Translation Purpose Only

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2007
(May 1, 2007 to October 31, 2007)

December 11, 2007

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

Taisuke Miyajima, Executive Director

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

Taisuke Miyajima, CEO and President

Inquires:

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

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

January 16, 2008

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED APRIL 30, 2007 AND OCTOBER 31, 2007
(1) Business Results(The amount is rounded down to the nearest ¥million)
Operating Revenues
Fifth Fiscal
PeriodFourth Fiscal
PeriodOperating Income¥7,208(24.7%)

3,470(29.2%)

2,793(30.0%)¥5,778(9.3%)

2,686(4.7%)

2,148(1.1%)Net Income
Fifth Fiscal
PeriodFourth Fiscal
PeriodOrdinary Income

Net Income

Return on

Ordinary Income Ordinary Income toper Unit

Unitholders’ Equity

to Total Assets

Operating Revenues

2,792(30.0%)

14,334

2.6%

1.4

38.7%

2,148

(1.1%)

13,681

2.4%

1.2

37.2%

（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
Fifth Fiscal
PeriodFourth Fiscal
PeriodDistributions in

Total Distributions

Excess of Earnings

in Excess ofper Unit (Yen)

Earnings

Distribution Ratio
Payout Ratio

to Unitholders’Equity¥13,960¥2,792－－100.0%

2.2%¥13,682¥2,148－－100.0%

2.4%

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

Fifth Fiscal
PeriodFourth Fiscal
PeriodTotal Assets

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Share(Millions of Yen)

(Millions of Yen)

to Total Assetsof Common Stock (Yen)¥213,763¥127,761

59.8%¥638,809¥188,400¥90,87748.2%¥578,839(Reference) Total net assets
Fifth fiscal period: ¥127,761 million

Fourth fiscal period: ¥90,877 million-1-

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

Fifth Fiscal
PeriodFourth Fiscal
PeriodCash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents at

Operating Activities

Investing Activities

Financing Activities

End of Period

4,706△ 21,935

20,954

11,331

5,424△ 30,305

24,3097,606

2．FORECAST OF RESULTS FOR THE SIXTH FISCAL PERIOD (November 1, 2007 to April 30, 2008)

Sixth
Fiscal Period

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

7,935

3,974

3,288

3,287

(10.1%)(14.5%)(17.7%)(17.7%)

Distribution perDistribution in

Unit(Yen)Excluding

Excess of Earings

Excess of Earnings

per Unit (Yen)

16,400-(Reference) Estimated net income per unit for the sixth fiscal period: ¥16,400

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)
Fifth fiscal period: 200,000 units
Fourth fiscal period: 157,000 units(b) Number of treasury units at end of period
Fifth fiscal period: 0 units
Fourth 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 sixth fiscal period ending April 30, 2008 are calculated as of December 11, 2007 based on theassumptions presented on page12 “Preconditions and Assumptions for the Fiscal Period Ending April 30, 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 fifth
fiscal period (from May 1, 2007 to October 31, 2007).
In the fifth fiscal period, the Investment Corporation recorded operating revenues of ¥7,208 million, operating income of¥3,470 million, ordinary income of ¥2,793 million and net income of ¥2,792 million. As a result, cash distribution for the
fiscal period under review was ¥13,960 per unit.

Management Performance
In the fiscal period under review, the Investment Corporation acquired 5 office buildings with a total acquisition price of¥22,000 million. As a result, the number of properties owned as of October 31, 2007 stood at 77, with a total acquisition
price of ¥197,090 million. Looking at the portfolio as a whole, 70.0% was comprised of office buildings, 21.8% ofresidential properties and 8.1% central urban retail properties on an acquisition price basis. In addition, the occupancy ratio
as of the end of the fifth fiscal period was 96.9%, reflecting stable investment and asset management.

Capital Acquisition
The Investment Corporation procured net proceeds of ¥36.2 billion through the primary offering and third-party allotment
of investment units, and undertook prepayment of ¥13.0 billion in borrowings (¥11.5 billion in short-term borrowings and¥1.5 billion in long-term borrowings) provided from cash on hand from equity finance. As a result, the Investment
Corporation managed to decrease the interest-bearing debt ratio and increase borrowing capacity.
In addition, concerning borrowings maturing during the fifth fiscal period, the Investment Corporation refinanced the sameamount for the same period and thereby managed to improve (lower) procurement costs (spread over basic interest rate,etc.) for all borrowings that have matured. As a result, the balance of interest-bearing debt stood at ¥75.5 billion as of
October 31, 2007, comprising ¥63.5 billion in borrowings (¥57.0 billion in long-term borrowings and ¥6.5 billion in
short-term borrowings) and ¥12.0 billion in investment corporation bonds.
As of October 31, 2007, the Investment Corporation had ¥57.0 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 (Note2)
was 91.4% and the long-term fixed interest debt ratio (Note3) was 91.4%.
Since its public listing through to the end of the fifth 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）
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 by3

utilizing interest-rate swap agreements.

