14 |Kenedix Office Investment Corporation Semiannual Report

Financial Section
Contents
Independent Auditor’s ReportE

Balance Sheets

F

Statements of Income and Retained Earnings

G

Statements of Changes in Net Assets

G

Notes to Financial Statements

H

Statements of Cash Flows (Unaudited)R

Financial Summary (Unaudited)
Historical Operating Trends
For the 14th–18th Fiscal Periods
Unit

14th Period(as of Apr. 30, 2012)

Operating revenues

mn yen

9,090

10,212

9,867

9,819

10,895(Rental revenues)

mn yen

9,090

9,617

9,306

9,501

10,330Operating expenses

mn yen

5,004

5,696

5,465

5,578

6,611

(Property-related expenses)

mn yen

4,284

4,822

4,740

4,845

5,047

Operating income

mn yen

4,086

4,516

4,401

4,240

4,283

Ordinary income

mn yen

2,551

3,011

3,003

2,832

2,887

Net income (a)mn yen

2,540

3,009

3,002

2,831

2,885

Total assets (b)mn yen303,284

306,734

308,172

316,753

355,167(+10.3)(+1.1)(+0.5)(+2.8)(+12.1)

137,372

140,581

142,369

150,558

167,746

Period(Period-on-period change)

Interest-bearing debt (c)%mn yen(Period-on-period change)%

Unitholders’ equity (d)mn yen(Period-on-period change)%

Unitholders’ capitalmn yen(Period-on-period change)

Number of investment units issued andoutstanding (e)Unitholders’ equity per unit (d)/(e)15th Period(as of Oct. 31, 2012)

16th Period(as of Apr. 30, 2013)

17th Period(as of Oct. 31, 2013)

18th Period(as of Apr. 30, 2014)(+23.9)(+2.3)(+1.3)(+5.8)(+11.4)150,063

150,389

150,653

150,781

170,109(-0.1)(+0.2)(+0.2)(+0.1)(+12.8)147,153

147,153

147,153

147,153

166,261

%

(0.0)

(0.0)

(0.0)

(0.0)

(+13.0)

unit

286,550

286,550

286,550

286,550

332,540
511,546yen

523,688524,828

525,747

526,195

mn yen

2,683

2,738

2,703

2,665

3,205

yen

9,364

9,557

9,434

9,302

9,638

(Earnings distributed per unit)

yen

9,364

9,557

9,434

9,302

9,638

(Distribution in excess of earnings per unit)

yen

—

—

—

—

—

Return on assets (annualized) (Notes 1 and 2)%

0.9 (1.8)

1.0 (2.0)

1.0 (2.0)

0.9 (1.8)

0.9 (1.7)

Return on net assets (annualized) (Notes 2 and 3)%

1.7 (3.4)

2.0 (4.0)

2.0 (4.0)

1.9 (3.7)

1.8 (3.6)

49.5

49.0

48.9

47.6

47.9

(-5.2)(-0.5)(-0.1)(-1.3)(+0.3)

45.3

45.8

46.2

47.5

47.2

Total distribution (f)Distribution per unit (f)/(e)Net assets ratio at end of period (d)/(b)(Period-on-period change)

Interest-bearing debt ratio at end of period (c)/(b)(Period-on-period change)

Payout ratio (Note 4) (f)/(a)%%%(+5.0)(+0.5)(+0.4)(+1.3)(-0.3)

105.6

90.9

90.0

94.1

111.0

Other references
Number of properties

properties

Total leasable floor aream2

Occupancy ratio at end of period

83

84

83

85

89

340,589.96

351,153.72

347,853.97

358,517.31

386,659.01

%

95.4

95.5

93.9

95.8

96.0

Depreciation expenses for the period

mn yen

1,578

1,621

1,662

1,696

1,826

Capital expenditures for the period

mn yen

918

904

772

894

711

Leasing NOI (Net Operating Income) (Note 5)

mn yen

6,384

6,416

6,228

6,352

7,109

FFO (Funds From Operation) (Note 6)

mn yen

4,119

4,187

4,202

4,293

5,031

yen

14,374

14,612

14,664

14,984

15,130FFO per unit (Note 7)

Notes: 1. Return on assets = Ordinary income/{(Total assets at beginning of period + Total assets at end of period)/2} × 100
2. Annualized values for the 14th Fiscal Period are calculated based on a period of 182 days, 184 days for the 15th Fiscal Period, 181 days for the 16th Fiscal Period,
184 days for the 17th Fiscal Period and 181 days for the 18th Fiscal Period.
3. Return on net assets = Net income/{(Total net assets at beginning of period + Total net assets at end of period)/2} × 100
4. Payout ratio is rounded down to the first decimal place.
5. Leasing NOI = Rental revenues – Rental expenses + Depreciation expenses for the period
6. FFO = Net income + Depreciation expenses for the period – Gain on sale of real estate property + Loss on sale of real estate property
7. FFO per unit = FFO/Number of investment units issued and outstanding (figures below ¥1 rounded down)
8. Where applicable, figures are rounded down to the nearest million.

