Translation Purpose Only

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED APRIL 30, 2008
(November 1, 2007 to April 30, 2008)

June 11, 2008

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

Taisuke Miyajima, Executive Director

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

Taisuke Miyajima, CEO and President

Inquires:

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

Planned submission of semiannual security report: July 25, 2008
Planned start of distribution payments:

July 10, 2008

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED APRIL 30, 2008 (SIXTH FISCAL PERIOD)(1) Business Results(The amount is rounded down to the nearest ¥million)
Operating Revenues
Sixth
Fiscal Period
Fifth Fiscal
PeriodOperating Income¥8,582(19.1%)

4,065(17.1%)

3,343(19.7%)¥7,208(24.7%)

3,470(29.2%)

2,793(30.0%)Net Income
Sixth
Fiscal Period
Fifth Fiscal
PeriodOrdinary Income

Net Income

Return on

Ordinary Income Ordinary Income toper Unit

Unitholders’ Equity

to Total Assets

Operating Revenues

3,342(19.7%)

16,711

2.6%

1.5

39.0%

2,792

(30.0%)

14,334

2.6%

1.4

38.7%

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

Total Distribution

Excluding Excess(Millions of Yen)of Earnings
Sixth
Fiscal Period
Fifth Fiscal
PeriodDistributions in

Total Distributions

Excess of Earnings

in Excess ofper Unit (Yen)

Earnings

Distribution Ratio
Payout Ratio

to Unitholders’Equity¥16,711¥3,342－－100.0%

2.6%¥13,960¥2,792－－100.0%

2.2%

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

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Share(Millions of Yen)

(Millions of Yen)

to Total Assetsof Common Stock (Yen)¥230,520¥128,31455.7%¥641,570¥213,763¥127,761

59.8%¥638,809(Reference) Total net assets
Sixth fiscal period: ¥128,314 million

Fifth fiscal period: ¥127,761 million

Sixth
Fiscal Period
Fifth Fiscal
Period-1-

（The amount are rounded down to the nearest ¥million.）(4) Cash Flow Position

Sixth
Fiscal Period
Fifth Fiscal
PeriodCash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents at

Operating Activities

Investing Activities

Financing Activities

End of Period

36,143△47,793

11,46011,141

4,706△ 21,935

20,954

11,331

2．FORECAST OF RESULTS FOR THE SEVENTH FISCAL PERIOD (May 1, 2008 to October 31, 2008)

SeventhFiscal Period

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

8,174

3,919

3,003

3,002 (△10.2%)(△4.8%)(△3.6%)(△10.2%)Distribution perDistribution in

Unit(Yen)Excluding

Excess of Earings

Excess of Earnings

per Unit (Yen)

15,000-(Reference) Estimated net income per unit for the seventh fiscal period: ¥15,000

3．OTHER(1) Changes in Accounting Policies(a) Changes accompanying amendments to accounting standards: No(b) Changes other than (a): No(2) Number of Investment Units Issued and Outstanding (including treasury units)(a) Number of investment units issued and outstanding at end of period (including treasury units)
Sixth fiscal period: 200,000 units
Fifth fiscal period: 200,000 units(b) Number of treasury units at end of period
Sixth fiscal period: 0 units
Fifth fiscal period: 0 units*Explanation on the appropriate use of the forecast of results and other matters of special consideration
The forecast of results for the seventh fiscal period ending October 31, 2008 are calculated as of June 11, 2008 based on theassumptions presented on page 10 “Preconditions and Assumptions for the Fiscal Period Ending October 31, 2008”. Readers areadvised that actual operating revenues, operating income, ordinary income, net income, distribution per unit may differ significantly
from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of the forecast
distribution per unit.

-2-

Investment Highlights
Kenedix Realty Investment Corporation (“the Investment Corporation”) today announced the financial results for its sixth
fiscal period (from November 1, 2007 to April 30, 2008).
In the sixth fiscal period, the Investment Corporation recorded operating revenues of ¥8,582 million, operating income of¥4,065 million, ordinary income of ¥3,343 million and net income of ¥3,342 million. As a result, cash distribution for the
fiscal period under review was ¥16,711 per unit.

Management Performance
In the fiscal period under review, the Investment Corporation sold 23 residential properties (initial total acquisition price of¥30,343 million) to a wholly owned subsidiary of Kenedix, Inc. and acquired 9 office buildings (total acquisition price of¥31,980 million) from a wholly owned subsidiary of Kenedix, Inc. on February 1, 2008. In addition, the Investment
Corporation acquired 5 office buildings (total acquisition price of ¥14,121 million). As a result, the number of properties
owned as of April 30, 2008 stood at 68, with a total acquisition price of ¥212,848 million.
Looking at the portfolio as a whole, 86.4% was comprised of office buildings, 7.5% of central urban retail properties and5.9% of residential properties on an acquisition price basis. The occupancy ratio as of the end of the sixth fiscal period was
95.9%, reflecting stable investment and asset management.

Capital Acquisition
The Investment Corporation undertook borrowings of ¥15.0 billion to support the acquisition of additional assets andrefinanced ¥1.5 billion during the sixth fiscal period to total of ¥16.5 billion in borrowings (¥15.0 billion in long-termborrowings and ¥1.5 billion in short-term borrowings (Note 1)).
As a result, the balance of interest-bearing debt stood at ¥89.75 billion as of April 30, 2008, comprising ¥77.75 billion inborrowings (¥72.0 billion in long-term borrowings and ¥5.75 billion in short-term borrowings) and ¥12.0 billion in
investment corporation bonds.
As of April 30, 2008, the Investment Corporation had ¥45.3 billion in long-term borrowings, of which ¥45.3 billion had
floating interest rates effectively fixed by utilizing interest-swap agreements. In addition, the long-term debt ratio (Note 2)
was 93.5% and the long-term fixed interest debt ratio (Note 3) was 93.5%.
Since its public listing through to the end of the sixth fiscal period, the Investment Corporation has undertaken flexible debt
funding on both an unsecured and unguaranteed basis. This is the result of the high standing in which the Investment
Corporation, its investment policies, asset quality as well as the personnel and expertise of the Asset Management
Company are held among financial institutions. In addition, the Investment Corporation strives to diversify repayment
dates for its debt financing in an effort to reduce refinancing risk. The Investment Corporation also strives to extend average
repayment periods by placing added emphasis on long-term debt.
Notes:
1. Short-term borrowings refers to borrowings with a period of less than or equal to one year from the drawdown dateto the repayment date. Long-term borrowings refers to borrowings with a period of more than one year from thedrawdown date to the repayment date.
2. Long-term debt ratio＝（Balance of long-term borrowings＋Balance of investment corporation bonds）÷（Total borrowings＋Balance of investment corporation bonds）. Long-term debt ratio is rounded down to the nearest first decimal place.
3. Long-term fixed interest debt ratio＝（Balance of long-term fixed interest rate borrowings＋Balance of investment
corporation bonds）÷（Total borrowings＋Balance of investment corporation bonds）
The balance of long-term fixed interest rate borrowings includes borrowings with floating interest rates effectively fixed byutilizing interest-rate swap agreements. Long-term fixed interest debt ratio is rounded down to the nearest first decimal place.
3

Continue Stable Financial Strategy
The Investment Corporation acquired a credit rating of A+ (Outlook: Stable) from Japan Credit Rating Agency, Ltd. in
December 2006. This was the second credit rating acquired following the A3 (Outlook: Stable) from Moody’s InvestorsServices, Inc. in February 2006. Details of the credit ratings as of April 30, 2008 are as follows.
Credit Rating Agency

Details of the Ratings
Rating：A3
Outlook：Stable
Senior Debts：A+
Outlook: Stable

Moody’s Investors Service
Japan Credit Rating Agency, Ltd.