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 October 31, 2007 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 shelfregistration 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

Use of Funds

Acquisition funds for specified assets,
repayment of borrowings, repayment ofinvestment corporation bonds, refund oflease and guarantee deposits, funds to pay forrepairs and maintenance, working capital, etc

Acquisition funds for specified assets,
repayment of borrowings, repayment ofinvestment corporation bonds, refund oflease and guarantee deposits, funds to pay forrepairs and maintenance, working capital, 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 The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
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 of the cash flow by offering office environment with high tenantsatisfaction. Based on the aforementioned, the Asset Management Company undertakes property management activities asfollows:
・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 Kenedix Advisors Co., Ltd. as its Property Management Company for its
entire portfolio.
4

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,
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.
Details of the 2nd CS Survey
Target respondent for the survey: The administration officers of each tenant and tenant employees of the 43 officebuildings and one central urban retail property.
Survey population / Response rate: 446 administration officers / 391 collected (response rate of 88%)2,348 tenant employees / 1,894 collected (response rate of 81%)
Examples of questions: Building location and environment, external façade, entrance, air conditioning system forlease space areas, lighting ventilation, OA compliant, elevators, toilets, kitchen facilities,
smoking areas, parking, management company service, status and standard of cleaning,
security, and fire prevention.
On a scale one to five, respondents were asked to rank each of these areas. The survey provided invaluable
information pertaining to the strengths and weaknesses of each building. Under the remarks section, a number of
respondents provided insightful observations. Based on survey results, the Investment Corporation will work toclarify and improve outstanding issues. Through this vital feedback channel, the Investment Corporation will also
implement appropriate maintenance and renovations for each property taking into consideration associated costs
and benefits.
In addition, concerning properties where construction was conducted to address customer satisfaction based on the
results of the first survey, the effects of such construction (improvements in the level of satisfaction) 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 for determining the priority ofmaintenance 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
5

“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 utilize the results of tenant surveys to enhance tenant satisfaction.
In addition, the Investment Corporation believes that tenants at mid-sized office buildings generally tend tohave high 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 and other related companies,
the same applies below) to reduce building management costs. Accordingly, the Investment Corporation reduces
property management expenses, electricity costs and property taxes. The Investment Corporation will continue tocarefully 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 to control operating costs.
The Investment Corporation has appointed Kenedix Advisors Co., Ltd. as its sole property managementcompany for the entire portfolio as of the end of the fourth fiscal period. In establishing a single point of contact
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.
The Investment Corporation is presently satisfied with the quality of property management. In addition toproperty management services, the Investment Corporation has executed master lease agreements with Kenedix
Advisors covering almost all of its properties held as of October 31, 2007 (excluding Residence Charmante
Tsukishima, Frame Jinnan-zaka, ZARA Tenjin Nishi-dori and tenants without approval for subleasing). In
appointing a member of the Kenedix Group as lessee, the Investment Corporation is able to provide better
tenant-oriented leasing management through Kenedix Advisors. At the same time, this scheme allows theInvestment Corporation to more effectively utilize tenant security and guarantee deposits. The Investment
Corporation leverages scale merits and the communication and negotiation skills of the Kenedix Group in aneffort to reduce operating costs. In addition, the Investment Corporation has succeeded in reducing in building
maintenance costs.
・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 as analternative to investment in office buildings. In addition, the Investment Corporation will make no new investment in6

residential properties for a certain period and will replace assets mentioned as follows. To facilitate the implementation of
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.
Reciprocal purchase and sale of residential properties and office buildings
On December 11, 2007, the Investment Corporation decided to sell, of the 30 residential properties in its portfolio as of
October 31, 2007 (total acquisition price of ¥43,052 million), 23 residential properties (total acquisition price of ¥30,343
million) on February 1, 2008, and newly purchase 9 office buildings (total acquisition price of ¥31,980 million) on thesame date.
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.
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.

■Details of the Change of Memorandum of Understanding
・When Kenedix, Inc. receives information regarding any available property that in its reasonable opinion
meets our investment criteria, including properties under development, from parties other than thecontracting parties, the Asset Management Company has first preferential rights to such information.
(Before Revision: The Investment Corporation had second preferential rightsafter certain pension funds
7

to such property information acquired by Kenedix, Inc.)
・In the event that Kenedix, Inc. disposes of a property that in its reasonable opinion meets our investment
criteria, including properties under development or properties that it owns, the Asset Management
Company has first preferential negotiating rights with respect to such properties.
(Before Revision: The Investment Corporation had second preferential negotiating rights with respect
to such properties after certain pension funds)
・As long as the Investment Corporation and the Asset Management Company continue to not invest in
new residential properties, the Revised Memorandum of Understanding will not apply with respect toresidential properties
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 October 31, 2007, the Investment Corporation owned 77 properties for a total acquisition price ofapproximately ¥197.0 billion with a 96.9% 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.
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
There were no important events following account settlement of the fifth fiscal period.
(Reference)
On December 11, 2007, the Investment Corporation decided to newly purchase 9 office buildings (total acquisition
price of ¥31,980 million) and sell 23 residential properties (total acquisition price of ¥30,343 million) on February 1,
2008, and on the same date8