Kenedix Office Investment Corporation Semiannual Report

| 15

16 |

Kenedix Office Investment Corporation Semiannual Report

Balance Sheets
Kenedix Office Investment Corporation
As of April 30, 2014 and October 31, 2013
In thousands of yen
As of April 30, 2014

As of October 31, 2013ASSETS
Current assets:
Cash and bank deposits (Note 12)¥ 18,055,433¥ 11,452,986

Rental receivables

252,557

254,059

Consumption tax refundable

219,447

100,159

Other current assets (Note 7)

74,267

228,433

18,601,704

12,035,637

Land

238,469,273

215,346,646

Buildings and structures (Note 5)

112,658,980

103,827,730

Machinery and equipment

1,973,320

1,766,278

Tools, furniture and fixtures

472,990455,837

Construction in progress

1,785

4,914

Total current assets
Property and equipment, at cost: (Notes 3, 11 and 13)

Less-accumulated depreciation
Net property and equipment(21,048,808)(19,630,791)

332,527,540

301,770,614

Other assets:
Ground leasehold (Notes 11 and 13)
Investment securities (Note 12)355,557

356,332

2,006,886

1,106,339

Corporate bond issuance costs

31,32835,651

Unit issuance costs

107,995

18,903

Other assets (Notes 11 and 13)
Total assets

1,536,342

1,429,698¥355,167,352¥316,753,174¥¥

LIABILITIES AND NET ASSETS
Liabilities
Current liabilities:
Trade and other payables
Short-term debt and current portion of long-term debt (Notes 4 and 12)
Deposits received
Rents received in advance
Other current liabilities

978,541
42,246,500

810,169
46,800,000

29,071

6,162

1,792,248

1,506,618

164,039

202,575

45,210,399

49,325,524

Corporate bonds (Notes 4 and 12)

6,300,000

6,300,000

Long-term debt (Notes 4 and 12)

119,200,000

97,458,000

Leasehold and security deposits received

14,347,418

12,888,425

185,057,817

165,971,949

166,261,746

147,153,820

Total current liabilities

Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Units authorized: 2,000,000 units
Units issued and outstanding: 332,540 and 286,550 units
As of April 30, 2014 and October 31, 2013, respectively
Surplus
Voluntary retained earnings
Reserve for reduction entry
Retained earnings
Total surplus

961,750

795,928

2,886,039

2,831,477

3,847,789

3,627,405

170,109,535

150,781,225

Total net assets (Note 8)

170,109,535

150,781,225

Total liabilities and net assets¥355,167,352¥316,753,174

Total unitholders’ equity

See accompanying notes to the financial statements.

Kenedix Office Investment Corporation Semiannual Report| 17

Statements of Income and Retained Earnings
Kenedix Office Investment Corporation
For the six months period from November 1, 2013 to April 30, 2014 and May 1, 2013 to October 31, 2013
In thousands of yen
From November 1, 2013 to April 30, 2014 From May 1, 2013 to October 31, 2013

Operating revenues:
Rental revenues (Notes 10 and 11)¥10,330,338¥9,501,700

Gain on sale of real estate property (Note 10)497,482

234,506

Dividends income

67,467

82,984

10,895,287

9,819,190

Property-related expenses (Notes 10 and 11)

5,047,051

4,845,827

Loss on sale of real estate property (Note 10)816,665—

Asset management fees

564,461

549,899

Total operating revenues
Operating expenses:

Administrative service and custodian fees

69,161

69,226

Other operating expenses

114,550

113,451

Total operating expenses
Operating income

6,611,888

5,578,403

4,283,399

4,240,787

Non-operating expenses:
Interest expense

1,039,564

1,050,678

Financing-related expenses

301,079

321,587

Amortization of unit issuance costs

40,502

18,903

Amortization of corporate bond issuance costs

4,323

6,143

Others, net

10,793

10,495

1,396,261

1,407,806

Ordinary income

Total non-operating expenses

2,887,138

2,832,981

Income before income taxes

2,887,138

2,832,981

Income taxes (Note 7)
Net income

1,266

1,504

2,885,872

2,831,477

Retained earnings at the beginning of period
Retained earnings at the end of period167—¥ 2,886,039¥2,831,477

See accompanying notes to the financial statements.

Statements of Changes in Net Assets
Kenedix Office Investment Corporation
For the six months period from November 1, 2013 to April 30, 2014 and May 1, 2013 to October 31, 2013
In thousands of yen
Unitholders’ equity
Surplus
Voluntary retained
earnings

Total
unitholders’equityUnitholders’capitalReserve for
reduction entry

Retainedearnings¥147,153,820¥497,043¥3,002,199

Provision of reserve for reduction entry—

298,885(298,885)———

Payments of dividends——(2,703,314)(2,703,314)(2,703,314)(2,703,314)

Net income——

2,831,477

2,831,477

2,831,477

2,831,477—

298,885(170,722)

128,163

128,163

128,163¥147,153,820¥795,928¥2,831,477

19,107,926——

Provision of reserve for reduction entry—

165,822(165,822)———

Payments of dividends——(2,665,488)(2,665,488)(2,665,488)(2,665,488)

Balance as of April 30, 2013

Total
surplusTotal¥3,499,242 ¥150,653,062 ¥150,653,062

Changes during the fiscal period

Total changes during the fiscal period
Balance as of October 31, 2013

¥3,627,405 ¥150,781,225 ¥150,781,225

Changes during the fiscal period
New unit issuance

Net income
Total changes during the fiscal period
Balance as of April 30, 2014
See accompanying notes to the financial statements.

—

19,107,926

19,107,926——

2,885,872

2,885,872

2,885,872

2,885,872

19,107,926

165,82254,562

220,384

19,328,310

19,328,310¥166,261,746¥961,750¥2,886,039¥3,847,789 ¥170,109,535 ¥170,109,535

18 |Kenedix Office Investment Corporation Semiannual Report

Notes to Financial Statements
Kenedix Office Investment Corporation
For the six months period from November 1, 2013 to April 30, 2014 and May 1, 2013 to October 31, 2013

1.

