10
S

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11
F8
SRC・RC・S

A-8

Kanda Kihara Building

410.18

Offices

2,393.94
B1F8

Offices, Retail Shops
A-23

KDX Yotsuya Building

996.65RC
3,329.68

Parking

B2F4

OfficesA-59

KDX Iwamoto-cho Building

266.86

S
1,618.65

Residential Complex

F9

Offices, Retail Shops
A-9

KDX Shinjuku-Gyoen Building

383.63

S・SRC
2,594.88

Residential

F9
RC

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64
F5
RC

A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63
F5

Offices
A-31

KDX Monzen-Nakacho Building

580.99SRC
2,668.91

Retail Shops

-42-

F8

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

PML（㎡）(Note1)(Note 2)（㎡）(Note 3)(Note 4)(Note 5)

(%)

SRC
A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60

October 1992

9.41

May 1995

11.12

December 1985

13.00

May 1991

9.48

April 20092.87

September 1993

3.48

October 1982

8.37

June 1973

1.48

July 1994

9.79

February 1984

1.93

March 1993

9.04

September 1993

10.59

July 1983

4.39

Average of 20.3 yrs-

January 2004

9.88

March 1997

7.11

February 2006

6.46

October 2005

4.09

March 1989

5.20

Average of 8.8 yrs-

March 2005

8.02

August 1991

8.17
-

B1F7
Offices
Tokyo

A-34

KDX Hon-Atsugi Building

724.62SRC
3,603.63

Retail Shops

F8

Metropolitan
Area

Offices, Parking
A-35

KDX Hachioji Building

460.62SRC
2,821.21

Retail Shops

F9

Offices, Retail Shops
A-28

KDX Nogizaka Building

409.36RC
1,695.07

Residential

B1F5
S

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retails Shops

9,594.00
F11

Offices, Retail Shops,
A-12

Portus Center Building

13,936.63

SRC・S
79,827.08

Storage, Parking

B2F25

OfficeSRC
A-42

Karasuma Building

1,788.67

Offices

12,632.68

Buildings

B1F8
SRC
A-53

KDX Hakata-Minami Building

1,826.25

Offices, Retail Shops, Parking

13,238.16
B1F9

Other
S
Regional

A-54

KDX Kitahama Building

751.92

Offices, Storage, Parking

4,652.96
F10

Areas
SRC
A-44

KDX Sendai Building

987.78

Offices

5,918.30
B1F10
SRC・RC・S

A-24

KDX Minami Semba Dai-1 Building

715.44

Offices, Parking

4,236.59
B1F9

Parking, Retail Shops
A-25

KDX Minami Semba Dai-2 Building

606.45SRC・S3,315.93

Offices, Residential

B1F9

OfficesA-36

KDX Niigata Building

1,110.56

RC
6,810.29

Retail Shops
Subtotal of Office Buildings (58 properties)

-

-

B2F13
-

Residential Complex
B-19

Residence Charmante Tsukishima

4,252.86

SRC

18,115.39
Offices

B1F10
RC

Tokyo

B-3

Court Mejiro

1,581.91

Residential Complex

3,326.07
B1F3

Residential
Metropolitan
Properties

Residential Complex
Area

B-34

Gradito Kawaguchi

423.94RC
1,705.38

Retail Shops

F12
RC

B-25

Court Shin-Okachimachi

311.22

Residential Complex

1,494.55
F11①RC F6

Other
Residential
Regional

B-18

Venus Hibarigaoka

8,595.00

Residential Complex

14,976.25

Properties②RC F5③RC F6

Areas
Subtotal of Residential Properties (5 properties)

-

-

-

S・RC・SRC

CentralTokyo

C-1

Frame Jinnan-zaka

1,240.51

Retail Shops

6,302.58
B2F7

Urban
Metropolitan
RetailRetail Shops
Area

C-2

KDX Yoyogi Building

228.74SRC
1,269.06

Properties

Offices

F8

Subtotal of Central Urban Retail Properties (2 properties)

-

-

-

-

Average of 7.3 yrs

Total of 65 properties

-

-

-

-

Average of 19.1 yrs

5.24(Note 7)-43-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Notes:
1. Site area data is based on figures recorded in the land register (including relevant figures for leasehold land, if any). Data may not match with the actual current
status. In the case of buildings with compartmentalized ownership, the figure indicates the site area of the entire land subject to site rights.
2. Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of areas covered by the relevant
ownership is shown.
3. Total floor space is based on figures recorded in the land register and does not include related structures. The total floor area for the entire buildings is reported
for compartmentalized ownership.
4. Type of structure data is based on data recorded in the land register. For buildings with compartmentalized ownership, the structure and the number of floors of
the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating to structure and thenumber of floors:
SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level.
For example: B2F9: Two floors below ground level and nine floors above ground level.
5. Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data is calculated using theweighted-average based on acquisition prices as of October 31, 2009, and is rounded down to the nearest first decimal place.
6. The figure is the area of the entire site on which there is a single building combined with the KDX Shin-Yokohama 381 Building Annex Tower (A-65) that
was acquired on November 18, 2009.
7. Probable Maximum Loss (PML) data is based on a survey provided by Sompo Japan Risk Management, Inc. as of August 2009. The Portfolio PML is thedata based on 65 properties.

-44-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

B. Capital Expenditure(a) Planned capital expenditures
Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the tenth fiscal period (November 1,
2009 to April 30, 2010) are as follows. Planned capital expenditure includes portions classified into expenses for accounting purposes.

Property Name

Purpose(Location)
KDX Ochanomizu Building(Chiyoda-ku, Tokyo)
KDX Kitahama Building(Osaka, Osaka)

Schedule
November 2009

Upgrade of external walls

to April 2010

Air conditioning system construction

As above

Planned Amount of Capital Expenditure(Millions of Yen)
Paid in the Fiscal
Total Amount
Total
Period Under Review
Previously Paid
68

-

-

65

-

-

(b) Capital Expenditures During the Fiscal Period Under Review
The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review, the Investment
Corporation completed work across its entire portfolio totaling ¥571 million. This total comprised of ¥400 million in capital expenditures and¥171 million for repairs, maintenance and renovation expenses.
Property Name

Purpose(Location)
KDX Ochanomizu Building(Chiyoda-ku, Tokyo)
Venus Hibarigaoka(Sapporo, Hokkaido)
KDX Niigata Building(Niigata, Niigata)

Upgrade of air conditioning system, other

Schedule
May 2009
to October 2009

Amount of Capital Expenditures(Millions of Yen)
117

Roof waterproofing construction

As above

44

OA floors construction

As above

17

Others220

Portfolio Total

400

Note: The money amount of the capital expenditures are rounded to the nearest ¥1 million.

-45-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(c) Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
The Investment Corporation formulates long-term repairs, maintenance and renovation plans on an individual investment property basis andallocates a portion of its cash flows generated during the period to a reserve for repairs, maintenance and renovation to meet large-scalerenovation over the medium- to long-terms. The following amount has been transferred to the reserve from period cash flows.
( Millions of Yen)
Fiscal period

Fifth Fiscal

Sixth Fiscal
PeriodPeriodSeventh Fiscal

Eighth Fiscal

Ninth Fiscal

PeriodPeriodPeriodReserve for the end of the previous period

406

777

432

552

477

Reserve for the fiscal period under review

370

14

128

93

71

Reversal of reserve for the fiscal period under review

－

359

8

167

79

Reserve bring to the next period

777

432

552

477

469

-46-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

C.
Type

OfficeBuildings

Details of the Tenants
Area

Tokyo
Metropolitan
Area

No.

