(TSE Code: 8982)

Presentation on Business Results for the First Fiscal Period(November 2, 2005 – October 31, 2006)

December 19, 2006

IndexI About Top REIT
I-1

Characteristics and Investment Strategies of Top REIT

II First Fiscal Period Results (Period Ended October
2006)
II-1
II-2
II-3
II-4
II-5
II-6
II-7

Highlights of the First Fiscal Period Activities
Unit Price Performance During the First Fiscal Period
Results of the First Fiscal Period (Summary)
Income Statements (Summary) /Dividend Statement
Balance Sheets (Summary)
Major Financial Indicators
Unitholders

III First Fiscal Period Operations (Period Ended October
2006)
III-1
III-2
III-3
III-4
III-5
III-6
III-7
III-8

External Growth: Investment Policies
External Growth: Sponsors’ Strengths
External Growth: Ito-Yokado Higashi-Narashino
External Growth: Fukasawa-House Tower H&I
Internal Growth: Maintaining High Occupancy Rate
Internal Growth: Highlights of the First Fiscal Period
Financial Strategies: Obtaining Credit Rating & Outstanding
Debt as of end of First Fiscal Period
Financial Strategies: Countermeasure against changes inInterest Rate

IV Portfolio Overview and Forecast for Second andThird Fiscal Periods
IV-1
IV-2
IV-3

Appraisal Values as of end of First Fiscal Period
Portfolio Data (Summary)
Forecast for Second and Third Fiscal Periods

V Growth Strategies
V-1
V-2
V-3

External Growth Strategies
Internal Growth Strategies
Financial Strategies

VI Asset Management
VI-1
VI-2
VI-3

Business Improvement Order and Submission of Business
Improvement Plan
Decision Making Process for Acquisition and Dispositionof Properties
Overview of Asset Manager

VII Appendix
VII-1
VII-2
VII-3
VII-4
VII-5

Portfolio Map
Portfolio Overview
Performance on Property basis
General Real Estate Market Conditions
Portfolio Property Details

Index
1

I About Top REITI
2

I-1 Characteristics and Investment Strategies of Top REIT
Top REIT AssetManagement（”TRAM”)

Asset
Management

DNA

Development

Capital+Property
Management Personnel

Top REIT

OfficeRetailBrokerage

Diversified
Portfolio

Three Major
Asset Classes

Residence
Other AssetClassesi.e., hotels andwarehouses

AssetManagement

Pursuing both steady growth and quality through a
blue-chip portfolio of excellent properties and prudent
management measures firmly founded in real estateexpertise
Strategic application of commissioned reports from athink tank

2. Optimal Application of Sponsor Strengths
Ensuring steady growth through the pipeline andwarehousing functions of sponsors

Sponsors
The Sumitomo Trust & Banking

1. Skilled Management of a Diversified Portfolio

Applying unique sponsor strengths to secure growth inasset value

38%

Nippon Steel City Produce
A wholly-owned subsidiaryof Nippon Steel31%

Oji Real Estate
A wholly-owned subsidiaryof Oji Paper

31%

SupportSponsorStrengths

Inheriting Sponsors’ DNA■ Top REIT Asset Management (“TRAM”) was established in collaboration withthree firms – The Sumitomo Trust & Banking, Nippon Steel City Produce andOji Real Estate.
■ Excellent personnel have been dispatched to TRAM from the three sponsors
to ensure real estate investment expertise as well as inheritance of theircorporate groups’ assets, that is, a long-term strategic view and diversified
know-how acquired through each of the sponsor’s businesses.

Ensuring Steady
IncomeSteady Growth ofPortfolio

Maximizing Investor Value
Utilizing Sponsor Strengths■ Sponsor skills shall be utilized to achieve steady growth by applying theirreal estate development abilities, brokerage networks and management
skills, including leasing activities that utilize the leasing demand of oursponsor groups.
■ Number of group companies
Sumitomo Trust Group
Nippon Steel GroupOji Paper Group

34
321
307

I-1
3

II First Fiscal Period Results (Period Ended October 2006)

II4

II-1 Highlights of the First Fiscal Period Activities
2005
Nov

2006
Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Actual Asset management Period: Mar 1 – Oct 31, 2006 245Days

TopicsExternal
GrowthListed(Mar 1)

