KENEDIX REALTY INVESTMENT CORPORATION (8972)

Translation Purpose Only

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED APRIL 30, 2009
(November 1, 2008 to April 30, 2009)

June 11, 2009

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

Taisuke Miyajima, Executive Director

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

Taisuke Miyajima, CEO and President

Inquires:

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

Planned submission of semiannual security report: July 27, 2009
Planned start of distribution payments:

July 14, 2009

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED APRIL 30, 2009 (EIGHTH FISCAL PERIOD)(1) Business Results(The amount is rounded down to the nearest ¥million)

EighthFiscal Period
SeventhFiscal Period

EighthFiscal Period
SeventhFiscal Period

Operating Revenues

Operating Income

Ordinary Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

8,204(△3.0%)

3,463(△16.4%)2,435(△22.1%)8,456(△1.5%)

4,144(1.9%)

3,124(△6.6%)Net Income

Net Income

Return on(Millions of Yen)

per Unit (Yen)Unitholders’ Equity

Ordinary Income Ordinary Income toto Total Assets

Operating Revenues

2,434(△22.1%)

12,171

1.9%

1.0%

29.7%

3,123

(△6.5%)

15,618

2.4%

1.3%

36.9%

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

Distributions per
Unit (Yen)

Total Distribution

Excluding Excess(Millions of Yen)of Earnings
EighthFiscal Period
SeventhFiscal Period

Distributions in
Excess of Earnings
per Unit (Yen)

Total Distributions
in Excess of
Earnings

Distribution Ratio
Payout Ratio

to Unitholders’Equity(Millions of Yen)

12,172

2,434

0

0

100.0%

1.9%

15,618

3,123

0

0

100.0%

2.4%

Note: The payout ratio is round to the nearest first decimal place.

(3) Financial Position

EighthFiscal Period
SeventhFiscal Period（The total assets and unitholders’ equity are rounded down to the nearest ¥million.）

Total Assets

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Share(Millions of Yen)

(Millions of Yen)

to Total Assetsof Common Stock (Yen)

238,745

127,398

53.4%

636,990239,648

128,08753.4%

640,437(Reference) Total net assets
Eighth fiscal period: ¥127,398 million

Seventh fiscal period: ¥128,087 million-1-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Cash Flow Position

EighthFiscal Period
SeventhFiscal Period（The amount are rounded down to the nearest ¥million.）

Cash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents at

Operating Activities

Investing Activities

Financing Activities

End of Period(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

6,961

△ 1,831△ 3,121

13,711

9,279△14,377

5,659

11,703

2．FORECAST OF RESULTS FOR THE NINTH FISCAL PERIOD (May 1, 2009 to October 31, 2009)

Ninth
Fiscal Period

Distribution perDistribution in

Operating Revenues

Operating Income

Ordinary Income

Net Income

Unit(Yen)Excluding

Excess of(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

Excess of Earnings

Earnings per Unit

(Yen)

(Yen)

11,9000

7,898（△3.2%） 3,499（1.0%）

2,381(△2.2%)

2,380 （△2.2%）(Reference) Estimated net income per unit for the ninth fiscal period: ¥11,900

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)
Eighth fiscal period: 200,000 units
Seventh fiscal period: 200,000 units(b) Number of treasury units at end of period
Eighth fiscal period: 0 units
Seventh fiscal period: 0 units
Note: Please refer to page 35 “Notes to the Information per Unit” for the calculation for the net income per unit.

*Explanation on the appropriate use of the forecast of results and other matters of special consideration
The forecast of results for the ninth fiscal period ending October 31, 2009 are calculated as of June 11, 2009 based on theassumptions presented on page 17 “Preconditions and Assumptions for the Fiscal Period Ending October 31, 2009”. 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 theforecast distribution per unit.
The following matters are important factors that may impact actual business results, etc. Moreover, factors that may impact
operating conditions are not limited to these factors alone.
・Sales profit and loss (including decrease of rent) and other matters accompanying sales of property, etc. for conducting
repayment of borrowings, accumulation of cash on hand and replacement of assets, etc.

-2-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

1.

Basic Structure — Overview of Companies Related to the Investment Corporation
There were no major changes to the “Structure of the Investment Corporation” from the most recent securities report (submitted on
January 29, 2009), and so it has been omitted from this document.

2.

Management Policy and Operating Conditions(1) Management Policy
There were no major changes to the “Investment Policy”, “Investment Strategy” and “Distribution Policy” from the most recent
securities report (submitted on January 29, 2009), and so it has been omitted from this document. However, there was a partial change
to the “Investment Policy” mentioned as follows. Please refer to page 50 “Change in Management Guidelines” for further details(2) Operating Conditions(1) Operating Conditions for the Eighth Fiscal Period
A. The Investment Corporation
The Investment Corporation was established on May 6, 2005 in accordance with the Investment Trust and Investment Corporation Law(“the Investment Trust Law”). On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of
the Tokyo Stock Exchange with a total of 75,400 investment units issued and outstanding. (Securities Code: 8972). Subsequently, theInvestment Corporation raised funds through public offerings including two global offerings. Consequently, as of April 30, 2009, the endof the eighth fiscal period, the number of investment units issued and outstanding totaled 200,000 units.
The Investment Corporation appointed Kenedix REIT Management, Inc. as its asset management company. In concert with the AssetManagement Company, the Investment Corporation strives to maximize cash distribution to investors by securing stable earnings andsustainable investment growth. To this end, the Investment Corporation adopts a dynamic and flexible investment stance that accuratelyreflects its environment and market trends, and endeavors to ensure a timely response to each and every opportunity. The Investment
Corporation endeavors to develop a diversified investment portfolio named “KENEDIX Selection,” adopting a three-point investment
criteria based on property type, area and size.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review, as the global economy slowed down due to the global financial market crisis, the Japanese
economy was in the downward phase of rapid deterioration as evident by the stagnation of domestic demand in addition to foreign
demand, sudden deterioration of the employment conditions and corporations facing extreme difficulty in obtaining financing and otherconditions.
As for the real estate market, according to the official land prices as of January 1, 2009, an analysis of the year-on-year change in averageland prices in Japan for the one year period from January 2008 decreased by 4.7% for commercial land and by 3.2% for residential land,
both changing from a year-on-year increase to a decrease for the first time in three years. Furthermore, the average for the three major
metropolitan areas, which had been increases for three consecutive years for commercial land and for two consecutive years forresidential land until last year, changed to a decrease at a rate exceeding that of regional areas. In the Tokyo Area, the average decreased
by 6.1% for commercial land and 4.4% for residential land, both changing from a year-on-year increase in the previous year to adecrease.
(b) Management Performance
As of the end of the seventh fiscal period, the Investment Corporation owned 69 properties with a total acquisition price of ¥222,053
million. In the fiscal period under review, the Investment Corporation sold 1 office building (initial acquisition price of ¥704 million) inTokyo Metropolitan Area and sold 1 office building (initial acquisition price of ¥2,350 million) in Other Regional Areas. As a result, thenumber of properties owned as of April 30, 2009 stood at 67, with a total acquisition price of ¥218,999 million.
Looking at the portfolio as a whole, 88.5% was comprised of office buildings, 5.6% of central urban retail properties and 5.8% ofresidential properties on an acquisition price basis. The occupancy ratio as of the end of the seventh fiscal period was 95.6% and as of theend of the eighth fiscal period was 95.7%, reflecting stable investment and asset management.

-3-

KENEDIX REALTY INVESTMENT CORPORATION (8972)＜Changes in Asset Size after Fourth Fiscal Period＞
Fourth Fiscal Period(as of April 30, 2007)
Total
Acquisition Price(Millions of Yen)
Office Buildings

Ratio
(%)

Fifth Fiscal Period(as of October 31, 2007)
Total
Acquisition Price(Millions of Yen)

Ratio
(%)

Sixth Fiscal Period(as of April 30, 2008)
Total
Acquisition Price(Millions of Yen)

Ratio
(%)

Seventh Fiscal Period(as of October 31, 2008)

Eighth Fiscal Period(as of April 30, 2009)

Total
Total
Ratio
Acquisition Price
Acquisition Price Ratio(%)(Millions of Yen)
(Millions of Yen) (%)

Type of Use
Area

115,979

66.2

137,97970.0

184,08086.4

196,965

88.7

193,91188.5

16,0599.1

16,0598.1

16,0597.5

12,3795.5

12,3795.6

43,052

24.5

43,05221.8

12,7095.9

12,7095.7

12,7095.8

Total

175,090100.0

197,090

100.0

212,848100.0

222,053

100.0

218,999 100.0

Tokyo Metropolitan Area

150,36485.8

162,51482.4

174,92382.1

189,23885.2

188,534

86.0

Other Regional Areas

24,726

14.1

34,576

17.5

37,92517.8

32,81514.7

30,46513.9

175,090100.0

197,090

100.0

212,848100.0

222,053

100.0

218,999 100.0

Central Urban Retail
Properties
Residential Properties

Total

Notes:
1. Total acquisition price is the total of acquisition price for each property classified by type and area.
2. Total acquisition price is rounded down to the nearest million yen. Percentages are rounded down to the nearest first decimal place.
Make Diversified Acquisitions
As of April 30, 2009, the Investment Corporation owned 67 properties for a total acquisition price of ¥218,999 million with
95.7% occupancy ratio. Supported by this asset base along with the management know-how of mid-sized office building
accumulated by the Asset Management Company, the Investment Corporation has acquired properties based on its diversified
property acquisition strategy. The Investment Corporation has also expanded the asset size of the portfolio based on a diverse rangeof property acquisition strategies.
In particular, the Investment Corporation has realized various types of property acquisition, from the acquisition of properties witha low occupancy ratio and lease-up in a short period of time (KDX Nishi-Gotanda Building and KDX Toranomon Building whichwere acquired during the fourth fiscal period and KDX Jimbocho Building which was acquired during the sixth fiscal period),
acquisition of property at the stage when construction of the building was yet to be completed (KDX Nagoya Sakae Building(Note), which land was acquired during the sixth fiscal period) and acquisition of property which Kenedix, Inc. was involved in
the development (KDX Harumi Building which was acquired during the seventh fiscal period), etc.
Note: The Investment Corporation has decided the property name of “Sakae 4-chome Office Building (Tentative Name)” to “KDX Nagoya Sakae
Building” on June 11, 2009. Same applies below.

Selling of Properties
The Investment Corporation succeeded in selling 2 residential properties during the third fiscal period, 2 residential properties
during the fourth fiscal period, 23 residential properties during the sixth fiscal period and 1 office building and 1 central urban
retail property during the seventh fiscal period. In the fiscal period under review, the Investment Corporation sold 1 office building(initial acquisition price of ¥704 million) located in Tokyo Metropolitan Area and 1 office building (initial acquisition price of¥2,350 million) located in Other Regional Areas. Details are as follows.
(Unit: Millions of Yen)
Total Initial

Sold Properties
Type (Number of Properties)

Area (Number of Properties)

Third Fiscal

Residential Property

Tokyo Metropolitan Area

Period(2 properties)(2 properties)

Fourth Fiscal

Residential Property

Tokyo Metropolitan Area

Period(2 properties)(2 properties)

Sixth Fiscal

Residential Property

Tokyo Metropolitan Area (16 properties)

Period(23 properties)

Other Regional Areas (7 properties)

SeventhCentral Urban Retail Property (1 property)

Fiscal Period

Office Building (1 property)

Other Regional Areas (2 properties)-4-

Total Profit / Loss

Acquisition Price from Property Sale
1,708

157

1,407

130

30,343

512

5,110

299

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Eighth Fiscal

Office Building (1 property)

Tokyo Metropolitan Area (1 property)

PeriodOffice Building (1 property)

Other Regional Areas (1 property)

3,054

△492

Operation and Management of Existing Properties
The Investment Corporation has appointed the Asset Management Company as its property management company for its entire
portfolio (excluding KDX Nagoya Sakae Building). In establishing a single point of contact for all matters relating to property
management activities, the Investment Corporation strives to secure consistent policies, specifications and procedures along withensuring swift and quality service. As of April 30, 2009, the investment portfolio is being managed generally at a high occupancy
ratio and the occupancy ratio as of the end of the seventh fiscal period (October 31, 2008) and as of the end of the fiscal period
under review was maintained at 95.6% and 95.7%, respectively. The Investment Corporation is satisfied with the quality ofproperty management.
Moreover, the Investment Corporation is continuing efforts to reduce operating costs to leverage scale merits and the know-how
cultivated through its management operations. For example, the Investment Corporation has succeeded in cost reductions in awide range of areas, such as the reduction of building maintenance costs by making a transition to manage properties in groups bybuilding maintenance companies and consolidating businesses, reduction of construction costs by calling for bids when placing
orders for construction, reduction in electricity costs by switching electricity providers, reduction of fees as a result of reviewing
trust administration, etc. Furthermore, after significantly reducing our construction budget, the Investment Corporation has
successfully reduced capital expenditures and repairs, maintenance and renovation expenses.
Regarding new tenants, the Investment Corporation is striving to increase tenant satisfaction in terms of hardware (buildings andfacilities) and software (operating and management services), such as through the implementation of appropriate construction forrepairs and maintenance, change of building maintenance company based on CS surveys, providing disaster prevention
information and other measures.
C. Capital Acquisition(a) Overview of Refinance
The Investment Corporation undertook borrowings of ¥18 billion (¥6 billion in long-term borrowings and ¥12 billion in short-termborrowings (Note 1)) to repay borrowings that matured during the eighth fiscal period, short-term borrowings of ¥2.5 billion (The Bank ofTokyo-Mitsubishi UFJ, Ltd.: Series 38-A) which was refinanced (The Bank of Tokyo-Mitsubishi UFJ, Ltd.: Series 37) during the eighthfiscal period and again matured during the eighth fiscal period and long-term borrowings of ¥3.5 billion (The Aozora Bank, Ltd.: Series
38-D) for prepayment of borrowings. Details are provided as follows.
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date.
Long-term borrowings refer to borrowings with a period of more than one year from the drawdown date to the repayment date. Sameapplies below.

Borrowings During the Eighth Fiscal Period
LenderClassification

Citibank Japan, Ltd. (Note 2)

Series 33-L

Aozora Bank, Ltd. (Note 3)
Resona Bank, Ltd.

Series 34

The Chuo Mitsui Trust and Banking Co., Ltd.

Series 35

Aozora Bank, Ltd.

Series 36-A

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(Note 2)

Series 36-L

Sumitomo Mitsui Banking Corporation

Series 36-B
-5-

Last
Borrowing Amount Drawdown
Borrowing
Repayment(¥ Billions)
Date
PeriodDate
November November
1.0 year
1.0
4, 2008
2, 2009
December December
1.0 year
2.0
8, 2008
8, 2009
January
January
1.0 year
1.0
13, 2009
13, 2010
February August 31,
6 months
0.5
27, 2009
2009
February
February
1.0 year
0.5
27, 2009
26, 2010
February
February
3.0 years
0.5
27, 2009
29, 2012

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Development Bank of Japan Inc.

Series 36-C

1.0

Series 37

2.5

Series 38-A

2.5

Series 38-B

2.0

Series 38-C

2.5

Aozora Bank, Ltd. (Note 3)

Series 38-D

3.5

Aozora Bank, Ltd.

Series 38-E

2.0

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(Note 4)The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(Note 4)The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Chuo Mitsui Trust and Banking Co., Ltd.
Resona Bank, Ltd.

February27, 2009
March 16,2009
April 30,
2009
April 30,
2009
April 30,
2009
April 30,
2009
April 30,
2009

August 31,
3.5 years
2012
April 30,
1.5 months
2009
October
6 months
30, 2009
April 30,
1.0 year
2010
April 28,
2.0 years
2011
October
2.5 years
31, 2011
April 27,
3.0 years
2012

Note 2: Borrowing is based on the commitment line agreements.
Note 3: Series 38-D borrowings from the Aozora Bank, Ltd. has been applied toward the prepayment of Series 24 borrowings (¥1.5 billion)
from the same lender with a repayment date of October 25, 2009, Series 34 borrowings (¥1.5 billion) from the same lender with arepayment date of December 8, 2009 and Series 36-A borrowings (¥0.5 billion) from the same lender with a repayment date ofAugust 31, 2009.
Note 4: Series 38-A borrowings from The Bank of Tokyo-Mitsubishi UFJ, Ltd. has been applied toward the repayment of Series 37 (¥2.5
billion) which was undertaken March 16, 2009 from the same lender with a repayment date of April 30, 2009.

As a result, the balance of interest-bearing debt stood at ¥98.75 billion as of April 30, 2009, comprising ¥86.75 billion inborrowings (¥76.75 billion in long-term borrowings and ¥10 billion in short-term borrowings) and ¥12 billion in investment
corporation bonds.
As of April 30, 2009, ¥29.5 billion out of ¥35 billion of long-term borrowings which have floating interest rates have been fixedby utilizing interest-swap agreements. In addition, the long-term debt ratio (Note 5) was 89.8% and the long-term fixed interest
debt ratio (Note 6) was 84.3%.
Note 5: Long-term debt ratio＝（Balance of long-term borrowings＋Balance of investment corporation bonds）÷（Total borrowings＋Balanceof investment corporation bonds）Long-term debt ratio is rounded down to the nearest first decimal place.
Note 6: Long-term fixed interest debt ratio＝（Balance of long-term fixed interest rate borrowings＋Balance of investment corporation bonds）
÷（Total borrowings＋Balance of investment corporation bonds）The balance of long-term fixed interest rate borrowings includes
borrowings with floating interest rates effectively fixed by utilizing interest-rate swap agreements. Long-term fixed interest debt ratio isrounded down to the nearest first decimal place.

In addition, to apply funds toward the repayment of Series 5-B (The Chiba Bank, Ltd.: ¥0.8 billion) and Series 5-C (Mitsui
Sumitomo Insurance Co., Ltd.: ¥0.7 billion) with repayment dates of February 27, 2009, the Investment Corporation undertook
new borrowings from Sumitomo Mitsui Banking Corporation worth ¥0.5 billion (borrowing period: 3 years) and from
Development Bank of Japan Inc. worth ¥1.0 billion (borrowing period: 3.5 years).
The balance of borrowings according to financial institution as of April 30, 2009 is as follows.