(a) Purpose of the reciprocal purchase and sale
The Investment Corporation adopts a dynamic and flexible investment stance that accurately reflects its environment andmarket trends, and endeavors to ensure a timely response to each and every opportunity. The Investment Corporation
strives to develop a diversified investment portfolio adopting a three-point investment criteria based on property type, areaand size for its basic policy.
Based on this basic policy, the Investment Corporation has made changes in the management guidelines of the Kenedix
REIT Management, Inc. (“the Asset Management Company”) in December 2006 (Note 1) in response to recent conditionsin the office leasing market (increased rent levels, improvement of occupancy ratios, etc.), and has decided to increasingly
advance investment in office buildings and to make no new investment in residential properties for a certain period (“thechange in the portfolio development policy”).
Since the change in the portfolio development policy, the Investment Corporation has been prioritizing investment in officebuildings and has raised the investment ratio of office buildings in the overall portfolio.
Under such circumstances, the Investment Corporation received an offer from the sponsor company Kenedix, Inc.
(“Kenedix”) for the Investment Corporation to purchase several office buildings in Kenedix’s portfolio. Negotiations havebeen underway in relation to the price, conditions and other details concerning the office buildings selected by theInvestment Corporation (Note 2). In the course of the negotiations, Kenedix, which is advancing the forming ofresidential funds, proposed a reciprocal purchase and sale arrangement to the Investment Corporation for the Investment
Corporation to sell some of the residential properties in the Investment Corporation’s portfolio to Kenedix in conjunction
with the Investment Corporation’s purchase of the office buildings.
Considerations by the Asset Management Company resulted in the reciprocal purchase and sale arrangement being
deemed advantageous to the Investment Corporation in the following aspects and this has led to the decision being made to
implement the reciprocal purchase and sale.
(1) Contributes to a strengthened portfolio that consists mainly of mid-sized office buildings;(2) Leads to greater potential for internal growth backed by the favorable office leasing market;(3) Leads to stronger expertise in asset and property management through concentrated investment in specified assets;(4) Enables high-quality office buildings to be acquired en bloc through reciprocal purchase and sale with residential
properties; and(5) Enables the Investment Corporation to achieve to raise the investment ratio of office buildings while maintaining asset
size and profitability.
(b) The anticipated acquisition properties on February 1, 2008 are as follows.

Hiei Kudan-Kita Building (Office)Location (Address)
4-1-3 Kudan-kita, Chiyoda-ku, Tokyo

11,425.31 ㎡
March 1988
¥7,600,000,000

KDX Shin-Yokohama 381 Building (Office)Location (Address) 3-8-11 Shin-Yokohama, Kohoku-ku,
Yokohama, Kanagawa
Number of Floors
B1F10
Site Area
7,673.67 ㎡Completion Date
March 1988
Acquisition Price¥4,700,000,000

KDX Kawasaki-Ekimae Hon-cho Building (Office) (Note)
Location (Address)25-1 Kawasaki-ku Ekimae Hon-cho,

Nissou Dai-17 Building (Office)Location (Address)
2-14-30 Shin-Yokohama, Kohoku-ku,

Number of Floors
Site Area
Completion Date
Acquisition Price

B1F11

9

Number of Floors
Site Area
Completion Date
Acquisition Price

Kawasaki, Kanagawa
B1F9

Ikejiri-Oohashi Building (Office)Location (Address)
1-6-2 Oohashi, Meguro-ku, Tokyo
Number of Floors
Site Area
Completion Date
Acquisition Price

B2F93,482.96 ㎡
September 1988
¥2,400,000,000

KDX Kanda Misaki-cho Building (Office) (Note)
Location (Address)
3-6-12 Misaki-cho,Chiyoda-ku, Tokyo
Number of Floors
Site Area
Completion Date
Acquisition Price

Number of Floors
Site Area
Completion Date
Acquisition Price

7,420.87 ㎡
February 1985
¥3,760,000,000

B1F7
1,536.60 ㎡
October 1992
¥1,380,000,000

Yokohama, Kanagawa
B1F8
4,016.61 ㎡
July 1991¥2,710,000,000

KDX Hamacho Nakanohashi Building (Office) (Note)
Location (Address) 2-14-5 Nihombashi Kakigara-cho,
Chuo-ku,Tokyo
Number of Floors
F9Site Area
3,280.41 ㎡Completion Date
September 1988
Acquisition Price¥2,310,000,000
KDX Hakata-Minami Building (Office)Location (Address) 1-3-11 Hakata-eki Minami, Hakata-ku,
Fukuoka, Fukuoka
Number of Floors
B1F9
Site Area
13,238.16 ㎡
Completion Date
June 1973
Acquisition Price¥4,900,000,000

KDX Kitahama Building (Office) (Note)
Location (Address)
2-1-14 Hiranocho, Chuo-ku, Osaka,
Osaka
Number of Floors
F10Site Area
4,652.96 ㎡
Completion Date
July 1994
Acquisition Price¥2,220,000,000
Note: The current name of the” KDX Kawasaki-Ekimae Hon-cho Building” is the “Dai-46 Kowa Building,” “KDX Hamacho Nakanohashi Building”
is the “Hamacho Nakanohashi Building,” “KDX Kanda Misaki-cho Building” is the “Misaki-cho MMK Building,” and “KDX Kitahama
Building” is the “Doshou Building.” Following the acquisition, the Investment Corporation intends to carry out procedures to change the name of
the buildings.