(As of October 31, 2009)
Property Name

Total Leasable
Floor Area(㎡)(Note 1)

Total No. of
Total Rental
Leasehold andTotal Leased Total No. of
No. of Occupancy
Leasable
Leasedand Other Operating Security Deposits
Floor Area
Tenants Ratio (%）
Residential units Residential units
Revenues(¥thousands) (¥thousands)(Note 5) (Note 6)(㎡)(Note 2)(Note 3)(Note 4)(Note 7)(Note 8)A-60

KDX Harumi Building

9,294.00

9,294.00

-

-

6

100.0

409,772

574,468

A-40

Toranomon Toyo Building

6,339.73

6,048.78

-

-

12

95.4

316,404

509,487

A-46

Hiei Kudan-Kita Building

6,902.72

6,902.72

-

-

16

100.0

303,694442,507

A-37

KDX Ochanomizu Building

5,880.885,880.88

-

-

5

100.0

215,426

251,079

A-32

KDX Shiba-Daimon Building

6,028.34

6,028.34

-

-

8

100.0

201,548247,877

A-13

KDX Kojimachi Building

3,809.74

3,302.07

-

-

9

86.7

151,019

283,500

A-1

KDX Nihonbashi 313 Building

5,899.56

5,899.56

-

-

9

100.0

266,876

356,566

A-16

Toshin-24 Building

6,610.22

6,165.92

-

-

12

93.3

210,692

244,524

A-2

KDX Hirakawacho Building

4,447.08

4,447.08

4

4

18

100.0

182,583

243,279

A-47

KDX Shin-Yokohama 381 Building

5,727.46

5,727.46

-

-

27

100.0

130,131

213,572

A-17

Ebisu East 438 Building

3,079.74

3,079.74

-

-

7

100.0

138,837

270,030

A-3

Higashi-Kayabacho Yuraku Building

4,413.17

4,413.17

-

-

7

100.0

187,061

246,519

A-39

KDX Toranomon Building

1,966.56

1,755.93

-

-

6

89.3

102,772

188,287

A-30

KDX Nishi-Gotanda Building

3,881.28

3,881.28

-

-

5

100.0

159,784

214,823

A-48

KDX Kawasaki-Ekimae Hon-cho Building

5,124.98

5,124.98

-

-

1

100.0

171,306

155,091

A-4

KDX Hatchobori Building

3,325.04

3,096.28

-

-

5

93.1

135,599

141,595

A-18

KDX Omori Building

4,948.63

4,948.63

-

-

11

100.0

162,296

227,505

A-19

KDX Hamamatsucho Building

2,726.77

2,726.77

-

-

8

100.0

108,855

160,995

A-45

KDX Roppongi 228 Building

1,914.60

1,003.01

-

-

5

52.4

62,12555,254A-29

KDX Higashi-Shinjuku Building

5,926.75

5,926.75

-

-

8

100.0

149,082

165,798

A-20

KDX Kayabacho Building

3,019.95

3,019.95

-

-

5

100.0

120,966

190,503

A-56

KDX Jimbocho Building

2,320.69

2,320.69

-

-

4

100.0

94,463

141,319

A-49

Nissou Dai-17 Building

2,739.62

2,739.62

-

-

7

100.0

79,163

76,348A-21

KDX Shinbashi Building

1,704.65

1,704.65

-

-

5

100.0

93,822

128,028

A-5

KDX Nakano Sakaue Building

4,389.65

4,008.26

18

14

23

91.3

99,464

97,949A-22

KDX Shin-Yokohama Building

4,810.89

4,480.93

-

-

19

93.1

114,912

169,597

A-6

Harajuku F.F. Building

3,068.36

3,068.36

-

-

3

100.0

115,560

169,103

A-50

Ikejiri-Oohashi Building

2,449.11

2,236.55

-

-

7

91.3

78,715

110,692

A-27

KDX Kajicho Building

2,562.32

2,417.15

-

-

8

94.3

86,415

115,629

A-51

KDX Hamacho Nakanohashi Building

2,245.69

2,245.69

-

-

7

100.0

80,517100,723

A-15

KDX Hamacho Building

3,102.43

3,102.43

-

-

9

100.0

100,478

133,969

A-41

KDX Shinjuku 286 Building

2,447.80

2,447.80

-

-

9

100.0

84,992

105,335

A-7

FIK Minami Aoyama

1,823.64

1,823.64

-

-

5

100.0

103,286

115,141

A-14

KDX Funabashi Building

3,874.21

3,874.21

-

-

18

100.0

108,848

144,557

A-61

KDX Hamamatsucho Dai-2 Building

1,953.50

1,953.50

-

-

8

100.0

73,048105,524

A-55

Shin-toshin Maruzen Building

1,938.10

1,938.10

-

-

5

100.0

48,27392,798A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

4

100.0

72,543

114,836

A-57

KDX Gobancho Building

1,651.48

1,415.52

-

-

6

85.7

47,03949,299A-8

Kanda Kihara Building

1,945.55

1,945.55

-

-

8

100.0

71,988137,482

A-23

KDX Yotsuya Building

2,536.53

2,536.53

-

-

3

100.0

97,025

147,498

A-59

KDX Iwamoto-cho Building

1,524.68

1,143.32

3

3

7

75.0

57,73540,683

A-9

KDX Shinjuku-Gyoen Building

2,105.18

2,105.18

-

-

1

100.0

73,066109,676

A-26

KDX Kiba Building

2,450.90

2,450.90

-

-

7

100.0

67,67880,358A-38

KDX Nishi-Shinjuku Building

1,605.72

1,605.72

-

-

8

100.0

57,31569,412A-31

KDX Monzen-Nakacho Building

2,010.62

2,010.62

-

-

5

100.0

57,84965,930-47-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

A-52
Tokyo
Metropolitan
Area

OfficeBuildings
Other
Regional
Areas

Residential
Properties

Total Leasable
Floor Area(㎡)(Note 1)

Property Name

Total No. of
Total Rental
Leasehold andTotal Leased Total No. of
No. of Occupancy
Leasable
Leasedand Other Operating Security Deposits
Floor Area
Tenants Ratio (%）
Residential units Residential units
Revenues(¥thousands) (¥thousands)(Note 5) (Note 6)(㎡)(Note 2)(Note 3)(Note 4)(Note 7)(Note 8)KDX Kanda Misaki-cho Building

1,339.46

1,339.46

-

-

8

100.0

40,59948,985A-34

KDX Hon-Atsugi Building

2,747.28

2,747.28

-

-

10

100.0

65,85787,259A-35

KDX Hachioji Building

2,179.88

1,866.07

-

-

6

85.6

45,972

43,392A-28

KDX Nogizaka Building

1,250.12

1,250.12

1

1

6

100.0

36,28343,719A-58

KDX Nagoya Sakae Building

6,923.12

5,008.86

-

-

12

72.3

36,540129,201

A-12

Portus Center Building

11,569.19

10,243.02

-

-

27

88.5

292,351

353,542

A-42

Karasuma Building

8,551.97

7,363.41

-

-

30

86.1

211,921249,800

A-53

KDX Hakata-Minami Building

10,123.99

9,555.00

-

-

43

94.4

207,077

245,543

A-54

KDX Kitahama Building

3,993.81

3,850.54

-

-

8

96.4

91,082

83,420A-44

KDX Sendai Building

3,955.44

3,821.44

-

-

28

96.6

96,479209,663

A-24

KDX Minami Semba Dai-1 Building

3,108.16

2,622.96

-

-

9

84.4

64,812

68,070A-25

KDX Minami Semba Dai-2 Building

2,699.27

2,214.81

-

-

21

82.1

56,10741,504A-36

KDX Niigata Building

4,046.42

2,516.45

-

-

19

62.2

67,18955,002

Subtotal of Office Buildings (58 properties)

222,809.17

210,440.18

26

22

603

94.4

7,163,317

9,664,275

Tokyo
Metropolitan
Area

Other
Regional
Areas

B-19

Residence Charmante Tsukishima

7,711.14

7,711.14140

140 1 (Note 9)

100.0

167,762

50,580B-3

Court Mejiro

2,046.79

1,745.62

20

17

17

85.3

39,437

15,377

B-34

Gradito Kawaguchi

1,619.34

1,619.34

66

66 2 (Note 10)100.0

32,927

10,028B-25

Court Shin-Okachimachi

1,377.87

1,219.18

41

36

36

88.5

27,821

8,289

B-18

Venus Hibarigaoka

12,829.64

12,376.91

159

153

114

96.5

94,48026,596

Subtotal of Residential Properties (5 properties)
CentralTokyo
Urban
Metropolitan
RetailArea
Properties