The Investment Corporation filed a debt shelf registration statement in February 2007, and filed an equity shelf registration
statement to conduct equity financing in April 2007. Details are as follows.
Investment Corporation Bonds

Investment Unit Certificate

Planned Issue Amount¥100,000,000,000 (Note)¥100,000,000,000

Planned Issuance Period

February 15, 2007 to February 14, 2009

May 7, 2007 to May 6, 2009

Acquisition funds for specified assets, Acquisition funds for specified assets,
repayment of borrowings, repayment of
repayment of borrowings, repayment ofinvestment corporation bonds, refund of investment corporation bonds, refund of
Use of Funds
lease and guarantee deposits, funds to pay for lease and guarantee deposits, funds to pay forrepairs and maintenance, working capital, repairs and maintenance, working capital,
etc.
etc.
Note: First Series Unsecured Investment Corporation Bonds of ¥9,000,000,000 and Second Series Unsecured Investment
Corporation Bonds of ¥3,000,000,000 has been issued in March 2007 based on the debt shelf registration.

The Investment Corporation established a credit commitment line with Citibank Japan, Ltd. in January 2008, allowing it toborrow up to ¥2.5 billion on an unsecured basis. In addition, the Investment Corporation once again established a credit
commitment line with The Bank of Tokyo-Mitsubishi UFJ, Ltd. in March 2008, allowing it to borrow up to ¥2.5 billion on an
unsecured basis.

Internal Growth Strategies
Taking into consideration economic and real estate market trends, the Investment Corporation adopts a tenant-oriented
approach to its leasing activities with aims of ensuring a timely and flexible responses as well as optimal tenant satisfaction.
Accordingly, the Investment Corporation will aim to increase the cash flow by offering office environment with high tenantsatisfaction. Based on the aforementioned, Kenedix REIT Management, Inc. (“the Asset Management Company”) undertakes
property management activities as follows:・Identify and enhance satisfaction through use of tenant surveys
・Maintain attractive properties based on KDX standards
・Leasing management based on CS Strategy
・Careful control of management and operating costs
The Investment Corporation has appointed the Asset Management Company as its property management company for its
entire portfolio. In addition, the Investment Corporation has changed its property management company for the properties held4

as of February 1, 2008 to the Asset Management Company from Kenedix Advisors Co., Ltd. In establishing a single point ofcontact for all matters relating to property management activities, the Investment Corporation strives to secure consistentpolicies, specifications and procedures along with ensuring swift and quality service. As of April 30, 2008, the investment
portfolio maintains a high occupancy ratio. The Investment Corporation is satisfied with the quality of property management.
The Investment Corporation leverages scale merits and the communication and negotiation skills of the Kenedix Group in
an effort to reduce operating costs, and have succeeded reductions in building maintenance costs.
Change of Property Management Structure(1) Reasons of the Changes
The Investment Corporation had been entrusting Kenedix Advisors Co., Ltd., a subsidiary of the AssetManagement Company’s sponsor company, Kenedix, Inc. as its sole property management company for theentire portfolio. However, in view of the following matters, the structure was shifted to which the AssetManagement Company will independently conduct the property management duties.
・A structure which the Asset Management Company independently conducts property management in aconsistent manner by conducting prompt and unified management of multiple investment properties andadvancing activities in close relation to properties and tenants is viewed to be a more ideal structure.
・Kenedix Advisors Co., Ltd. revised its business details internally in effect of enactment of the Financial
Instruments and Exchange Law.
Furthermore, in correlation with the above change, the master lease undertaken by Kenedix Advisors Co., Ltd.
(pass-through type of lease for all of its properties) was shifted to a structure under which the Investment
Corporation will independently undertake the master lease.
With these changes, the Asset Management Company has changed its organization. Details are provided in “(2)Change of the Organization”. Fees related to the property management are at the same level as the fees set in theproperty management agreement executed with Kenedix Advisors Co., Ltd.
(2) Change of the Organization
The Asset Management Company’s organization has changed as follows to enable the Asset Management
Company to conduct the property management business (operational management business) on its own forproperties owned by the Investment Corporation.
・The “Property Management Division” was established as a dedicated department to conduct the operationand management for properties owned by the Investment Corporation. In addition, the “Property Management
Group” and the “Engineering Group” was established under the “Property Management Division.”・The “Real Estate Investment Group” under the “Investment Management Division” has changed its name tothe “Asset Investment Group.” This was done from the perspective of creating uniformity among groupnames under each division.
A majority of the members of the dedicated division at Kenedix Advisors Co., Ltd. (REIT Management
Division) that has been handling the operation and management of properties in the Investment Corporation’s
portfolio were assigned to the Property Management Division.
Identify and enhance tenant satisfaction through use of tenant surveys
The Investment Corporation recognizes each tenant as a key customer and strives to enhance customer satisfaction
and raise the competitiveness of its properties as the means to maintain and increase earnings.
The Investment Corporation conducted a customer satisfaction survey through J.D. Power Asia Pacific, Inc., aninternationally recognized company that engages in customer satisfaction evaluation, to better understand theneeds of its tenants and take steps to respond to their preferences. As a part of this survey the administration
officers of each tenant and tenant employees were asked to respond to many questions concerning buildings andfacilities as well as operating and management services. The Investment Corporation conducted the first CS survey,
5which covered 20 of its properties, during the second fiscal period, and the second CS survey, which covered 44 of
its properties, during the fifth fiscal period.
In addition, concerning properties where construction was conducted to address customer satisfaction based on the
results of the first survey, and for the second survey, the effects of such construction (improvements in the level ofsatisfaction) were studied. The results confirmed that the effects of maintenance and renovations of the “external
façade and entrance” and “toilets” were high. The Investment Corporation will use this as reference fordetermining the priority of maintenance and renovations in the future.
Through these means, the Investment Corporation is working efficiently to generate improvements in rent levels
and asset values, increase earnings and promote sustained internal growth.
Maintain attractive properties based on KDX standards
The Investment Corporation aims to provide attractive mid-sized office buildings in order to enhance portfolio
value and rental revenues.
We believe that the quality of mid-sized office buildings in Japan vary considerably depending on the nature of theowner. For example, a building owned by an individual or small company that owns only one or a few buildings
may not have the resources to provide high-quality maintenance. Furthermore, when a building is owned by alarge company, property management is often dictated by that company’s priorities and does not necessarily
correspond to tenant needs or satisfaction.
The Investment Corporation aims to differentiate itself by efficiently providing certain uniform standards, termed“KDX” standards, as well as attractive office environments.
Examples of KDX standards include the followings:
・ Installation of security cameras for elevators and entrance halls
・ Installation of emergency devices for elevators
・ Installation of modern restrooms that include western-style toilets with hot-water self-cleaning
functions・ Creation and distribution of security and evacuation maps
・ Creation and distribution of detailed building rules
In addition, the Investment Corporation enhances its brand awareness by renaming its office buildings so that“KDX” is included in the new name.
Leasing management based on CS Strategy
The Investment Corporation aims to provide flexible and focused leasing activities that take into accounteconomic and market trends, and that are based on utilizing the results of tenant surveys and implanting
renovation work for lease-up in view of potential tenants to enhance tenant satisfaction.
In addition, the Investment Corporation believes that tenants at mid-sized office buildings generally tend to havehigh turnover ratios, and it is focused on obtaining higher rent levels when entering new lease contracts. The
Investment Corporation also negotiates with tenants that pay lower rent levels than the market price in order toraise rents under existing leases.
Careful control of management and operating costs
The Investment Corporation utilizes the scale merits of owning many properties and the negotiating strength of
the Kenedix Group (the Kenedix Group refers to Kenedix, Inc., Kenedix Advisors Co., Ltd. and other relatedcompanies, the same applies below) to reduce building management costs. Accordingly, the Investment
6