LenderSumitomo Mitsui Banking Corporation
The Chuo Mitsui Trust and Banking Co., Ltd.
Development Bank of Japan Inc.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation

Seventh Fiscal Period(as of October 31, 2008)
18.95
14.50
11.00
12.00
9.80
7.20
-6-

(Unit: Billions of Yen)
Eighth Fiscal Period
Increase /(as of April 30, 2009)
Decrease
19.45
+0.50
14.50
12.00
+1.00
12.00
9.80
7.20
-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

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

4.30
4.00
2.50
1.70
0.80
86.75

4.30
4.00
2.50
1.00
0.0
86.75

△0.70
△0.80
-

(b) Overview of Posting Collateral
The Investment Corporation aims to secure stable financial management by such measures as diversifying its interest-bearing
debt maturities to reduce refinancing risks and maintaining the ratio of its long-term borrowings at or over a certain level.
On the other hand, amid the global credit crunch trend, concerns have arisen within the J-REIT market in Japan regarding fundprocurement. The Investment Corporations’ borrowing periods have tended to be shortened, and the ratio of long-termborrowings have been lowered. The Investment Corporation has concluded agreements on April 27, 2009 to post fixedmortgages for real estate and to post fixed pledges for trust beneficiary interests in real estate for a certain portion of the assetsthat are owned by the Investment Corporation, with all lenders involved in the Investment Corporation’s borrowings as
collateral right holders, since posting collateral for part of its assets will be beneficial for conducting smooth fund procurement.
In addition, the Investment Corporation conducted provisional registrations for the concerned fixed mortgages.
Moreover, the comparisons of the borrowing periods before posting collateral and after posting collateral from the same lenderduring the fiscal period under review (excluding borrowings based on commitment line agreements) are as follows.
Furthermore, the use of funds procured through borrowings after posting collateral is not necessarily limited to the repayment of
the borrowings before posting collateral. (Note)
Before Posting Collateral

After Posting Collateral
Borrowing
Classification
Borrowing Period
Classification
Period6 months (Note)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
1.5 months (Note)
Series 37
Series 38-A、B
1 year
The Chuo Mitsui Trust and Banking Co., Ltd.
1 yearSeries 35
2 years
Series 38-C
Resona Bank, Ltd.
1 yearSeries 34
2 years
Series 38-C
2.5 years (Note)
6 months (Note)
Aozora Bank, Ltd.
Series 38-D、E
Series 36-A、34
3 years
1 year (Note)
Note: Out of the borrowings after posting collateral, the following are borrowings whose use of funds was the repayment ofborrowings before posting collateral during the fiscal period under review.
・Series 38-A borrowed from The Bank of Tokyo-Mitsubishi UFJ, Ltd. was applied toward the repayment of Series 37.
・Series 38-D borrowed from Aozora Bank, Ltd. was applied toward the repayment of Series 34 and Series 36-A.
Lender

The assets that were pledged as collateral on April 27, 2009, are the following real estate and trust beneficiary interest in realestate, as well as other contingent assets (right to claim fire insurance proceeds, etc.).
(Unit: Millions of Yen)
Appraisal Value at End of
Type

No.

Property Name

Area

Type of Assets

Eighth Fiscal Period(As of April 30, 2009)

OfficeBuildings

A-1

KDX Nihonbashi 313 Building

A-3

Higashi-Kayabacho Yuraku Building

A-5

KDX Nakano-Sakaue Building

-7-

Tokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estate

7,410
5,790
2,530

KENEDIX REALTY INVESTMENT CORPORATION (8972)

OfficeBuildings

A-6

Harajuku F.F. Building

A-8

Kanda Kihara Building

A-12

Portus Center Building

A-14

KDX Funabashi Building

A-15

KDX Hamacho Building

A-16

Toshin 24 Building

A-18

KDX Omori Building

A-19

KDX Hamamatsucho Building

A-20

KDX Kayabacho Building

A-22

KDX Shin-Yokohama Building

A-24

KDX Minami Semba Dai-1 Building

A-25

KDX Minami Semba Dai-2 Building

A-26

KDX Kiba Building

A-27

KDX Kajicho Building

A-29

KDX Higashi-Shinjuku Building

A-30

KDX Nishi-Gotanda Building

A-31

KDX Monzen-Nakacho Building

A-32

KDX Shiba-Daimon Building

A-34

KDX Hon-Atsugi Building

A-37

KDX Ochanomizu Building

A-39

KDX Toranomon Building

A-40

Toranomon Toyo Building

A-41

KDX Shinjuku 286 BuildingTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estate

Other Regional

Trust beneficiary interest

Areas

in real estateTokyo
Metropolitan Area
Tokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estate

Other Regional

Trust beneficiary interest

Areas

in real estate

Other Regional

Trust beneficiary interest

Areas

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo
Metropolitan Area
Tokyo
Metropolitan Area

-8-

Real Estate

3,090
1,950
5,250
2,140
2,660
5,030
3,980
3,780
3,030
2,610
1,310
1,290
1,630
2,450
3,360

Real Estate

4,290Real Estate

1,310

Tokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estate

5,830
1,100
7,010
4,050
10,1002,360

KENEDIX REALTY INVESTMENT CORPORATION (8972)

OfficeBuildings

Residential
Properties

A-42

Karasuma Building

A-44

KDX Sendai Building

A-46

Hiei Kudan-Kita Building

A-48

Kawasaki-Ekimae Hon-cho Building

A-49

Nissou Dai-17 Building

A-50

Ikejiri-Oohashi Building

A-51

KDX Hamacho Nakanohashi Building

A-53

KDX Hakata-Minami Building

A-55

Shin-toshin Maruzen Building

A-56

KDX Jimbocho Building

A-60

KDX Harumi Building

B-18

Venus Hibarigaoka

B-19

Residence Charmante Tsukishima

C-1

Frame Jinnan-zaka

Trust beneficiary interest

Areas

in real estate

Other Regional

Trust beneficiary interest

Areas

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo
Metropolitan Area
Tokyo

Trust beneficiary interestin real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estate

Areas

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Total of 40 properties

Real EstateTokyo

Metropolitan Area

Property

Real Estate

Metropolitan Area

Other Regional

Central Urban
RetailOther Regional

Real EstateTokyo

Trust beneficiary interest

Metropolitan Area

in real estate

Other Regional

Trust beneficiary interest

Areas

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estateTokyo

Trust beneficiary interest

Metropolitan Area

in real estate

-

-

5,680
1,640
8,030
3,300
1,870
1,850
2,010
4,490
1,920
2,510
10,6001,510
4,720

10,900156,370

Assets that are not pledged as collateral as of April 30, 2009 are 21 office buildings (total appraisal value at end of eighth fiscal
period ¥53,055 million), 5 residential properties (total appraisal value at end of eighth fiscal period ¥5,048 million) and 1 central
urban retail property (appraisal value at end of eighth fiscal period ¥1,980 million), or a total of 27 properties (total appraisal
value at end of eighth fiscal period ¥60,083 million).
(c) Diversification of Debt Maturities
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates for its
interest-bearing debt. Moreover, the total balance of interest-bearing debt as of the end of the eighth fiscal period (April 30, 2009)
maturing in each fiscal period is as follows.

-9-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Balance of Interest-Bearing Debt Maturing in Each Fiscal Period of the Investment Corporation
Long-term borrowings

Short-term borrowings(Billions of Yen)

Investment Corporation

25
20
15

9.00

10

18.28
4.53

4.53

5.00

5.00

5

15.53
10.47

10.03

0

9th
period10th
period5.00

12th
period11th
period13th
period14th
period

2.38

3.00

3.00

15th
period16th
period17th
period3.00
18th
period19th
period20th
period21th
period22th
period23th
period24th
Period(Reference) Balance of Interest-Bearing Debt Maturing in Each Half-Year Period ending on March 31 and September 30
Long-term borrowings

Short-term borrowings(Billions of Yen)
20

Investment Corporation

18
16
9.00

14
12

7.03

10

18.53

8

11.53
12.28

6

9.97

4
2
0

8.00
6.38
2.00

0.03

2009
1H

2009
2H

2010
1H

2010
2H

2011
1H

2011
2H

2012
1H

5.00
3.00

3.00

2012
2H

2013
1H

3.00

2013
2H

2014
1H

2014
2H

2015
1H

2015
2H

2016
1H

2016
2H

Note: 1H is from April 1 to September 30, 2H is from October 1 to March 31 of the following year and are not identical with the fiscal
period of the Investment Corporation (e.g. 2009, 1H is from April 1, 2009 to September 30, 2009)(d) Status of Credit Rating
The Investment Corporation acquired a credit rating from Moody’s Investors Services, Inc. in February 2006, and credit ratingfrom Japan Credit Rating Agency, Ltd. in December 2006. Details of the credit ratings as of April 30, 2009 are as follows.
Credit Rating Agency
Moody’s Investors Service

Japan Credit Rating Agency, Ltd.

Details of the Ratings
Issuer Credit Rating
Senior Unsecured Long-Term Debt Rating
Outlook
Senior Debts
OutlookBa1
Negative
A+
Negative

In addition, the changes of the credit rating from Moody’s Investors Service, Inc. (“Moody’s”) during the fiscal period
under review are as follows.
・ On January 15, 2009, there was an announcement of the rating change, A3 (Stable) to Baa1 (The rating remains
under review for possible downgrade.), by Moody’s for the following reasons. “The downgrade, and the factthat the rating remains under review for possible further downgrade, reflects Moody’s concern that Kenedix-10-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Realty Investment Corporation’s financial flexibility will be stressed due to the current financial turmoil andthe concomitant credit crunch in the real estate financial market.”・ On March 6, 2009, there was an announcement of rating change, Baa1 (The rating remains under review forpossible downgrade.) to Baa2 (The rating remains under review for possible downgrade.), by Moody’s for thefollowing reasons. “The downgrade reflects that, should Kenedix Realty Investment Corporation convert its
portfolio properties into collateral for its loans, its unsecured debt may become subordinated to the loans.”
・ On April 21, 2009, there was an announcement of the rating change, Baa2 (The rating remains under review forpossible downgrade.) to Ba1 (Negative) by Moody’s, “the downgrade reflects Moody’s concern that Kenedix
Realty Investment Corporation’s financial flexibility will be stressed due to the credit crunch plaguing the realestate market. The ratings also take into account that Kenedix Realty Investment Corporation’s rated bonds aresubordinated to its loans.”
Furthermore, credit rating reviews from Japan Credit Rating Agency, Ltd. (“JCR”) during the fiscal period under review
were as follows.
・ On February 6, 2009, there was an announcement by JCR to affirm the A+ rating and to change the rating
outlook from Stable to Negative.
・ On April 22, 2009, there was an announcement by JCR to affirm the A+ rating and Negative rating outlook.
(e) Status of Shelf Registration
The Investment Corporation filed a debt shelf registration statement in February 2007, and on February 14, 2009, the issuance
period has matured. Therefore, the Investment Corporation once again filed a debt shelf registration statement on February 6,
2009. Details are as follows.

Planned Issue Amount
Planned Issuance Period
Use of Funds

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

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

Planned Issue Amount
Planned Issuance Period
Use of Funds

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

-11-Secondary Offering¥15,000,000,000
May 14, 2009 to May 7, 2011
Not applicableKENEDIX REALTY INVESTMENT CORPORATION (8972)(f) Status of Commitment Line Agreement
The status of the commitment line agreements during the fiscal period under review are as follows.
LenderThe Bank of Tokyo-Mitsubishi UFJ, Ltd.
Citibank Japan, Ltd.
Borrowings Available¥2,500 million (Note 1)¥2,500 million (Note 2)
Borrowings Balance¥2,500 million¥2,500 million
Commitment Period
March 21, 2008 to March 19, 2009
January 11, 2008 to January 8, 2009
Notes:
1. The commitment period of the commitment line agreement concluded with The Bank of Tokyo-Mitsubishi UFJ, Ltd. hasalready expired. Furthermore, the expiration date of the commitment line agreement is March 31, 2011, set in thememorandum of understanding executed on September 26, 2008. However, since the commitment period has already
expired, the Investment Corporation may not undertake new borrowings.
2. The commitment period and the expiration date of the commitment line agreement concluded with Citibank Japan, Ltd has
already expired. Furthermore, the agreement has not been renewed.
As of April 30, 2009, borrowings based on the commitment line agreement are as follows.
Balance
Drawdown DateClassification
Lender(Billions of Yen)

Repayment Date

Series 32-L
(Short-Term)

Citibank Japan, Ltd.

1.5

October 31, 2008

Series 33-L
(Short-Term)

Citibank Japan, Ltd.

1.0

November 4, 2008 November 2, 2009

Series 36-L
(Short-Term)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

0.5

February 27, 2009

February 26, 2010

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

2.0

September 30, 2008

March 31, 2011

October 30, 2009

Note: Concerning Series 31-L (¥2.0 billion), the Investment Corporation executed a memorandum of understanding on
September 26, 2008 that sets March 31, 2011 as the expiration date of the commitment line agreement.
D. Holding of General Meetings of Unitholders
The Investment Corporation held its Third General Meeting of Unitholders on January 22, 2009. All the agenda items wereresolved as initially submitted including a change to certain sections of the Articles of Incorporation, and the appointment of an
Executive Director, Substitute Executive Director and two Supervisory Directors.
E. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥8,204
million, operating income of ¥3,463 million, ordinary income of ¥2,435 million and net income of ¥2,434 million for its eighthfiscal period. In accordance with Article 67.15 of the Special Taxation Measures Law, the Investment Corporation distributes thetotal amount of its unappropriated retained earnings for each period. Cash distribution for the eighth fiscal period was ¥12,172 per
unit

-12-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Outlook
A. Investment Environment
Ever since the bankruptcies of major financial institutions occurred in the U.S. in September 2008, the financial crisis showed signs ofworsening and prolonging and has started to spread around the world. The slowdown of the Japanese economy is rapidly increasing inseverity due to the large drop in share prices and sharp yen appreciation which have led to a further cooling down in business andconsumer confidence. Furthermore, there are concerns that the economic slowdown will continue for an extended period of time due tolarge-scale employment adjustments, evidence of knock-on effects from the domestic financial side to the real economy, a risk that thecircumstances surrounding the global economy will worsen further and other factors.
As for the real estate market, official land prices were announced in March 2009 and the upward trend that had lasted for three years until
last year changed to a downward trend (commercial land for the three major metropolitan areas decreased by 5.4%). Reasons for thischange are the economic slowdown and rise of vacancy rates of office buildings, etc. in correlation with the slowdown, increase of
inventory as a result of a poor sales of condominiums, etc., and effects of the downturn of the real estate market due to decreasing
demand, etc. in light of the decline in real estate investment and loan for real estate.
In the office building leasing market, it is becoming increasingly clear that the trend is placing priority on low rents one bears over officebuilding location or facility standards as a result of the effects of the economic slowdown. For the three major metropolitan areas, thetrend to shift from city centers where rent levels are high to surrounding areas and a shift from expensive large-sized office buildings to
mid-sized office buildings that are cheaper in comparison was seen. In these areas, it seems that the two trends of an increase in vacancy
rates and downward adjustments of rents will continue to clash for the near term.
B. Future Management Policies
The Investment Corporation adopts the basic policy of conducting dynamic and flexible investment that accurately reflects the trends
and ensures a timely response, and developing a diversified investment portfolio focused on a three-point investment criterion based on
property type, area and size. From this standpoint and in light of the investment environment described above (the Japanese economy,
land price trends, leasing market for office buildings, etc.), the Investment Corporation creates an existing property management strategy,
property investment strategy and financial strategy in a dynamic and flexible manner as set forth below.
(a) Existing property management strategy
Taking into consideration economic and real estate market trends, the Investment Corporation adopts a tenant-oriented approach to its
leasing activities with aims of ensuring a timely and flexible responses as well as optimal tenant satisfaction. Accordingly, theInvestment Corporation will aim to maintain / increase of the cash flow by offering office environment with high tenant satisfaction.
Based on the aforementioned, the Asset Management Company undertakes property management activities as follows:・Identify satisfaction through use of tenant surveys
・Reduction of Construction Budget
・Measures to Maintain and Raise Competitiveness of Properties
・Leasing management according to the market environment
・Careful control of management and operating costs by taking advantage of portfolio size
Identify tenant satisfaction through use of tenant surveys
The Investment Corporation recognizes each tenant as a key customer and strives to enhance customer satisfaction and raise thecompetitiveness of its properties as the means to maintain and increase earnings.
The Investment Corporation conducted a customer satisfaction survey (“CS Survey”) through J.D. Power Asia Pacific, Inc., aninternationally recognized company that engages in customer satisfaction evaluation, to better understand the needs of its tenants and takesteps to respond to their preferences. As a part of this survey the administration officers of each tenant and tenant employees were asked torespond to many questions concerning buildings and facilities as well as operating and management services. The Investment Corporation
conducted the first CS Survey, which covered 20 of its properties, during the second fiscal period, and the second CS Survey, which
covered 44 of its properties, during the fifth fiscal period.
Plans are in place to conduct a third CS Survey which is to cover 58 properties during the fiscal period ending October 31, 2009.
By continuously conducting such surveys, the Investment Corporation will aim to increase customer satisfaction, generate
improvements in rent levels and asset values, promote enhanced earnings and aim to maintain and increase cash flow.
-13-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Reduction of the Construction Budget
Backed by the favorable leasing market for office buildings in the past, the Investment Corporation had thus far been proactively
conducting construction to enhance value under the objective of maintaining and improving rent levels and asset values. However, thebudget for major construction to enhance value has been reduced starting from the fiscal period under review (fiscal period ended April
30, 2009), due to having completed the bulk of construction measures at many of its portfolio properties. For the ninth fiscal period andonwards, the Investment Corporation continues to conduct management under the policy of keeping construction expenditures to thescope necessary.
Moreover, the following are changes in the actual costs and budgets of the repairs, maintenance and renovation plans (construction
budget) and changes in depreciation expenses.
Construction actual cost・budget（\Miillions）