ORGANIZATION AND BASIS OF PRESENTATIONORGANIZATION
Kenedix Office Investment Corporation (Note) (“the Investment Corporation”) was established on May 6, 2005 under the Act on Investment
Trusts and Investment Corporations of Japan (“the Investment Trust Act”). On July 21, 2005, the Investment Corporation was listed on the Real
Estate Investment Trust Market of the Tokyo Stock Exchange with a total of 75,400 investment units issued and outstanding (Securities Code:8972). Subsequently, the Investment Corporation raised funds through five public offerings and other means including global offerings. As aresult, as of April 30, 2014, the end of the eighteenth fiscal period, the number of investment units issued and outstanding totaled 332,540
units. (Note: On effective from February 3, 2014, the Investment Corporation was renamed Kenedix Office Investment Corporation from Kenedix
Realty Investment Corporation.)
The Investment Corporation is externally managed by Kenedix Real Estate Fund Management, Inc. (“the Asset Management Company”) as its
asset management company. The Investment Corporation entrust the Asset management Company and in collaboration with the AssetManagement Company, the Investment Corporation strives to maximize cash distribution to investors by securing stable earnings and sustainable
investment growth. To this end, the Investment Corporation adopts the basic policy of conducting dynamic and flexible investment stance thatseeks to respond to its environment and market trends, and endeavors to ensure a timely response to opportunities.
During the period ended April 30, 2014, the Investment Corporation acquired seven office buildings (KDX Shinbashi Building (additional acquisition): acquisition price of ¥1,038 million, KDX Takanawadai Building: acquisition price of ¥5,250 million, KDX Ikebukuro Building: acquisition
price of ¥3,900 million, KDX Mita Building: acquisition price of ¥3,180 million, KDX Akihabara Building: acquisition price of ¥2,600 million, Aplus
Tokyo Building: acquisition price of ¥4,350 million, KDX Musashi-Kosugi Building: acquisition price of ¥12,000 million) located in the Tokyo
Metropolitan Area, one other property (Shinjuku 6-chome Building (Land): acquisition price of ¥2,880 million), an equity interest in a Japanesesilent partnership (tokumei kumiai, “TK”) for a trust beneficiary interest in Shinjuku Sanei Building (acquisition price of ¥1,107 million) and soldKDX Niigata Building (initial acquisition price of ¥1,305 million, Kabutocho Nikko Building II (initial acquisition price of ¥1,280 million) and Court
Mejiro (initial acquisition price of ¥1,250 million) (with a total disposition price of ¥3,559 million)). As of April 30, 2014, the Investment
Corporation had total unitholders’ capital of ¥166,262 million with 332,540 investment units outstanding. The balance of interest-bearing debt
amounted to ¥167,747 million as of April 30, 2014, comprising ¥161,447 million in borrowings (¥155,447 million in long-term borrowings and¥6,000 million in short-term borrowings) and ¥6,300 million in investment corporation bonds. The Investment Corporation owned a portfolio of
89 properties with a total acquisition price of ¥336,164 million containing a total leasable area of 386,659.01m2 and 2 investment securities witha total acquisition price of ¥1,998 million. The occupancy ratio was approximately 96.0%. A portfolio of 89 properties consists of 83 office buildings, 2 residential properties, 3 central urban retail properties and 1 other property. 74 properties are located in the Tokyo Metropolitan Area and15 properties are located in Other Regional Areas.

BASIS OF PRESENTATIONThe Investment Corporation maintains its accounting records and prepares its financial statements in accordance with accounting principles
generally accepted in Japan, which are different in certain respects as to the application and disclosure requirements of International Financial
Reporting Standards. The financial statements are prepared in accordance with the Investment Trust Act.
The financial statements are basically a translation of the Japanese audited financial statements of the Investment Corporation. In preparing
the accompanying financial statements, certain reclassifications have been made to the financial statements issued domestically in order to present them in a format which is familiar to readers outside Japan. Certain information in the business report and supplementary schedule has been
omitted. Additional information has been added to the Japanese audited financial statements for the convenience of readers outside Japan andthis includes disclosing the prior year’s comparatives as supplemental information in the English translated financial statements although theJapanese audited financial statements only need to disclose the current year’s information.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) SECURITIESNon-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving average method.
Concerning silent partnership (tokumei kumiai, “TK”) interests, the method of incorporating the amount of equity equivalent to the portion that
corresponds to the net gain or loss of TK is adopted.

Kenedix Office Investment Corporation Semiannual Report| 19(B) PROPERTY AND EQUIPMENT
Property and equipment are stated at cost. Depreciation of property and equipment is calculated on a straight-line basis over the estimated useful
lives of the assets ranging as stated below:
From November 1, 2013 to April 30, 2014

From May 1, 2013 to October 31, 2013

Buildings and structures

2-49 years

2-49 years

Machinery and equipment

3-17 years

3-17 years

Tools, furniture and fixtures

3-20 years

3-20 years(C) UNIT ISSUANCE COSTS
Unit issuance costs are amortized over a period of 3 years under the straight-line method.

(D) CORPORATE BOND ISSUANCE COSTS
Corporate bond issuance costs are amortized over a maturity period under the straight-line method.

(E) ACCOUNTING TREATMENT OF TRUST BENEFICIARY INTERESTS IN REAL ESTATE
For trust beneficiary interests in real estate, which are commonly utilized in the ownership of commercial properties in Japan, all assets and liabilities within trust are recorded in the relevant balance sheets and statements of income and retained earnings.

(F) GROUND LEASEHOLD
Fixed term leasehold on a building and the special agreement on building sales, and the building are amortized over a contractual period of 48
years and 9 months under the straight-line method.

(G) REVENUE RECOGNITION
Operating revenues consist of rental revenues including base rents and common area charges, and other operating revenues including utility
charge reimbursements, parking space rental revenues and other miscellaneous revenues. Rental revenues are generally recognized on an accrualbasis over the life of each lease. Utility charge reimbursements are recognized when earned and their amounts can be reasonably estimated.
Reimbursements from tenants including utility charge reimbursements are recorded on a gross basis and such amounts are recorded both as revenues and expenses during the fiscal period, respectively.

(H) TAXES ON PROPERTY AND EQUIPMENT
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar year
basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to said period. Under theJapanese tax rule, the seller of the property at the time of disposal is liable for these taxes on the property from the date of disposal to the end of thecalendar year in which the property is disposed. The seller, however, is reimbursed by the purchaser for these accrued property-related tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of the property-related
taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to ¥84,126 thousandand ¥26,946 thousand as of April 30, 2014 and October 31, 2013, respectively. In subsequent calendar years, such property-related taxes arecharged as operating expenses in the fiscal period to which the installments of such taxes correspond.