New Asset(Jun 30)

7 Properties¥104,386mn

Dec

Second Fiscal Period

First Fiscal Period : Nov 2, 2005 – Oct 31, 2006 364Days
Established(Nov 2, 2005)

Nov

Obtained A2(Oct 3)

New Asset(Dec 8)
Regulatory order(Oct20)

8 Properties

9 Properties¥113,286mn¥123,921mn

Mar 1 Harumi Triton Square Office Tower Y ¥33,000mn, Akasaka Oji Building ¥9,660mn, Kanda Park Plaza¥5,156mn, Fare East Building ¥1,520mn and Nittetsu Honmachi Building ¥1,100mn
Mar 3 NEC Head Office Building ¥41,950mn
Mar 1 Sagamihara Shopping Center ¥12,000mn

Dec 8 Fukasawa House Towers H & I¥10,635mn

Jun 30 Ito-Yokado Higashi-Narashino ¥8,900mn¥33,400mn
33,400mn

Financial
Strategy(Debt)¥35,900mn
35,900mn

¥47,1
00mn
mn
47,100Mar 3 Long-Term Debt ¥33,400mn(Mar 20 Swap ¥11,000mn)

Short-Term Debt

Financial
Strategy(Equity)¥37,400mn
37,400mn

Net Assets¥100mn(May 31 Swap ¥23,000mn)

Jun 30 ¥4,000mn → Aug 31 ¥2,500mn → Dec 8 ¥13,700mn

Initial Public Offering¥82,260mn
82,260mn
Offering at ¥550,000 per unit

Oct 20 Highest¥743,000 (closing)

II-1
5II-2 Unit Price Performance During the First Fiscal Period
History of Top REIT Unit Price (March 1, 2006 benchmarked as 100)
140

Top REIT
ﾄｯﾌﾟﾘｰﾄ
TSE
REIT Index
東証REIT指数
TOPIX

High (closing price):
743,000 yen (October 20)
Decision to acquire ItoYokado HigashiNarashino Store (May 31)

Issuer rating
obtained (October 3)

120

100
Low (closing price):
556,000 yen (March 7)80
H18.3.1

H18.4.1

Term-end Unit Price(closing)

H18.5.1

H18.6.1¥689,000
Oct 31,2006

H18.7.1

H18.8.1

H18.9.1

H18.10.1

IPO Price¥550,000－

Highest since IPO(Closing)¥743,000

Oct 20, 2006

Lowest since IPO(Closing)¥556,000

Mar 7, 2006
II -2
6

II-3 Results of the First Fiscal Period (Summary)
Item

Length of Actual AssetManagement (days)

Actual Period of
AssetManagement
From Mar 1 to Oct
31, 2006

Forecast
based onMar 1, 2006

245

245

Difference between Forecast andActual Results

Changes0

Operating Revenue¥5,420mn¥5,190mn+ ¥230mn

Operating Income¥3,258mn––

Ordinary Income¥2,731mn¥2,487mn+ ¥243mn

Net Income¥2,729mn¥2,487mn+ ¥241mn

Total Assets¥128,340mn––

Interest-bearing Debt

¥37,355mn––

Total Debt

¥35,900mn¥33,400mn+ ¥2,500mn

Net Assets¥84,903mn––

Total Paid-in Capital¥82,260mn¥82,260mn¥0mn

Total Dividend Amount¥2,729mn¥2,487mn+ ¥241mn

Outstanding Investment Units

155,000

155,000

0

Dividend per Unit

¥17,609¥16,050+ ¥1,5598

7¥127,442mn–

Number of Properties
Appraisal Value as of Oct 31, 2006

Operating Revenue: + ¥230mn¾Acquisition of Ito-Yokado Higashi-Narashino:+ ¥242mn

Ordinary Income: + ¥243mn¾Acquisition of Ito-Yokado Higashi-Narashino:+ ¥107mn¾Reduction of Repairing Costs:+ ¥49mn¾Reduction of New Investment Unit Issuance Costs:+ ¥78mn■Other Reference
Number of Tenants

34

Total Rentable Area

229,231.70 sq m

Occupancy Rate

99.9%

Current Depreciation¥980mnCurrent Capital Expenditures¥241mn+1

Term-end Unit Price¥689,000–

Term-end Market Capitalization¥106,795mn

II-3
7

II-4 Income Statements (Summary) / Dividend Statement
Accounting Item

1st Period
Nov 2, 2005 – Oct 31, 2006
Value
(million yen)