Depreciation

1800
1500
1200
900
600

1357

1392

1302

1430

1294

1445

1460

1429

1452

1030
651

300

549

0
5th Period
Result6th Period
Result7th Period
Result8th Period
Result9th Period
Budget10th Period
BudgetMeasures to Maintain and Raise Competitiveness of Properties
The Investment Corporation aims to provide attractive mid-sized office buildings in order to enhance portfolio value and rental revenues.
The Investment Corporation believes that the quality of mid-sized office buildings in Japan vary considerably depending on the nature of
the owner. For example, a building owned by an individual or small company that owns only one or a few buildings may not have theresources to provide high-quality maintenance. Furthermore, when a building is owned by a large company, property management isoften dictated by that company’s priorities and does not necessarily correspond to tenant needs or satisfaction.
The Investment Corporation aims to provide certain uniform standards in regards to specifications and services that tend to differ by
property and will implement measures to enhance the value by carrying out property management based on these unified standards.
Furthermore, it aims to maintain the rent levels and asset values by implementing appropriate construction for repairs and maintenance.
Leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary target of the Investment Corporation’s investment, are that manyof the tenants generally tend to be small- and medium-sized enterprises and turnover ratios are relatively high. Therefore, in the leasing
aspect, the Investment Corporation implements leasing activities in a timely and flexible manner by adopting the basic policy ofendeavoring to maximize revenues for the medium- to long-term through maintaining occupancy ratios, while taking into accounteconomic and real estate market trends.
Concerning the solicitation of new tenants, the Investment Corporation strives to shorten the period of vacancy and boost the occupancy
ratio by implementing dynamic and flexible leasing activities through the sharing of information closely with leading brokers, holding ofpreviews, marketing directly to corporations, utilizing guarantee companies and other measures.
On the other hand, the Investment Corporation will endeavor to conduct property management so as to increase customer satisfaction by-14-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

adopting the basic policy of maintaining current conditions in serving existing tenants.
Careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation utilizes the scale merits of owning many properties and the negotiating strength acquired through its past
management performance to reduce building maintenance costs. The Investment Corporation has managed to reduce building
maintenance expenses for office buildings, trust fees and electricity costs at some properties by reviewing the content of building
maintenance. In addition, the Investment Corporation has managed to improve the efficiency of content of maintenance and also
managed to reduce costs by consolidating the building maintenance company for office buildings in Tokyo.
The Investment Corporation will continue to carefully control management and operating costs by periodically reviewing its property
management standards to ensure that they remain relevant and appropriate for each property.
The Investment Corporation has appointed the Asset Management Company as its sole property management company for the entire
portfolio (excluding KDX Nagoya Sakae Building) as of the end of the eighth fiscal period. In establishing a single point of contact for
all matters relating to property management activities, the Investment Corporation strives to secure consistent policies, specifications andprocedures along with ensuring swift and quality service.
(b) New Property Investment Strategy and Sales Policy
The Investment Corporation has thus far been acquiring investment properties by considering (1) the weighted average cost of capital,
which is based on the (2) level of return on distributions, which is calculated from the investment unit price and distributions per unit and(3) debt financing costs and interest-bearing debt ratio. Hereafter, in light of the recent uncertain market environment and other factors,
the Investment Corporation will no longer aim to increase asset and for the time being.
Accordingly, concerning central urban retail properties and residential properties, the Investment Corporation will not only refrain fromconducting new investments, but will also place such properties on the top of the list of properties to sell while taking into consideration
the market environment, asset size and other factors. In addition, in light of the area and size of individual properties and depending on
the sales terms and conditions, the Investment Corporation will not exclude office buildings either from the list of properties that could besold. Moreover, the Investment Corporation will not exclude assets whose cash flow show no signs of improvement for the short-termfrom the list of properties that could be sold.
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, and will continue to aim to build a strong portfolio focusing on mid-sized
office buildings.
(c) Financial Strategy
The Investment Corporation will continue to pursue debt financing on an unsecured and unguaranteed basis and as well as makearrangements to ensure fixed interest rate debt in line with interest rate trends and other considerations. In addition, the Investment
Corporation will seek to diversify its debt repayment period to reduce refinancing risk. Furthermore, the Investment Corporation will
pursue stable financial management through such measures as continuing to maintain long-term debt ratios above prudent levels.
Furthermore, through prepayment of borrowings (mainly borrowings whose repayment dates will arrive within 1 year) by refinancing
them as long-term borrowings and other measures, the Investment Corporation will aim to extend the average life of its debts.
The Investment Corporation will continue to maintain its conservative leverage policy by taking such measures as keeping the ratio ofinterest-bearing debt to total assets at a prudent level. Furthermore, the Investment Corporation may choose to decrease its
interest-bearing debt ratio through the sale of property, etc
Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial
institutions, especially mega-banks, trust banks and Development Bank of Japan, Inc., as well as aim for more conservative financial
management than ever before by increasing its cash position and other means.
(d) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aim ofpromptly providing a wide range of relevant information to investors. In specific terms, the Investment Corporation provides information
through the Timely Disclosure Network System (TDnet), which is a system operated by the Tokyo Stock Exchange, as well as press
releases and its Web site (URL: http://www.kdx-reit.com/eng/ ).
-15-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(3) Important Subsequent Events
There were no important events following account settlement of the eighth fiscal period.

-16-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Outlook
Forecasts for the ninth fiscal period (May 1, 2009 to October 31, 2009) are presented as follows. Please refer to the “Preconditions andAssumptions for the Fiscal Period Ending October 31, 2009” below for factors that underpin forecasts.
Operating Revenues
Ordinary Income
Net Income
Distribution per Unit
Distribution in Excess of Earnings per Unit

¥7,898 million¥2,381 million¥2,380 million¥11,900¥0

Note: Forecast figures are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income anddistribution per unit may differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does notguarantee payment of the forecast distribution per unit. The following matters are important factors that may impact actual business results,
etc. Moreover, factors that may impact operating conditions are not limited to these factors alone.
・Sales profit and loss (including decrease of rent) and other matters accompanying sales of property, etc. for conducting repayment ofborrowings, accumulation of cash on hand and replacement of assets, etc.

“Preconditions and Assumptions for the Fiscal Period Ending October 31, 2009”

Calculation Period
Property Portfolio

Operating Revenues

Operating Expenses

Non-Operating Expenses

Debt Financing and Investment

Preconditions and Assumptions● The ninth fiscal period: May 1, 2009 to October 31, 2009 (184 days)●Forecasts are based on the 67 properties held as of June 11, 2009. This will remain unchanged (no newproperties will be acquired and no existing properties will be sold) up to and including the end of theninth fiscal period excluding the following acquisition of property.
KDX Nagoya Sakae Building (old name: Sakae 4-chome Office Building (Tentative Name))
Planned acquisition date July 1, 2009
Planned acquisition price ¥3,550 million (building portion)● 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.
●Rental revenues for KDX Nagoya Sakae Building, written above, were calculated based on theassumption that there are no guaranteed rents. This is because the article concerning the master leaseagreement with guaranteed rents was deleted from the real estate acquisition agreement dated April 25,
2008 through a change agreement concluded on June 11, 2009.
● Property-related expenses other than depreciation are estimated based on historic expenses, adjusted toreflect the expenses variables.
● 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 included in the acquisition price of the property.
● Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by theasset management company for each property and amounts considered essential for each period.
Actual repairs, maintenance and renovation expenses for each fiscal period may, however, differ
significantly from estimated amounts due to unforeseen circumstances or emergencies.
● For the ninth fiscal period, an amount of ¥548 million has been estimated for taxes and public dues
(property tax and city-planning tax, etc.).
● For the ninth fiscal period, an amount of ¥1,460 million has been estimated for depreciation expense.
● The Investment Corporation is amortizing unit issuance costs over a period of three years using thestraight-line method.
● Interest payable (including finance costs) of ¥1,063 million is forecasted for the ninth fiscal period.
●The balance of borrowings as of June 11, 2009 is ¥86.75 billion. Forecasts are based on the assumption-17-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Corporation Bonds

Investment Units Issued andOutstanding
Distributions per Unit

Distributions in Excess of
Earnings per Unit
Other

that the balance of borrowings shall remain unchanged for the rest of the ninth fiscal period.
● The balance of investment corporation bonds as of June 11, 2009 is ¥12.0 billion. Forecasts are also
based on the assumption that the balance of investment corporation bonds shall remain unchanged in
the ninth fiscal period.
● The number of investment units issued and outstanding as of June 11, 2009 is 200,000 units. Forecasts
are based on the assumption that the number of investment units issued and outstanding shall remainunchanged for the ninth fiscal period.
● Distributions per unit of amounts less than ¥1 are omitted. Calculations are based on a 100%
distribution of unappropriated retained earnings.
● Actual distributions per unit may differ significantly from forecasted figures due to a variety of reasons
including movements in investment assets, rental revenues impacted by tenant movements or theincidence of major unforeseen renovation expense.
● The Investment Corporation does not currently anticipate distributions in excess of earnings per unit.
● Forecasts are based on the assumption that any revisions to regulatory requirements, taxation,accounting standards, public listing regulations or requirements of the Investment Trusts Association,
Japan will not impact forecast figures.
● Forecasts are based on the assumption that there will be no major unforeseen changes to economic
trends and in real estate and other markets.

-18-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

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

Eighth Fiscal Period(As of October 31,2008)(As of April 30, 2009)ASSETS
Current assets
Cash and deposits *3

6,799,392

9,981,142

Cash and deposits in trust *3

6,230,408

5,626,942

Accounts receivable-trade187,278

260,568

Prepaid expenses

54,92259,595

Consumption taxes receivable

180,365-

Other

12,773

13,727

13,465,140

15,941,976

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings

11,004,879

11,230,049

Accumulated depreciation△494,742△696,022

Buildings, net

10,510,137

10,534,027

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

9,395

9,402

△1,459△2,078

7,936

7,323

35,42837,885△18,174△23,222

17,254

14,663Tools, furniture and fixtures

39,05239,653

Accumulated depreciation△3,379△5,367

Tools, furniture and fixtures, net

35,67334,286Land

29,093,099

29,104,205

Buildings in trust

63,333,891

62,890,727

Accumulated depreciation△5,345,618△6,378,641

Buildings in trust, net

57,988,273

56,512,085

198,074

198,761△48,445△56,034

Structures in trust
Accumulated depreciation

149,629

142,726

Machinery and equipment in trust

Structures in trust, net

870,276

863,259

Accumulated depreciation△222,411△267,320

647,864

595,938

Tools, furniture and fixtures in trust

342,957

340,194

Accumulated depreciation△96,131△115,256

Tools, furniture and fixtures in trust, net

246,826

224,937

126,813,694

124,725,632

225,510,388

221,895,828

285,350

285,350

Machinery and equipment in trust, net

Land in trust
Total property, plant and equipment *3
Intangible assets
Leasehold right
Right of using water facilities in trust *3
Total intangible assets
Investments and other assets

-19-

-

1,382

285,350

286,732

KENEDIX REALTY INVESTMENT CORPORATION (8972)(Thousands of Yen)
Seventh Fiscal Period

Eighth Fiscal Period(As of October 31,2008)(As of April 30, 2009)

Lease and guarantee deposits

12,226

11,982Long-term prepaid expenses

213,679

498,863

Deferred tax assets
Total investments and other assets
Total noncurrent assets

6,399

6,554

232,306

517,400

226,028,045

222,699,960

15,26910,179Deferred assets
Business commencement expenses
Investment corporation bond issuance costs

51,30645,524

Investment unit issuance expenses

88,83747,368

Total deferred assets

155,412103,072

239,648,597

238,745,009

Total assets(Thousands of Yen)
Seventh Fiscal Period

Eighth Fiscal Period(As of October 31,2008)(As of April 30, 2009)

Liabilities
Current Liabilities
Accounts payable

407,070

304,660

Short-term loans payable *2 *3

5,000,000

10,000,000

Current portion of long-term loans payable *3

19,000,000

9,000,000

Accounts payable-other321,639

310,173

Accrued expenses

141,200

127,475

605

649

Income taxes payable
Accured consumption taxes

36,004

288,058

Advances received

1,238,194

1,173,618

Deposits received

6,411

68,644

26,151,125

21,273,278

Total current liabilities
Noncurrent liabilities
Investment corporation bond

12,000,000

12,000,000

Long-term loans payable *2 *3

62,750,000

67,750,000

Tenant leasehold and security deposits

1,515,158

1,536,640

Tenant leasehold and security deposits in trust

9,128,464

8,770,327

16,271

16,66585,409,894

90,073,632

111,561,020

111,346,911

124,973,750

124,973,750

Unappropriated retained earnings(undisposed loss)

3,123,698

2,434,458

Total surplus

3,123,698

2,434,458

128,097,449

127,408,208△9,872△10,110

Derivatives liabilities
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus

Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets *1
Total liabilities and net assets-20-△9,872△10,110

128,087,577

127,398,097

239,648,597

238,745,009

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

Eighth Fiscal Period

May 1, 2008 to

November 1, 2008 to

October 31, 2008

April 30, 2009

Operating revenue
Rent revenue-real estate *1

7,111,092

7,232,621

Other lease business revenue *1

1,045,424

971,500

Gain on sales of real estate properties *2

299,716-

Total operating revenue

8,456,233

8,204,121

3,678,719

3,603,207-

492,462

442,469

434,810

Operating expenses
Expenses related to rent business *1
Loss on sales of real estate properties *3
Asset management fee
Directors' compensation

5,400

5,400

Asset custody fee

23,48324,077Administrative service fees

50,79154,354

Audit fee

9,300

10,800

Other operating expenses

101,330

115,822

Total operating expenses

4,311,495

4,740,935

4,144,738

3,463,186

Operating income
Non-operating income
Interest income

11,158

8,280

Other

3,144

3,657

Total non-operating income

14,303

11,938689,468

745,040

Interest expenses on investment corporation bonds

114,321

113,378

Borrowing related expenses

145,680

107,827

Non-operating expenses
Interest expenses

Amortization of investment corporation bond issuance costs

5,877

5,781

Amortization of investment unit issuance expenses

41,46841,468

Amortization of business commencement expenses

5,089

5,089

Other

32,72821,2081,034,635

1,039,795

Ordinary income

3,124,406

2,435,329

Income before income taxes

Total non-operating expenses

3,124,406

2,435,329

Income taxes-current

605

959

Income taxes-deferred

187

10

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

-21-

792

969

3,123,613

2,434,359

85

98

3,123,698

2,434,458

KENEDIX REALTY INVESTMENT CORPORATION (8972)(Thousands of Yen）

(3) Statements of Unitholders’ Equity
Seventh Fiscal Period

Eighth Fiscal Period

May 1, 2008 to

November 1, 2008 to

October 31, 2008

April 30, 2009

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

124,973,750

124,973,750

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

124,973,750

124,973,750

3,342,285

3,123,698△3,342,200△3,123,600

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

3,123,613

2,434,359

Total changes of items during the period△218,586△689,240

3,123,698

2,434,458

128,316,035

128,097,449△3,342,200△3,123,600

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

3,123,613

2,434,359△218,586△689,240

128,097,449

127,408,208△1,873△9,872

Net change of items other than owners' equity△7,998△238

Total changes of items during the period△7,998△238△9,872△10,110△1,873△9,872

Net change of items other than owners' equity△7,998△238

Total changes of items during the period△7,998△238△9,872△10,110

128,314,161

128,087,577△3,342,200△3,123,600

3,123,613

2,434,359

Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Distribution from surplus
Net income
Net change of items other than owners' equity
Total changes of items during the period
Balance at the end of current period-22-△7,998△238△226,584△689,479

128,087,577

127,398,097

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

Eighth Fiscal Period(May 1, 2008 to October 31, 2008)(November 1, 2008 to April 30, 2009)

I. Retained earnings at the end of period

3,123,698,986

2,434,458,226

II. Total Distribution

3,123,600,000

2,434,400,000(Distribution per Unit)（15,618）(12,172)

98,98658,226

III. Retained Earnings bring to next period

The Investment Corporation determines

The Investment Corporation determines

the amount of distribution in accordance withthe amount of distribution in accordance with

Article 35-1 of its Articles of Incorporation,

Article 35-1 of its Articles of Incorporation,

which must exceed 90% of its distributable

which must exceed 90% of its distributable

income as stipulated in Article 67-15 of theincome as stipulated in Article 67-15 of theSpecial Taxation Measures Law. The

Special Taxation Measures Law. The

Investment

Investment

Method of calculating the distribution amountCorporationhas

therefore

Corporationhas

therefore

decided to distribute the maximum amountdecided to distribute the maximum amountof retained earnings at the period-end ofof retained earnings at the period-end of

period, namely totaling ¥3,123,600,000 toperiod, namely totaling ¥2,434,400,000 to

200,000 units issued and outstanding.

200,000 units issued and outstanding.

Procedures for the distribution of amounts

Procedures for the distribution of amounts

exceeding distributable income are outlined

exceeding distributable income are outlinedinin

Article

35-2

of

the

Investment

Article

35-2

of

the

Investment

Corporation’s Articles of Incorporation. In its

Corporation’s Articles of Incorporation. In its

fiscal period under review, the Investment

fiscal period under review, the Investment

Corporation has decided not to distribute

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

cash in excess of distributable income.

-23-

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

Eighth Fiscal Period

May 1, 2008 to

November 1, 2008 to

October 31, 2008

April 30, 2009

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

3,124,406

2,435,329

Depreciation and amortization

1,445,266

1,429,328

Amortization of long-term prepaid expenses

38,29290,327

Interest income△11,158△8,280Interest expenses

803,790

858,418

Amortization of deferred business commencement expenses

5,089

5,089

Amortization of investment unit issuance expenses

41,46841,468

Amortization of investment corporation bond issuance expenses

5,877

5,781

Decrease (increase) in accounts receivable-trade△28,274△73,289

Decrease (increase) in consumption taxes refund receivable△180,365

180,365

Decrease (increase) in prepaid expenses△17,755

21,185

Increase (decrease) in accounts payable△34,347△102,410

Increase (decrease) in accounts payable-other△32,132△12,573

Increase (decrease) in accrued consumption taxes△179,988

252,054

Increase (decrease) in advances received

65,520△64,576

Increase (decrease) in deposits received

1,907

62,233

Loss on retirement of noncurrent assets

7,852

-

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

5,100,280

3,108,889

Decrease (increase) in long-term prepaid expenses△133,409△401,369△1,907△2,317

10,020,414

7,825,654

Interest income received

11,1588,280Interest expenses paid

△751,791△872,143

Other, net
Subtotal

Income taxes paid

△769

△605

9,279,012

6,961,186

Purchase of property, plant and equipment△4,418,444△239,340

Purchase of property, plant and equipment in trust△11,161,392△684,277

Net cash provided by (used in)operating activities
Net cash provided by (used in) investment activities

Purchase of intangible assets in trust-△1,422

11,100244

Payments of tenant leasehold and security deposits△41,251△58,660

Proceeds from tenant leasehold and security deposits

285,381

80,142

Payments of tenant leasehold and security deposits in trust△639,474△719,185

Proceeds from tenant leasehold and security deposits in trust

862,124

361,048-△1,390,000

Payments of restricted bank deposits in trust△574,468△562

Proceeds from restricted bank deposits in trust

1,299,218

820,124△14,377,205△1,831,889

Proceeds from collection of lease and guarantee deposits

Payments of bank deposits in trust

Net cash provided by (used in) investment activities-24-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(Thousands of Yen)
Seventh Fiscal Period

Eighth Fiscal Period

May 1, 2008 to

November 1, 2008 to

October 31, 2008

April 30, 2009

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

5,500,000

12,000,000

Decrease in short-term loans payable△6,250,000△7,000,000

Proceeds from long-term loans payable

22,750,000

9,500,000

Repayment of long-term loans payable△13,000,000△14,500,000

Dividends paid

△3,340,016△3,121,450

5,659,983△3,121,450

Net increase (decrease) in cash and cash equivalents

561,790

2,007,845

Cash and cash equivalents at beginning of period

11,141,858

11,703,649

11,703,649

13,711,494

Net cash provided by (used in) financing activities

Cash and cash equivalents at end of period

※

-25-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(6) Notes【Going Concern】
Eighth Fiscal Period(November 1, 2008 to April 30, 2009)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)
None

Same applies as left.