25,584.78

24,672.19

426

412

170

96.4

362,428

110,870

C-1

Frame Jinnan-zaka

4,655.71

4,356.61

-

-

11

93.6

299,292

329,893

C-2

KDX Yoyogi Building

1,175.38

1,175.38

-

-

10

100.0

64,347

123,502

5,831.09

5,531.9921

94.9

363,640

453,396

240,644.36

794
434(Note 11)94.7

7,889,386

10,228,541

Subtotal of Central Urban Retail Properties (2 properties)
Total of 65 properties

254,225.04

452

Occupancy Ratio over the Past Five Years
October 31, 2005

96.6%

April 30, 2006

94.9%

October 31, 2006

95.3%

April 30, 2007

95.9%

October 31, 2007

96.9%

April 30, 2008

95.9%

October 31, 2008

95.6%

April 30, 2009

95.7%

October 31, 200994.7%

Notes:
1. Total leasable floor area refers to the leasable floor area for each Property including the building (aggregate total of the leasable floor area of each building in thecase of more than one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans.
2. Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
3. The total number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential purposes.
4. The total number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end tenantsor sub-lease agreements are singed.
5. The total number of tenants refers to the actual number of end tenants for each property. However, for Residence Charmante Tsukishima, please refer to Note 9,
and for Gradito Kawaguchi, please refer to Note 10.
6. The occupancy ratio is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place.
7. Total rental and other operating revenues cover all income, including that from rental revenue, common charges, and parking space rental revenues, rounded to
the nearest one thousand yen. Total real estate business rental revenues refers to the total amount of revenues generated during the fiscal period under review-48-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

from real estate rental operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
8. Guarantee and security deposits refers to the total of the balances of security deposits held (including net security deposits in the case of

discount) and guarantee deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest
thousand yen.
9. Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-term lease: until January 30, 2011) fixed-term building lease contract(term of contract: to January 30, 2029) with Sekiwa Real Estate, Ltd., a master lessor, the total number of tenants is indicated 1.
10. Gradito Kawaguchi: Because the master lessor and Haseko Livenet Inc. have concluded a rental guarantee (fixed-term lease: until March 31, 2010) building
lease contract for dwelling units (excluding first-floor shops), the total number of tenants is indicated as 2.
11. The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.
(Reference) Total rental and other revenues for the residential properties sold during the Ninth Fiscal Period（Unit: Thousands of Yen）
Property No.

Property Name

Total Rental and Other Operating Revenues

B-4

Apartments Motoazabu

10,488B-5Apartments Wakamatsu-Kawada

21,986

Total

32,474

D. Information concerning major real estate properties
There were no major real estate properties with real estate business rental revenues exceeding 10% of total real estate business rental revenues for the
ninth fiscal period.
E. Information concerning major tenants(a) Tenant which holds more than 10% of the total leased area: None(b) Reference: Major end tenants

Name of End Tenant
1 Sekiwa Real Estate, Ltd.
2 NTT Data Corporation
3 N / A (Note 2)
4 Kodak Japan Ltd.
5 Five Foxes Co., Ltd.
Subtotal

Property Name
Residence Charamante Tsukishima
KDX Harumi Building, KDX Higashi-Shinjuku Building
KDX Kawasaki-Ekimae Hon-cho Building
KDX Monzen Nakacho Building,
KDX Ochanomizu Building
Harajuku F.F. Building

Portfolio Total(As of October 31, 2009)
Leased Floor Percentage of Total Leased
Area
Floor Area (Note 1)
7,711.14 ㎡
5,185.96 ㎡
5,124.98 ㎡

3.2％
2.2%
2.1％

3,121.83 ㎡

1.3％

2,855.05 ㎡
23,998.96 ㎡

1.2％
10.0%

240,644.36 ㎡

100.0％

Notes:
1.

Percentage of total leased floor area refers to the floor area leased to each end tenant as a proportion of total leased floor area. Figures are rounded to the nearest
first decimal place.

2.

Not disclosed due to the tenants’ request.

-49-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Ｆ．Status of the Posted CollateralNo.

Property Name

Status of Collateral(Secured・Unsecured)Type of CollateralAppraisal Value at the End of NinthFiscal Period (Millions of Yen)
Collateralized

Uncollateralized

A-60

KDX Harumi Building

SecuredFixed pledge

10,600-A-40

Toranomon Toyo Building

SecuredFixed pledge

9,910

-

A-46

Hiei Kudan-Kita Building

SecuredFixed pledge

7,900

-

A-37

KDX Ochanomizu Building

SecuredFixed pledge

6,760

-

A-32

KDX Shiba-Daimon Building

SecuredFixed pledge

5,030

-

A-13

KDX Kojimachi Building

-

4,420

A-1

KDX Nihonbashi 313 Building

SecuredFixed pledge

7,400

-

A-16

Toshin-24 Building

SecuredFixed pledge

4,970

-

Unsecured-

A-2

KDX Hirakawacho Building

Unsecured

-

-

5,250

A-47

KDX Shin-Yokohama 381 Building

Unsecured

-

-

3,050

A-17

Ebisu East 438 Building

Unsecured

-

-

4,280

A-3

Higashi-Kayabacho Yuraku Building

SecuredFixed pledge

5,560

-

A-39

KDX Toranomon Building

SecuredFixed pledge

3,620

-

A-30

SecuredFixed mortgage

3,710

-

A-48

KDX Nishi-Gotanda Building
KDX Kawasaki-Ekimae Hon-cho Building

Fixed mortgage

3,320

-

A-4

KDX Hatchobori Building

-

3,440

A-18

KDX Omori Building

SecuredFixed pledge

3,900

-

A-19

KDX Hamamatsucho Building

SecuredFixed pledge

3,510

-

SecuredUnsecured

Unsecured-

A-45

KDX Roppongi 228 Building

-

2,240

A-29

KDX Higashi-Shinjuku Building

SecuredFixed pledge

-

3,240

-

A-20

KDX Kayabacho Building

SecuredFixed pledge

2,870

-

A-56

KDX Jimbocho Building

SecuredFixed mortgage

2,450

-

A-49

Nissou Dai-17 Building

SecuredFixed pledge

1,720

-

A-21

KDX Shinbashi Building

-

2,790

Unsecured-

A-5

KDX Nakano Sakaue Building

SecuredFixed pledge

2,400

-

A-22

KDX Shin-Yokohama Building

SecuredFixed pledge

2,550

-

A-6

Harajuku F.F. Building

SecuredFixed pledge

2,920

-

A-50

Ikejiri-Oohashi Building

SecuredFixed pledge

1,700

-

A-27

KDX Kajicho Building

SecuredFixed pledge

2,300

-

A-51

KDX Hamacho Nakanohashi Building

SecuredFixed pledge

1,950

-

A-15

KDX Hamacho Building

SecuredFixed pledge

2,220

-

A-41

KDX Shinjuku 286 Building

SecuredFixed pledge

2,050

-

A-7

FIK Minami Aoyama

-

2,780

A-14

KDX Funabashi Building

1,890

-

A-61

KDX Hamamatsucho Dai-2 Building

A-55

Shin-toshin Maruzen Building

A-33

KDX Okachimachi Building

Unsecured

A-57

KDX Gobancho Building

Unsecured

Unsecured
SecuredFixed mortgage

Unsecured
Secured

-

-

2,010

1,680

-

-

-

1,830

-

-

1,510

Fixed pledge

A-8

Kanda Kihara Building

1,870

-

A-23

KDX Yotsuya Building

Unsecured

-

-

2,370

A-59

KDX Iwamoto-cho Building

Unsecured

-

-

1,470

A-9

KDX Shinjuku-Gyoen Building

A-26

KDX Kiba Building

A-38

KDX Nishi-Shinjuku Building

A-31

KDX Monzen-Nakacho Building

SecuredFixed pledge

Unsecured
SecuredFixed pledge

Unsecured
SecuredFixed mortgage

-50-

-

2,030

1,450

-

-

1,330

1,280

-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

No.

