KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED April 30, 2017 (REIT)(November 1, 2016 to April 30, 2017)
June 12, 2017
Kenedix Office Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
Representative:

Naokatsu Uchida, Executive Director

Asset Management Company: Kenedix Real Estate Fund Management, Inc.
Representative:

Masahiko Tajima, President & CEO

Inquiries:

Jiro Takeda, Head of Planning Division, Office REIT Department
TEL +81-3-5623-8979

Planned submission of semiannual securities report: July 28, 2017

Planned start of distribution payments: July 13, 2017

Preparing presentation material:

Yes･NoHold a financial brief meeting:Yes･No (for institutional investors and analysts)

1. PERFORMANCE FOR THE FISCAL PERIOD ENDED April 30, 2017 (November 1, 2016 to April 30, 2017)(1) Business Results(Amounts are rounded down to the nearest one million yen.)(% indications are increase-decrease rate of period-over-period.)
Operating Revenues

Operating Income

Ordinary Income

Net Income

For the six months ended

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

April 30, 201715,039

11.5

5,901

2.0

4,751

3.2

4,750

3.2

October 31, 2016

13,491

(6.1)

5,788

(5.1)

4,603

(4.4)

4,601

(4.4)

Net Income per unit

Return on Unitholders’ Equity

Ordinary Income toOperating Revenues

Ordinary Income to Total Assets

For the six months ended

Yen

%

%

%

April 30, 2017

11,733

2.2

1.2

31.6

October 31, 2016

11,365

2.2

1.1

34.1

(2) Distribution(Total distributions are rounded down to the nearest one million yen.)
Distributions per Unit
(Excluding Excess of
Earnings)

Total Distributions(Excluding Excess of
Earnings)

Distributions in
Excess of Earnings
per Unit

For the six months ended

Yen

Millions of Yen

Yen

Millions of Yen%%

April 30, 2017

11,733

4,750

0

0

100.0

2.2

October 31, 2016

11,365

4,601

0

0

100.0

2.2

(3) Financial Position

Total Distributions in
Excess of Earnings

Distribution Ratio to
Unitholders’ Equity

Payout Ratio(Total assets and net assets are rounded down to the nearest one million yen.)
Total Assets

Net Assets

Net Assets to Total Assets

Net Assets per Unit

For the six months ended

Millions of Yen

Millions of Yen%

Yen

April 30, 2017

410,166

212,98651.9

526,041

October 31, 2016

413,031

212,82551.5

525,644(4) Cash Flow Situations(Amounts are rounded down to the nearest one million yen.)
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash Equivalents
at Period End

For the six months ended

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

April 30, 2017

26,782(15,849)(8,101)

22,668October 31, 2016

7,472

(5,473)(1,338)

19,836This notice is an English-language translation of the original Japanese announcement on our website released on June 12, 2017. However, no assurance or warranties are given with respect tothe accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

2．FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING October 31, 2017 (May 1, 2017 to October 31, 2017)(% indications are increase-decrease rate of period-over-period.)
Operating Revenues(Millions of Yen)%

For the six months ending
October 31, 2017

Operating Income(Millions of Yen)

13,788(8.3)

Ordinary Income(Millions of Yen)
%

5,995

1.6

%
4,941

Distributions per
Unit (Excluding
Excess of Earnings)

Distributions in
Excess of Earnings
per Unit

%

Yen

Yen

4.0

12,2000

Net Income(Millions of Yen)

4.0

4,939

(Reference) Estimated net income per unit for the fiscal period ending October 31, 2017: ¥12,200
Forecasted number of investment units issued and outstanding as of October 31, 2017: 404,885 units
Forecasted average number of investment units during the fiscal period ending October 31, 2017: 404,885 units*OTHER(1) Changes in Accounting Policies・Changes in Accounting Estimate・Retrospective Restatement(a) Changes concerning accounting policy accompanying amendments to accounting standards: No(b) Changes other than (a): No(c) Changes in accounting estimate: No(d) Retrospective restatement: No(2) Number of Investment Units Issued and Outstanding (including treasury units)(a) Number of investment units issued and outstanding at period end (including treasury units)
As of April 30, 2017: 404,885 units
As of October 31, 2016: 404,885 units(b) Number of treasury units at period end
As of April 30, 2017: 0 units
As of October 31, 2016: 0 units
Note: Please refer to page 26 “Notes on the Information per Unit” for the calculation of net income per unit.

*Details concerning actual status of auditing procedures
As of the disclosure of this financial report, auditing procedures for financial statements based on the Financial Instruments and Exchange
Act are underway.
*Explanation on the appropriate use of the forecast of results and other matters of special consideration
Readers are advised that actual operating revenues, operating income, ordinary income, net income and distributions per unit may differ
significantly from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of the forecast
distributions per unit. Please refer to page 10 “Preconditions and Assumptions for the Twenty-fifth Fiscal Period Ending October 31, 2017”
for the precondition of forecast for the twenty-fifth fiscal period ending October 31, 2017.

This notice is an English-language translation of the original Japanese announcement on our website released on June 12, 2017. However, no assurance or warranties are given with respect tothe accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

1. Basic Structure — Overview of Companies Related to the Investment Corporation
There were no major changes to the “Structure of Investment Corporation” from the most recent securities report (submitted on January
30, 2017), and accordingly this information has been omitted from this document.
2. Management Policy and Operating Conditions(1) Management Policy
There were no major changes to the “Investment Policy,” “Investment Strategy” and “Distribution Policy” from the most recent
securities report (submitted on January 30, 2017), and accordingly this information has been omitted from this document.
(2) Operating Conditions① Operating Conditions for the Twenty-fourth Fiscal Period (fiscal period ended April 30, 2017)
A. The Investment Corporation
Kenedix Office Investment Corporation (“the Investment Corporation”) was established on May 6, 2005 in accordance with the Act
on Investment Trusts and Investment Corporations (Law No. 198 of the year 1951, including amendments thereafter) (“Investment
Trust Act”). On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo Stock
Exchange, Inc. (“the Tokyo Stock Exchange”) with a total of 75,400 investment units issued and outstanding (Securities Code: 8972).
Subsequently, the Investment Corporation raised funds through public offerings and including seven global offerings. As a result, asof April 30, 2017, the end of the twenty-fourth fiscal period, the number of investment units issued and outstanding totaled 404,885
units.
The Investment Corporation appointed Kenedix Real Estate Fund Management, Inc. (“the Asset management Company”) as its asset
manager. In collaboration with the Asset Management Company, the Investment Corporation strives to maximize cash distribution toinvestors by securing stable earnings and sustainable investment growth. To this end, the Investment Corporation adopts the basic
policy of conducting flexible and dynamic investment stance that seeks to respond to its environment and market trends, andendeavors to ensure a timely response to opportunities.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review (fiscal period ended April 30, 2017), the Japanese economy continued to be on a mild recovery
trend backed by improved employment/income environment. The real GDP growth rate for January to March 2017 (The First
Preliminary Estimates) showed an annual 2.2% increase due to a rise in capital investments, etc. However, there are someuncertainties about the future such as the new U.S. administration’s policy management and heightened protectionism.
Concerning the office leasing market, demand for relocations for expanded floor area and better location choice continued to bestrong in the five central wards of Tokyo, leading to the steady improvement of the average vacancy rate and the rent level. The
average vacancy rate in Tokyo’s five central wards at the end of April 2017 announced by Miki Shoji Co., Ltd. was 3.39%, down
0.84 point year-on-year. Down 0.25 point compared with the end of the previous fiscal period (fiscal period ended October 31, 2016),
improvement in the average vacancy rate continues. In addition, the average rent in Tokyo’s five central wards (including newly-built
office buildings) has also been increasing for 40 consecutive months since January 2014. Moreover, the average vacancy rate ofmajor cities across Japan continued to show an improving trend.
In the office building transaction market, domestic investors such as listed J-REITs and real estate companies, overseas investors andsuch continued to show a strong appetite for property acquisitions. Due partially to ongoing competitive acquisition environment for
excellent properties, the cap rates continuously remain at low levels and transaction prices continue to remain high.
(b) Management Performance
As of the end of the previous fiscal period (fiscal period ended October 31, 2016), the Investment Corporation owned 99 properties(with a total acquisition price of ¥398,350 million) and equity interest in a Japanese silent partnership (tokumei kumiai) (“TK”)(acquisition price of ¥1,107 million). During the fiscal period under review (fiscal period ended April 30, 2017), the Investment
Corporation acquired three office buildings (ARK Mori Building: acquisition price of ¥4,169 million, Nishi-Shinbashi TS Building:acquisition price of ¥8,400 million, BR Gotanda: acquisition price of ¥ 2,200 million) and sold BUREX Toranomon (initialacquisition price of ¥1,750 million), KDX Nihonbashi Kabutocho Building (initial acquisition price of ¥11,270 million), KDX
Roppongi 228 Building (initial acquisition price of ¥3,300 million), KDX Kanda Misaki-cho Building (initial acquisition price of¥1,380 million), and KDX Gobancho Building (initial acquisition price of ¥1,951 million) (with a total disposition price of ¥19,910
million).
As a result, the number of properties owned as of April 30, 2017 (excluding the TK interest, same applies below.) amounts to 97(with a total acquisition price of ¥393,468 million). Looking at the portfolio distribution by property types, 92.3% was comprised of-3-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

office buildings, 5.6% of central urban retail properties, 1.4% of residential property and 0.7% of other property on an acquisition
price basis. The occupancy rate as of the end of the twenty-fourth fiscal period (fiscal period ended April 30, 2017) increased by 1.0
point from the end of the previous fiscal period (fiscal period ended October 31, 2016) to 97.9% and continuously maintained highoccupancy rate.
Operation and Management of Existing Properties
The Investment Corporation entrusts property management services for its entire portfolio as of the end of the fiscal period underreview (fiscal period ended April 30, 2017) (excluding ARK Mori Building and Shinjuku 6chome Building (Land)) to Kenedix
Property Management, Inc. By doing so, the Investment Corporation has strived to unify policies, specifications, procedures, pointsof contact, etc. for the provision of swift and quality services in the operation and management of properties.
In terms of leasing, in light of the trends of the economy and real estate market, the Investment Corporation sought out potential
demand by maintaining close relationships with brokers. Moreover, in order to maintain and raise the competitiveness of officebuildings, upgrading of air conditioning systems and repair of common areas, etc. were implemented according to plan.
Consequently, as of the end of the fiscal period under review (fiscal period ended April 30, 2017), the occupancy rate of theInvestment Corporation’s owned office buildings in the Tokyo Metropolitan Area stood at 97.7%, increased by 0.5 point comparedwith the end of the previous fiscal period (fiscal period ended October 31, 2016), and for the Investment Corporation’s officebuildings overall stood at 97.8%, continuously maintained high occupancy rate that exceeds the level of the end of the previous fiscal
period (fiscal period ended October 31, 2016).
The Investment Corporation proactively negotiated with the tenants that pay rents lower than market rent level among tenantsreaching rent revision period for upward rent revisions and incremental upward rent revisions surpassed the performance of theprevious fiscal period.
Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for the Investment Corporation’s office buildings was 1,125 (Note 1) (Note 2) as of the end of the fiscal
period under review (fiscal period ended April 30, 2017), diversifying tenant’s stratum further. Furthermore, floor area leased to the
top 10 office end-tenants as a proportion of total leased floor area of the entire portfolio was 8.6%. In addition, tenants of officebuildings are in various sectors. As a result, we believe the impact by a certain end-tenant vacating the property or sluggish
performance in certain sectors would have a relatively limited effect and will be able to maintain stable revenue.
Note 1: When a tenant is leasing more than one property, it is counted as one tenant and the number of tenants is indicated accordingly.
Note 2: The number of end-tenants for entire portfolio is 1,152 as of the end of the fiscal period (fiscal period ended April 30, 2017).

C. Capital Financing(a) Status of Investment Corporation Bonds
The Investment Corporation redeemed the full amount of the Second Series Unsecured Investment Corporation Bonds (totaling¥3,000 million and maturing in ten years) having reached maturity by cash on hand on March 15, 2017. As a result, the outstanding
investment corporation bonds totaled ¥6,300 million as of the end of the fiscal period under review (fiscal period ended April 30,2017).
(b) Status of Borrowings
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying maturity dates for its interest-bearing debt.
During the fiscal period under review (fiscal period ended April 30, 2017), the Investment Corporation undertook new borrowings of¥8,200 million for the repayment of ¥8,700 million that matured during the fiscal period, and repaid ¥500 million by cash on hand. As
a result, the balance of interest-bearing debt as of April 30, 2017 is ¥174,600 million, comprised of ¥168,300 million in borrowings(¥4,000 million in short-term borrowings (Note 1) and ¥164,300 million in long-term borrowings (Note 1)) and ¥6,300 million in
investment corporation bonds, and interest-bearing debt ratio is 42.6%. (Note 2)
Furthermore, as of the end of fiscal period under review (fiscal period ended April 30, 2017), ¥105,850 million out of ¥110,850 million
of long-term borrowings, which have floating interest rates, have been practically fixed by utilizing interest-rate swap agreements, etc.
in order to hedge risk of rise in the interest rate. In addition, the long-term debt ratio (Note 3) was 97.7% and the long-term fixedinterest debt ratio (Note 4) was 94.8%.
In addition, the Investment Corporation lengthened the average remaining term of its interest-bearing debt (Note 5), the weighted
average based on the balance of interest-bearing debt at the end of each fiscal period, from 4.1 years at the end of the twentieth fiscal
period (fiscal period ended April 30, 2015) to 4.7 years at the end of the fiscal period under review (fiscal period ended April 30, 2017).
Furthermore, the average interest rate (Note 5) was reduced from 1.45% to 1.16% during the same period, demonstrating a steady-4-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

reduction of financial costs.
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 one 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 therepayment date. The same classification criteria apply to other borrowings listed below.
Note 2: Interest-bearing debt ratio = Balance of Interest-bearing debt at the end of fiscal period / Total assets at the end of fiscal period ×100
Note 3: Long-term debt ratio= (Balance of long-term borrowings + Balance of investment corporation bonds) / (Total borrowings + Balance ofinvestment corporation bonds) ×100
Long-term debt ratio is rounded to the nearest first decimal place.
Note 4: 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) ×100
The balance of long-term fixed interest rate borrowings includes long-term borrowings with floating interest rates effectively fixed byutilizing interest-rate swap agreements and excludes long-term borrowings hedged by interest-rate cap agreements. Long-term fixedinterest debt ratio is rounded to the nearest first decimal place.
Note 5: Average remaining terms and average interest rates are the weighted average of the period-end remaining terms and interest rates
including upfront fees based on the balance of interest-bearing debt. Average remaining terms are rounded to the nearest first decimal
place and average interest rates are rounded to the nearest second decimal place respectively.

The balances of borrowings according to financial institutions as of October 31, 2016 and April 30, 2017 are as follows:
End of Twenty-third
End of Twenty-fourth
Ratio as of the End
Fiscal Period
Fiscal Periodof Twenty-fourth
Lender(as of October 31, 2016) (as of April 30, 2017)
Fiscal Period(Millions of Yen)
(Millions of Yen)(%) (Note 6)
Sumitomo Mitsui Banking Corporation
45,300.044,800.0
Development Bank of Japan Inc.
29,550.0
29,550.0
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
22,800.0
22,800.0
Sumitomo Mitsui Trust Bank, Limited
19,100.0
19,100.0
Aozora Bank, Ltd.
13,100.0
13,100.0
Resona Bank, Limited
10,250.0
10,250.0
Mitsubishi UFJ Trust and Banking Corporation
10,200.0
10,200.0
Mizuho Bank, Ltd.
8,200.0
8,200.0
Mizuho Trust & Banking Co., Ltd.
2,800.02,800.0
The Bank of Fukuoka, Ltd.
2,500.02,500.0
The Nishi-Nippon City Bank, Ltd.
1,700.0
1,700.0
The Hiroshima Bank, Ltd
1,000.0
1,000.0
The 77 Bank, Ltd
1,000.0
1,000.0
The Higashi-Nippon Bank, Limited
800.0
800.0
The Mie Bank, Ltd
500.0
500.0
Total
168,800.0
168,300.0
Note 6: Percentages as of the end of the fiscal period under review are rounded to the first decimal place.

26.6%
17.6%
13.5%
11.3%
7.8%
6.1%
6.1%
4.9%
1.7%
1.5%
1.0%
0.6%
0.6%
0.5%
0.3%
100.0%(c) Status of Credit Rating
The status of the credit ratings as of April 30, 2017 is as follows:
Credit Rating Agency
Details of the Ratings
Long-Term Issuer Rating
Japan Credit Rating Agency, Ltd. (JCR)
Ratings on Bonds
Preliminary Rating of Shelf Registration

AA- (Stable)
AA-(d) Status of Shelf Registration
The Investment Corporation filed a shelf registration statement for investment corporation bonds (excluding short-term
investment corporation bonds) on January 30, 2017. Details are as follows.
Planned Issue Amount¥100,000 million
Planned Issuance Period
February 7, 2017 to February 6, 2019
Acquisition funds for specified assets that are meant in Article 2-1 of Investment Trust Act,
repayment of borrowings, repayment of investment corporation bonds (including shortUse of Funds
term investment corporation bonds), refund of lease and guarantee deposits, funds to pay
for repairs and maintenance, working capital, etc.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥15,039
million, operating income of ¥5,901 million, ordinary income of ¥4,751 million and net income of ¥4,750 million for its twentyfourth fiscal period (fiscal period ended April 30, 2017).
Concerning the cash distributions for the fiscal period under review, special taxation measures for investment corporations (Article
67-15 of the Act on Special Measures Concerning Taxation (Law No. 26 of the year 1957, including amendments thereafter, “theSpecial Taxation Measures Act” hereinafter) are applied based on the cash distribution policies stipulated in the Articles ofIncorporation, and the Investment Corporation has decided to distribute the entire amount of unappropriated retained earnings
excluding the portion where cash distributions per unit would be less than ¥1. Therefore, the distributions per unit resulted in ¥11,733.
② Outlook for next fiscal period
A. Investment Environment
Although future Japanese economy is expected to see the continuous mild recovery, careful attention should be paid to uncertainties
concerning overseas economies and politics including the rise of policy interest rate in U.S. and trends in the new U.S.
administration’s policy management and such. Even in Japan as well, it will be necessary to pay close attention to various events
such as the risk of progressive yen appreciation due to the rise of protectionism in U.S., etc. and the impact of the “quantitative andqualitative monetary easing involving control over long- and short-term interest rates” policy that accompanies negative interest rates.
Concerning the office leasing market, the average vacancy rate in Tokyo’s five central wards at the end of April 30, 2017 announced
by Miki Shoji Co., Ltd. was 3.39%, and therefore the vacancy rate shows a trend toward improvement and the demand remains
steady. According to improvement in the vacancy rate, the average rent in Tokyo’s five central wards (including newly-built officebuildings) has been on a rising trend as well.
In the office building transaction market, although some point out the overheated state, transaction prices are forecasted to continue
remaining high with investors such as listed J-REITs, domestic real estate companies and foreign investors bearing yet a strong
appetite for acquisition, backed by the introduction of the negative interest rate, the robust leasing market and the favorable financing
environment.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting flexible and dynamic investment stance that seeks to respond to its
environment and market trends, and endeavors to ensure a timely response to opportunities. Based on this policy, the Investment
Corporation creates a property investment strategy, management strategy for existing properties, and financial strategy as set forth
below and implements them in a flexible and dynamic manner.
(a) Investment Strategy for New Properties and Sales Policy
The Investment Corporation aims for further expansion of its asset size, with the goal of “forming a firm portfolio focusing on midsized office buildings” and to become the “No. 1 J-REIT for mid-sized office buildings.” The Investment Corporation will keep midsized office buildings in the Tokyo Metropolitan Area as its focus, and with regard to central urban retail properties, invest only inthose that have rare value as an alternative to office buildings, are located in busy commercial areas and offer a certain amount ofoffice space. In addition, the Investment Corporation believes that maintaining an investment strategy which aims for a certain
degree of regional diversification, will be a foundation for constructing a superior portfolio and differentiating the Investment
Corporation from others in the business.
Moreover, when acquiring assets, the Investment Corporation will aim for the sound and stable growth of the portfolio, by securingcontinuous opportunities for acquiring properties and flexible acquisition methods by utilizing the Asset Management Company’s
own networks and the sponsor company’s support line through building multiple pipelines. Also, based on the premises of that theInvestment Corporation able to obtain opportunities for property acquisitions in the future, the Investment Corporation might invest
in TK interests etc. with the sponsor company on a conjoint basis. In addition, the Investment Corporation seeks to diversify
acquisition methods (direct acquisition, equity investment and co-acquisition with the sponsor company, mutual transaction with aview of asset reshuffle, etc.) to secure tactful acquisition of properties such as investments in warehousing related TK etc. incooperation with the sponsor company with consideration to the timing of funding or the consistency of the investment principles.
In selling properties, the Investment Corporation will examine the sale of properties individually in considering the use of funds for
replacement of assets through new property acquisition or fund-type investments. Of this, concerning residential properties, theInvestment Corporation will not only refrain from conducting new investments in principle, but will also place such properties on the
top of the list of properties to sell while taking into consideration the market environment, asset size and other factors. On the other-6-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

hand, the Investment Corporation will decide on the sale of office buildings and central urban retail properties individually byconsidering the revenue and profitability that take into account current and 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.
(b) Management Strategy for Existing Properties
Taking into consideration economic and real estate market trends, the Investment Corporation adopts “a tenant-oriented approach
which will lead to revenue” for its leasing activities with aims of ensuring a timely and flexible response as well as optimizing tenantsatisfaction. Accordingly, the Investment Corporation seeks to aim to maintain / increase cash flow by offering office environmentswith high tenant satisfaction. Based on the aforementioned in aim to become “the mid-sized office building of the choice,” the AssetManagement Company undertakes asset management activities as follows:・Take measures to maintain and raise competitiveness of properties
・Tailor leasing management according to the market environment
・Apply careful control of management and operating costs by taking advantage of portfolio size
・Ensure appropriate response to relevant laws and regulations
・Develop a proactive response to environmental issues
Take measures to maintain and raise competitiveness of properties
The Investment Corporation will implement operation and management in close contact with the actual properties and further
enhance the management level. Some specific examples of the operation and management are the installation of automated external
defibrillators (AEDs) and service delivery of public wireless LAN in consideration of business continuity plans (BCP) and its
corporate social responsibilities (CSR).
Furthermore, tenants at properties are positioned as important “customers” and the perspective of customer satisfaction (CS) is
applied to the management of properties. The Investment Corporation has conducted CS surveys targeting the tenants of its officebuildings six times in cooperation with J.D. Power Asia Pacific, Inc., an internationally recognized company that engages incustomer satisfaction evaluation (requesting those in charge of general affairs and employees of tenants to complete a questionnaireon the hard aspects such as the building and facilities as well as on the soft aspects such as management and operation, consisting ofmultiple items for evaluation and open-ended questions). The comprehensive satisfaction rating results for the Sixth CS survey
conducted in August 2015 is as follows.
The response of “Satisfied”, “Slightly Satisfied” remains high level nearly equivalent to the Fifth CS Survey conducted in August
2013.
＜Comprehensive Satisfaction Rating＞ (Note 1) (Note 2)
Slightly
SatisfiedSatisfied
Sixth CS Survey
24%
51%
Fifth CS Survey
26%
51%

Neither18%
18%

Slightly
Dissatisfied
6%
4%

Dissatisfied
1%
1%

Unknown1%
1%

Note 1: Target respondents for the survey are the administration officers of each tenant and tenant employees.
Note 2: Ratios are rounded to the nearest unit.

