KENEDIX REALTY INVESTMENT CORPORATION (8972)

Translation Purpose Only

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2010 (REIT)(May 1, 2010 to October 31, 2010)

December 13, 2010

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

Taisuke Miyajima, Executive Director

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

Taisuke Miyajima, CEO and President

Inquires:

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

Planned submission of semiannual security report: January 28, 2011
Planned start of distribution payments:

January 18, 2011

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2010 (ELEVENTH FISCAL PERIOD)(1) Business Results(The amount is rounded down to the nearest ¥million)

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

October 31, 2010

8,358

(3.6%)

3,835(2.6%)

2,608(1.5%)

2,607(1.5%)

April 30, 2010

8,067

(1.8%)

3,738(16.3%)

2,568(22.1%)

2,567(22.1%)For the six months ended

Net Income

Return on Unitholders’ Equity

per Unit (Yen)

Ordinary Income to

Ordinary Income toTotal Assets

Operating Revenues

For the six months ended
October 31, 2010

11,162

1.9%

1.0%

31.2%

April 30, 2010

11,125

2.0%

1.1%

31.8%

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

Total Distribution(Millions of Yen)

Earnings (Yen)Distributions in

Total Distributions in

Excess of Earnings

Excess of Earnings

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

to Unitholders’EquityFor the six months ended
October 31, 2010

10,881

2,541

0

-

97.5%

1.9%

April 30, 2010

10,993

2,567

0

-

100.0%

1.8%

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

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Share(Millions of Yen)

(Millions of Yen)

to Total Assetsof Common Stock (Yen)For the six months ended
October 31, 2010

251,080

135,73254.1%

581,170

April 30, 2010

251,566

135,68953.9%

580,987

This notice is the English-language translation of the Japanese announcement on our Web site released on December 13, 2010. However, noassurance or warranties are given for the completeness or accuracy of this English-language translation.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)（The amount are rounded down to the nearest ¥million.）(4) Cash Flow Position
Cash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents

Operating Activities

Investing Activities

Financing Activities

at End of Period(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

For the six months ended
October 31, 2010

6,664

- 615

- 2,966

15,367

April 30, 2010

4,144

- 14,568

11,752

12,285

2．FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING APRIL30, 2011 (November 1, 2010 to April 30, 2011)
Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)Distribution perDistribution in

Unit Excluding

Excess ofExcess ofEarnings per Unit

Earnings (Yen)(Yen)

10,000-For the six months
endingApril 30, 2011

8,075(- 3.4%)3,646(-4.9%)

2,272(- 12.9%) 2,271(-12.9%)(Reference) Estimated net income per unit for the fiscal period ending April 30, 2011: ¥9,724
Forecasted number of investment units issued and outstanding as of April 30, 2011: 233,550 units

3．OTHER(1) Changes in Accounting Policies(a) Changes accompanying amendments to accounting standards: Yes(b) Changes other than (a): Yes
Note: For details, please refer to page 27 “Notes to the Changes in Accounting Policies”.

(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)
As of October 31, 2010: 233,550 units
As of April 30, 2010: 233,550 units(b) Number of treasury units at end of period
As of October 31, 2010: 0 units
As of April 30, 2010: 0 units
Note: Please refer to page 38 “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 twelfth fiscal period ending April 30, 2011 are calculated as of December 13, 2010 based on theassumptions presented on page 15 “Preconditions and Assumptions for the Fiscal Period Ending April 30, 2011”. Readers areadvised that actual operating revenues, operating income, ordinary income, net income, distribution per unit may differ significantly
from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of the forecast
distribution per unit.

This notice is the English-language translation of the Japanese announcement on our Web site released on December 13, 2010. However, noassurance or warranties are given for the completeness or accuracy of this English-language translation.

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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 July27, 2010), 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 July 27, 2010) and extraordinary report (submitted on August 26, 2010), and so it has been omitted fromthis document.
(2) Operating Conditions(1) Operating Conditions for the Eleventh Fiscal Period (fiscal period ended October 31, 2010)
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. The Investment Corporation also
undertook an additional issue of 33,550 investment units through a public offering in Japan on November 16, 2009. Consequently, as of
October 31, 2010, the end of the eleventh fiscal period, the number of investment units issued and outstanding totaled 233,550 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 (fiscal period ended October 31, 2010), foreign demand, which has been driving the Japanese
economy, began to weaken in driving force and domestic demand, which lacks the ability to achieve self-sustaining recovery, stalled.
These factors generated concerns of the Japanese economy entering a temporary lull and a growing sense of uncertainty over the future.
Concerning real estate market conditions, official land prices announced by the Ministry of Land, Infrastructure, Transport and Tourism
on July 1, 2010 showed that, although land prices continued to decrease against the backdrop of a stagnant economic environment, thedegree of decrease was found to be on a narrowing trend. The average change in land prices for the one-year period from July 2009 in
Japan decreased by 4.6% for commercial land and decreased by 3.4% for residential land. In the Tokyo Area, the average decreased by
4.1% for commercial land and decreased by 3.0% for residential land. In the three major metropolitan areas, the average decreased by
4.2% for commercial land and decreased by 2.9% for residential land. In each case, the degree of decrease was smaller compared to theprevious survey.
Concerning office building leasing market conditions, office vacancy rates continued to hover at high levels. While there were signs of abreak in the drop in new rents and rise in vacancy rates in central area locations, there were still ongoing supply-demand adjustments.
On the other hand, in the real estate transaction market, there was a greater sense of security in the market and there were signs of realestate transactions by J-REITs and private placement funds gradually gaining momentum, due in part to the financial environment
settling down again and real estate prices seeming more reasonably priced.
(b) Management Performance
As of the end of the tenth fiscal period (fiscal period ended April 30, 2010), the Investment Corporation owned 70 properties with a totalacquisition price of ¥235,769 million. In the fiscal period under review (fiscal period ended October 31, 2010), the Investment
Corporation sold 1 office building (initial acquisition price of ¥1,610 million), and 1 residential property (initial acquisition price of ¥878
million) in Tokyo Metropolitan Area.
In addition, starting from disclosures pertaining to the fiscal period under review, A-47 KDX Shin-Yokohama 381 Building (acquisition
price of ¥4,700 million) and A-65 KDX Shin-Yokohama 381 Building Annex Tower (acquisition price of ¥1,100 million) are indicatedcollectively as one property.
As a result, the number of properties owned as of October 31, 2010 stood at 67, with a total acquisition price of ¥233,281 million.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Looking at the portfolio as a whole, 90.6% was comprised of office buildings, 5.3% of central urban retail properties and 4.0% of
residential properties on an acquisition price basis. The occupancy ratio as of the end of the eleventh fiscal period was 93.6% reflecting
stable investment and asset management.
＜Changes in Asset Size since Seventh Fiscal Period＞
Seventh Fiscal Period
Eighth Fiscal Period
Ninth Fiscal Period
Tenth Fiscal Period
Eleventh Fiscal Period(as of October 31, 2008)(as of April 30, 2009)(as of October 31, 2009) (as of April 30, 2010) (as of October 31, 2010)
Total
Total
Total
Total
Total
Ratio
Ratio
Ratio
Ratio
Ratio
Acquisition Price
Acquisition Price
Acquisition Price
Acquisition Price
Acquisition Price
(%)
(%)
(%)
(%)
(%)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
196,965

88.7

193,911

88.5

197,46189.6

213,071 90.3

211,461 90.6,

Type of Use

Office Buildings
Central Urban
Retail Properties
Residential Properties

12,3795.5

12,3795.6

12,3795.6

12,3795.2

12,3795.3

12,7095.7

12,7095.8

10,3194.6

10,319

4.3

9,441

4.0

222,053

100.0

218,999

100.0

220,159 100.0

235,769 100.0

233,281 100.0

189,23885.2

188,534

86.0

186,14484.5

201,754 85.5

199,266

85.4

Area

Total
Tokyo Metropolitan
Area
Other Regional Areas

32,81514.7

30,46513.9

34,01515.4

34,015 14.4

34,015

14.5

Total

222,053

100.0

218,999

100.0

220,159 100.0

235,769 100.0

233,281 100.0

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.

Property Acquisitions in the Tenth Fiscal Period (fiscal period ended April 30, 2010) Onwards
The Investment Corporation has built a strong asset (portfolio) base that is diversified across 67 properties amounting to ¥233,281
million in total acquisition price with a stable occupancy ratio of 93.6% as of the end of the fiscal period under review (fiscal
period ended October 31, 2010).
The Investment Corporation acquired four office buildings in November 2009, in advance of the full-fledged recovery of the realestate transaction market, with funds procured by increasing capital through public offering and additionally acquired one officebuilding in February 2010 with funds procured through new borrowings. In this manner, the Investment Corporation has beenenhancing its presence in the mid-sized office building transaction market. Specifically, four properties were acquired from anexternal private placement fund, etc. by increasing capital through public offering (Koishikawa TG Building, Gotanda TG
Building, KDX Nihonbashi 216 Building and KDX Shin-Yokohama 381 Building Annex Tower) and one property was acquired
in a negotiated transaction with another J-REIT through new borrowings (KDX Shinjuku Building) for a total of five properties(total acquisition price of ¥15,610 million) acquired in the tenth fiscal period (fiscal period ended April 30, 2010).
The Investment Corporation has drawn on the advantages of being among the first to resume property acquisitions in the form of
expansion and deep cultivation of its own information sourcing channels, such as private placement funds, other J-REITs,
financial institutions and brokerage firms, and leading to external growth.
Moreover, the Investment Corporation also secured funds for replacement of assets by selling one office building that is leasedout entirely to a single tenant and one residential property that has been five years since construction of it was completed (total
sales price: ¥2,500 million).
Furthermore, the Investment Corporation acquired Kyodo Building (Ginza No. 8) and Kyodo Building (Honcho 1chome) in
November 2010 and KDX Kobayashi-Doshomachi Building in December 2010 with funds procured through new borrowingsand cash on hand for a total of three properties (total acquisition price of ¥11,170 million). Please refer to “(Reference) ①
Acquisition of Properties and ②Debt Financing” on page 12 for details.
As a corporation boasting an asset (portfolio) base that has a presence centering on mid-sized office buildings, the Investment
Corporation pursues consistent external growth by leveraging the know-how on operating mid-sized office buildings accumulatedby the Asset Management Company.
Operation and Management of Existing Properties
The Investment Corporation has appointed the Asset Management Company as its property management company for its entire
portfolio. In establishing a single point of contact for all matters relating to property management activities, the Investment
Corporation strives to secure consistent policies, specifications and procedures along with ensuring swift and quality service. Asof October 31, 2010, the investment portfolio is being managed generally at a high occupancy ratio and the occupancy ratio as ofthe end of the fiscal period under review (fiscal period ended October 31, 2010) was maintained at 93.6%. The Investment
Corporation is satisfied with the quality of property management.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Stable Management due to Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for office buildings was 633 as of the end of the fiscal period under review (fiscal period ended
October 31, 2010). Floor area leased to each end-tenant as a proportion of total leased floor area of the total portfolio was at most
2.1% for tenants of office buildings, and 5.5% for the total top 3 tenants of office buildings. This indicates that diversification in
the number of tenants has been realized. Furthermore, tenants of office buildings are comprised of various sectors, such as theservice sector, wholesalers, retailers, manufacturers, etc. As a result, the impact by a certain end-tenant vacating the property or the
economic recession impacting a certain sector has relatively small effect. Therefore, the Investment Corporation believes that it
will achieve stable portfolio management.
Leasing Management in View of the Leasing Market Environment
The Investment Corporation believes that the mid-sized office building market tends to stably maintain the number of tenants at a
certain level even amidst the phase of a weakening leasing market. This is because the market has a broad base of potential tenants
as well as diversified business sectors, bringing a variety of tenant needs for lease that include demands for increased floor spaces,
requirements by companies to transfer offices from higher-rent buildings and needs to transfer offices as a result of corporate
restructuring.
Of all others, “mid-sized office buildings in Tokyo Metropolitan Area,” which is an area that the Investment Corporation ismainly investing in is the largest market in terms of demand due to the economic scale of the Tokyo Metropolitan Area and there
are many middle-market and small- and medium-sized enterprises that are candidates for tenancy.
Since the listing in 2005, the Investment Corporation had conducted negotiations to increase rents while maintaining favorable
relationships with tenants in cases where market rents greatly exceeded contracted rents. These activities to match the contracted
rent with the market rents had realized increases in rental revenue.
On the other hand, in view of the sudden deterioration of the economy since autumn 2008 and the accompanying trends of theleasing market, at the beginning of the eighth fiscal period (fiscal period ended April 30, 2009) the Investment Corporation
switched to the management policy of placing priority on maintaining occupancy ratios without, in principle, negotiating to raise
rents during forthcoming negotiations on rent.
One reason why it was able to swiftly switch policies was because the Investment Corporation entrusts all its property
management duties to the Asset Management Company, and that it has an established structure that enables it to take into accountfuture trends of the leasing market in advance and swiftly respond to market changes.
Change in Occupancy Ratio
The occupancy ratio of office buildings that the Investment Corporation owns in the Tokyo Metropolitan Area was stably
maintained at no less than 95% at the end of the seventh fiscal period (fiscal period ended October 31, 2008) up to the end of thetenth fiscal period (fiscal period ended April 30, 2010) through a flexible leasing policy responding promptly to the market trends
mentioned above. The fiscal period under review (fiscal period ended October 31, 2010) remained under a difficult leasing
environment and was affected by such factors as extended periods of vacancy. Nevertheless, the Investment Corporation
managed to maintain the occupancy ratio of office buildings in the Tokyo Metropolitan Area at the 94% level and keep the fall inthe occupancy ratio of office buildings overall down to 0.7% lower than the end of the previous fiscal period at 93.3%.
Furthermore, the occupancy ratio was 100% for 29 out of 61 office buildings that the Investment Corporation owns. These andother results indicate that occupancy ratios have generally maintained stable levels for its office buildings overall.
<Changes in Occupancy Ratio (Note) for Total Office Buildings, Tokyo Metropolitan Area, Other Regional Areas and Portfolio>
Office Buildings
Total

Tokyo Metropolitan Area

Seventh Fiscal Period
95.7％
96.2％
(As of October 31, 2008)
Eighth Fiscal Period
95.6％
96.5％
(As of April 30, 2009)
Ninth Fiscal Period
94.4％
97.3％
(As of October 31, 2009)
Tenth Fiscal Period
94.0％
95.7％
(As of April 30, 2010)
Eleventh Fiscal Period
93.3％
94.6％
(As of October 31, 2010)
Note: Occupancy ratios are rounded to the nearest first decimal place.

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Other Regional Areas

Portfolio

94.1％

95.6％

92.4％

95.7％

85.9％

94.7％

88.2％

94.4％

89.0％

93.6％

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Average Rent Level
As of the end of the fiscal period under review (fiscal period ended October 31, 2010), the average rent level of office buildings
was 16,300 yen (Note), whereas it was 16,700 yen (Note) as of the end of tenth fiscal period (fiscal period ended April 30, 2010)
and 17,200 yen (Note) as of the end of ninth fiscal period (fiscal period ended October 31, 2009). This means that it has dropped
5.1% compared to the end of the ninth fiscal period and 2.3% compared to the end of tenth fiscal period, but the downward trend
is weakening and the Investment Corporation believes that the rents are stable even amidst this phase of the weakening leasing
market.
Note : The average rent level covers the offices primarily on the second floor and above, excluding those on the first floor and those used as shops,
warehouses or for special purposes, etc., of the 56 properties the Investment Corporation has owned since the end of the seventh fiscal period(October 31, 2008) and which it has continued to own until the end of the fiscal period under review (KDX Nagoya Sakae Building(building portion) which was acquired in the ninth fiscal period, 5 properties acquired during the tenth fiscal period and KDX
Shinjuku-Gyoen Building sold in the fiscal period under review are not included, and starting from the fiscal period under review. Startingfrom the fiscal period under review, KDX Shin-Yokohama 381 Building is calculated collectively with the Annex Tower as 1 property.).
The average rent level of each property is the value obtained by dividing the sum of the monthly rent (including common area charges) per
each property by the total leased area of each property, and is rounded down to 100 yen.

C. Capital Acquisition(a) Status of Borrowings
The Investment Corporation undertook borrowings of ¥14,900 million (¥12,400 million in long-term borrowings and ¥2,500 million in
short-term borrowings (Note 1)) to repay borrowings that matured during the eleventh fiscal period (fiscal period ended October 31, 2010).
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.
However, the borrowings whose period until repayment date have surpassed one year because the repayment date 1 year from thedrawdown date is not a business day and for which the repayment date has been moved to the following business day, are included in
short-term borrowings.
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 Eleventh Fiscal Period>
BorrowingAmount(Millions of Yen)

Drawdown
Date

Last Repayment
Date

Borrowing
PeriodSumitomo Mitsui Banking Corporation

Series 48-B
Series48-C
Series 48-D

1,500
500
3,700
3,700

July 30, 2010
July 30, 2010
July 30, 2010
July 30, 2010

July 31, 2011
July 31, 2013
January 31, 2014
July 31, 2014

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Series 49

1,500

October 26, 2010 October 31, 2011

Mitsubishi UFJ Trust and Banking Corporation

Series 50-A
Series 50-B
Series 50-C

1,000
2,500
500

October 29, 2010 October 31, 2011
October 29, 2010 October 31, 2012
October 29, 2010 October 31, 2013

1 yr
3 yrs
3.5 yrs
4 yr
1yr and 6
days
1 yr
2 yrs
3 yrs

LenderClassification

Mitsubishi UFJ Trust and Banking Corporation

Series 48-A

Resona Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.

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

As of the end of the tenth fiscal period (fiscal period ended April 30, 2010), the balance of borrowings stood at ¥90,968.5 million(¥82,168.5 million in long-term borrowings and ¥8,800 million in short-term borrowings). As a result, the balance ofinterest-bearing debt stood at ¥102,567 million as of October 31, 2010, comprising ¥90,567 million in borrowings (¥84,267
million in long-term borrowings and ¥6,300 million in short-term borrowings) and ¥12,000 million in investment corporation
bonds.
As of October 31, 2010, ¥15,500 million out of ¥22,500 million of long-term borrowings which have floating interest rates havebeen fixed by utilizing interest-swap agreements. In addition, the long-term debt ratio (Note 2) was 93.9% and the long-term
fixed interest debt ratio (Note 3) was 87.0%.
Note 2: 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 to the nearest first decimal place.
Note 3: Long-term fixed interest debt ratio＝（Balance of long-term fixed interest rate borrowings＋Balance of investment corporation bonds）
÷（Total borrowings＋Balance of investment corporation bonds）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 to the nearest first decimal place.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

The balance of borrowings according to financial institution as of October 31, 2010 is as follows.
（Unit: Millions of Yen)
Eleventh Fiscal Period
Ratio
Lender(as of October 31, 2010)(%) (Note 4)
Sumitomo Mitsui Banking Corporation
21,337
23.6
The Chuo Mitsui Trust and Banking Co., Ltd.
15,400
17.0
Aozora Bank, Ltd.
13,975
15.4
Development Bank of Japan Inc.
13,555
15.0
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
9,800
10.8
Mitsubishi UFJ Trust and Banking Corporation
7,200
7.9
Resona Bank, Ltd.
4,300
4.7
The Norinchukin Bank
4,000
4.4
Mitsui Sumitomo Insurance Co., Ltd.
1,000
1.1
Total
90,567100.0
Note 4: Percentages are rounded down to the nearest first decimal place.

(b) Overview of Posted Collateral
The status of the posted collateral as of October 31, 2010 are as follows.
（Unit: Millions of Yen)Type
Office Buildings
Central Urban Retail Properties
Residential Properties
Total

Collateralized Assets (Secured)
Uncollateralized Assets (Unsecured)
Number of
Appraisal Value at the End
Number of
Appraisal Value at the End
Properties
of Eleventh Fiscal Period Properties (Note 2) of Eleventh Fiscal Period
41 properties
142,11020 properties
48,0281 property
9,750
1 property
1,900
2 properties
5,900
2 properties
1,909
44 properties
157,760
23 properties
51,837

In addition, the outstanding balance of secured borrowings as of the end of the fiscal period under review (fiscal period ended
October 31, 2010) is 90,567 million yen. In addition to the above 44 properties for which it has posted collateral, the Investment
Corporation posted collateral for three other properties on November 12, 2010 (KDX Shin-Yokohama 381 Building (Note 2),
Kyodo Building (Ginza No. 8) and Kyodo Building (Honcho 1chome)). For further details, please refer to page 13 “(Reference
Material) ③Posting Additional Collateral.”Notes:
1. As of December 13, 2010, the outstanding balance of secured borrowings is 100,067 million yen.
2. Starting from disclosures pertaining to the fiscal period under review, A-47 KDX Shin-Yokohama 381 Building and A-65 KDX
Shin-Yokohama 381 Building Annex Tower are indicated collectively as one property.

(c) Diversification of Debt Maturities
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates and extending
borrowing periods for its interest-bearing debt. In addition, the total balance of interest-bearing debt as of the end of the eleventh
fiscal period (fiscal period ended October 31, 2010) maturing in each fiscal period is as follows.
Balance of Interest-Bearing Debt Maturing in Each Fiscal Period of the Investment Corporation (Note)

Note: Amounts are rounded to the nearest second decimal place.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)(d) Status of Credit Rating
The status of the credit ratings as of October 31, 2010 is as follows.
Credit Rating Agency
Japan Credit Rating Agency, Ltd.

Details of the Ratings
Rating of Long-Term Senior Debts
Ratings on Bonds
Rating of Shelf Registration
OutlookA
StableOn June 14, 2010, the Investment Corporation requested that Moody’s Investors Service, Inc. withdraw the issuer credit
rating of Ba1 (negative outlook) and senior unsecured long-term debt rating of Ba1 (negative outlook) that it had been issued.
Moody’s Investors Service, Inc.withdrew the issuer credit rating on June 18, 2010.
(e) Status of Shelf Registration
The Investment Corporation filed a debt shelf registration statement in February 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 have 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 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.