Corporation reduces property management expenses, electricity costs and property taxes. The Investment
Corporation will continue to carefully control management and operating costs by periodically reviewing its
property management standards to ensure that they remain relevant and appropriate for each property, and by
maintaining an appropriate balance between initiatives that aim to sustain or increase revenues with its efforts tocontrol operating costs.
The Investment Corporation has appointed the Asset Management Company as its sole property management company
for the entire portfolio as of the end of the sixth fiscal period. In establishing a single point of contact for all mattersrelating to property management activities, the Investment Corporation strives to secure consistent policies, specifications
and procedures along with ensuring swift and quality service.
・New Property Investment Strategy (External Growth Strategy)
The Investment Corporation will continue to concentrate on mid-sized office buildings with an emphasis on the Tokyo
Metropolitan Area while also investing in central urban retail property located in highly flourishing districts of Tokyo
Metropolitan Area as an alternative to investment in office buildings. In addition, the Investment Corporation will makeno new investment in residential properties.
We will take consideration the market environment and asset size in making decisions regarding the disposal of residential
properties. Furthermore, the Investment Corporation will consider replacement of assets to increase the weight ofinvestment in the Tokyo Metropolitan Area and to increase the asset size of the portfolio. To facilitate the implementationof the aforementioned investment policy, the Investment Corporation will leverage the “Multi-Pipeline” provided by the
support of the Kenedix Group, in addition to the original network of the Asset Management Company.
Through the Multi-Pipeline, the Asset Management Company is positioned to secure real estate information related toproperties for which the Kenedix Group acts as intermediary, properties under development, properties that it owns, andpension funds (Note). Based on this information, the Investment Corporation has first preferential negotiating rights for an
acquisition. Against the backdrop of a competitive market, the role of the support-line by Kenedix Group, mainly inproperties under development is increasingly significant for the Asset Management Company’s acquisition of quality
properties.
Note: Pension Funds refer to real estate investment funds for pension plans that are managed by Kenedix Advisors Co.,
Ltd.
Another key role of the support-line is to facilitate property acquisition through the warehousing function. Under thewarehousing function, members of the Kenedix Group may acquire or temporarily hold an investment property sourced
from the original network of the Asset Management Company in the event that the Investment Corporation is not itself in
an immediate position to acquire the property, or the property fails to fully comply with the Investment Corporation’s
investment criteria at that specific time.
The Investment Corporation seeks to continue improving the quality of its portfolio in terms of location, size and type of
properties, through various measures including replacement of assets. In addition, the Investment Corporation willcontinue to steadily grow by acquiring properties and aims accelerate this growth by utilizing its leverage relationship with
the Kenedix Group and the Asset Management Company’s original network for sourcing properties, as well as makediversified acquisitions, as discussed below.
Leverage Relationship with the Kenedix GroupAs the sponsor company, Kenedix, Inc. has provided property information and support staff to the Investment
Corporation and the Asset Management Company. At the same time, the Investment Corporation believes thatthe role of J-REITs in the Kenedix Group has increased in importance.
7

In April 2007, the Investment Corporation revised the Memorandum of Understanding between it, Kenedix,
Inc., Kenedix Advisors Co., Ltd. and the Asset Management Company, which was originally conducted at thetime of the Investment Corporation’s IPO. The Investment Corporation revised the Memorandum because it
had been expanding the number of acquired properties and strengthening its property acquisition capacity evenmore was deemed necessary as J-REITs were increasing in importance for the Kenedix Group.
Also as a result of the revisions, the Pipeline relationship between the Kenedix Group and the Investment
Corporation was significantly strengthened, allowing the Investment Corporation preferential rights toproperties developed by the Kenedix Group. Looking ahead, the Investment Corporation and the sponsor
company plans to closely cooperate to achieve further external growth in such investments as Group-wide
joint investments and property developments.
Utilize the Asset Management Company’s Original Network for Sourcing Properties
The Asset Management Company’s employees have diverse experience in the real estate and financial markets
in Japan. A part of the Investment Corporation’s growth strategy involves acquiring information about
potential acquisition opportunities through the Asset Management Company’s network. The Investment
Corporation plans to continue to utilize the Asset Management Company’s knowledge, experience andnetwork of contacts in the real estate market to help locate and acquire properties that match its investment
strategy.
Make Diversified Acquisitions
As of April 30, 2008, the Investment Corporation owned 68 properties for a total acquisition price ofapproximately ¥212.8 billion with a 95.9% occupancy ratio. Supported by this asset base along with the
management know-how of mid-sized office building accumulated by the Asset Management Company, theInvestment Corporation plans to continue acquiring properties based on its diversified property acquisition
strategy. The Investment Corporation has also expanded the asset size of the portfolio based on a diverse rangeof property acquisition strategies. Exemplary cases include how lease-up and asset value are enhanced in ashort period of time for properties that were acquired with a low occupancy ratio by launching leasing
activities only after appropriate renovation work is conducted following acquisition (KDX Nishi-Gotanda
Building and KDX Toranomon Building) and how properties are acquired at the stage when construction of
the building is yet to be completed in order to secure superior properties early (Sakae 4-chome Office Building(Tentative Name).
Furthermore, while implementing various property acquisition strategies such as those described above, theInvestment Corporation believes that increasingly proactive investment property acquisitions are possible bycentering the portfolio on mid-sized office buildings that have a relatively advantageous return than large-sized
office buildings in consideration of the weighted average cost of capital based on the level of return on
distributions calculated from investment unit price and distributions per unit, as well as the debt procurement
costs and interest-bearing debt ratio.

