KENEDIX REALTY INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED October 31, 2013 (REIT)(May 1, 2013 to October 31, 2013)
Kenedix Realty Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
Representative:

December 12, 2013

Naokatsu Uchida, Executive Director

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

Ryosuke Homma, CEO and President

Inquiries:

Hikaru Teramato, General Manager of Planning Department, KRI Fund Division
TEL +81-3-3519-3491

Planned submission of semiannual securities report: January 30, 2014

Planned start of distribution payments: January 22, 2014

Preparing presentation material:

Yes･NoHold a financial brief meeting:Yes･No (for institutional investors and analysts)(Amounts are rounded down to the nearest ¥million)

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2013 (SEVENTEENTH FISCAL PERIOD)(1) Business Results(% indications are increase-decrease rate of period-over period)

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

October 31, 2013

9,819(‐0.5%)

4,240(‐3.7%)

2,832(‐5.7%)

2,831(‐5.7%)

April 30, 2012

9,867(‐3.4%)

4,401(‐2.5%)

3,003(‐0.3%)

3,002(‐0.3%)For the six months ended

Net Income

Return on Unitholders’ Equity

per Unit (Yen)

Ordinary Income to

Ordinary Income to Operating

Total Assets

Revenues

For the six months ended
October 31, 2013

9,881

1.9 %

0.9%

28.9%

April 30, 2013

10,476

2.0%

1.0%

30.4%

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

Total Distribution

Excluding Excess of(Millions of Yen)

Earnings (Yen)Distributions in

Total Distributions in

Excess of Earnings

Excess of Earnings

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

Unitholders’ Equity

For the six months ended
October 31, 2013

9,302

2,665

0

0

94.1%

1.8%

April 30, 2013

9,434

2,703

0

0

90.1%

1.8%

Note 1: Distribution per unit for the fiscal period ended April 30, 2013 is calculated by dividing the amount remaining after deducting the provision of reserve for reduction entry (¥298 million)
from unappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distribution per unit and net income per unit is due tothis calculation.
Note 2: Distributions per unit for the fiscal period ended October 31, 2013 is calculated by dividing the amount remaining after deducting the provision of reserve for reduction entry (¥165
million) from unappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distribution per unit and net income per unit isdue to this calculation.
（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 of(Millions of Yen)

(Millions of Yen)

to Total Assets

Common Stock (Yen)For the six months ended
October 31, 2013

316,753

150,78147.6%

526,195

April 30, 2013

308,172

150,65348.9%

525,747

This is an English-language translation of the original Japanese announcement on our Web site released on December12, 2013. However, noassurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shallprevail in the case of discrepancies between this translation and the Japanese original.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)（Amounts are rounded down to the nearest ¥million.）(4) Cash Flow Position
Cash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents

Operating Activities

Investing Activities

Financing Activities

at Period End(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

For the six months ended
October 31, 2013

5,924

-14,816

5,469

10,948

April 30, 2013

7,880

- 3,060- 950

14,371

2．FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING APRIL 30, 2014 (November 1, 2013 to April 30, 2014)
Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)Distribution perDistribution in

Unit Excluding

Excess ofExcess ofEarnings per Unit

Earnings (Yen)

(Yen)

9,360

0

For the six months ending
April 30, 2014

10,177(3.7%)

4,515(6.5%)

3,114(9.9%)

3,112(9.9%)(Reference) Estimated net income per unit for the fiscal period ending October 31, 2013: ¥9,463
Forecasted number of investment units issued and outstanding as of April30, 2014: 332,540 units
Forecasted average number of investment units during the fiscal period ending April 30, 2014: 328,910 units

3．OTHER(1) Changes in Accounting Policies・Changes in Accounting Estimate・Retrospective Restatement(a) Changes concerning accounting policy accompanying amendments to accounting standards: No(b) Changes other than (a): No(c) Change in accounting estimate: No(d) Retrospective restatement: No(2) Number of Investment Units Issued and Outstanding (including treasury units)(a) Number of investment units issued and outstanding at period end (including treasury units)
As of October 31, 2013: 286,550 units
As of April 30, 2013: 286,550 units(b) Number of treasury units at period end
As of October 31, 2013: 0 units
As of April 30, 2013: 0 units
Note: Please refer to page 33 “Notes to the Information per Unit” for the calculation of net income per unit.

*Details concerning actual status of auditing procedures
As of the disclosure of this financial report, auditing procedures for financial statements based on the Financial Instruments andExchange Law are underway.
*Explanation on the appropriate use of the forecast of results and other matters of special consideration
The forecast of results for the eighteenth fiscal period ending April 30, 2014 and nineteenth fiscal period ending October 31, 2014
are calculated based on the assumptions presented on page 11 “Preconditions and Assumptions for the Fiscal Period Ending April
30, 2014 and Fiscal Period Ending October 31, 2014.” Readers are advised that actual operating revenues, operating income,ordinary income, net income and distribution per unit may differ significantly from forecasts due to a variety of factors.
Accordingly, the Investment Corporation does not guarantee payment of the forecast distribution per unit.

This notice is an English-language translation of the original Japanese announcement on our Web site released on December 12, 2013. However, noassurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shallprevail in the case of discrepancies between this translation and the Japanese original.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

1.

Basic Structure — Overview of Companies Related to the Investment Corporation

Asset Custodian
Mizuho Trust & Banking Co., Ltd.

Investment Corporation④
Kenedix Realty
Investment Corporation

Administrative Agent for Accounting Business

General Meeting of Unitholders⑤

Lenders

Mitsubishi UFJ Trust and Banking Corporation

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

Board of Directors
Executive Director
Naokatsu Uchida

Administrator for Unitholder’s Register

Supervisory Director

Administrator for Special Account⑥
Sumitomo Mitsui Trust Bank, Limited

Kimio Kodama
Supervisory Director
Shiro Toba
Supervisory Director
Yoshihiro Morishima

Administrative Agent for Investment
Corporation Bond

Sumitomo Mitsui Banking Corporation⑦

Sumitomo Mitsui Trust Bank, Limited

Accounting Auditor

Ernst & Young ShinNihon LLC①②
Support-Line Company

Asset Management Company
Administrative Agent for Director’s Meeting
Property Management Company③

Kenedix, Inc.

Kenedix Real Estate Fund Management, Inc(Note)①Asset Management Agreement / Operating Agency Agreement②Property Management Agreement③Memorandum of Understanding with Kenedix, Inc. and Kenedix Advisors, Co., Ltd. (Note 2)④Administrative Agency Agreement / Asset Custodian Agreement⑤Unitholder Register Administrative Agency Agreement / Special Account Administrative Agency Agreement⑥Fiscal Agency Agreement
Notes:
1. On effective from October 1, 2013, the Asset Management Company for the Investment Corporation, Kenedix Office Partners, Inc, is integrated with Kenedix Advisors, Inc. and with
Kenedix Residential Partners, Inc as the surviving corporation. Kenedix Residential Partners, Inc. was renamed Kenedix Real Estate Fund Management, Inc. as part of the integration.
2. The Investment Corporation, the Asset Management Company and Kenedix, Inc. signed the new supporting line memorandum on October 1, 2013.

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 30, 2013), and accordingly this information has been omitted from this document.
(2) Operating Conditions(1) Operating Conditions for the Seventeenth Fiscal Period (fiscal period ended October 31, 2013)
A. The Investment Corporation
The Investment Corporation was established on May 6, 2005 in accordance with the Investment Trust and Investment Corporation Law (“the-3-KENEDIX REALTY INVESTMENT CORPORATION (8972)

Investment Trust Law”). On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo
Stock Exchange with a total of 75,400 investment units issued and outstanding (Securities Code: 8972). Subsequently, the Investment
Corporation raised funds through public offerings and other means including four global offerings. As a result, as of October 31, 2013, the end of
the seventeenth fiscal period, the number of investment units issued and outstanding totaled 286,550 units.
The Investment Corporation entrust the Asset management Company and in collaboration with the Asset Management Company, theInvestment Corporation strives to maximize cash distribution to investors by securing stable earnings and sustainable investment growth. To thisend, the Investment Corporation adopts the basic policy of conducting dynamic and flexible investment stance that seeks to respond to its
environment and market trends, and endeavors to ensure a timely response to opportunities.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review (fiscal period ended October 31, 2013), the Japanese economy was on an ongoing modest recovery
supported by internal demand such as for private spending and public investment. According to public documents of the cabinet office, GDP isshowing steady undertone growth rate, remaining steady even while temporary factors of volatility such as materials for growth at hand from thedemand rush caused by the consumption tax hike and the ensuing stagnation of growth as a rebound are expected. As for overseas economies,
according to the IMF’s publicly announced World Economic Outlook, it is forecasted that the growth rate of the world economy will gradually
expand, and recoveries can be seen centering on developed countries. Although fundamental solutions have not been reached for the US federal
debt ceiling problem and European debt problem and individual risk factors remain, there is a recovery trend based on the stability of financial
capital markets.
Concerning the office building leasing market, the vacancy rate of business districts across Japan is on a downward trend as new supply in the
period was relatively small and contracts were concluded at existing buildings. In particular, vacancies are steadily being eliminated in central
Tokyo such as with the vacancy rate decreasing to the 7% level for the first time in six quarters. Moreover, while the average rent at business
districts across Japan is still on a downward trend, some areas of central Tokyo are showing signs of rents increase albeit gradually from a state ofbottoming out.
In the office building transaction market, the appetite of domestic investors centering on listed J-REITs and overseas investors for acquiringproperties continues to be strong with the backdrop of a favorable funding environment and sense of property prices rising alongside theeconomic recovery expectation.
(b) Management Performance
As of the end of the sixteenth fiscal period (fiscal period ended April 30, 2013), the Investment Corporation owned 83 properties with a totalacquisition price of ¥292,553 million and preferred equity securities (investment of ¥891 million). During the fiscal period under review (fiscal
period ended October 31, 2013), the Investment Corporation acquired two office building (Itopia Nihonbashi SA Building: acquisition price of¥2,200 million, Welship Higashi Shinjuku: acquisition price of ¥1,900 million) located in the Tokyo Metropolitan Area, one central urban retailproperty (Ginza 4chome Tower: acquisition price of ¥9,800 million), equity interest in a Japanese silent partnership (tokumei kumiai) (“TK”) foran equity interest in DNI Mita Building’s (acquisition price of ¥200 million) and sold Ikebukuro Nikko Building (initial acquisition price of¥1,653 (Acquired during the seventeenth fiscal period, Itopia Nihonbashi SA Building, Welship Higashi Shinjuku and Ginza 4chome Tower
may shall hereafter be referred to as collectively, the “the acquisition of properties acquired in the Seventeenth Fiscal Period”)
As a result, the number of properties owned as of October 31, 2013 (excluding the preferred equity securities and TK interest, same applies
below.) amounts to 85, with a total acquisition price of ¥304,800 million. Looking at the portfolio as a whole, 89.9% was comprised of officebuildings, 7.2% of central urban retail properties and 2.7% of residential properties on an acquisition price basis. The occupancy ratio as of theend of the seventeenth fiscal period was 95.8% reflecting stable investment and asset management.
In addition, the Investment Corporation made its decision to acquire additional acquisition of KDX Shinbashi Building on October 8, 2013, andacquisition of SIA Takanawadai Building, Ikebukuro 261 Building, DNI Mita Building, Akihabara SF Building on October 24, 2013 (Total of 5
properties: total acquisition price of 15,968 million).
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 have strived tosecure consistent policies, specifications and procedures along with ensuring swift service with a high degree of quality.
In terms of leasing, the Investment Corporation sought out potential demand by maintaining close relationships with brokers based on thetrends of the economy and real estate market. Moreover, in order to maintain and increase the competitiveness of office buildings, renovationof air conditioning, repair of common areas, etc. were implemented according to the plan.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Consequently, as of the end of the period under review, the occupancy ratio of the Investment Corporation’s owned office buildings in theTokyo Metropolitan Area stood at 96.2% and for the Investment Corporation’s office buildings overall stood at 95.6%, an increase of 2.1%
from the previous fiscal period.
Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for our office buildings was 865 (Note 1) as of the end of the fiscal period under review (fiscal period ended
October 31, 2013). Floor area leased to the largest office end-tenant as a proportion of total leased floor area of the total portfolio and the top 3
office building tenants was 2.2% and 4.9% (Note 2), respectively. This illustrates our diversification of tenants. Furthermore, tenants of officebuildings are in various sectors. As a result, we believe the impact by a certain end-tenant vacating the property or sluggish performance in
certain sectors would have a relatively limited effect and will be able to maintain stable revenue.
Note:
1. The number of end-tenants for entire portfolio is 1,016 as of the end of the fiscal period (fiscal period ended October 31, 2013).
2. The largest office end-tenant is SMBC Nikko Securities Inc. When including the affiliates of SMBC Nikko Securities Inc. who are tenants of Kabutocho
Nikko Building II, the ratio for the largest office end-tenant as a proportion of total leased floor area of the total portfolio stood at 2.6% and 5.2% for the
top 3 office building tenants.

C. Capital Acquisition(a) Investment Corporation Bonds
The Investment Corporation issued the Fifth Series Unsecured Investment Corporation Bonds (totaling ¥1,800 million and maturing in five
years) on September 12, 2013, and used the procured funds to repay Third Series Unsecured Investment Corporation Bonds (totaling ¥1,500
million and maturing in two years) which matured on September 13, 2013 and part of existing borrowings. As a result, the outstanding
investment corporation bonds as of the end of the fiscal period under review (fiscal period ended October 31, 2013) totaled ¥6,300 million.
(b) Status of Borrowings
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates and extending borrowing periods for
its interest-bearing debt. During the fiscal period under review (fiscal period ended October 31, 2013), the Investment Corporation undertook
borrowings of ¥8,400 million (¥4,900 million in short-term borrowings, ¥3,500 million in long-term borrowings (Note1)) to acquire an additional
asset and ¥11,200 million (¥8,200 million in long-term borrowings and ¥3,000 million in short-term borrowings) to repay borrowings that matured
during the fiscal period. As a result, the balance of interest-bearing debt amounted to ¥150,558 million as of October 31, 2013, comprising¥144,258 million in borrowings (¥135,158 million in long-term borrowings and ¥9,100 million in short-term borrowings) and ¥6,300 million in
investment corporation bonds.
Furthermore, as of October 31, 2013, ¥26,700 million out of ¥43,500 million of long-term borrowings, which have floating interest rates, havebeen hedged and practically fixed by utilizing interest-rate swap agreements. In addition, the long-term debt ratio (Note 2) was 94.0% and thelong-term fixed interest debt ratio (Note 3) was 82.8%.
In addition, the Investment Corporation has maintained the average remaining term of its interest-bearing debt (Note 4), the weighted averagebased on the balance of interest-bearing debt at the end of each period, from 2.3 years at the end of the thirteenth fiscal period (fiscal period ended
October 31, 2011) to 2.3 years at the end of the fiscal period under review (fiscal period ended October 31, 2013). Furthermore, during the same
period, the average interest rate (Note 4) was reduced from 2.17% to 1.77%, demonstrating a successful steady reduction of financial costs.
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date. However, theborrowings whose period until repayment date have surpassed one year because the repayment date one year from the drawdown date is not abusiness day and for which the repayment date has been moved to the following business day are included in short-term borrowings. Long-termborrowings refer to borrowings with a period of more than one year from the drawdown date to the repayment date. The same classification criteria
apply to other borrowings listed below.
Note 2: Long-term debt ratio= (Balance of long-term borrowings + Balance of investment corporation bonds) / (Total borrowings + Balance of investment
corporation bonds) ×100
Long-term debt ratio is rounded to the nearest first decimal place.
Note 3: Long-term fixed interest debt ratio = (Balance of long-term fixed interest rate borrowings + Balance of investment corporation bonds) / (Total
borrowings + Balance of investment corporation bonds) ×100
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 is rounded to the nearest first decimal place.
Note 4: Average interest rates and average remaining terms are the weighted average based on the period-end interest rates and remaining terms based on thebalance of interest-bearing debt. Average interest rates are rounded to the nearest second decimal place and average remaining terms are rounded to
the nearest first decimal place respectively.

The balance of borrowings according to financial institutions as of April 30, 2013 and October 31, 2013 are as follows:-5-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

LenderSixteenth Fiscal Period(as of April 30, 2013)

Seventeenth Fiscal Period(as of October 31, 2013)(Millions of Yen)

(Millions of Yen)

Ratio as of End of
Seventeenth Fiscal Period(%) (Note 5)

Sumitomo Mitsui Banking Corporation

35,029.5

36,898.0

25.6

Development Bank of Japan Inc.

25,702.5

24,160.0

16.7

Aozora Bank, Ltd.

19,662.5

21,350.0

14.8

Sumitomo Mitsui Trust Bank, Limited

17,675.0

17,650.0

12.2

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,300.0

17,200.0

11.9

Mitsubishi UFJ Trust and Banking Corporation

9,200.0

9,200.0

6.4

Resona Bank, Ltd.

8,300.08,300.0

5.8Mizuho Bank, Ltd.

2,000.0

3,000.0

2.1

Mizuho Trust & Banking Co., Ltd.

1,500.0

3,000.0

2.1

The Bank of Fukuoka, Ltd.

1,000.0

1,500.0

1.0

The Nishi-Nippon City Bank, Ltd.

-

700.0

0.5

Hiroshima Bank, Ltd

-

500.0

0.3

The 77 Bank, Ltd

-

500.0

0.3

The Higashi-Nippon Bank, Limited

-

300.0

0.2

Total
136,369.5
Note 5: Percentages are rounded down to the nearest first decimal place.

144,258.0

100.0(c) Status of Credit Rating
The status of the credit ratings as of October 31, 2013 is as follows:
Credit Rating Agency
Details of the Ratings
Long-Term Issuer Rating
A+ (Outlook: Stable)
Japan Credit Rating Agency, Ltd.
Ratings on Bonds
A+
Rating of Shelf Registration(d) Status of Shelf Registration
The Investment Corporation filed a debt shelf registration statement on February 7, 2013. Details are as follows.
Investment Corporation Bonds
Planned Issue Amount¥100,000,000,000
Planned Issuance Period February 15, 2013 to February 14, 2015
Acquisition funds for specified assets, repayment of borrowings, repayment ofinvestment corporation bonds, refund of lease and guarantee deposits, funds to pay for repairs andUse of Funds
maintenance, working capital, etc.
The Investment Corporation’s Fifth Series Unsecured Investment Corporation Bonds of ¥1,800,000,000 were issued based on theabovementioned debt shelf registration statement filed in September 2013.
Furthermore, the Investment Corporation filed an equity shelf registration statement to continue to secure opportunity for flexible equity
financing on February 7, 2013. Details are as follows.
Investment Unit CertificatesPrimary Offering
Secondary Offering
Planned Issue Amount¥100,000,000,000¥15,000,000,000
February 15, 2013 to
February 15, 2013 toPlanned Issuance Period
February 14, 2015
February 14, 2015
Acquisition funds for specified assets, Not applicablerepayment of borrowings, repayment ofinvestment corporation bonds, refund of lease
Use of Funds
and guarantee deposits, funds to pay forrepairs and maintenance, working capital, etc.
There has not yet been any primary offering or secondary offering based on the abovementioned investment unit certificate shelfregistration.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥9,819 million,
operating income of ¥4,240 million, ordinary income of ¥2,832 million and net income of ¥2,831 million for its seventeenth fiscal period (fiscal
period ended October 31, 2013).
Cash distributions are paid out to the application of Article 67-15 of the Special Taxation Measures Law. In addition, the Investment Corporation
has decided to book a portion of its unappropriated retained earnings to internal reserve as a reserve for reduction entry based on application of
the “Special Provisions for Taxation in the Event of Advance Acquisition of Land, etc. in 2009 and 2010” (Article 66-2 of the Special Taxation
Measures Law) in the fiscal period under review. In accordance with this policy, following the posting of this reduction entry reserve, theInvestment Corporation deducted ¥165 million from net income to be set aside as a reduction reserve, the posting of which falls within the scopein application of provisions in Article 66-2 and Article 67-15 of the Special Taxation Measures Law. Subsequently, all the remaining net income
was distributed to unitholders, yielding ¥9,302 per unit.
(2) Outlook
A. Investment Environment
With regard to the outlook of the Japanese economy, domestic demand is growing steadily due to the effects of monetary easing and various
economic measures and it is thought to remain roughly steady for the time being as employment and the wage environment are improving as
well. However, there is also believed to be uncertainties in both upward and downward directions such as due to changes in demand in line withthe consumption tax hike and expectations for an economic ripple effect from the hosting of the Olympics. For the overseas economy, the overall
rate of growth is expected to gradually recover alongside the economic recovery in developed countries, but issues that require close monitoringsuch as the course of the US financial problem and deficits of current accounts at some emerging countries and resource-rich countries may
impact the global economy negatively. Concerning the office building leasing market, according to figures announced by Miki Shoji Co., Ltd.,as of the end of October 2013, the average vacancy rate of Tokyo’s five central wards was 7.56%, a decrease of 0.34 % from the previous month.
Compared to the beginning of the period, the average vacancy rate dropped by 0.77%
Though modest, the average vacancy rate is indicating a trend of improvement and is at the level in the past one year. On the other hand, averagerent in Tokyo’s five central wards (including for newly built office buildings) has been on a gradual downward trend, but was a slight increase
from the previous month as of the end of October 2013. Rents are expected to turn to increase in the future since more demand for office floor
space is expected alongside improvements of corporate profits and business sentiment amidst an improvement of supply and demand due to thedecrease of the vacancy rate.
In the office building transaction market, while the transaction amount in the market is decreasing due to a sense of scarcity of prime investment
properties, no major changes are seen in the proactive stance of major investors such as listed J-REITs and foreign investors for acquisitions, andstrong demand is expected to continue for office buildings as investment assets.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting dynamic and flexible investment stance that seeks to respond to its
environment and market trends, and endeavors to ensure a timely response to opportunities. From this standpoint and in light of the investment
environment described above (the Japanese economy, leasing market for office buildings, real estate transaction market, etc.), the Investment
Corporation creates a property investment strategy, existing property management strategy, and financial strategy in a dynamic and flexible
manner as set forth below.
(a) New Property Investment Strategy and Sales Policy
The Investment Corporation aims for further expansion of its asset size, with the goal of “forming a firm portfolio focusing on mid-sized officebuildings” and to become the “No. 1 J-REIT for mid-sized office buildings.” The Investment Corporation will keep mid-sized office buildings in
the Tokyo Metropolitan Area as its focus, and with regard to central urban retail properties, invest only in those that have rare value as analternative to office buildings, are located in busy commercial areas and offer a certain amount of office space. In addition, the Investment
Corporation believes that maintaining an investment strategy which aims for a certain degree of regional diversification, will be a foundation for
constructing a superior portfolio and differentiating the Investment Corporation from others in the business.
Moreover, when acquiring assets, the Investment Corporation will aim for the stable growth of the portfolio, by securing continuous
opportunities for acquiring properties and flexible acquiring methods by utilizing the Asset Management Company’s own networks and thesponsor company’s support line through the construction of multiple pipelines. Also, based on the premises of that the Investment Corporation
able to obtain opportunities for property acquisitions in the future, the Investment Corporation might invest in TK interests etc. with the sponsor
company on a conjoint basis. In addition, in order to seek diversifying acquisition methods (direct acquisition, equity investment and coordinately-7-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