(c) The anticipated sale properties on February 1, 2008 are as follows.
Type
Residential
Properties

Property
No.
B-1
B-2
B-6
B-7
B-8
B-9
B-11
B-13
B-16
B-17

Acquisition Price(Millions of Yen)
3,150
2,460
1,130
1,110
945
880
875
830
444
407

Property Name
Storia Sirokane
Tre di Casa Minami Aoyama
Court Nihonbashi-Hakozaki
Side Denenchofu
S-court Yokohama-Kannai II
Court Motoasakusa
Bloom Omotesando
Human Heim Okachimachi
Abreast Hara
Abreast Hirabari

10

Planned Sale Price(Millions of Yen)
3,370
2,680
1,220
1,110
1,020
943
962
905
494
457

B-20
B-21
B-22
B-23
B-24

Regalo Ochanomizu I･II
Regalo Shiba-Kouen
Chigasaki Socie Ni-bankan
Court Nishi-Shinjuku
Regalo Komazawa-Kouen

3,600
2,260
1,160
1,130
912

3,670
2,280
1,140
1,160
943

B-26

Primo Regalo Kagurazaka

762

770

B-27

Primo Regalo Youga

730

737

B-28

Court Shimouma

638

644

B-29

Ashiya Royal Homes

2,330

2,420

B-30

Regalo Ibaraki I･II

1,600

1,620

B-31

Collection Higashi-Sakura

1,264

1,150

B-32

Renaissance 21 Hirao Jousui-machi

900

964

B-33

Montore Nishikouen Bay Court

826

831

30,34331,490Total of 23 anticipated sale properties on February 1, 200811

Outlook
Forecasts for the sixth fiscal period (November 1, 2007 to April 30, 2008) are presented as follows. Please refer to the“Preconditions and Assumptions for the Fiscal Period Ending April 30, 2008” below for factors that underpin forecasts.
Operating Revenues
Ordinary Income
Net Income
Distribution per Unit
Distribution in Excess of Earnings per Unit

¥7,935 million¥3,288 million¥3,287 million¥16,400¥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 April 30, 2008”

Calculation Period
Property Portfolio

Operating Revenues

Operating Expenses

Non-Operating Expenses
Debt Financing andInvestment Corporation
Bonds

Preconditions and Assumptions● The sixth fiscal period: November 1, 2007 to April 30, 2008 (182 days)● Forecasts for the fiscal period ending April 30, 2008 are based on a property portfolio
totaling 77 properties held as of December 11, 2007 up to January 31, 2008. Taking
into account the change in the number of properties resulting from a reciprocalpurchase and sale (newly purchase 9 office buildings and sell 23 residential properties),
the portfolio is assumed to have 63 properties as of February 1, 2008.
● The property portfolio may change due to a variety of factors.
● Rental revenues are estimated based on historic performance and a variety of factors
including each property’s competitive standing and market and other conditions.
● For the sixth fiscal period, the Investment Corporation is anticipating a gain on thesale of 23 residential properties planned on February 1, 2008 totaling ¥496million.
● Property expenses other than depreciation are based on historic expenses, adjusted toreflect the variable nature of expenses.
● In general, property tax and city planning tax are allocated to the seller and purchaser
on a pro rata basis at the time of acquisition settlement. In the case of the Investment
Corporation, an amount equivalent to the portion allocated to the purchaser is includedin the acquisition price of the property.
● Repairs, maintenance and renovation expenses are estimated based on the AssetManagement Company budgeted amounts for each property and amounts consideredessential for each period. Actual repairs, maintenance and renovation expenses for eachfiscal period may, however, differ significantly from estimated amounts due tounforeseen circumstances or emergencies.
● For the fiscal period ending April 30, 2008, approximately amounts of ¥1,415million
has been estimated for depreciation expense.
● Amounts for interest payable and investment corporation bond interest of ¥587
million has been forecasted for the fiscal period ending April 30, 2008.
●Forecasts are based on a total balance of borrowings of ¥63,500 million and totalbalance of investment corporation bonds of ¥12,000 million as of December 11, 2007.
Forecasts are also based on the assumption that the balance of borrowings andinvestment corporation bonds shall remain unchanged in the sixth fiscal period.

12

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

●The number of investment units issued and outstanding as of December 11, 2007 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.

13Balance Sheets
Fifth Fiscal Period

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

Increase / Decrease（Thousands inin Yen）(％)