By conducting such surveys continuously and meeting tenant needs, the Investment Corporation is aiming to improve customer
satisfaction while also maintaining and improving the competitiveness and asset value of its properties, and to further enhance
profitability.
Tailor leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary investment target of the Investment Corporation, are thattenant turnover ratios are relatively high. Therefore, in the leasing aspect, the Investment Corporation implements leasing activities ina timely and flexible manner by adopting the basic policy of endeavoring to maximize revenues for the medium- to long-term
through maintaining occupancy rate, while taking into account economic and real estate market trends.
Concerning the solicitation of new tenants, the Investment Corporation strives to shorten the period of vacancy and boost theoccupancy rate by implementing flexible and dynamic leasing activities through sharing information closely with leasing brokers,
holding of previews, marketing directly to corporations, utilizing guarantee companies and other measures while closely watchingmarket conditions and timing of changes going forward.
Apply careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation will carefully control the quality of property management and reduce building maintenance and-7-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

operating costs by taking advantage of the portfolio size through cost reductions of building maintenance, reviews of building
maintenance companies, construction bidding and procurement of facilities and equipments, etc. via bulk orders.
Ensure appropriate responses to relevant laws and regulations
The Investment Corporation will gather information on the Building Standards Law (Law No. 201 of the year 1950, including
amendments thereafter) and other relevant laws and regulations and any future revisions, in a timely manner and will respond asnecessary while considering compliance.
Develop a proactive response to environmental issues
The Investment Corporation has established the environmental policies, and promotes environment-friendly investment management
operations through proactively participating in GRESB Real Estate Assessment and using certification and assessment systems byexternal institutions such as DBJ Green Building Certification.
In addition, the Investment Corporation is designated as a specified corporation pursuant to the Act on Rationalizing Energy Use.
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 soft services (operating and management services) in an aim to ensure the simultaneous pursuit of returnon investment and social benefits.
(c) Financial Strategy (Debt Financing)
The Investment Corporation continuously strives to improve the terms and conditions of existing borrowings, and aims for stablefinancial management by taking the following measures, etc.
・Reduce refinance risks by diversifying maturities of interest-bearing debts
・Have the procurement ratio of long-term fixed interest borrowings above a certain level・Control the interest-bearing debt ratio (Note) in a conservative manner (the Investment Corporation will aim to keep the interestbearing debt ratio to total assets (LTV) at less than 45% level as a rule. However, it will also remain open to the option ofincreasing LTV to the upper 40% level in the event of debt financing conducted for the purpose of acquiring competitive
properties or otherwise.)Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial
institutions, especially major banks, aiming for more robust financial management. In addition, the Investment Corporation aspires to
pay attention to the share of each bank and consider as appropriate the introduction of transactions with new banks based oncomparison with the conditions with currently transacting banks.
Note: Interest-bearing debt ratio = Balance of interest-bearing debt at the end of fiscal period / Total assets at the end of fiscal period×100(d) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aimof promptly providing a wide range of relevant information to investors, and make revisions to the information disclosure system
when needed. 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 website (URL: http://www.kdoreit.com/en/ ).
(e) Measures for Conflict of Interest Transactions
The Asset Management Company provides asset management services to not only the Investment Corporation but also otherinvestment corporations and real estate funds, etc. For this reason, the Asset Management Company has adopted rules on“preferential rights to study property information” when considering acquisition of properties and established a Pipeline Meetingwith Compliance Officer as a member in order to provide the asset management services according to certain rules, for the purposeof preventing arbitrary allocation of the information about the sale of real estate, etc. and preventing conflicts of interest arising
between the investment corporations and real estate funds, etc., which consign the management business to the Asset Management
Company. As mentioned the above, the Asset Management Company is taking appropriate measures for conflict of interest
transactions.
(f) Important Subsequent Events after the Closing Date
Not applicable-8-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(3) Risk Factors
There are no significant changes to the “Investment Risks” as described in the latest Securities Report submitted on January 30, 2017
and the disclosures are omitted.
(4) Outlook
Forecasts for the twenty-fifth fiscal period (May 1, 2017 to October 31, 2017) are presented as follows.
Operating Revenues¥13,788 million

Operating Income¥5,995 million

Ordinary Income¥4,941 million

Net Income¥4,939 million

Distributions per Unit

¥12,200

For preconditions and assumptions of the outlook, please see the following “Preconditions and Assumptions for the Twenty-fifth
Fiscal Period Ending October 31, 2017”.
Note: Forecast figures above are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income anddistributions per unit may differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does notguarantee payment of the forecasted distributions per unit.

-9-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Preconditions and Assumptions for the Twenty-fifth Fiscal Period Ending October 31, 2017
Preconditions and Assumptions
Calculation Period The twenty-fifth fiscal period: May 1, 2017 to October 31, 2017 (184 days) The Investment Corporation held 97 properties that are composed of the real estate and trust beneficiaryinterests in real estate as of April 30, 2017.
 It is based on the premise that there are no changes to the property portfolio such as sales of owned properties
Property Portfolio
and property acquisitions till the end of the twenty-fifth fiscal period.
 The Investment Corporation also holds the TK equity other than above. It assumes the refund of the TK equity
will not occur by the end of the twenty-fifth fiscal period.
 The actual results may fluctuate due to changes in the property portfolio.
 Rental revenues are estimated based on valid leasing agreements as of June 12, 2017 and by considering
variable factors, such as seasonal factors against the backdrop of historical performance, as well as leasing
conditions, such as the recent real estate market conditions, in addition to the difference in number ofOperating Revenues
operating days due to movements in existing investment assets.
 Dividends received of ¥64 million have been assumed with regard to the TK equity stated in the above“Property Portfolio”.
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments from tenants.
 Expenses related to rental business other than depreciation are based on the historic expenses, adjusted toreflect expense variables including seasonal factors.
 An amount of ¥1,317 million has been assumed for property and facility management fees (property
management and building maintenance fees, etc.).
 An amount of ¥1,139 million has been assumed for taxes and public dues (property tax and city planning tax,etc.). In addition, the property tax and city planning tax, etc. of the properties acquired on and after January 1,
2017 are allocated to the seller and buyer on a pro rata basis at the time of acquisition settlement, and theamount equivalent to the portion allocated to the buyer is included in the acquisition price of the property.
Therefore such taxes are not recorded as expenses for the twenty-fifth fiscal period. The impact when such
Operating Expenses
taxes are recorded as expenses is anticipated to amount to ¥26 million per fiscal period.
 An amount of ¥2,301 million has been assumed for depreciation expense.
 An amount of ¥445 million has been assumed for repairs, maintenance and renovation expenses.
Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by the AssetManagement Company for each property and considered essential for the period. Actual repairs, maintenanceand renovation expenses for the fiscal period may, however, differ significantly from estimated amounts due tounforeseen circumstances or emergencies.
 In general, property tax and city planning tax are allocated to the seller and purchaser on a pro rata basis at thetime of acquisition settlement. In the case of the Investment Corporation, an amount equivalent to the portion
allocated to the purchaser is included in the acquisition price of the property.
 Interest payable (including financing related expenses etc.) of ¥1,022 million has been assumed.
Non-Operating Expenses
 Amortization of investment unit issuance expenses of ¥19 million has been assumed.
Extraordinary Profit/Loss  Extraordinary profit/loss is not assumed.
 The balance of the borrowings and the investment corporation bonds as of June 12, 2017 is ¥168,300 millionand ¥6,300 million, respectively.
Borrowings and Of the borrowings as of June 12, 2017, a total of ¥14,000 million is due for repayment by the end of theInvestment Corporation
twenty-fifth fiscal period. It is assumed that all the borrowings will be refinanced.
Bonds
 Of the investment corporation bonds as of June 12, 2017, a total of ¥1,500 million is due for repayment by theend of the twenty-fifth fiscal period. It is assumed that all the investment corporation bonds will be redeemedwith funds raised by an issue of investment corporation bonds or debt financing, etc.
 Forecasts are based on the assumption that the number of investment units issued and outstanding as of April
30, 2017 is 404,885 units.
Investment Units Issued
 Forecasts are based on the assumption that the number of investment units issued and outstanding shall remain
and Outstanding
unchanged till the end of the twenty-fifth fiscal period.
 Distributions per unit are calculated in accordance with the distribution policy outlined in the Investment
Corporation’s Articles of Incorporation.
Distributions per Unit  Actual distributions per unit may differ significantly from forecasted figures due to a variety of reasons
including movements in investment assets, rental revenues impacted by tenant movements or incidence ofmajor unforeseen renovation expense.
Distributions in Excess
 The Investment Corporation does not currently anticipate distributions in excess of earnings.
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
Otherimpact forecast figures.
 Forecasts are based on the assumption that there will be no major unforeseen changes to economic trends andin real estate and other markets.

- 10 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

3. Financial Statements(1) Balance Sheets(Thousands of Yen)
Twenty-third Fiscal Period

Twenty-fourth Fiscal Period(As of October 31, 2016)(As of April 30, 2017)

AssetsCurrent assets
Cash and deposits

11,268,439

14,133,590

Cash and deposits in trust

9,442,126

9,699,090

Accounts receivable-trade330,775

329,429

Prepaid expenses

104,040

74,786

Other

11,362

10,727

21,156,743

24,247,623

19,465,902

17,752,301

Accumulated depreciation(4,599,804)(4,516,368)

Buildings, net

14,866,097

13,235,933

37,63932,618

Accumulated depreciation(13,384)(11,204)

Structures, net

24,254

21,413

390,920391,289

Accumulated depreciation(190,056)(201,162)

Machinery and equipment, net

200,864

190,127

Tools, furniture and fixtures

85,371

78,896

Accumulated depreciation(49,913)(46,241)

Tools, furniture and fixtures, net

35,45732,65536,424,212

29,504,025

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings

Structures

Machinery and equipment

Land
Buildings in trust

118,277,285 *2

118,049,614 *2

Accumulated depreciation(23,556,115)(24,813,898)

Buildings in trust, net

94,721,169

93,235,716

Structures in trust

380,114373,565

Accumulated depreciation(158,140)(165,322)

Structures in trust, net

221,974

208,242

Machinery and equipment in trust

1,700,363

1,687,226

Accumulated depreciation(766,617)(791,794)

Machinery and equipment in trust, net

933,746

895,432

Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net

439,064

456,418(234,952)(247,027)

204,111

209,391

241,213,445

245,227,423

-

2,183

388,845,334

382,762,544

Land leasehold

285,350

285,257

Land leasehold in trust

66,335353,847

Other

5,125

4,726

356,810

643,8311,093,584

1,087,688

Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

122,889

122,889

Long-term prepaid expenses

1,352,177

1,228,082

3,561

13,433Other- 11 -

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

Total investments and other assets

Twenty-third Fiscal Period

Twenty-fourth Fiscal Period(As of October 31, 2016)(As of April 30, 2017)

2,582,214

2,462,093

391,784,359

385,868,469

Investment corporation bond issuance costs

36,49831,016

Investment unit issuance expenses

54,15919,277

Total deferred assets

90,65750,293413,031,761

410,166,386

Accounts payable

1,366,552

1,152,792

Short-term loans payable

1,500,000

4,000,000

Current portion of investment corporation bonds

4,500,000

1,500,000

Current portion of long-term loans payable

21,200,000

22,750,000

Accounts payable-other

248,036

261,614

Accrued expenses

76,00575,121

Total noncurrent assets
Deferred assets

Total assets

Liabilities
Current Liabilities

Income taxes payable

838

794

Accrued consumption taxes

343,665

597,899

Advances received

2,143,523

2,170,062

Deposits received

2,896

69,924

Other

2,274

-

31,383,793

32,578,209

4,800,000

4,800,000

Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable

146,100,000

141,550,000

Tenant leasehold and security deposits

2,185,141

2,002,452

Tenant leasehold and security deposits in trust

15,736,451

16,249,464

977-

168,822,570

164,601,916

200,206,363

197,180,125

206,199,945

206,199,945

Reserve for reduction entry

2,024,673

2,024,673

Total voluntary reserve

2,024,673

2,024,673

Unappropriated retained earnings (undisposed loss)

4,601,756

4,750,760

Total surplus

6,626,429

6,775,433

212,826,375

212,975,379

Deferred gains or losses on hedges(977)

10,882

Total valuation and translation adjustments(977)

10,882

212,825,397 *1

212,986,261 *1

413,031,761

410,166,386

Other
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve

Total unitholders' equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets- 12 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(2) Statements of Income(Thousands of Yen)
Twenty-third Fiscal Period
May 1, 2016 to
October 31, 2016

Twenty-fourth Fiscal Period
November 1, 2016 toApril 30, 2017

Operating revenues
Rental revenues

11,362,345 *1

11,572,669 *1

Other rental revenues

2,067,427 *1

1,754,936 *1

Gain on sales of real estate, etc.

-

Dividends income
Total operating revenue

1,662,787 *2

61,73948,643

13,491,513

15,039,036

6,754,675 *1

6,527,688 *1

Operating expenses
Property related expenses
Loss on sales of real estate, etc.

-

Asset management fees

755,591

1,657,160 *2
766,673

Directors' compensation

8,400

8,400

Asset custody fees

22,264

22,390Administrative service fees

55,87955,841

Audit fees

11,80011,800

Other operating expenses

94,72687,163

Total operating expenses

7,703,337

9,137,118

5,788,175

5,901,917

Operating income
Non-operating income
Interest income

38

35

Dividends and redemption-prescription

940

816

Interest on refund364

4

Total non-operating income

1,343

855

864,908

819,103

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

76,194

66,587

Borrowing related expenses

176,510

153,773

Amortization of investment corporation bond issuance costs

5,879

5,481

Amortization of investment unit issuance expenses

56,481

34,882

Other

6,426

71,175

1,186,399

1,151,003

Ordinary income

Total non-operating expenses

4,603,119

4,751,770

Income before income taxes

4,603,119

4,751,770

Income taxes-current

1,371

1,240

Income taxes-deferred(7)8

Total income taxes

1,363

1,248

4,601,756

4,750,521-

238

4,601,756

4,750,760

Net income
Retained earnings at the beginning of a period
Unappropriated retained earnings (undisposed loss)- 13 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(3) Statements of Unitholders’ Equity
Twenty-third fiscal period (May 1, 2016 to October 31, 2016)(Thousands of Yen)
Valuation and translation
adjustments

Unitholders' equity
Surplus
Voluntary reserve

Unitholders'
capitalReserve for
reduction entry
Balance at the start of current
period206,199,945

Unappropriatedretained earnings
Total voluntary(undisposed loss)
reserve

Total surplus

Total valuation
Total unitholders' Deferred gains or
and translation
equitylosses on hedges
adjustments(4,328)(4,328)

Total net assets

1,544,521

1,544,521

4,815,255

6,359,776

212,559,722

212,555,394

480,151

480,151(480,151)---(4,335,103)(4,335,103)(4,335,103)(4,335,103)

4,601,756

4,601,756

4,601,756

4,601,756

Changes during the period
Provision of reserve for
reduction entry
Distribution from surplus
Net income
Items other thanunitholders' equity, net
Total changes during theperiodBalance at the end of current
period

3,350

3,350

3,350

-

480,151

480,151(213,499)

266,652

266,652

3,350

3,350

270,002* 206,199,945

2,024,673

2,024,673

4,601,756

6,626,429

212,826,375

(977)

(977)

212,825,397

Twenty-fourth fiscal period (November 1, 2016 to April 30, 2017)(Thousands of Yen)
Valuation and translation
adjustments

Unitholders' equity
Surplus
Voluntary reserve

Unitholders'
capitalReserve for
reduction entry
Balance at the start of current
period206,199,945

2,024,673

Unappropriatedretained earnings
Total voluntary(undisposed loss)
reserve

2,024,673

Total surplus

Total valuation
Total unitholders' Deferred gains or
and translation
equitylosses on hedges
adjustments

(977)

(977)

Total net assets

4,601,756

6,626,429

212,826,375

212,825,397(4,601,518)(4,601,518)(4,601,518)(4,601,518)

4,750,521

4,750,521

4,750,521

4,750,521

Changes during the period
Distribution from surplus
Net income
Items other thanunitholders' equity, net
Total changes during theperiodBalance at the end of current
period11,85911,85911,859---149,003

149,003

149,003

11,85911,859160,863* 206,199,945

2,024,673

2,024,673

4,750,760

6,775,433

212,975,379

10,882

10,882212,986,291- 14 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(4) Basis for Calculating Cash Distribution(Unit: Yen)
Twenty-fourth Fiscal Period

Twenty-third Fiscal Period(May 1, 2016 to October 31, 2016)(November 1, 2016 to April 30, 2017)I.

Retained earnings at the end of period

4,601,756,256

4,750,760,072

II.

Total Distribution(Distributions per Unit)

4,601,518,025(11,365)

4,750,515,705(11,733)

238,231244,367

In accordance with the policy stipulated in Article 35(1) of its Articles of Incorporation, the Investment
Corporation determines that the amount of
distribution shall exceed the amount equivalent to
90% of its distributable profit as stipulated in Article
67-15 of the Special Taxation Measures Act, andshall be up to the amount of its profits as the ceiling.
Following this policy, the Investment Corporation
has decided to distribute ¥4,601,518,025, themaximum integral multiple amounts of investment
units issued and outstanding of 404,885 units, up tounappropriated retained earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 35 (2) of
the Investment Corporation’s Articles ofIncorporation. In its fiscal period under review, theInvestment Corporation has decided not to distributecash in excess of distributable profit.

In accordance with the policy stipulated in Article 35(1) of its Articles of Incorporation, the Investment
Corporation determines that the amount of
distribution shall exceed the amount equivalent to
90% of its distributable profit as stipulated in Article
67-15 of the Special Taxation Measures Act, andshall be up to the amount of its profits as the ceiling.
Following this policy, the Investment Corporation
has decided to distribute ¥4,750,515,705, themaximum integral multiple amounts of investment
units issued and outstanding of 404,885 units, up tounappropriated retained earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 35 (2) of
the Investment Corporation’s Articles ofIncorporation. In its fiscal period under review, theInvestment Corporation has decided not to distributecash in excess of distributable profit.

III.

Retained Earnings brought forward to
the next period
Method of calculating the distribution
amount- 15 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(5) Statements of Cash Flows(Thousands of Yen)

Twenty-third Fiscal Period

Twenty-fourth Fiscal Period

May 1, 2016 to October 31, 2016

November 1, 2016 to April 30, 2017

Income before income taxes

4,603,119

4,751,770

Depreciation

2,275,342

2,289,241

Amortization of long-term prepaid expenses

170,760

150,023

Interest income

(38)

(35)

Interest expenses

941,102885,690

Amortization of investment unit issuance expenses

56,481

34,882

Amortization of investment corporation bond issuance expenses

5,879

5,481

Decrease (increase) in accounts receivable-trade

11,011

1,346

Decrease (increase) in consumption taxes refund receivable

53,578-Decrease (increase) in prepaid expenses(62,054)

29,253

Increase (decrease) in accounts payable292,408(292,454)

Increase (decrease) in accounts payable-other(4,717)

14,056

Increase (decrease) in accrued consumption taxes

343,665

254,234

Increase (decrease) in advances received

29,97324,264

Increase (decrease) in deposits received(51,263)

67,027

Changes in net property, plant and equipment from sale-

8,370,591

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

11,104,404(239,742)(25,928)

1,111

5,267

8,426,615

27,669,115

38

35(953,601)(885,563)

(805)

(843)

7,472,246

26,782,743(75,799)(98,251)(6,097,777)(15,569,726)-(293,196)

Payments of tenant leasehold and security deposits(80,696)(217,653)

Proceeds from tenant leasehold and security deposits

323,548

63,304

Payments of tenant leasehold and security deposits in trust(837,355)(731,381)

Proceeds from tenant leasehold and security deposits in trust

741,835

1,287,454

Net cash provided by (used in)operating activities

Decrease (increase) in long-term prepaid expenses
Other
SubtotalInterest income received
Interest expenses paid
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
Purchase of intangible assets-(289,809)

552,921-(5,473,322)(15,849,258)

Proceeds from short-term loans payable-

4,000,000

Repayment of short-term loans payable(1,000,000)(1,500,000)

Proceeds from long-term loans payable

16,500,000

6,200,000

Repayment of long-term loans payable(12,500,000)(9,200,000)-(3,000,000)

Payments of restricted bank deposits in trust
Proceeds from restricted bank deposits in trust
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities

Payments of investment corporation bond redemption(4,010)-

Dividends paid

(4,334,422)(4,601,179)

Net cash provided by (used in) financing activities(1,338,432)(8,101,179)

Net increase (decrease) in cash and cash equivalents

660,491

2,832,305

Cash and cash equivalents at beginning of period

19,175,542

19,836,034

Cash and cash equivalents at end of period

19,836,034

Payments of investment corporation bond issuance expenses- 16 -*

22,668,339*

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(6) Notes on the Going Concern
Not applicable(7) Important Accounting Standards
1. Evaluation standards and evaluation method of assets

Securities
Other securitiesThose with no fair value
Cost method through moving-average method
Concerning silent partnership (tokumei kumiai) (TK) interests, the method ofincorporating the amount of equity equivalent to the portion that corresponds to the net
gain or loss of TK is added.

2. Depreciation of fixed assets(1) Property, plant and equipment (includes trust assets)
The straight-line method is applied.
Useful lives of the assets ranging are as follows:
Buildings: 2 to 49 years
Structures: 2 to 45 years
Machinery and equipment: 3 to 17 years
Tools, furniture and fixtures: 3 to 20 years(2) Intangible assets (includes trust assets)
The straight-line method is applied.
Land leasehold: Fixed term land leasehold is amortized over a contractual period of 48
years and 9 months under the straight-line method.
(3) Long-term prepaid expenses
The straight-line method is applied.

3. Accounting policies for deferred assets(1) Investment unit issuance costs
Unit issuance costs are amortized over a period of 3 years.
(2) Investment corporation bond issuance costs
Bond issuance costs are amortized by applying the straight-line method for the entire
redemption period.

4. Accounting standards for revenues and expenses

Accounting method for property tax, etc.
Property-related taxes including property taxes and city planning taxes, etc. are imposed on
properties on a calendar year basis. These taxes are generally charged to rental expenses forthe said fiscal period, for the portion of such taxes corresponding to said period.
In connection with the acquisition of real estate including trust beneficiary interests in realestate during the fiscal period under review, the Investment Corporation included it’s pro rata
property portion for the year in each property acquisition price and not as rental expense. The
amount of property taxes included in acquisition prices for the previous fiscal period amounted
to ¥13,334 thousand and for the fiscal period under review amounted to ¥32,698 thousand.