acquire with the sponsor company), with consideration to the balance of capital acquisition and to secure mobilizing acquisition of properties, theinvestment company invests in warehousing related TMK etc. with the sponsor company cooperation. In selling properties, the Investment
Corporation will examine the sale of properties individually in considering the use of funds for replacement of assets through property acquisition
or fund-type investments. Of this, concerning residential properties, the Investment Corporation will not only refrain from conducting newinvestments in principle, but will also place such properties on the top of the list of properties to sell while taking into consideration the market
environment, asset size and other factors. On the other hand, the Investment Corporation will decide on the sale of office buildings and central
urban retail properties individually by considering the current profitability, revenue projections that take into account future market trends,
building age, area and property size, among other factors, and also in light of the significance of the property’s presence in the portfolio.
(b) Existing property management strategy
Taking into consideration economic and real estate market trends, the Investment Corporation adopts “a tenant-oriented approach which will leadto revenue” for its leasing activities with aims of ensuring a timely and flexible response as well as optimizing tenant satisfaction. Accordingly,
the Investment Corporation seeks to aim to maintain / increase cash flow by offering office environments with high tenant satisfaction. Based on
the aforementioned to become the mid-sized office building of the choice the Asset Management Company undertakes property management
activities as follows:・Take measures to maintain and raise competitiveness of properties
・Tailor leasing management according to the market environment
・Apply careful control of management and operating costs by taking advantage of portfolio size
・Ensure appropriate response to relevant laws and regulations
・Develop a proactive environmental response
Take measures to maintain and raise competitiveness of properties
The Investment Corporation will implement operation and management in close contact with the actual properties and further enhance themanagement level. Some specific examples of the operation and management are the installation of public wireless LAN services (installed at
67 properties located within NTT East’s service area as of October 31, 2013) and installation of automated external defibrillators (AEDs)(installed at 81 properties as of October 31, 2013) in consideration of business continuity plans (BCP) and its corporate social responsibilities(CSR).
Furthermore, tenants at properties are positioned as important “customers” and the perspective of customer satisfaction (CS) is applied to the
management of properties. The Investment Corporation has conducted a CS survey targeting the tenants of its office buildings five times incooperation with J.D. Power Asia Pacific, Inc., an internationally recognized company that engages in customer satisfaction evaluation(requesting those in charge of general affairs and employees of tenants to complete a questionnaire on the hard aspects such as the building andfacilities as well as on the soft aspects such as management and operation, consisting of multiple items for evaluation and open-ended questions).
The comprehensive satisfaction rating results for the Fifth CS survey conducted in August 2013 are as follows.
The response of “Satisfied”, “Slightly Satisfied” weighted 2.0% increase compare to the Fourth CS Survey conducted in September 2011
＜Comprehensive Satisfaction Rating＞
Slightly
Dissatisfied

Satisfied

Slightly Satisfied

Fifth CS Survey

26%

51%

18%

4%

1%

1%

Fourth CS Survey

23%

52%

19%

5%

1%

1%

Neither

Dissatisfied

Unknown

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

By conducting such surveys continuously and meeting tenant needs, the Investment Corporation is aiming to improve customer satisfaction
while also maintaining and improving the competitiveness and asset value of its properties.
Tailor leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary target of the Investment Corporation’s investment, are that many of thetenant 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 of endeavoring to maximize revenues for the medium- to long-term through maintaining
occupancy ratios, while taking into account economic and real estate market trends.
Concerning the solicitation of new tenants, the Investment Corporation strives to shorten the period of vacancy and boost the occupancy ratio by-8-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

implementing dynamic and flexible leasing activities through the sharing of information closely with leasing brokers, holding of previews,
marketing directly to corporations, utilizing guarantee companies and other measures while closely watching market conditions and timing ofchanges going forward.
Apply careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation will carefully control the quality of property management and operating costs and reduce building maintenance andoperating costs by taking advantage of the portfolio size in building maintenance costs and construction bidding.
Ensure appropriate responses to relevant laws and regulations
The Investment Corporation will gather information on the Building Standards Law and other relevant laws and regulations and any futurerevisions, in a timely manner and will respond as necessary while considering compliance.
Develop a proactive environmental response
The Investment Corporation is designated as a specified corporation pursuant to the Act on the Rational Use of Energy. The Investment
Corporation will research on energy saving and environmental friendliness of mid-sized office buildings, develop medium- to long-term energy
saving plans and reduction targets, and proactively institute measures in terms of both hardware (buildings and facilities) and soft services(operating and management services) in an aim to ensure the simultaneous pursuit of return on investment and social benefits.
(c) Financial Strategy (Debt Financing)
As the environment for procuring interest-bearing debt is continuing to improve, the Investment Corporation is determined to continue to work
to improve the terms and conditions of borrowings.
In addition, by taking the following measures, etc., the Investment Corporation aims for stable financial management.
・Reduce refinance risk by diversifying maturities of interest-bearing debt
・Have the procurement ratio of long-term fixed interest borrowings above a certain level・Control the rate of interest-bearing debt (Note) in a conservative manner (the Investment Corporation will continue to aim to keep the ratio ofinterest-bearing debt to total assets (LTV) at within less than 45% level as a rule. However, it will also remain open to the option of increasing
LTV to the upper 40% level in the event of debt financing conducted for the purpose of acquiring competitive properties or otherwise.)Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial institutions,especially mega-banks, trust banks and Development Bank of Japan, Inc., as well as aim for more conservative financial management. In
addition, the Investment Corporation aspires to pay attention to the share of each bank and consider as appropriate the introduction oftransactions with new banks based on comparison with the conditions with currently transacting banks.
Note: Interest bearing debt ratio = Interest-bearing debt at end of period / Total assets ×100(d) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aim of promptly
providing a wide range of relevant information to investors, and make revisions to the information disclosure system when needed. In specificterms, the Investment Corporation provides information through the Timely Disclosure Network System (TDnet), which is a system operated by
the Tokyo Stock Exchange, as well as press releases and its Web site (URL: http://www.kdx-reit.com/eng/ ).
(3) Important Subsequent EventsThe Issue of New Investment Units
On October 24, 2013 and November 6, 2013, the Board of Directors of the Investment Corporation resolved to issue new investment units as detailed
below. The payments were completed on November 13, 2013 for issuance of new investment units through public offering and the payment werecompleted on December 10, 2013 for Issuance of New Investment Units through Third-Party Allotment.
As a result, the Investment Corporation had total unitholders’ capital of ¥166,261,745,670 with 332,540 investment units outstanding as of December
10, 2013.
Issuance of New Investment Units through Public Offering
Number of New Units Issued：43,800 units (Japanese Offering 21,900 units, International Offering 21,900 units)

Issue Price (Offer Price)：¥430,950 per unit

Total Amount of the Issue Price (Offer Price)：¥18,875,610,000-9-KENEDIX REALTY INVESTMENT CORPORATION (8972)

Paid-in Value (Issue Amount)：¥415,480 per unit

Aggregate Paid-in Value (Total Issue Amount)：¥18,198,024,000

Payment Date

：November 13, 2013

New Investment Units through Third-Party Allotment.
Number of New Units Issued：2,190 units

Paid-in Value (Issue Amount)：¥415,480 per unit

Aggregate Paid-in Value (Total Issue Amount)：¥909,901,200

Payment Date

：December 10, 2013

Allottee：Nomura Securities Co. Ltd.

(Use of Funds)
The funds from the Japanese Offering and International Offering, allocated as a portion of the funds for the acquired properties in Eighteenth
Fiscal Period and residual amounts allocated as a portion of the funds for the repayment of borrowings alongside the acquisition of properties
acquired in the Seventeenth Fiscal Period. Furthermore, because cash on hand was allocated as a portion of the funds for the acquisition ofproperties acquired in the Seventeenth Fiscal Period, the funds from the issuance of new Investment Units by third-party allotment are allocatedto as proceed to compensate for the decrease of cash on hand resulting from the allocation.
(Reference Material)
The Investment Corporation acquired following trust beneficiary interest in real estate (total acquisition price ¥15,968 million for 5 officeproperties).
Acquisition
Acquisition Date

Property Name

Location (address)

SellerAppraisal

Price

Value

(Million yen)

(Million Yen)

GK KRF 35

3,900

4,180

November 18, 2013

Ikebukuro 261 Building

Toshima-ku, Tokyo

November 18, 2013

DNI Mita Building

Minato-ku, TokyoGK KRF 31

3,180

3,400

November 19, 2013

SIA Takanawadai Building

Minato-ku, Tokyo

Global Asset I Holding TMK

5,250

5,280

November 19, 2013

Akihabara SF Building

Chiyoda-ku, Tokyo

Global Asset II Holding(Note1)

TMK

2,600

2,710

December 2, 2013

KDX Shinbashi Building

Japanese general business
Minatoku, Tokyo(Additional Acquisition)
Total

－

corporation (Note 2)

1,038(Note 3)

Individual (Note 2)
－

－

1,150

15,96816,720Notes:
1.

The Property’s residential address has yet to be determined

2.

Names and other information of the Sellers are not disclosed because the Sellers have not given consent.

3.

The trust beneficiary interest purchase and sale agreement with the Seller falls under the category of forward commitment made as stipulated in the “Annual Supervisory
Policies for Financial Instruments Business Operators” determined by the Financial Services Agency of Japan. Therefore acquired appraisal value based on end of theseventeenth fiscal period. Furthermore, there is no change in the appraisal value at the end of the seventeenth fiscal period and time of the property acquired appraisal value.

(4) Risk Factors
There are no significant changes to the “Investment Risks” as described in the Securities Report (submitted October 24, 2013) and any
amendments thereto.
(5) Outlook
Forecasts for the eighteenth fiscal period (November 1, 2013 to April 30, 2014) are presented as follows.
Forecasts for the eighteenth fiscal period (November 1, 2013 to April 30, 2013)
Operating Revenues¥10,177 million
Operating Income¥4,515 million
Ordinary Income¥3,114 million
Net Income¥3,112 million
Distribution per Unit
¥9,360-10-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Furthermore, as announced in the press release “Notice Concerning the Announcement of Operating Forecasts for the Fiscal Period Ending April 30,
2014 and Operating Forecasts for the Fiscal Period Ending October 31, 2014” on the October 24, 2013, with announcement of public offering on thesame date, the outlook for the nineteenth fiscal period (May 1, 2014 to October 31, 2014) are presented as follows.
Forecasts for the eineteenth fiscal period (May 1, 2014 to October 31, 2014)
Operating Revenues¥10,433 million
Operating Income¥4,543 million
Ordinary Income¥3,207 million
Net Income¥3,206 million
Distribution per Unit
¥9,640Preconditions and assumptions for the outlooks, please see following “Preconditions and Assumptions for the 18th Fiscal Period Ending April 30,
2014 and 19th Fiscal Period Ending October 31, 2014” for more details.
In addition, as stated in “Preconditions and Assumptions for the 18th Fiscal Period Ending April 30, 2014 and 19th Fiscal Period Ending October 31,
2014”, the Investment Corporation issued new investment units acquired assets, repaid part of the existing borrowings and refinanced after the end ofseventeenth fiscal period. There is no changes in the forecast figures although these preconditions are updated as of this financial report date.
Note: Forecast figures are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income and distribution per unit may differ
significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does not guarantee payment of the forecast distribution per unit.

Preconditions and Assumptions for the eighteenth Fiscal Period Ending April 30, 2014 and nineteenth Fiscal Period Ending October 31, 2014
Preconditions and Assumptions
Calculation Period
Property Portfolio

Operating Revenues

Operating Expenses

 The eighteenth fiscal period: November 1, 2013 to April 30, 2014 (181 days) The nineteenth fiscal period: May 1, 2014 to October 31, 2014 (184 days)
 Although the number of real estate and trust beneficiary interests in real estate held by the Investment
Corporation as of December 12, 2013 including 5 properties (due to KDX Shinbashi Building is additionaly
acquired and with already acquired portion presented collectively as one property) acquired during theeighteenth fiscal period as stated below is 89 properties. Furthermore, it is based on the precondition thatrefunded silent partnership equity interest for G.K. KRF 31 TK after DNI Mita Building as stated below.
・ SIA Takanawadai Building (office building) (Acquired on November 19, 2013)
・ Ikebukuro 261 Building (office building) (Acquired on November 18, 2013)
・ DNI Mita Building (office building) (Acquired on November 18, 2013)
・ Akihabara SF Building (office building) ( Acquired on November 19, 2013)
・ KDX Shinbashi Building (additional acquisition) (office building) (December 2, 2013) Forecasts are based on the assumption that the number of properties will remain unchanged (sales of assets
held and acquisition of new properties, etc.) until the end of the eighteenth fiscal period and nineteenth fiscal
period, respectively, other than the above mentioned anticipated acquisitions.
 The Investment Corporation also holds TMK preferred securities. It assumes the refund of its TMK preferred
securities will not occur by the end of the eighteenth fiscal period and nineteenth fiscal period.
 The actual results may fluctuate due to changes in the property portfolio.
 Rental revenues are estimated based on valid leasing agreements as of October 24, 2013 and by considering
variable factors, such as seasonal factors against the backdrop of historical performance, as well as leasing
conditions, such as the recent deterioration of real estate market conditions, in addition to the difference in
number of operating days due to movements in existing investment assets.
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments from tenants.
 Property-related expenses other than depreciation are based on the difference in number of operating days due
to movements in existing investment assets and historic expenses, adjusted to reflect expense variables
including seasonal factors.
 An amount of ¥1,003 million for the eighteenth fiscal period and ¥1,024 million for the nineteenth fiscal period
have been assumed for property management fees and facility management fees (property management andbuilding maintenance fees, etc.).
-11-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Operating Expenses

 An amount of ¥853 million for the eighteenth fiscal period and ¥922 million for the nineteenth fiscal period
have been assumed for taxes and public dues (property tax and city-planning tax, etc.).
 An amount of ¥1,781 million for the eighteenth fiscal period and ¥1,786 million for the nineteenth fiscal period
have been assumed for depreciation expense.
 An amount of ¥164 million for the eighteenth fiscal period and ¥165 million for the nineteenth fiscal period
have been assumed for repairs, maintenance and renovation expenses.
Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by the asset
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 estimatedamounts due to unforeseen circumstances or emergencies.
 In general, property tax and city planning tax are allocated to the seller and purchaser on a pro rata basis at thetime of acquisition settlement. In the case of the Investment Corporation, an amount equivalent to the portion
allocated to the purchaser is included in the acquisition price of the property.

Non-Operating Expenses

 The Investment Corporation is assumes issuance costs are ¥180million. These costs over a period of three years
using the straight-line method.
 Interest payable (including financing related expenses etc.) of ¥1,337 million is assumed for the eighteenthfiscal period and ¥1,291million is assumed for nineteenth fiscal period

Extraordinary Profit/Loss
Debt Financing and Investment
Corporation Bonds

 Extraordinary profit/loss is not assumed.
 The balance of the borrowings and the investment corporation bonds as of December 12, 2013 are ¥142,458
million and ¥6,300 million, respectively.
 Of the borrowings as of December 12, 2013, a total of ¥16,211.5 million in borrowings are due during theeighteenth fiscal period. However, precondition is based on other than all borrowings are presupposed to berefinanced excluding ¥211.5 million of the partial payment and credit ¥1,800 million to repay part of theexisting borrowings from funds raised through the issuance of new investment units and all remaining amountwill be refinanced. The total borrowing amount due during the nineteenth fiscal period is ¥23,611.5 million,
which assumes all borrowings will be refinanced after excluding ¥211.5 million of scheduled repayments.
 Forecasts are based on the assumption that there will be no maturity for Corporate Bonds during eighteenth andnineteenth fiscal period.

Investment Units Issued andOutstandingRegarding the number of issued investment units, the aggregate number of its investment units issued andoutstanding to be 332,540 units consisting of (a) 286,550 investment units issued and outstanding as of
October 31, 2013, (b) 45,990 new investment units issued, which is comprised of (i) 43,800 new investment
units issued in a capital increase through public offering and (ii) 2,190 new investment units issued through athird-party allotment in connection with a secondary offering..
 The Investment Corporation assumes that there will be no additional changes to the issued and outstanding
investment units for the eighteenth and nineteenth fiscal periods other than the abovementioned issuance of
45,990 investment units.

Distributions per Unit Distributions per unit are calculated in accordance with the distribution policy outlined in the Investment
Corporation’s Articles of Incorporation.
 Actual distributions per unit may differ significantly from forecasted figures due to a variety of reasons
including movements in investment assets, rental revenues impacted by tenant movements or the incidence ofmajor 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 andin real estate and other markets.

-12-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

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

Seventeenth Fiscal Period(As of April 30, 2013)(As of October 31, 2013)ASSETS
Current assets
Cash and deposits

8,053,394

4,560,384

Cash and deposits in trust

6,760,531

6,892,601

Accounts receivable-trade

185,046

254,058

Prepaid expenses

53,674

63,341

Consumption Taxes receivable
Other
Total current assets-

100,158

22,826

165,092

15,075,474

12,035,636

Noncurrent assets
Property, plant and equipment
Buildings

15,830,843

15,901,982

Accumulated depreciation‐2,627,418‐2,887,815

Buildings, net

13,203,424

13,014,167

Structures

23,001

23,371

Accumulated depreciation‐7,851‐8,560

Structures, net

15,14914,811

Machinery and equipment

355,857

365,230

Accumulated depreciation‐117,300‐127,543

Machinery and equipment, net

238,556

237,687

Tools, furniture and fixtures

79,157

79,157

Accumulated depreciation‐31,020‐34,131

Tools, furniture and fixtures, net

48,13745,02630,513,666

30,513,666

84,385,141

87,645,999

Accumulated depreciation‐14,305,758‐15,632,614

Buildings in trust, net

70,079,382

72,013,385

249,921

256,376

Accumulated depreciation‐101,166‐109,292

Structures in trust, net

148,754

147,083

Machinery and equipment in trust

1,201,938

1,401,046

Accumulated depreciation‐565,226‐604,831

Machinery and equipment in trust, net

636,711796,215

Tools, furniture and fixtures in trust

367,590376,678

Accumulated depreciation‐210,952‐226,002

Tools, furniture and fixtures in trust, net

156,637

150,676

175,189,078

184,832,979

Land
Buildings in trust*2

Structures in trust

Land in trust
Construction in progress in trust

6,699

4,914

290,236,199

301,770,613

Leasehold right

285,350

285,350

Leasehold right in trust

71,75670,981

Total property, plant and equipment
Intangible assets

Right of using water facilities in trust
Total intangible assets

434

316

357,540

356,647896,655

1,106,339

Investments and other assets
Investment securities-13-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
10,00010,000

Lease and guarantee deposits
Lease and guarantee deposits in trust

123,712124,005

Long-term prepaid expenses

1,402,489

1,270,206

Others

6,244

25,171

2,439,101

2,535,722

293,032,841

304,662,983

Investment corporation bond issuance costs

26,04335,650Investment unit issuance expenses

37,806

18,903

Total investments and other assets
Total noncurrent assets
Deferred assets

Total deferred assets
Total assets

63,84954,553308,172,165

316,753,174(Thousands of Yen)
Sixteenth Fiscal Period

Seventeenth Fiscal Period(As of April 30, 2013)(As of October 31, 2013)

Liabilities
Current Liabilities
Accounts payable

654,666

628,621

Short-term loans payable

5,700,000

9,100,000

Current portion of investment corporation bond

1,500,000-

Current portion of long-term loans payable

24,300,000

37,700,000

Accounts payable-other

208,564

181,547

Accrued expenses

160,587

152,485775

829

Income taxes payable
Accrued consumption taxes

204,666

49,260

Advances received

1,686,455

1,506,617

Deposits received
Total current liabilities

16,967

6,162

34,432,683

49,325,524

Noncurrent liabilities
Investment corporation bond

4,500,000

6,300,000

Long-term loans payable

106,369,500

97,458,000

Tenant leasehold and security deposits

1,723,402

1,700,807

Tenant leasehold and security deposits in trust

10,493,518

11,187,617

Total noncurrent liabilities

123,086,420

116,646,424

157,519,104

165,971,948

147,153,820

147,153,820

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

497,042795,928

Total voluntary reserve

497,042795,928

Unappropriated retained earnings(undisposed loss)

3,002,198

2,831,476

Total surplus

3,499,241

3,627,405

150,653,061

150,781,225

150,653,061

150,781,225

308,172,165

316,753,174

Total unitholders' equity
Total net assets*1

Total liabilities and net assets-14-

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

Seventeenth Fiscal Period

November 1, 2012 to

May 1, 2013 toApril 30, 2013

October 31, 2013

Operating revenue
Rent revenue-real estate*18,217,881

8,237,001

Other lease business revenue*1

1,088,205

1,264,698

Gain on sales of real estate properties*2

462,043

234,506

99,16882,9839,867,299

9,819,190

4,740,083

4,845,826

Asset management fee

553,018

549,899

Directors' compensation

7,800

7,800

Asset custody fee

18,73518,786

Administrative service fees

50,73750,440

Audit fee

10,80010,800

Dividends income
Total operating revenue
Operating expenses
Expenses related to rent business*1