Yen）

ASSETS
I. Current assets

12,570,970

5.9

9,333,184

4.9

3,237,786

Cash and bank deposits

6,561,025

3,740,550

2,820,474

Entrusted deposits

5,762,315

5,182,512

579,802

Rental receivables

141,910

75,124

66,785Prepaid expenses

44,987

29,845

15,141

Consumption tax refundable

47,551

302,040△254,488

Other current assets

13,181

3,111

10,06934.7

II. Fixed assets

200,932,798

94.0

178,896,941

95.0

22,035,856

12.3

1. Property and equipment, at cost

200,564,337

93.8

178,516,827

94.8

22,047,510

12.4

Buildings

4,815,619

4,818,319△2,700

Structures

49,27052,061△2,791

Machinery and equipment

24,41328,741△4,327

Tools, furniture and fixtures

7,639

3,500

4,139

Land

7,918,083

7,910,082

8,001

Buildings held in trust

62,666,733

59,002,008

3,664,725

Structures held in trust

241,537

236,337

5,200

Machinery and equipment held in trust

668,470

675,401△6,930Tools, furniture and fixtures held in trust

543,466

513,193

30,272

123,629,101

105,277,180

18,351,920

Land held in trust
2. Intangible fixed asset

285,350

Land leasehold

285,350

3. Investment and other assets

83,1100.1

285,1440.1

285,144
0.1

94,969

205
205

0.1

△11,859

Leasehold and security deposits

12,411

11,649762

Long-term prepaid expenses

68,16583,320△15,155

Deferred tax assets

2,534

-

2,534

ⅢDeferred

260,2200.1

170,551

0.1

89,668Organization costs

25,44830,538△5,089Investment Corporation Issuance Costs

62,997

68,875△5,877

Unit Issuance Costs

171,774

71,138100,635

Total assets

213,763,989

100.0

14

188,400,678

0.1

100.0

25,363,311

△12.5

52.6

13.5

Fifth Fiscal Period

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

(％)

Yen）

(％)

Increase / Decrease（Thousands inin Yen）(％)

Yen）

LIABILITIESⅠCurrent liabilities

21,245,911

Trade payables

358,328

275,299

83,029

Short-term debt

6,500,000

18,500,000△ 12,000,000

Current maturities of long term debt

13,000,000

1,500,000

11,500,000

Other payables

168,666

138,451

30,214

Accrued expenses

74,94086,742△ 11,801

658

543

115

1,141,332

916,372

224,960

Accrued income taxes
Rents received in advance
Deposits received

ⅡLong-term liabilities

9.9

1,985

64,756,142

21,444,151

11.4

△ 0.9

△ 24,758

26,743

30.3△ 198,240

76,078,756

40.4△ 11,322,613△ 14.9Investment Corporation bonds issued

12,000,000

12,000,000-

Long-term debt

44,000,000

56,500,000△ 12,500,000

647,396626,499

20,896

8,102,312

6,952,256

1,150,055

Derivative liability

6,434

56,500,000

6,434

Total liabilities

86,002,054

40.2

97,522,908

51.8△ 11,520,853△ 11.8

I. Unitholder’s equity

127,765,834

59.8

90,877,769

48.2

36,888,064

40.6

1. Capital stock

124,973,750

58.5

88,729,652

47.1

36,244,098

40.8

2. Retained earnings

2,792,084

1.3

643,966

30.0

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)

2,148,117
0.0－

643,966－－△ 3,899－△ 3,899－

Total net assets

127,761,934

59.8

90,877,769

48.2

36,884,165

40.6

Total liabilities and net assets

213,763,989

100.0

188,400,678

100.0

25,363,311

13.5

15

Statements of Income and Retained Earnings
Fifth Fiscal Period

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

(％)

Yen）

(％)

Yen）

（Thousands in

(％)

Yen）

1. Operating revenues

7,208,246

Rental revenues

6,334,707

4,965,303

1,369,404

Other rental revenues

873,538

682,158

191,379-

130,748△ 130,748

Profit on sale of trust beneficiary interests

100.0

Increase / Decrease

5,778,210

100.0

1,430,036

24.7

in real estate0
2. Operating expenses

3,737,320

51.8

3,091,465

53.5

645,855

Property-related expenses

3,205,728

2,607,389

598,338

Asset management fees

369,009306,965

62,043

Directors’ salaries

5,400

5,400

0

Custodian fees

20,456

17,9282,527

Administrative service fees

52,10848,672

3,436

Audit fees

7,800

7,800

0

Other operating expenses

76,81897,309△ 20,490

Operating income

3,470,925

48.2

2,686,744

46.5

784,180

20.9

29.2

0
3. Non-operating revenues

11,934

0.2

9,716

0.2

2,218

Interest income

7,794

2,137

5,657

Other Non-operating revenues

4,140

7,578

△ 3,438

4..Non-operating expenses

689,7949.6

547,5819.5

142,213Interest expense

481,855

450,605

31,250Investment corporation bonds interest

113,304

29,32083,984

Financing related expense

24,33820,595

3,743

Amortization of bonds issuance costs

5,877

1,501

4,376

Amortization of unit issuance costs

41,46817,784

23,684

Amortization of organization costs

5,089

5,089

-

Other non-operating expenses

17,85922,685△ 4,825

22.8

26.0

Ordinary income

2,793,065

38.7

2,148,879

37.2

644,185

30.0

Income before income taxes

2,793,065

38.7

2,148,879

37.2

644,18530.0

Current income taxes

1,029

0.0

816

0.0

213

26.1

Deferred income taxes△5

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

42,792,040

38.7

2,148,058

△ 10
37.2

643,982

43

59

△ 15

2,792,084

2,148,117

643,966

16

30.0

Statements of Changes in Unitholder’s Equity
Fourth Fiscal Period (November 1, 2006 to April 30, 2007)(Thousands in Yen)