Secondary Offering¥15,000,000,000
May 14, 2009 to May 7, 2011
Not applicable

There is no primary offering or secondary offering based on the abovementioned investment unit certificate shelf registration.
D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥8,358
million, operating income of ¥3,835 million, ordinary income of ¥2,608 million and net income of ¥2,607 million for its eleventh
fiscal period (fiscal period ended October 31, 2010).
Concerning cash distributions, the Investment Corporation has decided to book a portion of its unappropriated retained earnings
to internal reserve as a reserve for reduction entry based on application of the “Special Provisions for Taxation in the Event ofAdvance Acquisition of Land, etc. in 2009 and 2010” (Article 66-2 of the Special Taxation Measures Law). On that basis, toensure that the stipulations of Article 67-15 of the Special Taxation Measures Law applies, the Investment Corporation decided
to distribute roughly the total amount of the amount remaining after the reserve for reduction entry as stipulated in Article 66-2 ofthe Special Taxation Measures Law is deducted from unappropriated retained earnings. Accordingly, the Investment Corporation
declared cash distribution of ¥10,881 per unit.
-8-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Outlook
A. Investment Environment
The Japanese economy saw appreciation of the yen, convergence of policy effects and other factors lead to difficult circumstances suchas exports and production being on a weak note recently and unemployment rates still hovering at high levels. As a result, the economy isshifting from a recovery trend to a standstill.
Concerning real estate market conditions, according to the “Trend Report of the Prices of Intensively Used Land in Major Cities”(survey period: July 1, 2010 to October 1, 2010) announced by the Ministry of Land, Infrastructure, Transport and Tourism on
November 26, 2010, while land prices continued to fall in the majority of the intensively used districts (residential and commercial
districts) of major cities in Japan (87 districts (58%) out of all 150 districts), land prices rose or remained unchanged in 63 districts (42%).
With no districts reported to have land prices that decreased by “6% or higher” in the previous report and followed by a decrease in thenumber of districts reported to have land prices that decreased by “3% or higher, but lower than 6%” from the previous survey’s thirteen
districts to five districts in the report this time and such, the slowing pace of decrease in land prices overall was found to have continued
from the previous report.
In the office building leasing market, a research group on office market trends formed jointly by Japan Real Estate Institute and Miki
Shoji Co., Ltd. says that vacancy rates will peak in 2010 and rents will bottom out in 2011 for large- and mid-sized buildings (100 tsubo
or more in floor area of a typical floor) in the central business district of Tokyo (five central wards of Tokyo) and sees that the worst of the
sharp downturn may soon be over. However, while companies are ceasing movements to reduce offices, there are little movements to
expand offices, etc. by increasing floor area or relocating and so there is still no progress in improvement of the balance of supply anddemand.
In the real estate transaction market, there were signs of transactions gradually becoming more active as a result of the large favorable
turn in the financing environment, real estate prices seeming more reasonably priced, global monetary easing leading to a flow ofinvestment money, centering on Asia, towards real estate and other factors.
B. Future Management Policies and Pending Issues
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, real estate transaction market, etc.), the Investment Corporation creates a property
investment strategy, existing property management strategy, and financial strategy in a dynamic and flexible manner as set forth below.
(a) New Property Investment Strategy and Sales Policy
The Investment Corporation aims to grow its asset size to about ¥400 billion yen within the medium-to-long terms, with establishing its
position as the “No. 1 REIT for mid-sized office buildings” in mind.
In the wake of the global credit crunch, the Investment Corporation has been prioritizing the improvement of its financial standing andselling of its properties from the eighth fiscal period (fiscal period ended April 30, 2009) through ninth fiscal period (fiscal period ended
October 31, 2009). However, the Investment Corporation believes that it is now at the stage of reverting back to the natural state of a
J-REIT, which is to pursue portfolio growth over the medium to long term.
With such factors as the recovery of creditworthiness of J-REITs for which the real estate market stabilization fund was established,change of sponsor companies, mergers between J-REITs and the resumption of public offerings or issuance of investment corporation
bonds, in addition to the declining lending base rate, the financing environment of J-REITs has improved. Amidst such a situation, theappetite of investors to invest in real estate is gradually recovering and real estate transaction prices are also showing signs of a recovery.
Under these circumstances, the Investment Corporation occupies an advantageous position in the transaction market for mid-sized officebuildings, as it holds a portfolio surpassing 200 billion yen and has an abundant track-record in investing in and managing mid-sized
office buildings, as well as proven financial stability.
Against such a backdrop, the Investment Corporation considers the present situation as “a good opportunity to work to seek stable
growth of its portfolio through newly acquiring mid-sized office buildings.” With this perspective, the Investment Corporation intends tofurther the acquisition of mid-sized office buildings ahead of the full-fledged recovery of the market, without waiting for deals in theoverall office building transaction market to become active.
Moreover, in acquiring properties, the Investment Corporation will strive to diversify investment methods in due consideration of also
the balance of financing, such as fund-type investments through investments in silent partnership, and will also strengthen the sourcing of
information on portfolio matters so as to get a hold of properties ahead of others.
The Investment Corporation aims to acquire properties that should contribute to increased profitability of its portfolio, fully considering
the rental NOI yield (Note) of the portfolio it owns, the weighted average costs and the significance and impact of the properties on its-9-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

growth strategies.
In selling properties, the Investment Corporation will examine the sale of properties individually in accordance with the room for
replacement of assets that assumes property acquisition or fund-type investments. Of this, concerning central urban retail properties andresidential properties, the Investment Corporation will not only refrain from conducting new investments in principle, but will also placesuch properties on the top of the list of properties to sell while taking into consideration the market environment, asset size and otherfactors. On the other hand, the Investment Corporation will decide on the sale of office buildings individually by considering the current
profitability, revenue projections that take into account future market trends, building age, area and property size, among other factors,
and also in light of the significance of the property’s presence in the portfolio.
Note: The leasing NOI yield is a weighted-average figure of the annualized yield of leasing NOI（= Rental revenues - Rental expenses + Depreciation
expenses for the period）against the acquisition price, in accordance with the operating period.

(b) Existing property management strategy
The Investment Corporation has appointed the Asset Management Company as its sole property management company for the entire
portfolio as of the end of the eleventh fiscal period (fiscal period ended October 31, 2010). 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.
Taking into consideration economic and real estate market trends, the Investment Corporation adopts a tenant-oriented approach to its
leasing activities with aims of ensuring a timely and flexible responses as well as optimal tenant satisfaction. Accordingly, the Investment
Corporation will aim to 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 CS surveys (customer satisfaction = tenant satisfaction)
・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・Appropriate responses to relevant laws and regulations
・Proactive environmental response
Identify tenant satisfaction through use of CS 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 (fiscal period ended April 30, 2006), thesecond CS Survey, which covered 44 of its properties, during the fifth fiscal period (fiscal period ended October 31, 2007) and the third CS
Survey, which covers 58 properties during the ninth fiscal period (fiscal period ended October 31, 2009).
Based on the results of the first survey and the second survey, the Investment Corporation has strived to maintain and enhance customer
satisfaction by, in terms of hardware (buildings and facilities), implementing construction for maintenance and construction in response to
the CS Survey (renovations to enhance value and for other purposes) for respective properties in a way to meet tenant needs and, in termsof software (operating and management services), by changing building maintenance companies for properties with low satisfaction onbuilding maintenance, and conducting improvement activities individually based on the feedback to questionnaires to administration
officers on the site. The third survey conducted in July 2009, showed enhanced satisfaction in most items, resulting in the reflection of the
improvement activities the Investment Corporation has taken to date.
Given the results of the third CS Survey, the Investment Corporation gave feedback during the eleventh fiscal period (fiscal period ended
October 31, 2010) to each tenant for all properties concerning opinions of tenants and countermeasures. Following that, it has taken
specific measures to address individual problems one by one. Furthermore, based on the voices of tenants up to the third survey, theInvestment Corporation established guidelines on management response centering on improvement measures to reflect issues ofdissatisfaction in terms of software (operating and management services), including cleaning and tenant services, in an aim to standardize
and enhance service quality in relation to the portfolio. The Investment Corporation has adopted the guidelines as a rule as of the twelfth
fiscal period (fiscal period ending April 30, 2011).
The Investment Corporation will continue to listen to the voices of tenants, its customers, and will endeavor to conduct improvement-10-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

activities after grasping its strengths and problems both in terms of hardware and software for each property, in pursuit of maintaining andenhancing tenant satisfaction.
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.
Measures 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.
During the period from the eighth fiscal period (fiscal period ended April 30, 2009) to the tenth fiscal period (fiscal period ended April 30,2010), the Investment Corporation conducted management under the policy of reducing the budget for major construction to enhancevalue and keeping construction expenditures to the scope necessary, due to having completed the bulk of construction measures at manyof its portfolio properties. For the fiscal period under review (fiscal period ended October 31, 2010) and onwards, the Investment
Corporation will proactively follow through with the above, in addition to appropriate construction for maintenance and construction forrenovations that are necessary for lease-up, in view of maintaining and boosting asset value and stabilizing revenue.
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.
Based on the results of the CS urveys, the Investment Corporation will consolidate its building maintenance companies by taking utmost
advantage of the portfolio size, and then will implement operation and management in close contact with the actual properties in order tofurther enhance the management quality and services. The Investment Corporation will set unified standards in regards to specifications
and services that tend to differ by property, and implement measures to enhance the value by carrying out property management basedon these unified standards. By doing so, the Investment Corporation aims to maintain rent levels and asset values.
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.
Depreciation

Construction actual cost・budget（Millions of Yen）

1,800
1,500
1,200
900
1,445

600

1,294

1,477

1,451

1,429

1,440

1,406

1,394

1,030
877

300

571

441

462

10th Period
Result11th Period
Result750

0
7th Period
Result8th Period
Result9th Period
Result12th Period
Budget13th Period
BudgetLeasing 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
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-11-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

management track record 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 carefully control the quality of property management and operating costs and reduce building
maintenance and operating costs by taking advantage of the portfolio size in building maintenance costs and construction bidding.
Appropriate responses to relevant laws and regulations
The Investment Corporation will swiftly collect information with regard to the laws to be revised, including the Energy Saving Act, as
well as present laws and regulations, to appropriately make the required responses.
Proactive environmental response
The Investment Corporation was designated as a specified corporation pursuant to the Act on the Rational Use of Energy on October 1,
2010. The Investment Corporation will research on energy saving and environmental friendliness of mid-sized office buildings, develop
medium- to long-term energy saving plans and reduction targets, and proactively institute measures in terms of both hardware (buildings
and facilities) and software (operating and management services) in an aim to ensure the simultaneous pursuit of return on investment
and social benefits.
(c) Financial Strategy (Debt Financing)
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.
While all borrowings of the Investment Corporation were unsecured and unguaranteed since the first borrowing was drawn in August
2005, collateral was posted in April 2009 for a certain proportion of its assets under management for the purpose of smooth fundprocurement. Given the ongoing improvement in the financing environment since 2010, the Investment Corporation will aim to improve
present borrowing terms.
In order to pursue stable financial management, the Investment Corporation will aim to keep the ratio of interest-bearing debt to total
assets (LTV) at less than 45% as a rule as it has done so to date. However, it will also remain open to the option of management at theupper 40% level brought about by debt financing conducted for the purpose of acquiring prime properties, etc. The Investment
Corporation will continue to carry out conservative leverage control over its LTV.
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.
(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/ ).

(3) Important Subsequent Events
There were no important events following account settlement of the eleventh fiscal period (fiscal period ended October 31, 2010).
(Reference Material)① Acquisition of Properties
The Investment Corporation acquired Kyodo Building (Ginza No.8) and Kyodo Building (Honcho 1chome) on November 12, 2010
and KDX Kobayashi-Doshomachi Building on December 1, 2010 with funds procured through aforementioned ②new borrowingsand cash on hand for a total of three properties (total acquisition price of ¥11,170 million).

-12-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Kyodo Building (Ginza No. 8)(office building)

Property Name
Type of Specified
Asset
Location(Address)
Type of Structure
Site Area
Completion Date
Acquisition Price
Property Name
Type of Specified
Asset
Location(Address)
Type of Structure
Site Area
Completion Date
Acquisition Price

Property Name
Type of Specified
Asset
Location(Address)
Type of Structure
Site Area
Completion Date
Acquisition Price

Trust beneficiary interest in real estate
1-20-14 Ginza Chuo-ku, TokyoF94,724.62 ㎡
November 29, 1991
4,300 million yen

Kyodo Building (Honcho 1chome)(office building)Trust beneficiary interest in real estate
1-5-9 Honcho, Nihonbashi, Chuo-ku,
Tokyo
B1 F9
5,110.45 ㎡
January 31, 1984
4,000 million yen

KDX Kobayashi-Doshomachi Building(office building)Trust beneficiary interest in real estate(fixed-term leasehold with special agreementon building sales, and the building)
4-4-10 Doshomachi, Chuo-ku, Osaka-shi,Osaka
B1 F12
10,723.83 ㎡
July 28, 2009
2,870 million yen②Debt Financing
The Investment Corporation executed the following syndicated loan with Sumitomo Mitsui Banking Corporation acting as an agent on
November 12, 2010 and December 1, 2010 to support the acquisition of the abovementioned three properties.
Term Loan 51-A
LenderAmountInterest Rate
Drawdown
Date
Repayment
Date

Term Loan 51-B

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Chuo Mitsui Trust and Banking Co., LimitedAozora Bank, Ltd.
¥2,700 million¥800 million

Term Loan 51-C
Sumitomo Mitsui Banking
Corporation
Resona Bank, Ltd.
¥2,000 million

1.58375％(Fixed rate of interest)

1.25742%(Floating rate of interest) (Note 1)

1.78875％(Fixed rate of interest)

November 12, 2010

December 1, 2010

November 12, 2010

November 12, 2013

November 12, 2013

November 12, 2015

Term Loan 51-D

Term Loan 51-E

Term Loan 51-F

LenderSumitomo Mitsui Banking
Corporation
Resona Bank, Ltd.

Amount¥1,000 million¥2,300 million¥700 million

Interest Rate

1.35742%(Floating rate of interest) (Note 2)

2.0225％(Fixed rate of interest)

2.20625%(Fixed rate of interest)

December 1, 2010

November 12, 2010

December 1, 2010

November 12, 2015

November 12, 2017

November 12, 2017

Drawdown
Date
Repayment
Date

Development Bank of Japan Inc.

Notes:
1. The interest rate covers the period commencing December 1, 2010 through January 31, 2011. Thereafter, the interest rate shall be calculated based on
the six-month yen TIBOR +1.00%. The interest rate after January 31, 2011, shall be disclosed as and when determined.
2. The interest rate covers the period commencing December 1, 2010 through January 31, 2011. Thereafter, the interest rate shall be calculated based on
the six-month yen TIBOR +1.10%. The interest rate after January 31, 2011, shall be disclosed as and when determined.

③Posting Additional Collateral
The following three properties were pledged as additional collateral on November 12, 2010. The assets that were pledged as additional
collateral are the following trust beneficiary interests in real estate, as well as other contingent assets (right to claim fire insurance
proceeds, etc.).
-13-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(Unit: Millions of Yen)Type

Property

Property Name

Area

No.
A-47

KDX Shin-Yokohama 381 Building

Tokyo Metropolitan Area

A-67

Kyodo Building (Ginza No.8)

Tokyo Metropolitan Area

OfficeType of Assets
Trust Beneficiary Interests(Note 1)
Trust Beneficiary Interests

Most Recent Appraisal
Value (Reference)
4,250
4,520

A-68
Kyodo Building (Honcho 1chome)
Tokyo Metropolitan Area Trust Beneficiary Interests
4,330
Notes:
1. For KDX Shin-Yokohama 381 Building, the existing tower which was acquired on February 1, 2008 and the annex tower which was acquired on
November 18, 2009 are indicated collectively as one property. However, assets that are to be pledged as additional collateral are in the form of separate
trust beneficiary interests in real estate for the existing tower and the annex tower (total of two).
2. The appraisal value for KDX Shin-Yokohama 381 Building are stated as of October 31, 2010, while the appraisal values for Kyodo Building (Ginza
No.8) and Kyodo Building (Honcho 1chome) are stated as of October 1, 2010.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Outlook
Forecasts for the twelfth fiscal period (November 1, 2010 to April 30, 2011) are presented as follows. Please refer to the “Preconditions andAssumptions for the Fiscal Period Ending April 30, 2011” below for factors that underpin forecasts.
Operating Revenues
Operating Income
Ordinary Income
Net Income
Distribution per Unit
Distribution in Excess of Earnings per Unit

¥8,075 million¥3,646 million¥2,272 million¥2,271 million¥10,000¥0

Note: Forecast figures are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income and distribution per unit
may differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does not guarantee payment of the forecast
distribution per unit.

“Preconditions and Assumptions for the Fiscal Period Ending April 30, 2011”
Preconditions and Assumptions
Calculation Period
Property Portfolio

Operating Revenues• The twelfth fiscal period: November 1, 2010 to April 30, 2011 (181 days)• Forecasts are based on the 70 properties held as of December 13, 2010.
• Upon calculating the abovementioned number of properties, KDX Shin-Yokohama 381 Building and
KDX Shin-Yokohama 381 Building Annex Tower were considered together as 1 property• Forecasts are based on the number of properties remaining unchanged up to and including the end of
the twelfth fiscal period.
• The property portfolio may change due to a variety of factors.
• Rental revenues are estimated based on valid leasing agreements as of December 13, 2010 and byconsidering variable factors, such as seasonal factors against the backdrop of historical performance,
as well as leasing conditions, such as the recent deterioration of real estate market conditions.
• Upon calculating the operating revenues, the 2 properties (Kyodo Building (Ginza No.8) and Kyodo
Building (Honcho 1chome)) acquired in November 2010, and 1 property (KDX
Kobayashi-Doshomachi Building) acquired in December 2010 are included.
• Forecasts are based on the assumption that there will be no rent in arrear or non-payments fromtenants.

Operating Expenses• Property-related expenses other than depreciation are based on historic expenses, adjusted to reflect
the expenses variables including seasonal factors.
• Upon calculating the operating expenses, the 2 properties (Kyodo Building (Ginza No.8) and Kyodo
Building (Honcho 1chome)) acquired in November 2010 and 1 property (KDX
Kobayashi-Doshomachi Building) acquired in December 2010 are included.
• An amount of ¥809 million has been estimated for property management fees and facility
management fees (property management and building maintenance fees, etc.).
• An amount of ¥649 million has been estimated for taxes and public dues (property tax andcity-planning tax, etc.).
• An amount of ¥1,406 million has been estimated for depreciation expense.
• An amount of ¥123 million has been estimated for repairs and maintenance expense.
• 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 amountequivalent 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.

Non-Operating Expenses• The Investment Corporation is amortizing unit issuance costs over a period of three years using thestraight-line method.
• Interest payable (including financing related expenses etc.) of ¥1,359 million is forecasted for the-15-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Non-Operating Expenses

twelfth fiscal period. Furthermore, non-operating expenses are expected to increase compared withthe eleventh fiscal period (fiscal period ended October 31, 2010) due to such factors as the increase ininterest expenses on borrowings of ¥9,500 million newly undertaken in November and December
2010.

Debt Financing and Investment
Corporation Bonds• The balance of the borrowings and the investment corporation bonds as of December 13, 2010 are¥100,067 million and ¥12,000 million, respectively.
• Of the borrowings as of December 13, 2010, ¥22,351.5 million (short-term borrowings: ¥3,800
million and long-term borrowings: ¥18,551.5 million) in borrowings are due during the twelfth fiscal
period. However, all borrowings are presupposed to be refinanced excluding ¥301.5 million of thepartial payment.

Investment Units Issued andOutstanding• The number of investment units issued and outstanding as of December 13, 2010 is 233,550 units.
Forecasts are based on the assumption that the number of investment units issued and outstanding
shall remain unchanged for the twelfth fiscal period.

Distributions per Unit

• Distributions per unit are calculated in accordance with the distribution policy outlined in theInvestment Corporation’s Articles of Incorporation.
Forecasts are based on the assumption that the reserve for reduction entry in the amount of ¥65
million in internal reserves in the eleventh fiscal period (fiscal period ended October 31, 2010)
pursuant to the “Special Provisions for Taxation in the Event of Advance Acquisition of Land, etc. in2009 and 2010” (Article 66-2 of the Special Taxation Measures Law) will be reversed and theamount distributed.
• Actual distributions per unit may differ significantly from forecasted figures due to a variety ofreasons including movements in investment assets, rental revenues impacted by tenant movements or
the incidence of major unforeseen renovation expense.