Other operating expenses

84,473

94,850Total operating expenses

5,465,649

5,578,403

4,401,650

4,240,787

Interest income

557

565

Dividends and redemption-prescription

1,693

1,499

-

62

2,251

2,127

Interest expenses

984,520

988,658

Interest expenses on investment corporation bonds

62,20662,019Borrowing related expenses

315,050

321,587

6,626

6,142

Operating income
Non-operating income

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

Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses

18,90318,903Other

13,18912,622

1,400,496

1,409,933

Ordinary income

3,003,404

2,832,981

Income before income taxes

3,003,404

2,832,981

1,338

1,516

Total non-operating expenses

Income taxes-current
Income taxes-deferred

‐9

‐11

Total income taxes

1,329

1,504

3,002,075

2,831,476

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

-15-

122

-

3,002,198

2,831,476

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

Seventeenth Fiscal Period

November 1, 2012 to

May 1, 2013 toApril 30, 2013

October 31, 2013

Unitholders' equity
Unitholders' capital
Balance at the start of current period

147,153,820

147,153,820--

147,153,820

147,153,820

225,795

497,042

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

Surplus
Voluntary reserve
Reduction entry
Balance at the start of current period
Changes of items during the period
Provision of reserve for reduction entry

271,247

298,885

Total changes of items during the period

271,247

298,885

497,042795,928

225,795

497,042

Provision of reserve for reduction entry

271,247

298,885

Total changes of items during the period

271,247

298,885

497,042795,928

3,009,927

3,002,198

Provision of reserve for reduction entry‐271,247‐298,885

Distribution from surplus‐2,738,558‐2,703,312

Net income

3,002,075

2,831,476‐7,729‐170,721

3,002,198

2,831,476

3,235,723

3,499,241--

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

Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the start of current period
Changes of items during the period

Total changes of items during the period
Balance at the end of current period
Total Surplus
Balance at the start of current period
Changes of items during the period
Provision of reserve for reduction entry
Distribution from surplus‐2,738,558‐2,703,312

Net income

3,002,075

2,831,476

Total changes of items during the period

263,517

128,164

3,499,241

3,627,405

150,389,544

150,653,061

Distribution from surplus‐2,738,558‐2,703,312

Net income

3,002,075

2,831,476

Total changes of items during the period

263,517

128,164

150,653,061

150,781,225

150,389,544

150,653,061‐2,738,558‐2,703,312

Balance at the end of current period
Total unitholders' equity
Balance at the start of current period
Changes of items during the period

Balance at the end of current period
Total net assets
Balance at the start of current period
Changes of items during the period
Distribution from surplus-16-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
3,002,075
2,831,476

Net income
Total changes of items during the period
Balance at the end of current period-17-

263,517

128,164

150,653,061

150,781,225

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

Sixteenth Fiscal Period(November 1, 2012 to April 30, 2013)(May 1, 2013 to October 31, 2013)

I. Retained earnings at the end of period

3,002,198,217

2,831,476,705

II. Total Distribution

2,703,312,700

2,665,488,100(Distribution per Unit)
III. Voluntary retained earnings (provision)(9,434)(9,302)

Provision for reserve for reduction entry

298,885,517

165,821,852-

166,753

In accordance with the policy depicted in Article

In accordance with the policy depicted in Article

35-1 of its Articles of Incorporation, the Investment

35-1 of its Articles of Incorporation, the Investment

Corporation determines that the amount ofCorporation determines that the amount of

distribution shall exceed the amount equivalent to

distribution shall exceed the amount equivalent to

90% of its distributable profit as stipulated in Article

90% of its distributable profit as stipulated in Article

67-15 of the Special Taxation Measures Law, and67-15 of the Special Taxation Measures Law, andshall be up to the amount of its profits as the ceiling.

shall be up to the amount of its profits as the ceiling.

Following this policy, the Investment Corporation

Following this policy, the Investment Corporation has

has decided that, of the amount remaining after thedecided that, of the amount remaining after the

reserve for reduction entry as stipulated in Article

reserve for reduction entry as stipulated in Article66-2 of the Special Taxation Measures Law is66-2 of the Special Taxation Measures Law isdeducted from unappropriated retained earnings, it

deducted from unappropriated retained earnings, it

shall distribute the maximum amount of retained

shall distribute the maximum amount of retained

earnings at the period-end, namely totalingearnings at the period-end, namely totaling¥2,703,312,700 to 286,550 units issued and¥2,665,488,100 to 286,550 units issued andoutstanding.
Procedures for the distribution of amounts

outstanding.
Procedures for the distribution of amounts

exceeding distributable income are outlined inexceeding distributable income are outlined in Article

Article 35-2 of the Investment Corporation’s

35-2 of the Investment Corporation’s Articles of

Articles of Incorporation. In its fiscal period under

Incorporation. In its fiscal period under review, thereview, the Investment Corporation has decided not

Investment Corporation has decided not to distributeto distribute cash in excess of distributable profit.

cash in excess of distributable profit.

IV. Retained Earnings brought forward to
the next period
Method of calculating the distribution
amount-18-

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

Sixteenth Fiscal Period

Seventeenth Fiscal Period

November 1, 2012 to April 30, 2013

May 1, 2013 to October 31, 2013

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

3,003,404

2,832,981

Depreciation and amortization

1,662,015

1,696,848

5,193

10,114

293,743

301,667

Loss on retirement of noncurrent assets
Amortization of long-term prepaid expenses
Interest income

-557

-565

Interest expenses

1,046,727

1,050,677

Amortization of investment unit issuance expenses

18,90318,903

Amortization of investment corporation bond issuance expenses

6,626

6,142

240,699-69,011--100,158

Decrease (increase) in prepaid expenses

21,962-9,666

Increase (decrease) in accounts payable-107,777

114,262

Decrease (increase) in accounts receivable-trade
Decrease (increase) in consumption taxes refund receivable

Increase (decrease) in accounts payable-other

4,959-5,240

Increase (decrease) in accrued consumption taxes

68,322-155,406

Increase (decrease) in advances received

203,592-179,837

Increase (decrease) in deposits received-1,996-10,804

2,641,181

1,672,153

Decrease (increase) in long-term prepaid expenses-121,699-169,383

Other, net-27,423-22,908

8,957,876

6,980,767

557

565

-1,076,959-1,056,257-1,091-890

7,880,383

5,924,184

Purchase of property, plant and equipment-2,116,959-100,404

Purchase of property, plant and equipment in trust-743,209-14,989,870--202,400

Payments of tenant leasehold and security deposits-83,564-41,444

Proceeds from tenant leasehold and security deposits

226,044

33,392

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

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

Purchase of investment securities

Payments of tenant leasehold and security deposits in trust-1,325,815-581,653

Proceeds from tenant leasehold and security deposits in trust

413,440

1,127,796--94,091

569,850

32,279Payments of restricted bank deposits in trust
Proceeds from restricted bank deposits in trust

-

-293

-3,060,211-14,816,688

Increase in short-term loans payable

1,200,000

7,900,000

Decrease in short-term loans payable-1,200,000-4,500,000

Proceeds from long-term loans payable

9,000,000

11,700,000

Repayment of long-term loans payable-7,211,500-7,211,500

Proceeds from issuance of investment corporation bonds-

1,784,249

Redemption of investment corporation bonds--1,500,000-2,738,824-2,702,998

Net cash provided by (used in) financing activities-950,324

5.469,750

Net increase (decrease) in cash and cash equivalents

3,869,847-3,422,753

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

Dividends paid

-19-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

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

*

-20-

10,501,755

14,371,602

14,371,602

10,948,849

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

Securities
Other securitiesThose with no fair value
Cost method through moving-average method
A method of incorporating the amount of equity equivalent to the portion that corresponds
to the net gain/loss of silent partnership is employed for the investments in silent
partnership.

2. Depreciation of fixed assets(1) Property, plant and equipment (includes trust assets)
The straight-line method is applied.
Useful lives of the assets ranging are as follows:
Buildings: 2 to 49 years
Structures: 2 to 45 years
Machinery and equipment: 3 to 17 years
Tools, furniture and fixtures: 3 to 20 years(2) Intangible assets (includes trust assets)
The straight-line method is applied.
Right of using water facilities: 6 years
Leasehold rights
Fixed term leasehold is amortized over a contractual period of 48 years and 9 months under thestraight-line method.
(3) Long-term prepaid expenses
The straight-line method is applied.

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

4. Accounting standards for revenues and expenses

Accounting method for property tax
Property-related taxes including property taxes and city planning taxes, etc. are imposed on
properties on a calendar year basis. These taxes are generally charged to rental expenses for theperiod, for the portion of such taxes corresponding to said period.
In connection with the acquisition of real estate including trust beneficiary interests in real estate during
the fiscal period under review, the Investment Corporation included it’s pro rata property portion forthe year in each property acquisition price and not as rental expense. The amount of property taxes
included in acquisition prices for the previous fiscal period amounted to ¥10,264 thousand and for the
fiscal period under review amounted to ¥26,946 thousand.

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

-21-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its risk management
policies with the objective of hedging risks in accordance with its Articles of Incorporation.
(4) Method of evaluating the effectiveness of hedging
During the period from the commencement of hedging to the point at which effectiveness is
assessed, the Investment Corporation compares the cumulative total of market changes in thetargeted objects of hedging or cash flow changes with the cumulative total of market changes in thehedging 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 and interest-rate cap agreements that meet the criteria for special
treatment, the evaluation of effectiveness are omitted.
6. The scope of cash and cash equivalents on statements ofcash flows

For the purpose of cash flow statements, cash and cash equivalents consist of cash on hand, deposits
received that can be withdrawn on demand, and short-term investments with original maturities of 3
months or less, that are readily convertible to known amounts of cash and present insignificant riskof a change in value.

7. Other significant accounting policies utilized in the
preparation of financial statements(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities as well as revenues and expenses of financial assets held in the form of trust
beneficiary interests in real estate and other assets are recorded in full in the Investment
Corporation’s balance sheets and statements of income.
Important line items included in accounting for financial assets and liabilities in the Investment
Corporation’s balance sheet are as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixturesin trust, land in trust and construction in progress in trust
3. Leasehold rights in trust, right of using water facilities in trust
4. Lease and guarantee deposits in trust
5. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption taxes are separately recorded. Non-deductible consumption taxes applicable to theacquisition of assets are included in the cost of acquisition for each asset.

-22-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(8)【Notes to the Financial Statements】（Notes to the Balance Sheets）*1.

Minimum unitholders’ equity pursuant to Article 67-4 of the Law Concerning Investment Trusts and Investment Corporations Law(Thousands of Yen)
Sixteenth Fiscal Period(as of April 30, 2013)

Seventeenth Fiscal Period(as of October 31, 2013)
50,000*2.

50,000

The amount of advanced depreciation of property, plant and equipment acquired by government subsidy(Thousands of Yen)
Sixteenth Fiscal Period(as of April 30, 2013)
Building in trust

Seventeenth Fiscal Period(as of October 31, 2013)
26,230-23-

26,230KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Statements of Income）*1. Breakdown of real estate rental business profit and loss

(Thousands of Yen)
Sixteenth Fiscal Period

Seventeenth Fiscal Period

November 1, 2012 to April 30, 2013

May 1, 2013 to October 31, 2013

A. Rental and other operating revenues
Rental revenues
6,628,332

Leasing income

6,649,670

1,589,549

1,587,331

8,217,881

8,237,001

Parking space rental revenues

292,402299,883

Utility charge reimbursement

681,271

851,380

Miscellaneous

114,531

113,434

Subtotal

1,088,205

1,264,698

9,306,086

9,501,700

Property management fees and facility management fees

951,904

951,025

Utilities

753,048

928,822

Taxes

820,157

851,090

Repairs and maintenance costs

322,651

173,603

Insurance

14,837

14,371

Common area charges
Total
Other rental revenues

Total rental and other operating revenues
B. Rental and other operating expenses
Rental expenses

Trust fees

42,92542,376

Others167,349

177,574

Depreciation
Loss on retirement of fixed assets

1,662,015

1,696,848

5,193

10,114

Total rental and other operating expenses

4,740,083

4,845,826

4,566,003

4,655,873

C. Rental business profit (A – B)
*2. Gain and Loss on sale of real estate
Sixteenth Fiscal Period (November 1, 2012 to April 30, 2013)(Thousands of Yen)
(1) Kanazawa Nikko Building
Revenue from sale of the investment property
780,000
Costs of the investment property

677,861

Other sales’ expenses

21,300Gain on sale of real estate properties

80,838(2) KDX Yotsuya Building
Revenue from sale of the investment property

2,400,000

Costs of the investment property

1,963,319

Other sales’ expenses

55,474Gain on sale of real estate properties

381,205

Seventeenth Fiscal Period (May1, 2013 to October 31, 2013)(Thousands of Yen)
Ikebukuro Nikko Building
1,970,000

Revenue from sale of the investment property-24-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

1,672,153

Costs of the investment property
Other sales’ expenses

63,340Gain on sale of real estate properties

234,506（Notes to the Statements of Changes in Unitholders’ Equity）*Total number of authorized investment units and total number of investment units issued and outstanding
Sixteenth Fiscal Period

Seventeenth Fiscal Period

November 1, 2012 to April 30, 2013

May 1, 2013 to October 31, 2013

Total number of authorized investment units

2,000,000 units

2,000,000 units

Total number of investment units issued and outstanding

286,550 units

286,550 units（Notes to the Statements of Cash Flow）* Reconciliation of balance sheet items to cash and cash equivalents at end of period in the cash flows statements(Thousands of Yen)
Sixteenth Fiscal Period

Seventeenth Fiscal Period

November 1, 2012 to April 30, 2013

May 1, 2013 to October 31, 2013

Cash and deposits

8,053,394

4,560,384

Cash and deposits in trust

6,760,531

6,892,601

Restricted bank deposits held in trust (Note)- 442,323- 504,136

Cash and cash equivalents

14,371,602

10,948,849

Note: Restricted bank deposits held in trust are retained for repayment of tenant leasehold and security deposits held in trust.
（Notes to the Lease Transactions）
Operating lease transactions(Lessor)(Thousands of Yen)
Sixteenth Fiscal Period(as of April 30, 2013)

Sixteenth Fiscal Period(as of October 31, 2013)

Unearned lease payments
Due within one year

922,114

1,492,005

Due after one year

4,563,856

6,790,392

Total

5,485,971

8,282,398（Notes to the Financial Instruments）
1. Items with Regard to the current status of Financial Instruments(1) Action Policy with Regard to Financial Instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bank loans and theissuance of corporate bonds and new investment accounts. The Investment Corporation makes use of derivative instruments primarily as a risk hedge againstinterest rate fluctuations and to lessen interest-rate payments. In addition, it is company policy to not conduct speculative derivative transactions. Managementof surplus funds is undertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Financial Instruments and Respective Risks
Investment securities are preferred equity securities of TMK as set forth by the Act on Securitization of Assets and TK interests are exposed to credit risk of
the issuer and risk of fluctuation of value of real estate, etc.
Loans and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a
maximum of 7 years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risks, the Investment
Corporation utilizes derivative instruments (interest-rate swap transactions) in order to hedge against such risks.
Derivative instruments are interest-rate swap and interest-rate cap transactions that are used to hedge against interest rate fluctuation risks. Utilizing
interest-rate swap transactions, the Investment Corporation fixed its interest payments for funds procured on a floating interest rate basis or minimizing therisk of interest rate increase. With regard to hedge accounting methods, hedging instruments and hedged items, hedge policy, and the method of evaluation ofhedge effectiveness, please see 5. Hedge Accounting Method in notes concerning Important Accounting Standards.

-25-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in Interest Rates and Others)
The Investment Corporation uses interest-rate swap and interest-rate cap transactions in order to minimize risks associated with interest payment rate fluctuations
on funds procured.
The Investment Corporation will periodically grasp the value of real estate, etc. and financial condition, etc. of the issuer with regard to investment securities.
B. Management of Liquidity Risk (Risk of Defaulting on Payments by the Due Date) Associated with Funds Procurement
Although loans and other liabilities are subject to liquidity risks, the Investment Corporation reduces such risks by spreading out payment due dates and byusing diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplemental Explanation of Items with Regard to Fair Value of Financial Instruments
Included in the fair value of financial products are market prices, or, in the event market prices are not available, prices that are calculated on a rational basis.
Because the factors incorporated into the calculation of these prices are subject to change, differing assumptions are adopted which may alter fair value.
2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference are as follows. Furthermore, items whose fair values are recognized to be extremely
difficult to grasp are not included in the following table (Refer to Note 2).
Sixteenth Fiscal Period (as of April 30, 2013)
Book Value(Thousands of Yen)
Difference

Fair Value(1) Cash and deposits

8,053,394

8,053,394-(2) Cash and deposits in trust

6,760,531

6,760,531-

Total assets

14,813,926

14,813,926-(1) Short-term loans payable

5,700,000

5,700,000-(2) Investment corporation bonds(3) Long-term loans payable
Total liabilities

6,000,000

5,974,800-25,200

130,669,500

130,858,276

188,776

142,369,500

142,533,076

163,576---

Derivative Transaction
Seventeenth Fiscal Period (as of October 31, 2013)(Thousands of Yen)
Book Value(1) Cash and deposits

Fair Value
4,560,384

Difference
4,560,384-(2) Cash and deposits in trust

6,892,601

6,892,601-

Total assets

11,452,985

11,452,985-(1) Short-term loans payable

9,100,000

9,100,000-(2) Investment corporation bonds(3) Long-term loans payable
Total liabilities

6,300,000

6,482,910

182,910135,158,000

135,751,380

593,380

150,558,000

151,334,290

776,290---

Derivative Transaction

Note 1: Items with regard to the calculation method of financial instrument fair value together with investment securities and derivative transactions.
Assets(1) Cash and deposits, (2) Cash and deposits in trust
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used to determine fair value.
Liabilities(1) Short-term loans payable
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used to determine fair value.

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

-26-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(3) Long-term loans payable
The fair value of long-term borrowings is calculated based on the present value that discounts the total amount of principal and interest by using the estimated interest rate in
the event that the Investment Corporation conducts new borrowings of the same type. Among interest rate fluctuations on long-term borrowings, said borrowings—which
are subject to fixed interest rates resulting from interest-rate swaps or interest-rate caps and special treatment applied to said swaps or caps—are calculated by discounting
the total amount of principal and interest, which is handled together with applicable interest-rate swaps or interest-rate caps, by the rationally estimated interest rate in thecase that the same type of borrowings are undertaken.
Derivative Transaction
Please refer to the following “Derivative Transaction.”
Note 2: Financial instruments whose fair values are recognized to be extremely difficult to grasp
Sixteenth Fiscal Period
Classification(as of April 30, 2013)
Investment securities *(Thousands of Yen)
Seventeenth Fiscal Period(as of October 31, 2013)
896,655

1,106,339*Fair values of preferred equity securities and TK interests are not subject to disclosure of fair value as they have no market value and their fair values are recognized to
be extremely difficult to grasp.
Note 3: Redemption schedule of monetary claims after the closing date
Sixteenth Fiscal Period (as of April30, 2013)(Thousands of Yen)

Less than or Equal
to 1 yr.

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Cash and deposits

8,053,394

-

-

-

-

-

Cash and deposits in trust

6,760,531

-

-

-

-

-

14,813,926

-

-

-

-

-

Total

Seventeenth Fiscal Period (as of October 31, 2013)(Thousands of Yen)

Less than or Equal
to 1 yr.

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Cash and deposits

4,560,384

-

-

-

-

-

Cash and deposits in trust

6,892,601

-

-

-

-

-

11,452,985

-

-

-

-

-

Total

Note 4: Investment corporation bonds, repayment of loans after the closing date, planned repayment amount
Sixteenth Fiscal Period (as of April 30, 2013)(Thousands of Yen)

Less than or Equal
to 1 yr.

1-2 yrs.

2-3 yrs.

3-4 yrs.

More than 5yrs.

4-5 yrs.

Short-term loans payable

5,700,000

-

-

-

-

-

Investment corporation bonds

1,500,000--

3,000,000

1,500,000-

Long-term loans payable

24,300,000

36,669,500

32,800,000

15,000,000

17,000,000

4,900,000(Thousands of Yen)

Seventeenth Fiscal Period (as of October 31, 2013）
Less than or Equal
to 1 yr.
Short-term loans payable
Investment corporation bonds
Long-term loans payable

1-2 yrs.

2-3 yrs.

3-4 yrs.

More than 5yrs.

4-5 yrs.

9,100,000

-

-

-

-

-

-

-

-

4,500,000

1,800,000-

37,700,000

30,558,000

30,800,000

15,000,000

14,500,000

6,600,000（Notes to the Marketable Securities）
Sixteenth Fiscal Period (as of April 30, 2013) and Seventeenth Fiscal Period (as of October 31, 2013)
Not applicable（Notes to the Derivative Transactions）(1) Items that do not apply hedge accounting
Sixteenth Fiscal Period (as of April30, 2013) and Seventeenth Fiscal Period (as of October 31, 2013) : Not applicable-27-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Items that apply hedge accounting
Sixteenth Fiscal Period (as of April 30, 2013)
Hedge accounting
methodSpecial treatment ofinterest-rate swaps

Type of Derivative Transactions

Main target risk
hedgeMore than 1 yr.

Fair Calculation method forvalue applicable fair value

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

Long-term loans
payable20,500,000

20,500,000＊

Interest-rate cap transaction

Long-term loans
payable1,000,000

1,000,000＊

21,500,000

21,500,000

Special treatment ofinterest-rate caps

(Thousands of Yen)
Contracted amount

Total(Thousands of Yen)

Seventeenth Fiscal Period (as of October 31, 2013）
Hedge accounting
methodSpecial treatment ofinterest-rate swaps
Special treatment ofinterest-rate caps

Type of Derivative Transactions

Main target risk
hedge

Contracted amountMore than 1 yr.