Unitholder’s Equity
Capital Stock
Balance at the beginning of aperiodChanges during the fiscal period
Payment of dividends
Net Income
Interest-rate swap
Total changes during the fiscal
periodBalance at the end of period

Valuation and Translation Adjustments

Retained Earnings

Total

Retained Earnings

Unitholder’sat end-period

EquityUnrealized gain fromDeferred Hedge

and Translation

Total Net Assets

Adjustments

88,729,652

2,124,112

90,853,764

79,532

79,53290,933,297－△2,124,053△2,124,053－－△2,124,053－－

2,148,058－

2,148,058－－△79,532－△79,532

2,148,058△79,532－

24,00524,005△79,532△79,532△55,527

88,729,652

2,148,117

90,877,769－－

90,877,769

Fifth Fiscal Period (May 1, 2007 to October 31, 2007)(Thousands in Yen)

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

Total Valuation

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 period17Properties Roster(Millions in Yen)
Type

Area

Tokyo
Office Buildings

Metropolitan
Area

PropertyNo.

Acquisition Amount on the Appraisal Value at theProperty Name

Price

Balance Sheet

end of Fifth Fiscal（Note1）(Note2)

Period (Note3)

Ratio (%)
(Note4)

A-40

Toranomon Toyo Building

9,850

9,921

10,7004.9

A-37

KDX Ochanomizu Building

6,400

6,474

6,890

3.2

A-32

KDX Shiba-Daimon Building

6,090

6,225

6,550

3.0

A-13

KDX Kojimachi Building

5,950

5,892

6,400

3.0

A-1

KDX Nihonbashi 313 Building

5,940

6,338

7,630

3.0

A-16

Toshin-24 Building

5,300

5,294

5,870

2.6

A-2

KDX Hirakawacho Building

5,180

5,189

5,780

2.6

A-17

Ebisu East 438 Building

4,640

4,639

5,990

2.3

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,564

6,220

2.2

A-39

KDX Toranomon Building

4,400

4,902

4,770

2.2

A-30

KDX Nishi-Gotanda Building

4,200

4,347

4,840

2.1

A-4

KDX Hatchobori Building

3,680

3,593

3,950

1.8

A-18

KDX Omori Building

3,500

3,490

4,030

1.7

A-19

KDX Hamamatsucho Building

3,460

3,431

3,890

1.7

A-29

KDX Higashi-Shinjuku Building

2,950

3,037

3,350

1.4

A-20

KDX Kayabacho Building

2,780

2,864

3,200

1.4

A-21

KDX Shinbashi Building

2,690

2,706

3,070

1.3

A-5

KDX Nakano-Sakaue Building

2,533

2,492

2,680

1.2

A-22

KDX Shin-Yokohama Building

2,520

2,539

3,070

1.2

A-6

Harajuku F.F. Building

2,450

2,518

3,290

1.2

A-27

KDX Kajicho Building

2,350

2,407

2,500

1.1

A-15

KDX Hamacho Building

2,300

2,408

3,060

1.1

A-41

KDX Shinjuku 286 Building

2,300

2,350

2,530

1.1

A-7

FIK Minami Aoyama

2,270

2,306

3,360

1.1

A-14

KDX Funabashi Building

2,252

2,446

2,540

1.1

A-33

KDX Okachimachi Building

2,000

2,091

2,010

1.0

A-8

Kanda Kihara Building

1,950

1,907

2,030

0.9

A-23

KDX Yotsuya Building

1,950

1,978

2,350

0.9

A-9

KDX Shinjuku-Gyoen Building

1,610

1,633

2,140

0.8

A-26

KDX Kiba Building

1,580

1,631

1,880

0.8

A-38

KDX Nishi-Shinjuku Building

1,500

1,573

1,520

0.7

A-31

KDX Monzen-Nakacho Building

1,400

1,459

1,430

0.7

A-34

KDX Hon-Atsugi Building

1,305

1,341

1,320

0.6

A-35

KDX Hachioji Building

1,155

1,259

1,160

0.5

A-28

KDX Nogizaka Building

1,065

1,132

1,070

0.5

A-10

KDX Koishikawa Building

704

695

868

0.3

Other

A-12

Portus Center Building

5,570

5,355

5,690

2.8

Regional

A-42

Karasuma Building (Note 5)