(I) INCOME TAXES
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets andliabilities using the statutory tax rates.

(J) CONSUMPTION TAXES
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Non-deductible consumption taxes applicableto the acquisition of assets are included in the cost of acquisition for each asset.

(K) DERIVATIVE FINANCIAL INSTRUMENTS
The Investment Corporation utilizes interest-rate swap and interest-rate cap contracts as derivative financial instruments only for the purpose ofhedging its exposure to changes in interest rates. The Investment Corporation deferred recognition of gains or losses resulting from changes infair value of interest-rate swap and interest-rate cap contracts because these contracts met the criteria for deferral hedging accounting. However,the Investment Corporation adopted the special treatment for interest-swap and interest-rate cap contracts if they met the criteria for hedging
accounting under this treatment, whereby the net amount to be paid or received under the interest-rate swap or interest-rate cap contract is
added to or deducted from the interest on the assets or liabilities for which the swap or cap contract was executed. The hedge effectiveness forinterest-rate swap and interest-rate cap contracts is assessed each fiscal period except for those that meet the criteria of special treatment.

20 |Kenedix Office Investment Corporation Semiannual Report(L) ROUNDING OF AMOUNTS PRESENTED
Amounts have been truncated in the Japanese financial statements prepared in accordance with Japanese GAAP and filed with regulatory
authorities in Japan, whereas amounts have been rounded to the nearest million in the accompanying financial statements. Totals shown in theaccompanying financial statements do not necessarily agree with the sums of the individual amounts.

3.

SCHEDULE OF PROPERTY AND EQUIPMENT
In millions of yen
As of April 30, 2014
Acquisition
costs

Accumulated
depreciation

Land¥238,469¥

Buildings and structures

112,659

Machinery and equipment

1,973

Tools, furniture and fixtures
Construction in progress
Total

4.

As of October 31, 2013
Book
value

Acquisition
costs

Accumulated
depreciation

Book
value

—

¥238,469¥215,346¥—¥215,346

20,012

92,647

103,828

18,63885,190

787

1,186

1,766

732

1,034

473

249

224

456

260

196

2

—

2

5

—

5

¥353,576¥21,048¥332,528¥321,401¥19,630¥301,771

SHORT-TERM DEBT, LONG-TERM DEBT AND CORPORATE BONDS

The following summarizes short-term debt, long-term debt and corporate bonds outstanding as of April 30, 2014:
Classification

Short-term debt
Subtotal
Current portion of long-term debt

SubtotalLong-term debt

Drawdown date

Last
Repayment date

Weighted-averageinterest rate

October 31, 2013
January 10, 2014

October 31, 2014
July 10, 2014

0.55%
0.58%

July 13, 2011
July 30, 2010
July 29, 2011
July 29, 2011
July 29, 2011
September 1, 2011
March 22, 2011
September 30, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
January 29, 2010
January 31, 2012
February 18, 2010
February 18, 2010
February 18, 2010
February 18, 2010
August 31, 2011
March 12, 2012
September 30, 2011
April 2, 2010
October 31, 2012

July 14, 2014
July 31, 2014
July 31, 2014
July 31, 2014
July 31, 2014
August 29, 2014
September 22, 2014
September 30, 2014
October 31, 2014
October 31, 2014
October 31, 2014
October 31, 2014
January 30, 2015
January 30, 2015
February 18, 2015
February 18, 2015
February 18, 2015
February 18, 2015
February 17, 2015
March 12, 2015
March 31, 2015
April 2, 2015
April 30, 2015

1.54%
1.73%
1.02%
1.02%
1.40%
1.15%
1.63%
1.27%
1.24%
1.26%
1.26%
1.26%
2.17%
1.19%
2.19%
2.19%
2.19%
2.19%
0.97%
1.08%
1.29%
2.22%
1.01%

May 1, 2006
November 12, 2010
November 12, 2010
November 12, 2010
December 1, 2010
December 1, 2010
December 1, 2010
January 31, 2011
February 28, 2011
February 28, 2011

April 30, 2016
November 12, 2015
November 12, 2015
November 12, 2017
November 12, 2015
November 12, 2015
November 12, 2017
January 29, 2016
August 31, 2015
January 29, 2016

2.73%
1.79%
1.79%
2.02%
1.42%
1.42%
2.21%
1.94%
1.91%
1.95%

Balance(In millions of yen)

¥

3,000
3,000
6,000
¥ 1,000
3,700
2,200
1,000
300
1,000
2,700
1,000
2,500
2,000
2,000
1,000
984
1,500
1,783
1,318
775
388
1,500
1,000
2,500
1,600
2,500
36,247¥ 5,000
1,200
800
2,300
800
200
700
800
3,000
500

Kenedix Office Investment Corporation Semiannual Report

Classification

Long-term debt

Drawdown date

Last
Repayment date

Weighted-averageinterest rate

March 31, 2011
March 31, 2011
April 28, 2011
April 28, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
January 10, 2012
March 28, 2012
March 28, 2012
March 28, 2012
March 30, 2012
April 27, 2012
June 29, 2012
September 21, 2012
September 21, 2012
September 21, 2012
October 31, 2012
October 31, 2012
October 31, 2012
October 31, 2012
December 10, 2012
December 28, 2012
December 28, 2012
December 28, 2012
January 15, 2013
February 18, 2013
March 26, 2013
March 26, 2013
April 30, 2013
July 31, 2013
July 31, 2013
August 19, 2013
August 19, 2013
August 19, 2013
August 19, 2013
August 19, 2013
August 30, 2013
August 30, 2013
August 30, 2013
August 30, 2013
September 30, 2013
September 30, 2013
October 31, 2013
November 12, 2013
November 12, 2013
November 12, 2013
November 29, 2013
November 29, 2013
November 29, 2013
January 10, 2014
January 31, 2014
January 31, 2014
January 31, 2014
March 12, 2014
March 12, 2014
March 12, 2014
March 12, 2014
March 20, 2014