Fair Calculation method forvalue applicable fair value

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

Long-term loans
payable26,700,000

20,700,000※

Interest-rate cap transaction

Long-term loans
payable3,000,000

3,000,000※

29,700,000

23,700,000

Total※Special treatment of interest-rate swaps or the interest-rate caps are reported at the fair value of applicable long-term loans payable. This is because such swaps or caps
are handled together with hedged long-term loans payable.
（Notes to the Retirement Payment）
Sixteenth Fiscal Period (as of April 30, 2013) and Seventeenth Fiscal Period (as of October 31, 2013): Not applicable（Notes to the Asset Retirement Obligations）
Sixteenth Fiscal Period (as of April 30, 2013) and Seventeenth Fiscal Period (as of October 31, 2013): Not applicable（Notes to the Segment and Related Information）
1. Segment Information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment subject to disclosure.
2. Related Information
Sixteenth Fiscal Period (November 1, 2012 to April 30, 2013)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue on thestatement of income.
(2) Information about each geographic area①. Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
②. Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.
Seventeenth Fiscal Period (May1, 2013 to October 31, 2013)(1) Information about each product and service-28-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue on thestatement of income.
(2) Information about each geographic area①. Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
②. Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.
（Notes to the Tax-Effect Accounting）
1. The significant components of deferred tax assets and liabilities(Thousands of Yen)
Sixteenth Fiscal Period(as of April 30, 2013)

Seventeenth Fiscal Period(as of October 31, 2013)

Deferred tax assets
Enterprise tax payable not included in expenses

35

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

47

1,278

1,543

1,314

1,590

- 1,278- 1,54335

47

2. Significant difference between statutory income tax rate and the effective tax rate
(Unit: %)Sixteenth Fiscal Period(as of April 30, 2013)

Seventeenth Fiscal Period(as of October 31, 2013)
36.59

36.59

- 32.93- 34.43- 3.64- 2.14

Others0.03

0.03

Effective tax rate

0.04

0.05

Statutory tax rate
(Adjustments)
Deductible cash distributions
Provision of reserve for reduction entry(Notes to the Equity-Method Income and Retained Earnings)
Sixteenth Fiscal Period (as of April 30, 2013) and Seventeenth Fiscal Period (as of October 31, 2013): Not applicable（Notes to the Related-Party Transactions）
1．Parent Company, corporate unitholders and other
Sixteenth Fiscal Period (November 1, 2012 to April 30, 2013) and Seventeenth Fiscal Period (May 1, 2013 to October 31, 2013): Not applicable
2．Affiliated companies and other
Sixteenth Fiscal Period (November 1, 2012 to April 30, 2013) and Seventeenth Fiscal Period (May 1, 2013 to October 31, 2013): Not applicable
3．Fellow subsidiary companies and other
Sixteenth Fiscal Period (November 1, 2012 to April 31, 2013) and Seventeenth Fiscal Period (May 1, 2013 to October 31, 2013): Not applicable
4．Directors, individual unitholders and other
Sixteenth Fiscal Period (November 1, 2012 to April 30, 2013)-29-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Attributes

Name

Board of Directors Naokatsu
and Close Relatives UchidaBusiness Activities / Position
Executive Director for theInvestment Corporation and
CEO and President of Kenedix
Office Partners, Inc.

Ratio ofPossession of
Details of Business
Voting Rights (%)－

As above

As above

As above

As above

As above

As above

As above

As above

Payment of asset
management fee to Kenedix
Office Partners, Inc. (Note 1)
Payment of businessconsignment fee to Kenedix
Office Partners, Inc. (Note 3)
Payment of property
management fee to Kenedix
Office Partners, Inc. (Note 5)

Deal
Balance ofAmountAccounting
Period End(¥Thousands
Term(¥Thousands))
579,018

Accounts

110,168(Note 2)

Payable(Note 4)(Note 4)-other

1,500

－

－

Accounts
Payable82,363(Note 4)
349,715(Note 4)(Note 4)

Notes:
1. Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
2. Asset management fee include ¥10,100 thousand fee related to the acquisition of property are accounted in book value for the individual real estate and ¥15,900
thousand sales fee related to the sale of property are accounted for in the sales expense for the individual real estate.
3. Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the agreement, “Operating Agency
Agreement” between the Investment Corporation and Kenedix Office Partners, Inc.
4. Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5. Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the agreement, “Property Management
Agreement” between the Investment Corporation and Kenedix Office Partners, Inc. Property management fee include ¥21,874 thousand related to theacquisition of property are accounted in book value for the individual real estate and ¥3,800 thousand sales fee related to the sale of property are accounted for in
the sales expense for the individual real estate.
Seventeenth Fiscal Period (May 1, 2013 to October 31, 2013)
Attributes

Name

Board of Directors Naokatsu
and Close Relatives UchidaBusiness Activities / Position
Executive Director for theInvestment Corporation and
CEO and President of Kenedix
Office Partners, Inc. (Note 6)

Ratio ofPossession of
Details of Business
Voting Rights (%)－

As above

As above

As above

As above

As above

As above

As above

As above

Payment of asset
management fee to Kenedix
Office Partners, Inc. (Note 1)
Payment of businessconsignment fee to Kenedix
Office Partners, Inc. (Note 3)
Payment of property
management fee to Kenedix
Office Partners, Inc. (Note 5)

Deal
Balance ofAmountAccounting
Period End(¥Thousands
Term(¥Thousands))
625,499

Accounts

92,022(Note 2)

Payable(Note 4)(Note 4)-other1,500(Note 4)362,457(Note 4)－－

Accounts
Payable69,683(Note 4)

Notes:
1. Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
2. Asset management fee include ¥65,750 thousand fee related to the acquisition of property and TK interests are accounted in book value for the individual realestate and ¥9,800 thousand sales fee related to the sale of property are accounted for in the sales expense for the individual real estate.
3. Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the agreement, “Operating Agency
Agreement” between the Investment Corporation and Kenedix Office Partners, Inc.
4. Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5. Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the agreement, “Property Management
Agreement” between the Investment Corporation and Kenedix Office Partners, Inc. Property management fee include ¥33,652 thousand related to theacquisition of property are accounted in book value for the individual real estate and ¥2,000 thousand sales fee related to the sale of property are accounted for in
the sales expense for the individual real estate.
6. Kenedix Residential Partners, Inc. succeeded to the business of Kenedix Advisors, Inc. and Kenedix Office Partners, Inc. as of October 1, 2013, and changed
corporate name to Kenedix Real Estate Fund Management, Inc. Furthermore, Ryosuke Homma appointed as CEO and President of Kenedix Real Estate FundManagement, Inc., as of October 1, 2013. The deal amount and the balance of period end are showing the Seventeenth Fiscal Period of amounts, which deal
with Kenedix Office Partners, Inc. and after October 1, 2013 with Kenedix Real Estate Fund Management, Inc.

-30-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Fair Value of Real Estate for Rental Purposes）
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenue.
The book value per balance sheet for the fiscal period under review and fair value concerning the above real estate for rental purposes are as follows.
(Thousands of Yen)
Sixteenth Fiscal Period

Seventeenth Fiscal Period

November 1, 2012 to April 30, 2013

May 1, 2013 to October 31, 2013

Book Value (Thousands of Yen)
Balance at the beginning of period

292,021,269

290,593,740

Changes during the period-1,427,528

11,533,520

Balance at the end of current period

290,593,740

302,127,261

Fair value at the end of current period
264,961,000
279,238,000
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period under review is the appraisal value determined by outside appraisers. Ikebukuro Nikko Building is calculated basedon the sales price of ¥1,970 million under the sales and purchase agreement dated March 21, 2013.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the fifteenth fiscal period, principal increases were the acquisition of realestate trust beneficiary interests to 1 property totaling ¥2,108,384 thousand, the sale of real estate trust beneficiary interests to 2 properties amounting¥2,641,181 thousand and depreciation amounting to ¥1,662,015 thousand and principal increases were the acquisition of real estate to 3 properties totaling¥14,020,278 thousand, the sale of real estate trust beneficiary interests to 1 property amounting ¥1,672,153 thousand and depreciation amounting to¥1,696,848 thousand and for the fiscal period under review.
Income and loss for real estate for rental purposes is listed in Notes to the Statements of Income.
(Notes to the Information per Unit)
Sixteenth Fiscal Period

Seventeenth Fiscal Period

November 1, 2012 to April 30, 2013

May 1, 2013 to October 31, 2013

Unitholders’ Equity per Unit

¥525,747¥526,195

Net Income per Unit

¥10,476¥9,881

Note 1: Net Income per Unit is calculated by dividing Net Income by the weighted average (based on number of days) number of units. Net income per unit after
adjusting for residual units is not included because there were no residual investment units.
Note 2: The calculation for the net income per unit is as follow.
Sixteenth Fiscal Period

Seventeenth Fiscal Period

November 1, 2012 to April 30, 2013

May 1, 2013 to October 31, 2013

Net Income (Thousands of Yen)
Amount not vested in ordinary investors(Thousands of Yen）
Net income for ordinary units(Thousands of Yen)
Average number of units during the period(unit)

3,002,075

2,831,476--

3,002,075

2,831,476

286,550

286,550（Important Subsequent Events）
Issuance of the New Investment Units
On October 24, 2013 and November 6, 2013, the Board of Directors of the Investment Corporation resolved to issue new investment units as detailed below. The
payments were completed on November 13, 2013 through issuance of public offering, and the payments were completed on December 10, 2013 through issuance of third–party allotment. As a result of the issuance of new investment units, the Investment Corporation had total unitholders’ capital of ¥166,261,745,670 with 332,540
investment units outstanding as of December 10, 2013.
(Issuance of New Investment Units through Public Offering)Issuance of New Investment Units：43,800 units (Japanese Offering 21,900 units, International Offering 21,900 units)

Issue Price（Offer Price）：¥430,950 per unit

Aggregate Issue Price (Total Offer Price)：¥18,875,610,000

Issue Amount (Paid - in Value)：¥415,480 per unit

Total Issue Amount (Aggregate Paid - in Value)：¥18,198,024,000

Payment Date

：November 13, 2013-31-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Issuance of New Investment Units through Third-Party Allotment）
Issuance of New Investment Units：2,190 units

Issue Amount (Paid - in Value)：¥415,480 per unit

Total Issue Amount (Aggregate Paid - in Value)：¥909,901,200

Payment Date

：December 10, 2013

Allottee：Nomura Securities Co. Ltd.

(Use of Funds)
The funds from the Japanese Offering and International Offering, allocated as a portion of the funds for the acquired properties in Eighteenth Fiscal Period andresidual amounts allocated as a portion of the funds for the repayment of borrowings alongside the acquisition of assets acquired in the Seventeenth Fiscal Period.
Furthermore, because cash on hand was allocated as a portion of the funds for the acquisition of properties acquired in the Seventeenth Fiscal Period, the funds
from the issuance of new Investment Units by third – party allotment are allocated to as proceed to compensate for the decrease of cash on hand resulting from theallocation.
（9）Movements in Investment Units Issued and Outstanding
Movements in the number of investment units issued and outstanding and unitholders’ capital since first fiscal periods are summarized in the following table.

Settlement Date

Particulars

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

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

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)400
400
75,00075,4003,970
79,37073,660153,030
3,970
157,000
40,900
197,900
2,100
200,000
33,550233,550
51,400284,950
1,600
286,550

Unitholders’ Capital(Millions of Yen)
Increase
Balance(Decrease)200
200
41,86842,0682,216
44,28542,17186,4562,272
88,72934,474
123,203
1,770
124,973
8,156
133,129
13,600146,730
423
147,153

Remarks(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)Notes:
1. The Investment Corporation was established with an offer price of ¥500,000 per unit.
2. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥580,000 per unit with an underwritten price of ¥558,250 per unit.
3. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥558,250 per unit.
4. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥593,096 per unit with an issue price of ¥572,519 per unit.
5. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥572,519 per unit.
6. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties and repayment of borrowings. The offer price was ¥873,180 per unit with an issue price of ¥842,886 per unit.
7. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties and repayment of borrowings. The issue price was ¥842,886 per unit.
8. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥252,200 per unit with an issue price of ¥243,100 per unit.
9. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥274,510 per unit with an issue price of ¥264,605 per unit.
10. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for the
repayment of borrowings. The issue price was ¥264,605 per unit.
4. Resignation/Appointment of the Directors(1) Resignation/Appointment of the Investment Corporation Directors
Not applicable-32-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Resignation/Appointment of the Asset Management Company
Kenedix Residential Partners, Inc. succeeded the business of Kenedix Advisors, Inc. and Kenedix Office Partners, Inc. in a merger as of October 1, 2013 andchanged its corporate name to Kenedix Real Estate Fund Management, Inc. on the same date.
All Directors and Auditors for Kenedix Residential Partners, the surviving entity in the merger, resigned as of September 30, 2013 and four directors and threeauditors have been appointed and have newly taken office, as of October 1, 2013. Also, the Board of Directors meeting of the Asset Management Company heldon October 1, 2013 resolved to approve the appointment of Ryosuke Homma as CEO and President, Naokatsu Uchida as Director and COO, KRI General
Manager of Fund Division and Akira Tanaka as Director and COO, KDR General Manager of Fund Division, respectively.
(1) New Appointment of Directors (As of October 1, 2013)CEO and President: Ryosuke Homma
Director: Akira Tanaka (Director and COO, KDR General Manager of Fund Division)
Director: Naokatsu Uchida (Director and COO, KRI General Manager of Fund Division)
Director: Masahiko Tajima(2) Retirement of Directors (As of September 30, 2013)
Director: Akira Tanaka
Director: Naoto Kojima
Director: Akihiro Nakao(3) New Appointment of Statutory Auditors (As of October 1, 2013)
Statutory Auditor (part-time): Haruo Funabashi
Statutory Auditor (part-time): Ninji Hayashi
Statutory Auditor (part-time): Shintaro Kanno(4) Retirement of Statutory Auditor (As of September 30, 2013)
Statutory Auditor (part-time): Moyuru Watanabe-33-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Reference Information（1）Component of Assets
Sixteenth Fiscal Period(as of April 30, 2013)

Type of

Type

Specified Asset

Real Estate

Area

Total Amount Held

Ratio

Total Amount Held

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

Tokyo Metropolitan Area

Office Buildings

Seventeenth Fiscal Period(as of October 31, 2013)

32,176

Other Regional Areas

10.4

32,06810.1

12,127

3.9

12,041

3.8

44,30414.4

44,11013.9

44,30414.4

44,110

13.9

Tokyo Metropolitan Area

187,40960.8

189,380

59.8

Other Regional Areas

38,833

12.6

38,87712.3

226,24373.4

228,258

72.1

Tokyo Metropolitan Area

6,049

2.0

5,994

1.9

Other Regional Areas

1,766

0.6

1,745

0.6

7,815

2.5

7,739

2.4

12,2304.0

22,0187.0

12,2304.0

22,0187.0

246,28979.9

258,016

81.5

Investment Securities (Note 3)

896

0.3

1,106

0.3

Bank Deposits and Other Assets

16,681

5.4

13,519

4.3

Total Assets

308,172100.0

316,753

100.0

Total for Office Buildings
Total for Real Estate
Office Buildings
Total for Office Buildings
Trust Beneficiary

Residential Properties

Interest in Real Estate

Total for Residential Properties
Central Urban RetailTokyo Metropolitan Area

Properties

Total for Central Urban Retail Properties
Total of Trust Beneficiary Interests in Real Estate

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 ¥1 million.
2. “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
3. The preferred equity securities issued by Senri Property TMK and silent partnership interests in a silent partnership operated by G.K. KRF 31

Sixteenth Fiscal Period(as of April 30, 2013)
Price (Millions of Yen)
Total of Liabilities

Seventeenth Fiscal Period(as of October 31, 2013)

Ratio (%)

157,519

Price (Millions of Yen)
51.1

Ratio (%)

165,971

52.4

Total Unitholders’ Equity

150,65348.9

150,78147.6

Total of Assets

308,172100.0

316,753

100.0(2) Details of Investment Assets
A. Major components of investment securities
Type of Assets
Preferred Equity
Securities

Name

Number ofBook Value

Evaluation Value (Note 1)

Ratio (%)

Units

(Millions of Yen)

(Millions of Yen)

(Note 2)Senri Property TMK Preferred
Securities

17,820

896

896

0.3

-

209

209

0.1

(Note 3)

Silent Partnership

Godo Kaisha KRF31 Silent Partnership

Equity Interest

Equity Interest (Note 4)

Notes:
1. Book value is stated for the evaluation value.
2. “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
3. Type of specified asset is the trust beneficiary interest in real estate of Senri Life Science Center Building.
4. Type of operating asset is the trust beneficiary interest in real estate of DNI Mita Building.

-34-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

B. Properties Roster(a) The Price of the Investment Properties and the Investment Ratio(Unit: Millions of Yen)
Appraisal Value at the end of Seventeenth Fiscal Period

Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Acquisition
Price（Note 1）

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-1

KDX Nihonbashi 313 Building

5,940

6,030

6,470

6,750

4.6

6,350

4.4

4.8

B

1.9

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,281

4,780

4,850

4.9

4,710

4.6

5.0

A

1.4

A-4

KDX Hatchobori Building

3,680

3,421

3,390

3,480

4.9

3,350

4.7

5.1

B

1.2

A-5

KDX Nakano-Sakaue Building

2,533

2,426

2,270

2,340

5.1

2,240

4.9

5.3

B

0.8

A-6

Harajuku F.F. Building

2,450

2,424

3,030

3,060

5.4

3,000

5.2

5.6

A

0.8

A-7

FIK Minami Aoyama

2,270

2,236

2,240

2,270

4.7

2,210

4.5

4.9

A

0.7

A-8

Kanda Kihara Building

1,950

1,837

1,710

1,780

4.9

1,680

4.7

5.1

B

0.6

A-13

KDX Kojimachi Building

5,950

5,670

4,350

4,410

4.3

4,290

4.1

4.5

A

1.9

A-14

KDX Funabashi Building

2,252

2,349

1,950

1,950

6.1

1,940

5.9

6.3

A

0.7

A-15

KDX Hamacho Building

2,300

2,214

2,200

2,220

5.2

2,170

5.0

5.4

A

0.7

A-16

Toshin 24 Building

5,300

5,023

4,000

4,030

5.7

3,970

5.5

5.9

A

1.7

A-17

KDX Ebisu Building

4,640

4,533

4,200

4,230

4.7

4,160

4.4

4.9

A

1.5

A-19

KDX Hamamatsucho Building

3,460

3,186

3,160

3,260

4.5

3,110

4.3

4.7

B

1.1

A-20

KDX Kayabacho Building

2,780

2,826

2,430

2,440

5.1

2,410

4.7

5.2

A

0.9

A-21

KDX Shinbashi Building

2,690

2,676

2,380

2,400

4.6

2,350

4.1

4.7

A

0.8

A-22

KDX Shin-Yokohama Building

2,520

2,397

2,160

2,180

5.9

2,140

5.7

6.1

A

0.8

A-26

KDX Kiba Building

1,580

1,529

1,370

1,390

5.5

1,350

5.3

5.7

A

0.5

A-27

KDX Kajicho Building

2,350

2,355

2,330

2,400

4.9

2,300

4.7

5.1

B

0.7

A-28

KDX Nogizaka Building

1,065

1,111

680

686

5.3

674

5.0

5.4

A

0.3

A-29

KDX Higashi-Shinjuku Building

2,950

3,145

3,340

3,440

5.0

3,290

4.8

5.2

B

0.9

A-30

KDX Nishi-Gotanda Building

4,200

4,048

3,750

3,770

5.1

3,720

4.9

5.3

A

1.3

A-31

KDX Monzen-Nakacho Building

1,400

1,379

1,140

1,200

5.4

1,120

5.2

5.6

B

0.4

A-32

KDX Shiba-Daimon Building

6,090

6,194

4,510

4,540

4.9

4,480

4.6

5.0

A

1.9

A-33

KDX Okachimachi Building

2,000

2,099

1,850

1,880

4.9

1,830

4.8

5.1

B

0.6

A-34

KDX Hon-Atsugi Building

1,305

1,146

1,050

1,080

6.2

1,040

6.0

6.4

B

0.4

A-35

KDX Hachioji Building

1,155

1,272

979

961

5.8

987

5.6

6.0

B

0.3

A-37

KDX Ochanomizu Building

6,400

6,571

6,180

6,300

4.7

6,060

4.5

4.9

A

2.0

A-38

KDX Nishi-Shinjuku Building

1,500

1,565

1,130

1,140

5.1

1,110

4.9

5.3

A

0.4

A-39

KDX Toranomon Building

4,400

4,754

3,380

3,420

4.4

3,330

4.2

4.6

A

1.4

A-40

Toranomon Toyo Building

9,850

9,820

10,30010,500

4.5

10,000

4.3

4.8

A

3.2

A-41

KDX Shinjuku 286 Building

2,300

2,369

2,250

2,280

4.7

2,220

4.5

4.9

A

0.7

A-45

KDX Roppongi 228 Building

3,300

3,426

2,120

2,140

4.8

2,100

4.5

4.9

A

1.0

A-46

Hiei Kudan-Kita Building

7,600

7,598

7,450

7,760

4.5

7,310

4.3

4.7

B

2.4

A-47

KDX Shin-Yokohama 381 Building

5,800

5,771

4,010

4,040

5.8

3,970

5.6

6.0

A

1.9

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,704

2,990

3,020

6.1

2,960

5.7

6.3

A

1.2

A-49

Nissou Dai-17 Building

2,710

2,580

1,570

1,600

5.8

1,540

5.6

6.0

A

0.8

A-50

KDX Ikejiri-Oohashi Building (Note 6)

2,400

2,431

1,500

1,510

5.5

1,480

5.3

5.7

A

0.7

A-51

KDX Hamacho Nakanohashi Building

2,310

2,317

1,770

1,790

5.1

1,740

4.9

5.3

A

0.7

A-52

KDX Kanda Misaki-cho Building

1,380

1,368

959

976

5.1

942

4.9

5.3

A

0.4

A-55

Shin-toshin Maruzen Building

2,110

2,138

1,550

1,550

5.2

1,540

4.8

5.4

A

0.6

A-56

KDX Jimbocho Building

2,760

2,878

1,940

1,960

5.0

1,920

4.7

5.2

A

0.9

A-57

KDX Gobancho Building

1,951

1,959

1,370

1,380

4.7

1,350

4.5

4.9

A

0.6

-35-

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

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other Regional
Areas

No.