5. Accounting for hedges(1) Hedge accounting method
The deferred hedge method is applied. However, the special treatment is applied for theinterest-rate swap and interest-rate cap agreements that meet the criteria.
(2) Hedging instruments and risks hedged
Hedge instruments
The Investment Corporation enters into interest-rate swap transactions.
The Investment Corporation enters into interest-rate cap transactions.
Risks hedged
Interest rates on debt.
(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its risk
management policies with the 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 the point at which effectivenessis assessed, the Investment Corporation compares the cumulative total of market changes
in the targeted objects of hedging or cash flow changes with the cumulative total of market
changes in the hedging instruments or cash flow changes. The Investment Corporation
then makes a decision based on the changes and other factors of the two.
However, concerning the interest-rate swap and interest-rate cap agreements that meet thecriteria for special treatment, the evaluation of effectiveness are omitted.

- 17 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

6. The scope of cash and cash equivalents on statementsof cash flows

7. Other significant accounting policies utilized in the
preparation of financial statements

For the purpose of cash flow statements, cash and cash equivalents consist of cash on hand,deposits received that can be withdrawn on demand, and short-term investments withoriginal maturities of 3 months or less, that are readily convertible to known amounts of cash
and present insignificant risk of a change in value.
(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities as well as revenues and expenses of financial assets held in theform of trust beneficiary interests in real estate and other assets are recorded in full in theInvestment Corporation’s balance sheets and statements of income.
Important line items included in accounting for financial assets and liabilities in theInvestment Corporation’s balance sheet are as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools,
furniture and fixtures in trust, land in trust and construction in progress in trust
3. Land leasehold in trust
4. Lease and guarantee deposits in trust
5. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption taxes are separately recorded. Non-deductible consumption taxes applicableto the acquisition of assets are included in the cost of acquisition for each asset.

- 18 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(8) Notes to the Financial Statements(Notes to the Balance Sheets)*1. Minimum unitholders’ equity pursuant to Article 67, paragraph 4 of the Act on Investment Trusts and Investment Corporations(Thousands of Yen)
Twenty-third Fiscal Period(as of October 31, 2016)

Twenty-fourth Fiscal Period(as of April 30, 2017)
50,00050,000*2. The amount of advanced depreciation of property, plant and equipment acquired by government subsidy, etc.
(Thousands of Yen)
Twenty-third Fiscal Period(as of October 31, 2016)
Buildings in trust

Twenty-fourth Fiscal Period(as of April 30, 2017)
26,230(Notes to the Statements of Income)*1. Breakdown of real estate rental business profit and loss

26,230(Thousands of Yen)
Twenty-third Fiscal Period
May 1, 2016 to October 31, 2016

Twenty-fourth Fiscal Period
November 1, 2016 to April 30, 2017

A. Rental and other operating revenues
Rental revenues
Leasing income

9,450,736

9,701,842

Common area charges

1,911,609

1,870,827

Subtotal

11,362,345

11,572,669

Other rental revenues
Parking space rental revenues

490,492

499,611

Utility charge reimbursement

1,136,867

978,129

Miscellaneous

440,067

277,195

Subtotal

2,067,427

1,754,936

13,429,773

13,327,605

Property management fees and facility management fees

1,280,694

1,315,879

Utilities

1,110,302

1,006,582

Taxes

1,111,203

1,122,460

Repairs and maintenance costs

582,716

436,606

Insurance

18,01818,202

Total rental and other operating revenues
B. Rental and other operating expenses
Property-related expenses

Trust fees

32,34832,832Others344,639

306,493

Depreciation

2,274,750

2,288,632

6,754,675

6,527,688

6,675,098

6,799,917

Total rental and other operating expenses
C. Rental operating profit (A – B)

- 19 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)*2. Gain and Loss on sale of real estate, etc.
Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016)
Not applicable
Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017)(Thousands of Yen)
(1) BUREX Toranomon
Revenue from sale of real estate, etc.

2,440,000

Cost of real estate, etc. sold1,734,619

Other sales expenses

24,670Gain on sale of real estate, etc.

680,709(2) KDX Nihonbashi Kabutocho Building
Revenue from sale of real estate, etc.

12,400,000

Cost of real estate, etc. sold11,104,404

Other sales expenses

313,518

Gain on sale of real estate, etc.

982,077(3) KDX Roppongi 228 Building, KDX Kanda Misaki-cho Building, KDX Gobancho Building (Note)
Revenue from sale of real estate, etc.

5,070,000

Cost of real estate, etc. sold6,635,971
91,189Other sales expenses

1,657,160

Gain on sale of real estate, etc.

Note: The property is sold to a single buyer under a single transaction agreement. The sale price for each property is not disclosed because the buyer
has not given consent.
(Notes to the Statements of Changes in Unitholders’ Equity)* Total number of authorized investment units and total number of investment units issued and outstanding
Twenty-third Fiscal Period
May 1, 2016 to October 31, 2016
Total number of authorized investment units
Total number of investment units issued andoutstanding

Twenty-fourth Fiscal Period
November 1, 2016 to April 30, 2017

2,000,000 units

2,000,000 units

404,885 units

404,885 units(Notes to the Statements of Cash Flow)* Reconciliation of balance sheet items to cash and cash equivalents at end of period in the cash flows statements(Thousands of Yen)
Twenty-third Fiscal Period
May 1, 2016 to October 31, 2016

Twenty-fourth Fiscal Period
November 1, 2016 to April 30, 2017

Cash and deposits

11,268,439

14,133,590

Cash and deposits in trust

9,442,126

9,699,090

Restricted bank deposits held in trust (Note)(874,531)(1,164,340)

Cash and cash equivalents

19,836,034

22,668,339

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

- 20 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on the Lease Transactions)Operating lease transactions(Lessor)(Thousands of Yen)
Twenty-third Fiscal Period
May 1, 2016 to October 31, 2016

Twenty-fourth Fiscal Period
November 1, 2016 to April 30, 2017

Unearned lease payments
Due within one year

1,444,094

1,679,760

Due after one year

9,350,987

9,345,602

Total

10,795,081

11,025,363(Notes on the Financial Instruments)
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 and undertaking the repayment of loans primarily through bank loans andthe issuance of investment corporation bonds and new investment units. The Investment Corporation makes use of derivative instruments primarily as arisk 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 manner that considers fully such factors as safety, liquidity, interest rate
conditions and cash flows.
(2) Financial Instruments and Respective Risks
Investment securities are TK interests, which are exposed to credit risk of the issuer and risk of fluctuation of value of real estate, etc.
Loans and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption dateof a maximum of about 11 years following the closing date. Although a certain portion of said liabilities are subject to interest rate fluctuation risks, theInvestment Corporation utilizes derivative instruments (interest-rate swap transactions, etc.) in order to hedge against such risks.
Derivative instruments are interest-rate swap and interest-rate cap transactions that are used to 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 or minimizing
the risk of interest rate increase. With regard to hedge accounting methods, hedging instruments and hedged items, hedge policy, and the method of
evaluation of hedge effectiveness, please see “5. 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 Interest Rates and Others)
The Investment Corporation uses interest-rate swap etc., in order to minimize risks associated with interest payment rate fluctuations on funds
procured.
The Investment Corporation will periodically grasp the value of real estate, etc. and financial condition, etc. of the issuer with regard to investment
securities.
B. Management of Liquidity Risk (Risk of Defaulting on Payments by the Due Date) Associated with Funds Procurement
Although loans and other liabilities are subject to liquidity risks, the 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 event market prices are not available, prices that are calculated on arational basis. Because the factors incorporated into the calculation of these prices are subject to change, differing assumptions are adopted which
may alter fair value. Moreover, the contract amounts, etc. of derivative transactions in “2. Items with Regard to Fair Value of Financial Instruments”
do not indicate the market risk of derivative transactions.

- 21 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference are as follows. Furthermore, items whose fair values are recognized to be
extremely difficult to grasp are not included in the following table (Refer to Note 2).
Twenty-third Fiscal Period (as of October 31, 2016)(Thousands of Yen)
Book Value(1) Cash and deposits(2) Cash and deposits in trust
Total(1) Short-term loans payable(2) Current portion of investment corporation bonds(3) Current portion of long-term loans payable(4) Investment corporation bonds(5) Long-term loans payable
Total
Derivative transaction

11,268,439
9,442,126
20,710,565
1,500,000
4,500,000
21,200,000
4,800,000
146,100,000
178,100,000(977)

Fair Value

Difference

11,268,439
9, 442,126
20,710,565
1,500,000
4,543,560
21,253,983
4,905,396
148,414,755
180,617,694(977)

Twenty-fourth Fiscal Period (as of April 30, 2017)

43,56053,983
105,3962,314,755
2,517,694(Thousands of Yen)

Book Value(1) Cash and deposits(2) Cash and deposits in trust
Total(1) Short-term loans payable(2) Current portion of investment corporation bonds(3) Current portion of long-term loans payable(4) Investment corporation bonds(5) Long-term loans payable
Total
Derivative transaction

14,133,590
9,699,090
23,832,680
4,000,000
1,500,000
22,750,000
4,800,000
141,550,000
174,600,000
10,882

Fair Value

Difference

14,133,590
9,699,090
23,832,680
4,000,000
1,508,940
22,791,356
4,874,082
142,700,464
175,874,843
10,882

8,940
41,35674,082
1,150,464
1,274,843-

Note 1: Items with regard to the calculation method of financial instrument fair value, investment securities and derivative transactions.
Assets(1) Cash and deposits, (2) Cash and deposits in trust
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 todetermine fair value.
Liabilities(1) Short-term loans payable
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 todetermine fair value.
(2) Current portion of investment corporation bonds and (4) investment corporation bonds
The fair value of investment corporation bonds is based on market prices.
(3) Current portion of long-term loans payable and (5) long-term loans payable
The fair value of long-term borrowings is calculated based on the present value that discounts the total amount of principal and interest by using theestimated interest rate in the event that the Investment Corporation conducts new borrowings of the same type. Among long-term borrowings withfloating interest rates, the said borrowings, which are subject to special treatment of interest-rate swaps or caps, are calculated by discounting the total
amount of principal and interest, which is handled together with applicable interest-rate swaps or caps, by the rationally estimated interest rate in thecase that the same type of borrowings are undertaken.
Derivative Transactions
Please refer to the following “Notes on the Derivative Transactions”.

- 22 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Note 2: Book value of financial instruments for which it is extremely difficult to determine the fair value(Thousands of Yen)
Twenty-fourth Fiscal Period(as of April 30, 2017)

Twenty-third Fiscal Period(as of October 31, 2016)

Classification
Investment securities*

1,093,584

1,087,688*Because no quoted market price for TK interests is available and it is extremely difficult to determine the fair value, the above TK interests are notincluded in the preceding table.
Note 3: Redemption schedule of monetary claims after the closing date
Twenty-third Fiscal Period (as of October 31, 2016)
Due within 1 yr.

(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Cash and deposits

11,268,439

-

-

-

-

-

Cash and deposits in trust

9,442,126

-

-

-

-

-

20,710,565

-

-

-

-

-

Total

Twenty-fourth Fiscal Period (as of April 30, 2017)
Due within 1 yr.

(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Cash and deposits

14,133,590

-

-

-

-

-

Cash and deposits in trust

9,699,090

-

-

-

-

-

23,832,680

-

-

-

-

-

Total

Note 4: Redemption schedule of investment corporation bonds and repayment schedule of loans after the closing date
Twenty-third Fiscal Period (as of October 31, 2016)
Due within 1 yr.

(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Short-term loans payable

1,500,000

-

-

-

-

-

Investment corporation bonds

4,500,000

1,800,000---

3,000,000

Long-term loans payable

21,200,000

17,750,000

13,750,000

18,600,000

21,300,000

74,700,000

Twenty-fourth Fiscal Period (as of April 30, 2017)
Due within 1 yr.

(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Short-term loans payable

4,000,000

-

-

-

-

-

Investment corporation bonds

1,500,000

1,800,000---

3,000,000

Long-term loans payable

22,750,000

17,050,000

14,700,000

19,600,000

21,700,000

68,500,000(Notes on the Marketable Securities)
Twenty-third Fiscal Period (as of October 31, 2016) and Twenty-fourth Fiscal Period (as of April 30, 2017): Not applicable(Notes on the Derivative Transactions)
1. Items that do not apply hedge accounting
Twenty-third Fiscal Period (as of October 31, 2016) and Twenty-fourth Fiscal Period (as of April 30, 2017): Not applicable
2. Items that apply hedge accounting
Twenty-third Fiscal Period (as of October 31, 2016)
Hedge accounting
methodPrinciple method

Type of derivative transactions

Main target ofrisk hedge

Interest-rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable

Special treatment of Interest-rate swap transactions
Long-term loansinterest-rate swaps Fixed rate payable･Floating rate receivable payable
Special treatment ofInterest-rate cap transactions
interest-rate caps

(Thousands of Yen)
Contracted amountCalculation method for
Fair value
applicable fair value
More than 1 yr.
Based on the quoted
price obtained from2,500,000(977)
2,500,000
counterparty financial
institutions.
103,350,000

99,650,000＊-

Long-term loans
payable500,000

500,000

＊

-

Total

106,350,000

102,650,000

(977)

-

- 23 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Twenty-fourth Fiscal Period (as of April 30, 2017)
Hedge accounting
Type of derivative transactions
methodPrinciple method

Main target ofrisk hedge

Interest-rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable

Special treatment of Interest-rate swap transactions
Long-term loansinterest-rate swaps Fixed rate payable･Floating rate receivable payable
Special treatment ofInterest-rate cap transactions
interest-rate caps

(Thousands of Yen)
Contracted amountCalculation method for
Fair value
applicable fair value
More than 1 yr.
Based on the quoted
price obtained from3,700,000
3,700,000
10,882
counterparty financial
institutions.
102,150,000

97,400,000＊-

Long-term loans
payable500,000

500,000

＊

-

Total

106,350,000

101,600,000

10,882-＊ Special treatment of interest-rate swaps or caps is reported at the fair value of applicable long-term loans payable. This is because such swaps or caps arehandled together with hedged long-term loans payable.
(Notes on the Retirement Payment)
Twenty-third Fiscal Period (as of October 31, 2016) and Twenty-fourth Fiscal Period (as of April 30, 2017): Not applicable(Notes on the Asset Retirement Obligations)Twenty-third Fiscal Period (as of October 31, 2016) and Twenty-fourth Fiscal Period (as of April 30, 2017): Not applicable(Notes on the Segment and Related Information)
1. Segment Information
Disclosure is omitted because the Investment Corporation has been engaged in the real estate leasing business as a sole business and it has no reportablesegment subject to disclosure.
2. Related Information
Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016)(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 revenues on
the statement of income.
(2) Information about each geographic area
① Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statement of income.
② 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, plantand equipment 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 revenues on the statement of income.
Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017)(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 revenues on
the statement of income.
(2) Information about each geographic area
① Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statement of income.
② 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, plantand equipment 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 revenues on the statement of income.
- 24 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on the Tax-Effect Accounting)
1. Significant components of deferred tax assets and liabilities(Thousands of Yen)
Twenty-third Fiscal Period(as of October 31, 2016)

Twenty-fourth Fiscal Period(as of April 30, 2017)

Deferred tax assets
Enterprise tax payable

39

30

Deferred gains or losses on hedges

310-

Amortization of land leasehold in trust

2,908

3,154

3,257

3,185

(3,218)(3,154)39

30

Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets

2. Significant components causing difference between statutory income tax rate and the effective tax rate after tax effect accounting(Unit: %)Twenty-third Fiscal Period(as of October 31, 2016)
Statutory tax rate

Twenty-fourth Fiscal Period(as of April 30, 2017)
31.74

31.74

(Adjustments)(31.73)(31.73)

Others0.02

0.02

Effective tax rate

0.03

0.03

Deductible cash distributions(Notes on the Gains and Losses on Equity-method, etc.)
Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016) and Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017): Not applicable(Notes on the Related-party Transactions)
1. Parent Company, major corporate unitholders and other
Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016) and Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017): Not applicable
2. Affiliated companies and other
Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016) and Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017): Not applicable
3. Fellow subsidiary companies and other
Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016) and Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017): Not applicable
4. Directors, major individual unitholders and other
Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016) and Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017): Not applicable(Notes on the Real Estate for Rental Purposes)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenue.
The book value per balance sheet for the fiscal period under review, changes during the period and fair value concerning the above real estate for rental
purposes are as follows.
(Thousands of Yen)
Twenty-third Fiscal Period
May 1, 2016 to October 31, 2016

Twenty-fourth Fiscal Period
November 1, 2016 to April 30, 2017

Book value
Balance at the beginning of the period
Changes during the period
Balance at the end of the period
Fair value at the end of period

385,085,254

389,197,020

4,111,765(5,795,370)

389,197,020

383,401,649

414,605,000

416,550,000

Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period is the appraisal value determined by outside appraisers. Fair values at the end of the previous fiscal periodof KDX Nihonbashi Kabutocho Building and BUREX Toranomon are calculated based on the sale price (¥12,400 million) in the transaction- 25 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

agreement on November 1, 2016 and the sale price (¥2,440 million) in the transaction agreement on December 1, 2016, respectively.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the twenty-third fiscal period, principal increase/decrease
factors were the acquisition of real estate trust beneficiary interests in 2 properties totaling ¥5,221,373 thousand and depreciation amounting in¥2,274,750 thousand. For the fiscal period under review, principal increase/decrease factors were the acquisition of real estate trust beneficiaryinterests in 3 properties totaling ¥14,942,506 thousand, the sales of real estate trust beneficiary interests and real estate in 5 properties totaling¥19,474,995 thousand and depreciation amounting in ¥2,288,632 thousand.
Income and loss for real estate for rental purposes are listed in “Notes to the Statements of Income”.
(Notes on the Information per Unit)
Twenty-third Fiscal Period
May 1, 2016 to October 31, 2016
Net Assets per unit

Twenty-fourth Fiscal Period
November 1, 2016 to April 30, 2017

¥525,644¥526,041

Net income per unit
¥11,365¥11,733
Note 1: Net income per unit is calculated by dividing net income by the weighted average (based on number of days) number of units. Net income per unit
after adjusting for diluted investment units is not included because there were no dilutive investment units.
Note 2: The basis of calculation for the net income per unit is as follow.
Twenty-third Fiscal Period
May 1, 2016 to October 31, 2016
Net income(Thousands of Yen)
Amount not vested in ordinary unitholders(Thousands of Yen)
Net income for ordinary investment units(Thousands of Yen)
Average number of investment units
during the period (unit)(Notes on the Important Subsequent Events)
Not applicable- 26 -

Twenty-fourth Fiscal Period
November 1, 2016 to April 30, 2017

4,601,756

4,750,521--

4,601,756

4,750,521

404,885

404,885

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(9) Changes in the number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ capital in the last 5 years are summarized in the following table.

Settlement Date

Particulars

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)

Unitholders’ Capital(Millions of Yen) (Note 7)
Increase
Balance(Decrease)

Remarks

November 13, 2013

Public offering

43,800330,350

18,198165,351(Note 1)

December 10, 2013

Third-party allotment

2,190

332,540909

166,261(Note 2)

May 27, 2014

Public offering

21,400353,940

9,876

176,138(Note 3)June 24, 2014

Third-party allotment

1,070

355,010493

176,632(Note 4)

Public offering

47,685

402,695

28,269204,901(Note 5)

November 27, 2014

December 24, 2014
Third-party allotment
2,190
404,885
1,298
206,199(Note 6)Note 1: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for theacquisition of new properties and repayment of borrowings. The offer price was ¥430,950 per unit with an issue price of ¥415,480 per unit.
Note 2: The Investment Corporation undertook an additional issue of new investment units with an issue price of ¥415,480 per unit by way of third-party
allotment because cash on hand was allocated as a portion of the funds for the acquisition of new properties, the funds from the issuance of new
Investment Units by third-party allotment are allocated as proceeds to compensate for the decrease of cash on hand.
Note 3: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for theacquisition of new properties. The offer price was ¥478,725 per unit with an issue price of ¥461,540 per unit.
Note 4: The Investment Corporation undertook an additional issue of new investment units with an issue price of ¥461,540 per unit by way of third-party
allotment for the purpose of using as funds for the future acquisition of specified assets or a portion of funds for the repayment of borrowings.
Note 5: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for theacquisition of new properties and a portion of funds for the repayment of borrowings. The offer price was ¥614,250 per unit with an issue priceof ¥592,830 per unit.
Note 6: The Investment Corporation undertook an additional issue of new investment units with an issue price of ¥592,830 per unit by way of third-party
allotment for the purpose of using as funds for the future acquisition of specified assets or a portion of funds for the repayment of borrowings.
Note 7: The amounts stated in ¥1 million unit are truncated at less than ¥1 million.

- 27 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

4. Resignation/Appointment of the Director(1) Resignation/Appointment of the Director of the Investment Corporation
Not applicable(2) Resignation/Appointment of the Director of the Asset Management Company
Akira Tanaka resigned as director on March 29, 2017. At the ordinary general shareholders’ meeting of the Asset Management Company held on March
29, 2017, Keisuke Sato and Motoshi Ichiki were appointed as directors as of March 29, 2017 and Masayuki Kobayashi was appointed as auditor as ofMarch 29, 2017.
In addition, Ryosuke Homma was appointed as Chairman, Representative Director and Masahiko Tajima was appointed as President & CEO at its
Board of Directors held after the ordinary general shareholders’ meeting of the Asset Management Company.
Appointed: Chairman, Representative Director (Full-time), Ryosuke Homma (as of March 29, 2017)
President & CEO (Full-time), Masahiko Tajima (as of March 29, 2017)
Director & COO (Full-time), Keisuke Sato (as of March 29, 2017)
Director & COO (Full-time), Motoshi Ichiki (as of March 29, 2017)
Auditor (Part-time), Masayuki Kobayashi (as of March 29, 2017)Retired: Director & COO, Akira Tanaka (as of March 29, 2017)- 28 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

5. Reference Information(1) Component of Assets
Twenty-third Fiscal Period(as of October 31, 2016)
Asset Class

Type

Area

Office Buildings

Real Estate

Total Amount Held
(Millions of Yen)
(Note 1)
38,997

Tokyo Metropolitan Area
Other Regional Areas

Total for Office Buildings
Total for Real Estate
Office Buildings

Total Amount Held
(Millions of Yen)
(Note 1)
9.4
30,510Ratio(%) (Note 2)

Ratio(%) (Note 2)
7.4

12,8383.1

12,7593.1

51,83612.6

43,26910.5

51,83612.6

43,269

10.5

Tokyo Metropolitan Area

248,43560.1

251,498

61.3

Other Regional Areas

59,903

14.5

59,739

14.6

Total for Office Buildings

308,33874.7

311,238

75.9

Tokyo Metropolitan Area

4,582

1.1

4,539

1.1

Total for Residential Property
Central Urban RetailTokyo Metropolitan Area
Properties
Total for Central Urban Retail Properties

4,582

1.1

4,539

1.1

21,466

5.2

21,3805.2

21,466

5.2

21,380

5.2

Tokyo Metropolitan Area

2,973

0.7

2,973

0.7

Residential Property
Trust BeneficiaryInterest in Real Estate

Twenty-fourth Fiscal Period(as of April 30, 2017)

OthersTotal for Others
Total of Trust Beneficiary Interests in Real Estate
Investment Securities (Note 3)

2,973

0.7

2,973

0.7

337,360

81.7

340,132

82.9

1,093

0.3

1,087

0.3

Bank Deposits and Other Assets

22,741

5.5

25,677

6.3

Total Assets

413,031100.0

410,166

100.0

Note 1: “Total Amount Held” is the amount allocated in the balance sheets at the end of the fiscal period (figures are on a net book value basis after deducting
depreciation), and is rounded down to the nearest ¥1 million.
Note 2: “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets, rounded to the first decimal place.
Note 3: Interests in a silent partnership operated by G.K. KRF 43 are indicated.
Twenty-third Fiscal Period(as of October 31, 2016)
AmountRatio(Millions of Yen)(%)

Twenty-fourth Fiscal Period(as of April 30, 2017)
AmountRatio(Millions of Yen)(%)

Total Liabilities

200,206

48.5

197,180

48.1

Total Net Assets

212,82551.5

212,986

51.9

Total Assets

413,031100.0

410,166

100.0(2) Details of Investment Assets① Major components of investment securities
Details of investment assets held by the Investment Corporation as of April 30, 2017 are as follows.