Distributions in Excess of
Earnings per Unit
Other

• The Investment Corporation does not currently anticipate distributions in excess of earnings per unit.
• Forecasts are based on the assumption that any revisions to regulatory requirements, taxation,accounting standards, public listing regulations or requirements of the Investment Trusts Association,
Japan will not impact forecast figures.
• Forecasts are based on the assumption that there will be no major unforeseen changes to economic
trends and in real estate and other markets.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

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

Eleventh Fiscal Period(As of April 30, 2010)(As of October 31, 2010)ASSETS
Current assets
Cash and deposits *3

7,299,121

10,416,712

Cash and deposits in trust *3

5,998,669

5,828,961

Accounts receivable-trade151,362

208,479

Prepaid expenses

67,532

66,530Consumption taxes receivable

48,308-Other

15,607

8,187

13,580,602

16,528,870

14,695,921

14,743,175

Accumulated depreciation- 1,192,499- 1,439,687

Buildings, net

13,503,421

13,303,487

18,886

19,086

Accumulated depreciation- 3,717- 4,379

Structures, net

15,16914,707341,317341,632

Accumulated depreciation- 48,923- 60,538

Machinery and equipment, net

292,394

281,094

Tools, furniture and fixtures

69,56775,740

Accumulated depreciation- 11,065- 14,341

58,502

61,39929,104,205

29,104,205

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings

Structures

Machinery and equipment

Tools, furniture and fixtures, net
Land
Buildings in trust

66,052,389

65,118,690

Accumulated depreciation- 8,312,165- 9,200,374

Buildings in trust, net

57,740,224

55,918,316

Structures in trust

191,517

186,595

Accumulated depreciation- 64,313- 69,189

Structures in trust, net

127,203

117,406

Machinery and equipment in trust

923,150

934,428

Accumulated depreciation- 350,844- 391,706

572,306

542,721

Machinery and equipment in trust, net
Tools, furniture and fixtures in trust

271,202

290,955

Accumulated depreciation- 125,468- 138,638

145,733

152,316

Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment *3

135,358,591

133,943,076

236,917,754

233,438,730

285,350

285,350

1,145

1,027

286,495

286,377

11,652

11,652Intangible assets
Leasehold right
Right of using water facilities in trust *3
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses

694,220752,924

Total investments and other assets

705,872

764,576

237,910,122

234,489,684

Total noncurrent assets-17-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Deferred assets
Investment corporation bond issuance costs

33,86527,987

Investment unit issuance expenses

41,89333,514

Total deffered assets

75,75861,502

251,566,484

251,080,057

Total assets(Thousands of Yen)
Tenth Fiscal Period

Eleventh Fiscal Period(As of April 30, 2010)(As of October 31, 2010)

Accounts payable

377,030

499,242

Short-term loans payable*3

8,800,000

6,300,000

Current portion of long-term loans payable *2 *3

Liabilities
Current Liabilities

28,250,000

35,250,000

Accounts payable-other172,263

212,243

Accrued expenses

148,773

155,398

639

632

Income taxes payable
Accured consumption taxes

17,330282,121

Advances received

1,245,402

1,166,896

Deposits received

17,053

7,158

Derivatives liabilities

12,5207,420

Total current liabilities

39,041,014

43,881,112

Noncurrent liabilities
Investment corporation bond

12,000,000

12,000,000

Long-term loans payable *3

53,918,500

49,017,000

Tenant leasehold and security deposits

1,593,089

1,547,030

Tenant leasehold and security deposits in trust

9,324,241

8,902,539

Total noncurrent liabilities

76,835,830

71,466,569

115,876,845

115,347,682

133,129,755

133,129,755

Unappropriated retained earnings(undisposed loss)

2,567,479

2,607,121

Total surplus

2,567,479

2,607,121

135,697,235

135,736,876

Deferred gains or losses on hedges- 7,596- 4,502

Total valuation and translation adjustments- 7,596- 4,502

Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus

Total unitholders' equity
Valuation and translation adjustments

Total net assets *1
Total liabilities and net assets-18-

135,689,639

135,732,374

251,566,484

251,080,057

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

Eleventh Fiscal Period

November 1, 2009 to April 30, 2010

May 1, 2010 to October 31, 2010

Operating revenue
Rent revenue-real estate *1

7,150,115

7,159,361

Other lease business revenue *1

917,332

1,082,839-

116,396

8,067,447

8,358,596

3,714,417

3,817,751

Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business *1
Loss on sales of real estate properties *2-

64,348Asset management fee

433,914458,033

Directors' compensation

5,400

5,400

Asset custody fee

23,86024,851

Administrative service fees

53,36855,209Audit fee

10,80010,800

Other operating expenses

87,33086,547

Total operating expenses

4,329,092

4,522,943

3,738,355

3,835,653

Interest income

10,865

1,916

Dividends and redemption-prescription

2,638

346

Other

1,616

1,812

Total non-operating income

15,121

4,075

Interest expenses

818,702879,628

Interest expenses on investment corporation bonds

113,378

114,321

Borrowing related expenses

210,090

211,796

Operating income
Non-operating income

Non-operating expenses

Amortization of investment corporation bond issuance costs

5,781

5,877

Amortization of investment unit issuance expenses

32,062

8,378

Amortization of business commencement expenses

5,089

-

-

11,671

1,185,105

1,231,673

Ordinary income

2,568,370

2,608,055

Income before income taxes

Other
Total non-operating expenses

2,568,370

2,608,055

Income taxes-current

884

826

Income taxes-deferred

55

171

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

-19-

939

998

2,567,430

2,607,056

48

64

2,567,479

2,607,121

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

Eleventh Fiscal Period

November 1, 2009 to April 30, 2010

May 1, 2010 to October 31, 2010

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

124,973,750

133,129,755

Issuance of new investment units

8,156,005-

Total changes of items during the period

8,156,005-

133,129,755

133,129,755

2,102,248

2,567,479

Changes of items during the period

Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the end of previous period
Changes of itemes during the period- 2,102,200- 2,567,415

Net income

2,567,430

2,607,056

Total changes of items during the period

465,230

39,641

2,567,479

2,607,121

127,075,999

135,697,235

Distribution from surplus

Balance at the end of current period

Total unitholders' equity
Balance at the end of previous period
Changes of items during the period
Issuance of new investment units

8,156,005-- 2,102,200- 2,567,415

Net income

2,567,430

2,607,056

Total changes of items during the period

8,621,235

39,641

135,697,235

135,736,876- 8,830- 7,596

1,234

3,093

Distribution from surplus

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
Net change of items other than owners' equity
Total changes of itemes during the period
Balance at the end of current period

1,234

3,093

- 7,596- 4,502- 8,830- 7,596

1,234

3,093

Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net change of items other than owners' equity
Total changes of items during the period
Balance at the end of current period

1,234

3,093

- 7,596- 4,502

127,067,169

135,689,639

Total net assets
Balance at the end of previous period
Changes of items during the period
Issuance of new investment units
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-20-

8,156,005-- 2,102,200- 2,567,415

2,567,430

2,607,056

1,234

3,093

8,622,470

42,735

135,689,639

135,732,374

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

Tenth Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

I. Retained earnings at the end of period

2,567,479,697

2,607,121,406

II. Total Distribution

2,567,415,150

2,541,257,550(10,993)(10,881)(Distribution per Unit)
III. Voluntary retained earnings

65,795,848

Provision for reserve for reduction entry
64,54768,008In accordance with the policy depicted in

In accordance with the policy depicted in

Article 35-1 of its Articles of Incorporation,

Article 35-1 of its Articles of Incorporation,

the Investment Corporation determines that

the Investment Corporation determines thatthe amount of distribution shall exceed thethe amount of distribution shall exceed theamount equivalent to 90% of its distributableamount equivalent to 90% of its distributableprofit as stipulated in Article 67-15 of the

profit as stipulated in Article 67-15 of theSpecial Taxation Measures Law, and shall beSpecial Taxation Measures Law, and shall be

up to the amount of its profits as the ceiling.

up to the amount of its profits as the ceiling.

Following this policy, the Investment

Following this policy, the Investment

Corporation has decided to distribute the

Corporation has decided that, of the amountmaximum amount of retained earnings at theremaining after the reserve for reduction

period-end, namely totaling ¥2,567,415,150

entry as stipulated in Article 66-2 of theto 233,550 units issued and outstanding.

Special Taxation Measures Law is deducted

IV. Retained Earnings bring to next period
Method of calculating the distribution amount

Procedures for the distribution of amounts

from unappropriated retained earnings, it

exceeding distributable income are outlined

shall distribute the maximum amount ofin

Investment

retained earnings at the period-end, namely

Corporation’s Articles of Incorporation. In its

totaling ¥2,541,257,550 to 233,550 units

fiscal period under review, the Investment

issued and outstanding.

Article

35-2

of

the

Procedures for the distribution of amounts

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

exceeding distributable income are outlinedin

Article

35-2

of

the

Investment

Corporation’s Articles of Incorporation. In its
fiscal period under review, the Investment
Corporation has decided not to distributecash in excess of distributable profit.

-21-

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

Eleventh Fiscal Period

November 1, 2009 to April 30, 2010

May 1, 2010 to October 31, 2010

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

2,568,370

2,608,055

Depreciation and amortization

1,477,409

1,440,311

Amortization of long-term prepaid expenses

152,340

191,122

Interest income- 10,865- 1,916

Interest expenses

932,080

993,950

Amortization of deferred organization expenses

5,089

-

Amortization of investment unit issuance expenses

32,062

8,378

Amortization of investment corporation bond issuance expenses

5,781

5,877

Decrease (increase) in accounts receivable-trade

32,705- 57,116

Decrease (increase) in consumption taxes refund receivable

87,75648,308Decrease (increase) in prepaid expenses

15,240- 14,437

Increase (decrease) in accounts payable

2,259

37,913

Increase (decrease) in accounts payable-other- 7,040

35,586

Increase (decrease) in accrued consumption taxes- 30,679

264,790

Increase (decrease) in advances received

111,665- 78,506

Increase (decrease) in deposits received

1,948- 9,894

Loss on retirement of noncurrent assets

12,5371,143-

2,406,185- 342,735- 234,386- 5,950

4,702

5,039,976

7,650,069

Interest income received

10,865

1,916Interest expenses paid

- 905,953- 987,325

- 752

- 639

4,144,136

6,664,020- 79,864- 55,081- 16,161,537- 311,836

Changes in net property, plant and equipment held in trust from sale
Decrease (increase) in long-term prepaid expenses
Other, net
Subtotal

Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from collection of lease and guarantee deposits

330-

Payments of tenant leasehold and security deposits- 110,816- 108,141

Proceeds from tenant leasehold and security deposits

80,32373,207- 553,653- 611,265

Proceeds from tenant leasehold and security deposits in trust

1,356,119

263,920

Payments of bank deposits in trust

1,000,000-

Payments of restricted bank deposits in trust- 165,814- 13,667

Proceeds from restricted bank deposits in trust

66,354

146,977- 14,568,558- 615,886

Increase in short-term loans payable

3,800,000

2,500,000

Decrease in short-term loans payable- 5,000,000- 5,000,000

Proceeds from long-term loans payable

11,700,000

12,400,000

Repayment of long-term loans payable- 4,751,500- 10,301,500

8,105,732-- 2,101,909- 2,565,441

Payments of tenant leasehold and security deposits in trust

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

Proceeds from issuance of investment units
Dividends paid

-22-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Net cash provided by (used in) financing activities

11,752,323- 2,966,941

Net increase (decrease) in cash and cash equivalents

1,327,900

3,081,192

Cash and cash equivalents at beginning of period

10,957,955

12,285,856

12,285,856

15,367,049

Cash and cash equivalents at end of period

*

-23-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(6) Notes【Going Concern】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

None

Same applies as left.

【Important Accounting Standards】

1. Depreciation of fixed assets

Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)(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)(2) Intangible assets (includes trust assets)

The straight-line method is applied.

Same applies as left.

Right of using water facilities: 6 years(3) Long-term prepaid expenses
The straight-line method is applied.
2. Accounting policies for deferredassets(3) Long-term prepaid expenses
Same applies as left.

(1) Deferred organization expenses
Organization costs are amortized over a period of 5 years.
(2) Investment unit issuance costs(1) Investment unit issuance costs

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

Unit issuance costs are amortized over a period of 3

The spread method, in which the securities underwriters

years.

underwrite the unit at the underwritten price and offer them toinvestors at the issue price, and was used for the primaryoffering of new investment units conducted on November
16, 2009.
Under the spread method, the difference between the issue
price and the underwritten price represents the underwriting
commission received by the securities underwriters,
eliminating the need for the issuer to pay underwriting
commissions.
In connection with the primary offering of new investment
units conducted on November 16, 2009, the total aggregate
difference between the issue price and the underwritten pricewas ¥305,305 thousand. This expense would have beenaccounted as new unit issuance costs if the conventional
method had been used in which the underwriters offer new
units to the public at the underwritten price.
Therefore, the spread method understated unit issuance costsby ¥254,420 thousand on the balance sheet and decreased
amortization of unit issuance costs by ¥50,884 thousand andincreased income before income taxes by the same amountcompared to the conventional method.

-24-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)(3) Investment corporation bond issuance costs
Bond issuance costs are amortized by applying the(2) Investment corporation bond issuance costs
Same applies as left.

straight-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

Property-related taxes including property taxes and city

planning taxes, etc. are imposed on properties on a calendar

planning taxes, etc. are imposed on properties on ayear basis. These taxes are generally charged to rental

calendar year basis. These taxes are generally charged

expenses for the period, for which the payment was madeto rental expenses for the period, for the portion of suchduring the said period.

taxes corresponding to said period.

In connection with the acquisition of real estate including

In connection with the acquisition of real estate

trust beneficiary interests in real estate during the fiscal

including trust beneficiary interests in real estate during

period under review, the Investment Corporation included

the fiscal period under review, the Investment

its pro rata property portion for the year in each property

Corporation included its pro rata property portion for

acquisition price and not as rental expense. The amount of

the year in each property acquisition price and not as

property taxes included in acquisition prices for the fiscal

rental expense. The amount of property taxes included

period under review amounted to ¥5,536 thousand.

in acquisition prices for the fiscal period under review
amounted to ¥52,547 thousand.

4. Accounting for hedges(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 swap

Same applies as left.

transactions.
Risks hedged

Risks hedged

Interest rates on debt.

Same applies as left.

(3) Hedging policy
The Investment Corporation enters into derivative(3) Hedging policy

transactions based on its risk management policies with theSame applies as left.

objective of hedging risks in accordance with its Articles ofIncorporation.
(4) Method of evaluating the effectiveness of hedging
During the period from the commencement of hedging to(4) Method of evaluating the effectiveness of hedging

the point at which effectiveness is assessed, the Investment

Same applies as left.

Corporation compares the cumulative total of market
changes in the targeted objects of hedging or cash flowchanges with the cumulative total of market changes in thehedging instruments or cash flow changes. The Investment
Corporation then makes a decision based on the changes
and other factors of the two.
However, the interest-rate swap agreements that meet thecriteria for special treatment, the evaluation of effectivenessare omitted.

-25-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

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 thatcash flows

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 real

(1) Accounting method for trust beneficiary interests

policies utilized in the preparation

estate and other assets

in real estate and other assetsof financial statements

The assets and liabilities as well as revenues and expenses

Same applies as left.

of financial assets held in the form of trust beneficiaryinterests in real estate and other assets are recorded in full in
the Investment Corporation’s balance sheets and statements
of income.
Important line items included in accounting for financial
assets in the Investment Corporation’s balance sheet are as
follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery andequipment in trust, tools, furniture and fixtures in trust,and land 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.

-26-

Same applies as left.

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Changes in Accounting Policy】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)①Accounting Standard for Asset Retirement Obligations
From the fiscal period under review, the Investment Corporation has applied“Accounting Standard for Asset Retirement Obligations” (Accounting Standards
Board of Japan (ASBJ) Statement No. 18; March 31, 2008) and “Guidance on
Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21;
March 31, 2008). This does not impact profit/loss.
②Accounting Method for Property Tax
Under the accounting method adopted for property-related taxes, including
property taxes, city planning taxes and depreciable property taxes, for owned realestate, of the assessment and decision tax amount, the amount of taxes to be paid in
the fiscal period under review used to be charged to rental expenses (expenses
related to rent business). As of the fiscal period under review, the Investment
Corporation changed the accounting method to one under which, of theassessment and decision tax amount, the amount of taxes corresponding to thefiscal period under review is charged to rental expenses (expenses related to rent
business).
The recent increase in real estate and other acquisitions has increased the financial
significance of the amount of property taxes, etc. charged to expenses. The changein accounting method is thus being made to more appropriately allocate expenses
because the described circumstances are expected to persist.
As a result, compared to the accounting method adopted prior to the change,
operating expenses increase by ¥67,895 thousand and operating income, ordinary
income and net income each decrease by said amount.

-27-

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

Tenth Fiscal Period

Eleventh Fiscal Period(April 30, 2010)(October 31, 2010)*1. Minimum unitholders’ equity pursuant to Article
67-4 of the Law Concerning Investment Trusts*1. Minimum unitholders’ equity pursuant to Article¥50,000

67-4 of the Law Concerning Investment Trusts

and Investment Corporations Law¥50,000

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. (Note)institutions. (Note)

Total credit facility

2,000,000

Total credit facility

2,000,000

Drawn credit facility

2,000,000

Drawn credit facility

2,000,000

Balance of Undrawn credit facility－

Balance of Undrawn credit facility

－

Note:

Note:

The commitment period of the commitment line agreement (total commitment

The commitment period of the commitment line agreement (totalline amount ¥2,000,000 thousand) concluded with The Bank ofcommitment line amount ¥2,000,000 thousand) concluded with The Bank ofTokyo-Mitsubishi UFJ, Ltd. has already expired. Furthermore, the expiration

Tokyo-Mitsubishi UFJ, Ltd. has already expired. Furthermore, the expiration

date of the commitment line agreement is March 31, 2011, set in thedate of the commitment line agreement is March 31, 2011, set in thememorandum of understanding executed on September 26, 2008. However,memorandum of understanding executed on September 26, 2008. However,since the commitment period has already expired, the Investment Corporation

since the commitment period has already expired, the Investment Corporation

can not undertake new borrowings.

can not undertake new borrowings.

*3. Assets pledged as collateral and secured loans payable*3. Assets pledged as collateral and secured loans payable

Assets pledged as collateral

Assets pledged as collateral

Cash and deposits

390,000

Cash and deposits

390,000

Cash and deposits in trust

4,823,604

Cash and deposits in trust

4,694,003

Buildings

7,149,192

Buildings

7,040,275

Structures

2,379

Structures

2,288

Machinery and equipment

13,808

Machinery and equipment

12,1605,544

Tools, furniture and fixtures

Tools, furniture and fixtures

7,891

Land

12,547,562

Land

12,547,562

Buildings in trust

44,265,941

Buildings in trust

43,638,595

Structures in trust

96,540

Structures in trust

91,714

Machinery and equipment in trust

530,278

Machinery and equipment in trust

506,717

Tools, furniture and fixtures in trust

116,435

Tools, furniture and fixtures in trust

124,371

Land in trust

104,962,407

Right of using water facilities in trust
Total

1,145

Land in trust
Total

174,904,840

Secured loans payable

104,993,667

Right of using water facilities in trust

1,027
174,050,274

Secured loans payable

Short-term loans payable

8,800,000

Short-term loans payable

Current portion of long-term loans payable

28,250,000

Current portion of long-term loans payable

35,250,000

Long-term loans payable

53,918,500

Long-term loans payable

49,017,000

Total

90,968,500-28-

6,300,000

Total

90,567,000

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Statements of Income】
Tenth Fiscal Period(Thousands of Yen)
Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)*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

5,882,594

Leasing income

5,861,093

Common area charges

1,267,520

Common area charges

1,298,267

Total

7,150,115

Total

7,159,361

OthersOthersParking space rental revenues

243,319

Parking space rental revenues

242,536

Utility charge reimbursement
Miscellaneous

560,259

Utility charge reimbursement

742,082

113,754

Miscellaneous

98,219Subtotal

917,332

Subtotal

1,082,839

Total rental and operating revenues

8,067,447

Total rental and operating revenues

8,242,200

B. Rental and other operating expenses

B. Rental and other operating expenses

Rental expenses

Rental expenses

Property management fees and facility management fees

801,876

Property management fees and facility management fees

804,754

Utilities

508,338

Utilities

634,220

Taxes

648,231Taxes

648,652

Repairs and maintenance costs

110,725

Repairs and maintenance costs

149,673

Insurance

16,758Insurance

16,134

Trust fees

41,579Trust fees

41,817

Others96,961Others81,042

Depreciation

1,477,409

Depreciation

1,440,311

Loss on retirement of fixed assets

12,537

Loss on retirement of fixed assets

1,143

Total property-related expenses

3,714,417

Total property-related expenses

3,817,751

C. Rental business profit (A – B)

4,353,030

C. Rental business profit (A – B)

4,424,448*2. Gain and Loss on sale of real estate①KDX Shinjuku-Gyoen Building
Revenue from sale of the investment property

1,710,000

Costs of the investment property

1,569,750

Other sales’ expenses

23,852Gain on sale of real estate

116,396②Court Shin-Okachimachi-29-

Revenue from sale of the investment property

790,000

Costs of the investment property

836,434

Other sales’ expenses

17,914

Loss on sale of real estate

64,348KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Statements of Changes in Unitholders’ Equity】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

Total number of authorized investment units and total number ofinvestment units issued and outstanding・Total number of authorized investment units

2,000,000 units

2,000,000 units

・Total number of investment units issued and outstanding

233,550 units

233,550 units【Notes to the Statements of Cash Flow】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)*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.

period in the cash flows statements.