Property NameTokyo
Metropolitan
Area
Other Regional
Areas

Tokyo
Metropolitan
Area

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)KDX Iwamoto-cho Building

1,864

1,763

1,330

1,340

5.2

1,310

5.0

5.4

A

0.6

A-60

KDX Harumi Building

10,250

9,486

8,250

8,400

4.8

8,100

4.5

4.9

A

3.3

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,274

1,870

1,930

4.5

1,840

4.3

4.7

B

0.7

A-62

Koishikawa TG Building

3,080

3,099

3,190

3,220

4.9

3,150

4.7

5.1

A

1.0

A-63

Gotanda TG Building

2,620

2,780

2,570

2,600

5.1

2,540

4.9

5.3

A

0.8

A-64

KDX Nihonbashi 216 Building

2,010

1,939

1,840

1,860

4.5

1,810

4.3

4.7

A

0.6

A-66

KDX Shinjuku Building

6,800

6,851

6,420

6,510

4.5

6,320

4.3

4.7

A

2.2

A-67

KDX Ginza 1chome Building

4,300

4,276

5,000

5,100

4.3

4,950

4.1

4.5

B

1.4

A-68

KDX Nihonbashi Honcho Building

4,000

3,997

4,350

4,470

4.7

4,300

4.5

4.9

B

1.3

A-71

KDX Iidabashi Building

4,670

4,653

5,040

5,160

4.7

4,990

4.5

4.9

B

1.5

A-72

KDX Higashi-Shinagawa Building

4,590

4,873

4,870

4,990

4.9

4,820

4.7

5.1

B

1.5

A-73

KDX Hakozaki Building

2,710

2,850

2,850

2,930

5.1

2,810

4.9

5.3

B

0.8

A-74

KDX Shin-Nihonbashi Building

2,300

2,241

2,480

2,520

4.5

2,460

4.3

4.7

B

0.7

A-75

KDX Nihonbashi Kabutocho Building

11,27011,497

11,60011,600

4.6

11,500

4.1

4.5

A

3.6

A-77

Kabutocho Nikko Building II

1,280

1,272

1,560

1,580

4.9

1,540

4.7

5.1

A

0.4

A-78

Tachikawa Ekimae Building

1,267

1,311

1,370

1,380

5.8

1,360

5.6

6.0

A

0.4

A-83

Fuchu South Building

6,120

6,156

6,700

6,730

5.4

6,690

5.2

5.6

B

2.0

A-84

KDX Kasuga Building (Note 6)

2,800

2,864

3,290

3,310

4.9

3,260

4.7

5.1

A

0.9

A-85

KDX Nakameguro Building (Note 6)

1,880

1,900

2,260

2,320

5.0

2,230

4.8

5.2

B

0.6

A-86

KDX Omiya Building (Note 6)

2,020

2,137

2,380

2,380

5.7

2,380

5.5

5.9

B

0.6

A-87

Itopia Nihonbashi SA Building

2,200

2,225

2,270

2,260

4.9

2,270

4.7

5.1

B

0.7

A-88

Welship Higashi - Shinjuku

1,900

1,915

2,140

2,200

4.9

2,120

4.7

5.1

B

0.6

A-12

Portus Center Building

5,570

4,447

4,680

4,710

6.3

4,670

6.1

6.5

B

1.8

A-24

KDX Minami Semba Dai-1 Building

1,610

1,498

983

990

5.9

975

5.7

6.1

A

0.5

A-25

KDX Minami Semba Dai-2 Building

1,560

1,339

978

985

5.8

970

5.6

6.0

A

0.5

A-36

KDX Niigata Building

1,305

1,436

886

903

7.3

868

7.1

7.5

A

0.4

A-42

Karasuma Building

5,400

5,321

4,990

5,090

5.5

4,950

5.3

5.7

B

1.7

A-44

KDX Sendai Building

2,100

2,113

1,460

1,450

6.0

1,460

6.0

6.2

B

0.6

A-53

KDX Hakata-Minami Building

4,900

4,752

3,310

3,330

6.5

3,280

6.3

6.7

A

1.6

A-54

KDX Kitahama Building

2,220

2,158

1,530

1,530

6.0

1,530

5.6

6.2

A

0.7

A-58

KDX Nagoya Sakae Building

7,550

7,289

4,800

4,880

5.1

4,760

4.9

5.3

B

2.4

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,596

2,720

2,760

7.0

2,670

5.3

7.3

A

0.9

A-70

Kitananajo SIA Building

2,005

2,050

2,050

2,100

5.6

2,030

5.4

5.8

B

0.6

A-79

KDX Nagoya Ekimae Building(Note 7)

7,327

7,829

7,600

7,670

5.1

7,520

4.9

5.3

A

2.4

A-80

Nagoya Nikko Shoken Building

4,158

4,249

4,050

4,080

5.5

4,010

5.3

5.7

A

1.3

A-81

Sendai Nikko Building

950

1,051

1,030

1,030

5.8

1,020

5.6

6.0

A

0.3

A-82

KDX Higashi Umeda Building

2,770

2,784

3,350

3,410

5.0

3,330

4.8

5.2

B

0.9

274,218

272,368

250,235

254,071

-

89.9

-

247,236--

B-3

Court Mejiro

1,250

1,146

973

979

5.3

966

5.1

5.5

A

0.4

B-19

Residence Charmante Tsukishima

5,353

4,847

4,600

4,650

5.1

4,550

4.9

5.3

A

1.7

B-18

Venus Hibarigaoka

1,800

1,745

1,560

1,570

6.4

1,550

6.2

6.6

A

0.5

Subtotal of Residential Properties (3 properties)
CentralUrban
RetailAmount on
the Balance
Sheet(Note 2)

A-59

Subtotal of Office Buildings (79 properties)

Residential
Properties

Acquisition
Price（Note 1）

8,403

7,739

7,133

7,199

-

2.7

C-1

Frame Jinnan-zaka

9,900

9,643

9,420

9,570

4.3

9,270

4.1

4.5

A

3.3

C-2

KDX Yoyogi Building

2,479

2,519

1,950

1,950

5.2

1,940

4.8

5.4

A

0.8

-36-

-

7,066

-

-

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

Area

No.

Properties

C-4

Property Name

Ginza 4chome Tower

Acquisition
Price（Note 1）

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)
4.0

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

3.8

4.2

10,300Appraiser(Note 4)

Ratio(%)
(Note 5)

A

3.2

9,800

9,854

10,50010,600Subtotal of Central Urban Retail Properties (3 properties)

22,17922,01821,87022,120-21,510

-

-

-

7.2

Total of 85 properties

304,800

302,127

279,238

283,390-

275,812

-

-

-

100.0

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 than 1 million are rounded down from the amounts on the balance sheet.
3. Appraisal values (end of the seventeenth fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation’s Articles
of Incorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports prepared by Japan
Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd.
4. As of the fiscal period under review, appraisals of the properties are entrusted to two appraisers: Japan Real Estate Institute and Daiwa Real Estate Appraisal
Co., Ltd. In the table, the appraisers are referred to as “A” for Japan Real Estate Institute and “B” for Daiwa Real Estate Appraisal Co., Ltd.
5. Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest first decimal place.
The figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices of properties corresponding to each
subtotal and total column by the total acquisition price of the entire assets (85 properties).
6. The Investment Corporation changed the property name for the following buildings. Same applies below.
No.

New Property Name

Old Property Name

Change of Date

A-86

KDX Omiya Building

Nomura Fudosan Omiya Kyodo Building

September 26, 2013

A-50

KDX Ikejiri - Oohashi Building

Ikejiri-Oohashi Building

A-84

KDX Kasuga Building

Kasuga Business Center Building

A-85

KDX Nakameguro Building

Nakameguro Business Center Building

December 1, 2013(b) Property Distribution
Property TypesType

Number of

Acquisition Price

Properties(Millions of Yen)

Ratio (Note) (%)

Office Buildings

79

274,218

89.9

Residential Properties

3

8,403

2.7

Central Urban Retail Properties

3

22,179

7.2

Total

85

304,800

100.0

Geographic Distribution
Area

Number of

Acquisition Price

Properties(Millions of Yen)

Ratio (Note) (%)

Tokyo Metropolitan Area

69

250,705

82.2

Other Regional Areas

16

54,09517.7

85304,800

100.0

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

Number of

Acquisition Price

Properties(Millions of Yen)

Ratio (Note) (%)

Less than 1,000

1

950

0.3

1,000 - 2,500

38

71,27923.3

2,500 - 5,000

27

94,30130.9

5,000 - 7,500

12

72,05023.6

7,500 - 10,000

544,70014.6-37-KENEDIX REALTY INVESTMENT CORPORATION (8972)

10,000 - 12,500
Total

2

21,5207.0

85

304,800

100.0

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

-38-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(c) Details of Investment Real Estate and Trust Real Estate(i) Overview of Investment Real Estate Properties and Trust Real Estate
Type

Area

No.

Property Name

Site Area（㎡）(Note 1)

A-1

KDX Nihonbashi 313 Building

1,047.72

Total Floor Area（㎡）(Note 3)

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

8,613.09

April 1974

9.50

January 1987

7.01

June 1993

6.42

August 1992

5.20

November 1985

5.66

November 1988

4.92

May 1993

7.77

May 1994

3.60

April 1989

2.76

September 1993

6.76

September 1984

8.75

January 1992

4.16

September 1999

6.13

October 1987

7.90

February 1992

6.84

September 1990

10.36

October 1992

7.79

March 1990

6.05

May 1991

9.48

January 1990

3.63

November 1992

8.28

September 1986

5.72

July 1986

7.60

B2F9
SRC
A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48
B1F9
SRC・RCA-4

KDX Hatchobori Building

992.20

Offices

4,800.43
B1F8

A-5

KDX Nakano-Sakaue Building

1,235.16

Offices, Retail Shops
Residential, Parking
Storage

SRC
6,399.42
B1F11

Retail Shops, Offices
A-6

Harajuku F.F. Building

699.67SRC
3,812.44

Parking

F11

Offices, Retail Shops
A-7

FIK Minami Aoyama

369.47SRC
1,926.98

Residential

B1F9
SRC・RC・S

A-8

Kanda Kihara Building

410.18

Offices

2,393.94
B1F8
SRC

A-13

KDX Kojimachi Building

612.17

Offices, Retail Shops

5,323.81
B2F9
SRC

A-14

KDX Funabashi Building

1,180.41

Offices, Retail Shops

5,970.12
B1F8

Retail Shops, Offices
A-15

KDX Hamacho Building

554.80SRC
4,133.47

Parking

B2F10

Offices, Retail Shops
A-16

Toshin 24 Building

1,287.16

SRC
8,483.17

Parking
OfficeBuildings

Tokyo
Metropolitan
Area

B1F8
SRC

A-17

KDX Ebisu Building

724.22

Offices, Retail Shops

4,394.58
B1F7

Offices, Retail Shops
A-19

KDX Hamamatsucho Building

504.26

S3,592.38

Parking

F9
SRC

A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86
F8

Offices, Retail Shops
A-21

KDX Shinbashi Building

536.11

SRC・S
3,960.22

Parking

B1F8

Offices, Retail Shops
A-22

KDX Shin-Yokohama Building

705.00S
6,180.51

Parking

B1F9
RC

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64
F5
SRC

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
B1F8

Offices, Retail Shops
A-28

KDX Nogizaka Building

409.36RC
1,695.07

Residential

B1F5

Offices,A-29

KDX Higashi-Shinjuku Building

1,340.97

SRC
7,885.40

Storage, Parking

B1F9
SRC

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87
B1F8

Offices
A-31

KDX Monzen-Nakacho Building

580.99SRC
2,668.91

Retail Shops

F8
SRC

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03
B1F9

-39-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note 1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)S
A-33

KDX Okachimachi Building

239.72

Offices

1,882.00

June 1988

2.23

May 1995

11.12

December 1985

13.00

August 1982

2.97

October 1992

9.02

April 1988

8.07

August 1962

13.06

August 1989

8.71

April 1989

8.95

March 1988

3.14

F10
OfficesA-34

KDX Hon-Atsugi Building

724.62SRC
3,603.63

Retail Shops

F8
SRC

Offices, Parking
A-35

KDX Hachioji Building

2,821.21

460.62F9Retail Shops
Offices, Storage

SRC
A-37

KDX Ochanomizu Building

1,515.28

Retail Shops, Parking

7,720.08
B1F7

Mechanical RoomRC
A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63
F5
SRC

A-39

KDX Toranomon Building

288.20

Offices, Retail Shops

2,277.38
B1F9Bank, Offices
A-40

Toranomon Toyo Building

869.01

RC
8,346.83

Retail Shops, Storage

B2F9
SRC・RCA-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04
B1F9

OfficesA-45

KDX Roppongi 228 Building

408.86SRC
2,235.30

Retail Shops

B1F9

Offices, Retail Shops
SRC･S
A-46

Hiei Kudan-Kita Building

1,844.83

Office Room

11,425.31
B1F11

Parking, Storage
Offices, Retail Shops
A-47
OfficeBuildings

Tokyo
Metropolitan
Area

KDX Shin-Yokohama 381 Building (Note 7)

1,229.24

SRC・RCMarch 1988

B1F10

(Note 8)

10,290.30
Parking, Garbage Room

12.02
SRC

A-48

KDX Kawasaki-Ekimae Hon-cho Building

1,968.13

Offices

7,420.87

February 1985

8.34

July 1991

13.23

September 1988

3.02

September 1988

6.17

October 1992

9.41

July 1990

4.87

May 1994

7.25

August 2000

9.06

March 2008

7.15

February 2008

5.60

April 1992

2.01

November 1989

7.54

B1F9
SRC
A-49

Nissou Dai-17 Building

629.00

Offices, Parking

4,016.61
B1F8
RC

A-50

KDX Ikejiri-Oohashi Building

834.79

Offices

3,482.96
B2F9
SRC

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41
F9
SRC

A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60
B1F7

Offices, Retail Shops
A-55

Shin-toshin Maruzen Building

457.64SRC
3,439.37

Parking

B1F8
SRC

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
B1F8
S

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11
F8

OfficesA-59

KDX Iwamoto-cho Building

266.86

S
1,618.65

Residential Complex

F9

OfficesA-60

KDX Harumi Building

2,230.69

S・SRC
12,694.32

Retail Shops

B1F11
S・SRC

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90
B1F8
SRC

A-62

Koishikawa TG Building

1,250.42

Offices, Parking

5,862.02
B1F8

-40-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note 1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)SRC
A-63

Gotanda TG Building

582.90

Offices, Parking

4,440.61

April 1988

8.37

October 2006

6.99

May 1993

1.78

November 1991

8.41

January 1984

7.92

March 1990

8.37

January 1993

10.40

November 1993

7.29

November 2002

5.51

November 1998

4.23

October 2001

6.15

February 1990

3.34

March 1996

2.97

June 1992

7.19

October 1985

3.44

April 1993

6.97

July 1995

5.30

March 1990

3.48

September 1993

3.48

March 1993

9.04

September 1993

10.59

July 1983

4.39

October 1982

8.37

February 1984

1.93

B1F9
SRC
A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62
F9

Offices, Retail Shops
A-66

KDX Shinjuku Building

S・RC
10,348.02

1,118.12
Parking

B4F11
SRC

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

4,724.62
F9
SRC

A-68

KDX Nihonbashi Honcho Building

583.40

Offices, Parking

5,110.45
B1F9
SRC

A-71

KDX Iidabashi Building

967.38

Offices, Parking

5,422.64
B1F8
S・RC

A-72

KDX Higashi-Shinagawa Building

3,115.45

Offices

10,138.65
B1F5
SRC

A-73

KDX Hakozaki Building

971.83

Offices, Parking

6,332.48
B1F10

Offices, Retail Shops
A-74

KDX Shin-Nihonbashi Building

444.32

Tokyo
Metropolitan
AreaS
3,712.25

Parking

B1F10
S・SRC

A-75

KDX Nihonbashi Kabutocho Building

1,920.79

Offices, Parking

11,705.49
B1F8
RC

A-77

Kabutocho Nikko Building II

350.63

Offices

2,016.03
F8
S

A-78

Tachikawa Ekimae Building

464.95

Offices

2,896.48
B1F8

OfficeBuildings

SRC・S
A-83

Fuchu South Building

2,400.00

Offices, Parking

16,647.00
B1F14

Offices, Retail Shops
A-84

KDX Kasuga Building

1,319.24

SRC
6,444.31

Parking

B1F10
SRC

A-85

KDX Nakameguro Building

730.26

Offices

3,455.90
F7①S・SRC B1F8

Offices, Retail Shops,
A-86

KDX Omiya Building

775.67

5,055.50
Parking, Residential
Offices, Residential,,

A-87

Itopia Nihonbashi SA Building

1,193.91

SRC
7,362.25

Parking

B1F10

Offices, Retail Shops,
A-88

Welship Higashi-Shinjuku

1,072.03

SRC・RC
5,907.00

Parking

B2F10

Offices, Retail Shops
A-12

Portus Center Building②S F3

13,936.63

SRC・S
79,827.08

Storage, Parking

B2F25
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

Other Regional
Areas

B1F9
RC

A-36

KDX Niigata Building

1,110.56

Offices, Retail Shops

6,810.29
B2F13
SRC

A-42

Karasuma Building

1,788.67

Offices

12,632.68
B1F8
SRC

A-44

KDX Sendai Building

987.78

Offices

5,918.30
B1F10

-41-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note 1)

A-53

KDX Hakata-Minami Building

1,826.25

Total Floor Area（㎡）(Note 3)

Usage(Note 2)
Offices, Retail Shops

Type of Structure(Note 4)751.92June 1973

1.48

July 1994

9.79

April 2009

2.87

July 2009

13.79

October 1989

0.51

April 1986

12.13

August 1974

14.36

March 1989

3.48

July 2009

8.78

Avg. 23.2 yrs (Note 8)-

March 1997

7.11

January 2004

9.88

March 1989

5.20

Avg. 14.0 yrs-

March 2005

8.02

August 1991

8.17

November 2008

1.16
-

B1F9

Offices, Storage
KDX Kitahama Building

PML(%)(Note 6)SRC
13,238.16

Parking
A-54

Completion Date
(Note 5)

S
4,652.96

Parking

F10
S

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retail Shops

9,594.00
F11

Offices, Parking
A-69

KDX Kobayashi-Doshomachi Building (Note 9)

1,561.04

S・SRC
10,723.83
B1F12

Retail Shops

SRC
A-70
OfficeBuildings

Kitananajo SIA Building

819.44

Offices

5,503.90
B1F9

Other Regional
Areas

S・SRC
A-79

KDX Nagoya Ekimae Building

1,354.10

Offices, Retail Shops

13,380.30
B2F15

Offices, Retail Shops
A-80

Nagoya Nikko Shoken Building

1,403.93

SRC
14,308.76

Parking

B3F11
SRC・S

A-81

Sendai Nikko Building

522.14

Offices

3,598.01
B1F8

Offices, Retail Shops
A-82

KDX Higashi Umeda Building

804.50

S・SRC
6,805.76

Parking
Subtotal of Office Buildings (79 properties)

B1F10

-

-

-

1,581.91

Residential Complex

3,326.07

RC

B-3

Court Mejiro

Tokyo
Metropolitan
Area

B1F3
SRC
B-19

Residential
Properties

Residence Charmante Tsukishima

4,252.86

Residential Complex

18,115.39
B1F10①RC F6

Other Regional
Areas

B-18

Venus Hibarigaoka

8,595.00

Residential Complex

14,976.25---

1,240.51

Retail Shops

6,302.58②RC F5③RC F6

Subtotal of Residential Properties (3 properties)

S・RC・SRC

C-1

Frame Jinnan-zaka

B2F7
CentralUrban
RetailProperties

Tokyo
Metropolitan
Area

SRC
C-2

KDX Yoyogi Building

228.74Retail Shops, Offices

1,269.06
F8

Retail Shops, Offices,
C-4

Ginza 4chome Tower

688.52

S
6,787.33

Parking

B1F13

Subtotal of Central Urban Retail Properties (3 properties)

-

-

-

-

Avg. 8.4 yrs

Total of 85 properties

-

-

-

-

Avg. 21.8 yrs (Note 8)

4.79(Note 6)

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 the-42-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

weighted-average based on acquisition prices as of October 31, 2013, and is rounded down to the nearest first decimal place.
6. Probable Maximum Loss (PML) data is based on a survey provided by Sompo Japan Nipponkoa Risk Management, Inc. as of August 2013.
7. KDX Shin-Yokohama 381 Building is comprised from two compartmentalized buildings within a single building. By consolidating them together, they
become a property that comprises the entire building (total ownership ratio: 100%).
8. The completion date of the existing tower is shown for the completion date of KDX Shin-Yokohama 381 Building. Upon calculating the weighted-average
portfolio age, the completion date (April 2009) for the KDX Shin-Yokohama 381 Building Annex Tower is not considered.
9. KDX Kobayashi Doshomachi Building includes the term leasehold interest with a special agreement to transfer building.

-43-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(ii) Capital Expenditure①

Planned capital expenditures

Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the eighteenth fiscal period (November 1, 2013 toApril 30, 2014) are as follows. Planned capital expenditure may include portions classified into expenses for accounting purposes.

Property NameKDX Nagoya Ekimae Building

Air conditioning system(Nagoya, Aichi)

construction, other

KDX Omiya Building

Air conditioning system(Saitama, Saitama)

construction

KDX Shinbashi Building(Minato-ku, Tokyo)

Upgrade of common areas, otherAir conditioning system(Atsugi, Kanagawa)construction, other

KDX Shinjuku Building

Air conditioning system

Nagoya Nikko Shoken Building(Nagoya, Aichi)②

November 2013 to

213

-

3

As above

136

-

-

As above

136

-

-

As above

101

-

-

As above98--

As above65--

April 2014

KDX Hon-Atsugi Building(Shinjuku-ku, Tokyo)

Schedule

Purpose(Location)

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

construction, Upgrade ofcommon areas, other
Renovate external wall

Capital Expenditures during the Fiscal Period Under Review (fiscal period ended October 31, 2013)

The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review (fiscal period ended October 31,2013), the Investment Corporation completed work across its entire portfolio totaling ¥1,067 million. This total comprised of ¥894 million in capital expendituresand ¥173 million for repairs, maintenance and renovation expenses.