【Important Accounting Standards】

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)
1. Depreciation of fixed assets

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)(1) Property, plant and equipment (includes trust assets)(1) Property, plant and equipment (includes trust assets)

The straight-line method is applied.

Same applies as left.

Useful lives of the assets ranging are as follows:
Buildings: 2 to 49 years
Structures: 2 to 45 years
Machinery and equipment: 3 to 17 years
Tools, furniture and fixtures: 3 to 20 years(2) Intangible assets (includes trust assets)
The straight-line method is applied.
Right of using water facilities: 6 years

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

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

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

Organization costs are amortized over a period of 5 years.

Same applies as left.

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

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

Same applies as left.

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

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

Accounting method for property tax

Accounting method for property tax

Property-related taxes including property taxes and city

Same applies as left.

planning taxes, etc. are imposed on properties on a calendar
year basis. These taxes are generally charged to rental
expenses for the period, for which the payment was madeduring the said period.
In connection with the acquisition of real estate including

In connection with the acquisition of real estate including

trust beneficiary interests in real estate during the fiscal

trust beneficiary interests in real estate during the fiscal

period under review, the Investment Corporation

period under review, the Investment Corporation

included its pro rata property portion for the year in each

included its pro rata property portion for the year in each

property acquisition price and not as rental expense. The

property acquisition price and not as rental expense.

amount of property taxes included in acquisition prices

There are no property taxes included in acquisition prices

for the fiscal period under review amounted to ¥10,840

for the fiscal period under review.

thousand.

-26-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)
4. Accounting for hedges

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

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

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

Hedge instruments

Hedge instruments

The Investment Corporation enters into interest-rate

Same applies as left.

swap transactions.

Risks hedged

Risks hedged

Same applies as left.

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

The Investment Corporation enters into derivative

Same applies as left.

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

During the period from the commencement of hedging

Same applies as left.

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

For the purpose of cash flow statements, cash and cash

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

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

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

real estate and other assets

real estate and other assetsof financial statements

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

expenses of financial assets held in the form of trust
beneficiary interests in real estate and other assets arerecorded in full in the Investment Corporation’s balance
sheets and statements of income.
Important line items included in accounting for financial
assets in the Investment Corporation’s balance sheet are
as follows:
1. Cash and deposits in trust

1. Same applies as left.

2. Buildings in trust, structures in trust, machinery and2. Same applies as left.

equipment in trust, tools, furniture and fixtures in trust,-27-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)and land in trust
3. Tenant leasehold and security deposits in trust

3. Right of using water facilities in trust
4. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax(2) Accounting method for consumption tax
Consumption

taxes

are

separately

recorded.

Non-deductible consumption taxes applicable to theacquisition of assets are included in the cost of acquisition
for each asset.

-28-

Same applies as left.

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

Eighth Fiscal Period(As of April 30, 2009)

Seventh Fiscal Period(As of October 31, 2008)*1. Minimum unitholders’ equity pursuant to Article
67-4 of the Law Concerning Investment Trusts*1. Minimum unitholders’ equity pursuant to Article¥50,000¥50,000

67-4 of the Law Concerning Investment Trusts

and Investment Corporations Law

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

The Investment Corporation established credit facilities with financial

The Investment Corporation established credit facilities with financial

institutions.

institutions. (Note)

Total credit facility

5,000,000

Total credit facility

5,000,000

Drawn credit facility

5,000,000

Drawn credit facility

5,000,000

Balance of Undrawn credit facility

Balance of Undrawn credit facility

－

－

Note:
The commitment period of the commitment line agreement (totalcommitment line amount ¥2,500,000 thousand) concluded with The Bank ofTokyo-Mitsubishi UFJ, Ltd. has already expired. Furthermore, the expiration
date of the commitment line agreement is March 31, 2011, set in thememorandum of understanding executed on September 26, 2008. However,since the commitment period has already expired, the Investment Corporation
may not undertake new borrowings.
The commitment period and the expiration date of the commitment line
agreement (total commitment line amount ¥2,500,000 thousand)concluded with Citibank Japan, Ltd has already expired. Furthermore, theagreement has not been renewed.
*3. Assets pledged as collateral and secured loans payable
Assets pledged as collateral
Cash and deposits

390,000

Cash and deposits in trust

4,431,045

Buildings

7,387,644

Structures

2,412

Machinery and equipment

14,201Tools, furniture and fixtures

6,939

Land

12,547,562

Buildings in trust

42,420,405

Structures in trust

103,259

Machinery and equipment in trust

534,194

Tools, furniture and fixtures in trust

131,686

Land in trust
Right of using water facilities in trust
Total

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

Secured loans payable
Short-term loans payable

10,000,000

Current portion of long-term loans payable

9,000,000

Long-term loans payable

67,750,000

Total

86,750,000-29-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(Thousands of Yen)

【Notes to the Statements of Income】

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)*1. Breakdown of real estate rental business profit and loss

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

A. Rental and other operating revenues

A. Rental and other operating revenues

Rental revenues

Rental revenues

Leasing income

5,847,509

Leasing income

5,985,835

Common area charges

1,263,582

Common area charges

1,246,786

Total

7,111,092

Total

7,232,621

OthersOthersParking space rental revenues

250,005

Parking space rental revenues

241,961

Utility charge reimbursement

668,718

Utility charge reimbursement559,130

Miscellaneous

126,699

Miscellaneous

170,408

Subtotal

1,045,424

Subtotal

971,500

Total rental and operating revenues

8,156,516

Total rental and operating revenues

8,204,121

B. Rental and other operating expenses

B. Rental and other operating expenses

Rental expenses

Rental expenses

Property management fees and facility management fees

792,076

Property management fees and facility management fees

799,004

Utilities

611,721

Utilities

578,388

Taxes

406,438Taxes

494,866

Repairs and maintenance costs

188,400

Repairs and maintenance costs

138,370

Insurance

17,035

Insurance

16,532Trust fees

46,904

Trust fees

45,274

Others163,023

Others101,440

Depreciation

1,445,266

Depreciation

1,429,328

Loss on retirement of fixed assets

7,852

Total property-related expenses

3,603,207

Total property-related expenses

3,678,719

C. Rental business profit (A – B)

4,600,914

C. Rental business profit (A – B)

4,477,796*2. Profit on sale of real estate*2. Loss on sale of real estate

Hakata Ekimae Dai-2 Building

KDX Koishikawa Building

Revenue from sale of the investment property

1,470,000

Revenue from sale of the investment property

670,000

Costs of the investment property

1,434,889

Costs of the investment property

678,062

Other sales’ expenses

28,101Other sales’ expenses

16,368

Profit on sale of real estate

7,008

Loss on sale of real estate

24,431

ZARA Tenjin Nishi-dori

KDX Hakata Building

Revenue from sale of the investment property

4,108,810

Revenue from sale of the investment property

2,000,000

Costs of the investment property

3,665,390

Costs of the investment property

2,430,829

Other sales’ expenses

150,711

Other sales’ expenses

37,202

Profit on sale of real estate

292,708

Loss on sale of real estate

468,031【Notes to the Statements of Changes in Unitholders’ Equity】

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

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

・Total number of authorized investment units

2,000,000 units

2,000,000 units

・Total number of investment units issued and outstanding

200,000 units

200,000 units

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

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

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)*Reconciliation of balance sheet items to cash and cash equivalents at end of*Reconciliation of balance sheet items to cash and cash equivalents at end of

period in the cash flows statements.
(As of October 31, 2008 )period in the cash flows statements.
(Thousands of Yen)

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

6,799,392

Cash and bank deposits

9,981,142

Cash and bank deposits
Cash and deposits in trust

Cash and deposits in trust

5,626,942

Restricted bank deposits held in trust (Note)△1,326,152

6,230,408

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

Cash and cash equivalents

11,703,649

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

Cash and cash equivalents

13,711,494

Note: Restricted bank deposits held in trust are retained for repayment of tenant

Note 1: Restricted bank deposits held in trust are retained for repayment ofleasehold and security deposits held in trust.

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

【Notes to the Lease Transactions】

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)
Operating lease transactions

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

(Lessor)Operating lease transactions(Thousands of Yen)

(Lessor)

Unearned lease payments

Unearned lease payments

Due within one year

1,493,056

Due within one year

1,314,069

Due after one year

8,487,580

Due after one year

7,930,499

Total

9,980,636

Total

9,244,568【Notes to the Marketable Securities】

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

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

The Investment Corporation has not undertaken transactions in marketable

Same applies as left.

securities. Accordingly, there is no information to report.

-31-

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

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

Eighth Fiscal Period(November 1, 2008 to April 30, 2009)(1) Details of the transaction(1) Details of the transaction

The Investment Corporation entering into interest-rate swap transactions uses

Same applies as left.

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

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

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

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

Same applies as left.

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

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

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

Same applies as left.

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

The Investment Corporation enters into derivative transactions based on its risk

Same applies as left.

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

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

Same applies as left.

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

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

Same applies as left.

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

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

Management Company.

-32-

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

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

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

The Investment Corporation does not maintain a retirement payment system.

Same applies as left.

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

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)
1.Principal deferred tax assets and liabilities

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

(Deferred tax assets)
Bad debts loss
Total deferred tax assets(Thousands of Yen)

(Deferred tax assets)
50

Unrealized loss from deferred hedge transactions

1.Principal deferred tax assets and liabilities
Enterprise tax payable not included in expenses

17

6,399

Bad debts loss

22

6,449

Unrealized loss from deferred hedge transactions
Total deferred tax assets

6,554
6,594

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

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

rate

(%)

tax rate(%)

Normal effective statutory tax rate

39.39

Normal effective statutory tax rate

39.33

(Adjustments)(Adjustments)

Deductible cash distributions△39.38Deductible cash distributions△39.31Others0.02

Others0.02

Actual effective tax rate

0.03

Actual effective tax rate

0.04

3. The amounts of deferred tax assets and liabilities have been revised as a resultof changes to the corporation tax rate, etc. in accordance with the Interim Law
Concerning Local Corporation Special Tax, etc. (Law No. 25 of 2008) thatwent into effect on April 30, 2008. The effective statutory tax rate used to
calculate deferred tax assets and liabilities has been changed from 39.39% to39.33%.
The amount affected by this change in the tax rate is immaterial.

【Equity-Method Income and Retained Earnings】

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

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

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

-33-

Same applies as left.

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Related-Party Transactions】
Seventh Fiscal Period (May 1, 2008 to October 31, 2008)
1．Parent Company, corporate shareholders and other:

None

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

NameBusiness Activities / Position

Voting Rights

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

TaisukeInvestment Corporation and CEO

Possession of Right

and Close Relatives

Miyajima

and President of Kenedix REIT

Direct 0.0％

Management, Inc.
As above

As above

As above

Accounts

to Kenedix REIT Management,(Note 2)

PayableInc. (Note 1)(Note 4)-otherfee to Kenedix REIT
Payment of property management

As above

As above

As aboveTerm

516,312

Management, Inc. (Note 3)
As above(¥Thousands)

Payment of asset management fee

Payment of business consignment
As above

Deal Amount Accounting

1,500(Note4)
338,918

fee to Kenedix REIT－

Accounts

Balance of
Period End(¥Thousands)
101,523(Note 4)－89,284

PayableManagement, Inc. (Note 5)
Notes:
1.

Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of the Investment Corporation.

2.

Asset management fee include ¥27,894 thousand sales fee related to the sale of property and ¥45,949 thousand management fee related to the acquisition of property that count in book3.

Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement,” Operating Agency Agreement” between the4.

Consumption taxes are not included in a deal amount, and are included in the balance of the end of period.

5.

Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement,” Property Management Agreement”

value for individual real estate.
Investment Corporation and Kenedix REIT Management, Inc.

between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥44,425 thousand related to the acquisition of property that count in bookvalue for individual real estate.

3．Subsidiary companies and other:

None

4．Fellow subsidiary companies and other: None
Eighth Fiscal Period (November 1, 2008 to April 30, 2009)
1．Parent Company, corporate shareholders and other:

None

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

NameBusiness Activities / Position

Voting Rights

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

TaisukeInvestment Corporation and CEO

Possession of Right

and Close Relatives

Miyajima

and President of Kenedix REIT

Direct 0.0％

Management, Inc.
As above

As above

As above

448,160

Accounts(Note 2)

PayableInc. (Note 1)(Note 4)-otherfee to Kenedix REIT
Payment of property management

As above

As above

As aboveTerm

to Kenedix REIT Management,

Management, Inc. (Note 3)
As above(¥Thousands)

Payment of asset management fee

Payment of business consignment
As above

Deal Amount Accounting

fee to Kenedix REIT

6,500
(Note4)
323,675－

Accounts

Balance of
Period End(¥Thousands)
82,622(Note 4)－75,069

PayableManagement, Inc. (Note 5)
Notes:
1.

Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of the Investment Corporation.

2.

Asset management fee include ¥13,350 thousand sales fee related to the sale of property.

3.

Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement,” Operating Agency Agreement” between theInvestment Corporation and Kenedix REIT Management, Inc.

-34-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
4.

Consumption taxes are not included in a deal amount, and are included in the balance of the end of period.

5.

Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement,” Property Management Agreement”
between the Investment Corporation and Kenedix REIT Management, Inc.

3．Subsidiary companies and other:

None

4．Fellow subsidiary companies and other: None

【Notes to the Information per Unit】

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

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

Unitholders’ Equity per Unit

¥640,437

Unitholders’ Equity per Unit

¥636,990

Net Income per Unit

¥ 15,618

Net Income per Unit

¥ 12,171

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

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

were no residual investment units.

there were no residual investment units.

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

3,123,613

2,434,359－－

Net income for ordinary units (¥ thousand)

3,123,613

2,434,359

Average number of units during the period (unit)

200,000

200,000

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

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

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)
None

Same applies as left.

-35-

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

Particulars

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

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

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

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

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

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

Notes:
1.

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

2.

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

3.

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

4.

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

5.

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

6.

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

7.

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

4. Transfer of the Directors
During the eighth fiscal period, there was no transfer for the Directors.
Moreover, the following directors were re-appointed at the Fourth General Meeting of Unitholders held on January 22, 2009. Their terms ofoffice are 2 years starting from February 1, 2009.
Executive Director
Supervisory Director
Supervisory Director

Taisuke Miyajima
Kimio Kodama
Shiro Toba

Also, in order to avoid the case of having fewer directors than that designated by relevant regulatory requirements, the following
non-statutory executive director was appointed.
Non-Statutory Executive Director

Teruo Nozaki-36-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Reference Information（1）Component of Assets
Seventh Fiscal Period(As of October 31, 2008)

Type of

Type

Specified Asset

Real Estate

Area

Office Buildings

Total Amount Held

Ratio

Total Amount Held

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

Tokyo Metropolitan Area

30,84512.9

30,897

12.9

Other Regional Areas

9,103

3.8

9,082

3.8

39,94916.7

39,979

16.7

Tokyo Metropolitan Area

138,290

57.7

137,456

57.6

Other Regional Areas

22,133

9.2

19,4988.2

160,423

66.9

156,955

65.7

Tokyo Metropolitan Area

10,844

4.5

10,750

4.5

Other Regional Areas

1,898

0.8

1,876

0.8

12,742

5.3

12,627

5.3

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

Eighth Fiscal Period(As of April 30, 2009)

12,6795.3

12,620

5.3

Total of Trust Beneficiary Interests in Real EstateTokyo Metropolitan Area

185,84677.5

182,202

76.3

Bank Deposits and Other Assets

13,852

5.8

16,562

6.9

Total Assets

239,648100.0

238,745

100.0

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

Seventh Fiscal Period(As of October 31, 2008)
Price (Millions of Yen)
Ratio (%)
Total of Liabilities
Total Unitholders’ Equity
Total of Assets

Eighth Fiscal Period(As of April 30, 2009)
Price (Millions of Yen)
Ratio (%)

111,56146.6

111,34646.6

128,08753.4

127,398

53.4

239,648100.0

238,745

100.0

-37-

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

Acquisition
Type

Area

No.