Status of Collateral(Secured・Unsecured)

Property Name

Type of CollateralAppraisal Value at the End of NinthFiscal Period (Millions of Yen)
Collateralized

Uncollateralized

-

1,040

1,090

-

-

-

821

-

-

872

-

-

5,100

Fixed pledge

4,860

-

SecuredFixed pledge

5,400

-

SecuredFixed mortgage

4,180

-

-

1,740

A-52

KDX Kanda Misaki-cho Building

Unsecured

A-34

KDX Hon-Atsugi Building

A-35

KDX Hachioji Building

Unsecured

A-28

KDX Nogizaka Building

Unsecured

A-58

KDX Nagoya Sakae Building

Unsecured

A-12

Portus Center Building

Secured

A-42

Karasuma Building

A-53

KDX Hakata-Minami Building

A-54

KDX Kitahama Building

SecuredFixed pledge

Unsecured-

A-44

KDX Sendai Building

SecuredFixed pledge

1,510

-

A-24

KDX Minami Semba Dai-1 Building

SecuredFixed pledge

1,110

-

A-25

KDX Minami Semba Dai-2 Building

SecuredFixed pledge

1,140

-

A-36

KDX Niigata Building

B-19

Residence Charmante Tsukishima

B-3

Court Mejiro

Unsecured

B-34

Gradito Kawaguchi

Unsecured

Unsecured
Secured

-

-

824

4,420

-

-

-

962

-

-

951

Fixed pledge

B-25

Court Shin-Okachimachi

-

776

B-18

Venus Hibarigaoka

SecuredUnsecured

Fixed pledge

1,370

-

C-1

Frame Jinnan-zaka

SecuredFixed pledge

10,300-C-2

KDX Yoyogi Building

Unsecured
Total

-

-

-

1,940

148,11055,826

Notes:
1. Collateral right holders (including fixed pledge holders and fixed mortgage holders) for all of the collateralized properties are as follows:
Sumitomo Mitsui Banking Corporation, The Chuo Mitsui Trust and Banking Co., Ltd., Aozora Bank, Ltd., Development Bank of Japan Inc., The Bank ofTokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Resona Bank, Ltd., The Norinchukin Bank, Citibank Japan, Ltd., Mitsui
Sumitomo Insurance Co., Ltd.
2. The outstanding balance of secured borrowings as of the end of the fiscal period under review (October 31, 2009) is 85.22 billion yen. In addition, as of December
14, 2009, the outstanding balance of secured borrowings is 84.22 billion yen.

-51-

【Reference】

Earnings Performance for the Individual Properties for the 9th Fiscal Period (May 1, 2009 to October 31, 2009)：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property Name

KDX Harumi
Building

Toranomon Toyo
Building

Hiei Kudan-Kita
Building

KDX Ochanomizu
Building

KDX ShibaDaimon Building

Acquisition Date

June 30, 2008

June 1, 2007

March 1, 2007 November 1, 2005 August 1, 2005

Price Information

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

KDX Nihonbashi
313 Building※As of October 31, 2009

KDX ShinYokohama 381
Building

Toshin 24 Building

KDX Hirakawacho
Building

May 1, 2006

August 1, 2005 February 1, 2008

Ebisu East 438
Building

Higashi-Kayabacho KDX Toranomon
Yuraku Building
Building

KDX NishiGotanda Building

May 1, 2006

August 1, 2005 April 17, 2007 December 1, 2006

Lease Information

9,850
4.5%
9,891
9,910
4.9%
12
6,339.73
6,048.78

February 1, 2008
7,600
3.5%
7,636
7,900
3.9%
16
6,902.72
6,902.72

April 2, 2007

10,2504.7%
10,075
10,6005.2%
69,294.00
9,294.00

6,400
2.9%
6,711
6,760
3.3%
5
5,880.885,880.88

6,090
2.8%
6,312
5,030
2.5%
8
6,028.34
6,028.34

5,950
2.7%
5,773
4,420
2.2%
9
3,809.74
3,302.07

5,940
2.7%
6,231
7,400
3.6%
9
5,899.56
5,899.56

5,300
2.4%
5,203
4,970
2.4%
12
6,610.22
6,165.92

5,180
2.4%
5,198
5,250
2.6%
18
4,447.08
4,447.08

4,700
2.1%
4,868
3,050
1.5%
27
5,727.46
5,727.46

4,640
2.1%
4,543
4,280
2.1%
7
3,079.74
3,079.74

4,450
2.0%
4,466
5,560
2.7%
7
4,413.17
4,413.17

4,400
2.0%
4,855
3,620
1.8%
6
1,966.56
1,755.93

4,200
1.9%
4,178
3,710
1.8%
5
3,881.28
3,881.28

100.0%
100.0%
100.0%-

95.4%
100.0%
100.0%
99.1%
97.5%
-

100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
90.2%
100.0%
100.0%
100.0%-

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

86.7%
88.6%
98.2%
98.2%
97.1%
97.1%
97.1%
80.5%

100.0%
100.0%
100.0%
100.0%
100.0%
98.9%
100.0%
100.0%

93.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

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

100.0%
92.1%
97.5%
94.6%
-

100.0%
83.4%
100.0%
100.0%
100.0%
100.0%
100.0%-

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

89.3%
78.6%
78.6%
100.0%
100.0%-

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

Occupancy ratio
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006
As of April 30, 2006

Income and Retained Earnings Information for the 9th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

409,772

316,404

303,694

215,426

201,548

151,019

266,876

210,692

182,583

130,131

138,837

187,061

102,772

159,784

Rental revenues

352,148

296,460

275,768

201,055

179,860

120,817

250,768

181,658

163,435

107,884

123,405

168,571

96,405

135,432

Other operating revenues

57,624

19,94327,925

14,371

21,68730,201

16,10829,033

19,14722,247

15,431

18,4906,366

24,351

101,601

72,04590,75546,76547,94544,25654,40945,224

48,41335,32037,87038,20932,14233,190Property management fees

40,834

21,44932,231

13,003

17,164

10,634

18,943

21,305

17,076

10,977

11,113

14,8386,135

12,475

Taxes

19,67230,44424,70815,583

11,671

16,876

18,5096,231

15,352

5,048

10,498

9,528

10,265

9,172

Utilities

38,006

16,727

20,466

11,174

13,666

8,998

12,682

15,441

10,54010,354

8,375

9,045

3,575

8,407

Repairs and maintenance costs

643

412

4,926

1,403

820

6,637

1,021

852

977

2,643

807

1,259

9,386

1,554

Insurance

552

400

502

332

303

248

362

377

325

319

194

245

107

227

Trust fees and other expenses

1,892

2,611

7,921

5,267

4,319

860

2,891

1,015

4,143

5,976

6,880

3,292

2,672

1,353

③ＮＯＩ （＝①-②） (\ Thousands)

308,170

244,359

212,938

168,661

153,602106,763

212,467

165,467

134,169

94,811

100,966

148,852

70,629126,594④Depreciation (\ Thousands)

76,97011,743

14,39725,76428,47740,25628,75032,90325,38434,94520,872

26,98913,13450,466⑤Rental operating income（＝③-④） (\ Thousands)

231,199

232,615

198,540

142,897

125,125

66,506

183,716

132,563

108,784

59,86680,093

121,862

57,495

76,128②Property-related expenses (\ Thousands)⑥Capital expenditures (\ Thousands)

-

1,358

14,913

117,279

1,155

6,616

7,486

12,3192,635

11,950

4,867

11,995700

8,578⑦ＮＣＦ （＝③-⑥） (\ Thousands)

308,170

243,001

198,024

51,381

152,447

100,147

204,981

153,148

131,533

82,86096,099136,857

69,929118,016

Expense ratio （＝②／①）

24.8%
39,343
14,6513.58%

22.8%
60,888
11,444
3.62%

29.9%
49,415
10,543
3.47%

21.7%
31,031
7,838
3.64%

23.8%
23,339
7,247
3.60%

29.3%
33,753
5,260
3.48%

20.4%
37,018
9,782
3.67%

21.5%
24,921
7,676
3.64%

26.5%
30,703
6,464
3.54%

27.1%
20,168
4,590
3.53%

27.3%
20,995
4,893
3.52%

20.4%
19,056
6,855
3.66%

31.3%
20,530
3,538
3.44%

20.8%
18,337
5,844
3.66%

110,320
9,193

260,050
21,670347,270
28,939323,470
26,955242,590
20,215

180,970
15,080214,340
17,861

176,760
14,730210,660
17,555

192,390
16,032

144,400
12,033

107,050
8,920

70,4005,866

136,230
11,352

◆

◆

◆

◆

◆

-

◆

◆

-

-

-

◆

Property tax for the year 2009 (\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