Property Name
(Location)
KDX Nagoya Ekimae Building(Nagoya, Aichi)
KDX Hatchobori Building(Chuo-ku, Tokyo)
KDX Kojimachi Building(Chiyoda-ku, Tokyo)
KDX Minami Semba Dai-1 Building(Osaka, Osaka)
KDX Omiya Building(Omiya, Omiya)
KDX Kasuga Building(Bunkyo-ku, Tokyo)
Nagoya Nikko Shoken Building(Nagoya, Aichi)
KDX Hachioji Building(Hachioji, Tokyo)

Schedule

PurposeAir conditioning system construction, other

April 2013
to October 2013

Amount of Capital Expenditures(Millions of Yen)219

Air conditioning system construction

As above118

Air conditioning system construction

As above89

Air conditioning system construction, other

As above

75

Upgrade elevators, other

As above42

Upgrade of common areas, other

As above35

Air conditioning system construction

As above

26

Upgrade parking and signboard, other

As above

14

Others272

Portfolio Total

894

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

-44-

KENEDIX REALTY INVESTMENT CORPORATION (8972)③ Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
The Investment Corporation formulates long-term repairs, maintenance and renovation plans on an individual investment property basis and allocates a portionof its cash flows generated during the period to a reserve for repairs, maintenance and renovation to meet large-scale renovation over the medium- to long-terms.
The following amount has been transferred to the reserve from period cash flows.
(Millions of Yen)
Thirteenth Fiscal
Fiscal period

Period(May 1, 2011 to
October 31, 2011)

Reserve for the end of theprevious period

440

Reversal of reserve for the
fiscal period under review
Reserve brought forward to
the next period

Fifteenth Fiscal Period

Sixteenth Fiscal Period(November 1, 2011 to(May 1, 2012 to(November 1, 2012 toApril 30, 2012)

October 31, 2012)

April 30, 2013)

Seventeenth Fiscal
Period(May 1, 2013 to October
31, 2013)

517

643

503

523

296

224

30

12

19

170

364

10

34

517

643

503

523

502

Reserve for the fiscal
period under review

Fourteenth Fiscal Period

96

-45-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(iii) Details of the Tenants
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Total Leasable
Floor Area(㎡)(Note 1)
5,889.32

Total No. of
Total Leased
Leasable
Floor Area
Residential(㎡)(Note 2)units (Note 3)
5,889.32

Total No. of
LeasedResidential
units(Note 4)A-1

KDX Nihonbashi 313 Building-

A-3

Higashi-Kayabacho Yuraku Building

4,379.66

4,379.66-

A-4

KDX Hatchobori Building

3,323.73

3,323.73

A-5

KDX Nakano-Sakaue Building

4,390.27

4,390.27

A-6

Harajuku F.F. Building

3,068.36

3,068.36

-

-

A-7

FIK Minami Aoyama

1,814.56

1,814.56

-

-

A-8

Kanda Kihara Building

1,947.62

1,483.45

-

-

A-13

KDX Kojimachi Building

3,793.02

3,793.02-

A-14

KDX Funabashi Building

3,836.02

3,836.02

A-15

KDX Hamacho Building

3,101.38

2,749.76

A-16

Toshin 24 Building

6,624.74

A-17

KDX Ebisu Building

A-19

KDX Hamamatsucho Building

A-20

KDX Kayabacho Building

A-21

KDX Shinbashi Building

1,696.42

1,696.42-

A-22

KDX Shin-Yokohama Building

4,792.64

4,453.74-

A-26

KDX Kiba Building

2,452.94

2,452.94-

A-27

KDX Kajicho Building

2,564.65

2,564.65

A-28

KDX Nogizaka Building

1,251.40

A-29

KDX Higashi-Shinjuku Building

5,930.96

A-30

KDX Nishi-Gotanda Building

3,881.58

3,881.58

A-31

KDX Monzen-Nakacho Building

2,008.74

2,008.74-

A-32

KDX Shiba-Daimon Building

5,997.36

5,572.87-

A-33

KDX Okachimachi Building

1,792.54

1,792.54-

A-34

KDX Hon-Atsugi Building

2,746.89

2,445.30

A-35

KDX Hachioji Building

2,178.61

2,178.61

A-37

KDX Ochanomizu Building

5,880.71

A-38

KDX Nishi-Shinjuku Building

A-39
A-40
A-41

No. of Occupancy
Tenants Ratio (%）(Note 5) (Note 6)

Leasehold andSecurity Deposits(¥thousands)(Note 8)

199,902

232,123

-

10
8

100.0

117,465

216,172

-

-

5

100.0

126,951

134,559

18

18

25

100.0

87,13488,4693

100.0

109,230

169,343

7

100.0

74,708107,055

976.2

47,616

95,108

-

10

100.0

147,100

225,629

-

-

24

100.0

103,961

127,112

-

-

9

88.7

84,297

90,944

6,038.32

-

-

17

91.1

174,624

223,136

3,074.47

2,564.80

-

-

5

83.4

124,266

198,440

2,724.35

2,724.35

-

-

9

100.0

100,183

124,4093,019.93

3,019.93

-

-

7

100.0

83,835

107,717

-

5

100.0

83,571

136,557

-

18

92.9

95,274

151,733

-

6

100.0

59,101

52,996

-

-

10

100.0

78,343

94,792

1,251.40

1

1

6

100.0

26,34825,8345,930.96

-

-

6

100.0

130,558

120,647

-

-

5

100.0

145,439

203,523

-

7

100.0

47,061

43,788

-

10

92.9

101,592

160,710

-

2

100.0

68,017110,237

-

-

9

89.0

48,20663,871

-

-

8

100.0

50,777

47,8275,880.71

-

-

7

100.0

174,257

227,261

1,593.60

1,593.60

-

-

8

100.0

48,29756,648KDX Toranomon Building

1,966.56

1,966.56

-

-

7

100.0

102,392

179,712Toranomon Toyo Building

6,499.63

6,299.81

-

-

9

96.9

304,227

507,244

KDX Shinjuku 286 Building

2,444.43

2,444.43

-

-

9

100.0

85,199102,608

A-45

KDX Roppongi 228 Building

1,908.14

1,204.28

-

-

6

63.1

39,69055,284

A-46

Hiei Kudan-Kita Building

6,897.59

6,897.59

-

-

14

100.0

249,228

300,531

A-47

KDX Shin-Yokohama 381 Building

8,131.47

8,065.38

-

-

42

99.2

168,254

237,188

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

5,124.98

5,124.98

-

-

1

100.0

103,380

155,571

A-49

Nissou Dai-17 Building

2,739.64

2,237.29

-

-

7

81.7

46,46853,793-100.0

Total Rental
and Other Operating
Revenues(¥thousands)(Note 7)

A-50

KDX Ikejiri-Oohashi Building

2,456.72

2,244.16

-

-

7

91.3

57,878

72,100A-51

KDX Hamacho Nakanohashi Building

2,239.13

2,239.13

-

-

9

100.0

67,46386,495A-52

KDX Kanda Misaki-cho Building

1,330.06

979.68

-

-

6

73.7

28,50827,807

A-55

Shin-toshin Maruzen Building

1,912.28

1,912.28

-

-

5

100.0

58,97972,273A-56

KDX Jimbocho Building

2,321.80

2,321.80

-

-

3

100.0

69,05896,451A-57

KDX Gobancho Building

1,649.47

1,649.47

-

-

7

100.0

36,53752,540A-59

KDX Iwamoto-cho Building

1,529.91

1,529.91

3

3

10

100.0

45,11556,592

A-60

KDX Harumi Building

9,294.00

6,619.76

-

-

7

71.2

169,871

280,526

A-61

KDX Hamamatsucho Dai-2 Building

1,953.50

1,709.57

-

-

7

87.5

59,16595,821

A-62

Koishikawa TG Building

3,945.54

3,945.54

-

-

5

100.0

130,282

157,041-46-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Residential
Properties

No. of Occupancy
Tenants Ratio (%）(Note 5) (Note 6)

Total Rental
and Other Operating
Revenues(¥thousands)(Note 7)

Leasehold andSecurity Deposits(¥thousands)(Note 8)

Gotanda TG Building

3,166.56

3,166.56

-

-

10

100.0

103,292

138,452

A-64

KDX Nihonbashi 216 Building

1,615.20

1,615.20

-

-

8

100.0

56,46995,968A-66

KDX Shinjuku Building

5,851.30

5,168.17

-

-

19

88.3

221,220

273,094

A-67

KDX Ginza 1chome Building

3,573.59

3,573.59

-

-

4

100.0

135,384

169,724

A-68

KDX Nihonbashi Honcho Building

3,998.39

3,998.39

-

-

8

100.0

138,008

204,126

A-71

KDX Iidabashi Building

4,429.25

4,429.25

-

-

5

100.0

165,643

227,405

A-72

KDX Higashi-Shinagawa Building

7,110.62

7,110.62

-

-

6

100.0

180,038

225,273

A-73

KDX Hakozaki Building

3,992.60

3,992.60

-

-

8

100.0

114,751

164,334

A-74

KDX Shin-Nihonbashi Building

2,658.79

2,658.79

-

-

9

100.0

81,984

134,301

A-75

KDX Nihonbashi Kabutocho Building

7,562.93

7,549.35

-

-

7

99.8

43,230330,311

A-77

Kabutocho Nikko Building II

1,395.78

1,395.78

-

-

4

100.0

54,57982,526

A-78

Tachikawa Ekimae Building

1,612.13

1,612.13

-

-

5

100.0

63,87986,432

A-83

Fuchu South Building

10,151.48

10,151.48

-

-

34

100.0

305,806

347,714A-84

KDX Kasuga Building

4,344.41

4,232.41

-

-

13

97.4

119,436

141,408

A-85

KDX Nakameguro Building

2,681.29

2,681.29

-

-

6

100.0

79,486

94,286

A-86

KDX Omiya Building

3,819.09

3,633.32

1

1

17

95.1

106,617

176,354

A-87

Itopia Nihonbashi SA Building

3,106.42

3,106.42

8

8

14

100.0

47,906116,969

A-88

Welship Higashi-Shinjuku Building

4,037.44

4,037.44

-

-

7

100.0

20,85874,507

A-12

Portus Center Building

11,533.14

11,053.11

-

-

28

95.8

299,070

351,771

A-24

KDX Minami Semba Dai-1 Building

3,106.75

2,808.17

-

-

12

90.4

46,43870,076

A-25

KDX Minami Semba Dai-2 Building

2,697.65

2,218.74

-

-

21

82.2

45,47339,243

A-36

KDX Niigata Building

4,067.25

2,591.01

-

-

21

63.7

49,60354,484

A-42

Karasuma Building

8,745.01

8,247.21

-

-

37

94.3

213,942

262,814A-44

KDX Sendai Building

3,958.39

3,622.70

-

-

30

91.5

86,340154,239

A-53

KDX Hakata-Minami Building

9,926.93

9,323.74

-

-

49

93.9

166,716

210,873

A-54

KDX Kitahama Building

3,995.50

3,708.71

-

-

11

92.8

79,303

83,327

A-58

KDX Nagoya Sakae Building

6,923.12

6,923.12

-

-

16

100.0

193,246

206,368

A-69

KDX Kobayashi-Doshomachi
Building

7,072.23

7,072.23

-

-

13

100.0

180,151

250,404

A-70

Kitananajo SIA Building

3,788.73

3,400.53

-

-

17

89.8

90,855

113,856

A-79

KDX Nagoya Ekimae Building

7,932.43

7,932.43

-

-

19

100.0

311,144497,522

A-80

Nagoya Nikko Shoken Building

7,994.75

7,834.12

-

-

9

98.0

208,443

279,348

A-81

Sendai Nikko Building

2,538.40

2,226.50

-

-

5

87.7

54,37676,448A-82

KDX Higashi Umeda Building

4,986.24

4,986.24

-

-

11

100.0

137,284

103,900

324,475.11

310,232.58

31

31

899

95.6

8,760,816

12,064,107

2,046.79

2,046.79

20

20

20

100.0

38,81415,857100.0

149,371

50,580B-3

Court Mejiro

B-19

Residence Charmante Tsukishima

7,711.14

7,711.14

140

140

1
(Note 9)B-18

Venus Hibarigaoka

12,829.64

12,084.74

159

150

111

94.2

91,587

24,348Subtotal of Residential Properties (3 properties)

22,587.57

21,842.67

319

310

132

96.7

279,774

90,785

Frame Jinnan-zaka

4,653.40

4,653.40

-

-

12

100.0

268,979

279,259

C-2

KDX Yoyogi Building

1,177.00

1,177.00

-

-

11

100.0

74,691

108,150

C-4

Ginza 4chome Tower

5,624.23

5,624.23

-

-

4

100.0

113,990

346,121

Subtotal of Central Urban Retail Properties (3 properties)

11,454.63

11,454.63

-

-

27

100.0

457,662

733,531341

1,058(Note 10)95.8

9,498,253

12,888,424

Other
Regional
Areas

C-1
CentralUrban Retail
Properties

Total No. of
LeasedResidential
units(Note 4)

A-63

Subtotal of Office Buildings (79 properties)
Tokyo
Metropolitan
Area

Total Leasable
Floor Area(㎡)(Note 1)

Total Leased Total No. of
Leasable
Floor Area
Residential(㎡)(Note 2)units (Note 3)Tokyo
Metropolitan
Area

Total of 85 properties
Occupancy Ratio over the Past Five Years

358,517.31
April30, 2009

95.7%

October 31, 2009

94.7%

April 30, 2010

94.4%

343,529.88

-47-

350

KENEDIX REALTY INVESTMENT CORPORATION (8972)
October 31, 2010

93.6%

April 30, 2011

94.6%

October 31, 2011

94.7%

April 30, 2012

95.4%

October 31, 2012

95.5%

April 30, 2013

93.9%

October 31, 2013

95.8%

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 signed.
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.
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
from real estate rental operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
(Reference) Total operating rental and other revenues for properties sold during the Sixteenth Fiscal Period
Type of Property

No.

Office Building

A-76

Total Rental and Other Operating Revenues (¥thousands)

Property Name
Ikebukuro Nikko Building

3,446

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, 2014) fixed-term building lease contract(term of contract: to January 30, 2029) with Sekiwa Real Estate, Ltd., a master lessor, the total number of tenants is indicated as 1.
10. The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.
(iv) 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
sixteenth fiscal period (fiscal period ended October 31, 2013).
(v) Information concerning major tenants①Tenant which holds more than 10% of the total leased area: Not applicable②Reference: Major end tenants

Property Name

Leased Floor
Area(As of October 31, 2013)
Percentage of Total Leased
Floor Area (Note 1)

1 SMBC Nikko Securities, Inc.

Kabutocho Nikko Building II, Tachikawa Ekimae Building,
KDX Nagoya Ekimae Building, Nagoya Nikko Shoken
Building, Sendai Nikko Building,

7,714.37 ㎡

2.2%

2 Sekiwa Real Estate, Ltd.

Residence Charmante Tsukishima

7,711.14 ㎡

2.2%

5,124.98 ㎡

1.5%

3,955.36 ㎡

1.2%

3,782.19 ㎡

1.1%

28,288.04 ㎡

8.2%

343,529.88 ㎡

100.0%Name of End Tenant

3 N / A (Note 2)

KDX Kawasaki-Ekimae Hon-cho Building
Toranomon Toyo Building, Harajuku F.F. Building,
4 The Bank of Tokyo-Mitsubishi UFJ, Ltd.
KDX Yoyogi Building
KDX Shinbashi Building,
5 Kenedix, Inc.
KDX Nihonbashi Kabutocho Building
Subtotal
Total Portfolio
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 thenearest first decimal place.
2. Not disclosed due to the tenants’ request.

-48-

【Reference】

a0011
a0031
a0041
a0051
a0061
a0071
a0081
a0131
a0141
a0151
a0161
a0171
Earnings Performance for the Individual Properties for the 17th Fiscal Period (May 1, 2013 to October 31, 2013) ：184days※As of October 31, 2013

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A01

A03

Property NameKDX Nihonbashi
313 Building

HigashiKayabacho
Yuraku Building

Acquisition Date

August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 November 1, 2005 March 1, 2006 March 16, 2006 May 1, 2006

Price Information

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

A04

A05

KDX Hatchobori KDX NakanoBuilding
Sakaue Building

a0191

a0201

a0211

a0221

A06

A07

A08

A13

A14

A15

A16

A17

A19

A20

A21

A22

Harajuku F.F.
Building

FIK Minami
AoyamaKanda Kihara
Building

KDX Kojimachi
Building

KDX Funabashi
Building

KDX Hamacho
Building

Toshin 24
Building

KDX Ebisu
Building

KDX
Hamamatsucho
Building

KDX Kayabacho
Building

KDX Shinbashi
Building

KDX ShinYokohama
Building

May 1, 2006

May 1, 2006

May 1, 2006

May 1, 2006

May 1, 2006

5,940
1.9%
6,030
6,470
2.3%
10
5,889.32
5,889.32

4,450
1.5%
4,281
4,780
1.7%
8
4,379.66
4,379.66

3,680
1.2%
3,421
3,390
1.2%
5
3,323.73
3,323.73

2,533
0.8%
2,426
2,270
0.8%
25
4,390.27
4,390.27

2,450
0.8%
2,424
3,030
1.1%
3
3,068.36
3,068.36

2,270
0.7%
2,236
2,240
0.8%
7
1,814.56
1,814.56

1,950
0.6%
1,837
1,710
0.6%
9
1,947.62
1,483.45

5,950
2.0%
5,670
4,350
1.6%
10
3,793.02
3,793.02

2,252
0.7%
2,349
1,950
0.7%
24
3,836.02
3,836.02

2,300
0.8%
2,214
2,200
0.8%
9
3,101.38
2,749.76

5,300
1.7%
5,023
4,000
1.4%
17
6,624.74
6,038.32

4,640
1.5%
4,533
4,200
1.5%
5
3,074.47
2,564.80

3,460
1.1%
3,186
3,160
1.1%
9
2,724.35
2,724.35

2,780
0.9%
2,826
2,430
0.9%
7
3,019.93
3,019.93

2,690
0.9%
2,676
2,380
0.9%
5
1,696.42
1,696.42

2,520
0.8%
2,397
2,160
0.8%
18
4,792.64
4,453.74

100.0%
99.7%
100.0%
94.6%
85.2%
71.8%
100.0%
100.0%
100.0%
100.0%

100.0%
89.1%
89.1%
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%
93.1%
100.0%

100.0%
100.0%
100.0%
98.3%
84.1%
100.0%
96.5%
100.0%
91.3%
92.3%

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

100.0%
100.0%
88.4%
100.0%
100.0%
100.0%
100.0%
77.1%
100.0%
100.0%

76.2%
86.5%
100.0%
100.0%
100.0%
93.5%
100.0%
100.0%
100.0%
100.0%

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

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

88.7%
100.0%
100.0%
95.0%
95.0%
100.0%
93.9%
100.0%
100.0%
100.0%

91.1%
100.0%
100.0%
100.0%
96.2%
84.7%
72.7%
84.1%
93.3%
100.0%

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

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
87.7%

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%
99.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

92.9%
92.9%
95.4%
97.9%
93.1%
93.1%
74.0%
86.3%
93.1%
93.1%

Occupancy ratio
Lease Information

As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009

Income and Retained Earnings Information for the 17th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues ( \ Thousands)

199,902

117,465

126,951

87,134109,230

74,70847,616

147,100

103,961

84,297

174,624

124,266

100,183

83,83583,571

95,274

Rental revenues

179,652

103,110

109,546

72,055

99,10468,30043,111

122,685

89,33873,441

139,063

106,500

89,29273,82975,732

81,240

Other operating revenues

20,24914,355

17,404

15,078

10,125

6,407

4,504

24,415

14,622

10,85635,561

17,766

10,89010,005

7,839

14,03356,16736,36047,84429,797

24,46018,43015,93456,612

31,321

24,43752,91634,99327,502

25,41925,80629,368Property management fees

16,126

11,124

11,839

9,048

6,833

5,305

5,086

10,097

13,071

8,604

17,153

9,121

7,334

7,186

6,486

11,741

Taxes

20,563

8,932

8,658

7,554

7,977

5,722

4,055

16,870

7,332

7,005

12,295

11,008

8,928

6,265

9,405

6,545

Utilities

17,082

8,023

10,585

10,188

6,950

5,998

4,937

14,01910,125

6,907

22,036

11,642

7,307

8,046

6,979

9,330

Repairs and maintenance costs

612

204

12,222

1,397

453

234

383

11,287

520

829

305

1,929

1,512

3,014

353

840

Insurance

221

151

137

169

103

55

60

155

146

109

230

116

89

100

78

148

Trust fees and other expenses

1,561

7,924

4,401

1,438

2,143

1,113

1,411

4,181

125

980

895

1,173

2,330

807

2,503

762

③ＮＯＩ （＝①-②） (\ Thousands)

143,734

81,104

79,10757,33784,76956,277

31,681

90,48872,63959,859

121,708

89,273

72,68058,41657,76565,906④Depreciation (\ Thousands)

27,42426,945

18,776

15,371

9,445

6,569

8,119

19,72019,355

18,25335,574

18,83822,813

17,432

6,670

22,217⑤Rental operating income （＝③-④） (\ Thousands)

116,310

54,15960,33041,96675,32449,70723,56270,76753,283

41,605

86,13370,43549,86640,98351,094

43,688②Property-related expenses (\ Thousands)⑥Capital expenditures (\ Thousands)

-

6,008

118,064

9,471

-

600

10,07089,246

700

1,480

2,771

18,275

3,465

600

-

5,666

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

143,734

75,096

ᇞ38,957

47,86584,76955,677

21,611

1,241

71,93958,379118,936

70,997

69,21557,81657,76560,240

Expense ratio （＝②／①）

28.1%
41,127
7,013
3.51%

31.0%
17,864
4,052
3.45%

37.7%
17,316
4,205
3.31%

34.2%
15,108
2,948
3.38%

22.4%
15,955
3,959
3.62%

24.7%
11,445
2,673
3.58%

33.5%
8,109
1,618
3.40%

38.5%
33,740
4,848
3.30%

30.1%
14,667
3,604
3.47%

29.0%
14,011
2,941
3.49%

30.3%
24,591
6,047
3.46%

28.2%
22,017
4,357
3.51%

27.5%
17,857
3,527
3.52%

30.3%
12,531
2,903
3.46%

30.9%
18,809
2,884
3.45%

30.8%
13,092
3,289
3.45%

214,470
17,872

107,050
8,920

158,190
13,182

141,400
11,783

160,510
13,37571,7905,982

80,4306,702

180,970
15,080160,670
13,389134,170
11,180217,670
18,139147,940
12,328135,060
11,255120,000
10,000133,340
11,111

152,030
12,669Ｐroperty tax for the year 2013 (\ Thousands)
Reference

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

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

-49-

【Reference】

a0261
a0271
a0281
a0291
a0301
a0311
a0321
a0331
a0341
a0351
a0371
a0381
Earnings Performance for the Individual Properties for the 17th Fiscal Period (May 1, 2013 to October 31, 2013) ：184days※As of October 31, 2013

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property NameKDX Nogizaka
KDX HigashiKDX NishiKDX MonzenKDX ShibaBuilding
Shinjuku Building Gotanda Building Nakacho Building Daimon Building