(As of April 30, 2010)(Thousands of Yen)

(As of October 31, 2010)(Thousands of Yen)

Cash and bank deposits

7,299,121

Cash and bank deposits

10,416,712

Cash and deposits in trust

5,998,669

Cash and deposits in trust

5,828,961

Restricted bank deposits held in trust (Note 1)- 621,934

Restricted bank deposits held in trust (Note 1)- 488,624

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

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

Cash and cash equivalents

12,285,856

Cash and cash equivalents

15,367,049

Note 1: Restricted bank deposits held in trust are retained for repayment ofNote 1: Restricted bank deposits held in trust are retained for repayment of
tenant leasehold 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

Note 2: More than 3 months fixed deposits are fixed deposit which has
deposit term of more than 3 months.

term of more than 3 months.
【Notes to the Lease Transactions】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)
Operating lease transactions(May 1, 2010 to October 31, 2010)(Thousands of Yen)

Operating lease transactions(Lessor)(Lessor)

Unearned lease payments

Unearned lease payments(Thousands of Yen)

Due within one year

1,285,413

Due within one year

1,178,139

Due after one year

7,940,846

Due after one year

7,068,297

Total

9,226,259

Total

8,246,436-30-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Financial Instruments】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)
1. Items with Regard to the current status of Financial Instruments(1) Action Policy with Regard to Financial Instruments(May 1, 2010 to October 31, 2010)
1. Items with Regard to the current status of Financial Instruments(1) Action Policy with Regard to Financial Instruments

The Investment Corporation procures essential funds for acquiring properties

Same applies as left.

and undertaking the repayment of loans primarily through bank loans and theissuance of corporate bonds and new investment accounts. The Investment
Corporation makes use of derivative instruments primarily as a risk hedge
against interest rate fluctuations and to lessen interest rate payments. In
addition, it is company policy to not conduct speculative derivativetransactions. Management of surplus funds is undertaken in a prudent mannerthat considers fully such factors as safety, liquidity, interest rate conditions andcash flows.
(2) Financial Instruments and Respective Risks
Loans and investment corporation bonds are used primarily for procuring(2) Financial Instruments and Respective Risks
Loans and investment corporation bonds are used primarily for procuring

funds necessary for the acquisition of properties and have a redemption date offunds necessary for the acquisition of properties and have a redemption date ofa maximum of seven years following the accounting date. Although a certain

a maximum of six years following the accounting date. Although a certain

portion of said liabilities are subject to interest rate fluctuation risks, theportion of said liabilities are subject to interest rate fluctuation risks, theInvestment Corporation utilizes derivative instruments (interest rate swap

Investment Corporation utilizes derivative instruments (interest rate swap

transactions) in order to hedge against such risks.

transactions) in order to hedge against such risks.

Derivative instruments are interest rate swap transactions that are used toSame applies as left.

hedge against interest rate fluctuation risks. Utilizing interest rate swap
transactions, the Investment Corporation fixed its interest payments for funds
procured on a floating interest rate basis. With regard to hedge accounting
methods, hedging instruments and hedged items, hedge policy, and themethod of evaluation of hedge effectiveness, please see 4. Hedge Accounting
Method in notes concerning Important Accounting Standards.
(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations inInterest Rates and Others)

Interest Rates and Others)

Same applies as left.

The Investment Corporation uses interest rate swap transactions in orderto minimize risks associated with interest payment rate fluctuations on
funds procured.

B. Management of Liquidity Risk (Risk of Defaulting on Payments by theB. Management of Liquidity Risk (Risk of Defaulting on Payments by the
Due Date) Associated with Funds Procurement

Due Date) Associated with Funds Procurement

Although loans and other liabilities are subject to liquidity risks, theSame applies as left.

Investment Corporation reduces such risks 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) Supplemental Explanation of Items with Regard to Fair Value of Financial
Instruments
Included in the fair value of financial products are market prices, or, in the(4) Supplemental Explanation of Items with Regard to Fair Value of Financial
Instruments
Same applies as left.

event market prices are not available, prices that are calculated on a rational
basis. Because the factors incorporated into the calculation of these prices are
subject to change, differing assumptions are adopted which may alter fairvalue.

-31-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

2. Items with Regard to Fair Value of Financial Instruments

2. Items with Regard to Fair Value of Financial Instruments

The book value per the balance sheet, fair values, as well as their difference as

The book value per the balance sheet, fair values, as well as their difference asof April 30, 2010 are as follows.

of October 31, 2010 are as follows.

(1) Cash and deposits(2) Cash and deposits in trust
Total assets(1) Short-term loans payable(2) Investment corporation
bonds(3) Long-term loans payable
Total liabilities
Derivative Transaction
Items that are not applied tohedge accounting
Items that are applied to hedge
accounting
Total derivative transactions

Book Value(Thousandsof Yen)7,299,121
5,998,669
13,297,791
8,800,000

Fair Value(Thousandsof Yen)7,299,121
5,998,669
13,297,791
8,800,000

Difference(Thousandsof Yen)-12,000,000

11,415,600- 584,400

82,168,500
102,968,500

81,417,950
101,633,550- 750,550- 1,334,950

-

-

-

- 12,520- 12,520-- 12,520- 12,520-(1) Cash and deposits(2) Cash and deposits in trust
Total assets(1) Short-term loans payable(2) Investment corporation
bonds(3) Long-term loans payable
Total liabilities
Derivative Transaction
Items that are not applied tohedge accounting
Items that are applied tohedge accounting
Total derivative transactions

Book Value(Thousands ofYen)
10,416,712
5,828,961
16,245,673
6,300,000
12,000,000

Fair Value(Thousandsof Yen)10,416,712
5,828,961
16,245,673
6,300,000
11,700,300

Difference(Thousandsof Yen)- 299,700

84,267,000
102,567,000

83,766,880
101,767,180- 500,120- 799,820---- 7,420- 7,420-- 7,420- 7,420-

Note 1: Items with regard to the calculation method of financial instrument fair

Note 1: Items with regard to the calculation method of financial instrument

value together with investment securities and derivative transactions

fair value together with investment securities and derivative transactions

AssetsAssets(1) Cash and deposits, cash and deposits in trust(1) Cash and deposits, cash and deposits in trust

Because these are settled in the short-term, the fair value can be considered as

Because these are settled in the short-term, the fair value can be considered as

equivalent to the book value; therefore, the book value is used to determine

equivalent to the book value; therefore, the book value is used to determine

fair value.

fair value.

Liabilities

Liabilities(1) Short-term loans payable(1) Short-term loans payable

Because these are settled in the short-term, the fair value can be considered as

Because these are settled in the short-term, the fair value can be considered as

equivalent to the book value; therefore, the book value is used to determine

equivalent to the book value; therefore, the book value is used to determine

fair value.

fair value.

(2) Investment corporation bonds(2) Investment corporation bonds

The fair value of Investment corporation bonds is based on market prices

The fair value of Investment corporation bonds is based on market prices(3) Long-term loans payable(3) Long-term loans payable

The fair value of long-term borrowings is calculated based on the present value The fair value of long-term borrowings is calculated based on the present valuethat discounts the total amount of principal and interest by using the estimatedthat discounts the total amount of principal and interest by using the estimatedinterest rate in the event that the Investment Corporation conducts newinterest rate in the event that the Investment Corporation conducts new

borrowings of the same type. Among interest rate fluctuations on long-termborrowings of the same type. Among interest rate fluctuations on long-termborrowings, said borrowings—which are subject to fixed interest rates resulting borrowings, said borrowings—which are subject to fixed interest rates resulting
from interest rate swaps and special treatment applied to said swaps—are

from interest rate swaps and special treatment applied to said swaps—are

calculated by discounting the total amount of principal and interest, which is

calculated by discounting the total amount of principal and interest, which ishandled together with applicable interest rate swaps, by the rationally estimated handled together with applicable interest rate swaps, by the rationally estimatedinterest rate in the case that the same type of borrowings are undertaken.

interest rate in the case that the same type of borrowings are undertaken.

Derivative Transaction

Derivative Transaction

Please refer to the aforementioned “Derivative Transaction.”

Same applies as left.

-32-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)
Note 2: Amount of redemption of monetary claims

Cash and deposits
Cash and deposits in trust
Total(May 1, 2010 to October 31, 2010)
Note 2: Amount of redemption of monetary claims

Less than or equal to 1 year
(Thousands of Yen)
7,299,121
5,998,669
13,297,791

Cash and deposits
Cash and deposits in trust
Total

Note 3: Investment corporation bonds, repayment of loans, planned
repayment amount
Short-term loans payable
Investment corporationbonds
Long-term loans payable

Short-term loans payable
Investment corporationbonds
Long-term loans payable

Less than or
Equal to 1 yr.
8,800,000

1-2 yrs.

--

9,000,000-

28,250,000

25,980,000

8,460,000

3-4 yrs.

4-5 yrs.
-

Note 3: Investment corporation bonds, repayment of loans, planned repayment
amount2-3 yrs.
-

Short-term loans payable
Investment corporationbonds
Long-term loans payable

More than 5
yrs.
-

-

-

-

3,000,000

5,940,000

8,538,500

5,000,000

Less than or equal to 1 year
(Thousands of Yen)
10,416,712
5,828,961
16,245,673

Short-term loans payable
Investment corporationbonds
Long-term loans payable

Less than or
Equal to 1 yr.
6,300,000

1-2 yrs.

-

9,000,000-

15,410,000

12,880,000

3-4 yrs.

4-5 yrs.

More than 5
yrs.

-

-

-

-

-

3,000,000

7,400,000

8,327,000

5,000,000

From the fiscal period under review, the Investment Corporation has applied“Revised Accounting Standard for Financial Instruments” (The AccountingStandards Board of Japan [ASBJ] No. 10, March 10, 2008) and “Guidance on
Disclosures about Fair Value of Financial Instruments” (The AccountingStandards Board of Japan [ASBJ] No. 19, March 10, 2008).

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

The Investment Corporation has not undertaken transactions in marketable

Same applies as left.

securities. Accordingly, there is no information to report.

-33-

-

35,250,000(Additional Information)【Notes to the Marketable Securities】
Tenth Fiscal Period

2-3 yrs.
-

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

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)(1) Items that are not applied to hedge accounting
Not applicable(1) Items that are not applied to hedge accounting(2) Items that are applied to hedge accounting(2) Items that are applied to hedge accounting

Hedge accounting
methodAccounting method, inprinciple
Special treatment ofinterest rate swaps

Hedge accounting
methodSame applies as left.

Hedge accounting
methodType of Derivative Transactions Main target risk hedge
Interest-rate swap transaction
Fixed rate payable
Floating rate receivable
Interest-rate swap transaction
Fixed rate payable
Floating rate receivable
Contracted amount(Thousands of Yen)
More than 1 yr.

Accounting
method, in
1,500,000
principle
Special treatment
of interest rate
23,500,000
swaps
Total
25,000,000

Type of Derivative Transactions Main target risk hedge

Long-term loans
payableAccounting method, inprinciple

Long-term loans
payableSpecial treatment ofinterest rate swaps

Fair value Calculation method(Thousands for applicable fairvalue
of Yen)Hedge accounting
method-- 12,520

9,000,000*2

9,000,000- 12,520

Accounting
method, inprinciple
Special treatment
of interest rate
swaps
Total

*1

*1 In accordance with the amount provided by counterparty financial institutions.
*2 Special treatment of interest rate swaps is reported at the fair value of applicablelong-term loans payable. This is because such swaps are handled together withhedged long-term loans payable.

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

Long-term loans
payableLong-term loans
payableContracted amount
Fair value Calculation method(Thousands of Yen)
(Thousands for applicable fairof Yen)value
More than 1 yr.
1,500,000-

14,000,000

4,500,000- 7,420*1*2
15,500,000

4,500,000- 7,420*1 In accordance with the amount provided by counterparty financial institutions.
*2 Special treatment of interest rate swaps is reported at the fair value of applicablelong-term loans payable. This is because such swaps are handled together withhedged long-term loans payable.

【Notes to the Retirement Payment】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

The Investment Corporation does not maintain a retirement payment system.

Same applies as left.

Accordingly, there is no information to report.
【Asset Retirement Obligations】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)
Not applicable-34-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Segment and Related Information】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)
1. Segment Information
Disclosure is omitted because the real estate leasing business is theInvestment Corporation’s sole business and it has no reportable segment
subject to disclosure.
2. Related Information(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single
product/service category account for over 90% of the operating revenue on
the statement of income.
(2) Information about each geographic area
A. Net sales
Disclosure is omitted because net sales to external customers in Japanaccount for over 90% of the operating revenue on the statement of income.
B. Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment
located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer
account for less than 10% of the operating revenue on the statement ofincome.
(Additional Information)
From the fiscal period under review, the Investment Corporation has
applied “Accounting Standard for Disclosures about Segments of anEnterprise and Related Information” (ASBJ Statement No. 17; March 27,2009) and “Guidance on Accounting Standard for Disclosures about
Segments of an Enterprise and Related Information” (ASBJ Guidance No.
20; March 21, 2008).
Disclosure of segment information for the previous fiscal period in
accordance with the Accounting Standard, etc. is omitted because the realestate leasing business is the Investment Corporation’s only segment.

-35-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Tax-Effect Accounting】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

1.Principal deferred tax assets and liabilities(Thousands of Yen)

1.Principal deferred tax assets and liabilities(Deferred tax assets)(Thousands of Yen)

(Deferred tax assets)

Enterprise tax payable not included in expenses

13Enterprise tax payable not included in expenses

10

Bad debts loss

169

Unrealized loss from deferred hedge transactions

2,918

Unrealized loss from deferred hedge transactions

4,924

Total deferred tax assets

income tax rate and the effective tax rate

2,929

5,106

2. Significant difference between statutory
Statutory tax rate

Total deferred tax assets

2. Significant difference between statutory
(%)
39.33

(Adjustments)

income tax rate and the effective tax rate
Statutory tax rate

(%)
39.33

(Adjustments)

Deductible cash distributions

Deductible cash distributions- 38.32

Others- 39.32
0.03

Others- 0.97

Effective tax rate

0.04

Effective tax rate

0.04

【Equity-Method Income and Retained Earnings】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

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

-36-

Same applies as left.

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Related-Party Transactions】
Tenth Fiscal Period (November 1, 2009 to April 30, 2010)
1．Parent Company, corporate shareholders and other:None

2. Affiliated companies and other: None
3. Fellow subsidiary companies and other: None
4. 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

504,189

Management, Inc. (Note 3)

As above(¥Thousands)

Payment of asset management fee

Payment of business consignment
As above

Deal Amount Accounting

1,500

－

Balance of
Period End(¥Thousands)

83,405(Note 4)－(Note4)
304,894

fee to Kenedix REIT

Accounts

76,759

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 ¥70,275 thousand management fee related to the acquisition of property that count in book value for individual real estate.
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 the Investment Corporation and Kenedix REIT Management, Inc.
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. Property management fee include ¥21,206 thousand related to the acquisition of property that count inbook value for individual real estate.

Eleventh Fiscal Period (May 1, 2010 to October 31, 2010)
1．Parent Company, corporate shareholders and other:None

2. Affiliated companies and other: None
3. Fellow subsidiary companies and other: None
4．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

470,533

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

1,500

－

Balance of
Period End(¥Thousands)

84,718(Note 4)－(Note4)
304,690

Accounts

54,543

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.

-37-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
2. Asset management fee include ¥12,500 thousand sales fee related to the sale of property that count in sales expense for individual real estate.
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 the Investment Corporation and Kenedix REIT Management, Inc.
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. Property management fee include ¥11,324 thousand related to the acquisition of property that count inbook value, and ¥3,800 thousand related to the sale of properties that count in sales expense for individual real estate..

【Fair Value of Real Estate for Rental Purposes】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

The Investment Corporation owns real estate for rental purposes mainly inSame applies as left.

the Tokyo Metropolitan Area for the purpose of generating rental revenue.
The book value per balance sheet for the fiscal period under review and fairvalue concerning the above real estate for rental purposes are as follows.
Book Value (Thousands of Yen)
Fair value at the end of
Balance at the Changes during Balance at thecurrent period
end of previous
the period
end of current(Thousands of Yen)
periodperiod237,204,249- 3,479,142
233,725,107
209,597,000
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period under review is the appraisal value or thesurvey value determined by outside appraisers.
Note 3: Among changes in the amount of real estate for rental purposes that occurred
during the fiscal period under review, principal increases were the sales of realestate trust beneficiary interests to two properties totaling ¥2,406,185 thousand,and depreciation amounting to ¥1,440,311 thousand.

Book Value (Thousands of Yen)
Fair value at the end of
Balance at the Changes during Balance at thecurrent period
end of previous
the period
end of current(Thousands of Yen)
periodperiod222,449,460
14,754,789
237,204,249
214,900,000
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period under review is the appraisal value or
the survey value determined by outside appraisers.
Note 3: Among changes in the amount of real estate for rental purposes that occurred
during the fiscal period under review, principal increases were the acquisition ofreal estate trust beneficiary interests to five properties totaling ¥15,893,389
thousand, principal decreases were the retirement of one portion of assets
concerning real estate trust beneficiary interests to two properties amounting to¥12,537 thousand and depreciation amounting to ¥1,477,409 thousand..

Income and loss in the fiscal period ended October 31, 2010 for real estate for

Income and loss in the fiscal period ended April 30, 2010 for real estate forrental purposes is listed in Notes Concerning Statements of Income.

rental purposes is listed in Notes Concerning Statements of Income.
Additional Information
From the fiscal period under review, the Investment Corporation has
applied “Accounting Standard for Disclosures about Fair Value ofInvestment and Rental Property” (The Accounting Standards Board ofJapan [ASBJ] No. 20, November 28, 2008) and “Guidance on AccountingStandard for Disclosures about Fair Value of Investment and Rental
Property” (The Accounting Standards Board of Japan [ASBJ] No. 23,
November 28, 2008).

【Notes to the Information per Unit】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

Unitholders’ Equity per Unit

¥580,987

Unitholders’ Equity per Unit

¥581,170

Net Income per Unit

¥ 11,125Net Income per Unit

¥ 11,162

Net Income per Unit is calculated by dividing Net Income by the weighted

Net Income per Unit is calculated by dividing Net Income by the weighted

average (based on number of days) number of units.

average (based on number of days) number of units.

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

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

there were no residual investment units.

there were no residual investment units.

-38-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Note: The calculation for the net income per unit is as follow.
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)(May 1, 2010 to October 31, 2010)

Net Income (¥ thousand)

2,567,430

2,607,056－－

Net income for ordinary units (¥ thousand)

2,567,430

2,607,056

Average number of units during the period (unit)

230,770

233,550

Amount not vested in ordinary investors (¥ thousand）【Important Subsequent Events】
Tenth Fiscal Period

Eleventh Fiscal Period(November 1, 2009 to April 30, 2010)

Not applicable(May 1, 2010 to October 31, 2010)Same applies as left.

-39-

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
November 16, 2009

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

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)400
75,0003,970
73,6603,970
40,9002,100
33,550Unitholders’ Capital(Millions of Yen)
Increase
Balance(Decrease)400
75,40079,370153,030
157,000
197,900
200,000
233,550200
41,8682,216
42,171
2,272
34,474
1,770
8,156

200
42,06844,28586,45688,729123,203
124,973
133,129

Remarks(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)Notes:
1. The Investment Corporation was established with an offer price of ¥500,000 per unit.
2. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥580,000 per unit with an underwritten price of ¥558,250 per unit.
3. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥558,250 per unit.
4. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥593,096 per unit with an issue price of ¥572,519 per unit.
5. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥572,519 per unit.
6. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties and repayment of borrowings. The offer price was ¥873,180 per unit with an issue price of ¥842,886 per unit.
7. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties and repayment of borrowings. The issue price was ¥842,886 per unit.
8. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥252,200 per unit with an issue price of ¥243,100 per unit.

4. Transfer of the Directors
During the eleventh fiscal period (fiscal period ended October 31, 2010), there was no transfer for the Directors.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Reference Information（1）Component of Assets
Tenth Fiscal Period(As of April 30, 2010)

Type of

Type

Specified Asset

Real Estate

Office Buildings

Area

Total Amount Held

Ratio

Total Amount Held

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

Tokyo Metropolitan Area

30,62312.2

30,510

12.2

Other Regional Areas

12,635

5.0

12,5395.0

43,25917.2

43,050

17.1

Tokyo Metropolitan Area

152,17060.5

150,075

59.8

Other Regional Areas

19,1507.6

18,9507.5

171,32068.1

169,026

67.3

Tokyo Metropolitan Area

8,241

3.3

7,329

2.9

Other Regional Areas

1,876

0.7

1,875

0.7

10,117

4.0

9,204

3.7

Total for Real Estate
Office Buildings
Trust
BeneficiaryInterest in Real

Total for Office Buildings
Residential Properties

EstateTotal for Residential Properties
Central Urban Retail Properties

Eleventh Fiscal Period(As of October 31, 2010)

12,506

5.0

12,443

5.0

Total of Trust Beneficiary Interests in Real EstateTokyo Metropolitan Area

193,94577.1

190,674

75.9

Bank Deposits and Other Assets

14,362

5.7

17,354

6.9

Total Assets

251,566100.0

251,080

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), andis rounded 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.