Percentage(%)■Dividend Statement
Accounting Item

Value (million yen)

Ordinary Income and Expenses
I Operating Income and Expenses
1. Operating Income

5,420

Rental Income

5,420

2. Operating Expenses

2,161

Rental expenses

1,632

Asset management fees

414

Other operating expenses

114

Operating Income

100.0

39.9

60.1

1. Non-Operating Income

40.1

Interest received

2

Other non-operating income

2

II Non-Operating Income and Expenses

532

Interest paid

273

Amortization of funding costs

11

New investment unit issue costs

190

Other non-operating expenses

57

Ordinary Income

2,731

Net income before income taxes

2,731

Corporate residents and business taxes

1

Corporate tax adjustment(0)

Net Income

2,729

Retained Earnings at the End of Period

2,729

Retained earnings at end of period

2,729

Total Dividend Amount

2,729(Dividend per Unit)

3,258

2. Non-Operating Expenses

1st Period
Nov 2, 2005 – Oct 31, 2006

9.8

50.4

(17,609 yen)

Retained earnings carried forward

0【External Growth】¾ Acquisition of Ito-Yokado Higashi-Narashino Store【Internal Growth】¾ Portfolio occupancy rate at period end: 99.9%【Rental expenses】¾ Depreciation: 980 million yen¾ Management expenses: 367 million yen¾ Repair and maintenance:66 million yen

Others【New investment unit issue costs】¾ Expenses related to listing on the Tokyo Stock
Exchange, etc.

50.4

II -4
8

II-5 Balance Sheets (Summary)
Accounting Item

1st Fiscal Period(As of Oct 31, 2006)
Value(million yen)Accounting Item

Percentage(%)

Assets11,979Cash and deposits

2,453

Cash and deposits held in trust

7,622

Consumption tax refund receivable(refundable)

Other current assets

Value(million yen)

Percentage(%)

I Total Current Liabilities

4,088

3.1

Accounts payable

43

Short-term debt

2,500

Liabilities

I Total Current Assets

Tenants receivables

9.4

Tenant leasehold andsecurity deposits, etc.

29
1,846
26
116,315

90.6

1. Total Investment Properties, net

116,187

90.5

Building, etc.

38,102

Land

78,084

Other account payable

819

Expenses payable

49

Rents received in advance

670

Other current liabilities

II Total Fixed Assets

Total debts:¥35,900mn (1)Of which, interestbearing debt:¥1,455mn (2)39,347Long-term debt

33,400Tenant Lease and security
deposits in trust

5,774

Derivative debt

0

0.0

Total Liabilities

Other intangible assets

0

0.0

Net Assets

128

0.1

Leasehold and security deposits

10Long-term prepaid expenses

41

Deferred tax assets

55

Other investments

20

III Total Deferred Assets

45(1) + (2)Total interest-bearing
debt: ¥37,355mn

Organization expenses(initial expense)
Total Assets

45
128,340

100.0

30.7

173
43,43633.8

I Total Unitholders’ Equity

84,98966.2

1. Unitholders’ equity

82,26064.1

2. Reserves
Retained earnings at period end

0.05

II Total Fixed Liabilities

2. Total Intangible Assets

3. Total Investment and Other Assets

1st Fiscal Period(As of Oct 31, 2006)

2,729

Total reserves

2,729

2.1

II Adjustments for valuation,
conversion, etc.

(-86)

(0.0)

Deferred hedge losses(-86)

Total Net Assets

84,903

66.2

Total Liabilities and Net Assets

128,340

100.0

II -5
9

II-6 Major Financial Indicators
1st Fiscal Period Results

Term

Remarks

Nov 2, 2005 – Oct 31, 2006

March 1, 2006 – October 31, 2006

Actual Period of Asset Management

245 days

Ratio of interest-bearing debt to total
assets at period end

29.1%

Interest-bearing debt at period end/total assets at period end

Ratio of debt to total assets at period
end (“LTV”)

28.0%

Total debt at period end/total assets at period end

Rental NOI (Net Operating Income)¥4,768mn

Rental income – rental expenses + depreciation for the period

Semi-annualized(¥3,551mn)