Name

Area

Interests in a silent partnership
operated by G.K. KRF 43(Note 3)Total

Domestic
Area

Number of
Asset Class
Units
Interests
in a silent
partnershipBook Value(Millions of Yen)

Appraisal Value(Millions of Yen)
(Note 1)

Ratio (%)
(Note 2)

Appraisal
profit/loss

Unit Price

AmountUnit Price

Amount

-

-

1,087

-

1,087

0.3

-

-

-

1,087

-

1,087

0.3

-

Note 1: Book value is stated for the evaluation value.
Note 2: “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets, rounded to the first decimal place.
Note 3: The asset under management is the trust beneficiary interest in real estate of Shinjuku Sanei Building.

- 29 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)② Properties Roster
A. The Price of the Investment Properties and the Investment Ratio(Unit: Millions of Yen)
Appraisal Value at the end of Twenty-fourth Fiscal Period

Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Amount on
Acquisition
the Balance
Price
Sheet
(Note 3)(Note 1)
(Note 2)

Direct Capitalization
MethodValue

Overall
Capitalization
Rate (%)

Discounted Cash Flow Method
Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-1

KDX Nihonbashi 313 Building

5,940

5,859

6,740

6,970

4.0

6,640

3.8

4.2

B

1.5

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,100

5,050

5,110

4.3

4,980

4.0

4.4

A

1.1

A-4

KDX Hatchobori Building

3,680

3,302

3,280

3,360

4.3

3,250

4.1

4.5

B

0.9

A-5

KDX Nakano-Sakaue Building

2,533

2,352

2,400

2,470

4.5

2,370

4.3

4.7

B

0.6

A-6

Harajuku F.F. Building

2,450

2,423

3,130

3,150

4.7

3,110

4.4

4.8

A

0.6

A-7

KDX Minami Aoyama Building

2,270

2,215

2,510

2,530

4.1

2,490

3.8

4.2

A

0.5

A-8

Kanda Kihara Building

1,950

1,787

1,640

1,700

4.3

1,620

4.1

4.5

B

0.4

A-13

KDX Kojimachi Building

5,950

5,546

4,940

4,970

3.8

4,900

3.5

3.9

A

1.5

A-14

KDX Funabashi Building

2,252

2,227

2,330

2,330

5.4

2,320

5.1

5.5

A

0.5

A-16

Toshin 24 Building

5,300

4,822

4,970

5,010

4.6

4,930

4.3

4.7

A

1.3

A-17

KDX Ebisu Building

4,640

4,420

4,890

4,900

4.1

4,880

3.7

4.2

A

1.1

A-19

KDX Hamamatsucho Building

3,460

3,073

3,400

3,510

3.9

3,350

3.7

4.1

B

0.8

A-20

KDX Kayabacho Building

2,780

2,718

2,600

2,610

4.5

2,590

4.1

4.6

A

0.7

A-21

KDX Shinbashi Building

3,728

3,755

4,580

4,610

3.8

4,540

3.5

3.9

A

0.9

A-22

KDX Shin-Yokohama Building

2,520

2,291

2,370

2,380

5.1

2,360

4.8

5.2

A

0.6

A-26

KDX Kiba Building

1,580

1,460

1,230

1,240

5.0

1,220

4.6

5.0

A

0.4

A-27

KDX Kajicho Building

2,350

2,270

2,260

2,330

4.3

2,230

4.1

4.5

B

0.5

A-29

KDX Higashi-Shinjuku Building

2,950

3,036

3,780

3,860

4.4

3,750

4.2

4.6

B

0.7

A-30

KDX Nishi-Gotanda Building

4,200

3,866

3,640

3,710

4.4

3,570

4.2

4.6

A

1.0

A-31

KDX Monzen-Nakacho Building

1,400

1,317

1,080

1,130

4.9

1,060

4.7

5.1

B

0.3

A-32

KDX Shiba-Daimon Building

6,090

6,006

4,800

4,840

4.3

4,760

4.0

4.4

A

1.5

A-33

KDX Okachimachi Building

2,000

2,044

1,980

2,020

4.4

1,960

4.2

4.6

B

0.5

A-34

KDX Hon-Atsugi Building

1,305

1,150

1,270

1,320

5.6

1,250

5.4

5.8

B

0.3

A-35

KDX Hachioji Building

1,155

1,211

1,100

1,090

5.3

1,100

5.1

5.5

B

0.2

A-37

KDX Ochanomizu Building

6,400

6,398

6,850

6,910

4.1

6,790

3.8

4.2

A

1.6

A-38

KDX Nishi-Shinjuku Building

1,500

1,526

1,410

1,420

4.5

1,400

4.2

4.6

A

0.3

A-41

KDX Shinjuku 286 Building

2,300

2,315

2,620

2,630

4.1

2,600

3.8

4.2

A

0.5

A-46

Hiei Kudan-Kita Building

7,600

7,478

7,990

8,210

4.0

7,890

3.8

4.2

B

1.9

A-47

KDX Shin-Yokohama 381 Building

5,800

5,447

4,310

4,330

5.2

4,290

4.9

5.3

A

1.4

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,573

3,080

3,070

5.1

3,090

4.5

5.1

A

0.9

A-50

KDX Ikejiri-Oohashi Building

2,400

2,358

1,740

1,750

4.9

1,730

4.6

5.0

A

0.6

A-51

KDX Hamacho Nakanohashi Building

2,310

2,247

1,960

1,970

4.5

1,940

4.2

4.6

A

0.5

A-55

Shin-toshin Maruzen Building

2,110

2,090

1,680

1,700

4.5

1,660

4.1

4.7

A

0.5

A-56

KDX Jimbocho Building

2,760

2,867

2,100

2,120

4.5

2,080

4.0

4.5

A

0.7

A-59

KDX Iwamoto-cho Building

1,864

1,675

1,510

1,520

4.6

1,500

4.3

4.7

A

0.4

A-60

KDX Harumi Building

10,250

8,960

8,470

8,550

4.3

8,390

3.9

4.3

A

2.6

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,243

2,150

2,200

3.9

2,130

3.7

4.1

B

0.5

A-62

Koishikawa TG Building

3,080

3,010

3,460

3,480

4.3

3,430

4.0

4.4

A

0.7

A-63

KDX Gotanda Building (Note 6)

2,620

2,713

3,080

3,100

4.5

3,050

4.2

4.6

A

0.6

A-64

KDX Nihonbashi 216 Building

2,010

1,862

2,060

2,070

4.0

2,040

3.7

4.1

A

0.5

A-66

KDX Shinjuku Building

6,800

6,865

8,490

8,530

3.8

8,450

3.5

3.9

A

1.7

A-67

KDX Ginza 1chome Building

4,300

4,204

5,570

5,700

3.7

5,510

3.5

3.9

B

1.0

A-68

KDX Nihonbashi Honcho Building

4,000

3,938

4,550

4,680

4.1

4,490

3.9

4.3

B

1.0

A-71

KDX Iidabashi Building

4,670

4,551

5,460

5,630

4.1

5,380

3.9

4.3

B

1.1

A-72

KDX Higashi-Shinagawa Building

4,590

4,766

4,360

4,470

4.3

4,310

4.1

4.5

B

1.1

A-73

KDX Hakozaki Building

2,710

2,720

3,230

3,280

4.5

3,210

4.3

4.7

B

0.6

- 30 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Appraisal Value at the end of Twenty-fourth Fiscal Period
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

No.

Property Name

Direct Capitalization
MethodValue

Discounted Cash Flow Method

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-74

KDX Shin-Nihonbashi Building

2,300

2,101

2,750

2,790

3.9

2,730

3.7

4.1

B

0.5

A-78

KDX Tachikawa Ekimae Building

1,267

1,333

1,560

1,560

5.2

1,550

4.9

5.3

A

0.3

A-83

KDX Fuchu Building

6,120

5,950

7,710

7,830

4.9

7,660

4.7

5.1

B

1.5

A-84

KDX Kasuga Building

2,800

2,746

3,630

3,650

4.3

3,600

4.0

4.4

A

0.7

A-85

KDX Nakameguro Building

1,880

1,863

2,630

2,660

4.5

2,610

4.3

4.7

B

0.4

A-86

KDX Omiya Building

2,020

2,176

2,740

2,750

5.1

2,740

4.9

5.3

B

0.5

A-87

Itopia Nihonbashi SA Building

2,200

2,245

2,570

2,600

4.4

2,560

4.2

4.6

B

0.5

A-88

KDX Shinjuku 6-chome Building

1,900

1,887

2,950

3,010

4.3

2,930

4.1

4.5

B

0.4

A-89

KDX Takanawadai Building

5,250

5,344

6,150

6,200

4.3

6,100

4.0

4.4

A

1.3

A-90

KDX Ikebukuro Building

3,900

3,733

4,810

4,890

4.0

4,780

3.8

4.2

B

0.9

A-91

KDX Mita Building

3,180

3,160

3,460

3,480

4.2

3,430

3.9

4.3

A

0.8

A-92

KDX Akihabara Building

2,600

2,553

3,090

3,110

4.1

3,060

3.8

4.2

A

0.6

A-93

KDX Iidabashi Square

4,350

4,973

5,590

5,660

4.1

5,560

3.9

4.3

B

1.1

A-94

KDX Musashi-Kosugi Building

12,00011,434

14,90015,0004.3

14,800

4.0

4.4

A

3.0

A-95

KDX Toyosu Grand Square

8,666

8,257

9,080

9,300

4.7

8,980

4.5

4.9

B

2.2

A-96

KDX Takadanobaba Building

3,650

3,628

4,230

4,270

4.5

4,210

4.2

4.7

B

0.9

A-99

KDX Ikebukuro West Building

1,934

2,017

2,040

2,090

4.4

2,020

4.2

4.6

B

0.4

A-101 KDX Yokohama Building

7,210

7,539

8,210

8,500

4.5

8,090

4.3

4.7

B

1.8

A-102 KDX Yokohama Nishiguchi Building

2,750

2,731

3,070

3,120

4.6

3,050

4.4

4.8

B

0.6

A-103 KDX Shin-Yokohama 214 Building

2,200

2,239

2,390

2,400

5.0

2,370

4.7

5.1

A

0.5

A-107 KDX Ginza East Building

3,600

3,614

3,720

3,760

4.2

3,680

3.9

4.3

A

0.9

A-108 Pentel Building

3,350

3,576

3,730

3,833

4.0

3,678

3.8

4.2

B

0.8

A-109 KDX Hamamatsucho Center Building

3,950

4,038

4,190

4,390

3.9

4,110

3.7

4.1

B

1.0

15,55015,61917,00017,1003.5

16,800

3.2

3.6

A

3.9

3,829

3,865

4,010

4,010

4.0

4,010

3.6

4.0

A

0.9

A-114 KDX Nihonbashi Edo-dori Building

1,350

1,366

1,440

1,450

4.4

1,420

4.0

4.4

A

0.3

A-115 ARK Mori Building

4,169

4,194

4,310

4,480

3.8

4,240

3.6

4.0

B

1.0

A-116 Nishi-Shinbashi TS Building

8,400

8,453

8,630

8,920

3.6

8,500

3.4

3.8

B

2.1

A-117 BR Gotanda

2,200

2,283

2,360

2,390

4.4

2,320

4.0

4.6

A

0.5

A-12

Portus Center Building

5,570

4,121

4,720

4,760

5.7

4,700

5.5

5.9

B

1.4

A-42

KDX Karasuma Building

5,400

5,143

5,140

5,220

4.9

5,100

4.7

5.1

B

1.3

A-44

KDX Sendai Building

2,100

1,988

1,830

1,830

5.5

1,830

5.5

5.7

B

0.5

A-53

KDX Hakata-Minami Building

4,900

4,551

4,010

4,020

6.0

4,000

5.7

6.1

A

1.2

A-54

KDX Kitahama Building

2,220

2,082

1,610

1,610

5.4

1,610

4.9

5.5

A

0.5

A-58

KDX Nagoya Sakae Building

7,550

6,796

5,340

5,460

4.5

5,290

4.3

4.7

B

1.9

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,231

2,620

2,670

6.3

2,570

4.5

6.6

A

0.7

A-70

KDX Sapporo Building

2,005

1,950

2,310

2,410

5.0

2,270

4.8

5.2

B

0.5

A-79

KDX Nagoya Ekimae Building

7,327

7,982

9,030

9,080

4.3

8,970

4.0

4.4

A

1.8

A-82

KDX Higashi Umeda Building

2,770

2,537

3,600

3,670

4.4

3,570

4.2

4.6

B

0.7

A-97

KDX Utsunomiya Building

2,350

2,315

2,510

2,490

5.7

2,520

5.5

5.9

B

0.5

A-98

KDX Hiroshima Building

1,300

1,411

1,580

1,580

5.6

1,570

5.3

5.7

A

0.3

A-100 Senri Life Science Center Building

13,00012,89913,00013,300

4.7

12,900

4.5

4.9

B

3.3

A-104 KDX Minami-Honmachi Building

2,200

2,103

2,900

2,900

4.5

2,890

4.2

4.6

A

0.5

A-106 KDX Sakura-dori Building

5,900

6,250

7,700

7,810

4.7

7,650

4.5

4.9

B

1.4

A-110 KDX Shin-Osaka Building

4,550

4,588

4,940

5,120

4.2

4,860

4.0

4.4

B

1.1

3,500

3,545

3,970

4,030

4.4

3,900

4.1

4.5

A

0.8

363,055

354,507381,860

387,633-

378,378

-

-

-

92.2

KDX Toranomon 1Chome Building
A-112(Note 6)KDX Shin-Nihonbashi Ekimae
A-113
Building

Other
Regional
Areas

Amount on
Acquisition
the Balance
Price
Sheet
(Note 3)(Note 1)
(Note 2)

A-111

KDX Nagoya Nichigin-mae Building(Note 6)

Subtotal of Office Buildings (92 properties)- 31 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Appraisal Value at the end of Twenty-fourth Fiscal Period
Type

Residential
Property

Area

No.

Tokyo
Metropolitan
Area

B-19

Property Name

Residence Charmante Tsukishima

Subtotal of Residential Property (1 property)
CentralUrban
RetailProperties

Direct Capitalization
MethodValue

Discounted Cash Flow Method

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)

5,353

4,539

4,900

4,930

4.4

4,860

4.1

4.5

A

1.3

5,353

4,539

4,900

4,930

-

4,860

-

-

-

1.3

10,80010,9003.7

10,700

3.4

3.8

A

2.5

C-1

Frame Jinnan-zaka

9,900

9,291

C-2

KDX Yoyogi Building

2,479

2,458

2,160

2,150

4.7

2,160

4.2

4.8

A

0.6

C-4

Ginza 4chome Tower

9,800

9,630

13,60013,7003.3

13,400

3.0

3.4

A

2.4

22,17921,38026,56026,750-26,260

-

-

-

5.6

2,880

2,973

3,230

3,260

3.8

3,220

3.7

3.8

B

0.7

Subtotal of Others (1 property)

2,880

2,973

3,230

3,260

-

3,220

-

-

-

0.7

Total of 97 properties

393,468

383,401

416,550

422,573-

412,718

-

-

-

100.0

Tokyo
Metropolitan
Area

Subtotal of Central Urban Retail Properties (3 properties)
OthersAmount on
Acquisition
the Balance
Price
Sheet
(Note 3)(Note 1)
(Note 2)

Tokyo
Metropolitan
Area

D-2

Shinjuku 6chome Building (Land)

Note 1: Acquisition prices are the purchase prices 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.).
Note 2: Figures of less than 1 million are rounded down from the amounts on the balance sheet.
Note 3: Appraisal values at the end of 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 transcribed fromvaluation reports prepared by Japan Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd.
Note 4: Appraisals of the properties were 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.
Note 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 firstdecimal place. The figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices ofproperties corresponding to each subtotal and total column by the total acquisition price of the entire assets (97 properties).
Note 6: The Investment Corporation changed the property names for the following buildings. Same applies below.
No.

New Property Name

Old Property Name

A-63

KDX Gotanda Building

Gotanda TG Building

A-111

KDX Nagoya Nichigin-mae Building

Nichigin-mae KD Building

A-112

KDX Toranomon 1Chome Building

Nittochi Toranomon Building- 32 -

Change of Date
April 1, 2017

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

B. Property Distribution
Distribution by Property TypesType

Number of
Properties

Acquisition Price(Millions of Yen)

Office Buildings

92

Residential Property
Central Urban Retail Properties
Others
Total

Ratio (Note)(%)

363,055

92.2

1

5,353

1.3

3

22,179

5.6

1

2,880

0.7

97

393,468

100.0

Geographic Distribution
Area

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note)(%)

Tokyo Metropolitan Area

80

317,956

80.8

Other Regional Areas

17

75,51219.1

97393,468

100.0

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

Number of
Properties

Acquisition Price(Millions of Yen)

Less than 1,000-

1,000 - 2,500
2,500 - 5,000

Ratio (Note)
(%)
-

-

35

69,31217.6

37131,02933.3

5,000 - 7,500

1590,41022.97,500 - 10,000

651,91613.1

10,000 - 12,500

222,2505.6

12,500 - 15,000

1

13,0003.3

15,000 - 17,500

1

15,5503.9

97393,468

100.0

Total

Note: “Ratio” refers to the percentage of the acquisition price by each category to the acquisition price of the entire portfolio.
Figures are rounded down to the nearest first decimal place. Accordingly, the sum total of each item may be less than 100%.

- 33 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

C. Details of Investment Real Estate and Trust Real Estate(a) Overview of Investment Real Estate Properties and Trust Real Estate
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Site Area(m2) (Note 1)

Usage(Note 2)

Total Floor Area(m2) (Note 3)

A-1

KDX Nihonbashi 313 Building

1,047.72

Offices

8,613.09

A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48

A-4

KDX Hatchobori Building

992.20

Offices

4,800.43

Offices, Retail Shops
Residence, Garage
Storage
Retail Shops, Offices
Parking
Offices, Retail Shops
Residence

A-5

KDX Nakano-Sakaue Building

1,235.16

6,399.42

A-6

Harajuku F.F. Building

699.67

A-7

KDX Minami Aoyama Building

369.47

A-8

Kanda Kihara Building

410.18

Offices

2,393.94

A-13

KDX Kojimachi Building

612.17

Offices, Retail Shops

5,323.81

A-14

KDX Funabashi Building

1,180.41

Offices, Retail Shops

5,970.12
8,483.17

3,812.44
1,926.98

A-16

Toshin 24 Building

1,287.16

Offices, Retail Shops
Parking

A-17

KDX Ebisu Building

724.22

Offices, Retail Shops

4,394.58

Offices, Retail Shops
Parking

3,592.38

Offices, Parking

3,804.86

A-19

KDX Hamamatsucho Building

504.26

A-20

KDX Kayabacho Building

617.17

Offices, Retail Shops
Parking
Offices, Retail Shops
Parking

A-21

KDX Shinbashi Building

536.11

3,960.22

A-22

KDX Shin-Yokohama Building

705.00A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
7,885.40

6,180.51

A-29

KDX Higashi-Shinjuku Building

1,340.97

Offices
Storage, Parking

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87

A-31

KDX Monzen-Nakacho Building

580.99

Offices, Retail Shops

2,668.91

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00

A-34

KDX Hon-Atsugi Building

724.62

Offices, Retail Shops

3,603.63

Offices, Parking
Retail Shops
Offices, Storage
Retail Shops, Parking
Mechanical Room

2,821.21

Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)

SRC
B2F9
SRC
B1F9
SRC・RC
B1F8April 1974

7.32

January 1987

3.71

June 1993

3.74

SRC
B1F11

August 1992

3.72

November 1985

5.88

November 1988

6.34

May 1993

4.26

May 1994

2.34

April 1989

4.17

September 1984

6.05

January 1992

7.35

September 1999

4.86

October 1987

4.25

February 1992

4.44

September 1990

6.88

October 1992

4.70

March 1990

7.11

January 1990

6.03

November 1992

8.29

September 1986

3.83

July 1986

4.58

June 1988

4.00

May 1995

6.38

December 1985

7.53

August 1982

5.93

October 1992

10.39

August 1989

5.92

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

A-35

KDX Hachioji Building

460.62A-37

KDX Ochanomizu Building

1,515.28

A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63

A-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04

A-46

Hiei Kudan-Kita Building

1,844.83

Offices, Retail Shops
Office Room
Parking, Storage

11,425.31

SRC・S
B1F11

March 1988

4.33

A-47

KDX Shin-Yokohama 381 Building(Note 7)

1,229.24

Offices, Retail Shops
Parking, Garbage Room

10,290.30

SRC・RC
B1F10

March 1988

10.64

A-48

KDX Kawasaki-Ekimae Hon-cho Building

1,968.13

Offices

7,420.87

February 1985

4.71

A-50

KDX Ikejiri-Oohashi Building

834.79

Offices

3,482.96

September 1988

6.75

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41

September 1988

3.71

3,439.37

July 1990

5.99

May 1994

5.14

March 2008

5.00

February 2008

7.12

April 1992

3.78

November 1989

6.61

April 1988

8.30

October 2006

7.86

May 1993

2.01

November 1991

6.80

7,720.08

A-55

Shin-toshin Maruzen Building

457.64

Offices, Retail Shops
Parking

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
1,618.65

A-59

KDX Iwamoto-cho Building

266.86

Offices
Residential Complex

A-60

KDX Harumi Building

2,230.69

Offices, Retail Shops

12,694.32

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90

A-62

Koishikawa TG Building

1,250.42 Offices, Clinic, Parking

5,862.02

A-63

KDX Gotanda Building

582.90

Offices, Garage

4,440.61

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62
10,348.02
4,724.62

A-66

KDX Shinjuku Building

1,118.12

Offices, Retail Shops
Parking

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

- 34 -

SRC
B1F7
RC
F5
SRC・RC
B1F9

SRC
B1F9
RC
B2F9
SRC
F9
SRC
B1F8
SRC
B1F8
S
F9
S・SRC
B1F11
S・SRC
B1F8
SRC
B1F8
SRC
B1F9
SRC
F9
S・RC
B4F11
SRC
F9

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Site Area(m2) (Note 1)