Tenth Fiscal Period(As of April 30, 2010)
Price (Millions of Yen)
Ratio (%)
Total of Liabilities
Total Unitholders’ Equity
Total of Assets

Eleventh Fiscal Period(As of October 31, 2010)
Price (Millions of Yen)
Ratio (%)

115,876

46.1

115,34745.9

135,68953.9

135,73254.1

251,566100.0

251,080

100.0

-41-

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 Eleventh Fiscal Period

Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Amount on
Acquisition
the Balance
Price
Sheet
（Note 1）
(Note 2)

Direct Capitalization
Method(Note 3)
Value

Discounted Cash Flow Method

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
（Note5）A-60

KDX Harumi Building

10,2509,922

10,60010,7004.8

10,400

4.6

5.0

A

4.3

A-40

Toranomon Toyo Building

9,850

9,873

9,770

9,980

4.7

9,560

4.5

5.0

A

4.2

A-46

Hiei Kudan-Kita Building

7,600

7,607

7,640

7,860

4.8

7,540

4.6

5.0

B

3.2

A-66

KDX Shinjuku Building

6,800

6,880

7,010

7,130

4.6

6,890

4.5

4.9

A

2.9

A-37

KDX Ochanomizu Building

6,400

6,716

6,530

6,610

4.9

6,450

4.7

5.1

A

2.7

A-32

KDX Shiba-Daimon Building

6,090

6,262

4,840

4,860

5.2

4,820

5.0

5.4

A

2.6

A-13

KDX Kojimachi Building

5,950

5,696

4,250

4,280

4.6

4,210

4.4

4.8

A

2.5

A-1

KDX Nihonbashi 313 Building

5,940

6,175

7,170

7,360

4.9

7,090

4.7

5.1

B

2.5

A-47

KDX Shin-Yokohama 381 Building(Note 6)

5,800

5,927

4,250

4,250

5.9

4,240

5.6

6.0

A

2.4

A-16

Toshin-24 Building

5,300

5,170

4,320

4,380

5.7

4,260

5.5

5.9

A

2.2

A-2

KDX Hirakawacho Building

5,180

5,153

4,910

5,080

4.8

4,840

4.6

5.0

B

2.2

A-17

Ebisu East 438 Building

4,640

4,511

4,210

4,240

5.2

4,170

4.9

5.4

A

1.9

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,425

5,190

5,250

5.1

5,120

4.9

5.3

A

1.9

A-39

KDX Toranomon Building

4,400

4,829

3,420

3,460

4.6

3,380

4.4

4.8

A

1.8

A-30

KDX Nishi-Gotanda Building

4,200

4,119

3,640

3,670

5.2

3,610

5.1

5.5

A

1.8

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,854

3,410

3,410

6.3

3,410

5.9

6.5

A

1.6

A-4

KDX Hatchobori Building

3,680

3,385

3,380

3,390

5.1

3,370

4.9

5.3

B

1.5

A-18

KDX Omori Building

3,500

3,410

3,640

3,660

5.5

3,610

5.3

5.7

A

1.5

A-19

KDX Hamamatsucho Building

3,460

3,307

3,180

3,290

4.8

3,130

4.6

5.0

B

1.4

A-45

KDX Roppongi 228 Building

3,300

3,445

2,160

2,180

5.0

2,130

4.7

5.1

A

1.4

A-62

Koishikawa TG Building

3,080

3,165

3,240

3,270

5.2

3,210

5.0

5.4

A

1.3

A-29

KDX Higashi-Shinjuku Building

2,950

3,194

3,240

3,320

5.3

3,210

5.1

5.5

B

1.2

A-20

KDX Kayabacho Building

2,780

2,853

3,070

3,080

5.5

3,060

5.2

5.7

A

1.1

A-56

KDX Jimbocho Building

2,760

2,926

2,080

2,090

5.6

2,060

5.3

5.8

A

1.1

A-49

Nissou Dai-17 Building

2,710

2,659

1,640

1,660

5.8

1,620

5.6

6.0

A

1.1

A-21

KDX Shinbashi Building

2,690

2,662

2,790

2,800

4.7

2,770

4.3

4.9

A

1.1

A-63

Gotanda TG Building

2,620

2,714

2,570

2,590

5.5

2,550

5.2

5.6

A

1.1

A-5

KDX Nakano Sakaue Building

2,533

2,459

2,350

2,370

5.5

2,340

5.3

5.7

B

1.0

A-22

KDX Shin-Yokohama Building

2,520

2,433

2,430

2,450

6.0

2,400

5.7

6.1

A

1.0

A-6

Harajuku F.F. Building

2,450

2,456

2,860

2,890

5.8

2,830

5.6

6.0

A

1.0

A-50

Ikejiri-Oohashi Building

2,400

2,475

1,600

1,610

6.2

1,590

6.0

6.4

A

1.0

A-27

KDX Kajicho Building

2,350

2,415

2,230

2,290

5.2

2,210

5.0

5.4

B

1.0

A-51

KDX Hamacho Nakanohashi Building

2,310

2,377

1,690

1,710

5.6

1,670

5.4

5.8

A

0.9

A-15

KDX Hamacho Building

2,300

2,230

2,320

2,330

5.5

2,300

5.3

5.7

A

0.9

A-41

KDX Shinjuku 286 Building

2,300

2,344

2,050

2,070

5.3

2,020

5.1

5.5

A

0.9

A-7

FIK Minami Aoyama

2,270

2,264

2,210

2,240

5.0

2,180

4.8

5.2

A

0.9

A-14

KDX Funabashi Building

2,252

2,444

1,990

1,990

6.1

1,990

5.9

6.3

A

0.9

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,265

1,920

1,970

4.7

1,900

4.5

4.9

B

0.9

A-55

Shin-toshin Maruzen Building

2,110

2,161

1,560

1,560

5.6

1,560

5.2

5.8

A

0.9

A-64

KDX Nihonbashi 216 Building

2,010

2,003

1,990

2,020

5.0

1,950

4.9

5.3

A

0.8

-42-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Appraisal Value at the end of Eleventh Fiscal Period

Type

Area

Property Name

(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
（Note5）KDX Okachimachi Building

2,000

2,141

1,790

1,830

5.2

1,770

5.1

5.4

B

0.8

A-57

KDX Gobancho Building

1,951

2,000

1,480

1,500

5.2

1,460

5.0

5.4

A

0.8

A-8

Kanda Kihara Building

1,950

1,871

1,870

1,910

5.1

1,850

4.9

5.3

B

0.8

A-23

KDX Yotsuya Building

1,950

1,955

2,280

2,300

5.6

2,260

5.4

5.8

A

0.8

A-59

KDX Iwamoto-cho Building

1,864

1,834

1,310

1,310

5.7

1,310

5.5

5.9

A

0.7

A-26

KDX Kiba Building

1,580

1,590

1,470

1,480

6.0

1,460

5.8

6.2

A

0.6

A-38

KDX Nishi-Shinjuku Building

1,500

1,536

1,210

1,220

5.4

1,190

5.2

5.6

A

0.6

A-31

KDX Monzen-Nakacho Building

1,400

1,428

1,270

1,290

5.6

1,260

5.4

5.8

B

0.6

A-52

KDX Kanda Misaki-cho Building

1,380

1,385

980

991

5.5

969

5.3

5.7

A

0.5

A-34

KDX Hon-Atsugi Building

1,305

1,225

1,070

1,070

6.3

1,070

6.1

6.5

B

0.5

A-35

KDX Hachioji Building

1,155

1,303

821

828

5.9

818

5.7

6.1

B

0.4

A-28

KDX Nogizaka Building

1,065

1,129

829

837

5.5

820

5.3

5.7

A

0.4

A-58

KDX Nagoya Sakae Building

7,550

7,702

4,710

4,850

5.2

4,650

5.0

5.4

B

3.2

A-12

Portus Center Building

5,570

4,740

4,590

4,600

6.4

4,580

6.2

6.6

B

2.3

A-42

Karasuma Building

5,400

5,451

5,020

5,120

5.6

4,980

5.4

5.8

B

2.3

A-53

KDX Hakata-Minami Building

4,900

4,837

3,840

3,870

6.5

3,800

6.3

6.7

A

2.1

A-54

KDX Kitahama Building

2,220

2,239

1,670

1,670

6.0

1,670

5.6

6.2

A

0.9

A-44

KDX Sendai Building

2,100

2,182

1,470

1,440

6.1

1,480

6.1

6.3

B

0.9

A-24

KDX Minami Semba Dai-1 Building

1,610

1,487

1,090

1,090

5.8

1,080

5.6

6.0

A

0.6

A-25

KDX Minami Semba Dai-2 Building

1,560

1,384

1,150

1,160

5.8

1,140

5.6

6.0

A

0.6

A-36

KDX Niigata Building

1,305

1,465

868

881

7.3

854

7.1

7.5

A

0.5

Subtotal of Office Buildings (61 properties)

211,461

212,077 190,138 192,597-

188,121

-

-

90.6

OfficeBuildings

Other
Regional
Areas

Tokyo
Metropolitan
Area
Other
Regional
Areas

Tokyo
Metropolitan
Area-

B-19 Residence Charmante Tsukishima

5,353

5,110

4,480

4,500

6.1

4,450

5.4

5.8

A

2.2

B-3 Court Mejiro

1,250

1,194

950

955

5.6

945

5.4

5.8

A

0.5

B-34 Gradito Kawaguchi

1,038

1,024

959

967

5.8

950

5.6

6.0

A

0.4

B-18 Venus Hibarigaoka

1,800

1,875

1,420

1,420

7.1

1,410

6.9

7.3

A

0.7

9,441

9,204

7,809

7,842

7,755

-

-

4.0

C-1 Frame Jinnan-zaka

9,900

9,910

9,750

9,780

4.7

9,710

4.4

4.8

A

4.2

C-2 KDX Yoyogi Building

2,479

2,533

1,900

1,900

5.3

1,890

4.9

5.5

A

1.0

12,37912,443

11,65011,680-11,600

-

-

-

5.3

233,281

233,725 209,597 212,119-

207,476

-

-

-

100.0

Subtotal of Residential Properties (4 properties)
CentralUrban
RetailProperties

Direct Capitalization
MethodA-33

Tokyo
Metropolitan
Area

Residential
Properties

No.

Acquisition Amount on
the Balance
Price
Sheet
（Note 1）
(Note 2)

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

Notes:
1. Acquisition price is the purchase price for trust beneficiary interests or properties acquired by the Investment Corporation (excluding acquisition costs,
property tax, city-planning tax, and consumption tax, etc., rounded down to the nearest million yen.).
2. Figures of less than1 million are rounded down from the amounts on the balance sheet.
3. Appraisal values (end of the eleventh fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation’s Articles
of Incorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports prepared by
Japan Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd.
4. As of the fiscal period under review, appraisals of the properties are entrusted to two appraisers: Japan Real Estate Institute and Daiwa Real Estate Appraisal
Co., Ltd. In the table, the appraisers are referred to as “A” for Japan Real Estate Institute and “B” for Daiwa Real Estate Appraisal Co., Ltd. In the above
chart, the appraisers are indicated as (A) for Japan Real Estate Institute and (B) for Daiwa Real Estate Appraisal Corporation.

-43-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest first decimal place.
The figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices of properties corresponding toeach subtotal and total column by the total acquisition price of the entire assets (67 properties).
6. KDX Shin-Yokohama 381 Building: Starting from disclosures pertaining to the fiscal period under review, A-47 KDX Shin-Yokohama 381 Building(existing tower) and A-65 KDX Shin-Yokohama 381 Building Annex Tower are indicated collectively as one property. Moreover, the appraisal value at theend of the fiscal period is obtained from the appraiser as a single property as of the end of the fiscal period under review. The acquisition price and amount on
the balance sheet for the existing tower and annex tower are respectively as follows:(Millions of Yen)
Property Name

Acquisition Price

Amount on the Balance Sheet

A-47 KDX Shin-Yokohama 381 Building

4,700

4,830

A-65 KDX Shin-Yokohama 381 Building Annex Tower

1,100

1,097

② Property Distribution
Property Types
Type
Office Buildings
Residential Properties
Central Urban Retail Properties
Total

Number of Properties

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

61 (Note 1)
4
2

211,461
9,441
12,379

90.6
4.0
5.3

67 (Note 1)

233,281100.0

Geographic Distribution
Area
Tokyo Metropolitan Area
Other Regional Areas
Total

Number of Properties

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

57 (Note 1)
10

199,266
34,01585.4
14.5

67 (Note 1)

233,281100.0

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

Number of Properties(Note 1)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

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

32
19
11
4
1

59,41564,93363,78334,900
10,250

25.4
27.8
27.3
14.9
4.3

67

233,281

100.0

Notes
1. Starting from disclosures pertaining to the fiscal period under review, A-47 KDX Shin-Yokohama 381 Building (acquisition price of 4,700 million
yen) and A-65 KDX Shin-Yokohama 381 Building Annex Tower (acquisition price of 1,100 million yen) are indicated collectively as one
property.
2. “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.

-44-

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

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)(%) (Note 6)

Offices,A-60

KDX Harumi Building

2,230.69

S・SRC
12,694.32

Retail Shops
Bank, Offices
A-40

Toranomon Toyo Building

869.01

1,844.83

1,118.12

1,515.28

May 1993

1.78

August1982

2.97

July 1986

7.60

May 1994

3.60

April 1974

9.50

B4F11

Offices, Storage, Retail Shops
KDX Ochanomizu Building

3.14

SRC
10,348.02

Parking

A-37

March 1988
B1F11

Offices, Retails Shops
KDX Shinjuku Building

13.06

SRC･S
11,425.31

Parking, Storage, Offices

A-66

August 1962
B2F9

Retail Shops, Office Room
Hiei Kudan-Kita Building

5.60

RC
8,346.83

Retail Shops, Storage
A-46

February 2008
B1F11

SRC
7,720.08

Parking, Mechanical Room

B1F7
SRC

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03
B1F9

OfficesA-13

KDX Kojimachi Building

612.17SRC
5,323.81

Retail Shops

B2F9
SRC

A-1

KDX Nihonbashi 313 Building

1,047.72

Offices

8,613.09
B2F9

KDX Shin-Yokohama 381 Building
A-47

Offices, Retail Shops,
1,229.24
Garbage Room, Parking
Offices, Retail Shops

A-16

Toshin-24 Building

1,287.16

Tokyo

KDX Hirakawacho Building

1,013.85

SRC

Buildings
724.22

8.75

March 1988

7.25

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

November 1989

7.54

January 1990

3.63

B3F10

Offices
Ebisu East 438 Building

September 1984
SRC

Residential Complex
A-17

12.02

8,002.97

Metropolitan
Area(Note 8)B1F8Offices, Retail Shops
A-2

March 1988

B1F10
8,483.17

Parking

OfficeSRC･RC
10,290.30(Note 7)SRC
4,394.58

Retail Shops

B1F7
SRC

A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48
B1F9

Offices
A-39

KDX Toranomon Building

288.20SRC
2,277.38

Retail Shops

B1F9
SRC

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87
B1F8

A-48

SRC

KDX Kawasaki-Ekimae Hon-cho
Building

1,968.13

KDX Hatchobori Building

992.20

Offices

7,420.87
B1F9
SRC・RC

A-4

Offices

4,800.43
B1F8

Offices, Retail Shops
A-18

KDX Omori Building

1,123.93

RC・SRC
7,334.77

Parking

B1F9

Offices, Retail Shops
A-19

KDX Hamamatsucho Building

504.26

S3,592.38

Parking

F9
SRC

A-45

KDX Roppongi 228 Building

408.86

Offices, Retail Shops

2,235.30
B1F9
SRC

A-62

Koishikawa TG Building

1,250.42

Offices, Parking

5,862.02
B1F8

Offices, Storage
A-29

KDX Higashi-Shinjuku Building

1,340.97

SRC
7,885.40

Parking

-45-

B1F9

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)(%) (Note 6)

SRC
A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86

October 1987

7.90

May 1994

7.25

July 1991

13.23

February 1992

6.84

April 1988

8.37

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

October 2006

6.99

June 1988

2.23

August 2000

9.06

May 1993

7.77

October 1989

9.79

F8
SRC
A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
B1F8
SRC

A-49

Nissou Dai-17 Building

629.00

Offices, Parking

4,016.61
B1F8

Offices, Retail Shops
A-21

KDX Shinbashi Building

536.11

SRC・S
3,960.22

Parking

B1F8
SRC

A-63

Gotanda TG Building

582.90

Offices, Parking Storage

4,440.61
B1F9

Offices, Retail ShopSRC
A-5

KDX Nakano Sakaue Building

1,235.16

Residential, Parking

6,399.42
B1F11

Storage
Offices, Retail Shops
A-22

KDX Shin-Yokohama Building

705.00S
6,180.51

Parking

B1F9

Retail Shops
A-6

Harajuku F.F. Building

699.67SRC
3,812.44

Offices, Parking

F11
RC

A-50

Ikejiri-Oohashi Building

834.79

Offices

3,482.96
B2F9
SRC

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
B1F8
SRC

Tokyo
A-51

OfficeKDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41
F9

Metropolitan
Buildings
Area

Retail Shops, Offices
A-15

KDX Hamacho Building

554.80SRC
4,133.47

Parking

B2F10
SRC・RCA-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04
B1F9

Offices, Retail Shops
A-7

FIK Minami Aoyama

369.47SRC
1,926.98

Residential

B1F9

Offices
A-14

KDX Funabashi Building

1,180.41

SRC
5,970.12

Retail Shops

B1F8
S・SRC

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90
B1F8

Offices, Retail Shops
A-55

Shin-toshin Maruzen Building

457.64SRC
3,439.37

Parking

B1F8
SRC

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62
F9
S

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00
F10
S

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11
F8
SRC・RC・S

A-8

Kanda Kihara Building

410.18

Offices

2,393.94
B1F8

Offices, Retail Shops
A-23

KDX Yotsuya Building

996.65RC
3,329.68

Parking

-46-

B2F4

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)(%) (Note 6)

OfficesA-59

KDX Iwamoto-cho Building

266.86

S
1,618.65

Residential Complex

March 2008

7.15

October 1992

7.79

October 1992

9.02

September 1986

5.72

October 1992

9.41

May 1995

11.12

December 1985

13.00

May 1991

9.48

April 20092.87

September 1993

3.48

October 1982

8.37

June 1973

1.48

July 1994

9.79

February 1984

1.93

March 1993

9.04

September 1993

10.59

July 1983

4.39

F9
RC

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64
F5
RC

A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63
F5

Offices
A-31

KDX Monzen-Nakacho Building

580.99SRC
2,668.91

Retail Shops

F8

Tokyo
SRC
Metropolitan

A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60
B1F7

Area
OfficesA-34

KDX Hon-Atsugi Building

724.62SRC
3,603.63

Retail Shops

F8

Offices, Parking
A-35

KDX Hachioji Building

460.62SRC
2,821.21

Retail Shops

F9

Offices, Retail Shops
A-28

KDX Nogizaka Building

409.36RC
1,695.07

Residential

B1F5
S

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retails Shops

9,594.00
F11

OfficeBuildings

Offices, Retail Shops,
A-12

Portus Center Building

13,936.63

SRC・S
79,827.08

Storage, Parking

B2F25
SRC

A-42

Karasuma Building

1,788.67

Offices

12,632.68
B1F8
SRC

A-53

KDX Hakata-Minami Building

1,826.25

Offices, Retail Shops, Parking

13,238.16
B1F9

Other
S
Regional

A-54

KDX Kitahama Building

751.92

Offices, Storage, Parking

4,652.96
F10

Areas
SRC
A-44

KDX Sendai Building

987.78

Offices

5,918.30
B1F10
SRC・RC・S

A-24

KDX Minami Semba Dai-1 Building

715.44

Offices, Parking

4,236.59
B1F9

Parking, Retail Shops
A-25

KDX Minami Semba Dai-2 Building

606.45SRC・S3,315.93

Offices, Residential

B1F9

OfficesA-36

KDX Niigata Building

1,110.56

RC
6,810.29

Retail Shops

B2F13
Average of 21.1 yrs

Subtotal of Office Buildings (61 properties)

-

-

-

-

(Note 8)Residential Complex
B-19

Residence Charmante Tsukishima

4,252.86

SRC
18,115.39

OfficesJanuary 2004

9.88

March 1997

7.11

February 2006

6.46

March 1989

5.20

Average of 10.3 yrs

-

B1F10

Tokyo
RC
Metropolitan

B-3

Court Mejiro

1,581.91

Residential Complex

3,326.07
B1F3

Residential

Area
Residential Complex

Properties

B-34

Gradito Kawaguchi

423.94RC
1,705.38

Retail Shops

F12①RC F6

Other
Regional

B-18

Venus Hibarigaoka

8,595.00

Residential Complex

14,976.25---③RC F6

Areas
Subtotal of Residential Properties (4 properties)②RC F5-47--

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)(%) (Note 6)

S・RC・SRC

CentralTokyo

C-1

Frame Jinnan-zaka

1,240.51

Retail Shops

6,302.58

March 2005

8.02

August 1991

8.17

Average of 8.3 yrs

-

B2F7

Urban
Metropolitan
RetailRetail Shops
Area

C-2

KDX Yoyogi Building

228.74SRC
1,269.06

Properties

Offices

F8

Subtotal of Central Urban Retail Properties (2 properties)

-

-

-

-

Total of 67 properties

-

-

-

-

Average of 20.0 yrs

5.24(Note 8)(Note 6)

Notes:
1. Site area data is based on figures recorded in the land register (including relevant figures for leasehold land, if any). Data may not match with the actual
current status. In the case of buildings with compartmentalized ownership, the figure indicates the site area of the entire land subject to site rights.
2. Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of areas covered by the relevant
ownership is shown.
3. Total floor space is based on figures recorded in the land register and does not include related structures. The total floor area for the entire buildings isreported for compartmentalized ownership.
4. Type of structure data is based on data recorded in the land register. For buildings with compartmentalized ownership, the structure and the number of floorsof the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating to structure andthe number of floors:
SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level.
For example: B2F9: Two floors below ground level and nine floors above ground level.
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 October 31, 2010, and is rounded down to the nearest first decimal place.
6. Probable Maximum Loss (PML) data is based on a survey provided by Sompo Japan Risk Management, Inc. (changed company name to NKSJ Risk
Management, Inc. as of November 1, 2010 as a result of an integration of business operations with N.K. Risk Consulting Co., Ltd.) as of September 2010.
The Portfolio PML is the data based on 67 properties.
7. KDX Shin-Yokohama 381 Building:Starting from disclosures pertaining to the fiscal period under review, A-47 KDX Shin-Yokohama 381 Building (existing tower) and A-65 KDX
Shin-Yokohama 381 Building Annex Tower are indicated collectively as one property. The two properties are two compartmentalized buildings within asingle building. By consolidating them together, they become a property that comprises the entire building (total ownership ratio: 100%).
8. The completion date of the existing tower is shown for the completion date of KDX Shin-Yokohama 381 Building. Upon calculating the weighted-average
portfolio age, the completion date (April 2009) for the KDX Shin-Yokohama 381 Building Annex Tower is not considered.

-48-

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 twelfth fiscal period(November1, 2010 to April 30, 2011) are as follows. Planned capital expenditure may include portions classified into expenses foraccounting purposes.