Rental NOI/245 days x 365 days/2

Rental NOI yield

6.3%

Funds from Operation (FFO)
FFO per unit

¥3,709mn¥23,932

Return on Assets (ROA)(Annualized)
Return on Equity (ROE)(Annualized)
Unitholders’ ratio at period end

Rental NOI (semi-annualized) x 2/ total acquisition price of portfolio
at period end
Net income + depreciation
FFO/number of outstanding units issued at period end

2.6%

Ordinary income/(total assets as of March 1, 2006 + average total
assets at period end)/2(3.9%)

Converted to annual return based on real management period

3.4%

Net income/(net assets as of March 1, 2006 + average net assets atperiod end)/2(5.0%)

Converted to annual return based on real management period

66.2％

Unitholders’ equity at period end/total assets at period end

II -6
10

II-7 Unitholders
Investor Criteria

Number ofUnitholders

Share of Unitholders(%)

Number of Units
Held

Share of Units
Held(%)

Retail Investors/Others

5,769

94.1

16,470

10.6

Financial Institutions

171

2.8

110,045

71.0

Non-Financial Institutions (Corporate)

146

2.4

13,105

8.5

Overseas Investors

45

0.7

15,380

9.9

6,131

100.0

155,000

100.0

Total

■Top 15 Unitholders as of Oct 31, 2006
Name

Rank

Units

Share (%)

1

NikkoCiti Trust and Banking Corporation, trust account11,880

7.66

2

The Master Trust Bank of Japan, trust account

10,868

7.01

3Japan Trustee Service Bank, trust account

9,109

5.88

4

Trust and Custody Services Bank, trust account

8,241

5.32

5

The Bank of Ikeda

4,250

2.74

6

Resona Bank

4,159

2.68

7

The Joyo Bank

4,157

2.68

8

North Pacific Bank

4,130

2.66

9

American Life Insurance Company GAL

3,576

2.31

10

The Sumitomo Trust & Banking

3,176

2.05

11

Nippon Steel City Produce

3,162

2.04

11

Oji Real Estate

3,162

2.04

13

The Hiroshima Bank

3,060

1.97

14

The Fuji Fire and Marine Insurance

2,980

1.92

15

Trust and Custody Services Bank , money trust account

2,395

1.55

78,305

50.52

Total

■Number of units held
Overseas Investors

Retail Investors/

外国法人・個人
10%

個人・その他 Others
11%

Non-Financial Institutions(Corporate)
その他国内法人

8%

Financial
institutions
金融機関（含む証(including
券会社）
securities
firms)

71%■Number of unitholders
Financial
institutions
金融機関（含む証(including securities
券会社）
firms)

Other
corporations
その他国内法人

2%

Overseas Investors

外国法人・個人
1%

3%

Retail Investors/
others
個人・その他

94%

II -7
11

III First Fiscal Period Operations (Period Ended October 2006)

III
12

III-1 External Growth: Investment Policies
Diversified Portfolio
Asset Class
OfficeRetailResidence

Investment Focus

Allocation

Mainly in Central Tokyo
Three major metropolitan areasand core regional cities

Less Than
80%

Three major metropolitan areasand core regional cities

Less Than
50%

Mainly in Tokyo Metropolitan
Area Plus three major
metropolitan areas and coreregional cities

Less Than
50%

Investment focus will be determinedbased on characteristics of each asset

OthersLess Than
10%

Estimated Candidate Real Estate Market Nationally：
Approx. JPY 54.5Trillion(Aggregation of three types of properties)

Residence
20%
28％
RetailAn array of
Choices fromThree Asset Class
Enable to ScreenCompetitive
Properties

Office52％

Source: STB Research Institute“Estimated Investment Market Size by Property Type” dated Oct 31, 2005

Pursuing steady external growth through a
blue-chip portfolio of diverse asset types

Effectively Apply the Characteristics
of Each Asset Class

Avoid a Bias with Certain Asset Classes

EnableSelective
Investment

HighlyCompetitive

TargetPursuing External Growth
Office buildings

Focusing on Blue-Chip
Properties

Pursuing Both Steady Growth and Quality

Retailproperties

Residential
properties

Lowly
Competitive

III-1
13

III-2 External Growth: Sponsors’ Strengths
Top REIT Inc.
Top REIT Asset Management