Usage(Note 2)

Total Floor Area(m2) (Note 3)

A-68

KDX Nihonbashi Honcho Building

583.40

Offices, Parking

5,110.45

A-71

KDX Iidabashi Building

967.38

Offices, Parking

5,422.64

A-72

KDX Higashi-Shinagawa Building

3,115.45

Offices

10,138.65

A-73

KDX Hakozaki Building

971.83

Offices, Parking

6,332.48
3,712.25

A-74

KDX Shin-Nihonbashi Building

444.32

Offices, Retail Shops
Parking

A-78

KDX Tachikawa Ekimae Building

464.95

Offices

2,896.48

A-83

KDX Fuchu Building

2,400.00

Offices, Parking

16,647.00

Offices, Retail Shops
Parking

6,444.31

Offices

3,455.90

A-84

KDX Kasuga Building

1,319.24

A-85

KDX Nakameguro Building

730.26

Offices, Retail Shops
Parking, Residence
Offices, Residence
Parking
Offices, Retail Shops,
Parking

A-86

KDX Omiya Building

775.67A-87

Itopia Nihonbashi SA Building

1,193.91

A-88

KDX Shinjuku 6-chome Building

1,072.03

A-89

KDX Takanawadai Building

2,547.15

A-90

KDX Ikebukuro Building

472.94

A-91

KDX Mita Building

548.72

A-92

KDX Akihabara Building

374.88Retail Shops, Office2,979.14

A-93

KDX Iidabashi Square

1,341.98

Offices, Parking

6,764.37

A-94

KDX Musashi-Kosugi Building

3,210.09

Offices, Retail Shops

16,094.14

A-95

KDX Toyosu Grand Square

20,403.07

Offices, Retail Shops

63,419.60

A-96

KDX Takadanobaba Building

1,511.58

Offices, Parking

6,576.07
3,477.86

OfficeOffices, Retail Shops
Parking
Offices, Retail Shops
Garage5,055.50
7,362.25
5,907.00
9,265.03
3,848.18
5,007.98

A-99

KDX Ikebukuro West Building

603.21

Offices, Retail Shops,
Parking

A-101

KDX Yokohama Building

2,499.38

Offices, Parking

15,894.75

A-102

KDX Yokohama Nishiguchi Building

1,029.45

Offices

6,556.59
6,478.89

A-103

KDX Shin-Yokohama 214 Building

998.00

Offices, Retail Shops,
GarageA-107

KDX Ginza East Building

1,216.99

Offices, Parking

6,413.60

A-108

Pentel Building

2,502.63

Offices, Bank,
Residence

18,880.89

A-109

KDX Hamamatsucho Center Building

835.83

Offices, Garage

3,981.69
11,212.05

A-112

KDX Toranomon 1Chome Building

1,564.12

Offices, Retail Shops
Parking

A-113

KDX Shin-Nihonbashi Ekimae Building

531.64

Offices, Parking

4,254.07

A-114

KDX Nihonbashi Edo-dori Building

252.89

Offices, Retail Shops

1,722.17

A-115

ARK Mori Building

39,602.42

Offices

177,486.95

A-116

Nishi-Shinbashi TS Building

1,406.56

Offices, Garage

8,851.60

A-117

BR Gotanda

914.80

Offices, Parking

7,395.72
79,827.08

A-12

Portus Center Building

13,936.63

Offices, Retail Shops
Storage, Parking

A-42

KDX Karasuma Building

1,788.67

Offices

12,632.68

A-44

KDX Sendai Building

987.78

Offices

5,918.30

Offices, Retail Shops
Parking
Offices, Storage
Parking

A-53

KDX Hakata-Minami Building

1,826.25

A-54

KDX Kitahama Building

751.92

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retail Shops

9,594.00

A-69

KDX Kobayashi-Doshomachi Building(Note 9)1,561.04

Offices, Garage
Retail Shops

10,723.83

A-70

KDX Sapporo Building

819.44

Offices

5,503.90

A-79

KDX Nagoya Ekimae Building

1,354.10

Offices, Retail Shops

13,380.30

A-82

KDX Higashi Umeda Building

804.50A-97

KDX Utsunomiya Building

1,412.00

A-98

KDX Hiroshima Building

706.78 Offices, Parking Tower- 35 -

Offices, Retail Shops
Parking
Offices, Retail Shops
Parking

13,238.16
4,652.96

6,805.76
7,742.18
5,718.83

Type of Structure(Note 4)
SRC
B1F9
SRC
B1F8
S・RC
B1F5
SRC
B1F10
S
B1F10
S
B1F8
SRC・S
B1F14
SRC
B1F10
SRC
F7
①S・SRC B1F8
②S F3
SRC
B1F10
SRC・RC
B2F10
SRC
B1F9
S・RC
B1F10
S・SRC
B3F11
SRC
B1F9
SRC
B1F8
S
B1F11
S
F11
SRC・RC
B2F7
SRC
F10
SRC・S
B1F11
SRC
B1F9
SRC
B1F8
SRC
B1F9
S・SRC
B3F14
SRC
F7
S・SRC
B1F11
SRC
B1F10
SRC
F8
RC・SRC・S
B4F37
SRC
B1F11
SRC・S
B2F11
SRC・S
B2F25
SRC
B1F8
SRC
B1F10
SRC
B1F9
S
F10
S
F11
S・SRC
B1F12
SRC
B1F9
S・SRC
B2F15
S・SRC
B1F10
S・SRC
B1F10
SRC
B1F10

Completion Date
(Note 5)PML(%)
(Note 6)

January 1984

4.48

March 1990

4.49

January 1993

5.13

November 1993

4.42

November 2002

3.42

February 1990

2.19

March 1996

1.83

June 1992

7.43

October 1985

6.50

April 1993

4.40

July 1995

3.64

March 1990

6.11

October 1985

6.17

March 2009

3.78

March 1993

4.81

December 1973

4.47

January 1994

4.48

May 2013

8.11

April 2008

3.84

October 1988

6.06

July 1988

4.45

March 1994

8.44

October 1988

7.59

November 1989

4.72

August 1991

5.95

November 1990

6.22

December 1985

4.21

October 2013

7.93

May 1992

7.05

March 1985

4.55

March 1986

0.78

August 1992

5.99

September 1991

6.13

September 1993

6.70

October 1982

3.88

February 1984

2.71

June 1973

0.93

July 1994

6.32

April 2009

1.12

July 2009

10.99

October 1989

0.41

April 1986

8.98

July 2009

6.11

February 1999

0.98

January 1990

6.98

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

OfficeBuildings

Residential
Property

CentralUrban
RetailProperties

Other

Other
Regional
Areas

No.

Property Name

Usage
(Note 2)

Total Floor Area(m2) (Note 3)

Offices, Retail Shops
Parking
Offices, Retail Shops
GarageOffices, Retail Shops
Lounge, Storage
Offices, Parking
Retail Shops

A-100

Senri Life Science Center Building

5,911.08

A-104

KDX Minami-Honmachi Building

882.96A-106

KDX Sakura-dori Building

2,420.43

A-110

KDX Shin-Osaka Building

1,016.54

A-111

KDX Nagoya Nichigin-mae Building

732.14

Offices

5,862.22---

Subtotal of Office Buildings (92 properties)
Tokyo
Metropolitan
B-19
Residence Charmante Tsukishima
Area
Subtotal of Residential Property (1 property)
Tokyo
Metropolitan
Area

Site Area(m2) (Note 1)

4,252.86

Residential Complex

7,694.03
19,680.16
7,987.35---

1,240.51

Retail Shops, Offices

6,302.58

C-2

KDX Yoyogi Building

228.74Retail Shops, Offices

1,269.06

C-4

Ginza 4chome Tower

PML(%)(Note 6)

January 2004

1.34
5.31
10.49
10.28
9.67
5.38

-

S・RC・SRC
B2F7
SRC
F8
S
B1F13
-

-

-

-

-

-

-

-

- Avg. 22.6yrs (Note 8)

2.40

-

Retail Shops, Offices
Parking-

1,355.13-

688.52SRC
B1F10

18,115.39

Frame Jinnan-zakaCompletion Date
(Note 5)

SRC・S
June 1992
B3F21
S・RC
December 2009
B1F12
S
August 1992
B1F18
SRC
May 1992
B1F11
S
September 2006
B1F10
- Avg. 23.4yrs (Note 8)

49,260.78

C-1

Subtotal of Central Urban Retail Properties (3 properties)
Tokyo
Metropolitan
D-2
Shinjuku 6chome Building (Land)
Area
Subtotal of Others (1 property)
Total of 97 properties

Type of Structure(Note 4)

6,787.33

Avg. 13.2yrs-

March 2005

6.80

August 1991

4.55

November 2008

5.23

Avg. 11.9yrs-

Note 1: Site area data is based on figures recorded in the land register (including relevant figures for land leasehold, if any). Data may not match with theactual current status. In the case of buildings with compartmentalized ownership, the figure indicates the site area of the entire land subject to site
rights.
Note 2: Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of exclusively-owned area isshown.
Note 3: Total floor area is based on figures recorded in the land register and does not include related structures. The total floor area for the entire building isreported for compartmentalized ownership.
Note 4: Type of structure data is based on data recorded in the land register. For buildings with compartmentalized ownership, the structure and the number offloors of the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating tostructure and the number of floors:
SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level.
For example: B2F9: Two floors below ground level and nine floors above ground level.
Note 5: Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data are calculated using theweighted-average based on acquisition prices as of April 30, 2017, and are rounded down to the first decimal place.
Note 6: Probable Maximum Loss (PML) data is based on a survey provided by Sompo Risk Management & Health Care Inc. as of May 2017.
Note 7: KDX Shin-Yokohama 381 Building is comprised from two compartmentalized buildings within a single building. By consolidating them together,
they become a property that comprises the entire building (total ownership ratio: 100%).
Note 8: Upon calculating the average portfolio age, the completion date of KDX Shin-Yokohama 381 Building is based on the completion date of its existing
tower.
Note 9: KDX Kobayashi Doshomachi Building includes the fixed term land leasehold with a special agreement to transfer building.

- 36 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(b) Capital Expenditure① Planned capital expenditures
Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the twenty-fifth fiscal period (May 1,2017 to October 31, 2017) are as follows. Planned capital expenditure may include portions classified into expenses for accounting purposes.
Planned Amount of Capital Expenditure(Millions of Yen)
Property Name
Total
Schedule
PurposePaid in the(Location)
AmountTotal
Fiscal Period
Previously
under Review
Paid
KDX Takanawadai Building
Renewal of air conditioning
May 2017
193(Minato-ku, Tokyo)
system, otherto October 2017
KDX Shin-Nihonbashi Ekimae Building(Chuo-ku, Tokyo)

Renewal of air conditioning
system, other

As above

139

-

-

KDX Yokohama Building(Yokohama, Kanagawa)

Renovation of external wall,other

As above

128

-

-

KDX Nagoya Ekimae Building(Naogya, Aichi)

Renovation of external wall,other

As above

109

-

-

Senri Life Science Center Building(Toyonaka, Osaka)

Renovation of external wall,other

As above83--

Toshin 24 Building(Yokohama, Kanagawa)

Renovation of external wall,other

As above82--

BR Gotanda(Shinagawa-ku, Tokyo)

Renewal of air conditioning
system, other

As above70--

Itopia Nihonbashi SA Building(Chuo-ku, Tokyo)

Renovation of external wall,other

As above37--

KDX Ikebukuro West Building(Toshima-ku, Tokyo)

Renewal of air conditioning
system, other

As above

19--

Note: The planned amounts of capital expenditure are truncated at less than ¥1 million.
② Capital Expenditures during the Fiscal Period under Review (fiscal period ended April 30, 2017)
The Investment Corporation undertook the following major capital expenditures. In the fiscal period under review (fiscal period ended April 30,2017), the Investment Corporation completed works across its entire portfolio totaling ¥1,018 million. The total construction cost amounted to¥1,455 million including ¥436 million for repairs, maintenance and renovation expenses in the fiscal period under review.
Property Name
(Location)
Senri Life Science Center Building(Toyonaka, Osaka)
KDX Takanawadai Building(Minato-ku, Tokyo)
KDX Nagoya Ekimae Building(Naogya, Aichi)
KDX Ikebukuro West Building(Toshima-ku, Tokyo)
Pentel Building(Chuo-ku, Tokyo)
KDX Shin-Yokohama 214 Building(Yokohama, Kanagawa)
KDX Tachikawa Ekimae Building(Tachikawa, Tokyo)
Harajuku F.F. Building(Shibuya-ku, Tokyo)
KDX Hiroshima Building(Hiroshima, Hiroshima)

Amount of Capital Expenditures(Millions of Yen)

PurposeTerm

Upgrade of exclusively-owned area, otherNovember 2016
to April 2017

202

Renovation of elevator, other

As above

59

Renovation of disaster prevention
equipment, other

As above

52

Upgrade of common area, other

As above

41

Renewal of air conditioning system, other

As above

34

Upgrade of common area, other

As above

33

Renovation of external wall, other

As above32

Renewal of air conditioning system, other

As above

30

Renovation of external wall, other

As above

27

Others503

Portfolio Total

1,018

Note: The amounts of the capital expenditures are truncated at less than ¥1 million.

- 37 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)③ Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
The Investment Corporation formulates long-term repairs, maintenance and renovation plans on an individual investment property basis andallocates a portion of its cash flow generated during the period to a reserve for repairs, maintenance and renovation to meet large-scale renovation
over the medium- to long-terms. The following amount has been transferred to the reserve from period cash flow.
(Millions of Yen)

Fiscal period

Twentieth
Fiscal Period(November 1, 2014 toApril 30, 2015)

Twenty-first
Fiscal Period(May 1, 2015 to
October 31, 2015)

Twenty-second
Fiscal Period(November 1, 2015 toApril 30, 2016)

Twenty-third
Fiscal Period(May 1, 2016 to
October 31, 2016)

Twenty-fourthFiscal Period(November 1, 2016 toApril 30, 2017)

Balance at the beginningof the period

495

465

-

-

-

Reserve for the period

8

-

-

-

-

Reversal of reserve forthe period

37

465

-

-

-

Balance brought forward
to the next period

465

-

-

-

-

Note: The Investment Corporation has decided not to reserve amount for repairs, maintenance and renovation expenses since the twenty-first fiscal period
because they are covered within the scope of the cash flow in each period.

- 38 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(c) Details of the Tenants
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Total Leasable
Floor Area(m2)
(Note 1)

Total Leased
Floor Area(m2)
(Note 2)

No. ofNo. ofOccupancy Rental and Other
Tenant Leasehold andLeasable
LeasedNo. ofRate
Operating Revenues
Security Deposits
Residential Residential Tenants(%)(Thousands of Yen)
(Thousands of Yen)
Units
Units
(Note 5)(Note 6)(Note 7)(Note 8)(Note 3)(Note 4)A-1

KDX Nihonbashi 313 Building

5,777.02

4,765.52

-

-

13

82.5

168,444

235,441

A-3

Higashi-Kayabacho Yuraku Building

4,379.66

4,379.66

-

-

7

100.0

138,580

217,047

A-4

KDX Hatchobori Building

3,323.14

3,323.14

-

-

4

100.0

107,715

109,468

A-5

KDX Nakano-Sakaue Building

4,386.18

4,309.89

18

17

24

98.3

83,67991,798

A-6

Harajuku F.F. Building

3,071.15

3,071.15

-

-

2

100.0

108,010

141,704

A-7

KDX Minami Aoyama Building

1,814.56

1,814.56

-

-

8

100.0

76,616

107,806

A-8

Kanda Kihara Building

1,947.80

1,947.80

-

-

11

100.0

52,87692,142

A-13

KDX Kojimachi Building

3,719.18

3,719.18

-

-

9

100.0

122,991

202,449

A-14

KDX Funabashi Building

3,859.85

3,859.85

-

-

20

100.0

109,795

136,849

A-16

Toshin 24 Building

6,621.19

6,427.78

-

-

21

97.1

176,125

252,240

A-17

KDX Ebisu Building

3,072.34

3,072.34

-

-

6

100.0

145,295

248,002

A-19

KDX Hamamatsucho Building

2,724.35

2,724.35

-

-

9

100.0

97,614

132,636

A-20

KDX Kayabacho Building

3,019.93

3,019.93

-

-

7

100.0

80,429104,501

A-21

KDX Shinbashi Building

2,803.79

2,803.79

-

-

8

100.0

129,368

175,050

A-22

KDX Shin-Yokohama Building

4,776.86

4,755.97

-

-

21

99.6

80,115125,585

A-26

KDX Kiba Building

2,455.49

2,455.49

-

-

6

100.0

30,22960,814

A-27

KDX Kajicho Building

2,564.79

2,564.79

-

-

10

100.0

73,413

88,135A-29

KDX Higashi-Shinjuku Building

5,859.92

5,859.92

-

-

6

100.0

134,993

123,027

A-30

KDX Nishi-Gotanda Building

3,883.04

3,883.04

-

-

12

100.0

70,676140,391

A-31

KDX Monzen-Nakacho Building

2,008.74

2,008.74

-

-

7

100.0

44,12347,121A-32

KDX Shiba-Daimon Building

5,997.36

5,997.36

-

-

9

100.0

157,219

210,007

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

2

100.0

67,272110,237

A-34

KDX Hon-Atsugi Building

2,747.66

2,747.66

-

-

12

100.0

51,842

71,277A-35

KDX Hachioji Building

2,165.20

1,950.65

-

-

9

90.1

45,862

49,594A-37

KDX Ochanomizu Building

5,892.10

5,312.22

-

-

7

90.2

189,399

231,256

A-38

KDX Nishi-Shinjuku Building

1,593.59

1,399.10

-

-

8

87.8

45,86956,802A-41

KDX Shinjuku 286 Building

2,446.12

2,446.12

-

-

7

100.0

82,369100,498

A-46

Hiei Kudan-Kita Building

6,908.84

6,908.84

-

-

14

100.0

251,078

326,275

A-47

KDX Shin-Yokohama 381 Building

8,122.03

8,122.03

-

-

43

100.0

163,703

241,123

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

5,126.69

5,126.69

-

-

1

100.0

103,679

155,562

A-50

KDX Ikejiri-Oohashi Building

2,458.64

2,458.64

-

-

8

100.0

70,903104,086

A-51

KDX Hamacho Nakanohashi
Building

2,238.01

2,238.01

-

-

9

100.0

67,80492,352

A-55

Shin-toshin Maruzen Building

1,912.28

1,228.40

-

-

4

64.2

53,15053,390A-56

KDX Jimbocho Building

2,321.80

2,321.80

-

-

3

100.0

65,82796,451A-59

KDX Iwamoto-cho Building

1,529.79

1,529.79

3

3

9

100.0

47,016

61,543

A-60

KDX Harumi Building

9,294.00

8,739.58

-

-

10

94.0

207,122

307,209

A-61

KDX Hamamatsucho Dai-2 Building

1,954.23

1,954.23

-

-

8

100.0

62,451

99,124

A-62

Koishikawa TG Building

3,945.54

3,945.54

-

-

5

100.0

128,808

156,831

A-63

KDX Gotanda Building

3,158.67

3,158.67

-

-

10

100.0

100,657

144,323

A-64

KDX Nihonbashi 216 Building

1,615.20

1,615.20

-

-

8

100.0

54,461

94,762A-66

KDX Shinjuku Building

5,836.68

5,574.49

-

-

20

95.5

242,355

304,414A-67

KDX Ginza 1chome Building

3,573.59

3,573.59

-

-

4

100.0

148,093

189,816

A-68

KDX Nihonbashi Honcho Building

3,998.39

3,998.39

-

-

8

100.0

136,111

212,991

A-71

KDX Iidabashi Building

4,429.25

4,429.25

-

-

5

100.0

156,189242,500

A-72

KDX Higashi-Shinagawa Building

7,117.97

7,117.97

-

-

5

100.0

143,280

221,748

A-73

KDX Hakozaki Building

3,992.60

3,992.60

-

-

8

100.0

113,414

156,454

A-74

KDX Shin-Nihonbashi Building

2,658.79

2,658.79

-

-

8

100.0

87,268

126,985

A-78

KDX Tachikawa Ekimae Building

1,612.13

1,612.13

-

-

5

100.0

63,75586,432A-83

KDX Fuchu Building

10,151.48

8,990.96

-

-

36

88.6

264,499

331,112A-84

KDX Kasuga Building

4,345.13

4,345.13

-

-

14

100.0

126,335

150,693- 39 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property NameKDX Nakameguro Building

2,726.69

2,726.69

-

-

5

100.0

86,930128,662

KDX Omiya Building

3,814.00

3,814.00

1

1

18

100.0

116,240

184,908

A-87

Itopia Nihonbashi SA Building

3,106.42

2,543.76

8

7

12

81.9

94,93597,523A-88

KDX Shinjuku 6-chome Building

4,037.44

4,037.44

-

-

7

100.0

104,239

87,464A-89

KDX Takanawadai Building

6,951.88

6,537.12

-

-

7

94.0

206,198

246,220

A-90

KDX Ikebukuro Building

3,110.71

3,110.71

-

-

10

100.0

106,500

208,086

A-91

KDX Mita Building

3,331.61

3,331.61

-

-

12

100.0

109,948

154,485

A-92

KDX Akihabara Building

2,289.27

2,289.27

-

-

7

100.0

84,36997,151A-93

KDX Iidabashi Square

4,571.92

4,571.92

-

-

7

100.0

142,124

288,959

A-94

KDX Musashi-Kosugi Building

12,978.52

12,978.52

-

-

9

100.0

437,304

661,244

A-95

KDX Toyosu Grand Square

11,797.85

11,316.95

-

-

13

95.9

305,179

453,339

A-96

KDX Takadanobaba Building

4,585.47

4,585.47

-

-

11

100.0

136,545

157,828

A-99

KDX Ikebukuro West Building

2,553.06

2,553.06

-

-

6

100.0

71,90659,258A-101 KDX Yokohama Building

10,932.12

10,661.96

-

-

26

97.5

271,033

337,351

A-102 KDX Yokohama Nishiguchi Building

4,981.07

4,981.07

-

-

14

100.0

119,837

161,090

A-103 KDX Shin-Yokohama 214 Building

4,615.14

4,444.43

-

-

16

96.3

81,933

127,509

A-107 KDX Ginza East Building

4,400.92

4,400.92

-

-

12

100.0

108,807

164,723

A-108 Pentel Building

4,346.66

4,346.66

5

5

10

100.0

130,408

159,134

A-109 KDX Hamamatsucho Center Building

3,052.64

3,052.64

-

-

8

100.0

104,341

126,586

A-112 KDX Toranomon 1Chome Building

8,179.00

8,179.00

-

-

4

100.0

411,708

664,950

KDX Shin-Nihonbashi Ekimae
A-113
Building

3,284.79

3,284.79

-

-

11

100.0

55,374

146,656

A-114 KDX Nihonbashi Edo-dori Building

1,516.15

998.10

-

-

5

65.8

31,37731,149100.0

N / A (Note 10)