January 29, 2016
March 31, 2016
October 31, 2015
January 29, 2016
October 31, 2015
October 31, 2015
October 31, 2015
October 31, 2016
October 31, 2016
October 31, 2016
January 29, 2016
March 28, 2017
March 28, 2019
March 28, 2019
September 30, 2015
October 30, 2015
June 30, 2017
September 21, 2017
September 21, 2017
September 21, 2017
October 31, 2016
October 31, 2016
October 31, 2017
October 31, 2018
December 12, 2016
December 28, 2016
December 28, 2017
December 29, 2017
January 15, 2017
February 18, 2016
March 26, 2018
March 26, 2018
April 30, 2016
July 29, 2016
July 31, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 31, 2018
August 31, 2018
August 31, 2018
August 31, 2020
September 30, 2019
September 30, 2019
October 31, 2018
November 12, 2018
November 12, 2020
November 12, 2020
November 30, 2018
November 30, 2020
November 30, 2020
January 31, 2021
January 31, 2017
January 31, 2020
January 31, 2021
March 12, 2018
March 31, 2019
March 12, 2020
March 12, 2023
March 12, 2020

1.91%
1.27%
1.86%
1.89%
1.34%
1.32%
1.34%
1.44%
1.42%
1.44%
1.27%
1.36%
1.77%
1.77%
1.21%
1.27%
1.29%
1.16%
1.16%
1.16%
1.06%
1.05%
1.10%
1.25%
0.98%
1.01%
1.09%
1.09%
0.97%
0.84%
1.04%
1.04%
0.72%
0.62%
0.72%
0.95%
0.95%
0.95%
0.97%
0.95%
1.08%
1.08%
1.08%
1.42%
1.06%
1.06%
0.89%
0.82%
1.07%
1.07%
0.84%
1.12%
1.12%
1.21%
0.67%
0.93%
1.13%
0.75%
0.78%
0.92%
1.36%
0.91%

| 21

Balance(In millions of yen)

¥

2,000
1,000
1,500
1,000
2,500
2,500
2,000
2,500
2,500
2,000
2,500
500
1,400
1,000
2,000
1,000
1,500
5,000
1,000
1,000
2,500
1,500
2,500
2,500
500
2,000
500
500
1,000
1,500
1,000
1,000
1,000
1,500
500
1,000
1,000
500
500
500
700
500
300
1,500
1,800
900
500
1,000
2,000
500
200
1,000
900
1,300
1,200
3,700
2,300
2,250
450
1,800
1,800
3,000

22 |

Kenedix Office Investment Corporation Semiannual Report

Last
Repayment date

Weighted-averageinterest rate

March 20, 2014
March 20, 2014
March 20, 2014
March 31, 2014
April 22, 2014

September 20, 2021
March 20, 2022
March 12, 2023
March 31, 2019
October 31, 2020

1.01%
1.20%
1.35%
0.76%
0.95%

March 15, 2007
March 8, 2012
September 12, 2013

March 15, 2017
September 8, 2017
September 12, 2018

2.37%
2.00%
1.00%

Classification

Drawdown dateLong-term debt

Subtotal
Corporate bonds

Balance(In millions of yen)

¥

4,000
3,000
2,000
2,500
2,900
119,200¥ 3,000
1,500
1,800
6,300
¥167,747

Subtotal
Total

5.

REDUCTION ENTRY

The amount of reduction entry of property and equipment acquired by government subsidy
In thousands of yen
As of April 30, 2014

As of October 31, 2013

¥26,230¥26,230

Buildings and structures

6.

PER UNIT INFORMATION
Yen
From November 1, 2013 to April 30, 2014

From May 1, 2013 to October 31, 2013

Net asset value per unit

¥511,546¥526,195

Net income per unit¥¥

Weighted average number of units (units)

8,767
329,164

9,881
286,550

The weighted average number of units outstanding of 329,164 and 286,550 as of April 30, 2014 and October 31, 2013 was used for the computation of the amount of net income per unit. Net income per unit after adjusting for residual units is not included because there were noresidual investment units.

7.

INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 37%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements are met under the Special
Taxation Measures Law of Japan. Under this law, the Investment Corporation must meet a number of tax requirements, including a requirementthat it currently distributes in excess of 90% of its distributable profits as defined in the Special Taxation Measures Law of Japan for the fiscal
period in order to be able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable
income of the Investment Corporation will be subject to regular corporate income taxes. Since the Investment Corporation distributed in excessof 90% of its distributable profit in the form of cash distributions totaling ¥3,205 million (adding ¥319 million as the reversal of reserve for
reduction entry) and ¥2,665 million (deducting ¥166 million as the provision of reserve for reduction entry) for the periods ended April 30, 2014
and October 31, 2013. Such distributions were treated as deductible distributions for purposes of corporate income taxes. The effective tax rateon the Investment Corporation’s income was 0.04% and 0.05% for the periods ended April 30, 2014 and October 31, 2013. The following summarizes the significant difference between the statutory tax rate and the effective tax rate:
As of April 30, 2014

As of October 31, 2013

Statutory tax rate

36.59%

36.59%

Deductible cash distributions(40.62)(34.43)

Provision of reserve for reduction entry—(2.14)

Others4.07

0.03

Effective tax rate

0.04%

0.05%

Kenedix Office Investment Corporation Semiannual Report| 23

The significant components of deferred tax assets and liabilities as of April 30, 2014 and October 31, 2013 were as follows:
In thousands of yen
As of April 30, 2014

As of October 31, 2013

Deferred tax assets:
Enterprise tax payable¥

Amortization of leasehold rights

34

¥

1,808

47
1,543

Subtotal deferred tax assets

1,842

1,590

Valuation allowance

1,808

1,543

Total deferred tax assets

¥

34

¥

47

Tax rate changes after the eighteenth fiscal period
With the Act on Partial Revision of the Income Tax Act (Act No.10, 2014) which was promulgated on March 31, 2014, the Act on Special
Measures for Securing Necessary Financial Resources to Implement Measures to Rebuild Areas Devastated by the Great East Japan Earthquake(Act No. 117, 2011) was partially amended to set the taxation period of special corporation tax for reconstruction through March 31, 2014.
Accordingly, the effective statutory tax rate used to calculate deferred tax assets and deferred tax liabilities concerning temporary differences, etc.
expected to be resolved in accounting periods starting on April 1, 2014 and after will be changed to 34.16%. The effect of the announced tax
rate changes is immaterial.