Property Name

PurposeSchedule

Gotanda TG Building

Air conditioning system construction,

November 2010

(Shinagawa-ku, Tokyo)

upgrade of restrooms, otherto April 2011

KDX Shin-Yokohama Building

Air conditioning system construction,(Yokohama-shi, Kanagawa)

supply/exhaust air fan construction, other

Ebisu East 438 Building

Air conditioning system construction,(Shibuya-ku, Tokyo)

upgrade of restrooms, otherKDX Yotsuya Building

Air conditioning system construction,(Shinjuku-ku, Tokyo)

supply/exhaust air fan construction, other

KDX Hamacho Building

Air conditioning system construction,(Chuo-ku, Tokyo)

other(Location)

KDX Kawasaki-Ekimae Hon-cho Building(Kawasaki-shi, Kanagawa)Ikejiri-Oohashi Building(Meguro-ku, Tokyo)

Planned Amount of Capital Expenditure(Millions of Yen)
Paid in the Fiscal Total AmountPreviously
Total
Period Under
Paid
Review131--

As above

100

-

-

As above85--

As above65--

As above

63--

Upgrade of external walls, other

As above40--

Upgrade of external walls, other

As above28--(b) Capital Expenditures during the Fiscal Period Under Review (fiscal period ended October 31, 2010)
The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review (fiscal period
ended October 31, 2010), the Investment Corporation completed work across its entire portfolio totaling ¥462 million. This total comprisedof ¥312 million in capital expenditures and ¥149 million for repairs, maintenance and renovation expenses.
Property Name

Purpose(Location)
KDX Higashi-Shinjuku Building(Shinjuku-ku, Tokyo)
Kanda Kihara Building(Chiyoda-ku, Tokyo)
Venus Hibarigaoka(Sapporo, Hokkaido)

Schedule

Upgrade of external walls, otherMay 2010 to
October 2010

Amount of Capital Expenditures(Millions of Yen)29

Air conditioning system construction, other

As above28

Upgrade of external walls, other

As above

22

Others232

Portfolio Total

312

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

-49-

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
and allocates 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)
Seventh Fiscal Period Eighth Fiscal Period
Fiscal period
Reserve for the end of theprevious period
Reserve for the fiscal period
under review
Reversal of reserve for the
fiscal period under review
Reserve bring to the next period

Ninth Fiscal Period

Tenth Fiscal Period Eleventh Fiscal Period(May 1, 2008 to(November 1, 2008

(May 1, 2009 to(November 1, 2009

(May 1, 2010 to

October 31, 2008)

to April 30, 2008)

October 31, 2009)

to April 30, 2010)

October 31, 2010)

432

552

477

469

444

128

93

71

29

8

167

79

54

14

552

477

469

444

430

-50-

-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

C.
Type

OfficeBuildings

Details of the Tenants
Area

Tokyo
Metropolitan
Area

No.

(As of October 31, 2010)
Property Name

Total Leasable
Floor Area(㎡)(Note 1)

Total Rental
Leasehold andTotal No. of
Total No. of
Total Leased
No. of Occupancy
and Other Operating Security Deposits
Leasable
LeasedFloor Area
Tenants Ratio (%）
Revenues(¥thousands) (¥thousands)
Residential units Residential units(Note 5) (Note 6)(㎡)(Note 2)(Note 7)(Note 8)(Note 3)(Note 4)A-60

KDX Harumi Building

9,294.00

9,122.60

-

-

6

98.2

375,363554,203

A-40

Toranomon Toyo Building

6,392.26

6,101.31

-

-

11

95.4

301,819

518,404

A-46

Hiei Kudan-Kita Building

6,902.72

5,891.30

-

-

13

85.3

266,179

361,603

A-66

KDX Shinjuku Building

5,893.41

5,523.33

-

-

21

93.7

273,992

358,930

A-37

KDX Ochanomizu Building

5,880.885,880.88

-

-

5

100.0

229,902250,999

A-32

KDX Shiba-Daimon Building

5,984.71

5,984.71

-

-

9

100.0

200,995

257,125

A-13

KDX Kojimachi Building

3,809.74

3,499.49

-

-

9

91.9

136,347

211,886

A-1

KDX Nihonbashi 313 Building

5,899.56

5,899.56

-

-

9

100.0

266,847

352,783

A-47

KDX Shin-Yokohama 381 Building (Note 9)8,132.21

8,132.21

-

-

32

100.0

188,442

237,524

A-16

Toshin-24 Building

6,611.23

4,803.49

-

-

12

72.7

181,610

234,612A-2

KDX Hirakawacho Building

4,457.97

4,457.97

4

4

18

100.0

161,507

216,995

A-17

Ebisu East 438 Building

3,079.74

2,567.94

-

-

6

83.4

150,951

225,132

A-3

Higashi-Kayabacho Yuraku Building

4,413.17

4,413.17

-

-

7

100.0

181,868

246,519

A-39

KDX Toranomon Building

1,966.56

1,966.56

-

-

7

100.0

112,598

183,786

A-30

KDX Nishi-Gotanda Building

3,881.58

3,881.58

-

-

5

100.0

154,893

211,542

A-48

KDX Kawasaki-Ekimae Hon-cho Building

5,124.98

5,124.98

-

-

1

100.0

171,309

155,091

A-4

KDX Hatchobori Building

3,324.82

3,324.82

-

-

6

100.0

140,746

148,343

A-18

KDX Omori Building

4,945.03

4,945.03

-

-

10

100.0

164,611

227,514

A-19

KDX Hamamatsucho Building

2,725.33

2,725.33

-

-

8

100.0

108,922

149,371

A-45

KDX Roppongi 228 Building

1,909.08

1,242.01

-

-

6

65.1

42,56058,188

A-62

Koishikawa TG Building

3,944.26

3,944.26

-

-

5

100.0

137,623

165,764

A-29

KDX Higashi-Shinjuku Building

5,927.09

5,927.09

-

-

7

100.0

146,798

162,535

A-20

KDX Kayabacho Building

3,019.95

3,019.95

-

-

5

100.0

123,752

190,438

A-56

KDX Jimbocho Building

2,321.10

2,192.10

-

-

3

94.4

77,791

100,099

A-49

Nissou Dai-17 Building

2,739.62

2,600.04

-

-

6

94.9

74,004

71,370A-21

KDX Shinbashi Building

1,696.62

1,696.62

-

-

6

100.0

98,323

129,117

A-63

Gotanda TG Building

3,169.57

2,443.77

-

-

7

77.1

78,965

126,373

A-5

KDX Nakano Sakaue Building

4,389.65

4,237.07

18

16

24

96.5

103,792

98,820A-22

KDX Shin-Yokohama Building

4,810.97

3,559.26

-

-

17

74.0

93,303

137,244

A-6

Harajuku F.F. Building

3,068.36

3,068.36

-

-

3

100.0

113,313

169,103

A-50

Ikejiri-Oohashi Building

2,449.11

2,236.55

-

-

7

91.3

80,049105,617

A-27

KDX Kajicho Building

2,563.63

2,157.71

-

-

9

84.2

66,09088,225A-51

KDX Hamacho Nakanohashi Building

2,241.42

2,085.16

-

-

8

93.0

73,065

79,638

A-15

KDX Hamacho Building

3,105.63

2,915.30

-

-

9

93.9

93,480129,588

A-41

KDX Shinjuku 286 Building

2,447.80

2,447.80

-

-

9

100.0

89,465

104,603

A-7

FIK Minami Aoyama

1,814.56

1,814.56

-

-

8

100.0

66,937

104,652

A-14

KDX Funabashi Building

3,863.94

3,807.23

-

-

19

98.5

105,830

125,739

A-61

KDX Hamamatsucho Dai-2 Building

1,953.50

1,953.50

-

-

8

100.0

64,91099,247

A-55

Shin-toshin Maruzen Building

1,938.10

1,938.10

-

-

5

100.0

66,68092,798A-64

KDX Nihonbashi 216 Building

1,615.20

1,211.40

-

-

5

75.0

68,502

101,706

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

4

100.0

67,537109,239

A-57

KDX Gobancho Building

1,651.48

1,415.52

-

-

6

85.7

48,76349,299A-8

Kanda Kihara Building

1,946.89

1,946.89

-

-

8

100.0

67,703136,064

A-23

KDX Yotsuya Building

2,536.53

2,536.53

-

-

3

100.0

98,112

154,666

A-59

KDX Iwamoto-cho Building

1,524.68

1,524.68

3

3

9

100.0

54,58852,162-51-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Property Name

Total Leasable
Floor Area(㎡)(Note 1)

Total Rental
Leasehold andTotal No. of
Total No. of
Total Leased
No. of Occupancy
and Other Operating Security Deposits
Leasable
LeasedFloor Area
Tenants Ratio (%）
Revenues(¥thousands) (¥thousands)
Residential units Residential units(Note 5) (Note 6)(㎡)(Note 2)(Note 7)(Note 8)(Note 3)(Note 4)A-26

KDX Kiba Building

2,450.90

2,450.90

-

-

7

100.0

69,08180,731A-38

KDX Nishi-Shinjuku Building

1,601.15

1,402.54

-

-

6

87.6

46,71656,527

A-31

KDX Monzen-Nakacho Building

2,010.55

2,010.55

-

-

5

100.0

54,62058,559A-52

KDX Kanda Misaki-cho Building

1,339.46

1,164.27

-

-

7

86.9

34,604

41,567A-34

KDX Hon-Atsugi Building

2,747.28

2,747.28

-

-

10

100.0

63,04887,259A-35

KDX Hachioji Building

2,177.79

2,099.06

-

-

7

96.4

52,21450,874A-28

KDX Nogizaka Building

1,250.12

976.64

1

1

5

78.1

29,731

36,421A-58

KDX Nagoya Sakae Building

6,923.12

6,251.45

-

-

14

90.3

150,586

194,022

A-12

Portus Center Building

11,569.21

10,867.51

-

-

27

93.9

288,752

375,124

A-42

Karasuma Building

8,555.73

7,978.03

-

-

36

93.2

205,476

262,253

A-53

KDX Hakata-Minami Building

10,094.83

8,134.70

-

-

42

80.6

171,725

199,323

A-54

KDX Kitahama Building

3,993.81

3,850.54

-

-

8

96.4

86,545

83,180A-44

KDX Sendai Building

3,957.56

3,907.85

-

-

29

98.7

89,157

190,353

A-24

KDX Minami Semba Dai-1 Building

3,108.16

2,584.32

-

-

9

83.1

53,16865,442A-25

KDX Minami Semba Dai-2 Building

2,693.72

2,693.72

-

-

24

100.0

57,21946,407

A-36

KDX Niigata Building

4,058.00

2,655.32

-

-

20

65.4

51,51351,600Subtotal of Office Buildings (63 properties)

Other
Regional
Areas

Residential
Properties

No.

Tokyo
Metropolitan
Area
Other
Regional
Areas

237,692.57

221,734.94

26

24

657

93.3

7,475,021

9,924,330

B-19

Residence Charmante Tsukishima

7,711.14

7,711.14140

140 1 (Note 10)

100.0

166,441

50,580B-3

Court Mejiro

2,046.79

1,948.31

20

19

19

95.2

40,536

15,403

B-34

Gradito Kawaguchi

1,619.34

1,619.34

66

66 2 (Note 11)100.0

32,936

10,028B-18

Venus Hibarigaoka

12,829.64

11,851.42

159

147

114

92.4

89,42925,901

Subtotal of Residential Properties (4 properties)
CentralTokyo
Urban
Metropolitan
RetailArea
Properties

24,206.91

23,130.21

385

372

136

95.6

329,344

101,912

C-1

Frame Jinnan-zaka

4,655.71

4,655.71

-

-

11

100.0

290,095

302,794

C-2

KDX Yoyogi Building

1,182.14

1,120.30

-

-

10

94.8

63,813

120,532

5,837.85

5,776.01

-

-

21

98.9

353,908

423,326814
396(Note 12)93.6

8,158,273

10,449,569

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

267,737.33

250,641.16

411

Occupancy Ratio over the Past Five Years
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, 2009

95.7%

October 31, 2009

94.7%

April 30, 2010

94.4%

October 31, 2010

93.6%

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
the case of more than one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans.
2. Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
3. The total number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential purposes.
4. The total number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end
tenants or sub-lease agreements are singed.
5. The total number of tenants refers to the actual number of end tenants for each property. However, for KDX Shin-Yokohama 381 Building, please refer to-52-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Note 9, 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 underreview 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 total of the balances of security deposits held (including net security deposits in the case of discount) andguarantee deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest thousand yen.
9. Starting from disclosures pertaining to the fiscal period under review, A-47 KDX Shin-Yokohama 381 Building and A-65 KDX Shin-Yokohama 381
Building Annex Tower are indicated collectively as one property. In addition, concerning the number of tenants for KDX Shin-Yokohama 381 Building
Annex Tower as of the end of the fiscal period under review, other than 1 tenant occupying the first floor and second floor, the Investment Corporation and
Y.K. KRF 11 have concluded a fixed-rent, fixed-term building lease contract for the third floor to ninth floor (term of contract: to November 17, 2010).
Therefore, the number of tenants is indicated as 2 in the table below.
Details for KDX Shin-Yokohama 381Building and KDX Shin-Yokohama 381 Building Annex Tower are as follows.
No.

Total Leasable Total Leased No. of Occupancy Total Rental and Other Operating Leasehold and Security
Revenues (¥thousands)
Deposits (¥thousands)
Floor Area (㎡) Floor Area (㎡) Tenants Ratio (%）

Property Name

A-47

KDX Shin-Yokohama 381 Building

5,684.84

5,684.84

30

100.0

135,790

208,675

A-65

KDX Shin-Yokohama 381 Building Annex Tower

2,447.37

2,447.37

*2

100.0

52,652

28,849

10. Residence Charmante Tsukishima: 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 as 1.
11. Gradito Kawaguchi: Because the master lessor and Haseko Livenet Inc. have concluded a rental guarantee (fixed-term lease: until March 31, 2011) building
lease contract for dwelling 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 operating rental and other revenues for the office building and residential property sold during the Eleventh Fiscal Period
No.

Property Name

Total Rental and Other Operating Revenues (¥thousands)

A-9

KDX Shinjuku-Gyoen Building

57,616

B-25

Court Shin-Okachimachi

26,310Total

83,926

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 forthe eleventh fiscal period (fiscal period ended October 31, 2010).
E. Information concerning major tenants(a) Tenant which holds more than 10% of the total leased area: None(b) Reference: Major end tenants(As of October 31, 2010)
Name of End Tenant

Property Name

Leased Floor
Area

Percentage of Total Leased Floor
Area (Note 1)

1

Sekiwa Real Estate, Ltd.

Residence Charmante Tsukishima

7,711.14 ㎡

3.1％

2

NTT Data Corporation

KDX Harumi Building, KDX Higashi-Shinjuku Building

5,185.96 ㎡

2.1％

3

N / A (Note 2)

5,124.98 ㎡

2.0％

4

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,447.80 ㎡

1.4％

5

Kodak Japan Ltd.

KDX Kawasaki-Ekimae Hon-cho Building
Toranomon Toyo Building, Harajuku F.F. Building,
KDX Yoyogi Building
KDX Monzen Nakacho Building,
KDX Ochanomizu Building

3,121.83 ㎡

1.3％

24,591.71 ㎡

9.8％

Subtotal

Portfolio Total
250,641.16 ㎡
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.

-53-

KENEDIX REALTY INVESTMENT CORPORATION (8972)④ Status of the Posted CollateralNo.

Property Name

Status of Collateral(Secured・Unsecured)Type of
Collateral

A-60

KDX Harumi Building

SecuredFixed pledge

A-40

Toranomon Toyo Building

SecuredFixed pledge

A-46

Hiei Kudan-Kita Building

SecuredFixed pledge

A-66

KDX Shinjuku Building

SecuredFixed pledge

A-37

KDX Ochanomizu Building

SecuredFixed pledge

A-32

KDX Shiba-Daimon Building

SecuredFixed pledge

A-13

KDX Kojimachi Building

A-1

KDX Nihonbashi 313 Building

A-47

KDX Shin-Yokohama 381 Building (Note 1)

A-16

Toshin-24 Building

Unsecured
SecuredFixed pledge

Unsecured
SecuredFixed pledge

A-2

KDX Hirakawacho Building

Unsecured-

A-17

Ebisu East 438 Building

Unsecured-

A-3

Higashi-Kayabacho Yuraku Building

SecuredFixed pledge

A-39

KDX Toranomon Building

SecuredFixed pledge

A-30

KDX Nishi-Gotanda Building

SecuredFixed mortgage

A-48

KDX Kawasaki-Ekimae Hon-cho Building

SecuredFixed mortgage

A-4

KDX Hatchobori Building

A-18

KDX Omori Building

SecuredUnsecured

Fixed pledge

A-19

KDX Hamamatsucho Building

SecuredFixed pledge

A-45

KDX Roppongi 228 Building

Unsecured

-

-

A-62

Koishikawa TG Building

SecuredFixed pledge

A-29

KDX Higashi-Shinjuku Building

SecuredFixed pledge

A-20

KDX Kayabacho Building

SecuredFixed pledge

A-56

KDX Jimbocho Building

SecuredFixed mortgage

A-49

Nissou Dai-17 Building

SecuredFixed pledge

A-21

KDX Shinbashi Building

Unsecured-

A-63

Gotanda TG Building

SecuredFixed pledge

A-5

KDX Nakano Sakaue Building

SecuredFixed pledge

A-22

KDX Shin-Yokohama Building

SecuredFixed pledge

A-6

Harajuku F.F. Building

SecuredFixed pledge

A-50

Ikejiri-Oohashi Building

SecuredFixed pledge

A-27

KDX Kajicho Building

SecuredFixed pledge

A-51

KDX Hamacho Nakanohashi Building

SecuredFixed pledge

A-15

KDX Hamacho Building

SecuredFixed pledge

A-41

KDX Shinjuku 286 Building

SecuredFixed pledge

A-7

FIK Minami Aoyama

Unsecured
Secured-A-14

KDX Funabashi Building

A-61

KDX Hamamatsucho Dai-2 Building

Fixed mortgage

A-55

Shin-toshin Maruzen Building

SecuredFixed pledge

A-64

KDX Nihonbashi 216 Building

SecuredFixed pledge

Unsecured-

A-33

KDX Okachimachi Building

Unsecured-

A-57

KDX Gobancho Building

Unsecured-

A-8

Kanda Kihara Building

A-23

KDX Yotsuya Building

SecuredFixed pledge
Unsecured-54--

Appraisal Value at the End of Eleventh
Fiscal Period (Millions of Yen)
Collateralized

Uncollateralized

10,600
9,770
7,640
7,010
6,530
4,840
7,170
4,320
5,190
3,420
3,640
3,410
3,640
3,180
3,240
3,240
3,070
2,080
1,640
2,570
2,350
2,430
2,860
1,600
2,230
1,690
2,320
2,050
1,990
1,560
1,990
1,870
-

4,250
4,250
4,910
4,210
3,380
2,160
2,790
2,210
1,920
1,790
1,480
2,280

KENEDIX REALTY INVESTMENT CORPORATION (8972)

No.

Status of Collateral(Secured・Unsecured)

Property Name

A-59

KDX Iwamoto-cho Building

A-26

KDX Kiba Building

A-38

KDX Nishi-Shinjuku Building

A-31

KDX Monzen-Nakacho Building

A-52

KDX Kanda Misaki-cho Building

A-34

KDX Hon-Atsugi Building

Type of
Collateral

Unsecured
SecuredFixed pledge

Unsecured
SecuredFixed mortgage

Unsecured
SecuredFixed pledge

A-35

KDX Hachioji Building

Unsecured-

A-28

KDX Nogizaka Building

Unsecured-

A-58

KDX Nagoya Sakae Building

Unsecured-

A-12

Portus Center Building

SecuredFixed pledge

A-42

Karasuma Building

SecuredFixed pledge

A-53

KDX Hakata-Minami Building

SecuredFixed mortgage

A-54

KDX Kitahama Building

A-44

KDX Sendai Building

SecuredUnsecured

Fixed pledge

-

A-24

KDX Minami Semba Dai-1 Building

SecuredFixed pledge

A-25

KDX Minami Semba Dai-2 Building

SecuredFixed pledge

A-36

KDX Niigata Building

B-19

Residence Charmante Tsukishima

B-3

Court Mejiro

Unsecured
SecuredFixed pledge

Unsecured-

B-34

Gradito Kawaguchi

B-18

Venus Hibarigaoka

SecuredUnsecured

Fixed pledge-

C-1

Frame Jinnan-zaka

SecuredFixed pledge

C-2

KDX Yoyogi Building

Unsecured
Total-

Appraisal Value at the End of Eleventh
Fiscal Period (Millions of Yen)
Collateralized

Uncollateralized

1,470
1,270
1,070
4,590
5,020
3,840
1,470
1,090
1,150
4,480
1,420
9,750
157,760

1,310
1,210
980
821
829
4,710
1,670
868
950
959
1,900
51,837

Notes:
1. The Investment Corporation posted collateral KDX Shin-Yokohama 381 Building which was uncollaterized at the end of fiscal period under review (fiscal
period ended October 31, 2010) and two other properties on November 12, 2010, For details, please refer to page 13 “(Reference) ③Posting Additional
Collateral”. In addition, starting from the end of the fiscal period under review, A-47 KDX Shin-Yokohama 381 Building (existing tower) and A-65 KDX
Shin-Yokohama 381Building Annex Tower are indicated collectively as one property. However, assets that are to be pledged as additional collateral are in
the form of separate trust beneficiary interests in real estate for the existing tower and the annex tower.
2. Collateral right holders (including fixed pledge holders and fixed mortgage holders) for all of the collateralized properties are as follows:
Sumitomo Mitsui Banking Corporation, The Chuo Mitsui Trust and Banking Co., Ltd., Aozora Bank, Ltd., Development Bank of Japan Inc., The Bank ofTokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Resona Bank, Ltd., The Norinchukin Bank and Mitsui Sumitomo InsuranceCo., Ltd.
3. The outstanding balance of secured borrowings as of the end of the fiscal period under review is 90,567 million yen. In addition, as of December 13, 2010, theoutstanding balance of secured borrowings is 100,067 million yen.