Important Subsequent Events
Important subsequent events after the closing of the fiscal period ended on April 30, 2008 are as follows.
Acquisition of Property
On May 15, 2008, the Board of Directors of the Asset Management Company resolved to acquire the following
property on June 30, 2008.
8

Property Name
Type of Acquisition
Location (Address)
Acquisition Price
Date of Contract
SellerUsage
Site Area
Completion Date

KDX Harumi Building (Office Building)Trust beneficiary interest in real estate
3-12-1 Harumi, Chuo-ku, Tokyo¥10,250,000,000 (excluding acquisition costs, property tax, city-planning tax, andconsumption tax, etc.)
May 15, 2008
Y.K. KW Property 11
Offices, Retail Shops
12,694.32 ㎡
February 22, 2008

(Reference)① Acquisition of Property
The Investment Corporation has acquired the following property on May 1, 2008.
Property NameKDX Iwamoto-cho Building (Office Building)Type of Acquisition
Real estate
Location (Address)
3-11-9 Iwamoto-cho, Chiyoda-ku, Tokyo
Acquisition Price¥1,864,802,000 (excluding acquisition costs, property tax, city-planning tax, andconsumption tax, etc.)
Date of Contract
May 1, 2008
Seller
Y.K. KITANOMARU INVESTMENT
Usage
Offices, Residential Complex
1,618.65 ㎡
Site Area
Completion Date
March 18, 2008

② Debt Financing
The Investment Corporation undertook the following debt financing on May 1, 2008.
Series 25-L
Lender：Citibank Japan, Ltd.
Amount：¥1,000 million
Interest Rate
：1.18833％ floating rate of interest (Note)
Repayment Date ：November 1, 2008
Collateral：Unsecured, unguaranteed
Note: The interest rate covers the period commencing May 1, 2008 through August 1, 2008. Thereafter, theinterest rate shall be calculated based on the three-month yen TIBOR +0.35%. The interest rate after
August 1, 2008, shall be disclosed as and when determined.
Series 25-A
Lender：The Chuo Mitsui Trust and Banking Co., Limited
Amount：¥1,000 million
Interest Rate
：1.90542％ fixed rate of interest
Repayment Date ：November 1, 2011
Collateral：Unsecured, unguaranteed9Outlook
Forecasts for the seventh fiscal period (May 1, 2008 to October 31, 2008) are presented as follows. Please refer to the“Preconditions and Assumptions for the Fiscal Period Ending October 31, 2008” below for factors that underpin forecasts.
Operating Revenues
Ordinary Income
Net Income
Distribution per Unit
Distribution in Excess of Earnings per Unit

¥8,174 million¥3,003 million¥3,002 million¥15,000¥0

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 Fiscal Period Ending October 31, 2008”

Calculation Period
Property Portfolio

Operating Revenues
Operating Expenses

Non-Operating Expenses

Debt Financing andInvestment Corporation
Bonds

Preconditions and Assumptions● The seventh fiscal period: May 1, 2008 to October 31, 2008 (184 days)●Forecasts are based on the 69 properties held as of June 11, 2008 plus KDX Harumi
Building expected to be acquired on June 30, 2008, which was mentioned in the press
release dated May 15, 2008, totaling 70 properties. This will remain unchanged (nonew properties will be acquired and no existing properties will be sold) up to andincluding the end of the seventh fiscal period.
● The property portfolio may change due to a variety of factors.
●Rental revenues are estimated based on historical performance and a variety of factors
including leasing market conditions.
● Property-related expenses other than depreciation are estimated based on historic
expenses, adjusted to reflect the expenses variables.
● In general, property tax and city planning tax are allocated to the seller andpurchaser on a pro rata basis at the time of acquisition settlement. In the case of theInvestment Corporation, an amount equivalent to the portion allocated to thepurchaser is included in the acquisition price of the property. Repairs, maintenanceand renovation expenses are estimated based on the amounts budgeted by the asset
management company for each property and amounts considered essential for eachperiod. Actual repairs, maintenance and renovation expenses for each fiscal period
may, however, differ significantly from estimated amounts due to unforeseen
circumstances or emergencies.
● For the seventh fiscal period, an amount of ¥1,449 million has been estimated for
depreciation expense.
● The Investment Corporation is amortizing unit issuance costs over a period of three
years using the straight-line method.
● Interest payable of ¥822 million is forecasted for the seventh fiscal period.
●Forecasts are based on the assumption that the Investment Corporation will undertake¥10 billion in borrowings for the acquisition of KDX Harumi Building. However, theamount that will need to be borrowed may possibly decrease by making use of funds
on hand.
●The balance of borrowings as of June 11, 2008 is ¥79.75 billion. Forecasts are based

10Investment Units Issued
and Outstanding
Distributions per Unit
Distributions in Excess of
Earnings per Unit
Other

on the assumption that there will be an additional ¥10 billion in borrowings for theacquisition of KDX Harumi Building as explained above and the balance ofborrowings shall remain unchanged for the rest of the seventh fiscal period.
● The balance of investment corporation bonds as of June 11, 2008 is ¥12.0 billion.
Forecasts are also based on the assumption that the balance of investment
corporation bonds shall remain unchanged in the seventh fiscal period.
●The number of investment units issued and outstanding as of June 11, 2008 is
200,000 units. Forecasts are based on the assumption that the number of investment
units issued and outstanding shall remain unchanged for the sixth fiscal period.
● Distributions per unit of amounts less than ¥1 are omitted. Calculations are based on
a 100% distribution of unappropriated retained earnings.
● The Investment Corporation does not currently anticipate distributions in excess ofearnings per unit.
● Forecasts are based on the assumption that any revisions to regulatory requirements,
taxation, accounting standards, public listing regulations or requirements of theInvestment Trusts Association, Japan will not impact forecast figures.
● Forecasts are based on the assumption that there will be no major unforeseen changes
to economic trends and in real estate and other markets.