5,400

5,436

5,560

2.7

Areas

A-43

KDX Hakata Building

2,350

2,379

2,480

1.1

A-44

KDX Sendai Building

2,100

2,120

2,130

1.0

18

A-24

KDX Minami Semba Dai-1 Building

A-25

KDX Minami Semba Dai-2 Building

1,560

1,536

1,650

0.7

A-11

Hakata-Ekimae Dai-2 Building

1,430

1,463

1,720

0.7

A-36

KDX Niigata Building

1,305

1,437

1,220

0.6

137,979

140,411

156,048

70.0

Total of 44 Office Buildings

Tokyo
Metropolitan
Area
Residential Properties
Other
Regional
Areas

Properties

Central Urban Retail

Tokyo
Area

1,592

1,660

0.8

B-19

Residence Charmante Tsukishima

5,353

5,383

5,460

2.7

B-20

Regalo Ochanomizu I&II

3,600

3,634

3,670

1.8

B-1

Storia Sirokane

3,150

3,163

3,370

1.5

B-2

Tre di Casa Minami Aoyama

2,460

2,475

2,680

1.2

B-21

Regalo Shiba-Kouen

2,260

2,280

2,280

1.1

B-3

Court Mejiro

1,250

1,258

1,190

0.6

B-4

Apartments Motoazabu

1,210

1,226

1,300

0.6

B-5

Apartments Wakamatsu Kawada

1,180

1,186

1,250

0.5

B-22

Chigasaki Socie Ni-bankan

1,160

1,238

1,140

0.5

B-6

Court Nihonbashi-Hakozaki

1,130

1,129

1,220

0.5

B-23

Court Nishi-Shinjuku

1,130

1,145

1,160

0.5

B-7

Side Denenchofu

1,110

1,142

1,110

0.5

B-34

Gradito Kawaguchi

1,038

1,084

1,070

0.5

B-8

S-court Yokohama-Kannai II

945

941

1,020

0.4

B-24

Regalo Komazawa-Kouen

912

923

943

0.4

B-9

Court Motoasakusa

880

889

943

0.4

B-25

Court Shin-Okachimachi

878

893

888

0.4

B-11

Bloom Omotesando

875

887

962

0.4

B-13

Human Heim Okachimachi

830

840

905

0.4

B-26

Primo Regalo Kagurazaka

762

778

770

0.3

B-27

Primo Regalo Youga

730

742

737

0.3

B-28

Court Shimouma

638

650

644

0.3

B-29

Ashiya Royal Homes

2,330

2,482

2,420

1.1

B-18

Venus Hibarigaoka

1,800

1,943

1,710

0.9

B-30

Regalo Ibaraki I&II

1,600

1,632

1,620

0.8

B-31

Collection Higashi-Sakura

1,264

1,327

1,150

0.6

B-32

Renaissance 21 Hirao Jousui-machi

900

921

964

0.4

B-33

Montore Nishikouen Bay Court

826

842

831

0.4

B-16

Abreast Hara

444

439

494

0.2

B-17

Abreast Hirabari

407

408

457

0.2

43,05243,89644,358

21.8

Total of 30 Residential Properties
Metropolitan

1,610

C-1

Frame Jinnan-zaka

9,900

10,241

11,900

5.0

C-2

KDX Yoyogi Building

2,479

2,621

2,540

1.2

C-3

ZARA Tenjin Nishi-dori

3,680

3,678

3,810

1.8

Total of 3 Central Urban Retail Properties

16,05916,541

18,250

8.1

Total of 77 properties

197,090

200,849

218,656

100.0

Other
Regional
Areas

19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 fifth 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 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 Investment Corporation had been planning to change the name of the “Karasuma Building” to “KDX Kyoto Karasuma Building”. Dueto the high name recognition of the building’s current name, the plan to change the name was canceled.

20

Property Distribution
A． Property TypesType

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

Office Buildings

44

137,979

70.0

Residential Properties

30

43,052

21.8

Central Urban Retail Properties

3

16,059Others

－

－

Total

77

197,090

100.0

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

8.1

B． Geographic Distribution
Area

Number of
Properties

Tokyo Metropolitan Area60

162,514

82.4

Other Regional Areas

17

34,576

17.5

Total

77

197,090

100.0

Number of
Properties

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

Less than 1,000

14

10,7315.4

1,000 - 2,500

37

63,19332.0

2,500 - 5,000

15

52,23326.5

5,000 - 7,500

951,18325.9

7,500 - 10,000

219,750

10.0

Total

77

197,090

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.

21

Details of Investment Real Estate and Trust Real Estate
Type

Area
Tokyo
Metropolitan

Office Buildings

Area

Property
No.

Property Name

Total Floor

Type of

Area （㎡）Structure(Note1)(Note2)

A-40

Toranomon Toyo Building

8,346.83

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-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-4

KDX Hatchobori

4,800.43

A-18

KDX Omori Building

7,334.77

A-19

KDX Hamamatsucho Building

3,592.38

A-29

KDX Higashi-Shinjuku Building

7,885.40

A-20

KDX Kayabacho Building

3,804.86

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-27

KDX Kajicho Building

3,147.70

22

RC
B2F9
SRC
B1F7
SRC
B1F9
SRC
B2F9
SRC
B2F9
SRC
B1F8
SRC
B3F10
SRC
B1F7
SRC
B1F9
SRC
B1F9
SRC
B1F8
SRC･RC
B1F8
RC･SRC
B1F9
S
F9
SRC
B1F9
SRC
F8
SRC･S
B1F8
SRC
B1F11
S
B1F9
SRC
F11
SRC
B1F8

Completion
Date (Note3)

PML
Percentage(%)