-55-

a0601

a0401

a0661

a0461

a0371

a0321

a0131

a0011

a0471

a0161

【Reference】

Earnings Performance for the Individual Properties for the 11th Fiscal Period (May 1, 2010 to October 31, 2010) ：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area
Toranomon Toyo
Building

Hiei Kudan-Kita
Building

Acquisition Date

June 30, 2008

June 1, 2007

February 1, 2008 February 18, 2010 April 2, 2007 March 1, 2007 November 1, 2005 August 1, 2005 February 1, 2008
7,600
6,800
6,400
6,090
5,950
5,940
5,800
3.3%
2.9%
2.7%
2.6%
2.6%
2.5%
2.5%
7,607
6,880
6,716
6,262
5,696
6,175
5,927
7,640
7,010
6,530
4,840
4,250
7,170
4,250
3.6%
3.3%
3.1%
2.3%
2.0%
3.4%
2.0%
13
21
5
9
9
9
32
6,902.72
5,893.41
5,880.88
5,984.71
3,809.74
5,899.56
8,132.21
5,891.30
5,523.33
5,880.88
5,984.71
3,499.49
5,899.56
8,132.21

Price Information

KDX Harumi
Building

Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)10,250
4.4%
9,922
10,6005.1%
69,294.00
9,122.60

9,850
4.2%
9,873
9,770
4.7%
11
6,392.26
6,101.31

98.2%
98.2%
100.0%
100.0%
100.0%
-

95.4%
93.9%
95.4%
100.0%
100.0%
99.1%
97.5%
-

KDX Ochanomizu
Building

KDX ShibaDaimon Building

KDX Kojimachi
Building

KDX Nihonbashi
313 Building

KDX ShinYokohama 381
Building (Note)

Property Name

Acquisition price (\ Millions)KDX Shinjuku
Building

a0021

a0171

a0031

a0391

a0301

a0481

KDX NishiGotanda Building

KDX KawasakiEkimae Hon-cho
Building※As of October 31, 2010

Toshin 24 Building

KDX Hirakawacho
Building

Ebisu East 438
Building

Higashi-Kayabacho KDX Toranomon
Yuraku Building
Building

May 1, 2006

August 1, 2005

May 1, 2006

August 1, 2005 April 17, 2007 December 1, 2006 February 1, 2008

5,300
2.3%
5,170
4,320
2.1%
12
6,611.23
4,803.49

5,180
2.2%
5,153
4,910
2.3%
18
4,457.97
4,457.97

4,640
2.0%
4,511
4,210
2.0%
6
3,079.74
2,567.94

4,450
1.9%
4,425
5,190
2.5%
7
4,413.17
4,413.17

4,400
1.9%
4,829
3,420
1.6%
7
1,966.56
1,966.56

4,200
1.8%
4,119
3,640
1.7%
5
3,881.58
3,881.58

3,760
1.6%
3,854
3,410
1.6%
1
5,124.98
5,124.98

72.7%
84.1%
93.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

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

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

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

100.0%
100.0%
89.3%
78.6%
78.6%
100.0%
100.0%
0.0%-

100.0%
100.0%
100.0%
91.9%
100.0%
100.0%
100.0%
73.7%-

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

Occupancy ratio
Lease Information

As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
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

85.3%
91.9%
100.0%
100.0%
100.0%
100.0%
-

93.7%
93.8%
-

100.0%
100.0%
100.0%
100.0%
90.2%
100.0%
100.0%
100.0%-

100.0%
97.3%
100.0%
100.0%
100.0%
100.0%
100.0%
93.0%
-

91.9%
97.1%
86.7%
88.6%
98.2%
98.2%
97.1%
97.1%
97.1%
80.5%

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

100.0%
100.0%
100.0%
92.1%
97.5%
94.6%
-

Income and Retained Earnings Information for the 11th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

375,363

301,819

266,179

273,992

229,902200,995

136,347

266,847

188,442

181,610

161,507

150,951

181,868

112,598

154,893

171,309

Rental revenues

312,559

284,918

238,991

234,174

215,653

177,911

112,038

249,255

157,849

153,214143,291

126,952

162,311

104,575

129,909

134,066

Other operating revenues

62,803

16,901

27,18839,81814,24823,08324,30917,59130,59328,395

18,21623,99919,557

8,023

24,98337,243102,92174,53791,01656,25144,88946,92045,56961,17846,94053,87847,96536,51636,98623,891

32,82751,884

Property management fees

39,021

20,74630,852

24,306

13,454

16,43910,201

19,06914,461

19,616

15,87011,64914,124

6,708

12,152

14,687

Taxes

19,862

31,377

26,42313

16,042

12,072

17,90519,88013,966

12,866

15,783

10,9009,821

10,579

9,572

7,748

Utilities

40,826

16,76820,07524,508

11,734

15,394

11,155

13,96915,10916,407

11,292

11,038

10,341

4,368

9,758

27,757672②Property-related expenses (\ Thousands)

-

1,501

7,096

1,789

1,691

1,121

5,095

6,462

1,337

807

1,468

1,604

879

166

499

526

364

472

371

316

284

228

339

373

352

305

180

230

98

213

252

Trust fees and other expenses

2,683

3,779

6,097

5,261

1,649

1,608

982

1,456

1,692

3,828

3,244

1,143

1,588

1,970

631

765

③ＮＯＩ （＝①-②） (\ Thousands)

272,441

227,281

175,162

217,741

185,013

154,074

90,778205,669

141,502

127,731

113,542

114,434

144,882

88,706122,066

119,424④Depreciation (\ Thousands)

76,973

11,857

14,763

14,58026,61028,62840,56028,61445,78133,58924,70917,173

26,946

13,17629,30230,197⑤Rental operating income （＝③-④） (\ Thousands)

195,468

215,424

160,399

203,160

158,402125,445

50,217177,054

95,72094,142

88,832

97,260117,935

75,53092,76389,227

390

4,480

-

3,791

8,311

2,146

2,793

548

2,813

26,002

702

1,600

7,982

-

2,700

720

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

272,051

222,801

175,162

213,950

176,702

151,928

87,985205,121

138,688

101,729

112,839

112,834

136,899

88,706

119,366

118,704

Expense ratio （＝②／①）

27.4%
39,715
13,2203.52%

24.7%
62,754
10,797
3.58%

34.2%
52,845
9,090
3.42%

20.5%
60,504
10,0353.66%

19.5%
32,076
8,467
3.68%

23.3%
24,147
7,246
3.61%

33.4%
35,809
4,834
3.55%

22.9%
39,760
9,930
3.72%

24.9%
27,820
6,733
3.57%

29.7%
25,731
6,313
3.48%

29.7%
31,565
5,613
3.48%

24.2%
21,800
5,416
3.59%

20.3%
19,624
6,668
3.67%

21.2%
21,158
4,108
3.65%

21.2%
19,139
5,652
3.65%

30.3%
15,5005,933
3.46%

110,320
9,193◆

260,050
21,670◆296,707
24,725◆362,230
30,185◆

323,470
26,955◆

169,180
14,098◆

180,970
15,080-214,470
17,872

217,420
18,118217,670
18,139210,660
17,555

147,940
12,328107,050
8,920

70,4005,866

136,230
11,352446,967
37,247-◆◆◆

Repairs and maintenance costs
Insurance⑥Capital expenditures (\ Thousands)

Property tax for the year 2010(\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr \( Thousands)
Reference：Amount of yearly avg.
Assets pledged as collateral◆◆
Note: Starting from the eleventh fiscal period, A-47 KDX Shin-Yokohama 381 Building and A-65 KDX Shin-Yokohama 381 Building Annex Tower are indicated collectively as one property.

◆

-56-

a0041

a0181

a0191

a0621

a0451

a0291

a0201

a0561

a0491

Earnings Performance for the Individual Properties for the 11th Fiscal Period (May 1, 2010 to October 31, 2010) ：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property Name

KDX Hatchobori
Building

KDX Omori
Building

KDX
Hamamatsucho
Building

Acquisition Date

August 1, 2005

May 1, 2006

May 1, 2006

Price Information

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

KDX HigashiShinjuku Building

KDX Kayabacho
Building

January 10, 2008 November 18, 2009 September 1, 2006
3,300
3,080
2,950
1.4%
1.3%
1.3%
3,445
3,165
3,194
2,160
3,240
3,240
1.0%
1.5%
1.5%
6
5
7
1,909.08
3,944.26
5,927.09
1,242.01
3,944.26
5,927.09

May 1, 2006

3,680
1.6%
3,385
3,380
1.6%
6
3,324.82
3,324.82

3,500
1.5%
3,410
3,640
1.7%
10
4,945.03
4,945.03

3,460
1.5%
3,307
3,180
1.5%
8
2,725.33
2,725.33

100.0%
100.0%
93.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

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

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

65.1%
65.1%
52.4%
65.2%
78.0%
80.4%
-

Koishikawa TG
Building

KDX Jimbocho
Building

a0631

a0211

【Reference】

a0051

a0221

a0061

a0501

a0271

※As of October 31, 2010

Nissou Dai-17
Building

March 31, 2008 February 1, 2008

KDX Shinbashi
Building

May 1, 2006

Gotanda TG
Building

KDX NakanoKDX ShinSakaue Building Yokohama Building

November 18, 2009 August 1, 2005

May 1, 2006

Harajuku F.F.
Building

Ikejiri-Oohashi
Building

August 1, 2005 February 1, 2008

KDX Kajicho
Building

July 3, 2006

2,780
1.2%
2,853
3,070
1.5%
5
3,019.95
3,019.95

2,760
1.2%
2,926
2,080
1.0%
3
2,321.10
2,192.10

2,710
1.2%
2,659
1,640
0.8%
6
2,739.62
2,600.04

2,690
1.2%
2,662
2,790
1.3%
6
1,696.62
1,696.62

2,620
1.1%
2,714
2,570
1.2%
7
3,169.57
2,443.77

2,533
1.1%
2,459
2,350
1.1%
24
4,389.65
4,237.07

2,520
1.1%
2,433
2,430
1.2%
17
4,810.97
3,559.26

2,450
1.1%
2,456
2,860
1.4%
3
3,068.36
3,068.36

2,400
1.0%
2,475
1,600
0.8%
7
2,449.11
2,236.55

2,350
1.0%
2,415
2,230
1.1%
9
2,563.63
2,157.71

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

94.4%
85.0%
100.0%
100.0%
59.8%
0.0%
-

94.9%
94.9%
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%
-

77.1%
57.8%
-

96.5%
100.0%
91.3%
92.3%
96.5%
100.0%
100.0%
100.0%
97.0%
98.8%

74.0%
86.3%
93.1%
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%
100.0%
100.0%
100.0%

91.3%
100.0%
91.3%
82.6%
100.0%
91.3%
-

84.2%
75.1%
94.3%
100.0%
100.0%
100.0%
85.8%
100.0%
100.0%
184daysOccupancy ratio
Lease Information

As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
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%
97.0%
86.2%
82.2%
92.6%
100.0%
100.0%-

Income and Retained Earnings Information for the 11th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

140,746

164,611

108,922

42,560137,623

146,798

123,752

77,79174,004

98,32378,965

103,792

93,303

113,31380,04966,090

119,420

140,41493,08537,662

119,375

127,710

110,804

65,12965,21490,47670,19890,04680,274102,21464,92356,946

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

21,32624,197

15,836

4,898

18,24819,08812,947

12,662

8,789

7,847

8,767

13,746

13,029

11,09915,126

9,144

36,042

51,631

28,76518,05843,75062,707

26,822

20,933

22,265

26,207

41,161

28,38231,01029,855

19,442

19,229
6,523

Property management fees

12,925

16,862

7,796

4,791

15,355

14,290

9,139

5,689

8,050

7,205

11,80010,097

12,489

9,973

6,643

Taxes

9,503

12,810

9,472

7,495

10,694

14,746

7,012

7,429

5,552

11,430

9,169

8,146

7,056

8,394

6,429

5,826

Utilities

10,342

19,034

6,186

4,932

12,571

15,666

6,661

4,728

6,942

5,977

5,929

6,808

7,466

7,102

5,258

4,870

Repairs and maintenance costs

1,951

1,773

185

289

3,815

16,031

2,986

1,081

171

495

8,825

1,527

2,792

1,904

88

929

203

301

137

88

208

314

156

116

159

119

159

260

225

154

136

125

Insurance
Trust fees and other expenses

1,116

849

4,987

461

1,104

1,657

867

1,888

1,388

979

5,277

1,542

980

2,327

886

953

③ＮＯＩ （＝①-②） (\ Thousands)

104,704

112,979

80,156

24,501

93,87384,09096,92956,85851,73972,11637,80475,41062,29383,45760,60646,861④Depreciation (\ Thousands)

37,35725,44622,308

4,879

13,962

18,441

15,827

13,217

15,967

6,268

9,123

17,177

20,705

10,984

10,774

12,174⑤Rental operating income （＝③-④） (\ Thousands)

67,34687,533

57,848

19,622

79,91165,648

81,102

43,64135,771

65,84828,68058,232

41,58772,47349,831

34,686⑥Capital expenditures (\ Thousands)

1,350

7,520

5,305

950

264

29,507

7,987

1,255

490

3,093

13,874

1,495

4,118

1,370

1,150

3,480

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

103,354

105,459

74,851

23,551

93,60954,582

88,94255,60351,24969,022

23,92973,91558,17582,08759,45643,380

Expense ratio （＝②／①）

25.6%
19,006
5,009
3.56%

31.4%
25,619
5,665
3.44%

26.4%
18,935
3,858
3.54%

42.4%
14,989
1,368
3.22%

31.8%
21,230
4,877
3.54%

42.7%
29,494
5,247
3.57%

21.7%
14,016
4,575
3.70%

26.9%
14,856
2,801
3.60%

30.1%
11,103
2,566
3.47%

26.7%
22,859
3,478
3.54%

52.1%
17,604
2,791
3.54%

27.3%
16,291
3,657
3.52%

33.2%
14,114
3,236
3.47%

26.3%
16,788
4,015
3.54%

24.3%
12,858
2,870
3.59%

29.1%
11,652
2,305
3.49%

158,190
13,182

317,870
26,489135,060
11,25554,6804,556

230,330
19,194

200,740
16,728120,000
10,00098,3998,199

88,4807,373

111,266
9,272

207,750
17,312

141,400
11,783

194,390
16,199160,510
13,375

158,270
13,18996,450
8,037

-

◆

◆

◆

◆

◆

-

◆

◆

◆

◆

◆

Property tax for the year 2010(\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr \( Thousands)
Reference：Amount of yearly avg.
Assets pledged as collateral

-

◆

◆

◆

-57-

a0511

a0151

a0411

a0071

a0141

a0611

a0641

a0551

a0331

a0571

【Reference】

Earnings Performance for the Individual Properties for the 11th Fiscal Period (May 1, 2010 to October 31, 2010) ：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area
KDX Hamacho
Nakanohashi
Building

Property Name
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
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)KDX Hamacho
Building

February 1, 2008 March 16, 2006
2,310
2,300
1.0%
1.0%
2,377
2,230
1,690
2,320
0.8%
1.1%
8
9
2,241.42
3,105.63
2,085.16
2,915.30

KDX Shinjuku 286
Building

June 1, 2007

FIK Minami
AoyamaKDX Funabashi
Building

KDX
Hamamatsucho
Dai-2 Building

Shin-toshin
Maruzen Building

a0081

a0231

a0591

a0261

a0381

a0311

※As of October 31, 2010

KDX Nihonbashi KDX Okachimachi
216 Building
Building

KDX Gobancho
Building

Kanda Kihara
Building

August 1, 2005 March 1, 2006 September 1, 2008 February 29, 2008 December 1, 2009 March 1, 2007 March 31, 2008 August 1, 2005

KDX Yotsuya
Building

May 1, 2006

KDX Iwamoto-cho
KDX NishiKDX MonzenKDX Kiba Building
Building
Shinjuku Building Nakacho Building

May 1, 2008

June 20, 2006

April 2, 2007 January 19, 2007

2,300
1.0%
2,344
2,050
1.0%
9
2,447.80
2,447.80

2,270
1.0%
2,264
2,210
1.1%
8
1,814.56
1,814.56

2,252
1.0%
2,444
1,990
0.9%
19
3,863.94
3,807.23

2,200
0.9%
2,265
1,920
0.9%
8
1,953.50
1,953.50

2,110
0.9%
2,161
1,560
0.7%
5
1,938.10
1,938.10

2,010
0.9%
2,003
1,990
0.9%
5
1,615.20
1,211.40

2,000
0.9%
2,141
1,790
0.9%
4
1,792.54
1,792.54

1,951
0.8%
2,000
1,480
0.7%
6
1,651.48
1,415.52

1,950
0.8%
1,871
1,870
0.9%
8
1,946.89
1,946.89

1,950
0.8%
1,955
2,280
1.1%
3
2,536.53
2,536.53

1,864
0.8%
1,834
1,310
0.6%
9
1,524.68
1,524.68

1,580
0.7%
1,590
1,470
0.7%
7
2,450.90
2,450.90

1,500
0.6%
1,536
1,210
0.6%
6
1,601.15
1,402.54

1,400
0.6%
1,428
1,270
0.6%
5
2,010.55
2,010.55

98.5%
100.0%
100.0%
100.0%
98.4%
100.0%
100.0%
100.0%
97.9%
91.9%

100.0%
87.5%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
64.3%
80.9%
100.0%
-

75.0%
87.5%
-

100.0%
100.0%
100.0%
100.0%
100.0%
89.7%
100.0%
100.0%
-

85.7%
85.7%
85.7%
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%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
75.0%
100.0%
92.7%-

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

87.6%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
84.4%
100.0%
184daysOccupancy ratio

93.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

93.9%
100.0%
100.0%
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%
77.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

73,06593,48089,46566,937

105,830

64,91066,68068,502

67,537

48,76367,703

98,11254,58869,081

46,71654,62061,865

81,90872,78360,38788,31456,95053,471

61,43658,19043,682

61,556

88,61750,12260,24240,192

46,241

Lease Information

As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
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 11th Fiscal Period

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

11,20011,572

16,681

6,549

17,516

7,960

13,209

7,065

9,347

5,081

6,146

9,495

4,465

8,838

6,524

8,379

21,11725,62926,15019,76931,843

20,406

16,867

15,712

24,542

12,16018,692

25,315

10,453

18,79914,952

13,786

Property management fees

7,334

8,992

7,401

5,139

13,043

4,825

6,463

5,858

5,901

4,504

6,097

9,247

4,082

5,912

4,611

4,911

Taxes

5,786

7,446

8,871

5,757

7,844

8,432

4,884

5,027

3,326

4,317

4,498

6,594

3,177

5,030

4,727

3,319

Utilities

5,148

4,669

6,473

7,634

4,216

8,523

4,664

4,603

3,363

4,516

2,789

5,055

6,190

2,816

4,624

3,481

Repairs and maintenance costs

846

1,198

987

862

1,475

1,387

65

217

9,250

409

914

934

45

2,270

2,022

257

Insurance

140

172

145

86

222

93

99

88

75

74

92

131

66

114

85

109

Trust fees and other expenses

2,340

1,345

1,109

3,708

733

1,003

750

1,156

1,472

65

2,034

2,214

266

846

24

41

③ＮＯＩ （＝①-②） (\ Thousands)

51,94867,85063,31547,16773,98744,504

49,81352,78942,99436,60249,01072,797

44,13450,281

31,76340,833④Depreciation (\ Thousands)

11,857

22,204

7,485

6,813

19,079

4,351

7,347

11,224

7,800

9,949

15,552

8,533

13,076

16,764

6,792

9,447

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

40,09045,64655,82940,35454,90740,15342,46541,56535,19426,65333,45764,26431,05733,517

24,971

31,386⑥Capital expenditures (\ Thousands)

6,048

13,790

2,681

1,238

13,335

2,552

1,094

-

13,2362,979

28,703

1,310

-

2,512

1,340

-

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

45,89954,06060,63445,92960,651

41,951

48,71852,78929,75833,623

20,306

71,487

44,13447,76930,42340,833

Expense ratio （＝②／①）

28.9%
11,573
2,551
3.49%

27.4%
14,893
3,292
3.52%

29.2%
17,743
3,117
3.49%

29.5%
11,514
2,328
3.48%

30.1%
15,694
3,682
3.48%

31.4%
16,843
2,232
3.44%

25.3%
10,386
2,377
3.57%

22.9%
10,053
2,475
3.61%

36.3%
6,648
2,616
3.87%

24.9%
8,634
1,742
3.57%

27.6%
8,995
2,381
3.52%

25.8%
13,188
3,487
3.56%

19.2%
6,353
2,014
3.69%

27.2%
10,061
2,504
3.63%

32.0%
9,444
1,601
3.43%

25.2%
6,633
1,948
3.57%

130,030
10,835

134,170
11,180169,080
14,09071,790
5,982

160,670
13,38981,7106,809

70,9005,908

31,1902,599

64,4005,366

55,2304,602

80,430
6,702

106,330
8,860

19,6801,640

85,8507,154

69,9505,829

61,470
5,122

◆

◆

◆

Property tax for the year 2010(\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr \( Thousands)
Reference：Amount of yearly avg.
Assets pledged as collateral

-

◆

-

◆

◆

-

-

◆

-

-

◆

-

◆

-58-

a0521

a0341

a0351

a0281

a0581

a0121

a0421

a0531

a0541

a0441

【Reference】

Earnings Performance for the Individual Properties for the 11th Fiscal Period (May 1, 2010 to October 31, 2010) ：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area
KDX Kanda
Misaki-cho
Building