Property Name

Price
（Note 1）

Amount on

Direct Capitalization

the Balance

MethodSheet(Note 3)(Note 2)

Discounted Cash Flow Method

Overall
Value

Capitalization

Value

Discount
Rate (%)

Rate (%)

Buildings(Note 4)

Ratio(%)
（Note5）

Capitalization
Rate (%)

KDX Harumi Building

10,250

10,152

10,60010,7004.7

10,500

4.5

4.9

A

4.6

A-40

Toranomon Toyo Building

9,850

9,902

10,100

10,200

4.7

10,000

4.4

4.9

A

4.4

A-46

Hiei Kudan-Kita Building

7,600

7,636

8,030

8,200

4.8

7,950

4.6

5.0

B

3.4

A-37

KDX Ochanomizu Building

6,400

6,619

7,010

7,100

4.8

6,920

4.6

5.0

A

2.9

A-32

KDX Shiba-Daimon Building

6,090

6,339

5,830

6,070

5.4

5,770

5.2

5.5

C

2.7

A-13

KDX Kojimachi Building

5,950

5,807

5,190

5,330

5.0

5,150

4.8

5.1

C

2.7

A-1

KDX Nihonbashi 313 Building

5,940

6,254

7,410

7,560

4.9

7,350

4.7

5.1

B

2.7

A-16

Toshin-24 Building

5,300

5,223

5,030

5,080

5.6

4,970

5.4

5.8

A

2.4

A-2

KDX Hirakawacho Building

5,180

5,224

5,340

5,470

4.8

5,280

4.6

5.0

B

2.3

A-47

KDX Shin-Yokohama 381 Building

4,700

4,891

3,420

3,450

5.6

3,380

5.4

5.8

A

2.1

A-17

Ebisu East 438 Building

4,640

4,559

4,790

4,830

5.1

4,750

4.8

5.3

A

2.1

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,483

5,790

5,870

5.0

5,710

4.8

5.2

A

2.0

A-39

KDX Toranomon Building

4,400

4,864

4,050

4,100

4.6

3,990

4.4

4.8

A

2.0

A-30

KDX Nishi-Gotanda Building

4,200

4,220

4,290

4,290

5.4

4,290

5.2

5.5

C

1.9

A-48

KDX Kawasaki-Ekimae Hon-cho Building

3,760

3,929

3,300

3,300

6.1

3,300

5.7

6.3

A

1.7

A-60

OfficeTerminalAppraiser

A-4

KDX Hatchobori Building

3,680

3,496

3,810

3,870

5.0

3,790

4.8

5.2

B

1.6

A-18

KDX Omori Building

3,500

3,477

3,980

4,010

5.2

3,940

5.0

5.4

A

1.5

A-19

KDX Hamamatsucho Building

3,460

3,365

3,780

3,870

4.8

3,740

4.6

5.0

B

1.5

Tokyo

A-45

KDX Roppongi 228 Building

3,300

3,454

2,410

2,450

4.9

2,360

4.7

5.1

A

1.5

Metropolitan

A-29

KDX Higashi-Shinjuku Building

2,950

3,206

3,360

3,470

5.3

3,310

5.1

5.5

B

1.3

Area

A-20

KDX Kayabacho Building

2,780

2,890

3,030

3,010

5.4

3,030

5.2

5.5

C

1.2

A-56

KDX Jimbocho Building

2,760

2,967

2,510

2,530

5.3

2,480

5.1

5.6

A

1.2

A-49

Nissou Dai-17 Building

2,710

2,706

1,870

1,880

5.6

1,850

5.4

5.8

A

1.2

A-21

KDX Shinbashi Building

2,690

2,679

2,830

2,840

4.6

2,810

4.2

4.8

A

1.2

A-5

KDX Nakano Sakaue Building

2,533

2,522

2,530

2,530

5.4

2,530

5.2

5.6

B

1.1

A-22

KDX Shin-Yokohama Building

2,520

2,490

2,610

2,620

5.7

2,590

5.5

5.9

A

1.1

A-6

Harajuku F.F. Building

2,450

2,486

3,090

3,120

5.6

3,060

5.4

5.8

A

1.1

A-50

Ikejiri-Oohashi Building

2,400

2,499

1,850

1,870

6.0

1,830

5.8

6.2

A

1.0

A-27

KDX Kajicho Building

2,350

2,448

2,450

2,470

5.0

2,440

4.8

5.2

B

1.0

A-51

KDX Hamacho Nakanohashi Building

2,310

2,396

2,010

2,030

5.5

1,990

5.3

5.7

A

1.0

A-15

KDX Hamacho Building

2,300

2,313

2,660

2,760

5.5

2,640

5.3

5.6

C

1.0

A-41

KDX Shinjuku 286 Building

2,300

2,361

2,360

2,380

5.1

2,330

4.9

5.3

A

1.0

A-7

FIK Minami Aoyama

2,270

2,280

2,910

2,940

4.9

2,870

4.7

5.1

A

1.0

A-14

KDX Funabashi Building

2,252

2,469

2,140

2,220

6.2

2,120

6.0

6.4

C

1.0

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,268

2,130

2,210

4.7

2,100

4.5

4.9

Ｂ

1.0

A-55

Shin-toshin Maruzen Building

2,110

2,178

1,920

1,940

5.4

1,900

5.0

5.6

A

0.9

A-33

KDX Okachimachi Building

2,000

2,146

1,910

1,950

5.0

1,890

4.9

5.2

B

0.9

A-57

KDX Gobancho Building

1,951

2,026

1,630

1,640

5.2

1,620

4.9

5.3

A

0.8

A-8

Kanda Kihara Building

1,950

1,866

1,950

1,980

5.0

1,930

4.8

5.2

B

0.8

-38-

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

Area

No.

Property Name

Price
（Note 1）

Amount on

Direct Capitalization

the Balance

MethodSheet(Note 3)(Note 2)

Discounted Cash Flow Method

Overall
Value

Capitalization

Discount

Value

Rate (%)

Rate (%)

Tokyo
Metropolitan
Area

Appraiser(Note 4)

Terminal

Ratio(%)（Note5）

Capitalization
Rate (%)

A-2

KDX Yotsuya Building

1,950

1,963

2,370

2,390

5.4

2,350

5.2

5.6

A

0.8

A-59

KDX Iwamoto-cho Building

1,864

1,873

1,650

1,660

5.6

1,630

5.4

5.8

A

0.8

A-9

KDX Shinjuku-Gyoen Building

1,610

1,594

2,090

2,100

5.1

2,070

4.9

5.3

A

0.7

A-26

KDX Kiba Building

1,580

1,651

1,630

1,670

5.7

1,620

5.5

5.8

C

0.7

A-38

KDX Nishi-Shinjuku Building

1,500

1,557

1,450

1,480

5.3

1,440

5.1

5.4

C

0.6

A-31

KDX Monzen-Nakacho Building

1,400

1,453

1,310

1,320

5.4

1,300

5.2

5.6

B

0.6

A-52

KDX Kanda Misaki-cho Building

1,380

1,397

1,090

1,100

5.4

1,070

5.2

5.6

A

0.6

A-34

KDX Hon-Atsugi Building

1,305

1,287

1,100

1,090

6.2

1,110

6.0

6.4

B

0.5

A-35

KDX Hachioji Building

1,155

1,331

881

908

5.8

870

5.6

6.0

B

0.5

OfficeA-28

KDX Nogizaka Building

1,065

1,130

970

986

5.2

966

5.0

5.3

C

0.4

Buildings

A-12

Portus Center Building

5,570

5,046

5,250

5,310

6.3

5,230

6.1

6.5

B

2.5

A-42

Karasuma Building

5,400

5,526

5,680

5,780

5.5

5,630

5.3

5.7

B

2.4

A-53

KDX Hakata-Minami Building

4,900

4,917

4,490

4,520

6.3

4,460

6.1

6.5

A

2.2

4,000

4,165

3,530

-

-

-

-

-

B

1.8

Other
Regional

A-58(Note 6) (Note 7)

A-54

KDX Kitahama Building

2,220

2,239

1,810

1,810

5.8

1,810

5.4

6.0

A

1.0

A-44

KDX Sendai Building

2,100

2,221

1,640

1,600

6.0

1,660

5.8

6.2

B

0.9

A-24

KDX Minami Semba Dai-1 Building

1,610

1,535

1,310

1,420

5.6

1,280

5.4

5.8

C

0.7

A-25

KDX Minami Semba Dai-2 Building

1,560

1,448

1,290

1,420

5.6

1,260

5.4

5.8

C

0.7

A-36

KDX Niigata Building

1,305

1,480

844

854

7.2

833

7.0

7.4

A

0.5

Subtotal of Office Buildings (58 properties)

193,911

196,934

192,295

-

88.5

Areas

Tokyo
Metropolitan
Area

Residential

KDX Nagoya Sakae Building

Properties

191,558(Note 8)187,049-(Note 8)

-

-

B-19

Residence Charmante Tsukishima

5,353

5,246

4,720

4,780

5.5

4,700

5.3

5.7

C

2.4

B-3

Court Mejiro

1,250

1,225

1,040

1,040

5.5

1,030

5.3

5.7

A

0.5

B-4

Apartments Motoazabu

1,210

1,206

1,120

1,130

5.4

1,110

5.2

5.6

A

0.5

B-5

Apartments Wakamatsu Kawada

1,180

1,151

1,120

1,130

5.4

1,100

5.2

5.6

A

0.5

B-34

Gradito Kawaguchi

1,038

1,054

949

967

5.8

945

5.5

6.1

C

0.4

B-25

Court Shin-Okachimachi

878

864

819

833

5.3

813

5.1

5.5

B

0.4

B-18

Venus Hibarigaoka

1,800

1,876

1,510

1,520

6.7

1,510

6.3

6.9

C

0.8

12,70912,627

11,278

11,400

-

5.8

Other
Regional
Areas
Subtotal of Residential Properties(7 properties)

Properties

11,208--

C-1

Frame Jinnan-zaka

9,900

10,073

10,90010,9004.5

10,800

4.2

4.6

A

4.5

C-2

KDX Yoyogi Building

2,479

2,546

1,980

2,030

5.1

1,970

4.9

5.2

C

1.1

Subtotal of Central Urban Retail Properties (2 properties)

12,37912,62012,88012,930Total of 67 properties

218,999

222,182

216,453

Central Urban
Retail-Tokyo

Metropolitan Area

215,888(Note 8)-

12,770211,027(Note 8)

-

-

-

5.6

-

-

-

100.0

Notes:
1. Acquisition price is the purchase price for trust beneficiary interests or properties acquired by the Investment Corporation (excluding acquisition costs,-39-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

property tax, city-planning tax, and consumption tax, etc., rounded down to the nearest million yen.).
2. Figures of less than1 million are rounded down from the amounts on the balance sheet.
3. Appraisal values (end of the eighth fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation’s Articles ofIncorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports prepared by theJapan Real Estate Institute, Daiwa Real Estate Appraisal Corporation, and Nippon Tochi-Tatemono Limited.
4. The appraisers for the properties are Japan Real Estate Institute (A), Daiwa Real Estate Appraisal Corporation (B) and Nippon Tochi-Tatemono Limited (C).
5. Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest first decimal place.
6. Notes for KDX Nagoya Sakae Building are as follows.
“Acquisition Price”, “Amount on the Balance Sheet”, “Appraisal Value at the end of Eighth Fiscal Period”: The values concerning land are shown.
The value of “Direct Capitalization Method” and “Discounted Cash Flow Method” are shown as “-“ since the building had not yet been acquired as of April
30, 2009 when the valuation report was prepared.
7. The survey value of KDX Nagoya Sakae Building including the building was ¥6,010 million as of April 30, 2009. Details of the survey value are as follows.
Survey Value

Direct Capitalization Method
Value

6,010

Discounted Cash Flow Method

Overall Capitalization Rate (%)

6,160

Value

5.0%

Discount Rate (%)

Terminal Capitalization Rate (%)

4.8%

5.2%

5,950

The Investment Corporation plans to acquire the building portion, acquisition price of ¥3,550 million on July 1, 2009.
(For the land portion, the Investment Corporation has acquired on April 25, 2008 for ¥4,000 millions.)
8. The value calculated using the “Direct Capitalization Method” and the value calculated using the “Discount Cash Flow Method” for the KDX Nagoya Sakae
Building are not included in either the subtotal for the office buildings or the total for the entire property portfolio, 58 and 67, respectively. Accordingly, thesubtotal and total are for 57 office buildings and 66 properties, respectively.

② Property Distribution
Property TypesType

Number of Properties

Acquisition Price (Millions of Yen)

Ratio (Note) (%)

58
7
2

193,911
12,70912,379

88.5
5.8
5.6

Total

67

218,999

100.0

Geographic Distribution
Area

Number of Properties

Acquisition Price （Millions of Yen）

Ratio (Note) (%)

57
10

188,534
30,465

86.0
13.9

67

218,999

100.0

Number of Properties

Acquisition Price （Millions of Yen）

Ratio (Note) (%)

1
34
19
9
3
1

878
61,40567,93351,18327,350
10,250

0.4
28.0
31.0
23.3
12.4
4.6

Office Buildings
Residential Properties
Central Urban Retail Properties

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

Total
67
218,999100.0
Note: “Ratio” refers to the percentage of the acquisition price by each category to the acquisition prices of the entire portfolio.
Figures are rounded down to the nearest first decimal place.

-40-

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

OfficeBuildings

Area

Tokyo

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

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

Offices,A-60

KDX Harumi Building

2,230.69

A-40

Toranomon Toyo Building

869.01

A-46

Hiei Kudan-Kita Building

1,844.83

A-37

KDX Ochanomizu Building

1,515.28

A-32

KDX Shiba-Daimon Building

1,182.40

A-13

KDX Kojimachi Building

612.17A-1

KDX Nihonbashi 313 Building

1,047.72

A-16

Toshin-24 Building

1,287.16

A-2

KDX Hirakawacho Building

1,013.85

A-47

KDX Shin-Yokohama 381 Building

911.24A-17

Ebisu East 438 Building

724.22

A-3

Higashi-Kayabacho Yuraku Building

773.43

A-39

KDX Toranomon Building

288.20A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87

1,968.13

Offices

7,420.87

Offices

4,800.43

Retail Shops
Bank, Offices
Retail Shops, Storage
Retail Shops, Office Room
Parking, Storage, Offices
Offices, Storage, Retail Shops
Parking, Mechanical Room
Offices
Offices
Retail Shops
Offices
Offices, Retail Shops
Parking
Offices, Retail Shops
Residential Complex
Offices, Parking,Retail Shops
Offices
Retail Shops

Metropolitan
Area

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

Offices
Retail Shops
Offices

12,694.32

8,346.83

11,425.31

7,720.08

7,824.03

5,323.81

8,613.09

8,483.17

8,002.97

7,673.67

4,394.58

5,916.48

2,277.38

A-4

KDX Hatchobori Building

992.20A-18

KDX Omori Building

1,123.93

A-19

KDX Hamamatsucho Building

504.26A-45

KDX Roppongi 228 Building

408.86A-29

KDX Higashi-Shinjuku Building

1,340.97

A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13

Offices, Retail Shops
Parking
Offices, Retail Shops
Parking
Offices, Retail Shops
Offices, Storage
Parking-41-

7,334.77

3,592.38

2,235.30

7,885.40

S・SRC
B1F11
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

February 2008

5.60

August 1962

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

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

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

(%)

A-49

Nissou Dai-17 Building

629.00A-21

KDX Shinbashi Building

536.11

A-5

KDX Nakano Sakaue Building

1,235.16

Offices, Parking
Offices, Retail Shops
Parking

4,016.61

3,960.22

Offices, Retail Shop
Residential, Parking

6,399.42

Storage

OfficeBuildings

Tokyo

Offices, Retail Shops

A-22

KDX Shin-Yokohama Building

705.00

A-6

Harajuku F.F. Building

699.67

A-50

Ikejiri-Oohashi Building

834.79

Offices

3,482.96

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41

A-15

KDX Hamacho Building

554.80A-41

KDX Shinjuku 286 Building

421.70

A-7

FIK Minami Aoyama

369.47

A-14

KDX Funabashi Building

1,180.41

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90

A-55

Shin-toshin Maruzen Building

457.64

Offices, Retail Shops Parking

3,439.37

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11

A-8

Kanda Kihara Building

410.18

Offices

2,393.94

A-23

KDX Yotsuya Building

996.65A-59

KDX Iwamoto-cho Building

266.86

A-9

KDX Shinjuku-Gyoen Building

383.63

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64

A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63

A-31

KDX Monzen-Nakacho Building

580.99Parking
Retail Shops
Offices, Parking

Retail Shops, Offices
Parking
Offices, Parking
Offices, Retail Shops
Residential

Metropolitan
Area

Offices
Retail Shops

Offices, Retail Shops
Parking
Offices
Residential Complex
Offices, Retail Shops
Residential

Offices
Retail Shops-42-

6,180.51

3,812.44

4,133.47

3,432.04

1,926.98

5,970.12

3,329.68

1,618.65

2,594.88

2,668.91

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
S・SRC
B1F8
SRC
B1F8
S
F10
S
F8
SRC・RC・S
B1F8
RC
B2F4
S
F9
S・SRC
F9
RC
F5
RC
F5
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

April 1992

2.01

July 1990

4.87

June 1988

2.23

August 2000

9.06

May 1993

7.77

October 1989

9.79

March 2008

7.15

June 1992

6.05

October 1992

7.79

October 1992

9.02

September 1986

5.72

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

Tokyo

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

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

(%)

A-52

KDX Kanda Misaki-cho Building

314.54

OfficesA-34

KDX Hon-Atsugi Building

724.62A-35

KDX Hachioji Building

460.62A-28

KDX Nogizaka Building

409.36

A-12

Portus Center Building

13,936.63

A-42

Karasuma Building

1,788.67

Offices

12,632.68

A-53

KDX Hakata-Minami Building

1,826.25

Offices, Retail Shops, Parking

13,238.16

A-58

KDX Nagoya Sakae Building (Note 6)

1,192.22

A-54

KDX Kitahama Building

751.92

Offices, Storage, Parking

4,652.96

A-44

KDX Sendai Building

987.78

Offices

5,918.30

A-24

KDX Minami Semba Dai-1 Building

715.44

Offices, Parking

4,236.59

A-25

KDX Minami Semba Dai-2 Building

606.45

A-36

KDX Niigata Building

1,110.56

Offices
Retail Shops

Metropolitan
Area

Offices, Parking
Retail Shops
Offices, Retail Shops
Residential
Offices, Retail Shops,
Storage, Parking

1,536.60

3,603.63

2,821.21

1,695.07

79,827.08

OfficeBuildings

Offices, Retails Shops(Restaurant)

Other
Regional

10,848.45

Areas

Subtotal of Office Buildings (58 properties)

Residential
Properties

Residential
Properties

Tokyo

Urban
RetailProperties

Offices, Residential
Offices
Retail Shops

60,974.42

Residential Complex

3,315.93

6,810.29
372,272.27

B-19

Residence Charmante Tsukishima

4,252.86

B-3

Court Mejiro

1,581.91

Residential Complex

3,326.07

B-4

Apartments Motoazabu

639.41

Residential Complex

1,685.14

B-5

Apartments Wakamatsu Kawada

412.42

Residential Complex

1,858.51

B-34

Gradito Kawaguchi

423.94B-25

Court Shin-Okachimachi

311.22

Offices

18,115.39

Metropolitan
Area

Residential Complex
Retail Shops
Residential Complex

1,705.38

1,494.55

Other
Regional

B-18

Venus Hibarigaoka

8,595.00

Residential Complex

14,976.25

Areas

Tokyo

SRC
F8
SRC
F9
RC
B1F5
SRC・S
B2F25
SRC
B1F8
SRC
B1F9
S (portion RC)
F11
S
F10
SRC
B1F10
SRC・RC・S
B1F9
SRC・S
B1F9
RC
B2F13
SRC
B1F10
RC
B1F3
RC
F11
RC
F12
RC
F12
RC
F11