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

◆

◆

-52-

【Reference】

Earnings Performance for the Individual Properties for the 9th Fiscal Period (May 1, 2009 to October 31, 2009)：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property NameKDX KawasakiEkimae Hon-cho
Building

Acquisition Date
Price Information

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

KDX Omori
Building

KDX
Hamamatsucho
Building

February 1, 2008 August 1, 2005
3,760
3,680
1.7%
1.7%
3,900
3,458
3,320
3,440
1.6%
1.7%
1
5
5,124.98
3,325.04
5,124.98
3,096.28

May 1, 2006

May 1, 2006

KDX Roppongi 228 KDX HigashiBuilding
Shinjuku Building

KDX Kayabacho
Building

January 10, 2008 September 1, 2006
3,300
2,950
1.5%
1.3%
3,452
3,199
2,240
3,240
1.1%
1.6%
5
8
1,914.60
5,926.75
1,003.01
5,926.75

May 1, 2006

Lease Information

3,500
1.6%
3,452
3,900
1.9%
11
4,948.63
4,948.63

3,460
1.6%
3,344
3,510
1.7%
8
2,726.77
2,726.77

100.0%
94.5%
100.0%
100.0%
100.0%
100.0%
100.0%-

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

52.4%
65.2%
78.0%
80.4%
-

KDX Jimbocho
Building※As of October 31, 2009

Nissou Dai-17
Building

March 31, 2008 February 1, 2008

KDX Shinbashi
Building

KDX NakanoKDX ShinSakaue Building Yokohama Building

May 1, 2006

August 1, 2005

May 1, 2006

Harajuku F.F.
Building

Ikejiri-Oohashi
Building

August 1, 2005 February 1, 2008

2,780
1.3%
2,877
2,870
1.4%
5
3,019.95
3,019.95

2,760
1.3%
2,947
2,450
1.2%
4
2,320.69
2,320.69

2,710
1.2%
2,690
1,720
0.8%
7
2,739.62
2,739.62

2,690
1.2%
2,672
2,790
1.4%
5
1,704.65
1,704.65

2,533
1.2%
2,488
2,400
1.2%
23
4,389.65
4,008.26

2,520
1.1%
2,470
2,550
1.3%
19
4,810.89
4,480.93

2,450
1.1%
2,476
2,920
1.4%
3
3,068.36
3,068.36

2,400
1.1%
2,492
1,700
0.8%
7
2,449.11
2,236.55

100.0%
100.0%
100.0%
100.0%
100.0%
84.9%
100.0%-

100.0%
100.0%
59.8%
0.0%
-

100.0%
100.0%
100.0%
100.0%-

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

91.3%
92.3%
96.5%
100.0%
100.0%
100.0%
97.0%
98.8%

93.1%
93.1%
83.2%
100.0%
99.6%
100.0%
99.6%-

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

91.3%
82.6%
100.0%
91.3%-

Occupancy ratio

100.0%
100.0%
100.0%
100.0%-

As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006
As of April 30, 2006

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

100.0%
97.0%
86.2%
82.2%
92.6%
100.0%
100.0%-

Income and Retained Earnings Information for the 9th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

171,306

135,599

162,296

108,855

62,125

149,082

120,966

94,463

79,16393,822

99,464

114,912

115,560

78,715

Rental revenues

134,066

112,203

142,237

93,06339,597

124,965

109,760

87,49369,82587,44986,439101,764

104,287

65,189Other operating revenues

37,24023,396

20,05815,792

22,527

24,117

11,205

6,969

9,338

6,372

13,024

13,147

11,273

13,52651,70437,352

49,13834,997

29,691

48,21825,91919,324

20,842

24,20835,81927,43628,247

19,827

Property management fees

21,31513,012

17,074

7,888

5,405

14,187

9,340

6,454

8,613

7,181

9,719

13,59910,036

6,677

Taxes

3,828

9,254

12,452

8,964

7,077

14,263

7,185

7,285

2,788

10,686

8,065

3,527

7,932

6,152

Utilities

25,137

9,386

16,149

5,598

4,594

14,178

5,960

4,123

6,732

4,175

5,362

7,911

6,591

4,264

Repairs and maintenance costs

785

3,082

403

6,289

11,890

3,228

378

1,198

1,537

358

3,371

1,370

814

426

Insurance

268

215

320

148

97

330

163

118

170

125

282

239

163

146

②Property-related expenses (\ Thousands)

368

2,401

2,739

6,108

626

2,030

2,891

145

1,000

1,680

9,018

789

2,710

2,160

③ＮＯＩ （＝①-②） (\ Thousands)

119,602

98,247113,157

73,85832,433

100,863

95,04675,13858,321

69,61363,64487,47587,31358,887④Depreciation (\ Thousands)

29,83437,32225,991

22,046

4,811

18,43915,705

14,513

15,937

7,759

31,867

21,387

11,700

10,630⑤Rental operating income（＝③-④） (\ Thousands)

89,76760,92487,16651,811

27,62182,42379,341

60,62542,38461,85331,77766,08875,612

48,256

360

-

600

643

2,492

12,293

4,133

697

-

-

4,323

1,470

1,740

3,475

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

119,242

98,247

112,557

73,21529,941

88,57090,91374,441

58,321

69,61359,32086,00585,57355,412

Expense ratio （＝②／①）

30.2%
15,298
5,936
3.47%

27.5%
18,509
4,772
3.52%

30.3%
24,902
5,621
3.46%

32.2%
17,927
3,728
3.43%

47.8%
14,142
1,929
3.11%

32.3%
28,525
5,100
3.42%

21.4%
14,369
4,408
3.64%

20.5%
14,410
3,461
3.66%

26.3%
11,149
2,805
3.54%

25.8%
21,375
3,335
3.56%

36.0%
16,129
3,328
3.35%

23.9%
14,109
4,130
3.59%

24.4%
15,864
4,140
3.58%

25.2%
12,3022,808
3.57%

446,967
37,247

158,190
13,182

276,530
23,044

68,1805,681

54,6804,556

200,740
16,728114,840
9,570

112,870
9,405

88,4807,373

102,789
8,565

141,400
11,783

194,390
16,199160,510
13,375

158,270
13,189

◆

-

◆

◆

◆

◆

-

◆

◆

◆

◆

Trust fees and other expenses⑥Capital expenditures (\ Thousands)

Property tax for the year 2009 (\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

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

◆

-

◆

-53-

【Reference】

Earnings Performance for the Individual Properties for the 9th Fiscal Period (May 1, 2009 to October 31, 2009)：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property NameKDX Kajicho
Building

Acquisition Date

July 3, 2006

Price Information

2,350
1.1%
2,435
2,300
1.1%
8
2,562.32
2,417.15

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

KDX Hamacho
Building

February 1, 2008 March 16, 2006
2,310
2,300
1.0%
1.0%
2,388
2,276
1,950
2,220
1.0%
1.1%
7
9
2,245.69
3,102.43
2,245.69
3,102.43

KDX Shinjuku 286
Building

June 1, 2007

FIK Minami
AoyamaKDX Funabashi
Building

KDX
Hamamatsucho
Dai-2 Building※As of October 31, 2009

Shin-toshin
KDX Okachimachi
Maruzen Building
Building

KDX Gobancho
Building

Kanda Kihara
Building

August 1, 2005 March 1, 2006 September 1, 2008 February 29, 2008 March 1, 2007 March 31, 2008 August 1, 2005

KDX Yotsuya
Building

KDX Iwamoto-cho
Building

KDX ShinjukuGyoen Building

May 1, 2006

May 1, 2008

August 1, 2005

Lease Information

2,300
1.0%
2,356
2,050
1.0%
9
2,447.80
2,447.80

2,270
1.0%
2,272
2,780
1.4%
5
1,823.64
1,823.64

2,252
1.0%
2,453
1,890
0.9%
18
3,874.21
3,874.21

2,200
1.0%
2,269
2,010
1.0%
8
1,953.50
1,953.50

2,110
1.0%
2,174
1,680
0.8%
5
1,938.10
1,938.10

2,000
0.9%
2,140
1,830
0.9%
4
1,792.54
1,792.54

1,951
0.9%
2,017
1,510
0.7%
6
1,651.48
1,415.52

1,950
0.9%
1,863
1,870
0.9%
8
1,945.55
1,945.55

1,950
0.9%
1,963
2,370
1.2%
3
2,536.53
2,536.53

1,864
0.8%
1,860
1,470
0.7%
7
1,524.68
1,143.32

1,610
0.7%
1,581
2,030
1.0%
1
2,105.18
2,105.18

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
65.3%
87.3%

100.0%
100.0%
100.0%
100.0%
100.0%-

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

100.0%
100.0%
98.4%
100.0%
100.0%
100.0%
97.9%
91.9%

100.0%
100.0%
100.0%-

100.0%
64.3%
80.9%
100.0%-

100.0%
100.0%
100.0%
89.7%
100.0%
100.0%-

85.7%
100.0%
85.7%
100.0%-

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

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

75.0%
100.0%
92.7%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
184daysOccupancy ratio