8.

NET ASSETSThe Investment Corporation issues only non-par value units in accordance with the Investment Trust Act. The entire amount of the issue price of
new units is designated as stated capital. The Investment Corporation is required to maintain net assets of at least ¥50 million as required by theInvestment Trust Act.

9.

RELATED-PARTY TRANSACTIONSTRANSACTIONS WITH KENEDIX REAL ESTATE FUND MANAGEMENT, INC.
Kenedix Real Estate Fund Management, Inc., a consolidated subsidiary of Kenedix, Inc., provides the Investment Corporation with property management services and related services. For these services, the Investment Corporation pays Kenedix Real Estate Fund Management, Inc. property
management fees in accordance with the terms of its Property Management Agreements. For these services, the Investment Corporation paid
¥399 million to Kenedix Real Estate Fund Management, Inc.

TRANSACTIONS WITH OTHER RELATED-PARTIES.
The Investment Corporation acquired trust beneficiary interests in real estate from GK KRF 41 and GK KRF 35 with the acquisition price of¥12,000 million and ¥3,900 million, respectively. The acquisition prices were determined based on the related-parties’ transaction rule.

10.

BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES,GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY

Rental and other operating revenues, property-related expenses, gain and loss on sale of real estate property for the six months periods from
November 1, 2013 to April 30, 2014 and May 1, 2013 to October 31, 2013 consist of the following:
In thousands of yen
From November 1, 2013 to April 30, 2014

From May 1, 2013 to October 31, 2013

Rental and other operating revenues:
Rental revenues¥ 7,380,878

Common area charges¥6,649,670

1,695,193

1,587,331

9,076,071

8,237,001

Parking space rental revenues

326,300

299,884

Utility charge reimbursement

804,404

851,381

Miscellaneous

123,563

113,434

1,254,267

1,264,699

10,330,338

9,501,700

Subtotal
Others:Subtotal
Total rental and other operating revenues
Property-related expenses:
Property management fees and facility management fees

1,016,938

951,025

Depreciation

1,826,542

1,696,849

916,744¥ 928,822

Utilities

¥

24 |

Kenedix Office Investment Corporation Semiannual Report

Taxes

¥

847,466¥ 851,090

Insurance

14,825

14,372

Repairs and maintenance

193,972

173,604

Trust fees

45,142

42,377

Loss on retirement of fixed assets
OthersTotal property-related expenses—

10,114

185,422

177,574

5,047,051

4,845,827

Gain on sale of real estate property:
Revenue from sale of investment property

2,929,105

1,970,000

Cost of investment property

2,405,839

1,672,153

Other sales expenses
Gain on sale of real estate property

25,784

63,341

497,482

234,506

630,000—

1,427,549—

Loss on sale of real estate property:
Revenue from sale of investment property
Cost of investment property
Other sales expenses

19,116

Loss on sale of real estate property

11.

¥

—

816,665¥—

PROPERTY INFORMATIONType

Office Buildings

Location

Number of properties

Central Urban
Retail Properties

Residential Properties

Tokyo
Metropolitan Area

Other Regional
Areas

Tokyo
Metropolitan Area

Other Regional
Areas

69

14

1

1

¥252,961¥50,990¥5,353¥1,8003

1

Property information
Acquisition price
Percentage of total acquisition price

OthersTokyo
Tokyo
Metropolitan Area Metropolitan Area

(In millions of yen)

¥22,180¥2,88075.25%

15.17%

1.59%

0.53%

6.60%

0.86%

Net book value

252,185

49,282

4,802

1,724

21,917

2,973

Appraisal value

240,871

43,811

4,710

1,570

22,5802,90076.12%

13.84%

1.49%

0.50%

7.13%

0.92%

Percentage of total appraisal value

Financial results for the period from November 1, 2013 to April 30, 2014
Rental and other operating revenues(In thousands of yen)

¥7,345,894¥2,093,844¥181,462¥90,039¥614,187¥4,912

Rental revenues

6,490,264

1,791,962

161,62179,304

548,008

4,912

Other revenues

855,630

301,882

19,841

10,73566,17902,187,302

810,391

50,08941,881130,8451

Property management fees

680,879

264,072

21,013

7,957

43,017—

Taxes

599,548

205,910

14,385

7,621

20,001

1

Utilities

649,805

209,603

2,613

2,647

52,076—

Repairs and maintenance

112,283

55,693

2,993

13,602

9,401

—

8,977

4,825

351

296

376

—

Property-related expenses

Insurance
Trust fees and other expenses
NOI (Net Operating Income)

135,81070,288

8,734

9,758

5,974

—

5,158,592

1,283,453

131,373

48,158483,342

4,911

Depreciation expenses

1,233,410

416,820

52,24021,452

102,620—

Operating income from property leasing activities

3,925,182

866,633

79,133

26,706

380,722

4,911

Capital expenditures

498,253

209,992

1,463

519

810

—

NCF (Net Cash Flow)¥4,660,339¥1,073,461¥129,910¥47,639¥482,532¥4,911

Kenedix Office Investment Corporation Semiannual Report| 25

A breakdown of property-type as of April 30, 2014 was as follows:
Class of assets

Property type

Property and equipment

Office Buildings

Area

Balance at the end of period(In millions of yen)

Tokyo Metropolitan Area
Other Regional Areas

Subtotal
Residential Properties

13.9%

301,467

84.9%

4,802

1.4%

Other Regional Areas

1,724

0.5%

6,526

1.8%

Tokyo Metropolitan Area

21,917

6.2%

21,917

6.2%

Subtotal
Other

71.0%

49,282

Tokyo Metropolitan Area

Subtotal
Central Urban Retail Properties

Percentage of total assets¥252,185

Tokyo Metropolitan Area

Subtotal
Total

2,973

0.8%

2,973

0.8%

332,883

93.7%

Investment securities

2,007

0.6%

Bank deposits and other assets

20,277

5.7%

Total assets

355,167

100.0%

Total liabilities

185,058

52.1%

Net assets¥170,110

47.9%

12.