Acquisition Date

June 20, 2006

July 3, 2006

July 14, 2006 September 1, 2006 December 1, 2006 January 19, 2007 March 1, 2007 March 1, 2007 March 1, 2007 March 1, 2007 April 2, 2007

1,580
0.5%
1,529
1,370
0.5%
6
2,452.94
2,452.94

2,350
0.8%
2,355
2,330
0.8%
10
2,564.65
2,564.65

1,065
0.3%
1,111
680
0.2%
6
1,251.40
1,251.40

2,950
1.0%
3,145
3,340
1.2%
6
5,930.96
5,930.96

4,200
1.4%
4,048
3,750
1.3%
5
3,881.58
3,881.58

1,400
0.5%
1,379
1,140
0.4%
7
2,008.74
2,008.74

6,090
2.0%
6,194
4,510
1.6%
10
5,997.36
5,572.87

2,000
0.7%
2,099
1,850
0.7%
2
1,792.54
1,792.54

1,305
0.4%
1,146
1,050
0.4%
9
2,746.89
2,445.30

1,155
0.4%
1,272
979
0.4%
8
2,178.61
2,178.61

6,400
2.1%
6,571
6,180
2.2%
7
5,880.71
5,880.71

1,500
0.5%
1,565
1,130
0.4%
8
1,593.60
1,593.60

4,400
1.4%
4,754
3,380
1.2%
7
1,966.56
1,966.56

9,850
3.2%
9,820
10,3003.7%
96,499.63
6,299.81

2,300
0.8%
2,369
2,250
0.8%
9
2,444.43
2,444.43

3,300
1.1%
3,426
2,120
0.8%
6
1,908.14
1,204.28

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%
84.2%
75.1%
94.3%
100.0%

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

100.0%
100.0%
100.0%
99.7%
83.3%
100.0%
100.0%
100.0%
100.0%
97.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
91.9%

100.0%
100.0%
100.0%
100.0%
100.0%
84.3%
100.0%
100.0%
100.0%
100.0%

92.9%
79.1%
82.8%
100.0%
100.0%
100.0%
100.0%
97.3%
100.0%
100.0%

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

89.0%
95.7%
86.0%
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%
96.4%
100.0%
85.6%
85.6%

100.0%
100.0%
90.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
88.6%
100.0%
87.6%
87.6%
100.0%
100.0%
100.0%

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

96.9%
96.9%
96.9%
95.1%
100.0%
100.0%
95.4%
93.9%
95.4%
100.0%

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

63.1%
54.4%
54.4%
65.1%
65.1%
65.1%
65.1%
65.1%
52.4%
65.2%

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues ( \ Thousands)

59,101

78,343

26,348130,558

145,439

47,061

101,592

68,017

48,20650,777

174,257

48,297102,392

304,227

85,19939,690Rental revenues

51,387

68,537

21,524

114,255

123,045

36,51890,291

58,61339,59742,766160,62940,751

95,849290,780

71,64034,334

Other operating revenues

7,714

9,806

4,823

16,302

22,394

10,543

11,300

9,404

8,609

8,010

13,627

7,546

6,542

13,447

13,5585,356

19,74820,208

11,99045,48832,635

15,231

39,257

16,065

16,783

18,11743,716

15,222

21,66967,34624,341

19,844

Price Information

A27
KDX Kajicho
Building

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

A31

A32

A33

A34

A35

A37

KDX
Okachimachi
Building

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX
Ochanomizu
Building

A38

A39

A40

a0451

A26

Net book value (\ Millions)

A30

a0411

KDX Kiba
Building

Percentage of total portfolio

A29

a0401

Property No.

Acquisition price (\ Millions)

A28

a0391

A41

A45

KDX NishiKDX Toranomon Toranomon Toyo
Shinjuku Building
Building
Building

KDX Shinjuku
286 Building

KDX Roppongi
228 Building

April 2, 2007 April 17, 2007 June 1, 2007

June 1, 2007 January 10, 2008

Occupancy ratio
Lease Information

As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009

Income and Retained Earnings Information for the 17th Fiscal Period②Property-related expenses (\ Thousands)
Property management fees

5,294

6,963

3,128

13,077

11,571

4,366

11,926

5,949

6,076

5,791

11,277

4,646

6,336

20,823

7,258

4,661

Taxes

4,745

5,325

3,533

13,445

9,065

3,139

11,301

2,921

3,629

4,088

14,662

4,287

9,162

27,374

8,000

7,130

Utilities

4,981

6,099

3,247

16,396

10,307

7,154

10,478

5,311

5,827

5,607

14,773

5,612

4,444

16,629

7,849

5,675

Repairs and maintenance costs

3,547

413

1,046

966

828

350

2,742

217

146

1,355

1,288

355

395

609

190

887

74

82

40

207

141

71

180

49

100

68

207

56

65

232

97

56

1,105

1,324

994

1,395

721

150

2,626

1,616

1,004

1,205

1,506

264

1,265

1,678

946

1,433
19,845

Insurance
Trust fees and other expenses③ＮＯＩ （＝①-②） (\ Thousands)

39,353

58,135

14,35785,070112,803

31,82962,33551,951

31,42332,659130,541

33,07480,722

236,880

60,858④Depreciation (\ Thousands)

11,993

12,853

5,678

19,863

28,977

9,518

30,852

8,066

12,120

10,39427,325

6,809

13,326

12,339

9,877

5,172

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

27,36045,281

8,679

65,207

83,82622,311

31,482

43,885

19,302

22,265103,216

26,26567,396

224,541

50,981

14,673⑥Capital expenditures (\ Thousands)

2,205

889

-

4,073

1,711

-

10,1171,422

194

14,986

-

430

-

-

-

3,237

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

37,14857,246

14,35780,996

111,092

31,82952,21750,52931,22917,673

130,541

32,64480,722

236,880

60,85816,608

Expense ratio （＝②／①）

33.4%
9,491
2,009
3.40%

25.8%
10,650
2,785
3.56%

45.5%
7,065
830
3.15%

34.8%
26,890
4,400
3.37%

22.4%
18,130
5,270
3.62%

32.4%
6,275
1,610
3.42%

38.6%
22,602
3,345
3.29%

23.6%
5,841
2,448
3.60%

34.8%
7,258
1,625
3.37%

35.7%
8,143
1,702
3.35%

25.1%
29,324
6,220
3.57%

31.5%
8,558
1,660
3.44%

21.2%
18,324
3,737
3.65%

22.1%
54,748
11,043
3.63%

28.6%
16,000
2,980
3.50%

50.0%
14,2591,215
3.06%

93,6507,804

87,5907,299

49,9504,162

149,280
12,440133,200
11,100113,920
9,493

169,180
14,09855,4304,619

147,990
12,332

100,3808,365

249,810
20,81774,5606,213

75,6806,306

286,720
23,893

143,300
11,94180,0706,672

Ｐroperty tax for the year 2013 (\ Thousands)
Reference

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

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

-50-

【Reference】

a0461
a0471
a0481
a0491
a0501
a0511
a0521
a0551
a0561
a0571
a0591
a0601
Earnings Performance for the Individual Properties for the 17th Fiscal Period (May 1, 2013 to October 31, 2013) ：184days※As of October 31, 2013

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0611

a0621

a0631

a0641

Property No.

A46

A47

A48

A49

A50

A51

A52

A55

A56

A57

A59

A60

A61

A62

A63

A64

Property Name

Hiei Kudan-Kita
Building

KDX ShinYokohama 381
Building

KDX KawasakiEkimae Hon-cho
Building

Nissou Dai-17
Building

KDX IkejiriOohashi Building

KDX Hamacho
Nakanohashi
Building

KDX Kanda
Misaki-cho
Building

Shin-toshin
Maruzen Building

KDX Jimbocho
Building

KDX Gobancho
Building

KDX Iwamotocho Building

KDX Harumi
Building

KDX
Hamamatsucho
Dai-2 Building

Koishikawa TG
Building

Gotanda TG
Building

KDX Nihonbashi
216 Building

Acquisition Date

February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 29, 2008 March 31, 2008 March 31, 2008 May 1, 2008

Price Information

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)June 30, 2008 September 1, 2008 November 18, 2009 November 18, 2009 December 1, 2009

7,600
2.5%
7,598
7,450
2.7%
14
6,897.59
6,897.59

5,800
1.9%
5,771
4,010
1.4%
42
8,131.47
8,065.38

3,760
1.2%
3,704
2,990
1.1%
1
5,124.98
5,124.98

2,710
0.9%
2,580
1,570
0.6%
7
2,739.64
2,237.29

2,400
0.8%
2,431
1,500
0.5%
7
2,456.72
2,244.16

2,310
0.8%
2,317
1,770
0.6%
9
2,239.13
2,239.13

1,380
0.5%
1,368
959
0.3%
6
1,330.06
979.68

2,110
0.7%
2,138
1,550
0.6%
5
1,912.28
1,912.28

2,760
0.9%
2,878
1,940
0.7%
3
2,321.80
2,321.80

1,951
0.6%
1,959
1,370
0.5%
7
1,649.47
1,649.47

1,864
0.6%
1,763
1,330
0.5%
10
1,529.91
1,529.91

10,250
3.4%
9,486
8,250
3.0%
7
9,294.00
6,619.76

2,200
0.7%
2,274
1,870
0.7%
7
1,953.50
1,709.57

3,080
1.0%
3,099
3,190
1.1%
5
3,945.54
3,945.54

2,620
0.9%
2,780
2,570
0.9%
10
3,166.56
3,166.56

2,010
0.7%
1,939
1,840
0.7%
8
1,615.20
1,615.20

100.0%
100.0%
100.0%
91.4%
98.8%
95.9%
85.3%
91.9%
100.0%
100.0%

99.2%
100.0%
91.7%
91.5%
93.0%
89.5%
100.0%
100.0%
100.0%
92.1%

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

81.7%
46.7%
86.4%
86.4%
86.4%
86.4%
94.9%
94.9%
100.0%
100.0%

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

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
93.0%
100.0%
100.0%
100.0%

73.7%
100.0%
100.0%
100.0%
100.0%
86.9%
86.9%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
81.2%
100.0%
100.0%
100.0%
100.0%
64.3%

100.0%
100.0%
100.0%
100.0%
100.0%
74.8%
94.4%
85.0%
100.0%
100.0%

100.0%
85.7%
100.0%
100.0%
100.0%
100.0%
85.7%
85.7%
85.7%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
75.0%
100.0%

71.2%
72.2%
70.3%
70.3%
88.9%
98.2%
98.2%
98.2%
100.0%
100.0%

87.5%
100.0%
87.6%
87.6%
100.0%
100.0%
100.0%
87.5%
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%
80.0%
80.0%
77.1%
57.8%
-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
75.0%
87.5%
-

Occupancy ratio
Lease Information

As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009

Income and Retained Earnings Information for the 17th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues ( \ Thousands)

249,228

168,254

103,380

46,46857,87867,46328,50858,97969,05836,537

45,115

169,871

59,165130,282

103,292

56,469Rental revenues

219,214

139,653

93,13837,23944,54255,56025,90349,32462,55632,94142,042

141,50753,197108,006

93,20850,493

Other operating revenues

30,01428,600

10,242

9,228

13,335

11,902

2,605

9,655

6,501

3,596

3,073

28,364

5,968

22,275

10,083

5,975

89,362

48,443

34,97526,821

19,377

19,635

9,392

19,93017,938

14,201

9,950

81,532

19,821

44,08928,385

15,912②Property-related expenses (\ Thousands)
Property management fees

31,13013,267

12,733

6,716

5,650

6,895

3,503

6,291

5,223

3,982

3,761

30,124

4,509

14,522

8,181

5,137

Taxes

24,707

12,898

7,282

5,187

6,221

5,511

2,481

4,590

6,786

4,116

3,022

18,113

7,972

9,891

8,498

4,504

Utilities

22,491

19,367

13,280

6,241

5,541

5,357

2,539

5,413

5,239

3,159

2,665

28,868

4,648

16,599

8,656

3,892

Repairs and maintenance costs

4,951

319

799

2,144

978

926

614

2,918

372

1,366

184

2,188

631

1,812

377

395

274

256

177

102

88

93

42

66

76

48

42

332

62

161

122

56

Trust fees and other expenses

5,805

2,335

701

6,429

898

852

211

650

240

1,528

274

1,905

1,997

1,102

2,549

1,924

Insurance③ＮＯＩ （＝①-②） (\ Thousands)

159,866

119,810

68,404

19,64638,50047,827

19,11639,04951,12022,33635,16588,33939,34486,19274,90740,556④Depreciation (\ Thousands)

17,36048,52230,856

15,81911,277

12,313

4,220

7,919

9,535

10,626

13,247

77,591

5,055

14,76013,201

11,346⑤Rental operating income （＝③-④） (\ Thousands)

142,506

71,28837,548

3,827

27,22335,514

14,896

31,13041,585

11,70921,918

10,74734,28871,431

61,70529,210

-

1,570

4,147

5,607

6,240

420

2,901

-

316

980

470

17,688

140

198

920

-

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

159,866

118,240

64,257

14,03932,25947,407

16,21439,04950,804

21,356

34,69570,65039,20485,99473,98740,556

Expense ratio （＝②／①）

35.9%
49,415
8,348
3.35%

28.8%
25,797
5,878
3.49%

33.8%
14,459
3,505
3.39%

57.7%
10,374
1,349
2.90%

33.5%
12,441
1,966
3.40%

29.1%
11,007
2,352
3.49%

32.9%
4,961
971
3.41%

33.8%
9,757
2,000
3.39%

26.0%
13,569
2,452
3.55%

38.9%
8,230
1,201
3.29%

22.1%
6,041
1,638
3.63%

48.0%
36,225
5,269
3.10%

33.5%
15,942
2,010
3.40%

33.8%
19,782
4,417
3.39%

27.5%
16,996
3,636
3.52%

28.2%
9,009
1,980
3.51%

328,200
27,350204,910
17,075

157,210
13,10096,6408,053

120,300
10,02598,8208,235

51,4804,290

92,5407,711

93,8607,821

61,4805,123

26,0502,170

114,460
9,538

75,2206,268

230,330
19,194

207,750
17,312

31,1902,599⑥Capital expenditures (\ Thousands)

Ｐroperty tax for the year 2013 (\ Thousands)
Reference

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

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

-51-

【Reference】

a0661
a0671
a0681
a0711
a0721
a0731
a0741
a0751
a0771
a0781
a0831
a0841
Earnings Performance for the Individual Properties for the 17th Fiscal Period (May 1, 2013 to October 31, 2013) ：184days※As of October 31, 2013

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A71

A72

A73

A74

Property NameKDX Shinjuku
Building

A66

KDX Ginza
KDX Nihonbashi
1chome Building Honcho Building

KDX Iidabashi
Building

KDX HigashiShinagawa
Building

KDX Hakozaki
Building

KDX ShinNihonbashi
Building

Acquisition Date

February 18, 2010 November 12, 2010 November 12, 2010

Price Information

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

A67

A68

A75

A77

A78

KDX Nihonbashi
Kabutocho Nikko
Tachikawa
Kabutocho
Building Ⅱ
Ekimae Building
Building

a0851

a0861

a0871

A83

A84

A85

A86

Fuchu South
Building

KDX Kasuga
Building

KDX
Nakameguro
Building

KDX Omiya
Building

a0881

A87

A88

Itopia Nihonbashi Welship HigashiSA Building
Shinjuku

July 22, 2011

July 22, 2011

July 22, 2011

July 22, 2011

6,800
2.2%
6,851
6,420
2.3%
19
5,851.30
5,168.17

4,300
1.4%
4,276
5,000
1.8%
4
3,573.59
3,573.59

4,000
1.3%
3,997
4,350
1.6%
8
3,998.39
3,998.39

4,670
1.5%
4,653
5,040
1.8%
5
4,429.25
4,429.25

4,590
1.5%
4,873
4,870
1.7%
6
7,110.62
7,110.62

2,710
0.9%
2,850
2,850
1.0%
8
3,992.60
3,992.60

2,300
0.8%
2,241
2,480
0.9%
9
2,658.79
2,658.79

11,2703.7%
11,497
11,6004.2%
77,562.93
7,549.35

1,280
0.4%
1,272
1,560
0.6%
4
1,395.78
1,395.78

1,267
0.4%
1,311
1,370
0.5%
5
1,612.13
1,612.13

6,120
2.0%
6,156
6,700
2.4%
34
10,151.48
10,151.48

2,800
0.9%
2,864
3,290
1.2%
13
4,344.41
4,232.41

1,880
0.6%
1,900
2,260
0.8%
6
2,681.29
2,681.29

2,020
0.7%
2,137
2,380
0.9%
17
3,819.09
3,633.32

2,200
0.7%
2,225
2,270
0.8%
14
3,106.42
3,106.42

1,900
0.6%
1,915
2,140
0.8%
7
4,037.44
4,037.44

88.3%
96.5%
100.0%
97.7%
100.0%
100.0%
93.7%
93.8%
-

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

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

100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
89.2%
100.0%-

100.0%
100.0%
100.0%
100.0%
83.3%-

100.0%
100.0%
100.0%
100.0%
100.0%
-

99.8%
13.4%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%-

100.0%
97.2%
98.2%
-

97.4%
92.4%
95.7%
-

100.0%
100.0%
100.0%
-

95.1%
95.1%
-

100.0%-

100.0%-

December 26, 2011 December 26, 2011 December 26, 2011 September 21, 2012 September 21, 2012 September 21, 2012 March 26, 2013 August 19, 2013 September 13, 2013

Occupancy ratio
Lease Information

As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009

Income and Retained Earnings Information for the 17th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days

74days49days①Rental and other operating revenues ( \ Thousands)

221,220

135,384

138,008

165,643

180,038

114,751

81,984

43,23054,57963,879305,806

119,436

79,486

106,61747,906

20,858

Rental revenues

178,703125,289

127,651

148,303

157,898

103,093

74,62834,16048,412

54,697269,286

108,054

68,88887,701

36,082

16,539Other operating revenues

42,517

10,094

10,356

17,34022,14011,657

7,355

9,069

6,166

9,181

36,52011,382

10,597

18,915

11,823

4,318

82,25434,49133,93441,94956,15332,35424,701

97,056

16,333

20,122

97,62736,444

21,77638,349

8,593

6,392
2,918

②Property-related expenses (\ Thousands)
Property management fees

21,293

9,060

9,414

11,331

16,136

8,064

6,980

12,850

6,140

5,192

29,76911,275

6,660

12,818

4,520

Taxes

27,837

12,426

14,727

10,558

16,101

11,914

7,218

31,076

4,468

7,015

24,711

11,212

5,323

-

49

6

Utilities

29,040

8,581

8,324

17,745

21,606

10,6907,077

12,850

4,829

4,961

39,714

9,108

6,795

15,383

3,247

2,362

Repairs and maintenance costs

867

591

490

1,164

783

499

491

8,593

335

1,971

1,399

3,214

2,179

9,344

487

-

Insurance

285

131

131

155

239

174

102

344

60

75

446

170

99

151

47

47

Trust fees and other expenses

2,931

3,700

847

994

1,285

1,011

2,832

31,339

500

905

1,585

1,462

717

652

240

1,058

③ＮＯＩ （＝①-②） (\ Thousands)

138,965

100,892

104,073

123,694

123,884

82,39657,283

ᇞ53,825

38,24543,757208,179

82,992

57,70968,26739,312

14,465④Depreciation (\ Thousands)

15,276

11,622

9,739

15,846

25,68422,025

22,13871,366

9,878

3,520

43,70918,721

8,587

9,696

3,995

2,801

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

123,689

89,27094,334

107,847

98,19960,37135,144

ᇞ125,192

28,36740,236

164,470

64,27049,12158,57035,316

11,664⑥Capital expenditures (\ Thousands)

6,254

-

-

160

987

648

-

36,512

6,403

4,512

28,68235,523

4,286

42,336372-⑦ＮＣＦ （＝③-⑥） (\ Thousands)

132,711

100,892

104,073

123,534

122,897

81,74857,283

ᇞ90,338

31,842

39,244

179,496

47,46853,42225,931

38,94014,465

Expense ratio （＝②／①）

37.2%
55,676
7,350
3.32%

25.5%
24,840
4,821
3.56%

24.6%
29,441
4,940
3.58%

25.3%
21,116
5,904
3.56%

31.2%
32,203
6,202
3.45%

28.2%
23,829
4,023
3.51%

30.1%
14,4282,842
3.47%

224.5%
62,149
864
2.00%

29.9%
8,935
1,894
3.47%

31.5%
14,030
2,196
3.44%

31.9%
49,396
10,4893.43%

30.5%
22,423
4,131
3.46%

27.4%
10,646
2,799
3.52%

36.0%
13,482
3,569
3.35%

17.9%
13,560
1,779
3.72%

30.6%
21,043720
3.46%362,230
30,18580,6906,724

82,1806,848

117,560
9,796

256,450
21,370255,430
21,285102,390
8,532

549,760
45,813

69,160
5,763

121,540
10,128442,330
36,860204,470
17,039173,340
14,445

210,300
17,525337,220
28,101

214,340
17,861

Ｐroperty tax for the year 2013 (\ Thousands)
Reference

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

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

-52-

【Reference】

a0121
a0241
a0251
a0361
a0421
a0441
a0531
a0541
a0581
a0691
a0701
a0791
Earnings Performance for the Individual Properties for the 17th Fiscal Period (May 1, 2013 to October 31, 2013) ：184days※As of October 31, 2013

Type

Office Buildings

Location

Other Regional Areas

a0801

a0811

a0821

A12

A24

A25

A36

A42

A44

A53

A54

A58

A69

A70

A79

A80

A81

A82

Property Name

Portus Center
Building

KDX Minami
Semba Dai-1
Building

KDX Minami
Semba Dai-2
Building

KDX Niigata
Building

Karasuma
Building

KDX Sendai
Building

KDX HakataMinami Building

KDX Kitahama
Building

KDX Nagoya
Sakae Building

KDX KobayashiDoshomachi
Building

Kitananajo SIA
Building

KDX Nagoya
Ekimae Building

Nagoya Nikko
Shoken Building

Sendai Nikko
Building

KDX Higashi
Umeda Building

Acquisition Date

September 21, 2005

May 1, 2006

May 1, 2006 March 1, 2007 June 1, 2007

5,570
1.8%
4,447
4,680
1.7%
28
11,533.14
11,053.11

1,610
0.5%
1,498
983
0.4%
12
3,106.75
2,808.17

1,560
0.5%
1,339
978
0.4%
21
2,697.65
2,218.74

1,305
0.4%
1,436
886
0.3%
21
4,067.25
2,591.01

5,400
1.8%
5,321
4,990
1.8%
37
8,745.01
8,247.21

2,100
0.7%
2,113
1,460
0.5%
30
3,958.39
3,622.70

4,900
1.6%
4,752
3,310
1.2%
49
9,926.93
9,323.74

2,220
0.7%
2,158
1,530
0.5%
11
3,995.50
3,708.71

7,550
2.5%
7,289
4,800
1.7%
16
6,923.12
6,923.12

2,870
0.9%
2,596
2,720
1.0%
13
7,072.23
7,072.23

2,005
0.7%
2,050
2,050
0.7%
17
3,788.73
3,400.53

7,327
2.4%
7,829
7,600
2.7%
19
7,932.43
7,932.43

4,158
1.4%
4,249
4,050
1.5%
9
7,994.75
7,834.12

950
0.3%
1,051
1,030
0.4%
5
2,538.40
2,226.50

2,770
0.9%
2,784
3,350
1.2%
11
4,986.24
4,986.24

95.8%
98.6%
89.5%
89.5%
90.1%
95.8%
93.9%
88.5%
88.5%
93.4%

90.4%
82.9%
77.7%
86.0%
94.7%
95.6%
83.1%
83.1%
84.4%
96.9%

82.2%
94.1%
100.0%
90.4%
94.3%
100.0%
100.0%
94.1%
82.1%
88.1%

63.7%
61.9%
67.5%
64.1%
64.6%
66.7%
65.4%
64.3%
62.2%
73.2%

94.3%
98.3%
99.2%
100.0%
99.2%
94.2%
93.2%
93.9%
86.1%
93.0%

91.5%
96.8%
93.8%
96.7%
87.4%
99.1%
98.7%
92.8%
96.6%
91.2%

93.9%
94.9%
93.3%
86.0%
79.3%
75.4%
80.6%
86.2%
94.4%
95.8%

92.8%
92.8%
92.8%
89.2%
84.4%
92.8%
96.4%
96.4%
96.4%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
93.7%
90.3%
90.3%
72.3%
-

100.0%
93.5%
91.3%
95.6%
95.6%
91.0%
-

89.8%
94.4%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
93.8%
92.8%
-

98.0%
98.0%
98.0%
92.7%
-

87.7%
75.4%
75.4%
75.4%
-

100.0%
100.0%
95.5%
95.5%
-

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues ( \ Thousands)

299,070

46,43845,47349,603

213,942

86,340166,716

79,303

193,246

180,151

90,855311,144

208,443

54,376137,284
113,646

Price Information

Property No.