94.3%
100.0%
100.0%
100.0%
85.8%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%-

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

86,41580,517

100,478

84,992103,286

108,848

73,04848,27372,54347,03971,98897,02557,73573,066

79,55369,32889,50565,55386,547

93,34765,531

39,231

63,463

42,11465,90888,61754,67867,277

As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006
As of April 30, 2006

Income and Retained Earnings Information for the 9th Fiscal Period

Rental revenues

6,862

11,18910,973

19,43816,73815,500

7,516

9,041

9,080

4,924

6,079

8,408

3,056

5,788

21,53819,34625,96930,19824,591

32,393

17,86517,70815,246

11,982

19,70023,325

9,665

16,028Property management fees

7,295

7,656

9,465

7,144

6,456

13,470

5,267

5,695

6,032

4,698

6,316

9,424

4,233

5,424

Taxes

5,696

5,525

7,289

8,841

5,418

3,916

7,948

4,872

3,217

4,203

4,389

6,502

3,141

6,017

Utilities

4,173

4,420

6,073

6,791

4,314

8,019

4,318

3,690

3,852

2,565

4,799

5,428

2,114

3,534

Other operating revenues②Property-related expenses (\ Thousands)

Repairs and maintenance costs

330

885

1,310

5,176

384

4,611

76

525

536

410

1,702

1,034

-

382

Insurance

133

151

187

155

93

234

100

105

80

79

97

139

71

107

Trust fees and other expenses

3,907

707

1,643

2,088

7,924

2,141

155

2,818

1,526

24

2,396

796

104

563

③ＮＯＩ （＝①-②） (\ Thousands)

64,877

61,171

74,50954,79378,69576,45555,18230,56457,29635,05752,28773,70048,06957,037④Depreciation (\ Thousands)

12,634

11,65538,449

7,426

7,172

18,708

4,129

7,293

7,604

9,873

16,116

8,451

13,071

13,411⑤Rental operating income（＝③-④） (\ Thousands)

52,24249,51636,06047,367

71,522

57,74751,05323,27049,692

25,18336,171

65,24934,997

43,626⑥Capital expenditures (\ Thousands)

1,341

4,069

1,611

1,911

-

3,047

4,970

3,344

695

590

14,570

7,746

-

350

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

63,536

57,102

72,89852,882

78,69573,40750,212

27,21956,601

34,46737,71765,95448,06956,687

Expense ratio （＝②／①）

24.9%
11,393
3,087
3.57%

24.0%
11,051
2,891
3.59%

25.8%
14,578
3,571
3.55%

35.5%
17,682
2,852
3.36%

23.8%
10,835
3,713
3.60%

29.8%
15,664
3,781
3.47%

24.5%
15,895
2,616
3.58%

36.7%
12,842
1,608
3.33%

21.0%
6,431
2,649
3.65%

25.5%
8,214
1,675
3.56%

27.4%
8,778
2,536
3.52%

24.0%
12,982
3,484
3.59%

16.7%
5,823
2,159
3.74%

21.9%
12,0342,655
3.63%

96,4508,037

130,030
10,835

133,950
11,162

169,080
14,09071,790
5,982

173,340
14,44581,7106,809

98,7108,225

64,4005,366

55,2304,602

80,430
6,702

106,330
8,860

19,6801,640

105,730
8,810

◆

◆

◆

Property tax for the year 2009 (\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

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

◆

Assets pledged as collateral

-

◆

-

◆

-

-

◆

-

-

-

-54-

【Reference】

Earnings Performance for the Individual Properties for the 9th Fiscal Period (May 1, 2009 to October 31, 2009)：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

※As of October 31, 2009

Other Regional Areas
KDX Kanda
Misaki-cho
Building

Property NameKDX Kiba Building

KDX NishiKDX MonzenShinjuku Building Nakacho Building

KDX Hachioji
Building

KDX Nogizaka
Building

KDX Nagoya
Sakae Building

Portus Center
Building

Karasuma Building

Acquisition Date

June 20, 2006

April 2, 2007 January 19, 2007 February 1, 2008 March 1, 2007 March 1, 2007

July 14, 2006

July 1, 2009

September 21, 2005

June 1, 2007

KDX Hon-Atsugi
Building

Price Information

1,580
0.7%
1,623
1,450
0.7%
7
2,450.90
2,450.90

1,500
0.7%
1,550
1,330
0.7%
8
1,605.72
1,605.72

1,400
0.6%
1,443
1,280
0.6%
5
2,010.62
2,010.62

1,380
0.6%
1,392
1,040
0.5%
8
1,339.46
1,339.46

1,305
0.6%
1,266
1,090
0.5%
10
2,747.28
2,747.28

1,155
0.5%
1,321
821
0.4%
6
2,179.88
1,866.07

1,065
0.5%
1,133
872
0.4%
6
1,250.12
1,250.12

7,550
3.4%
7,822
5,100
2.5%
12
6,923.12
5,008.86

5,570
2.5%
4,941
4,860
2.4%
27
11,569.19
10,243.02

5,400
2.5%
5,499
5,400
2.6%
30
8,551.97
7,363.41

100.0%
100.0%
100.0%
88.0%
100.0%
100.0%
69.1%-

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

100.0%
100.0%
100.0%
100.0%
84.4%
100.0%-

100.0%
100.0%
100.0%
86.9%-

100.0%
100.0%
88.6%
100.0%
100.0%
100.0%
-

85.6%
85.6%
85.6%
85.6%
85.6%
96.4%
-

100.0%
87.7%
100.0%
100.0%
87.7%
100.0%
100.0%
-

72.3%
-

88.5%
93.4%
100.0%
100.0%
94.6%
97.1%
100.0%
100.0%

86.1%
93.0%
98.1%
98.6%
100.0%-

Operating periods

184days184days184days184days184days184days184days123days184days①Rental and other operating revenues (\ Thousands)

67,67857,31557,84940,59965,85745,97236,28336,540292,351

60,24250,98846,99937,45455,841

39,31329,02531,390239,735

179,692

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

KDX Kitahama
Building

February 1, 2008 February 1, 2008
4,900
2,220
2.2%
1.0%
4,888
2,219
4,180
1,740
2.0%
0.9%
43
8
10,123.99
3,993.81
9,555.00
3,850.54

Lease Information

Occupancy ratio
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006
As of April 30, 2006

Income and Retained Earnings Information for the 9th Fiscal Period

Rental revenues

94.4%
95.8%
95.4%
95.4%
-

96.4%
100.0%
88.1%
88.1%
-

184days184days184days

211,921207,077

91,082

179,860

71,604

7,435

6,327

10,8503,144

10,015

6,659

7,258

5,149

52,61632,22827,216

19,477

17,35917,883

14,587

12,17318,363

19,614

14,026

40,673

136,397

56,79253,422

29,685

Property management fees

6,158

4,984

5,162

4,025

6,636

10,137

3,827

4,814

75,77821,61817,598

8,203

Taxes

5,040

4,642

3,317

2,816

3,989

4,257

3,255

3,421

25,433

10,117

10,082

2,618

Utilities

4,072

3,428

4,806

2,279

4,827

3,793

2,617

6,300

20,45418,991

21,607

10,705

Repairs and maintenance costs

371

4,737

114

2,895

1,476

524

2,722

2,408

10,984

2,619

1,774

2,104

Insurance

120

90

115

70

161

108

69

271

2,476

470

513

195

Trust fees and other expenses

1,595

-

1,070

86

1,271

792

1,532

23,456

1,269

2,975

1,847

5,857

Other operating revenues②Property-related expenses (\ Thousands)③ＮＯＩ （＝①-②） (\ Thousands)