October 1992

9.41

May 1995

11.12

December 1985

13.00

May 1991

9.48

September 1993

3.48

October 1982

8.37

June 1973

1.48

April 2009

3.39

July 1994

9.79

February 1984

1.93

March 1993

9.04

September 1993

10.59

July 1983

4.39

Average of 20.5 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

②RC F5

March 1989

5.20

Average of 7.6 yrs-

March 2005

8.02

August 1991

8.17

③RC F6
16,216.76-

43,161.29

Retail Shops

6,302.58

C-1

Frame Jinnan-zaka

1,240.51

C-2

KDX Yoyogi Building

228.74

Metropolitan
Area

B1F7

①RC F6

Subtotal of Residential Properties (7 properties)
CentralParking, Retail Shops

SRC

Retail Shops
Offices-43-

1,269.06

S・RC・SRC
B2F7
SRC
F8

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

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

Subtotal of Central Urban Retail Properties (2 properties)

1,469.25-

7,571.64-

Average of 6.7 yrs

Total of 67 properties

78,660.43-

423,005.20-

Average of 19.0 yrs

5.39(Note 7)

Notes:
1. Site area data is based on figures recorded in the land register and includes relevant figures in the case of leasehold land. Data may not match with the actual
current status. Property that includes land leasehold encompass the site area applicable to leasehold portions. Compartmentalized building ownership includes
the site area relating to site rights and the total floor area for the entire building, structure and number of floors.
2. Usage is based on data recorded in the land register. All types of use are reported in the case of multi-purpose application.
3. Total floor space is based on figures recorded in the land register and does not include related structures. The total floor area for the entire buildings is reported
for compartmentalized ownership.
4. Type of structure data is based on data recorded in the land register. The following abbreviations are used to report data relating to structure and the number offloors:
SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level.
For example: B2F9: Two floors below ground level and nine floors above ground level.
5. Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data is calculated using theweighted-average based on acquisition prices as of April 30, 2009, and is rounded down to the nearest first decimal place. KDX Nagoya Sakae Building is notincluded in the weighted-average age.
6. Notes for the KDX Nagoya Sakae Building are as follows.
“Total Floor Area”, “Type of Structure”, “Completion Date”: The figure is entered based on what is written in the inspection certificate pursuant to theprovisions of Article 6-1 of the Building Standards Law, as the building has not been completed or registered. The current design content may be changed in
the future in accordance with the status of construction and other factors.
“PML Percentage”: The figure is based on the present design and specifications as of April 2008.
7. Probable Maximum Loss (PML) data is based on a survey provided by Sompo Japan Risk Management, Inc. as of April 2009. The Portfolio PML is the data
based on 66 properties (excluding KDX Nagoya Sakae Building.)-44-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

B. Capital Expenditure(a) Planned capital expenditures
Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the ninth fiscal period (May 1, 2009
to October 31, 2009) are as follows. Planned capital expenditure includes portions classified into expenses for accounting purposes.
Property Name

PurposeSchedule

Upgrade of air conditioning system,
other

October 2009

Roof waterproofing construction, other

As above(Location)
KDX Ochanomizu Building(Chiyoda-ku, Tokyo)
Venus Hibarigaoka(Sapporo, Hokkaido)

May 2009 to

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

120

-

-

58

-

-

(b) Capital Expenditures During the Fiscal Period Under Review
The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review, the Investment
Corporation completed work across its entire portfolio totaling ¥1,030 million. This total comprised of ¥891 million in capital expenditures and¥138 million for repairs, maintenance and renovation expenses.
Property Name

Purpose(Location)
KDX Shin-Yokohama 381 Building(Yokohama-shi, Kanagawa)
KDX Kawasaki-Ekimae Hon-cho Building(Kawasaki-shi, Kanagawa)

Upgrade of restrooms otherUpgrade of air conditioning system, other118

Upgrade of air conditioning system, other

As above

62

Upgrade of air conditioning system for 4F-9F,
other

As above

52

other

(Meguro-ku, Tokyo)

217

As above

Upgrade of air conditioning system and restrooms,

Ikejiri-Oohashi Building

April 2009

(Millions of Yen)

175

(Chiyoda-ku, Tokyo)(Chiyoda-ku, Tokyo)

November 2008 to

Amount of Capital Expenditures

As above

KDX Ochanomizu Building
KDX Kajicho Building

Schedule

Others264

Portfolio Total

891

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

-45-

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

Sixth Fiscal
PeriodSeventh Fiscal

Eighth Fiscal

PeriodPeriodPeriod

777

432

552

Fifth Fiscal

Fourth Fiscal
PeriodReserve for the end of the previous period

288

406

Reserve for the fiscal period under review

118

370

14

128

93

0

－

359

8

167

406

777

432

552

477

Reversal of reserve for the fiscal period under review
Reserve bring to the next period-46-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

C.

Type

OfficeBuildings

Details of the Tenants

Area

No.

(As of April 30, 2009)

Property Name

Total Leasable

Total Leased

Floor Area

Floor Area(㎡)(Note 1)(㎡)(Note 2)

Total No. of

Total No. of

Leasable

LeasedResidential units Residential units(Note 3)(Note 4)

Total Rental
No. ofOccupancy and Other Operating

Tenants

Ratio (%）

Revenues(Note 5)(Note 6)(¥thousands)(Note 7)

Leasehold andSecurity Deposits(¥thousands)(Note 8)A-60

KDX Harumi Building

9,294.00

9,294.00--

6 (Note9)100.0

355,161

574,468

A-40

Toranomon Toyo Building

6,339.73

6,339.73

-

-

13

100.0

321,557

526,206

A-46

Hiei Kudan-Kita Building

6,902.72

6,902.72

-

-

16

100.0

300,710436,271

A-37

KDX Ochanomizu Building

5,877.59

5,877.59

-

-

5

100.0

208,986

255,173

A-32

KDX Shiba-Daimon Building

6,030.01

6,030.01

-

-

8

100.0

222,476

287,068

A-13

KDX Kojimachi Building

3,809.74

3,373.98

-

-

10

88.6

172,291

321,881A-1

KDX Nihonbashi 313 Building

5,899.56

5,899.56

-

-

9

100.0

260,848356,566

A-16

Toshin-24 Building

6,610.22

6,610.22

-

-

13

100.0

217,299

263,695

A-2

KDX Hirakawacho Building

4,447.08

4,447.08

4

4

18

100.0

185,483

243,969

A-47

KDX Shin-Yokohama 381 Building

5,726.81

5,276.61

-

-

22

92.1

151,623

203,646

A-17

Ebisu East 438 Building

3,079.74

2,567.94

-

-

6

83.4

153,937

239,739

A-3

Higashi-Kayabacho Yuraku Building

4,413.17

4,413.17

-

-

7

100.0

186,330

246,519

A-39

KDX Toranomon Building

1,966.56

1,545.30

-

-

5

78.6

146,877

175,385

A-30

KDX Nishi-Gotanda Building

3,881.90

3,567.65

-

-

4

91.9

161,226

204,388

A-48

KDX Kawasaki-Ekimae Hon-cho Building

5,124.98

5,124.98

-

-

1

100.0

176,299

155,091

A-4

KDX Hatchobori Building

3,325.04

3,325.04

-

-

6

100.0

134,445

151,562

A-18

KDX Omori Building

4,949.46

4,679.67

-

-

10

94.5

168,450

234,164

A-19

KDX Hamamatsucho Building

2,727.75

2,391.39

-

-

7

87.7

125,212145,219A-45

KDX Roppongi 228 Building

1,914.60

1,247.53

-

-

6

65.2

63,92776,920A-29

KDX Higashi-Shinjuku Building

5,926.75

5,751.01

-

-

8

97.0

126,542

169,507

Tokyo

A-20

KDX Kayabacho Building

3,019.95

3,019.95

-

-

5

100.0

116,535

190,368

Metropolitan

A-56

KDX Jimbocho Building

2,320.69

2,320.69

-

-

4

100.0

69,708141,188

Area

A-49

Nissou Dai-17 Building

2,739.62

2,739.62

-

-

7

100.0

82,91586,608A-21

KDX Shinbashi Building

1,704.65

1,704.65

-

-

4

100.0

95,793

127,604

A-5

KDX Nakano Sakaue Building

4,389.61

4,050.55

18

17

25

92.3

107,512

100,037

A-22

KDX Shin-Yokohama Building

4,810.89

4,480.93

-

-

19

93.1

108,524

169,567

A-6

Harajuku F.F. Building

3,068.36

3,068.36

-

-

3

100.0

115,682

169,223

A-50

Ikejiri-Oohashi Building

2,449.11

2,023.99

-

-

6

82.6

79,047

101,819

A-27

KDX Kajicho Building

2,562.32

2,562.32

-

-

9

100.0

93,087

120,989

A-51

KDX Hamacho Nakanohashi Building

2,245.69

2,245.69

-

-

7

100.0

80,284

100,803

A-15

KDX Hamacho Building

3,102.43

3,102.43

-

-

8

100.0

105,112

137,651

A-41

KDX Shinjuku 286 Building

2,447.80

2,447.80

-

-

9

100.0

87,633

104,475

A-7

FIK Minami Aoyama

1,823.64

1,823.64

-

-

5

100.0

90,212

115,173

A-14

KDX Funabashi Building

3,884.65

3,884.65

-

-

19

100.0

109,037

132,673

A-61

KDX Hamamatsucho Dai-2 Building

1,953.50

1,953.50

-

-

8

100.0

69,674

105,524

A-55

Shin-toshin Maruzen Building

1,949.62

1,254.22

-

-

4

64.3

49,142

72,111A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

4

100.0

71,810114,836

A-57

KDX Gobancho Building

1,651.48

1,651.48

-

-

7

100.0

48,41857,731

A-8

Kanda Kihara Building

1,945.55

1,945.55

-

-

8

100.0

71,154137,482

A-23

KDX Yotsuya Building

2,536.53

2,536.53

-

-

3

100.0

98,213

147,548

A-59

KDX Iwamoto-cho Building

1,524.68

1,524.68

3

3

9

100.0

60,06065,774

A-9

KDX Shinjuku-Gyoen Building

2,105.18

2,105.18

-

-

1

100.0

74,669109,676

A-26

KDX Kiba Building

2,450.90

2,450.90

-

-

7

100.0

66,74480,358-47-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Type

Area

Tokyo
Metropolitan
Area

No.

Total Leased

Floor Area

Floor Area(㎡)(Note 1)(㎡)(Note 2)

Total No. of

Leasable

LeasedResidential units Residential units(Note 3)(Note 4)

Total Rental
No. ofOccupancy and Other Operating

Tenants

Ratio (%）

Revenues(Note 5)(Note 6)(¥thousands)

Leasehold andSecurity Deposits(¥thousands)(Note 7)(Note 8)A-38

KDX Nishi-Shinjuku Building

1,605.72

1,605.72

-

-

8

100.0

59,49869,412A-31

KDX Monzen-Nakacho Building

2,012.22

2,012.22

-

-

5

100.0

56,90259,492A-52

KDX Kanda Misaki-cho Building

1,339.46

1,339.46

-

-

8

100.0

40,294

48,985A-34

KDX Hon-Atsugi Building

2,747.77

2,747.77

-

-

10

100.0

61,06687,515A-35

KDX Hachioji Building

2,179.88

1,866.07

-

-

6

85.6

46,794

43,392A-28

KDX Nogizaka Building

1,236.39

1,084.55

1

0

4

87.7

40,41650,550A-12

Portus Center Building

11,569.19

10,804.15

-

-

28

93.4

317,134

399,340

A-42

Karasuma Building

8,551.97

7,949.62

-

-

30

93.0

211,019

268,101

A-53

KDX Hakata-Minami Building

10,179.27

9,756.26

-

-

44

95.8

212,909

254,072

Other

A-58

KDX Nagoya Sakae Building

-

-

-

-

-

-

49,998-

Regional

A-54

KDX Kitahama Building

3,993.57

3,993.57

-

-

9

100.0

84,44382,192

Areas

A-44

KDX Sendai Building

3,955.45

3,608.44

-

-

26

91.2

99,807

207,765

A-24

KDX Minami Semba Dai-1 Building

3,108.16

3,010.47

-

-

10

96.9

63,78287,054

A-25

KDX Minami Semba Dai-2 Building

2,699.27

2,379.07

-

-

22

88.1

56,467

41,776

A-36

KDX Niigata Building

4,085.26

2,989.66

-

-

24

73.2

66,742

67,778Subtotal of Office Buildings (58 properties)

215,990.38

206,502.06

26

24

595

95.6

7,257,942

9,724,101

7,711.14

7,711.14

140

140

1 (Note 10)

100.0

168,753

50,580

OfficeBuildings

B-19
Tokyo
Metropolitan
Residential

Property Name

Total Leasable

Total No. of

Area

Properties

Residence Charmante Tsukishima

B-3

Court Mejiro

2,046.79

1,967.66

20

19

19

96.1

43,302

17,522

B-4

Apartments Motoazabu

1,350.74

1,142.14

22

19

19

84.6

37,156

12,033

B-5

Apartments Wakamatsu Kawada

1,607.43

1,367.98

33

28

28

85.1

37,782

12,331

B-34

Gradito Kawaguchi

1,619.34

1,619.34

66

66

2 (Note 11)

100.0

32,916

10,028B-25

Court Shin-Okachimachi

1,377.87

1,329.90

41

40

40

96.5

29,009

9,446

B-18

Venus Hibarigaoka

12,829.64

12,692.64

159

157

117

98.9

91,072

28,91828,542.95

27,830.80

481

469

226

97.5

439,994

140,858

Other
Regional
Areas
Subtotal of Residential Properties (7 properties)
Central

Tokyo

C-1

Frame Jinnan-zaka

4,655.71

4,467.44

-

-

13

96.0

301,853

338,005

C-2

KDX Yoyogi Building

1,175.38

892.15

-

-

8

75.9

57,681

104,002

5,831.09

5,359.59

-

-

21

91.9

359,535

442,008

95.7

8,057,472

10,306,967

Urban Retail Metropolitan
Properties

Area

Subtotal of Central Urban Retail Properties (2 properties)
Total of 67 properties

250,364.42

239,692.45

507

493

842
(Note 12)

Occupancy Ratio over the Past Five Years
October 31, 2005

96.6%

April 30, 2006

94.9%

October 31, 2006

95.3%

April 30, 2007

95.9%

October 31, 2007

96.9%

April 30, 2008

95.9%

October 31, 2008

95.6%

April 30, 200995.7%

Notes:
1. Total leasable floor area refers to the leasable floor area for each Property including the building (aggregate total of the leasable floor area of each building in thecase of more than one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans.

-48-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

2. Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
3. The total number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential purposes.
4. The total number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end tenantsor sub-lease agreements are singed.
5. The total number of tenants refers to the actual number of end tenants for each property. However, for Residence Charmante Tsukishima, please refer to Note 10,
and for Gradito Kawaguchi, please refer to Note 11.
6. The occupancy ratio is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place.
7. Total rental and other operating revenues cover all income, including that from rental revenue, common charges, and parking space rental revenues, rounded to
the nearest one thousand yen. Total real estate business rental revenues refers to the total amount of revenues generated during the fiscal period under review
from real estate rental operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
8. Guarantee and security deposits refers to the balance of security deposits held (including net security deposits in the case of discount) and the balance ofguarantee deposits rounded down to the nearest thousand yen.
9. A pass-through type master lease contract based on partially fixed rent (from June 30, 2009) was concluded between the trustee of the property and Kenedix, Inc.
placing Kenedix, Inc. as the master lease company. However, with the lease-up of said property, the agreement has been terminated by consent as of February 27,
2009.
10. Because we have concluded a rental guarantee (fixed-term lease: until January 30, 2011) fixed-term building lease contract (term of contract: to January 30,2029) with Sekiwa Real Estate, Ltd., a master lessor, the total number of tenants is indicated 1.
11. Because the master lessor and Haseko Livenet Inc. have concluded a rental guarantee (fixed-term lease: until March 31, 2010) building lease contract fordwelling units (excluding first-floor shops), the total number of tenants is indicated as 2.
12. The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.
(Reference) Total rental and other revenues for the office building and central urban retail property sold during the Eighth Fiscal Period（Unit: Thousands of Yen）
Property No.

Property Name

Total Rental and Other Operating Revenues

A-10

KDX Koishikawa Building

39,241A-43

KDX Hakata Building

107,407

Total

146,649

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

Name of End Tenant

Property Name

Sekiwa Real Estate, Ltd.
NTT Data Corporation
N / A (Note 2)
Five Foxes Co., Ltd.
The Bank of Tokyo-Mitsubishi
5
UFJ, Ltd.
Subtotal

Residence Charamante Tsukishima
KDX Harumi Building, KDX Higashi-Shinjuku Building
KDX Kawasaki-Ekimae Hon-cho Building
Harajuku F.F. Building
Toranomon Toyo Building, Harajuku F.F. Building,
KDX Yoyogi Building

1
2
3
4

Portfolio Total

Leased Floor
Area(As of April 30, 2009)
Percentage of Total Leased
Floor Area (Note 1)

7,711.14 ㎡
5,185.96 ㎡
5,124.98 ㎡
2,855.05 ㎡

3.2％
2.2%
2.1％
1.2％

2,768.80 ㎡

1.2%

23,645.93 ㎡

9.9%

239,692.45 ㎡

100.0％

Notes:
1.

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

2.

Not disclosed due to the tenants’ request.

-49-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Change in Management Guideline
Reference Material for “2. Management Policy and Operating Condition” “(1) Management Policy”◆ Reasons for Changes
In the face of the extremely severe debt environment, the Investment Corporation as of February 26, 2009 changed the
management guidelines in its company regulations to clarify that it may provide assets as collateral to lenders so as to smoothly
procure funds.
◆ Details of the Changes
Details of the changes are as follows. The change is indicated by the underlined portion.
Before the Change in Management Guideline
Article 33 (Capital Acquisition: Debt)
1. Capital debt is conducted based on the following guidelines.
(1) ~ (5) (Details Omitted)(6) As a rule, debt shall be limited to unsecured debt, but insome cases, managed assets may be offered as collateral.
Below is omitted.