11Balance Sheets
Fifth Fiscal Period

Sixth Fiscal Period（As of October 31, 2007）（As of April 30, 2008）（Thousands(％)（Thousandsin Yen）(％)

Increase / Decrease（Thousands inin Yen）(％)

Yen）

ASSETS
I. Current assets

12,570,970

5.9

13,397,027

5.8

826,056

Cash and bank deposits

6,561,025

6,379,367△181,657

Entrusted deposits

5,762,315

6,813,393

1,051,078

Rental receivables

141,910

159,003

17,093

Prepaid expenses

44,987

34,209△10,777

Consumption tax refundable

47,551-△47,551

Other current assets

13,181

11,053△2,127

6.6

II. Fixed assets

200,932,798

94.0

216,915,367

94.1

15,982,569

8.0

1. Property and equipment, at cost

200,564,337

93.8

216,483,952

93.9

15,919,615

7.9

Buildings

4,815,619

9,480,794

4,665,175

Structures

49,2707,046△42,223

Machinery and equipment

24,41320,754△3,659Tools, furniture and fixtures

7,639

12,215

4,576

Land

7,918,083

25,928,590

18,010,506

Buildings held in trust

62,666,733

55,388,083△7,278,650

Structures held in trust

241,537

109,995△131,542

Machinery and equipment held in trust

668,470

568,618△99,852

Tools, furniture and fixtures held in trust

543,466

225,247△318,218

123,629,101

124,742,605

1,113,504

Land held in trust
2. Intangible fixed asset

285,350

Land leasehold

285,350

3. Investment and other assets

83,1100.1

285,3500.1

285,3500.1

146,065-

0.1

62,954

Leasehold and security deposits

12,411

23,326

10,915Long-term prepaid expenses

68,165

121,520

53,355

Deferred tax assets

2,534

1,217

△1,316

ⅢDeferred

260,2200.1

207,8480.1△52,372

Organization costs

25,44820,358△5,089Investment Corporation Issuance Costs

62,99757,183△5,813

Unit Issuance Costs

171,774

130,305△41,468

Total assets

213,763,989

100.0

12

230,520,243

-

100.0

16,756,253

75.7△ 20.1

7.8

Fifth Fiscal Period

Sixth Fiscal Period（As of October 31, 2007）（As of April 30, 2008）（Thousands in（Thousands

(％)

Yen）

(％)

Increase / Decrease（Thousands inin Yen）(％)

Yen）

LIABILITIESⅠCurrent liabilities

21,245,911

Trade payables

358,328

441,418

83,089

Short-term debt

6,500,000

5,750,000△750,000

Current maturities of long term debt

13,000,000

26,000,000

13,000,000

Other payables

168,666

351,588

182,922

Accrued expenses

74,94089,201

14,260

658

769

110

Accrued consumption taxes-

215,992

215,992

Rents received in advance

1,141,332

1,172,674

31,342

1,985

4,503

2,518

Accrued income taxes

Deposits received
ⅡLong-term liabilities

64,756,142

9.9

30.3

34,026,147

68,179,934

14.8

29.6

12,780,235

3,423,791

60.2

5.3

Investment Corporation bonds issued

12,000,000

12,000,000-

Long-term debt

44,000,000

46,000,000

2,000,000

647,396

1,271,027

623,631

8,102,312

8,905,814

803,502

Derivative liability

6,434

3,091

△3,342

Total liabilities

86,002,054

40.2

102,206,081

44.3

16,204,026

18.8

I. Unitholder’s equity

127,765,834

59.8

128,316,035

55.7

550,201

0.4

1. Capital stock

124,973,750

58.5

124,973,750

54.2

-

-

2. Retained earnings

2,792,084

1.3

3,342,285

1.4

550,201

19.7

Retained earnings at end of period

2,792,084

II. Valuation and translation adjustments△ 3,899

Unrealized gain from deferred hedge△ 3,899

Leasehold and security deposits received
Leasehold and security deposits held in
trust received(Net assets)

3,342,285△0.0△1,873550,201△0.0△1,873

2,025

-

2,025

-

Total net assets

127,761,934

59.8

128,314,161

55.7

552,226

0.4

Total liabilities and net assets

213,763,989

100.0

230,520,243

100.0

16,756,253

7.8

13

Statements of Income and Retained Earnings
Fifth Fiscal Period

Sixth Fiscal Period（As of October 31, 2007）（As of April 30, 2008）（Thousands in（Thousands in

(％)

Yen）

(％)

Yen）

（Thousands in

(％)

Yen）

1. Operating revenues

7,208,246

Rental revenues

6,334,707

6,770,710

436,002

Other rental revenues

873,538

859,754△13,783-

952,230

952,230

Profit on sale of trust beneficiary interests

100.0

Increase / Decrease

8,582,695

100.0

1,374,449

19.1

in real estate
2. Operating expenses
Property-related expenses *1

3,737,320

51.8

4,517,040

52.6

779,720

3,205,728

3,447,634

241,906-

439,333

439,333

369,009424,141

55,132

Directors’ salaries

5,400

5,400

-

Custodian fees

20,456

22,463

2,007

Administrative service fees

52,10852,684575

Audit fees

7,800

9,300

1,500

Other operating expenses

76,818116,083

39,264

Loss on sale of trust beneficiary interests

20.9

in real estate *3
Asset management fees

Operating income
3. Non-operating revenues

3,470,925

48.2

4,065,654

47.4

594,72917.1

11,934

0.2

8,712

0.1

△3,221△ 27.0Interest income

7,794

8,261

467

Other Non-operating revenues

4,140

451

△3,6894..Non-operating expenses

689,7949.6

730,610

8.5

40,815Interest expense

481,855

504,589

22,733

Investment corporation bonds interest

113,304

113,537

232

Financing related expense

24,33828,471

4,132

Amortization of bonds issuance costs

5,877

5,813

△63

Amortization of unit issuance costs

41,46841,468-

Amortization of organization costs

5,089

5,089

-

Other non-operating expenses

17,85931,64013,7805.9

Ordinary income

2,793,065

38.7

3,343,757

39.0

550,692

19.7

Income before income taxes

2,793,065

38.7

3,343,757

39.0

550,692

19.7

Current income taxes

1,029

0.0

1,773

0.0

743

72.2

Deferred income taxes△5

Net Income
Retained earnings at the beginning of period
Retained earnings at the end of period△217

2,792,040

38.7

3,342,201

△211
38.9

550,160

43

84

40

2,792,084

3,342,285

550,201

14

19.7

Statements of Changes in Unitholder’s Equity
Fifth Fiscal Period (May 1, 2007 to October 31, 2007)(Thousands in Yen)

Unitholder’s Equity
Capital Stock
Balance at the beginning of a

Valuation and Translation Adjustments

Retained Earnings

Total

Retained Earnings

Unitholder’sat end-period

EquityUnrealized gain fromDeferred Hedge

Total Valuation
and Translation

Total Net Assets

Adjustments

88,729,652

2,148,117

90,877,769－－

90,877,769

36,244,098－

36,244,098－－

36,244,098

Payment of dividends－△2,148,074△2,148,074－－△2,148,074

Net Income－

2,792,040

2,792,040△3,899△3,8992,792,040

Interest-rate swap

－

－

－

△3,899△3,899△3,89936,244,098

643,966

36,888,064△3,899△3,89936,884,165

124,973,750

2,792,084

127,765,834△3,899△3,899127,761,934

periodChanges during the fiscal period
New unit issuanceTotal changes during the fiscal
periodBalance at the end of period