50,31839,43243,262

28,42647,49326,35822,257△4,133

155,954

155,128

153,654

61,397④Depreciation (\ Thousands)

22,213

9,098

9,364

4,376

24,046

9,994

6,310

47,209104,524

28,77532,30919,555⑤Rental operating income（＝③-④） (\ Thousands)

28,10530,33333,89824,04923,446

16,364

15,946△51,342

51,429126,353

121,345

41,841⑥Capital expenditures (\ Thousands)

1,417

2,275

-

-

3,129

-

8,962

5,890

-

1,724

3,472

340

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

48,90037,15743,262

28,42644,36426,35813,295△10,023

155,954

153,404

150,182

61,057

Expense ratio （＝②／①）

25.7%
10,081
2,408
3.56%

31.2%
9,281
1,974
3.44%

25.2%
6,631
2,063
3.57%

30.0%
5,585
1,408
3.47%

27.9%
7,979
2,313
3.51%

42.7%
8,514
1,476
3.21%

38.7%
6,495
1,194
3.29%

111.3%
13,670
730
2.00%

46.7%
50,863
9,149
3.13%

26.8%
40,454
7,490
3.53%

25.8%
20,160
7,361
3.56%

32.6%
10,4723,111
3.42%

85,8507,154

69,9505,829

61,4705,122

46,1403,845

141,590
11,799109,860
9,155

50,8704,239

94,2707,855

527,650
43,970229,180
19,098140,450
11,704

167,760
13,980

◆

-

◆

◆

◆

-

Property tax for the year 2009 (\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

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

◆

Assets pledged as collateral

-

◆

-

-

-

Note:The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008. In addition, the rental revenues includes the 2 months land rents of 16,666 thousand yen.

-55-

【Reference】

Earnings Performance for the Individual Properties for the 9th Fiscal Period (May 1, 2009 to October 31, 2009)：184days

Type

Office Buildings

Location※As of October 31, 2009

Residential Properties

Other Regional Areas

Central Urban Retail Properties
Other Regional
Tokyo Metropolitan Area
Areas

Tokyo Metropolitan Area

Property NameKDX Sendai
Building

KDX Minami
Semba Dai-1
Building

Acquisition Date

June 1, 2007

May 1, 2006

KDX Minami
Semba Dai-2
Building

KDX Niigata
Building

Residence
Charmante
Tsukishima

May 1, 2006

March 1, 2007

May 1, 2006

Gradito Kawaguchi

Court ShinOkachimachi

Venus Hibarigaoka Frame Jinnan-zaka

August 1, 2005 June 30, 2006

May 1, 2006

December 8, 2005 August 1, 2005 September 30, 2005

Court Mejiro

KDX Yoyogi
Building

Total of 65
Properties

Price Information

2,100
1.0%
2,216
1,510
0.7%
28
3,955.44
3,821.44

1,610
0.7%
1,518
1,110
0.5%
9
3,108.16
2,622.96

1,560
0.7%
1,424
1,140
0.6%
21
2,699.27
2,214.81

1,305
0.6%
1,486
824
0.4%
19
4,046.42
2,516.45

5,353
2.4%
5,201
4,420
2.2%
1
7,711.14
7,711.14

1,250
0.6%
1,216
962
0.5%
17
2,046.79
1,745.62

1,038
0.5%
1,044
951
0.5%
2
1,619.34
1,619.34

878
0.4%
855
776
0.4%
36
1,377.87
1,219.18

1,800
0.8%
1,899
1,370
0.7%
114
12,829.64
12,376.91

9,900
4.5%
10,017
10,3005.1%
114,655.71
4,356.61

2,479
1.1%
2,539
1,940
1.0%
10
1,175.38
1,175.38

96.6%
91.2%
86.2%
93.7%
97.1%
-

84.4%
96.9%
91.6%
87.2%
100.0%
100.0%
100.0%
-

82.1%
88.1%
91.2%
94.1%
93.6%
93.6%
90.0%
-

62.2%
73.2%
76.2%
61.0%
71.2%
83.9%
-

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

85.3%
96.1%
100.0%
95.1%
100.0%
95.0%
100.0%
85.1%

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

88.5%
96.5%
100.0%
95.4%
90.7%
91.6%
100.0%
-

96.5%
98.9%
88.7%
93.0%
94.4%
98.7%
84.6%
82.7%

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

100.0%
75.9%
91.7%
100.0%
100.0%
100.0%
100.0%
87.1%

Operating periods

184days184days184days184days184days184days184days184days184days184days184days

182days①Rental and other operating revenues (\ Thousands)

96,47964,812

56,107

67,189167,762

39,43732,927

27,821

94,480299,292

64,3477,889,386

Rental revenues

82,12551,00041,24650,455

146,882

36,39732,80926,31684,789263,441

55,906

6,876,196

Other operating revenues

14,354

13,811

14,86016,733

20,879

3,039

117

1,504

9,691

35,8518,441

1,013,190

49,24821,643

16,52329,90133,372

12,151

5,778

5,451

42,85057,734

17,2872,189,363

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Total of end tenants
Leasable floor area (㎡)Leased floor area（㎡)220,159
100.0% *Percentage are rounded to the first decimal place.
222,449
203,936
100.0%
794
254,225.04
240,644.36

Lease Information

Occupancy ratio
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006
As of April 30, 2006

Income and Retained Earnings Information for the 9th Fiscal Period②Property-related expenses (\ Thousands)

94.7%
95.7%
95.6%
95.9%
96.9%
95.9%
95.3%
94.9%

Property management fees

11,872

7,288

5,834

13,366

17,173

2,780

2,439

2,125

8,200

19,844

4,304

761,449

Taxes

7,452

3,538

2,889

8,546

7,363

3,135

1,571

1,118

8,448

15,645

4,051

532,759

Utilities

8,222

7,068

5,626

4,988

1,138

806

355

347

1,922

18,844

3,837

528,772

Repairs and maintenance costs

19,530

1,384

1,047

1,317

4,738

2,132

523

612

16,460

1,213

2,143

169,675

Insurance
Trust fees and other expenses

233

177

157

261

455

106

70

59

482

267

63

16,029

1,936

2,184

968

1,420

2,503

3,190

818

1,188

7,336

1,919

2,887

180,677
5,700,022③ＮＯＩ （＝①-②） (\ Thousands)

47,23043,16939,58437,288134,389

27,28627,14822,36951,630241,558

47,060④Depreciation (\ Thousands)

17,89325,08729,591

12,18045,522

11,253

10,026

9,431

22,33956,7979,016

1,441,923⑤Rental operating income（＝③-④） (\ Thousands)

29,33718,081

9,992

25,10888,867

16,032

17,121

12,93729,291

184,760

38,043

4,258,099⑥Capital expenditures (\ Thousands)

13,272

9,281

5,393

17,934

-

1,462

-

-

44,952600

1,970

400,404⑦ＮＣＦ （＝③-⑥） (\ Thousands)

33,95833,88734,191

19,354

134,389

25,82327,14822,3696,678

240,958

45,0905,299,618

Expense ratio （＝②／①）

51.0%
14,629
2,932
3.04%

33.4%
14,154
2,203
3.40%

29.4%
11,556
1,952
3.48%

44.5%
17,093
2,132
3.17%

19.9%
14,727
5,314
3.17%

30.8%
6,270
1,361
3.45%

17.5%
3,076
1,226
3.72%

19.6%
2,236
1,024
3.68%

45.4%
16,899
2,981
3.16%

19.3%
30,94011,037
3.69%

26.9%
8,102
2,273
3.53%

27.8%
1,162,607
276,552
3.51%

192,400
16,033

139,600
11,633

104,160
8,680

249,590
20,799126,753
10,56274,6506,220

24,6902,057

22,1201,843

339,440
28,28682,3306,860

39,1603,263

9,502,529
791,877

◆

◆

◆

-

◆

Property tax for the year 2009 (\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

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

-

-

-

◆

◆

-

-56-

【Reference】

Earnings Performance for the Individual Properties for the 9th Fiscal Period (May 1, 2009 to October 31, 2009) ：184days