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)June 1, 2007 February 1, 2008 February 1, 2008 July 1, 2009 December 1, 2010 March 25, 2011 December 26, 2011 December 26, 2011 December 26, 2011 March 28, 2012

Occupancy ratio
Lease Information

As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009

Income and Retained Earnings Information for the 17th Fiscal Period

Rental revenues

238,606

35,77435,79841,456

180,956

74,339141,844

61,675

169,586

161,197

77,338266,279

180,071

47,219Other operating revenues

60,464

10,663

9,674

8,146

32,986

12,00024,872

17,62823,66018,954

13,51644,86428,371

7,156

23,638136,20232,43318,04525,65869,301

28,95252,65430,94059,09587,84738,919125,030

81,934

19,23640,922

Property management fees

76,066

6,193

5,222

10,81820,80911,672

14,403

7,666

18,12915,7899,580

31,468

27,112

6,014

9,827

Taxes

22,826

6,546

5,331

7,657

20,844

6,796

10,0404,609

20,552

11,673

8,687

35,83926,7796,915

12,488

Utilities

27,131

6,482

5,861

5,454

22,680

7,502

23,482

11,127

18,635

17,311

9,495

38,72023,1104,100

17,229Repairs and maintenance costs

7,134

6,110

814

353

2,430

1,282

3,039

1,719

1,133

13

7,798

16,882

2,913

186

370

Insurance

1,949

110

96

167

301

147

311

120

262

275

154

383

378

104

201

②Property-related expenses (\ Thousands)

Trust fees and other expenses

1,094

6,990

719

1,207

2,234

1,550

1,377

5,698

382

42,784

3,203

1,737

1,640

1,915

804

③ＮＯＩ （＝①-②） (\ Thousands)

162,868

14,00427,42723,945

144,640

57,387

114,062

48,362

134,150

92,30351,935

186,113

126,508

35,13996,362④Depreciation (\ Thousands)

51,456

13,744

12,101

13,89930,076

19,58936,024

14,656

71,61753,312

16,604

26,84012,921

6,507

35,336⑤Rental operating income （＝③-④） (\ Thousands)

111,411260

15,326

10,045

114,564

37,79778,03733,70662,532

38,99135,331

159,273

113,586

28,632

61,025⑥Capital expenditures (\ Thousands)

15,77475,381

-

331

2,257

1,341

11,796

1,826

10,177-776

219,028

26,749

3,006

7,585

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

147,093

ᇞ61,376

27,427

23,613

142,383

56,045102,265

46,536

123,972

92,30351,159

ᇞ32,91499,75832,13388,776

Expense ratio （＝②／①）

45.5%
47,201
9,427
3.15%

69.8%
13,094
1,233
2.66%

39.7%
10,662
1,487
3.27%

51.7%
14,990
1,500
3.03%

32.4%
41,626
7,318
3.42%

33.5%
13,593
2,933
3.40%

31.6%
20,081
5,730
3.44%

39.0%
9,218
2,605
3.29%

30.6%
41,108
6,681
3.46%

48.8%
23,347
5,560
3.09%

42.8%
17,377
2,914
3.21%

40.2%
71,678
10,1483.26%

39.3%
53,559
6,835
3.28%

35.4%
13,831
1,826
3.36%

29.8%
24,9774,768
3.47%

527,651
43,970140,130
11,677

122,820
10,235219,160
18,263

262,560
21,880223,960
18,663

185,690
15,474

136,270
11,35595,4507,954

87,3407,278

202,790
16,899737,870
61,489413,140
34,428

181,590
15,132

107,610
8,967

Ｐroperty tax for the year 2013 (\ Thousands)
Reference

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

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

A-58 KDX Nagoya Sakae Building: The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.
A-69 KDX Kobayashi Doshomachi Building: The rent for land to the land owner (Kobayashi Pharmaceutical Co., Ltd.) is stipulated according to specific terms under the land lease agreement and the annual rent
to be paid is ￥80.7 million until August 2014.

-53-

【Reference】

b0031
b0191
b0181
c0011
c0021
c0041
85
Earnings Performance for the Individual Properties for the 17th Fiscal Period (May 1, 2013 to October 31, 2013) ：184days

Type

Residential Properties

Location

Tokyo Metropolitan Area

Property No.
Property Name
Acquisition Date

※As of October 31, 2013

Central Urban Retail Properties
Other
Regional
Areas
B18

B03

B19

Court Mejiro

Residence
Charmante
Tsukishima

Tokyo Metropolitan Area

Venus
Hibarigaoka

C01

C02

C04

Frame Jinnanzaka

KDX Yoyogi
Building

Ginza 4chome
Tower

Total of 85
Properties

August 1, 2005 May 1, 2006 December 8, 2005 August 1, 2005 September 30, 2005 August 19, 2013

Price Information

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

1,250
0.4%
1,146
973
0.3%
20
2,046.79
2,046.79

5,353
1.8%
4,847
4,600
1.6%
1
7,711.14
7,711.14

1,800
0.6%
1,745
1,560
0.6%
111
12,829.64
12,084.74

9,900
3.2%
9,643
9,420
3.4%
12
4,653.40
4,653.40

2,479
0.8%
2,519
1,950
0.7%
11
1,177.00
1,177.00

9,800
3.2%
9,854
10,5003.8%
45,624.23
5,624.23

304,800
100.0%
302,127
279,238
100.0%
1,058
358,517.31
343,529.88

100.0%
90.1%
100.0%
95.2%
100.0%
91.3%
95.2%
95.2%
85.3%
96.1%

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

94.2%
96.3%
96.1%
95.0%
99.5%
96.7%
92.4%
96.3%
96.5%
98.9%

100.0%
100.0%
100.0%
100.0%
89.5%
100.0%
100.0%
100.0%
93.6%
96.0%

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

100.0%
-

95.8%
93.9%
95.5%
95.4%
94.7%
94.6%
93.6%
94.4%
94.7%
95.7%

Occupancy ratio
Lease Information

As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009

Income and Retained Earnings Information for the 17th Fiscal Period

Operating periods

184days184days184days184days184days

74days①Rental and other operating revenues ( \ Thousands)

38,814

149,371

91,587

268,979

74,691

113,990

Rental revenues

35,327132,064

81,546245,439

60,231

99,0338,233,893

Other operating revenues

3,486

17,307

10,04023,54014,46014,957

1,264,360
3,142,987②Property-related expenses (\ Thousands)

179days *Total: Cost-weighted average management period (days)
9,498,253

13,23342,01432,41459,703

15,185

19,909Property management fees

2,748

16,601

8,255

18,263

4,724

8,068

950,806

Taxes

2,995

10,011

7,608

15,7144,278

9845,575

Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses

944

1,752

2,173

22,421

5,020

11,124

928,604

2,344

4,831

7,642

1,426

-

351

173,603

67

289

310

155

37

63

14,367

4,134

8,528

6,423

1,722

1,124

291

230,029③ＮＯＩ （＝①-②） (\ Thousands)

25,581

107,357

59,173

209,276

59,506

94,081

6,355,266④Depreciation (\ Thousands)

11,69045,87021,436

58,685

9,291

17,3701,695,996
4,659,269⑤Rental operating income （＝③-④） (\ Thousands)

13,89061,48637,736

150,590

50,21476,711⑥Capital expenditures (\ Thousands)

2,907

-

-

-

1,120

-

894,028⑦ＮＣＦ （＝③-⑥） (\ Thousands)

22,673

107,357

59,173

209,276

58,386

94,081

5,461,237

Expense ratio （＝②／①）

34.1%
5,990
1,314
3.39%

28.1%
20,021
4,532
3.03%

35.4%
15,217
3,076
3.36%

22.2%
31,427
9,760
3.63%

20.3%
8,557
2,738
3.67%

17.5%
41,836
4,246
3.73%

33.1%
1,782,429
323,915
3.41%

74,6506,220

301,520
25,126

339,440
28,28682,3306,860

39,1603,263

161,290
13,44014,538,651
1,211,554

Ｐroperty tax for the year 2013 (\ Thousands)
Reference

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

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

-54-

【Reference】

a0761
86
Earnings Performance for the Individual Properties for the 17th Fiscal Period (May 1, 2013 to October 31, 2013) ：184days

Type

Office Buildings
Tokyo
Metropolitan
Area
A76

Location
Property No.

Total 1 sold of
Properties

Property Name

Ikebukuro Nikko
Building

Acquisition Date

December 26, 2011

Total of 86
Properties

Price Information

1,653
100.0%
1,970
1,672
234
-

1,653
100.0%
1,970
1,672
234
-

-

100.0%
100.0%
100.0%---

Operating periods

10days10days①Rental and other operating revenues ( \ Thousands)

3,446

3,446

9,501,700

3,108

3,108

8,237,001

338

338

1,264,698

5,991

5,991

3,148,978Acquisition price (\ Millions)
Percentage of total portfolio
Revenue from sale of in the investment property(\ Millions)
Costs of the investment property (\ Millions)
Gain / Loss on sale of real estate(\ Millions)
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)Occupancy ratio

Lease Information

As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009

Income and Retained Earnings Information for the 17th Fiscal Period

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

178days *Total: Cost-weighted average management period (days)

218

218

951,025

Taxes

5,514

5,514

851,090

Utilities

217

217

928,822--

173,603

Property management fees

Repairs and maintenance costs
Insurance

4

4

14,371

Trust fees and other expenses

35

35

230,065-2,544-2,544

6,352,721

851

851

1,696,848-3,396-3,396

4,655,873--

894,028⑦ＮＣＦ （＝③-⑥） (\ Thousands)-2,544-2,544

5,458,693

Expense ratio （＝②／①）

173.8%
68
2.00%

173.8%
68
2.00%

33.1%
323,984
3.41%

-

-

-

③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)

Ｐroperty tax for the year 2013 (\ Thousands)
Reference

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

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

Note:The Investment Corporation has sold Ikebukuro Nikko Building on May 10, 2013.

※As of October-55-

(Reference) Borrowings
Borrowings on a financial institution basis as of October 31, 2013 are as follows.
Classification

LenderDrawndown Date

Short-Term Payable

5,000,000

2.731

January 29, 2010

1,032,000
1,897,500
1,402,500
825,000
412,500
1,700,000
1,200,000
800,000
2,300,000
800,000
200,000
700,000
800,000
3,000,000
500,000
2,000,000
1,000,000
1,500,000
1,000,000
1,500,000
2,500,000

1,008,000
1,840,000
1,360,000
800,000
400,000
1,650,000
1,200,000
800,000
2,300,000
800,000
200,000
700,000
800,000
3,000,000
500,000
2,000,000
1,000,000
1,500,000
1,000,000
1,500,000
2,500,000

2.173 January 30, 2015

August 19, 2013

Sumitomo Mitsui Banking Corporation
September 13, 2013
October 31, 2013

Sub Total
July 30, 2010

Development Bank of Japan Inc.
Aozora Bank, Ltd.

September 1, 2006
March 31, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

September 30, 2011

Resona Bank, Ltd.

October 29, 2010

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

November 12, 2010

Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited

December 1, 2010

Current Potion of Long-Term Payable

Aozora Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited

July 30, 2010

Sumitomo Mitsui Banking Corporation

January 31, 2011

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

March 12, 2012

Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited

September 30, 2011

Mitsubishi UFJ Trust and Banking Corporation (Note 3)

July 13, 2011

Sumitomo Mitsui Banking Corporation (Note 3)

July 30, 2010

Sumitomo Mitsui Banking Corporation (Note 3)
Sumitomo Mitsui Trust Bank, Limited (Note 3)

July 29, 2011

Resona Bank, Ltd. (Note 3)
Sumitomo Mitsui Trust Bank, Limited (Note 3)
Sumitomo Mitsui Trust Bank, Limited (Note 3)
Mizuho Trust & Banking Co., Ltd. (Note 3)

September 1, 2011
March 22, 2011
September 30, 2011

Development Bank of Japan Inc. (Note 3)
Sumitomo Mitsui Banking Corporation (Note 3)
Resona Bank, Ltd. (Note 3)

December 26, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Note 3)
Sub Total
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited

February 18, 2010

Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation

April 2, 2010

Sumitomo Mitsui Banking Corporation

Long-Term Payable

Resona Bank, Ltd.

November 12, 2010

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

December 1, 2010

Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Remarks

5,000,000

January 31, 2013

Mizuho Bank, Ltd.

Resona Bank, Ltd.

Usage

May 1, 2006

Mitsubishi UFJ Trust and Banking Corporation

Mitsubishi UFJ Trust and Banking Corporation

Payment
MethodJuly 31, 2013
0.730
0.680 October 31, 2013
0.680 January 31, 2014
0.550
November 29, 2013 Full on
Unsecured/(Note 2)0.600
maturity
Unguaranteed
0.600 February 19, 2014
0.570
March 13, 2014
0.570
0.548 October 31, 2014

October 31, 2012

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Last Repayment
Date

1,200,000
1,000,000
1,000,000
1,000,000
1,000,000
900,000
3,000,000
9,100,000
1,500,000
800,000
400,000
500,000
200,000
100,000
3,700,000
1,300,000
2,250,000
1,800,000
1,800,000
450,000
2,500,000
1,000,000
3,700,000
2,200,000
1,000,000
300,000
1,000,000
2,700,000
1,000,000
2,500,000
2,000,000
2,000,000
1,000,000
37,700,000

July 31, 2012

Mitsubishi UFJ Trust and Banking Corporation

Aozora Bank, Ltd.

Average
Balance at theInterest
End of Period
Rate (%)(\Thousands)(Note 1)1,500,000
3,000,000
1,200,000
5,700,000
500,000
3,000,000
2,000,000
1,000,000
500,000
1,500,000
800,000
400,000
500,000
200,000
100,000
3,700,000
1,300,000
2,250,000
1,800,000
1,800,000
450,000
2,500,000
1,000,000
3,700,000
2,200,000
1,000,000
300,000
1,000,000
2,700,000
1,000,000
2,500,000
2,000,000
2,000,000
1,000,000
44,700,000

Mitsubishi UFJ Trust and Banking Corporation

Mizuho Trust & Banking Co., Ltd.

Balance at the
Beginning of
Period(\Thousands)

January 31, 2011
February 28, 2011
March 31, 2011
April 28, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

August 31, 2011

Sumitomo Mitsui Banking Corporation

September 30, 2011

-56-

July 31, 2013
1.488
2.124 August 31, 2013
1.525
September 30, 2013
1.151
1.463 October 31, 2013

1.584
November 12, 2013

1.317
1.660
January 31, 2014
1.570

0.956

March 12, 2014

Full on
Unsecured/(Note 2)maturity
Unguaranteed

1.161 March 31, 2014
July 14, 2014
1.535
1.731
1.030
July 31, 2014
1.030
1.398
1.149 August 29, 2014
1.630 September 22, 2014
1.270 September 30, 2014
1.239
1.261

October 31, 2014

April 30, 2016

Full onmaturity(Note 4)2.190 February 18, 2015 (Note 5)

2.220

April 2, 2015

(Note 6)

1.789 November 12, 2015
2.023 November 12, 2017
1.461 November 12, 2015
2.206 November 12, 20171.939 January 29, 2016
Full on1.912 August 31, 2015 maturity
1.952 January 29, 2016
1.905 January 29, 2016
1.306 March 31, 2016
1.859 October 31, 2015
1.886 January 29, 2016
0.986 February 27, 2015
1.289 March 31, 2015

(Note 2)

Unsecured/
UnguaranteedClassification

LenderDrawndown Date

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation

December 26, 2011

Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation

January 10, 2012

Mitsubishi UFJ Trust and Banking Corporation

January 31, 2012

Mizuho Bank, Ltd.

March 12, 2012

The Bank of Fukuoka, Ltd.
Sumitomo Mitsui Banking Corporation

March 28, 2012

Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited

March 30, 2012

Aozora Bank, Ltd.

April 27, 2012

Resona Bank, Ltd.

June 29, 2012

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.

September 21, 2012

Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Aozora Bank, Ltd.

Long-Term Payable

Sumitomo Mitsui Trust Bank, Limited

October 31, 2012

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

December 10, 2012

Development Bank of Japan Inc.
The Bank of Fukuoka, Ltd.

December 28, 2012

Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited

January 15, 2013

Aozora Bank, Ltd.

February 18, 2013

Resona Bank, Ltd.
Sumitomo Mitsui Banking Corporation

March 26, 2013

Mitsubishi UFJ Trust and Banking Corporation

April 30, 2013

Mitsubishi UFJ Trust and Banking Corporation

July 31, 2013

Resona Bank, Ltd.

July 31, 2013

Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.

August 19, 2013

The Bank of Fukuoka, Ltd.
Hiroshima Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.
The 77 Bank, Ltd.
The Higashi-Nippon Bank, Limited

August 30, 2013

Development Bank of Japan Inc.
Aozora Bank, Ltd.

September 30, 2013

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

September 30, 2013

Resona Bank, Ltd.

October 31, 2013
Sub Total
Total

Balance at the
Beginning of
Period(\Thousands)

Average
Balance at theInterest
End of Period
Rate (%)(\Thousands)(Note 1)2,500,000
2,500,000
2,500,000
2,500,000
2,000,000
2,000,000
2,500,000
2,500,000
2,500,000
2,500,000
2,000,000
2,000,000
2,500,000
2,500,000
1,500,000
1,500,000
1,000,000
1,000,000
500,000
500,000
1,400,000
1,400,000
1,000,000
1,000,000
2,000,000
2,000,000
1,000,000
1,000,000
1,500,000
1,500,000
5,000,000
5,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,500,000
2,500,000
2,500,000
2,500,000
1,500,000
1,500,000
2,500,000
2,500,000
2,500,000
2,500,000
500,000
500,000
2,000,000
2,000,000
500,000
500,000
500,000
500,000
1,000,000
1,000,000
1,500,000
1,500,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,500,000
500,000
1,000,000
1,000,000
500,000
500,000
500,000
700,000
500,000
300,000
1,500,000
1,800,000
900,000
500,000
85,969,500
97,458,000
136,369,500 144,258,000

Last Repayment
Date

1.338
1.315
1.338
1.439
1.415
1.439
1.269
1.190
1.075
1.364

Payment
MethodUsage

Remarks

October 31, 2015

October 31, 2016
January 29, 2016
January 30, 2015
March 12, 2015
March 28, 2017

1.770

March 28, 2019

1.211 September 30, 2015
1.271 October 30, 2015
June 30, 2017
1.286
1.158 September 21, 2017
1.008 April 30, 2015
1.061
October 31, 2016
1.045
1.096 October 31, 20171.253 October 31, 2018 Full on
Unsecured/(Note 2)
Unguaranteed
0.983 December 12, 2016 maturity
1.013 December 28, 2016
1.086

December 28, 2017
December 29, 20170.974 January 15, 2017
0.840 February 18, 2016
1.036

March 26, 2018

0.730 April 30, 2016
July 29, 2016
0.630
July 31, 2018
0.730
0.950
0.950
0.950 August 19, 2018
0.950
0.969
1.080
1.080 August 31, 2018
1.080
1.420 August 31, 2020
1.059 September 30, 20191.059 September 30, 20190.887 October 31, 2018

Notes:
1. The average interest rate is the weighted-average interest rate for the fiscal period and figures are rounded at third decimal places. 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: April 30, 2010 to January 30, 2015: repayment of 24,000 thousand yen every 6 months, and January 30, 2015: repayment of 960,000 thousand yen
5. Repayment Method: February 26, 2010 to February 18, 2015: repayment of 137,500 thousand yen every 6 months, and February 18, 2015: repayment of
4,125,000 thousand yen
6. Repayment Method: August 31, 2010 to Apri 2, 2015: repayment of 50,000 thousand yen every 6 months, and April 2, 2015: repayment of 1,500,000 thousand yen-57-