Sixth Fiscal Period (November 1, 2007 to April 30, 2008)(Thousands in Yen)

Unitholder’s Equity
Capital Stock
Balance at the beginning of a

Valuation and Translation Adjustments

Retained Earnings

Total

Retained Earnings

Unitholder’sat end-period

EquityUnrealized gain fromDeferred Hedge

Total Valuation
and Translation

Total Net Assets

Adjustments

124,973,750

2,792,084

127,765,834△3,899△3,899127,761,934

Payment of dividends－△2,792,000△2,792,000－－△2,792,000

Net Income－

3,342,201

3,342,201－－

3,342,201

Interest-rate swap

－

－

－

2,025

2,025

2,025

-

550,201

550,201

2,025

2,025

552,226

124,973,750

3,342,285

128,316,035△1,873△1,873

128,314,161

periodChanges during the fiscal period

Total changes during the fiscal
periodBalance at the end of period

15

Properties Roster(Millions in Yen)
Type

Area

Acquisition Amount on the Appraisal Value at theProperty

Property Name

No.

Tokyo

A-40

Metropolitan
Area

Price

Balance Sheet

end of Sixth Fiscal（Note 1）

(Note 2)

Period (Note 3)

Ratio (%)
(Note 4)

Toranomon Toyo Building

9,850

9,920

11,200

4.6

A-46

Hiei Kudan-Kita Building

7,600

7,665

8,060

3.5

A-37

KDX Ochanomizu Building

6,400

6,475

7,170

3.0

A-32

KDX Shiba-Daimon Building

6,090

6,352

6,900

2.8

A-13

KDX Kojimachi Building

5,950

5,863

6,530

2.7

A-1

KDX Nihonbashi 313 Building

5,940

6,307

7,680

2.7

A-16

Toshin-24 Building

5,300

5,277

5,940

2.4

A-2

KDX Hirakawacho Building

5,180

5,265

5,780

2.4

A-47

KDX Shin-Yokohama 381 Building

4,700

4,729

4,700

2.2

A-17

Ebisu East 438 Building

4,640

4,613

6,100

2.1

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,524

6,510

2.0

A-39

KDX Toranomon Building

4,400

4,890

4,870

2.0

A-30

KDX Nishi-Gotanda Building

4,200

4,302

5,030

1.9

3,760

3,794

3,760

1.7

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

A-4

KDX Hatchobori Building

3,680

3,563

3,980

1.7

A-18

KDX Omori Building

3,500

3,518

4,130

1.6

A-19

KDX Hamamatsucho Building

3,460

3,409

3,950

1.6

Office Buildings

A-45

KDX Roppongi 228 Building

3,300

3,455

3,330

1.5

A-29

KDX Higashi-Shinjuku Building

2,950

3,197

3,360

1.3

A-20

KDX Kayabacho Building

2,780

2,866

3,270

1.3

A-56

KDX Jimbocho Building

2,760

2,876

2,790

1.2

A-49

Nissou Dai-17 Building

2,710

2,728

2,300

1.2

A-21

KDX Shinbashi Building

2,690

2,696

3,080

1.2

A-5

KDX Nakano-Sakaue Building

2,533

2,510

2,680

1.1

A-22

KDX Shin-Yokohama Building

2,520

2,521

3,130

1.1

A-6

Harajuku F.F. Building

2,450

2,511

3,360

1.1

A-50

Ikejiri-Oohashi Building

2,400

2,421

2,610

1.1

A-27

KDX Kajicho Building

2,350

2,406

2,550

1.1

2,310

2,329

2,380

1.0

2,300

2,380

3,080

1.0

A-51
A-15

KDX Hamacho Nakanohashi Building(Note 5)KDX Hamacho Building

A-41

KDX Shinjuku 286 Building

2,300

2,345

2,610

1.0

A-7

FIK Minami Aoyama

2,270

2,295

3,420

1.0

A-14

KDX Funabashi Building

2,252

2,454

2,550

1.0

A-55

Shin-toshin Maruzen Building

2,110

2,143

2,150

0.9

A-33

KDX Okachimachi Building

2,000

2,148

2,010

0.9

A-57

KDX Gobancho Building (Note 5)

1,951

2,036

2,020

0.9

A-8

Kanda Kihara Building

1,950

1,897

2,030

0.9

A-23

KDX Yotsuya Building

1,950

1,978

2,440

0.9

A-9

KDX Shinjuku-Gyoen Building

1,610

1,622

2,140

0.7

16

A-26

KDX Kiba Building

1,580

1,628

1,930

0.7

A-38

KDX Nishi-Shinjuku Building

1,500

1,565

1,540

0.7

A-31

KDX Monzen-Nakacho Building

1,400

1,458

1,430

0.6

A-52

KDX Kanda Misaki-cho Building

1,380

1,397

1,390

0.6

A-34

KDX Hon-Atsugi Building

1,305

1,321

1,320

0.6

A-35

KDX Hachioji Building

1,155

1,351

1,120

0.5

A-28

KDX Nogizaka Building

1,065

1,139

1,080

0.5

A-10

KDX Koishikawa Building

704

686

921

0.3

Other

A-12

Portus Center Building

5,570

5,251

5,700

2.6

Regional

A-42

Karasuma Building

5,400

5,438

5,660

2.5

Areas

A-53

KDX Hakata-Minami Building

4,900

4,944

4,920

2.3

4,000

4,161

4,180

1.8

A-58

Sakae 4-chome Office Building(Tentative Name) (Note 6)

A-43

KDX Hakata Building

2,350

2,437

2,510

1.1

A-54

KDX Kitahama Building

2,220

2,235

2,220

1.0

A-44

KDX Sendai Building

2,100

2,184

2,130

0.9

A-24

KDX Minami Semba Dai-1 Building

1,610

1,582

1,650

0.7

A-25

KDX Minami Semba Dai-2 Building

1,560

1,507

1,640

0.7

A-11

Hakata-Ekimae Dai-2 Building

1,430

1,445

1,720

0.6

A-36

KDX Niigata Building

1,305

1,454

1,120

0.6

184,080

187,493205,761

86.4

Total of 58 Office Buildings

Residential Properties

Tokyo
Metropolitan
Area

B-19

Residence Charmante Tsukishima

5,353

5,337

5,400

2.5

B-3

Court Mejiro

1,250

1,247

1,190

0.5

B-4

Apartments Motoazabu

1,210

1,219

1,300

0.5

B-5

Apartments Wakamatsu Kawada

1,180

1,174

1,230

0.5

B-34

Gradito Kawaguchi

1,038

1,074

1,070

0.4

B-25

Court Shin-Okachimachi

878

883

888

0.4

B-18

Venus Hibarigaoka

1,800

1,921

1,700

0.8

12,70912,86012,778

5.9

Other
Regional
Areas
Total of 7 Residential Properties

Properties

Central Urban RetailTokyo
Metropolitan
Area

C-1

Frame Jinnan-zaka

9,900

10,18512,000

4.6

C-2

KDX Yoyogi Building

2,479

2,561

2,470

1.1

C-3

ZARA Tenjin Nishi-dori

3,680

3,668

3,810

1.7

Total of 3 Central Urban Retail Properties

16,05916,41518,280

7.5

Total of 68 properties

212,848

216,769

236,819

100.0

Other
Regional
Areas

Notes:
1. Acquisition price is the purchase price for trust beneficiary interests or properties acquired by the Investment Corporation exclusive of taxes,
rounded down to the nearest million yen.
2. Figures of less than1 million are rounded down from the amounts on the balance sheet.
3. Appraisal values (end of the sixth 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 valuation17