Utilizing Sponsors’ Strengths
Agreement on Provision ofInformation & Brokerage Information

The Sumitomo Trust & Banking

Agreement on Warehousing

Properties brokered bysponsors
NEC Head Office

Structuring

Fukasawa House
Towers H & I

Providing
EquityHarumi Island
Triton Square
Office Tower Y

Nippon Steel City Produce

Oji Real Estate■Number of group companies
Sumitomo Trust Group 34
Nippon Steel Group321
Oji Paper Group307

Properties previously owned ordeveloped by sponsor groupcompanies
Ito-Yokado
Higashi-Narashino

Nittetsu Honmachi
Building

Faret East
Building

Sagamihara
Shopping Center

Akasaka Oji
Building

Pipeline

Kanda Park
Plaza

Warehousing

III-2
14

III-3 External Growth: Ito-Yokado Higashi-Narashino

Address

7-3-1 Higashi Narashino, Narashino City, Chiba

A c q u i s i tion Price

8.9 billion yen

Area of Land/Floor
Space

29,854.57㎡／45,338.37㎡

Structure/Floors

RC with a flat roof, etc./B1 4F, etc.

Completion

October 1994

Type of Title

Ownership■Large scale Ito-Yokado oriented shopping center located in the suburbs of the Tokyo metropolitan area
■Acquired from Nippon Steel Welding Products & Engineering Co., Ltd., a Nippon Steel group firm, through thebrokerage of Nippon Steel City Produce (use of the pipeline function (sponsor strength))

III-3
15

III-4 External Growth: Fukasawa-House Tower H&I

Address

2-1-2 Fukasawa, Setagaya Ward, Tokyo

Acquisition Price

10.635 billion yen

Area of land/Floor
Space

39,840.90m2/12,135.36m2

Structure/Floors

RC with concrete and flat rooves/14F above
groundCompletion

June 2004

Type of Title

Compartmentalized ownership interest(Fukasawa House Tower H&I)

■ First residential property acquired by Top REIT
■ Rental housing block (Tower H&I) of Fukasawa House Project, a project rich in greenery developed as an essential
element of a large-scale housing project■ Acquired through brokerage of Sumitomo Trust & Banking (use of the pipeline function (sponsor strength))
III-4
16

III-5 Internal Growth: Maintaining High Occupancy Rate
“Tenants First” = Maintaining and Enhancing Customer Satisfaction

Reflecting demand from tenants for facility management plan, thus improving assets quality and value

Deepening relationship with major tenants will support long-term stable cash flows■History of Occupancy■Major Five Tenants

Occupancy
稼働率100.0%Name of Tenants

Type ofIndustry

Name of Properties

Rented Area

Share (%)

95.0%

Ito-Yokado Co.,
Ltd.

Wholesale/
RetailSagamihara Shopping Center/
Ito-Yokado Higashi-Narashino

112,089.54m2

49.0

NEC

Manufacture

NEC Head Office Building

72,238.03m2

31.6

Sumitomo Metal
Industries

Manufacture

Harumi Island Triton Square
Office Tower Y

11,905.47m2

5.2

Japan Trustee
Services Bank

Financial/
Insurance

Harumi Island Triton Square
Office Tower Y

7,753.13m2

3.4Sony ComputerEntertainment

Wholesale/
RetailAkasaka Oji Building

5,080.98m2

2.2

90.0%

85.0%

80.0%

稼働率

Occupancy

平
成17年
平
成18年
成18年
平
成18年
平
成18年
平
成18年
平
成18年
平
成18年
成18年
End
of
End
of 平
End
of
End
of
End
of
End
of
End
of
End
of 平
End
of
Sep
2005
2006
2006
2006
20056
2006
2006
9月
末 Mar
3月2006
末 Apr4月
末 May
5月2006
末 Jun6月
末 Jul7月
末 Aug8月
末 Sep
9月
末 Oct
10月
末
99.7%

99.8%

99.8%

99.8%

99.9%

99.9%

99.9%

99.9%

99.9%

Leasing Agreement with Major TenantsLeasing agreement with NEC

Maintaining High and Stable Occupancy
Term End Occupancy Rate: 99.9%¾ 20-years fixed term leasing agreement that runs till December 28,2025 has been signed, arent for first eight years has been fixed Dec 28, 2013 (Cancellation option by tenants
thereafter a certain conditions)

Leasing agreement with Ito-Yokado¾ Long-term leasing agreement for Sagamihara is valid till Aug 10, 2013, and for HigashiNarashino is valid till Nov 30, 2014.