N / A (Note 10)

A-115 ARK Mori Building

2,442.60

2,442.60-

1(Note 9)A-116 Nishi-Shinbashi TS Building

5,734.79

5,734.79

-

-

9

100.0

107,980

290,006

A-117 BR Gotanda

3,469.21

3,469.21

-

-

5

100.0

14,493

100,978

A-12

Portus Center Building

11,582.42

11,582.42

-

-

30

100.0

290,196364,341

A-42

KDX Karasuma Building

8,743.96

8,555.11

-

-

39

97.8

204,919

276,383

A-44

KDX Sendai Building

3,962.37

3,962.37

-

-

34

100.0

94,759180,303

A-53

KDX Hakata-Minami Building

9,813.85

9,344.98

-

-

49

95.2

178,284

236,014A-54

KDX Kitahama Building

4,001.87

3,571.07

-

-

11

89.2

64,393

85,105A-58

KDX Nagoya Sakae Building

6,923.12

6,923.12

-

-

16

100.0

177,828

223,746

A-69

KDX Kobayashi-Doshomachi
Building

7,072.23

7,072.23

-

-

12

100.0

188,396

254,919

A-70

KDX Sapporo Building

3,788.51

3,520.20

-

-

20

92.9

101,247

93,020A-79

KDX Nagoya Ekimae Building

7,902.96

7,902.96

-

-

19

100.0

324,930

515,796

A-82

KDX Higashi Umeda Building

4,986.24

4,986.24

-

-

7

100.0

130,696

110,979

A-97

KDX Utsunomiya Building

5,306.77

5,306.77

-

-

24

100.0

128,585

149,065

A-98

KDX Hiroshima Building

3,994.52

3,994.52

-

-

22

100.0

72,729105,478

A-100 Senri Life Science Center Building

17,204.09

17,161.81

-

-

61

99.8

632,763895,662

A-104 KDX Minami-Honmachi Building

5,285.95

4,941.43

-

-

20

93.5

96,117

144,777

A-106 KDX Sakura-dori Building

12,331.52

12,118.39

-

-

33

98.3

327,984

449,950

A-110 KDX Shin-Osaka Building

5,977.39

5,977.39

-

-

17

100.0

147,832

152,313

B-19

Residence Charmante Tsukishima

Tokyo
Metropolitan
Area

Others4,125.46

-

-

14

94.6

108,475

153,234

429,492.42

35

33

1,183

97.8

12,328,531

17,359,880

7,711.14

7,711.14

140

140

1
(Note 11)100.0

146,91445,721

7,711.14

7,711.14

140

140

1

100.0

146,91445,721

Frame Jinnan-zaka

4,646.51

4,484.66

-

-

12

96.5

262,897334,324

C-2

KDX Yoyogi Building

1,176.25

1,176.25

-

-

11

100.0

69,641106,020

C-4

Ginza 4chome Tower

Subtotal of Central Urban Retail Properties (3 properties)
Tokyo
Metropolitan
Area4,361.33
439,054.31

C-1

Subtotal of Residential Property (1 property)
CentralUrban Retail
Properties

No. ofNo. ofOccupancy Rental and Other
Tenant Leasehold andLeasable
LeasedNo. ofRate
Operating Revenues
Security Deposits
Residential Residential Tenants(%)(Thousands of Yen)
(Thousands of Yen)
Units
Units
(Note 5)(Note 6)(Note 7)(Note 8)(Note 3)(Note 4)

A-86

A-111 KDX Nagoya Nichigin-mae Building

Tokyo
Metropolitan
Area

Total Leased
Floor Area(m2)
(Note 2)

A-85

Subtotal of Office Buildings (92 properties)
Residential
Property

Total Leasable
Floor Area(m2)
(Note 1)

D-2

Shinjuku 6Chome Building (Land)5,624.23

5,624.23

-

-

4

100.0

236,343

349,198

11,446.99

11,285.14

-

-

27

98.6

568,882789,543

1,355.13

1,355.13

-

-

1

100.0

68,12856,770- 40 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

No.

Property Name

Subtotal of Others (1 property)

Total Leasable
Floor Area(m2)
(Note 1)

Total Leased
Floor Area(m2)
(Note 2)

1,355.13

Total of 97 properties

459,567.57

1,355.13
449,843.83

No. ofNo. ofOccupancy Rental and Other
Tenant Leasehold andLeasable
LeasedNo. ofRate
Operating Revenues
Security Deposits
Residential Residential Tenants(%)(Thousands of Yen)
(Thousands of Yen)
Units
Units
(Note 5)(Note 6)(Note 7)(Note 8)(Note 3)(Note 4)

175

-

1

100.0

68,12856,7701,212173(Note 12)

97.9

13,112,457

18,251,916

Occupancy Rate over the Past Five Years
October 31, 2012

95.5%

April 30, 2013

93.9%

October 31, 2013

95.8%

April 30, 2014

96.0%

October 31, 2014

95.6%

April 30, 2015

96.5%

October 31, 2015

94.9%

April 30, 2016

96.9%

October 31, 2016

96.9%

April 30, 2017

97.9%

Note 1: Total leasable floor area refers to the leasable floor area for a 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,
etc. However, the indicated figure of rentable area for Pentel Building includes rentable area for land stated in the lease agreement. The indicatedfigure of rentable area for Shinjuku 6chome Building (Land) is rentable area stated in the land lease agreement.
Note 2: Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
Note 3: The number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential
purposes.
Note 4: The number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements withend tenants or sub-lease agreements are signed.
Note 5: The number of tenants refers to the actual number of end tenants for each property.
Note 6: Occupancy rate is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place.
Note 7: Rental and other operating revenues refers to the total amount of revenues generated during the fiscal period under review from real estate rental
operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
(Reference)
The Current Rental and Other Operating Revenues of the Properties Sold During the Fiscal Period Under Review
Rental and Other Operating Revenues
Type
No.
Property Name
(Thousands of Yen)
Office Buildings
A-45
KDX Roppongi 228 Building
31,232
Office Buildings
A-52
KDX Kanda Misaki-cho Building
14,722
Office Buildings
A-57
KDX Gobancho Building
22,563
Office Buildings
A-75
KDX Nihonbashi Kabutocho Building
138,295
Office Buildings
A-105 BUREX Toranomon
8,332
Note 8: Tenant leasehold and security deposits refer to the total of the balances of security deposits held (including net security deposits in the case of
discount) and guarantee deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest
thousand yen.
Note 9: ARK Mori Building: Because we have concluded a rental guarantee (fixed-rent period: until December 1, 2018) building lease agreement and aproperty management agreement (term of contract: to December 28, 2026) with Mori Building Co., Ltd., a master lessee, the total number oftenants is indicated as 1.
Note 10: Figures are not disclosed because the company that is a master lessee and a property manager has not given consent.
Note 11: Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-rent period: until January 31, 2019) fixed-termbuilding lease agreement (term of contract: to January 30, 2029) with Sekiwa Real Estate, Ltd., a master lessee, the total number of tenants isindicated as 1.
Note 12: The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.
(d) Information concerning major real estate properties
There were no major real estate properties with rental and other operating revenues exceeding 10% of total rental and other operating revenues for thetwenty-fourth fiscal period (fiscal period ended April 30, 2017).

- 41 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(e) Information concerning major tenants① Tenant which holds more than 10% of the total leased area: Not applicable② Reference: Major end tenants

Name of End Tenant

Property Name(As of April 30, 2017)
Leased Floor Percentage of Total Leased
Area (m2)
Floor Area (Note 1)
7,711.14
1.7%

1 Sekiwa Real Estate, Ltd.

Residence Charmante Tsukishima

2 N / A (Note 2)

KDX Kawasaki-Ekimae Hon-cho Building

5,126.69

1.1%

3 N / A (Note 2)

KDX Musashi-Kosugi Building, KDX Hiroshima Building

4,856.75

1.1%

4 ADK Arts Inc.

KDX Toranomon 1Chome Building

4,719.91

1.0%

5 JASTEC Co., Ltd.

KDX Takanawadai Building

4,312.83

1.0%

Subtotal

26,727.32

5.9%

Total Portfolio

449,843.83

100.0%

Note 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 arerounded to the nearest first decimal place.
Note 2: Not disclosed because the tenants have not given consents.

- 42 -

【Reference】

Earnings Performance for the Individual Properties for the 24th Fiscal Period (November 1, 2016 to April 30, 2017)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

※As of April 30, 2017

Property No.

A001

A003

A004

A005

A006

A007

A008

A013

A014

A016

A017

A019

A020

A021

Property NameKDX Nihonbashi
313 Building

HigashiKayabacho
Yuraku Building

KDX Hatchobori
Building

KDX NakanoSakaue Building

Harajuku F.F.
Building

KDX Minami
Aoyama Building

Kanda Kihara
Building

KDX Kojimachi
Building

KDX Funabashi
Building

Toshin 24
Building

KDX Ebisu
Building

KDX
Hamamatsucho
Building

KDX Kayabacho
Building

KDX Shinbashi
Building

Acquisition Date

August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 November 1, 2005 March 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（㎡)May 1, 2006

May 1, 2006

May 1, 2006

May 1, 2006

5,940
1.5%
5,859
6,740
1.6%
13
5,777.02
4,765.52

4,450
1.1%
4,100
5,050
1.2%
7
4,379.66
4,379.66

3,680
0.9%
3,302
3,280
0.8%
4
3,323.14
3,323.14

2,533
0.6%
2,352
2,400
0.6%
24
4,386.18
4,309.89

2,450
0.6%
2,423
3,130
0.8%
2
3,071.15
3,071.15

2,270
0.6%
2,215
2,510
0.6%
8
1,814.56
1,814.56

1,950
0.5%
1,787
1,640
0.4%
11
1,947.80
1,947.80

5,950
1.5%
5,546
4,940
1.2%
9
3,719.18
3,719.18

2,252
0.6%
2,227
2,330
0.6%
20
3,859.85
3,859.85

5,300
1.3%
4,822
4,970
1.2%
21
6,621.19
6,427.78

4,640
1.2%
4,420
4,890
1.2%
6
3,072.34
3,072.34

3,460
0.9%
3,073
3,400
0.8%
9
2,724.35
2,724.35

2,780
0.7%
2,718
2,600
0.6%
7
3,019.93
3,019.93

3,728
0.9%
3,755
4,580
1.1%
8
2,803.79
2,803.79

82.5%
94.6%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.7%
100.0%
181days
168,444
153,697
14,74760,02914,587
20,754
11,037
3,612
224
9,813
108,41428,07480,3409,817
98,59735.6%
41,5095,650
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.1%
89.1%
181days
138,580
127,867
10,71334,52912,559
9,022
8,436
3,176
153
1,180
104,051
27,13076,921
580
103,47124.9%
18,0454,951
3.6%

100.0%
100.0%
100.0%
100.0%
93.1%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
107,715
93,234
14,48135,754
10,850
8,667
6,699
8,623
135
777
71,961
19,201
52,76011,08860,873
33.2%
17,335
3,666
3.4%

98.3%
94.8%
91.7%
94.8%
96.5%
95.2%
100.0%
100.0%
100.0%
100.0%
181days
83,67969,715
13,96332,999
8,955
7,619
7,412
7,069
169
1,773
50,68016,051
34,628
10,13540,54539.4%
15,2292,742
3.3%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
108,010
96,08011,93027,324
6,748
8,082
4,698
5,676
103
2,016
80,685
10,84869,83630,44650,23925.3%
16,1643,850
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.4%
181days
76,616
68,993
7,623
21,055
5,185
5,718
4,298
5,260
56
536
55,561
6,683
48,877
15,63339,92827.5%
11,4362,697
3.5%

100.0%
100.0%
100.0%
100.0%
88.2%
76.2%
88.0%
76.2%
86.5%
100.0%
181days
52,87647,9884,888
15,404
5,086
4,059
4,061
1,582
59
555
37,472
8,342
29,12937,472
29.1%
8,118
1,843
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
122,991
105,559
17,43239,533
8,892
17,143
8,677
1,405
154
3,259
83,457
19,892
63,564
1,774
81,68332.1%
34,2874,213
3.4%

100.0%
100.0%
100.0%
95.6%
99.8%
96.5%
100.0%
100.0%
100.0%
100.0%
181days109,795
93,151
16,64439,551
13,187
7,296
9,151
8,463
169
1,283
70,243
19,56650,677
4,116
66,12736.0%
14,604
3,674
3.3%

97.1%
100.0%
100.0%
100.0%
97.4%
94.1%
94.4%
91.1%
100.0%
100.0%
181days
176,125
145,080
31,04550,673
14,596
12,325
15,470
5,513
259
2,507
125,452
36,73088,722
4,935
120,51628.8%
24,6726,154
3.5%

100.0%
100.0%
83.4%
100.0%
100.0%
100.0%
100.0%
83.4%
100.0%
100.0%
181days
145,295
131,663
13,631
34,906
9,998
11,108
7,742
4,560
135
1,362
110,388
19,65190,736
6,090
104,298
24.0%
22,216
5,218
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
97,61489,9097,704
29,441
7,214
9,027
4,786
5,291
102
3,019
68,172
10,41557,756
68,17230.2%
18,0553,383
3.5%

100.0%
100.0%
100.0%
100.0%
84.9%
84.9%
84.9%
100.0%
100.0%
100.0%
181days
80,42972,474
7,955
25,899
6,920
6,383
5,933
1,299
105
5,256
54,53017,416
37,11454,53032.2%
12,7662,754
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
86.8%
100.0%
100.0%
100.0%
181days
129,368
121,698
7,670
32,1549,350
15,869
5,397
914
112
510
97,214
10,51386,700620
96,59424.9%
31,7394,624
3.6%

318,440
26,536

159,300
13,275

141,890
11,824

164,530
13,710204,340
17,02897,6708,139

79,020
6,585

161,000
13,416180,238
15,019309,328
25,777232,159
19,346

163,222
13,601

198,294
16,524

133,340
11,111

Occupancy rate
Lease Information

As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
Operating periods

Profit and Loss Information for the 24th Fiscal Period①Rental 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 2017 or 2016 (\ Thousands)

Reference

Property management fee (Leasing management fees) of ② (\ Thousands)

Reference： Percentage of rental and other operating revenues

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

Properties are shown in order of property number with respect to each type and location.

- 43 -

【Reference】

Earnings Performance for the Individual Properties for the 24th Fiscal Period (November 1, 2016 to April 30, 2017)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A022

A026

A027

Property NameKDX ShinYokohama
Building

KDX Kiba
Building

KDX Kajicho
Building

KDX HigashiKDX NishiKDX MonzenKDX ShibaShinjuku Building Gotanda Building Nakacho Building Daimon Building

July 3, 2006

September 1, 2006 December 1, 2006 January 19, 2007 March 1, 2007 March 1, 2007 March 1, 2007 March 1, 2007

Acquisition Date

May 1, 2006 June 20, 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（㎡)

A029

A030

A031

A032

※As of April 30, 2017

A033

A034

A035

A037

A038

A041

A046

KDX
Okachimachi
Building

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX
Ochanomizu
Building

KDX NishiShinjuku Building

KDX Shinjuku
286 Building

Hiei Kudan-Kita
Building

April 2, 2007 April 2, 2007

June 1, 2007 February 1, 2008

2,520
0.6%
2,291
2,370
0.6%
21
4,776.86
4,755.97

1,580
0.4%
1,460
1,230
0.3%
6
2,455.49
2,455.49

2,350
0.6%
2,270
2,260
0.5%
10
2,564.79
2,564.79

2,950
0.7%
3,036
3,780
0.9%
6
5,859.92
5,859.92

4,200
1.1%
3,866
3,640
0.9%
12
3,883.04
3,883.04

1,400
0.4%
1,317
1,080
0.3%
7
2,008.74
2,008.74

6,090
1.5%
6,006
4,800
1.2%
9
5,997.36
5,997.36

2,000
0.5%
2,044
1,980
0.5%
2
1,792.54
1,792.54

1,305
0.3%
1,150
1,270
0.3%
12
2,747.66
2,747.66

1,155
0.3%
1,211
1,100
0.3%
9
2,165.20
1,950.65

6,400
1.6%
6,398
6,850
1.6%
7
5,892.10
5,312.22

1,500
0.4%
1,526
1,410
0.3%
8
1,593.59
1,399.10

2,300
0.6%
2,315
2,620
0.6%
7
2,446.12
2,446.12

7,600
1.9%
7,478
7,990
1.9%
14
6,908.84
6,908.84

99.6%
89.1%
78.7%
83.3%
87.2%
97.5%
94.1%
92.9%
92.9%
95.4%
181days
80,11569,444
10,671
27,693
8,180
6,398
7,364
2,936
164
2,650
52,422
23,12029,302
7,059
45,363
34.6%
12,8422,704
3.4%

100.0%
88.1%
88.1%
76.1%
76.1%
88.1%
88.1%
100.0%
100.0%
100.0%
181days
30,22924,188
6,041
16,979
4,163
4,721
3,822
1,583
76
2,613
13,25011,916
1,333
13,250
56.2%
9,443
887
2.9%

100.0%
100.0%
100.0%
93.5%
97.5%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
73,41365,480
7,933
18,845
6,802
5,357
4,997
1,089
85
512
54,56812,65841,90954,56825.7%
10,7142,611
3.6%

100.0%
100.0%
100.0%
87.3%
87.3%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
134,993
119,523
15,46946,765
13,07813,58812,415
3,555
223
3,904
88,227
20,611
67,6161,365
86,862
34.6%
27,1774,555
3.4%

100.0%
74.8%
47.4%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
70,67654,06016,616
31,749
7,394
9,047
7,948
3,211
125
4,022
38,92729,224
9,702
38,92744.9%
18,0782,236
3.2%

100.0%
100.0%
100.0%
84.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
44,12335,756
8,366
18,616
4,144
3,110
5,093
6,101
67
99
25,507
9,535
15,97125,507
42.2%
6,222
1,421
3.2%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
92.9%
79.1%
82.8%
181days
157,219
144,183
13,03644,035
13,785
11,475
11,550
4,045
174
3,003
113,184
31,21981,965
1,496
111,68828.0%
22,9525,518
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
67,27258,613
8,658
15,149
5,693
2,872
4,073
809
47
1,652
52,122
12,946
39,17652,122
22.5%
5,749
2,436
3.6%

100.0%
96.7%
96.7%
96.7%
94.3%
100.0%
100.0%
89.0%
95.7%
86.0%
181days
51,84244,891
6,950
16,275
6,284
3,629
4,615
1,152
95
497
35,567
13,04922,51735,567
31.4%
7,259
1,783
3.4%

90.1%
85.5%
85.5%
72.7%
72.7%
72.7%
100.0%
100.0%
100.0%
100.0%
181days
45,86238,478
7,383
16,580
4,773
4,063
3,991
3,112
64
574
29,281
10,803
18,478
9,704
19,576
36.2%
8,126
1,533
3.3%

90.2%
100.0%
96.4%
96.4%
100.0%
100.0%
100.0%
100.0%
100.0%
90.1%
181days
189,399
175,605
13,79444,098
11,922
14,985
11,353
4,547
198
1,092
145,300
28,043
117,256
3,387
141,91223.3%
29,971
6,830
3.6%

87.8%
100.0%
100.0%
100.0%
100.0%
77.8%
100.0%
100.0%
100.0%
100.0%
181days
45,86940,831
5,038
17,408
4,670
4,315
3,244
4,503
53
620
28,461
6,939
21,522
2,770
25,691
38.0%
8,633
1,516
3.3%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
82,36968,94913,41927,316
7,111
8,224
6,341
4,987
92
558
55,053
9,492
45,5602,625
52,42833.2%
16,4312,804
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
251,078
228,955
22,12385,26931,28925,354
16,595
5,469
262
6,298
165,808
17,407
148,400
165,808
34.0%
50,7088,507
3.4%

111,671
9,305

127,183
10,598

133,761
11,146

93,342
7,778

129,945
10,828136,390
11,365

323,620
26,96890,133
7,511

65,934
5,494

85,771
7,147

355,880
29,65645,5303,794

94,622
7,885

328,200
27,350Occupancy rate
Lease Information

As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
Operating periods

Profit and Loss Information for the 24th Fiscal Period①Rental 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 2017 or 2016 (\ Thousands)

Reference

Property management fee (Leasing management fees) of ② (\ Thousands)

Reference： Percentage of rental and other operating revenues

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

- 44 -

【Reference】

Earnings Performance for the Individual Properties for the 24th Fiscal Period (November 1, 2016 to April 30, 2017)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A047

A048

A050

A051

A055

A056

KDX ShinKDX KawasakiKDX Hamacho
KDX IkejiriShin-toshin
KDX Jimbocho
Yokohama 381 Ekimae Hon-cho
Nakanohashi
Oohashi Building
Maruzen Building
Building
Building
Building
Building
February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 29, 2008 March 31, 2008

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（㎡)

A059

A060

KDX Iwamotocho Building

KDX Harumi
Building

May 1, 2008 June 30, 2008

A061

※As of April 30, 2017

A062

A063

A064

A066

A067

KDX
Koishikawa TG
KDX Gotanda KDX Nihonbashi KDX Shinjuku
KDX Ginza
Hamamatsucho
Building
Building
216 Building
Building
1chome Building
Dai-2 Building
September 1, 2008 November 18, 2009 November 18, 2009 December 1, 2009 February 18, 2010 November 12, 2010

5,800
1.5%
5,447
4,310
1.0%
43
8,122.03
8,122.03

3,760
1.0%
3,573
3,080
0.7%
1
5,126.69
5,126.69

2,400
0.6%
2,358
1,740
0.4%
8
2,458.64
2,458.64

2,310
0.6%
2,247
1,960
0.5%
9
2,238.01
2,238.01

2,110
0.5%
2,090
1,680
0.4%
4
1,912.28
1,228.40

2,760
0.7%
2,867
2,100
0.5%
3
2,321.80
2,321.80

1,864
0.5%
1,675
1,510
0.4%
9
1,529.79
1,529.79

10,250
2.6%
8,960
8,470
2.0%
10
9,294.00
8,739.58

2,200
0.6%
2,243
2,150
0.5%
8
1,954.23
1,954.23

3,080
0.8%
3,010
3,460
0.8%
5
3,945.54
3,945.54

2,620
0.7%
2,713
3,080
0.7%
10
3,158.67
3,158.67

2,010
0.5%
1,862
2,060
0.5%
8
1,615.20
1,615.20

6,800
1.7%
6,865
8,490
2.0%
20
5,836.68
5,574.49

4,300
1.1%
4,204
5,570
1.3%
4
3,573.59
3,573.59

100.0%
100.0%
96.0%
96.3%
100.0%
100.0%
100.0%
99.2%
100.0%
91.7%
181days
163,703140,286
23,41743,34812,763
12,694
14,134
1,299
243
2,211
120,355
48,971
71,384
2,026
118,328
26.5%
25,3495,797
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
103,679
93,13910,54032,116
13,288
7,276
9,290
1,123
167
971
71,56333,651
37,912
22,51549,04831.0%
14,5273,576
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
63.6%
91.3%
91.3%
91.3%
100.0%
181days
70,90356,16014,742
27,450
6,031
6,271
4,911
8,786
86
1,363
43,453
11,59431,8592,334
41,11838.7%
12,5432,333
3.3%