reports prepared by the Japan Real Estate Institute, Daiwa Real Estate Appraisal Corporation, and Nippon Tochi-Tatemono Limited.
4. Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest firstdecimal place.
5. The current names of the respective buildings are as follows. Following the acquisition, the Investment Corporation intends to carry out
procedures to change the name of the buildings.
“KDX Hamacho Nakanohashi Building” is the “Hamacho Nakanohashi Building”“KDX Gobancho Building” is the “ORIKEN Gobancho Building”

6. The values concerning land are shown for Sakae 4-chome Office Building (Tentative Name).

18

Property Distribution
A． Property TypesType

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

Office Buildings

58

184,080

86.4

Residential Properties

7

12,7095.9Central Urban Retail Properties

3

16,059Others

－

－

Total

68

212,848

100.0

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

7.5

B． Geographic Distribution
Area

Number of
Properties

Tokyo Metropolitan Area

55

174,923

82.1

Other Regional Areas

13

37,925

17.8

Total

68

212,848

100.0

Number of
Properties

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

Less than 1,000

2

1,582

0.7

1,000 - 2,50034

61,12028.7

2,500 - 5,000

20

71,61333.6

5,000 - 7,500

951,18324.0

7,500 - 10,000

327,350

12.8

Total

68

212,848

100.0

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

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

19

Details of Investment Real Estate and Trust Real Estate
Type

Area

Tokyo
Metropolitan

Office Buildings

Area

Property

Property Name

No.

Total Floor

Type of

Area （㎡）Structure(Note 1)

(Note 2)

A-40

Toranomon Toyo Building

8,346.83

A-46

Hiei Kudan-Kita Building

11,425.31

A-37

KDX Ochanomizu Building

7,720.08

A-32

KDX Shiba-Daimon Building

7,824.03

A-13

KDX Kojimachi Building

5,323.81

A-1

KDX Nihonbashi 313 Building

8,613.09

A-16

Toshin-24 Building

8,483.17

A-2

KDX Hirakawacho Building

8,002.97

A-47

KDX Shin-Yokohama 381 Building

7,673.67

A-17

Ebisu East 438 Building

4,394.58

A-3

Higashi-Kayabacho Yuraku Building

5,916.48

A-39

KDX Toranomon Building

2,277.38

A-30

KDX Nishi-Gotanda Building

5,192.87

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

7,420.87

A-4

KDX Hatchobori Building

4,800.43

A-18

KDX Omori Building

7,334.77

A-19

KDX Hamamatsucho Building

3,592.38

A-45

KDX Roppongi 228 Building

2,235.30

A-29

KDX Higashi-Shinjuku Building

7,885.40

A-20

KDX Kayabacho Building

3,804.86

A-56

KDX Jimbocho Building

3,292.13

20

RC
B2F9
SRC･S
B1F11
SRC
B1F7
SRC
B1F9
SRC
B2F9
SRC
B2F9
SRC
B1F8
SRC
B3F10
SRC
B1F10
SRC
B1F7
SRC
B1F9
SRC
B1F9
SRC
B1F8
SRC
B1F9
SRC･RC
B1F8
RC･SRC
B1F9
S
F9
SRC
B1F9
SRC
B1F9
SRC
F8
SRC
B1F8

Completion
Date (Note 3)

PML
Percentage(%)

August1962

13.06

March 1988

3.14

August1982

2.97

July 1986

7.60

May 1994

3.60

April 1974

9.50

September 1984

8.75

March 1988

7.25

March 1988

11.64

January 1992

4.16

January 1987

7.01

April 1988

8.07

November 1992

8.28

February 1985

8.34

June 1993

6.42

October 1990

0.71

September 1999

6.13

April 1989

8.95

January 1990

3.63

October 1987

7.90

May 1994

7.25

A-49

Nissou Dai-17 Building

4,016.61

A-21

KDX Shinbashi Building

3,960.22

A-5

KDX Nakano-Sakaue Building

6,399.42

A-22

KDX Shin-Yokohama Building

6,180.51

A-6

Harajuku F.F. Building

3,812.44

A-50

Ikejiri-Oohashi Building

3,482.96

A-27

KDX Kajicho Building

3,147.70

A-51

KDX Hamacho Nakanohashi Building

3,280.41

A-15

KDX Hamacho Building

4,133.47

A-41

KDX Shinjuku 286 Building

3,432.04

A-7

FIK Minami Aoyama

1,926.98

A-14

KDX Funabashi Building

5,970.12

A-55

Shin-toshin Maruzen Building

3,439.37

A-33

KDX Okachimachi Building

1,882.00

A-57

KDX Gobancho Building

1,893.11

A-8

Kanda Kihara Building

2,393.94

A-23

KDX Yotsuya Building

3,329.68

A-9

KDX Shinjuku-Gyoen Building

2,594.88

A-26

KDX Kiba Building

2,820.64

A-38

KDX Nishi-Shinjuku Building

2,017.63

A-31

KDX Monzen-Nakacho Building

2,668.91

A-52

KDX Kanda Misaki-cho Building

1,536.60

A-34

KDX Hon-Atsugi Building

3,603.63

21

SRC
B1F8
SRC･S
B1F8
SRC
B1F11
S
B1F9
SRC
F11
RC
B2F9
SRC
B1F8
SRC
F9
SRC
B2F10
SRC･RC
B1F9
SRC
B1F9
SRC
B1F8
SRC
B1F8
S
F10
S
F8
SRC･RC･S
B1F8
RC
B2F4
S･SRC
F9
RC
F5
RC
F5
SRC
F8
SRC
B1F7
SRC
F8