III-5
17

III-6 Internal Growth: Highlights of the First Fiscal Period
Internal Growth Measures for Oji Akasaka Building
1. Termination of Master Lease and Replacement of Property Manager
Master lease contract with the former property manager was terminated and Oji Real
Estate was hired as the new property manager. Termination of the master lease improveincome.

2. Enhancing Parking Lot Revenue
Discussions were held with several parking lot managers to improve usage of theparking lot. Master leasing was arranged with PARK24 Co. Ltd. for the entire parking lot
in December 2006.

Internal Growth Measures for Kanda Park Plaza
1. Enhancement of building management specifications
Management specifications including cleaning and facility checking have beenenhanced to improve tenant satisfaction. The enhancement will help Top REIT in futurenegotiations to revise rents upwards.

2. Changing the building maintenance company
In correlation with changes to the management specifications, the building maintenancecompany was selected through a bid. The work has been assigned to Nippon Steel
Community Service Co., Ltd., as its proposal was most cost-efficient.

III-6
18

III-7 Financial Strategies: Obtaining Credit Rating /Outstanding Debt as of end of First Fiscal Period
Issuer Rating
A2 Stable

Assigned by Moody’s Investors Service.

Top REIT has obtained an issuer rating of A2 (outlook: stable) on October 3, 2006 from Moody's Investors Service.
LenderShort
Term Debt

Sumitomo Trust
Mizuho CB

Execution
Date

Term-end
Balance

Interest Rate

Date ofMaturity

Remaining
PeriodPayment
MethodNote

June 30,2006

2,500mn

0.74% (Floater)

June 29,
2007

8 Months

BulletUnsecured2,500mn

0.74% (Avg. )－－5,200mn

0.79% (Floater)

Mar 3, 2009

2Year &
4Months

BulletUnsecured

BulletUnsecured

Sub-Total
Term
Loan 1

Long
Term
Debt

Sumitomo Trust
Mizuho CB
SMBCBank of Tokyo Mitsubishi UFJ
Chuo Mitsui Trust
Mitsubishi UFJ Trust

March 3,2006

3Years Sub-Total
Term Sumitomo Trust
Mizuho CB
Loan 1 SMBC

March 3,2006

5,500mn

1.39% (Fixed)

6,000mn*Weighted average after
interest rate swaps

16,700mn

1.20% (Avg.)－－

5,200mn

0.89% (Floater)

Mar 3, 2011

4Year &
4Months

5,500mn

1.92% (Fixed)

6,000mn*Weighted average after
interest rate swaps

5 Years Sub-Total

16,700mn

1.60% (Avg.)－－

Sub-Total

33,400mn

1.40% (Avg.)－

3Year &
4Months

TOTAL

35,900mn

1.35% (Avg.)－

Bank of Tokyo Mitsubishi UFJ
Chuo Mitsui Trust
Mitsubishi UFJ Trust

3Years &2Months(Avg.)

Note: Interest rates are rounded to the second decimal point, and the remaining periods are rounded to a whole number. The averages for interest rates andremaining periods are weighted average figures using period-end balance.

III-7
19

III-8 Financial Strategies:
Countermeasure against Change in Interest Rate
Leverage Ratio: LTV (as of Oct 31, 2006) 28.0%

Total Debt ¥35.9bn (¥47.1bn, as of Dec 18, 2006)

As of Mar 3, 2006
Long-Term Debt to Total Debt: 100%

Long-Term Debt: ¥33.4bn

Fixed Debt: 0.0%
Total Debt: ¥33.4bn

As of Oct 31, 2006

Short-Term
Debt: ¥2.5bn

Long-Term Debt to Total Debt: 93.0%

Long-Term Debt: ¥33.4bn
Fixed Debt: 64.1%(Fixed by Swap ¥23bn)
Total Debt: ¥35.9bn

As of Dec 18, 2006
Long-Term Debt: ¥33.4bn(Fixed by Swap ¥23bn)