-50-

After the Change in Management Guideline
Article 33 (Capital Acquisition：Debt)
1. Capital debt is conducted based on the following guidelines.
(1) ~ (5) (Details Omitted)(6) In principle, borrowings are unsecured and unguaranteed,but there may cases when the Investment Corporation
provides its portfolio properties as collateral in order tosmoothly procure funds.
Below is omitted.

a0601

a0401

a0461

a0371

a0321

a0131

a0011

a0161

a0021

a0471

【Reference】

Earnings Performance for the Individual Properties for the 8th Fiscal Period (November 1, 2008 to April 30, 2009)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property Name

KDX Harumi
Building

Toranomon Toyo
Building

Hiei Kudan-Kita
Building

KDX Ochanomizu
Building

KDX ShibaDaimon Building

Acquisition Date

June 30, 2008

June 1, 2007

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

Price Information

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

KDX Nihonbashi
313 Building

a0171

a0031

a0391

a0301

※As of April 30, 2009

KDX ShinYokohama 381
Building

Toshin 24 Building

KDX Hirakawacho
Building

May 1, 2006

August 1, 2005 February 1, 2008

Ebisu East 438
Building

Higashi-Kayabacho KDX Toranomon
Yuraku Building
Building

KDX NishiGotanda Building

May 1, 2006

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

Lease Information

9,850
4.5%
9,902
10,1004.7%
136,339.73
6,339.73

February 1, 2008
7,600
3.5%
7,636
8,030
3.7%
16
6,902.72
6,902.72

April 2, 2007

10,250
4.7%
10,152
10,6004.9%
69,294.00
9,294.00

6,400
2.9%
6,619
7,010
3.2%
5
5,877.59
5,877.59

6,090
2.8%
6,339
5,830
2.7%
8
6,030.01
6,030.01

5,950
2.7%
5,807
5,190
2.4%
10
3,809.74
3,373.98

5,940
2.7%
6,254
7,410
3.4%
9
5,899.56
5,899.56

5,300
2.4%
5,223
5,030
2.3%
13
6,610.22
6,610.22

5,180
2.4%
5,224
5,340
2.5%
18
4,447.08
4,447.08

4,700
2.1%
4,891
3,420
1.6%
22
5,726.81
5,276.61

4,640
2.1%
4,559
4,790
2.2%
6
3,079.74
2,567.94

4,450
2.0%
4,483
5,790
2.7%
7
4,413.17
4,413.17

4,400
2.0%
4,864
4,050
1.9%
5
1,966.56
1,545.30

4,200
1.9%
4,220
4,290
2.0%
4
3,881.90
3,567.65

100.0%
100.0%-

100.0%
100.0%
99.1%
97.5%
-

100.0%
100.0%
100.0%-

100.0%
90.2%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
93.0%
-

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

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

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

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

92.1%
97.5%
94.6%
-

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

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

78.6%
78.6%
100.0%
100.0%-

91.9%
100.0%
100.0%
100.0%
73.7%-

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

Income and Retained Earnings Information for the 8th Fiscal Period

Operating periods

181days181days181days181days181days181days181days181days181days181days181days181days181days181days①Rental and other operating revenues (\ Thousands)

355,161

321,557

300,710

208,986

222,476

172,291

260,848

217,299

185,483

151,623

153,937

186,330

146,877

161,226

Rental revenues

309,840

305,313272,673

196,898

202,779

154,988

246,055

187,828

166,481

121,313140,245

170,124

100,323

140,266

Other operating revenues

45,320

16,24328,036

12,087

19,696

17,302

14,79329,47019,00230,31013,692

16,20646,55420,96080,457

71,124

66,21047,882

52,93743,91056,47960,41650,83035,61533,71735,425

27,79735,49939,757

21,841

32,586

14,357

17,958

11,736

18,91821,916

17,35911,912

11,80914,938

8,231

12,637

6

27,943-

14,667

11,282

15,913

17,246

18,664

14,740

5,042

10,154

9,161

9,581

8,944

37,36917,40921,661

12,292

15,768

10,091

14,994

16,921

11,845

12,331

9,680

9,870

4,140

8,960

Repairs and maintenance costs

168

1,083

5,026

2,235

3,083

256

823

712

4,487

3,882

824

51

4,330

4,512

Insurance

550

402

510

337

309

258

368

386

332

335

199

249

109

232

Trust fees and other expenses

2,605

2,445

6,425

3,992

4,533

5,653

4,129

1,815

2,066

2,111

1,050

1,153

1,404

212

③ＮＯＩ （＝①-②） (\ Thousands)

274,703

250,433

234,499

161,103

169,539

128,381204,369

156,883

134,652

116,008

120,220

150,905

119,080

125,726④Depreciation (\ Thousands)

76,891

11,67014,32021,70928,46340,126

28,77732,81525,94230,99427,357

27,38913,10549,615⑤Rental operating income（＝③-④） (\ Thousands)

197,812238,762

220,178

139,394

141,075

88,254

175,592

124,068

108,71085,014

92,862

123,516

105,974

76,111

-

1,025

-

118,837

17,130

2,991

1,880

1,193

14,424

217,628490

13,216-

17,031⑦ＮＣＦ （＝③-⑥） (\ Thousands)

274,703249,408

234,499

42,265

152,409125,390

202,489

155,689

120,228△101,619

119,730

137,689

119,080

108,695

Expense ratio （＝②／①）

22.7%
35,64912,854
3.62%

22.1%
55,862
11,6733.63%

22.0%
51,671
10,922
3.63%

22.9%
29,101
7,552
3.61%

23.8%
22,475
8,000
3.60%

25.5%
31,721
6,136
3.56%

21.7%
34,439
9,494
3.64%

27.8%
23,378
7,636
3.51%

27.4%
29,392
6,533
3.52%

23.5%
20,083
5,461
3.60%

21.9%
20,278
5,595
3.63%

19.0%
18,277
6,882
3.69%

18.9%
19,084
5,427
3.70%

22.0%
17,7105,856
3.63%

110,320
9,193

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

117,280
9,773

292,110
24,342

176,760
14,730203,540
16,961

192,390
16,032

144,400
12,033

157,780
13,14870,4005,866

136,230
11,352

●

●

●

●

●

-

●

●

-

-

-

●

②Property-related expenses (\ Thousands)
Property management fees
Taxes
Utilities⑥Capital expenditures (\ Thousands)

Property tax for the year 2009 (or the year 2008) \( Thousands)

Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 12 yrs after the acquisition (\ Thousands)

Reference：Amount of yearly avg.
Assets pledged as collateral

●

●

-51-

a0481

a0041

a0181

a0191

a0451

a0291

a0201

a0561

a0491

a0211

【Reference】

Earnings Performance for the Individual Properties for the 8th Fiscal Period (November 1, 2008 to April 30, 2009)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property NameKDX KawasakiEkimae Hon-cho
Building

Acquisition Date
Price Information

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

KDX Omori
Building

KDX
Hamamatsucho
Building

February 1, 2008 August 1, 2005
3,760
3,680
1.7%
1.7%
3,929
3,496
3,300
3,810
1.5%
1.8%
1
6
5,124.98
3,325.04
5,124.98
3,325.04

May 1, 2006

May 1, 2006

KDX Roppongi 228 KDX HigashiBuilding
Shinjuku Building

KDX Kayabacho
Building

January 10, 2008 September 1, 2006
3,300
2,950
1.5%
1.3%
3,454
3,206
2,410
3,360
1.1%
1.6%
6
8
1,914.60
5,926.75
1,247.53
5,751.01

May 1, 2006

Lease Information

3,500
1.6%
3,477
3,980
1.8%
10
4,949.46
4,679.67

3,460
1.6%
3,365
3,780
1.7%
7
2,727.75
2,391.39

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

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

65.2%
78.0%
80.4%
-

KDX Jimbocho
Building

a0051

a0221

a0061

a0501

※As of April 30, 2009

Nissou Dai-17
Building

March 31, 2008 February 1, 2008

KDX Shinbashi
Building

KDX NakanoKDX ShinSakaue Building Yokohama Building

May 1, 2006

August 1, 2005

May 1, 2006

Harajuku F.F.
Building

Ikejiri-Oohashi
Building

August 1, 2005 February 1, 2008

2,780
1.3%
2,890
3,030
1.4%
5
3,019.95
3,019.95

2,760
1.3%
2,967
2,510
1.2%
4
2,320.69
2,320.69

2,710
1.2%
2,706
1,870
0.9%
7
2,739.62
2,739.62

2,690
1.2%
2,679
2,830
1.3%
4
1,704.65
1,704.65

2,533
1.2%
2,522
2,530
1.2%
25
4,389.61
4,050.55

2,520
1.2%
2,490
2,610
1.2%
19
4,810.89
4,480.93

2,450
1.1%
2,486
3,090
1.4%
3
3,068.36
3,068.36

2,400
1.1%
2,499
1,850
0.9%
6
2,449.11
2,023.99

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

100.0%
59.8%
0.0%
-

100.0%
100.0%
100.0%-

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

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

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

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

82.6%
100.0%
91.3%
181daysOccupancy ratio

100.0%
100.0%
100.0%-

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

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

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

Income and Retained Earnings Information for the 8th Fiscal Period

Operating periods

181days181days181days181days181days181days181days181days181days181days181days181days181days①Rental and other operating revenues (\ Thousands)

176,299

134,445

168,450

125,21263,927

126,542

116,535

69,70882,915

95,793

107,512

108,524

115,682

79,047

134,066

117,915

147,240

101,50957,679111,214

102,452

65,35373,18689,58093,30796,887104,287

67,300Rental revenues

42,233

16,53021,21023,703

6,247

15,32814,083

4,354

9,729

6,213

14,204

11,636

11,395

11,746

62,062

34,43750,347

26,854

15,37447,211

27,83020,53722,242

24,44828,42537,07329,507

13,581

Property management fees

27,927

13,024

17,813

8,812

5,850

13,736

9,278

5,371

8,792

7,293

10,716

13,572

10,212

6,870

Taxes

3,826

9,013

12,174

8,602-

13,690

6,850

-

2,786

10,038

7,896

11,545

7,539-

Utilities

29,651

10,42017,143

6,147

5,694

13,857

6,895

3,875

7,473

4,770

6,899

8,595

8,218

5,351
169

Other operating revenues②Property-related expenses (\ Thousands)

-

916

574

395

3,325

705

1,661

1,482

487

365

800

536

1,202

Insurance

276

219

326

152

101

334

163

114

175

126

288

243

165

152

Trust fees and other expenses

380

841

2,314

2,744

402

4,886

2,980

9,693

2,526

1,853

1,824

2,579

2,168

1,037

③ＮＯＩ （＝①-②） (\ Thousands)

114,236

100,008

118,102

98,35848,552

79,331

88,704

49,17060,673

71,34579,08671,45086,17465,465④Depreciation (\ Thousands)

26,38637,14725,91922,001

4,759

17,897

15,642

14,504

15,905

10,30932,91021,326

12,25910,064

Repairs and maintenance costs⑤Rental operating income（＝③-④） (\ Thousands)

87,85062,861

92,18376,357

43,792

61,43373,062

34,66644,76861,035

46,17650,12473,91555,401⑥Capital expenditures (\ Thousands)

175,755

5,637

4,337

1,160

250

28,325

3,139

-

1,661

-

1,586

2,433

500

52,179⑦ＮＣＦ （＝③-⑥） (\ Thousands)△61,518

94,371

113,764

97,19848,30251,00585,56549,17059,011

71,34577,49969,01685,674

13,28635.2%
15,299
5,929
3.36%

25.6%
17,975
4,784
3.56%

29.9%
24,310
5,848
3.47%

21.4%
17,089
4,562
3.64%

24.1%
13,436
2,295
3.59%

37.3%
27,378
4,201
3.32%

23.9%
13,647
4,188
3.59%

29.5%
9,368
2,426
3.48%

26.8%
10,951
2,930
3.53%

25.5%
20,035
3,410
3.56%

26.4%
15,445
3,808
3.54%

34.2%
13,878
3,672
3.38%

25.5%
15,029
4,119
3.56%

17.2%
11,711
2,949
3.73%

446,967
37,24788,4907,374

276,530
23,044

68,1805,681

54,6804,556

200,740
16,728114,840
9,570

112,870
9,405

88,4807,373

102,789
8,565

128,140
10,678194,390
16,199123,270
10,272

158,270
13,189

●

●

●

-

●

●

●

●

Expense ratio （＝②／①）
Property tax for the year 2009 (or the year 2008) \( Thousands)

Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 12 yrs after the acquisition (\ Thousands)

Reference：Amount of yearly avg.

●

Assets pledged as collateral

-

●

●

-

●

-52-

a0271

a0511

a0151

a0411

a0071

a0141

a0611

a0551

a0331

a0571

【Reference】

Earnings Performance for the Individual Properties for the 8th Fiscal Period (November 1, 2008 to April 30, 2009)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property NameKDX Kajicho
Building

Acquisition Date

July 3, 2006

Price Information

2,350
1.1%
2,448
2,450
1.1%
9
2,562.32
2,562.32

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

KDX Hamacho
Building

February 1, 2008 March 16, 2006
2,310
2,300
1.1%
1.1%
2,396
2,313
2,010
2,660
0.9%
1.2%
7
8
2,245.69
3,102.43
2,245.69
3,102.43

KDX Shinjuku 286
Building

June 1, 2007

FIK Minami
AoyamaKDX Funabashi
Building

August 1, 2005 March 1, 2006

a0081

a0231

a0591

a0091

※As of April 30, 2009

KDX
Shin-toshin
KDX Okachimachi KDX Gobancho
Hamamatsucho
Maruzen Building
Building
Building
Dai-2 Building
September 1, 2008 February 29, 2008 March 1, 2007 March 31, 2008

Kanda Kihara
Building

KDX Yotsuya
Building

KDX Iwamoto-cho
Building

KDX ShinjukuGyoen Building

August 1, 2005

May 1, 2006

May 1, 2008

August 1, 2005

Lease Information

2,300
1.1%
2,361
2,360
1.1%
9
2,447.80
2,447.80

2,270
1.0%
2,280
2,910
1.3%
5
1,823.64
1,823.64

2,252
1.0%
2,469
2,140
1.0%
19
3,884.65
3,884.65

2,200
1.0%
2,268
2,130
1.0%
8
1,953.50
1,953.50

2,110
1.0%
2,178
1,920
0.9%
4
1,949.62
1,254.22

2,000
0.9%
2,146
1,910
0.9%
4
1,792.54
1,792.54

1,951
0.9%
2,026
1,630
0.8%
7
1,651.48
1,651.48

1,950
0.9%
1,866
1,950
0.9%
8
1,945.55
1,945.55

1,950
0.9%
1,963
2,370
1.1%
3
2,536.53
2,536.53

1,864
0.9%
1,873
1,650
0.8%
9
1,524.68
1,524.68

1,610
0.7%
1,594
2,090
1.0%
1
2,105.18
2,105.18

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

100.0%
100.0%
100.0%
100.0%-

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

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

100.0%
100.0%
-

64.3%
80.9%
100.0%-

100.0%
100.0%
89.7%
100.0%
100.0%-

100.0%
85.7%
100.0%-

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

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

100.0%
92.7%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181daysOccupancy ratio

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

100.0%
100.0%
100.0%-

Operating periods

181days181days181days181days181days181days181days181days181days181days181days181days181days①Rental and other operating revenues (\ Thousands)

93,08780,284105,11287,63390,212109,037

69,674

49,142

71,81048,41871,154

98,21360,06074,66985,96069,32895,63872,87083,65094,671

65,53140,75863,463

43,97665,90889,08856,86568,736

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

Income and Retained Earnings Information for the 8th Fiscal Period

Rental revenues

7,126

10,956

9,473

14,7626,561

14,365

4,143

8,384

8,347

4,442

5,245

9,125

3,194

5,932

19,76914,693

26,74030,956

18,91637,087

11,63011,02014,892

9,236

17,515

23,1098,079

18,539Property management fees

7,642

7,823

9,739

7,276

6,474

13,857

5,361

5,921

6,006

4,808

6,351

9,857

4,350

5,433

Taxes

5,511

0

7,116

8,430

5,141

11,523

0

-

3,150

-

4,273

6,168

0

5,784

Utilities

5,068

5,077

6,837

7,160

4,819

9,886

5,053

3,766

4,228

2,803

5,470

5,819

2,399

4,242

Repairs and maintenance costs

489

442

1,656

6,132

1,002

1,112

930

341

-

398

255

350

-

504

Insurance

136

154

192

159

94

239

104

109

81

82

98

142

72

109

Trust fees and other expenses

922

1,195

1,199

1,796

1,384

467

180

882

1,426

1,143

1,065

771

1,256

2,465
56,130

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

73,31765,591

78,371

56,676

71,29571,94958,044

38,122

56,91739,182

53,63875,104

51,980④Depreciation (\ Thousands)

11,297

11,24238,330

7,192

7,310

18,672

3,789

7,248

7,497

9,868

15,9008,962

13,051

13,748⑤Rental operating income（＝③-④） (\ Thousands)

62,01954,34840,04049,48363,98553,27754,25530,87449,41929,31337,73866,142

38,92842,382⑥Capital expenditures (\ Thousands)

62,795

37,132960

22,337

1,972

400

3,622

680

5,145

-

-

700

-

-

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

10,52228,45877,41134,33969,32371,54954,42237,441

51,772

39,182

53,63874,404

51,98056,130

Expense ratio （＝②／①）

21.2%
10,987
3,396
3.65%

18.3%
10,527
2,977
3.71%

25.4%
13,831
3,744
3.56%

35.3%
16,761
2,945
3.36%

21.0%
10,237
3,296
3.65%

34.0%
15,102
3,693
3.39%

16.7%
15,350
2,606
3.74%

22.4%
11,820
1,780
3.62%

20.7%
6,241
2,627
3.66%

19.1%
7,942
1,787
3.69%

24.6%
8,509
2,546
3.58%

23.5%
12,315
3,537
3.60%

13.5%
5,724
2,286
3.81%

24.8%
11,532
2,669
3.57%

96,4508,037

130,030
10,835

133,950
11,162

169,080
14,09066,7705,564

173,340
14,44581,7106,809

98,7108,225

64,4005,366

55,2304,602

58,8704,905

106,330
8,860

19,6801,640

110,680
9,223

●

●

●

Property tax for the year 2009 (or the year 2008) \( Thousands)

Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 12 yrs after the acquisition (\ Thousands)

Reference：Amount of yearly avg.