July 1991

13.23

February 1992

6.84

August 1992

5.20

September 1990

10.36

November 1985

5.66

September 1988

3.02

March 1990

6.05

September 1988

6.17

September 1993

6.76

August 1989

8.71

November 1988

4.92

April 1989

2.76

July 1990

4.87

June 1988

2.23

August 2000

9.06

May 1993

7.77

October 1989

9.79

June 1992

6.05

October 1992

7.79

October 1992

9.02

September 1986

5.72

October 1992

9.41

May 1995

11.12

OtherRegional
Areas

A-35

KDX Hachioji Building

2,821.21

A-28

KDX Nogizaka Building

1,695.07

A-10

KDX Koishikawa Building

1,866.58

A-12

Portus Center Building

79,827.08

A-42

Karasuma Building

12,632.68

A-53

KDX Hakata-Minami Building

13,238.16

A-58

Metropolitan

Residential Properties

Area

RC
B1F5
SRC
B1F9
SRC･S
B2F25
SRC
B1F8
SRC
B1F9

10,848.45 (portion RC)(Tentative Name) (Note 4)

December 1985

13.00

May 1991

9.48

October 1992

9.32

September 1993

3.48

October 1982

8.37

June 1973

1.48

June 2009

3.39

July 1982

1.84

July 1994

9.79

February 1984

1.93

March 1993

9.04

September 1993

10.59

September 1984

1.06

July 1983

4.39

Avg. of 21.0 yrs―

January 2004

9.88

March 1997

7.11

January 2004

8.84

February 2004

7.61

February 2006

6.46

October 2005

4.09

March 1989

5.20

Avg. of 6.6 yrs

―

F11

A-43

KDX Hakata Building

6,537.33

A-54

KDX Kitahama Building

4,652.96

A-44

KDX Sendai Building

5,918.30

A-24

KDX Minami Semba Dai-1 Building

4,236.59

A-25

KDX Minami Semba Dai-2 Building

3,315.93

A-11

Hakata-Ekimae Dai-2 Building

4,846.01

A-36

KDX Niigata Building

6,810.29
368,730.32

B-19

Residence Charmante Tsukishima

18,115.39

B-3

Court Mejiro

3,326.07

B-4

Apartments Motoazabu

1,685.14

B-5

Apartments Wakamatsu Kawada

1,858.51

B-34

Gradito Kawaguchi

1,705.38

B-25

Court Shin-Okachimachi

1,494.55

Other
Regional

F9

S

Sakae 4-chome Office Building

Total of 58 Office Buildings
Tokyo

SRC

SRC
F9
S
F10
SRC
B1F10
SRC･RC･S
B1F9
SRC･S
B1F9
SRC
F9
RC
B2F13
―
SRC
B1F10
RC
B1F3
RC
F11
RC
F12
RC
F12
RC
F11
①RC F6B-18

Venus Hibarigaoka

14,976.25

Areas②RC F5③RC F6

Total of 7 Residential Properties

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43,161.29―

Retail Properties

Central Urban

Tokyo
Metropolitan
Area

C-1

Frame Jinnan-zaka

6,302.58

C-2

KDX Yoyogi Building

1,269.06

C-3

ZARA Tenjin Nishi-dori

1,445.02

Total of 3 Central Urban Retail Properties

9,016.66
420,908.27

Other
Regional
Areas

Total of 68 properties

SRC･RC･S

March 2005

8.02

August 1991

8.17

November 2005

2.12

―

Avg. of 4.9 yrs――

Avg. of 18.9 yrs

B2F7
SRC
F8
S
F4

5.28
(Note5)

Notes:
1. Total floor area is based on figures recorded in the land register and does not include related structures. The total floor area for theentire buildings is reported for compartmentalized ownership.
2. Type of structure data is based on data recorded in the land register. The following abbreviations are used to report data relating tostructure and the number of floors:
SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level.
For example: B2F9: Two floors below ground level and nine floors above ground level.
3. Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data is calculatedusing the weighted-average based on acquisition prices as of April 30, 2008. Sakae 4-chome Office Building (Tentative Name) is
not included in the weighted-average age.
4. Notes for the Sakae 4-chome Office Building (Tentative Name) are as follows.
“Total Floor Area”, “Type of Structure”: The figure is entered based on what is written in the building certificate pursuant to theprovisions of Article 6-2-1 of the Building Standards Law, as the building has not been completed or registered. The current designcontent may be changed in the future in accordance with the status of construction and other factors.
“Completion Date”: The completion date in the construction contract agreement is shown.
“PML Percentage”: The figure is based on the present design and specifications as of April 2008.
5. Probable Maximum Loss (PML) data is based on a survey provided by Sompo Japan Risk Management, Inc. as of March 2008.
Sakae 4-chome Office Building (Tentative Name) is not included in the Portfolio PML.

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Disclaimer

This financial report includes translations of certain documents originally filed and made available in Japan in accordance with
the Securities and Exchange Law of Japan. This English language financial report was prepared solely for the convenience ofreaders outside Japan and is not intended to constitute a document for an offer to sell, or seeking an offer to buy, any securitiesof Kenedix Realty Investment Corporation. English terms for Japanese legal, accounting, tax, and business concepts usedherein may not be precisely identical to the concept of the equivalent Japanese terms. With respect to any and all terms herein,
including without limitation, financial statements, if there exist any discrepancies in the meaning or interpretation thereof
between the original Japanese documents and English translation contained herein, the original Japanese documents will
always govern the meaning and interpretation.
None of Kenedix Realty Investment Corporation, Kenedix REIT Management, Inc. or any of their respective directors, officers,
employees, partners, unitholders, agents, affiliates or their advisors will be responsible or liable for the completeness,
appropriateness, or accuracy of English translations or the selection of the portion(s) of any document(s) translated into
English.
The financial statements of Kenedix Realty Investment Corporation have been prepared in accordance with generally accepted
accounting principles in Japan “Japanese GAAP”, which may materially differ in certain respects from generally accepted
accounting principles in other jurisdictions.
This financial report contains forward-looking statements. These statements appear in a number of places in this financial
report and include statements regarding the intent, belief, or current and future expectations of Kenedix Realty Investment
Corporation or Kenedix REIT Management, Inc. with respect to its business, financial condition and results of operations. In
some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “would,” “expect,” “plan,”“anticipate,” “believe,” “estimate,” “predict,” “potential,” or the negative of these terms or other similar terminology. Thesestatements are not guarantees of future performance and are subject to various risks and uncertainties. Actual results,
performance or achievements, or those of the industries in which we operate, may differ materially from any future results,
performance or achievements expressed or implied by these forward looking statements. In addition, these forward-looking
statements are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise and involve
known and unknown risks and uncertainties. Accordingly, readers of this document should not interpret the forward-looking
statements included herein as predictions or representations of future events or circumstances.
Potential risks and uncertainties also include those identified and discussed in this document. Given these risks anduncertainties, readers of this document are cautioned not to place undue reliance on forward-looking statements, which speak
only as of the date of information produced herein. We disclaim any obligation to update or, except in the limited
circumstances required by Tokyo Stock Exchange, announce publicly any revisions to any of the forward-looking statements
contained in this document.

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