100.0%
100.0%
100.0%
100.0%
88.3%
88.3%
100.0%
100.0%
100.0%
100.0%
181days
67,80455,652
12,151
22,888
7,004
5,479
4,764
4,843
89
707
44,916
12,40632,50913,38531,53033.8%
10,959
2,300
3.4%

64.2%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
53,15047,616
5,533
15,077
6,201
4,608
2,960
893
63
350
38,0738,034
30,0382,140
35,932
28.4%
9,219
1,861
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
65,82759,374
6,452
16,642
5,117
6,825
4,310
114
71
203
49,184
9,998
39,186
1,638
47,54625.3%
13,651
2,347
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
47,01643,912
3,103
11,964
3,766
3,005
2,302
1,703
40
1,145
35,051
13,152
21,898
777
34,273
25.4%
6,022
1,674
3.6%

94.0%
93.2%
93.2%
100.0%
100.0%
90.7%
72.2%
71.2%
72.2%
70.3%
181days
207,122
178,062
29,05984,13032,19818,014
26,791
4,233
313
2,580
122,991
78,10244,888
3,475
119,51540.6%
36,0286,737
3.3%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
87.5%
100.0%
87.6%
181days
62,45155,494
6,956
18,913
4,665
7,997
3,688
619
59
1,883
43,537
5,153
38,383
2,906
40,63030.3%
15,9952,163
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
128,808
107,782
21,026
48,215
13,958
9,973
11,863
11,337158
923
80,593
15,25865,334
1,090
79,503
37.4%
19,9474,273
3.3%

100.0%
100.0%
100.0%
88.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
100,657
91,797
8,859
28,337
8,386
8,618
6,760
1,746
121
2,704
72,31914,02558,293
6,699
65,61928.2%
17,2363,530
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
54,46147,028
7,432
18,366
5,038
4,529
2,754
3,985
55
2,002
36,095
11,391
24,703
1,536
34,559
33.7%
9,059
1,848
3.4%

95.5%
100.0%
98.3%
100.0%
88.3%
91.8%
88.4%
88.3%
96.5%
100.0%
181days
242,355
206,948
35,40674,821
22,39927,652
17,620
5,046
281
1,822
167,533
19,302
148,231
7,072
160,46130.9%
55,3048,365
3.5%

100.0%
98.2%
98.2%
65.4%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
148,093
140,149
7,943
35,142
9,749
12,686
6,693
1,905
132
3,975
112,950
11,808101,141
6,971
105,979
23.7%
25,3735,327
3.6%

204,910
17,075

157,210
13,100120,300
10,02598,8208,235

92,5407,711

93,8607,821

26,0502,170

114,460
9,538

75,2206,268

297,050
24,754140,280
11,69075,9506,329

347,300
28,941

103,230
8,602

Occupancy rate
Lease Information

As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
Operating periods

Profit and Loss Information for the 24th Fiscal Period①Rental 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 2017 or 2016 (\ Thousands)

Reference

Property management fee (Leasing management fees) of ② (\ Thousands)

Reference： Percentage of rental and other operating revenues

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

- 45 -

【Reference】

Earnings Performance for the Individual Properties for the 24th Fiscal Period (November 1, 2016 to April 30, 2017)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

※As of April 30, 2017

Property No.

A068

A071

A072

A073

A074

A078

A083

A084

A085

A086

Property NameKDX Nihonbashi
Honcho Building

KDX Iidabashi
Building

KDX HigashiShinagawa
Building

KDX Hakozaki
Building

KDX ShinNihonbashi
Building

KDX Tachikawa
Ekimae Building

KDX Fuchu
Building

KDX Kasuga
Building

KDX
Nakameguro
Building

KDX Omiya
Building

Acquisition Date

November 12, 2010

July 22, 2011 July 22, 2011 July 22, 2011 July 22, 2011 December 26, 2011 September 21, 2012 September 21, 2012 September 21, 2012 March 26, 2013 August 19, 2013 September 13, 2013 November 19, 2013 November 18, 2013

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（㎡)

A087

A088

Itopia Nihonbashi KDX Shinjuku
SA Building
6-chome Building

A089

A090

KDX
Takanawadai
Building

KDX Ikebukuro
Building

4,000
1.0%
3,938
4,550
1.1%
8
3,998.39
3,998.39

4,670
1.2%
4,551
5,460
1.3%
5
4,429.25
4,429.25

4,590
1.2%
4,766
4,360
1.0%
5
7,117.97
7,117.97

2,710
0.7%
2,720
3,230
0.8%
8
3,992.60
3,992.60

2,300
0.6%
2,101
2,750
0.7%
8
2,658.79
2,658.79

1,267
0.3%
1,333
1,560
0.4%
5
1,612.13
1,612.13

6,120
1.6%
5,950
7,710
1.9%
36
10,151.48
8,990.96

2,800
0.7%
2,746
3,630
0.9%
14
4,345.13
4,345.13

1,880
0.5%
1,863
2,630
0.6%
5
2,726.69
2,726.69

2,020
0.5%
2,176
2,740
0.7%
18
3,814.00
3,814.00

2,200
0.6%
2,245
2,570
0.6%
12
3,106.42
2,543.76

1,900
0.5%
1,887
2,950
0.7%
7
4,037.44
4,037.44

5,250
1.3%
5,344
6,150
1.5%
7
6,951.88
6,537.12

3,900
1.0%
3,733
4,810
1.2%
10
3,110.71
3,110.71

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
136,111
127,079
9,031
35,087
9,593
14,586
6,197
3,752
130
827
101,023
9,906
91,116
6,070
94,95325.8%
29,1734,839
3.6%

100.0%
100.0%
100.0%
100.0%
86.6%
86.6%
100.0%
100.0%
100.0%
100.0%
181days
156,189
139,677
16,511
41,793
10,89910,58015,911
3,365
152
884
114,395
16,16098,234
5,588
108,80726.8%
21,1585,522
3.5%

100.0%
100.0%
88.4%
51.0%
73.5%
56.7%
76.7%
100.0%
100.0%
100.0%
181days
143,280
119,578
23,702
54,14914,516
16,133
15,820
6,152
235
1,290
89,131
26,781
62,35029,07560,05637.8%
32,2674,743
3.3%

100.0%
100.0%
100.0%
100.0%
100.0%
89.3%
78.6%
100.0%
100.0%
100.0%
181days
113,414103,738
9,675
31,294
8,023
12,123
8,681
863
174
1,428
82,11923,18758,9322,500
79,61927.6%
24,2223,990
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
87,26878,8898,378
28,080
7,035
7,166
6,902
5,827
100
1,048
59,18822,452
36,7352,520
56,66832.2%
14,332
2,988
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
63,75554,922
8,833
33,810
4,847
7,233
4,179
16,27972
1,197
29,945
4,505
25,44032,313(2,367)53.0%
14,465
1,912
3.0%

88.6%
85.2%
98.6%
99.1%
99.1%
97.6%
97.6%
100.0%
97.2%
98.2%
181days
264,499
233,172
31,32686,03527,86524,75924,854
4,949
415
3,190
178,463
43,133
135,330
44,641
133,82232.5%
49,5209,040
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
97.4%
92.4%
95.7%
181days
126,335
113,827
12,507
33,633
11,572
11,421
7,577
1,888
159
1,014
92,701
19,33473,367
1,627
91,07426.6%
22,8424,470
3.5%

100.0%
100.0%
85.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
86,93077,523
9,407
19,452
7,065
5,606
3,720
2,390
91
579
67,4789,474
58,00367,47822.4%
11,2133,151
3.6%

100.0%
100.0%
100.0%
100.0%
93.8%
100.0%
100.0%
95.1%
95.1%
181days
116,240
102,924
13,316
31,065
9,789
6,730
9,918
4,284
139
203
85,174
13,981
71,19385,17426.7%
13,446
4,110
3.5%

81.9%
97.0%
100.0%
100.0%
100.0%
98.0%
81.1%
100.0%
181days
94,93585,975
8,959
26,413
10,245
6,819
5,883
1,965
126
1,372
68,521
10,541
57,9802,256
66,26427.8%
13,6403,335
3.5%

100.0%
100.0%
100.0%
90.2%
100.0%
100.0%
100.0%
100.0%
181days
104,239
87,55916,67930,9798,840
10,495
8,272
2,378
157
835
73,2599,488
63,771
8,733
64,52629.7%
20,991
3,622
3.5%

94.0%
94.0%
94.0%
100.0%
100.0%
100.0%
95.7%
181days
206,198
185,150
21,04860,282
16,307
18,49615,092
8,631
254
1,499
145,916
10,104
135,81159,86086,05629.2%
36,9607,186
3.5%

100.0%
90.3%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
106,500
96,252
10,24831,660
8,890
7,508
8,106
1,998
98
5,057
74,84027,20547,634
74,84029.7%
15,0163,700
3.5%

172,940
14,411

204,780
17,065

216,520
18,043

169,820
14,151

151,090
12,59099,6108,300

415,708
34,642

246,516
20,543

177,359
14,779210,300
17,525337,220
28,101

214,340
17,861

551,21345,93472,362
6,030

Occupancy rate
Lease Information

As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
Operating periods

Profit and Loss Information for the 24th Fiscal Period①Rental 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 2017 or 2016 (\ Thousands)

Reference

Property management fee (Leasing management fees) of ② (\ Thousands)

Reference： Percentage of rental and other operating revenues

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

- 46 -

【Reference】

Earnings Performance for the Individual Properties for the 24th Fiscal Period (November 1, 2016 to April 30, 2017)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A091

A092

A093

A094

A095

A096

Property Name

KDX Mita
Building

KDX Akihabara
Building

KDX Iidabashi
SquareKDX MusashiKosugi Building

KDX Toyosu
Grand Square

KDX
Takadanobaba
Building

Acquisition Date

November 18, 2013 November 19, 2013 January 10, 2014

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（㎡)March 20, 2014 May 30, 2014 May 30, 2014
12,000
8,666
3,650
3.0%
2.2%
0.9%
11,434
8,257
3,628
14,900
9,080
4,230
3.6%
2.2%
1.0%
9
13
11
12,978.52
11,797.85
4,585.47
12,978.52
11,316.95
4,585.47

A099

A101

A102

※As of April 30, 2017

A103

A107

A108

A109

A112

KDX Yokohama
KDX ShinKDX
KDX
KDX
Pentel Building
Nishiguchi
Yokohama 214
Ginza East
Hamamatsucho
Toranomon
Building
Building
Building
Center Building
1ChomeSeptember 3, 2014 October 29, 2014 December 2, 2014 December 2, 2014 March 13, 2015 March 26, 2015 September 1, 2015 March 30, 2016
KDX IkebukuroWest Building

KDX Yokohama
Building

1,934
0.5%
2,017
2,040
0.5%
6
2,553.06
2,553.06

7,210
1.8%
7,539
8,210
2.0%
26
10,932.12
10,661.96

2,750
0.7%
2,731
3,070
0.7%
14
4,981.07
4,981.07

2,200
0.6%
2,239
2,390
0.6%
16
4,615.14
4,444.43

3,600
0.9%
3,614
3,720
0.9%
12
4,400.92
4,400.92

3,350
0.9%
3,576
3,730
0.9%
10
4,346.66
4,346.66

3,950
1.0%
4,038
4,190
1.0%
8
3,052.64
3,052.64

15,5504.0%
15,61917,0004.1%
48,179.00
8,179.00

3,180
0.8%
3,160
3,460
0.8%
12
3,331.61
3,331.61

2,600
0.7%
2,553
3,090
0.7%
7
2,289.27
2,289.27

4,350
1.1%
4,973
5,590
1.3%
7
4,571.92
4,571.92

100.0%
100.0%
90.6%
87.5%
95.6%
95.6%
88.4%
181days109,948
90,258
19,69033,456
9,201
9,781
9,218
4,403
139
711
76,492
11,59864,894
16,93759,55530.4%
19,5633,804
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
84,36979,133
5,235
15,256
5,624
3,455
4,815
655
84
620
69,113
11,19957,914820
68,293
18.1%
6,911
3,132
3.7%

100.0%
93.6%
47.7%
0.0%
100.0%
100.0%
100.0%
181days
142,124
129,171
12,95340,654
12,775
13,508
9,928
380
178
3,882
101,470
26,73174,738
5,395
96,07428.6%
27,0094,971
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
95.9%
181days
437,304
398,722
38,581
91,35536,48826,94524,577
493
464
2,386
345,949
101,816
244,132435
345,51420.9%
54,50015,984
3.7%

95.9%
98.0%
100.0%
80.8%
87.0%
87.0%
181days
305,179
255,525
49,65384,644
21,221
21,432
26,063
5,796
416
9,713
220,535
78,100142,434
1,090
219,44427.7%
41,2163,135
1.0%

100.0%
93.1%
93.1%
100.0%
100.0%
100.0%
181days
136,545
109,584
26,961
36,993
9,876
9,727
10,518
5,833
149
887
99,552
15,13984,412
6,247
93,30427.1%
19,4554,818
3.5%

100.0%
100.0%
100.0%
100.0%
81.2%
100.0%
181days
71,90661,086
10,81930,516
6,065
5,060
4,467
12,198102
2,623
41,38910,38331,006
41,585(196)
42.4%
10,118
2,312
3.2%

97.5%
95.0%
98.5%
98.2%
100.0%
100.0%
181days
271,033
235,346
35,68686,70827,84719,02022,137
12,045433
5,225
184,324
46,847
137,476
4,725
179,599
32.0%
38,0499,293
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
181days
119,837
104,393
15,44436,83911,841
10,291
11,225
808
189
2,483
82,99814,98968,008448
82,55030.7%
20,607
4,139
3.5%

96.3%
95.6%
95.6%
83.0%
96.3%
181days
81,93367,89014,043
27,201
7,875
5,988
6,536
3,147
186
3,467
54,732
13,00841,72333,75020,981
33.2%
11,9772,789
3.4%

100.0%
100.0%
100.0%
100.0%
96.4%
181days
108,807
91,687
17,11941,745
8,482
10,412
8,537
4,127
188
9,996
67,061
13,18553,87626,32040,741
38.4%
20,8253,589
3.3%

100.0%
100.0%
94.9%
88.9%
100.0%
181days
130,408
126,608
3,800
46,40530,455
13,249
2,057
222
420
84,00313,01570,98834,45549,54735.6%
26,5004,375
3.4%

100.0%
100.0%
100.0%
100.0%
181days
104,341
94,128
10,213
24,773
9,237
7,632
5,347
1,059
120
1,375
79,5689,231
70,336
7,113
72,45423.7%
15,2653,753
3.6%

100.0%
100.0%
100.0%
181days
411,708
390,122
21,586
51,74933,597
15,854
1,125
341
830
359,958
47,342
312,615900
359,058
12.6%
91,484
15,7483.8%

180,220
15,018117,070
9,755

384,169
32,014140,030
11,669708,370
59,030213,71117,809187,542
15,628647,152
53,929213,177
17,764

170,738
14,228242,059
20,171

288,245
24,020169,148
14,095

118,382
9,865

Occupancy rate
Lease Information

As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
Operating periods

Profit and Loss Information for the 24th Fiscal Period①Rental 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 2017 or 2016 (\ Thousands)

Reference

Property management fee (Leasing management fees) of ② (\ Thousands)

Reference： Percentage of rental and other operating revenues

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

- 47 -

【Reference】

Earnings Performance for the Individual Properties for the 24th Fiscal Period (November 1, 2016 to April 30, 2017)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A113

A114

Other Regional Areas
A115

A116

A117

A012

A042

A044

A053

A054

A058

ARK Mori
Building

Nishi-Shinbashi
TS Building

BR Gotanda

Portus Center
Building

KDX Karasuma
Building

KDX Sendai
Building

KDX HakataMinami Building

KDX Kitahama
Building

KDX Nagoya
Sakae Building

June 1, 2007 February 1, 2008 February 1, 2008 July 1, 2009

Property Name

KDX
KDX
Shin-Nihonbashi
Nihonbashi
Ekimae Building Edo-dori Building

Acquisition Date

August 2, 2016 August 2, 2016 December 1, 2016 February 1, 2017 April 5, 2017

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（㎡)※As of April 30, 2017

A069

A070

A079

KDX KobayashiKDX Sapporo
KDX Nagoya
Doshomachi
Building
Ekimae Building
Building
December 1, 2010 March 25, 2011 December 26, 2011

September 21, 2005

June 1, 2007

3,829
1.0%
3,865
4,010
1.0%
11
3,284.79
3,284.79

1,350
0.3%
1,366
1,440
0.3%
5
1,516.15
998.10

4,169
1.1%
4,194
4,310
1.0%
1
2,442.60
2,442.60

8,400
2.1%
8,453
8,630
2.1%
9
5,734.79
5,734.79

2,200
0.6%
2,283
2,360
0.6%
5
3,469.21
3,469.21

5,570
1.4%
4,121
4,720
1.1%
30
11,582.42
11,582.42

5,400
1.4%
5,143
5,140
1.2%
39
8,743.96
8,555.11

2,100
0.5%
1,988
1,830
0.4%
34
3,962.37
3,962.37

4,900
1.2%
4,551
4,010
1.0%
49
9,813.85
9,344.98

2,220
0.6%
2,082
1,610
0.4%
11
4,001.87
3,571.07

7,550
1.9%
6,796
5,340
1.3%
16
6,923.12
6,923.12

2,870
0.7%
2,231
2,620
0.6%
12
7,072.23
7,072.23

2,005
0.5%
1,950
2,310
0.6%
20
3,788.51
3,520.20

7,327
1.9%
7,982
9,030
2.2%
19
7,902.96
7,902.96

100.0%
67.2%
181days
55,37447,1708,203
40,091
5,818
0
5,487
11,560110
17,113
15,283
7,847
7,435
19,240(3,956)72.4%
25,470
1,442
2.6%

65.8%
73.7%
181days
31,37722,186
9,191
11,473
2,663
1,710
1,607
42
5,448
19,904
2,782
17,121
5,451
14,453
36.6%
6,637
1,046
3.3%

100.0%
151days100.0%
89days107,980
96,148
11,831
17,249
9,339
14
6,518
618
120
638
90,7306,502
84,22790,73016.0%
34,2224,055
3.8%

100.0%
26days
14,493
11,829
2,663
3,657
2,792
383
25
457
10,835
1,418
9,416
10,83525.2%
18,809516
3.6%

100.0%
96.7%
97.3%
95.9%
94.9%
97.5%
96.5%
95.8%
98.6%
89.5%
181days
290,196244,926
45,270122,944
77,757
21,911
17,714
4,073
685
803
167,252
52,322
114,929
28,476
138,776
42.4%
43,823
9,335
3.2%

97.8%
100.0%
99.3%
99.2%
100.0%
100.0%
100.0%
94.3%
98.3%
99.2%
181days
204,919
179,60225,316
61,955
20,176
21,552
16,489
1,769
287
1,679
142,963
30,984
111,979
142,96330.2%
43,1177,099
3.5%

100.0%
100.0%
100.0%
100.0%
96.4%
94.4%
91.9%
91.5%
96.8%
93.8%
181days
94,75980,122
14,63734,181
11,603
6,724
9,736
4,939
142
1,036
60,57819,72840,85060,57836.1%
13,420
3,170
3.3%

95.2%
97.6%
97.5%
88.7%
94.7%
98.5%
95.8%
93.9%
94.9%
93.3%
181days
178,284
152,113
26,17053,73914,773
10,07622,040
4,509
298
2,040
124,544
37,35887,185
11,191
113,352
30.1%
20,198
6,180
3.5%

89.2%
89.3%
89.3%
92.8%
92.8%
92.8%
92.8%
92.8%
92.8%
92.8%
181days
64,39353,043
11,34925,740
7,030
4,443
7,276
974
114
5,900
38,653
13,63225,0202,960
35,693
40.0%
8,866
2,102
3.3%

100.0%
96.6%
100.0%
100.0%
100.0%
99.3%
100.0%
100.0%
100.0%
100.0%
181days
177,828
160,113
17,71555,186
17,778
19,771
13,847
2,735
246
807
122,641
71,91950,722
4,725
117,91631.0%
39,4016,132
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
91.3%
100.0%
100.0%
93.5%
91.3%
181days
188,396
170,916
17,48092,357
15,707
11,423
14,0201,795
273
49,137
96,03953,50342,536
5,97890,06149.0%
22,813
5,804
3.1%

92.9%
100.0%
100.0%
100.0%
100.0%
95.6%
97.8%
89.8%
94.4%
100.0%
181days
101,247
76,407
24,84037,717
9,821
8,819
15,164
2,864
153
893
63,53016,887
46,643
9,026
54,50437.3%
17,6113,362
3.3%

100.0%
100.0%
100.0%
100.0%
99.0%
99.0%
100.0%
100.0%
100.0%
93.8%
181days
324,930
282,420
42,509104,359
31,634
38,217
24,913
6,169
367
3,056
220,571
42,122
178,448
52,612
167,958
32.1%
76,482
11,132
3.4%

231,210
19,267

92,9607,746

305,494
25,457

180,148
15,012856,430
71,369375,354
31,279128,121
10,676

185,690
15,474

136,270
11,35595,4507,954

170,520
14,210202,570
16,880527,61043,967

Occupancy rate
Lease Information

As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
Operating periods

Profit and Loss Information for the 24th Fiscal Period①Rental 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 2017 or 2016 (\ Thousands)

Reference

Property management fee (Leasing management fees) of ② (\ Thousands)

Reference： Percentage of rental and other operating revenues（Note）（Note）

71,127
3,535
67,592514
70,613（Note）
16,329（Note）

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

137,750
11,479A058 KDX Nagoya Sakae Building: The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.
A069 KDX Kobayashi Doshomachi Building: The rent for land to the land owner (Kobayashi Pharmaceutical Co., Ltd.) is stipulated according to specific terms
under the land lease agreement and the annual rent to be paid is \94.3 million until the end of August 2019.
(Note) Figures are not disclosed because the company that is the master lessee and the property manager has not given consent.

- 48 -

【Reference】

Earnings Performance for the Individual Properties for the 24th Fiscal Period (November 1, 2016 to April 30, 2017)：181days

Type

Office Buildings

Location

Other Regional Areas

Property No.