FINANCIAL INSTRUMENTS

Eighteenth Fiscal Period (November 1, 2013 to April 30, 2014)(A) OVERVIEW(1) POLICY FOR FINANCIAL INSTRUMENTS
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bankloans and the issuance of corporate bonds and new investment units. The Investment Corporation uses derivatives for the purpose of hedging its
exposure to changes in interest rates and does not enter into derivatives for speculative or trading purposes. Management of surplus funds isundertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.

(2) TYPES OF FINANCIAL INSTRUMENTS AND RELATED RISK
Investment securities are preferred equity securities issued by a special purpose entity (tokutei mokuteki kaisha, “TMK”) as set forth by the Act on
Securitization of Assets and Japanese silent partnership (tokumei kumiai, “TK”) interests are exposed to credit risk of the issuer and risk of fluctuation of value of its property.
Debt and corporate bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a
maximum of approximately nine years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate swap and interest-rate cap transactions) in order to reduce such risk.
Interest-rate swap and interest-rate cap transactions are used as derivative financial instruments. Utilizing interest-rate swap and interest-rate
cap transactions, the Investment Corporation fixes its interest expense for long-term debt bearing interest at a variable rate. With regard to hedge
accounting methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, pleasesee 2. (K) DERIVATIVE FINANCIAL INSTRUMENTS.

(3) RISK MANAGEMENT FOR FINANCIAL INSTRUMENTS(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap transactions and interest-rate cap transaction in order to minimize risk arising from fluctuations in interest rates on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of theissuer with regard to investment securities.
(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled due
dates) associated with funds procurement
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates
and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.

(4) SUPPLEMENTARY EXPLANATION OF THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fairvalue is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors
could result in a different fair value.

26 |Kenedix Office Investment Corporation Semiannual Report(B) ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying value of financial instruments on the balance sheet as of April 30, 2014 and estimated fair value are shown in the following table.
The following table does not include financial instruments for which it is extremely difficult to determine the fair value (Refer to *2 below).
In thousands of yen
Carrying value

Estimated fair value

Difference¥ 18,055,433¥ 18,055,433¥

18,055,433

18,055,433—

햲 Short-term debt

6,000,000

6,000,000—

햳 Corporate bonds(including current portion of corporate bonds)

6,300,000

6,483,690

183,690

햲 Cash and bank deposits
Subtotal햴 Long-term debt(including current portion of long-term debt)
Subtotal—

155,446,500

155,707,337

260,837¥167,746,500¥168,191,027¥444,527———

Derivative Transactions (*)(*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing net liability position.

*1: METHODS TO DETERMINE THE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS AND OTHER MATTERS RELATED TO
SECURITIES AND DERIVATIVE TRANSACTIONSASSETS햲 Cash and bank deposits
Since these items are settled in a short period of time, their carrying value approximates fair value.

LIABILITIES햲 Short-term debt
Since these items are settled in a short period of time, their carrying value approximates fair value.
햳 Corporate bonds
The fair value of corporate bonds is based on quoted market prices.
햴 Long-term debt
The fair value of long-term debt is based on the present value of the total of principal and interest discounted by the interest rate to be applied if
similar new loans were entered into. The fair value of long-term debt bearing interest at variable rates, which is subject to fixed interest rates
resulting from interest-rate swaps and special treatment applied to said swaps, is based on the present value of the total of principal and interest,
which is handled together with the applicable interest-rate swaps, discounted by the interest rate to be applied if similar loans were entered into.

DERIVATIVE TRANSACTIONS햲 Hedge accounting not applied
Not applicable햳 Hedge accounting applied
Hedge accounting
methodContracted amount(In thousands of yen)Type of derivativetransactions

Hedged items

Special treatment ofinterest-rate swaps

Interest-rate swaps:
Receive/floating andpay/fixed

Long-term debt

¥57,700,000

Special treatment ofinterest-rate cap

Interest-rate cap

Long-term debt

Fair value(In thousands of yen)Calculation method for
applicable fair value¥50,200,000*—

3,000,000

3,000,000*—¥60,700,000¥53,200,000

Maturing after 1 year

Total

—

(*) Interest-rate swaps and interest-rate caps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, theirfair value is included in the fair value of the hedged long-term debt.

*2: FINANCIAL INSTRUMENTS FOR WHICH IT IS EXTREMELY DIFFICULT TO DETERMINE THE FAIR VALUEClassification

Carrying value (In thousands of yen)

Investment securities¥2,006,886

Because no quoted market price is available and it is extremely difficult to determine the fair value, the above preferred equity securities of TMK
and TK interests are not included in the preceding table.

| 27

Kenedix Office Investment Corporation Semiannual Report*3: REDEMPTION SCHEDULE FOR RECEIVABLES
Due within 1 year or less
(In thousands of yen)

Cash and bank deposits¥18,055,433

Total¥18,055,433*4: REDEMPTION SCHEDULE FOR DEBT AND CORPORATE BONDS
In thousands of yen
Due within 1 year
or less

Due after 1 year
through 2 years

Due after 2 years
through 3 years

Due after 3 years
through 4 years

Due after 4 years
through 5 years

Short-term debt

¥ 6,000,000

¥

¥

¥

¥

Corporate bonds——

3,000,000

1,500,000

1,800,000—

Long-term debt

¥36,246,500¥32,800,000¥17,700,000¥19,250,000¥15,050,000¥34,400,000

13.