Long-Term Debt to Total Debt: 70.9%
Short-Term Debt:¥13.7bn
Fukasawa House¥11.2bn

Fixed Debt: 48.8%
Total Debt: ¥47.1bn

III-8
20

IV Portfolio Overview and Forecast for Second and Third Fiscal PeriodsIV21

IV-1 Appraisal Values as of end of First Fiscal Period■ As of October 31, 2006
Asset
Class

Area

OfficeCentralTokyo

Property

Unit: Million Yen
Date of
Acquisition

Book Value

Acquisition
Price (A)NEC Head Office Building

Mar 3, 2006

43,47541,950

Harumi Island Triton Square
Office Tower Y

Mar 1, 2006

33,670Akasaka Oji Building

Mar 1, 2006

Kanda Park PlazaTokyo
Metropolitan
Kansai(B)-(A)

Acquisition
CAP

Appraisal
CAP

47,050

5,100

4.5%

4.1%

33,00039,100

6,100

5.3%

4.6%

9,964

9,660

11,700

2,040

4.8%

4.4%

Mar 1, 2006

5,191

5,156

5,202

46

5.2%

5.2%

Faret East Building

Mar 1, 2006

1,512

1,520

2,140

620

6.3%

5.9%

Nittetsu Honmachi Building

Mar 1, 2006

1,118

1,110

1,140

40

6.5%

6.3%

94,932

92,386

106,332

13,946

4.9%

4.4%

Sub-Total (6 Properties)
RetailTokyo
Metropolitan

Appraisal
Value (B)

Sagamihara Shopping CenterMar 1, 2006

12,081

12,00012,100

100

5.3%

5.3%

Ito-Yokado Higashi-Narashino

June 30, 2006

9,173

8,900

9,010

110

6.3%

6.3%

Sub-Total (2 Properties)

21,25420,90021,110

210

5.7%

5.7%

Total (8 Properties)

116,187

113,286

127,442

14,1565.1%

4.6%

Acquisition
Price (A)

(B)-(A)

Acquisition
CAP

Appraisal
CAP■ Newly Acquired Property in the Second Fiscal Period
Asset
Class

Area

Name of Property

Date of
Acquisition

Book Value

Appraisal
Value (B)

Residential

Tokyo
Metropolitan

Fukasawa House Towers H&I

Dec 8, 2006－

10,635

10,500

-135

4.3%

－

Sub-Total (1 Property)－

10,635

10,500

-135

4.3%

－

Total (9 Properties)－

123,921

137,942

14,0215.0%－

Note: Appraisal CAPs are the cap rates used when calculating the capitalized value using the direct capitalization method.
CAPs indicated in the subtotal and total columns are average cap rates weighted by the acquisition price (at acquisition) or value calculated at period end (at period end).

IV-1
22

IV-2 Portfolio Data (Summary)
Acquisition Price¥113.2bn (123.9bn (as of Dec. 18, 2006 ))Number of Properties: 8 ( 9 (as of Dec. 18, 2006))

Rentable Area 229,231.70㎡ （240,589.14㎡ (as of Dec. 18, 2006))
PML

2.1% (2.1% (as of Dec. 18, 2006))

Usage
100%

11.5%

88.5%

16.9%

81.6%

74.6%

40%
20%

（40.2％）

0%
上場時
IPO

（37.0％）End of
1 periodst第1期末

100%

8.6%

18.4%

80%
60%

Scale

（33.9％）

As 決算発表時
of Dec 18,
決算発表日現在
2006

Residential
住宅
Retail
商業施設（33.9％）
オフィスビル
OfficePercentage of
NEC Head
Office Building

80%

6.0%

5.5%

5.0%

10.7%

17.7%

24.8%

11.5%

10.6%

9.7%

60%
40%

Less than
1万㎡未満
2
10,000m

10,000m –1万㎡以上5万㎡未満
2
2

49,999m

71.8%

50,000m –5万㎡以上10万㎡未満
2
2

66.2%

60.5%

20%

99,999m

100,000m2
10万㎡以上or more

0%
上場時
IPO

End of
1 period
第1期末st

As of Dec 18,
決算発表時
決算発表日現在
2006

Note: This is based on floor area of whole one building.