A082

A097

A098

A100

A104

A106

A110

A111

KDX MinamiKDXKDXKDX Nagoya
Honmachi
Sakura-doriShin-Osaka
Nichigin-mae
Building
Building
Building
Building
September 1, 2014 October 15, 2014 December 2, 2014 January 9, 2015 September 1, 2015 March 15, 2016

KDX Higashi KDX Utsunomiya KDX Hiroshima Senri Life Science
Umeda Building
Building
Building
Center 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（㎡)March 28, 2012 May 30, 2014
2,770
2,350
0.7%
0.6%
2,537
2,315
3,600
2,510
0.9%
0.6%
7
24
4,986.24
5,306.77
4,986.24
5,306.77

Residential
PropertyTokyo
Metropolitan
Area
B019
Residence
Charmante
Tsukishima※As of April 30, 2017

Central Urban Retail Properties

Other

C001

C002

C004

Tokyo
Metropolitan
Area
D002

Frame
Jinnan-zaka

KDX Yoyogi
Building

Ginza 4chome
Tower

Shinjuku 6chome
Building (Land)

Tokyo Metropolitan Area

Total of 97
Properties

May 1, 2006 August 1, 2005 September 30, 2005 August 19, 2013 April 18, 2014

1,300
0.3%
1,411
1,580
0.4%
22
3,994.52
3,994.52

13,0003.3%
12,89913,0003.1%
61
17,204.09
17,161.81

2,200
0.6%
2,103
2,900
0.7%
20
5,285.95
4,941.43

5,900
1.5%
6,250
7,700
1.8%
33
12,331.52
12,118.39

4,550
1.2%
4,588
4,940
1.2%
17
5,977.39
5,977.39

3,500
0.9%
3,545
3,970
1.0%
14
4,361.33
4,125.46

5,353
1.4%
4,539
4,900
1.2%
1
7,711.14
7,711.14

9,900
2.5%
9,291
10,8002.6%
124,646.51
4,484.66

2,479
0.6%
2,458
2,160
0.5%
11
1,176.25
1,176.25

9,800
2.5%
9,630
13,6003.3%
45,624.23
5,624.23

2,880
0.7%
2,973
3,230
0.8%
1
1,355.13
1,355.13

393,468
100.0%
383,401
416,550
100.0%
1,212
459,567.57
449,843.83
97.9%
96.9%
96.9%
94.9%
96.5%
95.6%
96.0%
95.8%
93.9%
95.5%
178days *13,112,457
11,376,711
1,735,745
4,129,179
1,296,990
1,064,298
991,234
420,350
17,707
338,596
8,983,278
2,250,700
6,732,578
1,017,292
7,965,986
31.5%
2,328,977
435,916
3.3%

Occupancy rate
Lease Information

As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
Operating periods

Profit and Loss Information for the 24th Fiscal Period①Rental 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 2017 or 2016 (\ Thousands)

Reference

Property management fee (Leasing management fees) of ② (\ Thousands)

Reference： Percentage of rental and other operating revenues

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
95.5%
181days
130,696
110,887
19,80938,1099,453
11,975
14,685
759
191
1,043
92,58735,391
57,196400
92,18729.2%
23,8634,556
3.5%

100.0%
100.0%
100.0%
100.0%
98.5%
97.0%
181days
128,585
112,324
16,26150,161
15,2108,599
11,262
14,187206
695
78,42427,92750,49678,42439.0%
17,2274,224
3.3%

100.0%
90.5%
90.5%
82.3%
74.0%
73.3%
181days
72,72959,357
13,37229,095
8,214
6,704
6,351
6,598
146
1,078
43,63413,08630,54827,22016,41340.0%
13,276
2,374
3.3%

99.8%
83.3%
95.7%
97.3%
99.0%
99.3%
181days
632,763
400,131
232,631319,243
81,66960,634
82,14527,7301,303
65,760313,519
116,879
196,640
202,630
110,88850.5%
121,256
18,113
2.9%

93.5%
92.5%
100.0%
100.0%
98.8%
181days
96,11780,801
15,31637,253
10,165
12,413
11,727
814
200
1,931
58,86423,93834,92558,86438.8%
24,793
3,162
3.3%

98.3%
99.1%
98.2%
94.6%
89.9%
181days
327,984
278,029
49,954
123,482
49,122
36,11725,816
7,819
542
4,064
204,501
37,323
167,178
34,728
169,77237.6%
72,377
10,8673.3%

100.0%
100.0%
100.0%
96.6%
181days
147,832
132,130
15,701
55,98912,774
12,23010,922
17,942
220
1,898
91,842
20,735
71,107
10,11581,72637.9%
24,474
4,891
3.3%

94.6%
92.2%
89.5%
181days
108,475
76,886
31,58835,067
9,034
4,386
6,034
5,135
147
10,32873,40726,36047,047
7,305
66,101
32.3%
17,546
3,711
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
146,914132,064
14,84936,736
16,665
10,080
1,257
4,480
271
3,981
110,177
46,242
63,935
3,895
106,282
25.0%
20,161
4,640
3.2%

96.5%
100.0%
95.5%
95.2%
98.0%
93.6%
96.3%
100.0%
100.0%
100.0%
181days
262,897
243,862
19,03558,095
18,426
15,46015,835
4,407
154
3,809
204,801
58,537
146,264
7,203
197,598
22.1%
30,9209,544
3.6%

100.0%
100.0%
100.0%
100.0%
91.7%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
69,641
59,954
9,686
18,577
4,068
4,263
4,104
5,257
37
845
51,064
9,262
41,801
2,098
48,966
26.7%
8,528
2,463
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
236,343
205,974
30,36966,461
17,36020,532
19,762
4,681
198
3,925
169,882
35,279134,602
7,894
161,98828.1%
41,0648,290
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
68,12868,124
4
6,116
5,916
200
62,01162,01162,011
9.0%
11,8330.0%

219,680
18,306

312,190
26,015

195,898
16,324

1,489,569
124,130

111,951
9,329

580,570
48,380274,671
22,889132,296
11,024

334,719
27,893

141,540
11,79547,5203,960

161,290
13,440-Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yrs (\ Thousands)
Reference：Amount of yearly avg.

21,259,195
1,771,599*Total: Cost-weighted average management period (days)- 49 -

a0451

a0521

a0571

a0751

a1051

5

【Reference】

Earnings Performance for the Individual Properties for the 24th Fiscal Period (November 1, 2016 to April 30, 2017)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A045

A052

Total 5
Properties
Sold
A057

A075

※As of April 30, 2017

Total of 102
Properties

A105

KDX Kanda
KDX Nihonbashi
KDX Gobancho
BUREX
Misaki-cho
Kabutocho
Building
Toranomon
Building
Building
January 10, 2008 February 1, 2008 March 31, 2008 December 26, 2011 December 3, 2014
KDX Roppongi
228 Building

Property Name
Acquisition Date
Price Information

3,300
16.8%

Acquisition price (\ Millions)
Percentage of total portfolio
Revenue from sale of the investment property (\ Millions)
Costs of the investment property (\ Millions)

3,396

Gain / Loss on sale of real estate (\ Millions)-

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

1,380
7.0%
5,070 (Note)
1,340(1,657) (Note)
-

1,951
9.9%

-

11,27057.4%
12,400
11,104
982
-

1,750
8.9%
2,440
1,734
680
-

19,651100.0%
19,91019,4745-100.0%
100.0%
100.0%
100.0%
86.8%
60.8%
73.7%
100.0%
100.0%
92days
14,722
12,791
1,931
8,914
1,721
2,974
1,178
2,954
37
48
5,808
2,770
3,037
-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
85.7%
100.0%
92days
22,563
20,844
1,719
9,491
2,044
4,722
1,167
1,438
45
74
13,071
3,248
9,823
1,575

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.8%
13.4%
100.0%
92days138,295
126,174
12,121
69,306
12,29736,736
10,234
9,217
306
515
68,98824,212
44,776-100.0%
100.0%
100.0%
100.0%
30days
8,332
8,332
5,633
225
5,191
167
49
2,698
4,055
(1,357)-

88days215,148
195,957
19,190109,877
18,88858,161
15,347
16,255494
729
105,270
37,932
67,3381,575

174days *Total: Cost-weighted average management period (days)
13,327,605
11,572,669
1,754,936
4,239,056
1,315,879
1,122,460
1,006,582
436,606
18,202
339,326
9,088,549
2,288,632
6,799,917
1,018,867

1,898

413,119-

Occupancy rate

⑥Capital expenditures (\ Thousands)

100.0%
100.0%
100.0%
87.4%
87.4%
73.8%
63.1%
54.4%
54.4%
92days31,232
27,814
3,418
16,530
2,600
8,536
2,767
2,479
55
91
14,702
3,645
11,057-⑦NCF （＝③-⑥） (\ Thousands)

14,702

5,808

11,496

68,988

2,698

103,695

8,069,682

Expense ratio （＝②／①）

52.9%
937
3.0%

60.5%
419
2.8%

42.1%
727
3.2%

50.1%
4,230
3.1%

67.6%
225
2.7%

51.1%
6,539
3.0%

31.8%
442,455
3.3%

80,0706,672

51,4804,290

61,4805,123549,760
45,81325,5992,133--

Lease Information

As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
Operating periods

Profit and Loss Information for the 24th Fiscal Period①Rental 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)

Property tax for the year 2017 or 2016 (\ Thousands)
Reference

Property management fee (Leasing management fees ) of ② (\ 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.

KDX Roppongi 228 Building (A045) , KDX Kanda Misaki-cho Building (A052) , KDX Gobancho Building (A057) and KDX Nihonbashi Kabutocho Building (A075) were sold on Feburary 1, 2017.
BUREX Toranomon (A105) was sold on December 1, 2016.
(Note) The aforementioned properties are sold to the single buyer with single agreement. Sale price of each property is not disclosed because the buyer has not given consent.

- 50 -

(Reference) Status of Borrowings
Borrowings as of April 30, 2017 are as follows.
Classification
Short-Term
Loans Payable
Current Portion of Long-Term Loans Payable
Long-Term Loans Payable

LenderDrawndown Date

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation
Sub Total
The Bank of Fukuoka, Ltd.
Resona Bank, Limited
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Development Bank of Japan Inc.
(Note 3)Development Bank of Japan Inc.
(Note 3)
The Bank of Fukuoka, Ltd.
(Note 3)
Mizuho Trust & Banking Co., Ltd.
(Note 3)
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
(Note 3)
Resona Bank, Limited(Note 3)
Sumitomo Mitsui Banking Corporation(Note 3)
Sub Total
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Aozora Bank, Ltd.
Resona Bank, Limited
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
The Hiroshima Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Nishi-Nippon City Bank, Ltd.
The 77 Bank, Ltd.
The Higashi-Nippon Bank, Limited
Development Bank of Japan Inc.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
The Hiroshima Bank, Ltd.
Mizuho Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mizuho Trust & Banking Co., Ltd.
The Bank of Fukuoka, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Mizuho Trust & Banking Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited
Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation

March 31, 2016
November 30, 2016
December 28, 2016
January 31, 2017
March 31, 2017
March 28, 2012
December 10, 2012
December 28, 2012
January 15, 2013
January 31, 2014
November 12, 2015
June 29, 2012
July 29, 2016
August 2, 2016
August 2, 2016
September 21, 2012
September 21, 2012
September 21, 2012
October 31, 2012
November 12, 2010
December 1, 2010
December 28, 2012
December 28, 2012
January 16, 2017
March 12, 2014
March 26, 2013
March 26, 2013
March 28, 2012
March 28, 2012
October 31, 2012
July 31, 2013
August 19, 2013
August 19, 2013
August 19, 2013
August 19, 2013
August 19, 2013
August 30, 2013
August 30, 2013
August 30, 2013
August 30, 2013
September 30, 2013
September 30, 2013
October 31, 2013
November 12, 2013
November 12, 2013
November 12, 2013
November 29, 2013
November 29, 2013
November 29, 2013
January 10, 2014
January 31, 2014
January 31, 2014
March 12, 2014
March 12, 2014
March 12, 2014
March 20, 2014
March 20, 2014
March 20, 2014
March 20, 2014
March 31, 2014
April 22, 2014
July 10, 2014
July 10, 2014
July 10, 2014
July 14, 2014
July 31, 2014
July 31, 2014
July 31, 2014
July 31, 2014
August 29, 2014
September 1, 2014
September 1, 2014
September 3, 2014
September 3, 2014
September 22, 2014
September 30, 2014
October 31, 2014
October 31, 2014
October 31, 2014
October 31, 2014
October 31, 2014
October 31, 2014
January 30, 2015
January 30, 2015

Balance at the
Beginning of
Period(\Thousands)

Balance at theEnd of Period(\Thousands)

1,500,000
1,500,000
500,000
500,000
2,000,000
1,000,000
1,200,000
2,000,000
1,500,000
1,000,000
1,000,000
1,000,000
5,000,000
1,000,000
1,000,000
2,500,000
2,300,000
700,000
500,000
500,000
2,250,000
1,000,000
1,000,000
29,450,000
1,400,000
1,000,000
2,500,000
500,000
1,000,000
1,000,000
500,000
500,000
500,000
700,000
500,000
300,000
1,500,000
1,800,000
900,000
500,000
1,000,000
2,000,000
500,000
200,000
1,000,000
900,000
1,300,000
3,700,000
2,300,000
450,000
1,800,000
1,800,000
3,000,000
4,000,000
3,000,000
2,000,000
2,500,000
2,900,000
500,000
2,000,000
500,000
1,000,000
1,000,000
2,700,000
300,000
2,200,000
1,000,000
800,000
500,000
1,000,000
950,000
2,700,000
1,000,000
3,000,000
2,000,000
1,500,000
1,000,000
2,000,000
1,000,000
1,500,000
1,500,000

2,000,000
500,000
500,000
1,000,000
4,000,000
1,500,000
1,000,000
1,000,000
1,000,000
5,000,000
1,000,000
1,000,000
2,500,000
2,300,000
700,000
500,000
500,000
500,000
2,250,000
1,000,000
1,000,000
22,750,000
1,400,000
1,000,000
2,500,000
500,000
1,000,000
1,000,000
500,000
500,000
500,000
700,000
500,000
300,000
1,500,000
1,800,000
900,000
500,000
1,000,000
2,000,000
500,000
200,000
1,000,000
900,000
1,300,000
3,700,000
2,300,000
450,000
1,800,000
1,800,000
3,000,000
4,000,000
3,000,000
2,000,000
2,500,000
2,900,000
500,000
2,000,000
500,000
1,000,000
1,000,000
2,700,000
300,000
2,200,000
1,000,000
800,000
500,000
1,000,000
950,000
2,700,000
1,000,000
3,000,000
2,000,000
1,500,000
1,000,000
2,000,000
1,000,000
1,500,000
1,500,000- 51 -

Average
Interest Rate
(Note 1)(%)

Last Repayment Date Payment Method

Usage

Remarks

0.410 March 31, 20170.330 November 30, 20170.330 December 28, 2017 Full on maturity
0.330 January 31, 20180.330 March 31, 2018

(Note 2)

Unsecured/
Unguaranteed

1.364 March 28, 2017
0.983 December 12, 2016
1.013 December 28, 2016
0.974 January 15, 2017
0.667 January 31, 20170.410 November 30, 2016
June 30, 2017
1.286
July 31, 2017
0.380
0.380 August 31, 20170.230 August 31, 2017
1.158 September 21, 2017
Full on maturity
1.158 September 21, 2017
1.158 September 21, 20171.096 October 31, 20172.023 November 12, 20172.206 November 12, 20171.086 December 28, 20171.086 December 29, 20170.280 January 31, 2018
0.751 March 12, 2018
1.036 March 26, 2018
1.036 March 26, 2018

(Note 2)

Unsecured/
Unguaranteed

1.770 March 28, 2019
1.770 March 28, 2019
1.253 October 31, 2018
July 31, 2018
0.557
0.950 August 19, 2018
0.950 August 19, 2018
0.950 August 19, 2018
0.969 August 19, 2018
0.950 August 19, 2018
1.080 August 31, 2018
1.080 August 31, 2018
1.080 August 31, 2018
1.420 August 31, 2020
1.059 September 30, 20191.059 September 30, 20190.887 October 31, 2018
0.820 November 12, 2018
1.074 November 12, 2020
1.074 November 12, 2020
0.844 November 30, 2018
1.122 November 30, 2020
1.122 November 30, 2020
1.205 January 31, 2021
0.932 January 31, 2020
1.130 January 31, 2021
0.781 March 31, 2019
0.916 March 12, 2020
1.358 March 12, 2023
Full on maturity
0.912 March 12, 2020
1.013 September 20, 2021
1.199 March 20, 2022
1.349 March 12, 2023
0.762 March 31, 20190.954 October 31, 2020
July 10, 2019
0.640
July 10, 2021
0.903
July 10, 2021
0.903
July 31, 2019
0.682
July 31, 2019
0.616
July 31, 2020
0.736
October
31, 2020
0.756
July 31, 2022
1.014
July 31, 2019
0.650
0.885 August 31, 2021
0.885 August 31, 2021
0.979 August 31, 2022
0.979 August 31, 2022
0.798 September 30, 2020
0.893 September 30, 2021
0.802 October 31, 2021
1.071 October 31, 2023
1.126 October 31, 2023
1.071 October 31, 2023
1.257 October 31, 2024
1.259 October 31, 2024
0.710 January 31, 2021
1.161 January 31, 2025

(Note 2)

Unsecured/
UnguaranteedClassification

LenderDrawndown Date

Balance at the
Beginning of
Period(\Thousands)

Balance at theEnd of Period(\Thousands)

Average
Interest Rate
(Note 1)(%)

Last Repayment Date Payment Method

Usage

Remarks

Long-Term Loans Payable

Sumitomo Mitsui Trust Bank, Limited
February 18, 2015
1,250,000
1,250,000
0.907 February 28, 2022
Aozora Bank, Ltd.
February 18, 2015
350,000
350,000
0.907 February 28, 2022
Sumitomo Mitsui Banking Corporation
February 18, 2015
1,700,000
1,700,000
1.157 February 29, 2024
Development Bank of Japan Inc.
February 18, 2015
1,250,000
1,250,000
1.314 February 28, 2025
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
February 27, 2015
2,100,000
2,100,000
1.153 February 28, 2025
Mizuho Bank, Ltd.
March 12, 2015
1,000,000
1,000,000
1.218 February 28, 2025
Sumitomo Mitsui Banking Corporation
March 31, 2015
2,500,000
2,500,000
1.266 March 31, 2025
Aozora Bank, Ltd.
April 30, 2015
April 30, 2022
2,300,000
2,300,000
0.825Mizuho Bank, Ltd.
August 31, 2015
500,000
500,000
0.872 August 31, 2022
The Bank of Fukuoka, Ltd.
August 31, 2015
500,000
500,000
0.872 August 31, 2022
The Higashi-Nippon Bank, Limited
August 31, 2015
500,000
500,000
0.872 August 31, 2022
The Nishi-Nippon City Bank, Ltd.
August 31, 2015
500,000
500,000
0.872 August 31, 2022
The 77 Bank, Ltd.
August 31, 2015
500,000
500,000
0.872 August 31, 2022
The Mie Bank, Ltd.
August 31, 2015
500,000
500,000
0.872 August 31, 2022
Sumitomo Mitsui Trust Bank, Limited
September 30, 2015
2,000,000
2,000,000
1.065 September 30, 2024
Mitsubishi UFJ Trust and Banking Corporation
October 30, 2015
1,000,000
1,000,000
0.989 October 31, 2024
Sumitomo Mitsui Banking Corporation
October 30, 2015
2,500,000
2,500,000
1.114 October 30, 2025
Development Bank of Japan Inc.
October 30, 2015
2,500,000
2,500,000
1.121 October 30, 2025
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 30, 2015
2,000,000
2,000,000
1.114 October 30, 2025
Mizuho Bank, Ltd.
October 30, 2015
1,500,000
1,500,000
1.114 October 30, 2025
Resona Bank, Limited
November 12, 2015
1,000,000
1,000,000
1.173 November 30, 2025
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
January 29, 2016
2,500,000
2,500,000
0.590 January 31, 2022
Unsecured/(Note 2)
Sumitomo Mitsui Banking Corporation
January 29, 2016
500,000
500,000
0.640 January 31, 2022 Full on maturity
Unguaranteed
Sumitomo Mitsui Banking Corporation
January 29, 2016
2,000,000
2,000,000
1.074 January 29, 2026
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
January 29, 2016
1,800,000
1,800,000
1.024 January 29, 2026
Sumitomo Mitsui Trust Bank, Limited
February 18, 2016
1,000,000
1,000,000
0.998 February 18, 2026
Aozora Bank, Ltd.
February 18, 2016
500,000
500,000
0.998 February 18, 2026
Resona Bank, Limited
March 30, 2016
1,000,000
1,000,000
0.169 March 31, 2019
Resona Bank, Limited
March 31, 2016
1,000,000
1,000,000
0.898 March 31, 2026
Development Bank of Japan Inc.
April 28, 2016
April 30, 2024
2,000,000
2,000,000
0.654
Development Bank of Japan Inc.
April 28, 2016
April 30, 2026
2,000,000
2,000,000
0.835
Mitsubishi UFJ Trust and Banking Corporation
April 28, 2016
April 30, 2026
1,000,000
1,000,000
0.865
Mitsubishi UFJ Trust and Banking Corporation
July 29, 2016
July 31, 2026
1,500,000
1,500,000
0.613
Mizuho Bank, Ltd.
August 2, 2016
July 31, 2026
1,000,000
1,000,000
0.544
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 31, 2016
1,000,000
1,000,000
0.330 October 31, 2018
Aozora Bank, Ltd.
October 31, 2016
1,000,000
1,000,000
0.668 October 31, 2024
Development Bank of Japan Inc.
October 31, 2016
4,000,000
4,000,000
0.734 October 31, 2026
Sumitomo Mitsui Banking Corporation
October 31, 2016
2,500,000
2,500,000
0.876 October 31, 2026
Sumitomo Mitsui Trust Bank, Limited
October 31, 2016
1,500,000
1,500,000
0.826 October 31, 2026
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 31, 2016
1,000,000
1,000,000
0.760 October 31, 2026
Resona Bank, Limited
December 12, 2016
500,000
0.982 November 30, 2026
Development Bank of Japan Inc.
December 28, 2016
1,500,000
0.950 December 28, 2026
Sumitomo Mitsui Trust Bank, Limited
January 16, 2017
500,000
0.860 January 31, 2027
Mitsubishi UFJ Trust and Banking Corporation
January 31, 2017
700,000
0.853 January 31, 2027
The Bank of Fukuoka, Ltd.
March 28, 2017
500,000
0.850 March 31, 2027
Sub Total
137,850,000
141,550,000
total
168,800,000
168,300,000
Note 1: The average interest rate is the weighted-average interest rate during the fiscal period, rounded to the third decimal place. Figures for borrowings, for which interest-rate swap transactions were contracted withthe aim of minimizing the risk of future increase in interest rates, are listed as weighted-average interest rates considering the effect of interest-rate swap.
Note 2: Funds procured through borrowings are used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings, etc.
Note 3: Borrowings are listed in the current portion of long-term loans payable from the fiscal period under review, listed in long-term loans payable in the previous fiscal period.

- 52 -