—

—

—

—

Due after
5 years¥—

INVESTMENT AND RENTAL PROPERTIES

Eighteenth Fiscal Period (November 1, 2013 to April 30, 2014)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
Carrying value (In thousands of yen)
As of October 31, 2013

Net change

As of April 30, 2014

Fair value as of April 30, 2014
(In thousands of yen)

¥302,127,261¥30,756,034¥332,883,295¥316,442,000

notes: 1. The carrying value represents the acquisition cost less accumulated depreciation.
2: The fair value is the appraisal value or the survey value determined by outside appraisers.
3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increases and decreases were
the acquisition of 8 properties totaling ¥35,708,056 thousand, the sale of 3 properties totaling ¥3,833,388 thousand and depreciation amounting to¥1,826,542 thousand.

Income and loss in the fiscal period ended April 30, 2014 for real estate for rental purposes is listed in Note “10. BREAKDOWN OF RENTAL AND
OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY”.

14.

SUBSEQUENT EVENTSISSUANCE OF THE NEW INVESTMENT UNITSOn May 8 and May 20, 2014, the Board of Directors of the Investment Corporation resolved to issue new investment units as detailed below. The
payments were completed on May 27, 2014 through issuance of public offering. As a result of the issuance of new investment units, theInvestment Corporation had total unitholders’ capital of ¥176,138,701,670 with 353,940 investment units outstanding as of May 27, 2014.
Furthermore, when new investment units are issued through a third-party allotment with Nomura Securities Co. Ltd. as the allottee in connection with the secondary offering, the payment date will be June 24, 2014 (planned).
(Issuance of New Investment Units through Public Offering)Issuance of New Investment Units:21,400 units (Domestic Offering 10,700 units, International Offering 10,700 units)

Issue Price (Offer Price):¥478,725 per unit

Aggregate Issue Price (Total Offer Price):¥10,244,715,000

Issue Amount (Paid-in Value):¥461,540 per unit

Total Issue Amount (Aggregate Paid-in Value):¥9,876,956,000

Payment Date

:May 27, 2014

(Issuance of New Investment Units through Third-Party Allotment)
Issuance of New Investment Units (Maximum):1,070 units

Issue Amount (Paid-in Value):¥461,540 per unit

Total Issue Amount (Aggregate Paid-in Value) (Maximum) :¥493,847,800
Payment Date

:June 24, 2014 (Planned)

Allottee:Nomura Securities Co., Ltd.

(Use of proceeds)
The funds from the Domestic Offering and International Offering allocated as a portion of the funds for the acquired properties in the nineteenth fiscal period. Furthermore, the funds from the issuance of new investment units by third-party allotment are allocated to as proceeds
to a portion of fund for future acquisition of specified assets and repayment of borrowings.

28 |Kenedix Office Investment Corporation Semiannual ReportStatements of Cash Flows (Unaudited)
Kenedix Office Investment Corporation
For the six months period from November 1, 2013 to April 30, 2014 and May 1, 2013 to October 31, 2013
In thousands of yen
From November 1, 2013
to April 30, 2014

From May 1, 2013
to October 31, 2013

¥ 2,887,138¥ 2,832,981

2,158,841(572)
1,039,564—

2,023,561(565)
1,050,678
10,114

1,501(119,288)(24,903)(40,304)
285,630
3,833,388(375,523)
9,645,472
572(1,049,144)(946)
8,595,954(69,012)(100,159)(155,406)
109,022(179,837)
1,672,153(212,763)
6,980,767
565(1,056,258)(890)
5,924,184

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
Purchases of investment securities
Proceeds from investment securities
Proceeds from leasehold and security deposits received
Payments of leasehold and security deposits received
Payments of restricted bank deposits
Proceeds from restricted bank deposits
Others, net
Net cash used in investing activities(36,179,723)(1,109,906)
213,076
2,339,795(759,482)(94,114)80,657
180(35,509,517)(15,090,275)(202,400)—
1,161,189(623,098)(94,092)
32,279(292)(14,816,689)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term debt
Payments of short-term debt
Proceeds from long-term debt
Payments of long-term debt
Proceeds from issuance of investment units
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Payment of dividends
Net cash provided by financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period

3,000,000(6,100,000)
37,800,000(17,511,500)
18,978,331——(2,664,276)
33,502,555
6,588,992
10,948,849¥ 17,537,841

7,900,000(4,500,000)
11,700,000(7,211,500)—
1,784,250(1,500,000)(2,702,999)
5,469,751(3,422,754)
14,371,603¥ 10,948,849

CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income taxes
Adjustments to reconcile income before income taxes to
net cash provided by operating activities:
Depreciation and amortization
Interest income
Interest expense
Loss on retirement of fixed assets
Changes in assets and liabilities:
Rental receivables
Consumption tax refundable
Accrued consumption tax
Trade and other payables
Rents received in advance
Property and equipment due to sale
Others, net
SubtotalInterest income received
Cash payments of interest expense
Cash payments of income taxes
Net cash provided by operating activities

See related notes.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (UNAUDITED)CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid, readily convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of purchase.

CASH AND CASH EQUIVALENTS (UNAUDITED)Cash and cash equivalents consisted of the following as of April 30, 2014 and October 31, 2013:
In thousands of yen

Cash and bank deposits
Restricted bank deposits (Note)
Cash and cash equivalents

As of April 30, 2014

As of October 31, 2013

¥18,055,433(517,592)¥17,537,841¥11,452,986(504,137)¥10,948,849

Note: Restricted bank deposits are retained for repayment of tenant leasehold and security deposits.