●

Assets pledged as collateral

-

●

-

●

-

-

●

-

-

-

-53-

a0261

a0381

a0311

a0521

a0341

a0351

a0281

a0121

a0421

a0531

【Reference】

Earnings Performance for the Individual Properties for the 8th Fiscal Period (November 1, 2008 to April 30, 2009)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property NameKDX NishiKDX MonzenKDX Kiba Building
Shinjuku Building Nakacho Building

Acquisition Date

June 20, 2006

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX Nogizaka
Building

Portus Center
Building

Karasuma Building

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

June 1, 2007

Price Information

July 14, 2006

September 21, 2005

1,500
0.7%
1,557
1,450
0.7%
8
1,605.72
1,605.72

1,400
0.6%
1,453
1,310
0.6%
5
2,012.22
2,012.22

1,380
0.6%
1,397
1,090
0.5%
8
1,339.46
1,339.46

1,305
0.6%
1,287
1,100
0.5%
10
2,747.77
2,747.77

1,155
0.5%
1,331
881
0.4%
6
2,179.88
1,866.07

1,065
0.5%
1,130
970
0.4%
4
1,236.39
1,084.55

5,570
2.5%
5,046
5,250
2.4%
28
11,569.19
10,804.15

5,400
2.5%
5,526
5,680
2.6%
30
8,551.97
7,949.62

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

100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
84.4%
100.0%-

100.0%
100.0%
86.9%-

100.0%
88.6%
100.0%
100.0%
100.0%
-

85.6%
85.6%
85.6%
85.6%
96.4%
-

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

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

93.0%
98.1%
98.6%
100.0%-

Operating periods

181days181days181days181days181days181days181days181days①Rental and other operating revenues (\ Thousands)

66,74459,49856,90240,29461,066

46,79440,416317,134

60,24249,352

47,91237,454

53,10839,31335,770261,078

184,659

Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Total of end tenants
Leasable floor area (㎡)Leased floor area（㎡)a0541

Other Regional Areas
KDX Kanda
Misaki-cho
Building

1,580
0.7%
1,651
1,630
0.8%
7
2,450.90
2,450.90

Acquisition price (\ Millions)a0581※As of April 30, 2009

KDX HakataMinami Building

KDX Nagoya
Sakae Building

KDX Kitahama
Building

February 1, 2008 April 25, 2008 February 1, 2008
4,900
4,000
2,220
2.2%
1.8%
1.0%
4,917
4,165
2,239
4,490
3,530
1,810
2.1%
1.6%
0.8%
44
9
10,179.27
3,993.57
9,756.26
3,993.57

Lease Information

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

Income and Retained Earnings Information for the 8th Fiscal Period

Rental revenues

95.8%
95.4%
95.4%
-

-

100.0%
88.1%
88.1%
-

181days181days181days181days

211,019

212,909

49,99884,443

185,151

49,99870,2906,501

10,145

8,989

2,839

7,957

7,481

4,646

56,05526,36027,757-

14,152

20,997

15,065

15,893

6,976

20,477

19,06911,350132,10375,16943,2703,425

28,431

Property management fees

6,068

5,204

5,425

4,164

6,948

9,121

4,167

76,877

21,30618,153

-

8,058

Taxes

4,938

4,408

3,154

0

4,018

4,109

3,160

26,14429,556

-

3,419

2,618

Utilities

4,531

4,026

5,730

2,555

5,103

4,505

3,602

20,974

16,36821,826-

9,196

Repairs and maintenance costs

4,413

521

445

86

1,814

422

272

4,167

2,986

1,487

-

1,958

Other operating revenues②Property-related expenses (\ Thousands)

Insurance

122

92

118

71

165

110

71

2,475

479

527

5

201

Trust fees and other expenses

923

812

1,019

98

2,427

799

76

1,464

4,471

1,276

-

6,397

③ＮＯＩ （＝①-②） (\ Thousands)

45,74644,43341,00833,31740,58827,72429,066

185,030

135,850

169,638

46,57256,012④Depreciation (\ Thousands)

22,117

8,881

9,359

4,359

23,953

9,994

6,049

104,51028,64532,138-19,515⑤Rental operating income（＝③-④） (\ Thousands)

23,62935,551

31,64928,958

16,635

17,73023,01680,520107,205

137,499

46,57236,497⑥Capital expenditures (\ Thousands)

1,365

1,949

310

1,155

1,522

-

1,901

3,149

13,677

-

-

2,175

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

44,381

42,48340,69832,16239,066

27,724

27,165

181,881

122,173

169,638

46,572

53,837

Expense ratio （＝②／①）

31.5%
9,707
2,295
3.44%

25.3%
8,779
2,121
3.56%

27.9%
6,312
1,998
3.51%

17.3%
5,390
1,502
3.73%

33.5%
7,653
2,074
3.40%

40.8%
8,220
1,520
3.25%

28.1%
6,320
1,418
3.51%

41.7%
67,666
10,2483.23%

35.6%
38,842
7,078
3.35%

20.3%
18,922
7,807
3.67%

6.9%
31,110-33.7%
10,2232,866
3.39%

85,8507,154

69,9505,829

61,4705,122

46,1403,845

141,590
11,799109,860
9,155

50,8704,239

343,420
28,618229,180
19,098140,450
11,704-

167,760
13,980

●

-

●

●

●

Property tax for the year 2009 (or the year 2008) \( Thousands)

Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 12 yrs after the acquisition (\ Thousands)

Reference：Amount of yearly avg.

●

Assets pledged as collateral

-

●

-

-

-

-

-54-

a0441

a0241

a0251

a0361

b0191

b0031

b0041

b0051

b0341

b0251

【Reference】

Earnings Performance for the Individual Properties for the 8th Fiscal Period (November 1, 2008 to April 30, 2009)：181days

Type

Office Buildings

Location

b0181

c0011

Residential Properties

Other Regional Areas

Property Name

KDX Minami
Semba Dai-1
Building

KDX Minami
Semba Dai-2
Building

KDX Niigata
Building

Residence
Charmante
Tsukishima

Acquisition Date

June 1, 2007

May 1, 2006

May 1, 2006

March 1, 2007

May 1, 2006

67

Central Urban Retail Properties
Other Regional
Tokyo Metropolitan Area
Areas

Tokyo Metropolitan Area

KDX Sendai
Building

c0021※As of April 30, 2009

Apartments
WakamatsuKawada

Gradito Kawaguchi

Court ShinOkachimachi

Venus Hibarigaoka Frame Jinnan-zaka

August 1, 2005 August 1, 2005 August 1, 2005 June 30, 2006

May 1, 2006

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

Court Mejiro

Apartments
Motoazabu

KDX Yoyogi
Building

Total of 67
Properties

Price Information

2,100
1.0%
2,221
1,640
0.8%
26
3,955.45
3,608.44

1,610
0.7%
1,535
1,310
0.6%
10
3,108.16
3,010.47

1,560
0.7%
1,448
1,290
0.6%
22
2,699.27
2,379.07

1,305
0.6%
1,480
844
0.4%
24
4,085.26
2,989.66

5,353
2.4%
5,246
4,720
2.2%
1
7,711.14
7,711.14

1,250
0.6%
1,225
1,040
0.5%
19
2,046.79
1,967.66

1,210
0.6%
1,206
1,120
0.5%
19
1,350.74
1,142.14

1,180
0.5%
1,151
1,120
0.5%
28
1,607.43
1,367.98

1,038
0.5%
1,054
949
0.4%
2
1,619.34
1,619.34

878
0.4%
864
819
0.4%
40
1,377.87
1,329.90

1,800
0.8%
1,876
1,510
0.7%
117
12,829.64
12,692.64

9,900
4.5%
10,073
10,9005.0%
134,655.71
4,467.44

2,479
1.1%
2,546
1,980
0.9%
8
1,175.38
892.15

218,999
100.0%
222,182
216,453
100.0%
842
250,364.42
239,692.45

91.2%
86.2%
93.7%
97.1%
-

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

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

73.2%
76.2%
61.0%
71.2%
83.9%
-

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

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

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

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

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

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

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

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

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

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

Operating periods

181days181days181days181days181days181days181days181days181days181days181days181days181days181days①Rental and other operating revenues (\ Thousands)

99,807

63,782

56,467

66,742

168,753

43,30237,15637,782

32,91629,00991,072

301,853

57,681

8,057,472
7,101,403

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

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

Income and Retained Earnings Information for the 8th Fiscal Period

Rental revenues

81,081

51,08742,57857,057

146,882

40,55835,741

33,52932,80926,98080,092

273,319

51,786

Other operating revenues

18,726

12,695

13,8899,685

21,871

2,744

1,415

4,253

107

2,028

10,97928,534

5,895

956,069

34,601

27,63922,54834,39831,915

9,468

6,515

7,273

5,887

5,047

47,24757,857

14,3082,097,367
783,417②Property-related expenses (\ Thousands)
Property management fees

12,398

7,224

5,826

13,437

17,392

3,094

2,874

2,905

2,544

2,107

7,926

19,955

4,093

Taxes

7,394

10,472

8,608

8,428

7,748

3,101

1,651

1,420

1,701

407

8,515

15,285

4,086

478,765

Utilities

7,344

6,673

5,583

9,362

1,502

831

593

422

424

397

2,202

16,636

3,998

565,360

Repairs and maintenance costs

5,879

2,107

1,145

1,723

2,677

1,376

515

520

301

897

13,626989

386

108,431

238

182

162

267

468

109

71

76

71

60

495

268

64

16,181

1,345

978

1,222

1,179

2,126

955

810

1,928

843

1,176

14,480

4,722

1,678

145,210
5,960,105

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

65,20536,14333,91932,343

136,837

33,83330,64130,50927,02923,962

43,824

243,996

43,373④Depreciation (\ Thousands)

17,362

24,92329,396

11,881

45,522

11,235

6,651

11,537

10,026

9,431

22,65156,7589,167

1,406,395⑤Rental operating income（＝③-④） (\ Thousands)

47,843

11,2204,523

20,462

91,315

22,59823,98918,971

17,002

14,53021,172

187,238

34,206

4,553,709⑥Capital expenditures (\ Thousands)

20,162

970

-

2,625

-

577

-

-

-

-

837

1,400

5,040

877,379⑦ＮＣＦ （＝③-⑥） (\ Thousands)

45,04235,17333,91929,718136,837

33,25630,64130,50927,02923,962

42,986

242,596

38,333

5,082,726

Expense ratio （＝②／①）

34.7%
14,550
3,367
3.37%

43.3%
13,902
2,039
3.20%

39.9%
10,983
1,844
3.27%

51.5%
16,641
2,022
3.03%

18.9%
14,523
5,343
3.17%

21.9%
6,187
1,574
3.64%

17.5%
2,979
1,383
3.72%

19.3%
2,462
1,393
3.69%

17.9%
3,326
1,223
3.72%

17.4%
756
1,081
3.73%

51.9%
16,078
2,752
3.02%

19.2%
26,862
11,139
3.69%

24.8%
7,598
2,062
3.58%

26.0%
1,147,544
283,209
3.51%

192,400
16,033

139,600
11,633

104,160
8,680

249,590
20,799126,753
10,562

44,1803,681

23,5701,964

27,5002,291

24,6902,057

22,1201,843

247,200
20,60053,8904,490

43,4503,620

9,044,099
753,674

●

●

●

-

●

Property tax for the year 2009 (or the year 2008) \( Thousands)

Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 12 yrs after the acquisition (\ Thousands)

Reference：Amount of yearly avg.
Assets pledged as collateral

-

-

-

-

-

●

●

-

-55-

a0101【Reference】

a0431

69

Earnings Performance for the Individual Properties for the 8th Fiscal Period (May 1, 2008 to April 30, 2009)：181days

Type

Office Building (sold）

Location

Other Regional Areas

Property NameKDX Koishikawa Building

KDX Hakata Building

Acquisition Date

August 1, 2005

June 1, 2007

※As of April 30, 2009

Total of 69
Total of 2 sold properties
Properties including soldproperties

Price Information

Acquisition price (\ Millions)

704

2,350

3,054

Percentage of total portfolio

23.1%

76.9%

100.0%-Net book value (\ Millions)

670

2,000

2,670

-

Lease Information

Appraisal value at the end of period (\ Millions)

678

2,430

3,108

Profit on sale of real estate (\ Millions)

△24

△468

△492

-

Total of end tenants

-

-

-

-

Leasable floor area (㎡)

-

-

-

-

Leased floor area（㎡)

-

-

-

-

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

100.0%
100.0%
100.0%---

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

Income and Retained Earnings Information for the 8th Fiscal Period

Operating periods

180days172days174days181days①Rental and other operating revenues (\ Thousands)

39,241

107,407

146,649

8,204,121
7,232,621

Rental revenues

34,173

97,044

131,218

Other operating revenues

5,067

10,363

15,430971,500

44,79731,71476,511

2,173,878

Property management fees

3,801

11,785

15,586

799,004

Taxes

5,503

10,597

16,101

494,866

Utilities

5,048

7,979

13,028578,388

Repairs and maintenance costs

29,744

195

29,939138,370

Insurance

83

267

351

16,532Trust fees and other expenses

615

889

1,505

146,715②Property-related expenses (\ Thousands)③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)△5,55575,69370,1376,030,242

9,781

13,151

22,932

1,429,328
4,600,914△15,337

62,541

47,204⑥Capital expenditures (\ Thousands)

11,7222,870

14,592891,971⑦ＮＣＦ （＝③-⑥） (\ Thousands)△17,278

72,82355,544

5,138,271

114.2%

29.5%

52.2%

26.5%

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

Expense ratio （＝②／①）
Property tax for the year 2009 (or the year 2008) (\ Thousands)--

Reference

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

784

3,736

4,521

287,731

Reference： Percentage of rental and other operating revenues

2.00%

3.48%

3.08%

3.51%

-

-

-

-

-

-

-

-

Long-term repairs, maintenance and renovation
Estimated amount of 12 yrs after the acquisition \( Thousands)

Reference：Amount of yearly avg.

Note: The Investment Corporation has sold KDX Koishikawa Building on April 30, 2009, and KDX Hakata Building on April 22, 2009, respectively.

-56-

(Reference)Borrowings
Borrowings on a financial institution basis as of April 30, 2009 are as follows
Classification
Short-Term Payable
Current Potion of Long-Term Payable

LenderDrawndown Date

The Chuo Mitsui Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Citibank Japan, Ltd.
Citibank Japan, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Citibank Japan, Ltd.
Resona Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Sub Total
Aozora Bank, Ltd.
Resona Bank, Ltd.
The Chiba Bank, Ltd.
Aozora Bank, Ltd.
Mitsui Sumitomo Insurance Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
(Note 3)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation(Note 4)
Sumitomo Mitsui Banking Corporation(Note 4)
Mitsubishi UFJ Trust and Banking Corporation (Note 4)
Sub Total
The Chuo Mitsui Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
Aozora Bank, Ltd.
Mitsui Sumitomo Insurance Co., Ltd.
Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.

January 10, 2008
February 29, 2008
May 1, 2008
October 31, 2008
October 31, 2008
November 4, 2008
December 8, 2008
January 13, 2009
February 27, 2009
April 30, 2009

Long-Term Payable

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

Balance at the
Average
Balance at theEnd of Previous
Interest
Payment
End of Period
Last Repayment Date
PeriodRate
Method(\Millions)(\Millions)(Note 1)

April 30, 2009

December 8, 2005

March 1, 2006
March 16, 2006

May 1, 2006

October 31, 2007
April 25, 2008
April 2, 2007
July 31, 2008

August 1, 2005

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

July 31, 2008

September 1, 2008
September 22, 2008
September 30, 2008
October 31, 2008
February 27, 2009

April 30, 2009

Usage

1,000
500
1,000
1,500
1,000
5,000
1,500
500
800
500
700
2,500
2,000
1,500
1,000
1,000
1,000
2,000
1,000
1,500
1,500
2,000
1,200
1,300
23,500
3,750
3,750
1,500
500
1,500
1,000
5,000
1,000
3,000

1,500
1,000
1,000
500
1,000
500
2,500
1,000
1,000
10,000
2,000
1,000
1,500
2,000
1,200
1,300
9,000
3,750
3,750
1,500
500
1,500
1,000
5,000
1,000
3,000

1.147
1.206
1.203
1.160
1.518
1.163
1.516
1.377
1.116
1.911
1.911
1.911

January 10, 2009
February 28, 2009
November 1, 2008
October 30, 2009
October 31, 2009
November 2, 2009 Full on(Note 2)
December 8, 2009 maturity
January 13, 2010
February 26, 2010
October 30, 2009

1.098

December 7, 2008

1.449

February 28, 2009

1.476

March 16, 2009

1.629

April 30, 2009 Full on(Note 2)maturity

2,500
2,000
1,500
2,500
2,000
1,500
3,000
2,000
1,000
1,000
1,500
3,000
2,000
1,300
1,400
800
2,200
1,000
300
1,000
1,250
2,000
500
58,25086,750

2,500
2,000
1,500
2,500
2,000
1,500
3,000
2,000
1,000
1,000
1,500
3,000
2,000
1,300
1,400
800
2,200
1,000
300
1,000
1,250
2,000
500
500
1,000
1,500
1,000
3,500
2,000
67,75086,750

1.339
1.563
1.463

Secured/
Unguaranteed

April 30, 2010

Secured/
Unguaranteed

October 31, 2009
October 25, 2009

1.574

April 2, 2010

1.681

January 31, 2010

1.288

July 31, 2010

2.199

April 30, 2011

2.731
2.149
2.124

April 30, 2016
July 13, 2011
August 31, 2013

1.964
1.875
1.646
1.503
1.366
1.429
1.609
1.559
1.905
1.987
2.150
2.263
1.867

November 30, 2011
April 2, 2012
April 16, 2011
January 10, 2012
February 28, 2011
August 31, 2011
September 30, 2011

Full onmaturity

November 1, 2011
February 28, 2011
June 30, 2012
December 28, 2012
March 31, 2011

1.870

January 31, 2011

1.992

July 31, 2011

1.775
1.713
1.818
1.565
2.071
2.040
2.225
2.230
2.511
2.511

Remarks(Note 2)

Secured/
Unguaranteed

September 1, 2011
March 22, 2011
March 31, 2011
October 31, 2010
February 29, 2012 (Note 5)
August 31, 2012 (Note 6)
April 28, 2011

Full onOctober 31, 2011 maturity
April 27, 2012

1. The average interest rate is the weighted-average interest rate for the fiscal period. The Investment Corporation entered into interest-rate swap transactions with the aim of minimizing the risk of future increase
in interest rates. The effect of interest-rate swap transactions has been incorporated into calculations for the weighted-average interest rate.
2. Funds procured through borrowings were used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings.
3. The Investment Corporation undertook prepayment on April 30, 2009.
4. Borrowings listed in the current potion of long-term payable were listed in long-term payable in the previous fiscal period.
5. Repayment Method: August 31, 2009 to February 29, 2012: repayment of\10 million every 6 months, and February 29, 2012: repayment of \450 million
6. Repayment Method:August 31, 2009 to August 31, 2012: repayment of\20 million every 6 months, and August 31, 2012: repayment of\880 million-57-