Property Name
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
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)

a0241

a0251

a0361

※As of October 31, 2010

Other Regional Areas

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX Nogizaka
Building

February 1, 2008 March 1, 2007 March 1, 2007 July 14, 2006
1,380
1,305
1,155
1,065
0.6%
0.6%
0.5%
0.5%
1,385
1,225
1,303
1,129
980
1,070
821
829
0.5%
0.5%
0.4%
0.4%
7
10
7
5
1,339.46
2,747.28
2,177.79
1,250.12
1,164.27
2,747.28
2,099.06
976.64

KDX Nagoya
Sakae Building

Portus Center
Building

Karasuma Building

July 1, 2009

September 21, 2005

June 1, 2007

7,550
3.2%
7,702
4,710
2.2%
14
6,923.12
6,251.45

5,570
2.4%
4,740
4,590
2.2%
27
11,569.21
10,867.51

5,400
2.3%
5,451
5,020
2.4%
36
8,555.73
7,978.03

90.3%
90.3%
72.3%
-

93.9%
88.5%
88.5%
93.4%
100.0%
100.0%
94.6%
97.1%
100.0%
100.0%

93.2%
93.9%
86.1%
93.0%
98.1%
98.6%
100.0%-KDX HakataMinami Building

KDX Kitahama
Building

February 1, 2008 February 1, 2008
4,900
2,220
2.1%
1.0%
4,837
2,239
3,840
1,670
1.8%
0.8%
42
8
10,094.83
3,993.81
8,134.70
3,850.54

KDX Sendai
Building

KDX Minami
Semba Dai-1
Building

KDX Minami
Semba Dai-2
Building

KDX Niigata
Building

June 1, 2007

May 1, 2006

May 1, 2006

March 1, 2007

2,100
0.9%
2,182
1,470
0.7%
29
3,957.56
3,907.85

1,610
0.7%
1,487
1,090
0.5%
9
3,108.16
2,584.32

1,560
0.7%
1,384
1,150
0.5%
24
2,693.72
2,693.72

1,305
0.6%
1,465
868
0.4%
20
4,058.00
2,655.32

Occupancy ratio

86.9%
100.0%
100.0%
100.0%
100.0%
86.9%-

100.0%
100.0%
100.0%
100.0%
88.6%
100.0%
100.0%
100.0%-

96.4%
100.0%
85.6%
85.6%
85.6%
85.6%
85.6%
96.4%
-

78.1%
78.1%
100.0%
87.7%
100.0%
100.0%
87.7%
100.0%
100.0%-

Operating periods

184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

34,604

63,04852,21429,731

150,586

288,752

31,95053,663

44,95225,436

126,965

228,444

174,096

Lease Information

As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
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 11th Fiscal Period

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

80.6%
86.2%
94.4%
95.8%
95.4%
95.4%
-

96.4%
96.4%
96.4%
100.0%
88.1%
88.1%
-

98.7%
92.8%
96.6%
91.2%
86.2%
93.7%
97.1%
-

83.1%
83.1%
84.4%
96.9%
91.6%
87.2%
100.0%
100.0%
100.0%-

100.0%
94.1%
82.1%
88.1%
91.2%
94.1%
93.6%
93.6%
90.0%
-

65.4%
64.3%
62.2%
73.2%
76.2%
61.0%
71.2%
83.9%
-

184days184days184days184days184days184days184days

205,476

171,725

86,545

89,15753,16857,21951,513

148,185

68,43275,92341,042

42,78044,786

2,654

9,384

7,262

4,295

23,62060,307

31,37923,54018,112

13,23312,126

14,438

6,727

9,293

18,18821,891

14,87856,703135,034

66,40951,74430,541

29,881

22,214

21,411

27,469Property management fees

3,731

6,491

11,497

3,582

16,10974,887

20,643

15,639

8,007

11,908

6,756

5,749

11,577

Taxes

2,756

3,950

4,246

3,378

22,94025,521

21,16910,054

5,241

7,480

7,145

5,850

8,564

Utilities

2,306

5,646

4,634

3,174

16,883

23,686

19,373

20,873

10,229

7,353

6,995

5,999

5,091

Repairs and maintenance costs

272

1,022

575

4,568

114

3,685

1,949

3,261

1,080

529

349

2,281

915

Insurance

66

151

103

65

380

2,401

446

476

182

220

167

147

250

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

160

925

835

110

275

4,850

2,827

1,440

5,799

2,390

799

1,381

1,071

25,31144,85930,322

14,85393,883

153,717

139,066

119,981

56,00359,27530,95435,80824,043④Depreciation (\ Thousands)

4,407

24,331

9,953

6,275

71,226

104,609

29,051

32,73819,37718,01919,301

21,40812,348⑤Rental operating income （＝③-④） (\ Thousands)

20,904

20,52820,3698,577

22,656

49,108110,015

87,242

36,62541,255

11,652

14,40011,694⑥Capital expenditures (\ Thousands)

1,295

6,241

1,481

5,266

650

7,957

7,112

7,662

4,181

1,907

2,088

1,752

-

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

24,016

38,61828,841

9,587

93,233

145,759

131,954

112,319

51,821

57,36728,866

34,05524,043

Expense ratio （＝②／①）

26.9%
5,511
1,222
3.53%

28.8%
7,892
2,202
3.49%

41.9%
8,484
1,684
3.23%

50.0%
6,754
1,093
3.68%

37.7%
45,881
4,989
3.31%

46.8%
51,041
9,029
3.13%

32.3%
42,279
7,031
3.42%

30.1%
20,112
5,953
3.47%

35.3%
10,482
2,925
3.38%

33.5%
14,953
3,029
3.40%

41.8%
14,293
1,716
3.23%

37.4%
11,701
1,898
3.32%

53.3%
16,6741,541
2.99%

46,1403,845

141,590
11,799109,860
9,155

50,8704,239

94,2707,855

527,651
43,970229,180
19,098140,450
11,704

167,760
13,980

192,400
16,033140,130
11,677

122,820
10,235249,590
20,799

◆

-

◆

◆

◆

-

Property tax for the year 2010(\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

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

-

Assets pledged as collateral

-

◆
◆
◆
The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.

-59-

b0191

b0031

b0341

b0181

c0011

c0021

67

【Reference】

Earnings Performance for the Individual Properties for the 11th Fiscal Period (May 1, 2010 to October 31, 2010) ：184days

Type

Residential Properties

Location

Tokyo Metropolitan Area

Property Name

Residence
Charmante
Tsukishima

Acquisition Date

May 1, 2006

Other Regional
Tokyo Metropolitan Area
Areas

Court Mejiro

GraditoKawaguchi

Venus
Hibarigaoka

Frame
Jinnan-zaka

KDX Yoyogi
Building

Total of 67
Properties

August 1, 2005 June 30, 2006 December 8, 2005 August 1, 2005 September 30, 2005

Price Information

5,353
2.3%
5,110
4,480
2.1%
1
7,711.14
7,711.14

1,250
0.5%
1,194
950
0.5%
19
2,046.79
1,948.31

1,038
0.4%
1,024
959
0.5%
2
1,619.34
1,619.34

1,800
0.8%
1,875
1,420
0.7%
114
12,829.64
11,851.42

9,900
4.2%
9,910
9,750
4.7%
11
4,655.71
4,655.71

2,479
1.1%
2,533
1,900
0.9%
10
1,182.14
1,120.30

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

95.2%
95.2%
85.3%
96.1%
100.0%
95.1%
100.0%
95.0%
100.0%
85.1%

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

92.4%
96.3%
96.5%
98.9%
88.7%
93.0%
94.4%
98.7%
84.6%
82.7%

100.0%
100.0%
93.6%
96.0%
97.9%
97.9%
100.0%
91.7%
100.0%
100.0%

94.8%
87.2%
100.0%
75.9%
91.7%
100.0%
100.0%
100.0%
100.0%
87.1%

Operating periods

184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

166,441

40,53632,93689,429290,095

63,813

8,158,273

Rental revenues

146,882

37,08932,80980,484

262,159

55,501

7,079,120

Other operating revenues

19,558

3,447

127

8,944

27,9358,311

1,079,153
2,353,302

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)233,281100.0% *Percentage are rounded to the first decimal place.
233,725
209,597
100.0%
814
267,737.33
250,641.16

Occupancy ratio
Lease Information

As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
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 11th Fiscal Period②Property-related expenses (\ Thousands)

93.6%
94.4%
94.7%
95.7%
95.6%
95.9%
96.9%
95.9%
95.3%
94.9%

35,149

9,041

6,383

47,29958,565

14,556

Property management fees

17,132

2,888

2,427

8,421

19,4294,293

798,500

Taxes

10,775

3,144

1,578

8,360

15,913

4,351

637,452

Utilities

1,326

768

373

1,920

21,083

3,856

631,337

Repairs and maintenance costs

4,194

581

1,112

20,80533

400

147,911

430

100

66

458

242

57

15,995

Trust fees and other expenses

1,289

1,558

825

7,332

1,863

1,596

122,103③ＮＯＩ （＝①-②） (\ Thousands)

131,292

31,49526,552

42,130231,529

49,256

5,804,971④Depreciation (\ Thousands)

45,522

11,31010,02622,88656,917

9,249

1,425,327⑤Rental operating income （＝③-④） (\ Thousands)

85,77020,184

16,525

19,243

174,61240,007

4,379,644

-

330

-

22,022-

3,165

312,127⑦ＮＣＦ （＝③-⑥） (\ Thousands)

131,292

31,16426,552

20,107

231,529

46,091

5,492,843

Expense ratio （＝②／①）

21.1%
21,551
5,277
3.17%

22.3%
6,288
1,470
3.63%

19.4%
3,156
1,214
3.69%

52.9%
16,725
3,242
3.63%

20.2%
31,822
10,645
3.67%

22.8%
8,701
2,307
3.62%

28.8%
1,334,354
287,220
3.52%

126,753
10,56274,6506,220

24,6902,057

339,440
28,28682,3306,860

39,160
3,263

10,238,133
853,177

Insurance⑥Capital expenditures (\ Thousands)

Property tax for the year 2010(\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

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

◆

Assets pledged as collateral※As of October 31,

Central Urban Retail Properties

-

-

◆

◆

-

-60-

a0091b0251

69【Reference】

Earnings Performance for the Individual Properties for the 11th Fiscal Period (May 1, 2010 to October 31, 2010) ：184days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Total of 2 sold
Properties

Property NameKDX Shinjuku-Gyoen
Building

Court Shin-Okachimachi

Acquisition Date

August 1, 2005

May 1, 2006

Total of 69
Properties

Price Information

Acquisition price (\ Millions)

1,610

878

2,488

-

Percentage of total portfolio

64.7%
1,710
1,569

35.3%
790
836

100.0%
2,500
2,406

-

116
-

△64
-

52
-

-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
153days
57,61654,723
2,892

93.0%
88.5%
96.5%
100.0%
95.4%
90.7%
91.6%
100.0%
180days
26,31025,516793

162days
83,92680,2403,685184days
8,242,200
7,159,361
1,082,839

17,188
4,323
9,374
2,523
355

6,948
1,930
1,825
359
1,405

24,137
6,254
11,2002,883
1,761

2,377,439
804,754648,652
634,220
149,67384526
40,427
5,552
34,874390
40,037
29.8%
2,000
3.47%

54
1,372
19,361
9,431
9,929
19,361
26.4%
932
3.54%

139
1,899
59,78814,98444,804390
59,398
28.8%
2,932
3.49%

16,134
124,0035,864,760
1,440,311
4,424,448
312,517
5,552,242
28.8%
290,153
3.52%

-

-

-

-

Revenue from sale of the investment property \( Millions)

Costs of the investment property (\ Millions)
Gain / Loss on sale of real estate (\ Millions)
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)※As of October 31

Residential Properties

Occupancy ratio
Lease Information

As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
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 11th Fiscal Pe

Operating periods①Rental and other operating revenues (\ Thousands)
Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)⑦ＮＣＦ （＝③-⑥） (\ Thousands)
Expense ratio （＝②／①）
Property tax for the year 2010(\ Thousands)

Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.
Assets pledged as collateral

Note:The Investment Corporation has sold KDX Shinjuku-Gyoen Building on September 30, 2010 and Court Shin-Okachimachi on October 27, 2010.

-61-

a0471

a0651【Reference】
Earnings Performance for the Individual Properties for the 11th Fiscal Period (May 1, 2010 to October 31, 2010)：184days※As of October 31, 2010

Type
Location
KDX ShinYokohama 381
Building Annex
Tower

Property NameKDX ShinYokohama 381
Building

Acquisition Date

February 1, 2008 November 18, 2009

Total

Price Information

Acquisition price (\ Millions)

4,700

1,100

5,800

Net book value (\ Millions)

4,830

1,097

5,927

30
5,684.84
5,684.84

22,447.37
2,447.37

32
8,132.21
8,132.21

100.0%
100.0%
100.0%
92.1%
97.5%
94.6%
184days
135,790

100.0%
100.0%
184days
52,652100.0%
100.0%
100.0%
92.1%
97.5%
94.6%
184days
188,442

Rental revenues

111,286

46,562

157,849

Other operating revenues

24,503

6,090

30,59334,242

12,697

46,940Property management fees

10,3904,071

14,461

Taxes

10,0993,866

13,966

Utilities

4,250

Appraisal value at the end of period (\ Millions)
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)Occupancy ratio

Lease Information

As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
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 11th Fiscal Period

Operating periods①Rental and other operating revenues (\ Thousands)②Property-related expenses (\ Thousands)

11,434

3,675

15,109Repairs and maintenance costs

889

447

1,337

Insurance

293

79

373

Trust fees and other expenses

1,135

557

1,692

③ＮＯＩ （＝①-②） (\ Thousands)

101,547

39,955

141,502④Depreciation (\ Thousands)

35,764

10,01645,781⑤Rental operating income （＝③-④） (\ Thousands)

65,78229,93895,720⑥Capital expenditures (\ Thousands)

2,322

491

2,813

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

99,22425.2%
20,0884,843
3.57%

39,464
24.1%
7,732
1,889
3.59%

138,68824.9%
27,8206,733
3.57%

188,930
15,74428,4902,374

217,420
18,118

Expense ratio （＝②／①）
Property tax for the year 2010(\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.
Assets pledged as collateral

Note: Starting from the eleventh fiscal period, A-47 KDX Shin-Yokohama 381 Building and A-65 KDX Shin-Yokohama 381 Building Annex Tower are indicated collectively as one pro-62-

(Reference)Borrowings
Borrowings on a financial institution basis as of October 31, 2010 are as follows.
Classification

LenderDrawndown Date

Balance at theBalance at theEnd of Previous
End of Period
Period(\Thousands)(\Thousands)

Average
Interest
Rate(Note 1)

Last Repayment
Date

Short-Term Payable
Current Potion of Long-Term Payable
Long-Term Payable

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 26, 2009
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 30, 2009
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
January 29, 2010
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
February 26, 2010
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
April 30, 2010
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
July 30, 2010
Mitsubishi UFJ Trust and Banking Corporation
October 29, 2010
Sub Total
The Chuo Mitsui Trust and Banking Co., Ltd.
August 1, 2005
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
Resona Bank, Ltd.
October 31, 2008
Sumitomo Mitsui Banking Corporation
July 31, 2008
Mitsubishi UFJ Trust and Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
February 29, 2008
Aozora Bank, Ltd.
June 30, 2008
The Chuo Mitsui Trust and Banking Co., Ltd.
September 22, 2008
Aozora Bank, Ltd.
July 15, 2008
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
September 30, 2008
The Norinchukin Bank
April 17, 2007
The Chuo Mitsui Trust and Banking Co., Ltd.
April 30, 2009
Aozora Bank, Ltd.
May 1, 2006
Mitsui Sumitomo Insurance Co., Ltd.
Resona Bank, Ltd.
April 30, 2009
Mitsubishi UFJ Trust and Banking Corporation (Note 3) July 14, 2006
Sumitomo Mitsui Banking Corporation(Note 3) July 31, 2008
The Chuo Mitsui Trust and Banking Co., Ltd.
(Note 3)
Resona Bank, Ltd.
(Note 3)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(Note 3) February 29, 2008
The Chuo Mitsui Trust and Banking Co., Ltd.
(Note 3) September 1, 2008
Sumitomo Mitsui Banking Corporation(Note 3) March 31, 2008
The Chuo Mitsui Trust and Banking Co., Ltd.
(Note 3)
Aozora Bank, Ltd.
(Note 3) April 30, 2009
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 26, 2010
Sub Total
Development Bank of Japan Inc.
May 1, 2006
Development Bank of Japan Inc.
September 1, 2006
The Norinchukin Bank
December 1, 2006
The Chuo Mitsui Trust and Banking Co., Ltd.
April 2, 2007
Sumitomo Mitsui Banking Corporation
January 10, 2008
The Chuo Mitsui Trust and Banking Co., Ltd.
May 1, 2008
Resona Bank, Ltd.
June 30, 2008
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
February 27, 2009
Development Bank of Japan Inc.

1,500,000
2,500,000
1,000,000
1,300,000
500,000
1,000,000
1,000,000
8,800,000
3,750,000
3,750,000
1,500,000
500,000
500,000
1,300,000
1,400,000
800,000
2,000,000
1,000,000
1,250,000
2,000,000
2,000,000
1,500,000
1,500,000
1,500,000
1,000,000
1,000,000
1,000,000
2,200,000
1,000,000
300,000
1,500,000
1,000,000
3,000,000
2,000,000
3,500,000
43,750,000
5,000,000
3,000,000
2,500,000
2,000,000
2,500,000
1,000,000
1,500,000
3,000,000
480,000
960,000

1,300,000
500,000
1,000,000
1,000,000
1,500,000
1,000,000
6,300,000
1,300,000
1,400,000
800,000
2,000,000
1,000,000
1,250,000
2,000,000
2,000,000
1,500,000
1,500,000
1,500,000
1,000,000
1,000,000
1,000,000
2,200,000
1,000,000
300,000
1,500,000
1,000,000
3,000,000
2,000,000
3,500,000
1,500,000
35,250,000
5,000,000
3,000,000
2,500,000
2,000,000
2,500,000
1,000,000
1,500,000
3,000,000
470,000
940,000

Aozora Bank, Ltd.

April 30, 2009

2,000,000

2,000,000

2.291 April 27, 2012

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation

October 26, 2009
October 30, 2009
December 8, 2009
January 13, 2010
January 29, 2010

980,000
1,960,000
500,000
1,000,000
1,176,000

960,000
1,920,000
500,000
1,000,000
1,152,000

2.424 October 26, 2013
2.445 October 30, 2013
1.671 December 8, 2012
1.901 January 15, 20132.173 January 30, 2015

Aozora Bank, Ltd.

February 18, 2010

1,500,000

1,500,000

1.899 February 18, 2013

February 18, 2010

2,242,500
1,657,500
975,000
487,500
2,000,000
38,418,500
90,968,500

2,185,000
1,615,000
950,000
475,000
1,950,000
500,000
3,700,000
3,700,000
2,500,000
500,000
49,017,000
90,567,000

2.190 February 18, 2015

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

April 2, 2010
July 30, 2010

October 29, 2010

Payment
MethodUsage

Remarks

1.691 October 26, 2010
1.691 October 30, 2010
1.291 January 29, 2011
1.593 February 28, 2011
1.391 April 28, 2011
April 30, 2011
1.179 July 31, 2011
1.140 October 31, 2011

Full on(Note 2)maturity

Secured/
Unguaranteed

Full on(Note 2)maturity

Secured/
Unguaranteed

1.288 July 31, 2010

1.565 October 31, 2010
1.870 January 31, 2011

1.366 February 28, 2011
1.987 February 28, 2011
1.713 March 22, 2011
1.867 March 31, 2011
1.818 March 31, 2011
1.646 April 16, 2011
2.225 April 28, 2011
2.199 April 30, 20112.230 April 30, 2011
2.149 July 13, 2011
1.992 July 31, 2011

1.429 August 31, 2011
1.775 September 1, 2011
1.609 September 30, 2011
1.559
2.291 October 31, 2011
1.246 October 31, 2011
2.731 April 30, 2016
2.124 August 31, 2013
1.964 November 30, 2011
1.875 April 2, 2012
1.503 January 10, 2012
1.905 November 1, 2011
2.150 June 30, 2012
2.263 December 28, 2012
2.071 February 29, 2012
2.040 August 31, 2012

Full onmaturity(Note 4)(Note 5)Full onmaturity(Note 6)(Note 7)Full on (Note 2)
maturity

Secured/
Unguaranteed(Note 8)Full onmaturity(Note 9)2.220 April 2, 2015
1.488 July 31, 2013
1.660 January 31, 2014
1.731 July 31, 2014
1.450 October 31, 2012
1.463 October 31, 2013

(Note 10)Full onmaturity

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. Borrowings listed in the current potion of long-term payable were listed in long-term payable in the previous fiscal period.
4. Repayment Method: August 31, 2009 to August 31, 2011: repayment of 10,000 thousand yen every 6 months, and February 29, 2012: repayment of 450,000 thousand yen
5. Repayment Method: August 31, 2009 to February 29, 2012: repayment of 20,000 thousand yen every 6 months, and August 31, 2012: repayment of 880,000 thousand yen
6. Repayment Method: February 26, 2010 to August 31, 2013: repayment of 20,000 thousand yen every 6 months, and October 26, 2013: repayment of 840,000 thousand yen
7. Repayment Method: January 29, 2010 to July 31, 2013: repayment of 40,000 thousand yen every 6 months, and October 30, 2013: repayment of 1,680,000 thousand yen
8. Repayment Method: April 30, 2010 to October 31, 2014: repayment of 24,000 thousand yen every 6 months, and January 30, 2015: repayment of 960,000 thousand yen
9. Repayment Method: February 26, 2010 to August 31, 2014: repayment of 137,500 thousand yen every 6 months, and February 18, 2015: repayment of 4,125,000 thousand yen
10. Repayment Method: August 31, 2010 to February 28, 2015: repayment of 50,000 thousand yen every 6 months, and April 2, 2015: repayment of 1,500,000 thousand ye-63-