Type

Residential Properties

Location

Tokyo Metropolitan Area

Acquisition Date

Total of 2 sold
Properties

Apartments
WakamatsuKawada

Apartments
Motoazabu

Property Name

Total of 67
Properties

August 1, 2005 August 1, 2005

Price Information

1,210
50.6%
1,052
1,204
210
-

1,180
49.4%
930
1,144
230
-

2,390
100.0%
1,982
2,348
440
-

-

84.6%
94.6%
90.5%
97.4%
91.7%
94.6%
97.1%

85.1%
100.0%
92.0%
94.6%
97.8%
96.3%
97.8%

-

-

Operating periods

53days119days

86days180days①Rental and other operating revenues (\ Thousands)

10,48821,98632,474

7,921,861

Rental revenues

9,311

20,61729,9286,906,124

Other operating revenues

1,177

1,369

2,546

1,015,736

3,316

7,592

10,9082,200,272

Acquisition price (\ Millions)
Percentage of total portfolio
Revenue from sale of the investment property
Costs of the investment property
Loss on sale ot real estate
Total of end tenants
Leasable floor area (㎡)Leased floor area（㎡)Lease Information

Occupancy ratio
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006
As of April 30, 2006

Income and Retained Earnings Information for the 9th Fiscal Period②Property-related expenses (\ Thousands)

923

1,679

2,602

764,051

Taxes

1,530

2,433

3,963

536,723

Utilities

123

210

333

529,105

Repairs and maintenance costs

479

919

1,398

171,074

Insurance

20

48

68

16,098Trust fees and other expenses

239

2,301

2,541

183,218③ＮＯＩ （＝①-②） (\ Thousands)

7,172

14,393

21,566

5,721,589④Depreciation (\ Thousands)

2,217

7,691

9,908

1,451,832⑤Rental operating income （＝③-④） (\ Thousands)

4,955

6,702

11,657

4,269,756

Property management fees

⑥Capital expenditures (\ Thousands)

-

-

-

400,404⑦ＮＣＦ （＝③-⑥） (\ Thousands)

7,172

14,393

21,566

5,321,184

Expense ratio （＝②／①）

31.6%
360
3.44%

34.5%
742
3.38%

33.6%
1,102
3.40%

27.8%
277,654
3.50%

-

-

-

-

Property tax for the year 2009 (\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

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

-

Assets pledged as collateral-

Note:The Investment Corporation has sold Apartments Motoazabu on June 23, 2009 and Apartments Wakamatsu-Kawada on August 27, 2009.

※As of October 31, 2009-57-

(Reference)Borrowings
Borrowings on a financial institution basis as of October 31, 2009 are as follows.
Classification

LenderShort-Term Payable

Citibank Japan, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Citibank Japan, Ltd.
Resona Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Sub Total
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
The Chuo Mitsui Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
Resona Bank, Ltd.
Sub Total
Aozora Bank, Ltd.
Mitsui Sumitomo Insurance Co., Ltd.
Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.
The Norinchukin BankThe Chuo Mitsui Trust and Banking Co., Ltd.
The Norinchukin Bank
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Chuo Mitsui Trust and Banking Co., Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
Aozora Bank, Ltd.
Resona Bank, Ltd.
Development Bank of Japan Inc.
Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Chuo Mitsui Trust and Banking Co., Ltd.
Resona Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
The Chuo Mitsui Trust and Banking Co., Ltd.
Resona Bank, Ltd.
Aozora Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sub Total
Total
Notes:

Drawndown Date

Average
Balance at theBalance at theInterest
End of Previous
End of Period
Rate
Period(\Millions)(Note 1)(\Millions)

October 31, 2008
October 31, 2008
November 4, 2008
December 8, 2008
January 13, 2009
February 27, 2009
April 30, 2009

Current Potion of Long-Term Payable
Long-Term Payable

1,500
1,000
1,000
500
1,000
500
2,500
1,000
1,000
10,000
2,000
1,000
1,500
2,000
1,200
1,300
3,750
3,750
1,500
500
500
19,000
1,500
1,000
5,000
1,000
3,000
2,500
2,000
1,500
2,500
2,000
1,500
3,000
2,000
1,000
1,000
1,500
3,000
2,000
1,300
1,400
800
2,200
1,000
300
1,000
1,250
2,000
500
1,000
1,500
1,000
3,500
2,000
57,75086,750April 30, 2009
October 26, 2009
October 30, 2009

October 31, 2007
April 25, 2008
April 2, 2007
July 31, 2008
(Note 3)(Note 3)
August 1, 2005
(Note 3)(Note 3)(Note 3) October 31, 2008

May 1, 2006
July 14, 2006
September 1, 2006
December 1, 2006
April 2, 2007
April 17, 2007
January 10, 2008
February 29, 2008
March 31, 2008
May 1, 2008
June 30, 2008
July 15, 2008

July 31, 2008

September 1, 2008
September 22, 2008
September 30, 2008
February 27, 2009

April 30, 2009

October 26, 2009
October 30, 2009

1,000
500
1,000
500
1,000
1,000
1,500
2,500
1,000
10,000
2,000
1,200
1,300
3,750
3,750
1,500
500
500
14,500
1,500
1,000
5,000
1,000
3,000
2,500
2,000
1,500
2,500
2,000
1,500
3,000
2,000
1,000
1,000
1,500
3,000
2,000
1,300
1,400
800
2,200
1,000
300
1,000
1,250
2,000
490
980
1,500
1,000
3,500
2,000
1,000
2,000
60,72085,220Last Repayment
Date

0.936 October 30, 2009
1.309 October 31, 2009
0.937 November 2, 2009
1.293 December 8, 20091.285 January 13, 2010
0.993 February 26, 2010
1.886 October 30, 2009

Payment
MethodUsage

Remarks

Full onSecured/(Note 2)maturity
Unguaranteed

1.885 April 30, 2010
1.836 October 26, 2010
1.835 October 30, 2010

1.339 October 31, 2009
1.563
October 25, 2009
1.463
1.574 April 2, 2010
1.681 January 31, 2010

Full onSecured/(Note 2)maturity
Unguaranteed

1.288 July 31, 2010

1.565 October 31, 2010

2.199 April 30, 2011
2.731 April 30, 2016
2.149 July 13, 2011
2.124 August 31, 2013
1.964 November 30, 2011
1.875 April 2, 2012
1.646 April 16, 2011
1.503 January 10, 2012
1.366 February 28, 2011
1.429 August 31, 2011
1.609
September 30, 2011
1.559
1.905 November 1, 2011
1.987 February 28, 2011
2.150 June 30, 2012
2.263 December 28, 2012
1.867 March 31, 2011

Full onSecured/(Note 2)maturity
Unguaranteed

1.870 January 31, 2011

1.992 July 31, 2011
1.775 September 1, 2011
1.713 March 22, 2011
1.818 March 31, 2011
2.071 February 29, 2012
2.040 August 31, 2012
2.225
April 28, 2011
2.230
2.458 October 31, 2011
2.458 April 27, 2012
2.424 October 26, 2013
2.445 October 30, 2013

(Note 4)(Note 5)Full onmaturity(Note 6)(Note 7)

1. The average interest rate is the weighted-average interest rate for the fiscal period. The Investment Corporation entered into interest-rate swap transactions with the aim of minimizing the risk of future increase
in interest rates. The effect of interest-rate swap transactions has been incorporated into calculations for the weighted-average interest rate.
2. Funds procured through borrowings were used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings.
3. Borrowings listed in the current potion of long-term payable were listed in long-term payable in the previous fiscal period.
4. Repayment Method: August 31, 2009 to August 31, 2011: repayment of 10 million yen every 6 months, and February 29, 2012: repayment of 450 million yen
5. Repayment Method: August 31, 2009 to February 29, 2012: repayment of 20 million yen every 6 months, and August 31, 2012: repayment of 880 million yen
6. Repayment Method: February 26, 2010 to August 31, 2013: repayment of 20 million yen every 6 months, and October 26, 2013: repayment of 840 million yen
7. Repayment Method: January 29, 2010 to July 31, 2013: repayment of 40 million yen every 6 months, and October 30, 2013: repayment of 1,680 million yen-58-