August1962

13.06

August1982

2.97

July 1986

7.60

May 1994

3.60

April 1974

9.50

September 1984

8.75

March 1988

7.25

January 1992

4.16

January 1987

7.01

April 1988

8.07

November 1992

8.28

June 1993

6.42

October 1990

0.71

September 1999

6.13

January 1990

3.63

October 1987

7.90

February 1992

6.84

August 1992

5.20

September 1990

10.36

November 1985

5.66

March 1990

6.05

OtherRegional
Areas

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-33

KDX Okachimachi Building

1,882.00

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-34

KDX Hon-Atsugi Building

3,603.63

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-43

KDX Hakata Building

6,537.33

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

23

SRC
B2F10
SRC･RC
B1F9
SRC
B1F9
SRC
B1F8
S
F10
SRC･RC･S
B1F8
RC
B2F4
S･SRC
F9
RC
F5
RC
F5
SRC
F8
SRC
F8
SRC
F9
RC
B1F5
SRC
B1F9
SRC･S
B2F25
SRC
B1F8
SRC
F9
SRC
B1F10
SRC･RC･S
B1F9
SRC･S
B1F9
SRC
F9
RC
B2F13

September 1993

6.76

August 1989

8.71

November 1988

4.92

April 1989

2.76

June 1988

2.23

May 1993

7.77

October 1989

9.79

June 1992

6.05

October 1992

7.79

October 1992

9.02

September 1986

5.72

May 1995

11.12

December 1985

13.00

May 1991

9.48

October 1992

9.32

September 1993

3.48

October 1982

8.37

July 1982

1.84

February 1984

1.93

March 1993

9.04

September 1993

10.59

September 1984

1.06

July 1983

4.39

Total of 44 Office Buildings
Tokyo
Metropolitan

Residential Properties

Area

290,294.41

B-19

Residence Charmante Tsukishima

18,115.39

B-20

Regalo Ochanomizu I&II

4,843.27

B-1

Storia Sirokane

5,750.05

B-2

Tre di Casa Minami Aoyama

1,986.44

B-21

Regalo Shiba-Kouen

2,786.98

B-3

Court Mejiro

3,326.07

B-4

Apartments Motoazabu

1,685.14

B-5

Apartments Wakamatsu Kawada

1,858.51

B-22

Chigasaki Socie Ni-bankan

3,821.74

B-6

Court Nihonbashi-Hakozaki

1,727.96

B-23

Court Nishi-Shinjuku

1,669.33

B-7

Side Denenchofu

2,433.52

B-34

Gradito Kawaguchi

1,705.38

B-8

S-court Yokohama-Kannai II

1,738.71

B-24

Regalo Komazawa-Kouen

1,262.00

B-9

Court Motoasakusa

1,585.65

B-25

Court Shin-Okachimachi

1,494.55

B-11

Bloom Omotesando

699.14

B-13

Human Heim Okachimachi

1,444.25

B-26

Primo Regalo Kagurazaka

1,007.54

B-27

Primo Regalo Youga

1,213.20

B-28

Court Shimouma

880.18

24

―
SRC
B1F10

Avg. of 20.8 yrs―

January 2004

9.88

①RC B1F10 ①January 2006
②RC F11
SRC･S
B2F13
RC
B1F6
RC
F13
RC
B1F3
RC
F11
RC
F12
RC
F8
SRC
F12
RC
F8
RC
F6
RC
F12
RC
F11
RC
F8
SRC
F13
RC
F11
RC
B1F3
SRC
F14
RC
F8
RC
F8
RC
F6

②February 2006

8.30

February 2003

4.74

February 2004

8.49

November 2005

6.97

March 1997

7.11

January 2004

8.84

February 2004

7.61

January 1991

14.52

February 2004

7.34

October 2005

5.74

February 1997

8.86

February 2006

6.46

March 2003

13.60

February 2006

5.43

January 2005

6.01

October 2005

4.09

March 2003

8.47

December 2004

6.01

January 2006

4.83

December 2005

8.41

October 2005

9.70

OtherRegional

B-29

Ashiya Royal Homes

5,015.67

Areas

RC
F5

June 1991

11.56

March 1989

5.19

①RC F6B-18

Venus Hibarigaoka

14,976.25②RC F5③RC F6

B-30

Regalo Ibaraki I&II

6,445.92

B-31

Collection Higashi-Sakura

2,931.65

B-32

Renaissance 21 Hirao Jousui-machi

2,643.36

B-33

Montore Nishikouen Bay Court

2,772.49

B-16

Abreast Hara

1,563.47

B-17

Abreast Hirabari

1,867.75

Total of 30 Residential Properties

Retail Properties

Central Urban

Tokyo
Metropolitan
Area

101,251.56①May 1991②RC B1F7②March 1993

RC
F14
RC
F5
RC
F10
SRC
F11
RC
F7
―
SRC･RC･S

10.73

October 2005

2.69

February 2006

4.41

February 2000

13.57

March 2000

14.12

Avg. of 5.6yrs―

March 2005

8.02

August 1991

8.17

November 2005

2.12―

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―

Avg. of 4.4 yrs

400,562.63―

Avg. of 16.2 yrs

Areas

Total of 77 properties

B2F7
SRC
F8
S
F4

8.26

March 2006

C-1

Other
Regional①RC F4

5.26(Note4)

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 October 31, 2007.
4. Probable Maximum Loss (PML) data is based on a survey provided by Sompo Japan Risk Management, Inc. as of September
2007.

25

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.

26