Area
100%

Age

1.1%

1.0%

0.9%

13.0%

19.8%

26.7%

80%
60%
40%

86.0%

79.2%

100%
関西圏
Kansai areaTokyo
東京周辺都市部
Metropolitan
72.4%

Central
東京都心部

20%

Tokyo

0%
上場時
IPO

End of
1 period
第1期末st

As of Dec 18,
決算発表日現在
決算発表時
2006

4.9%

4.6%

4.2%

20 yearsor more15 years –15年以上20年未満
19 years
10 years –10年以上15年未満
14 years
5 years –5年以上10年未満
9 years
Less than
5年未満
5 years
20年以上

80%
49.4%

46.5%

40%

14.0%

19.8%

20%

31.6%

29.1%

上場時
IPO

End of
1 period

42.5%

60%
18.1%
26.6%
8.6%

0%

st第1期末As of Dec 18,
決算発表日現在
決算発表時
2006

IV-2
23

IV-3 Forecast for Second and Third Fiscal Periods
Second Fiscal Period
Nov 1, 2006 – Apr 30, 2007

Third Fiscal Period
May 1, 2007 – Oct 31, 2007

First Fiscal Period Results
Nov 2, 2005 – Oct 31, 2006

Reference only
(First Fiscal Period Results) ÷
245 Days × 365 Days ÷ 2

181

184

245 (Actual days ofmanagement)

182.5

Operating Revenue¥4,437mn¥4,498mn¥5,420mn¥4,037mn

Operating Expenses¥1,994mn¥2,433mn¥2,161mn¥1,610mn

Property expenses¥616mn¥1,050mn¥652mn¥485mnDepreciation¥858mn¥872mn¥980mn¥730mnOperating Income¥2,443mn¥2,064mn¥3,258mn¥2,427mn

Ordinary Income¥2,093mn¥1,628mn¥2,731mn¥2,034mn

Net Income¥2,092mn¥1,627mn¥2,729mn¥2,033mn

Number of Units
Issued155,000

155,000

155,000

155,000

Dividend per Unit

¥13,500¥10,500¥17,609¥13,117

NOI (Rental)¥3,820mn¥3,447mn¥4,768mn¥3,551mn

FFO¥2,951mn¥2,500mn¥3,709mn¥2,763mn

9 (including Fukasawa
House)

9 (including Fukasawa
House)

8

8

Item
Length of AssetManagement (days)

Number of
Properties Assumed

IV-3
24

V Growth Strategies

V25

V-1 External Growth Strategies
External Growth Policy
Steps to Ensure Stable
Dividend Growth in the Medium
to Long Term
Intense Competition for
Acquiring New Property

Utilizing Sponsor Strength

Achieving External Growth

Pipeline & Warehousing Functions

Pursuing Blue-Chip
Properties

Maximizing Investor Value through Stable Growth in Income and Portfolio Size
Ideal Portfolio Allocation in Medium Term

Example of Property Acquisition Impact
Assumptions

To lower concentration on NEC Head Office Building to 20%

Number of Units: 155,000

NOI: 4.3% p.a.

NEC Head Office Building

Cost of Debt: 1.4% p.a.

20.0%

Acquisition Price: ¥10bn

Additional
Properties

Depreciation and
Administrative Expenses

41.0%
15.7%

Approx. ¥1.6mn p.a.

NOI 4.3% p.a.

Non-Operating Expenses¥4.3mn p.a.

Approx. ¥1.45mn p.a.
Total Dividend
Approx. ¥1.25mn p.a.

Harumi Island
Triton Square
Office Tower Y

Effect on Dividend
Approx. ¥400
per Unit

Other Existing 23.3%
Properties

Additional properties needing to be acquired:
¥86bn

V-1
26

V-2 Internal Growth Strategies
Policy of Internal Growth
Endeavor to maintain and improve tenant satisfaction (“tenant first”) and aim to enhance medium- to long-term
earnings(1) Construct better relations with tenants to maintain high occupancy.
(2) Study and implement fine-tuned measures to increase earnings by sharing issues with property managers
and taking advantage of characteristics of each property (semi-annual consultation to establish annual
management plan, monthly meetings, etc.).
(3) Secure and maintain property manage quality and promote cost management efficiency.

3年

Maintain and Enhance Medium- to Long-term Earnings

Keep and raise rent levels

Enhance property competitiveness■ Construct better tenant relations■ Revise rents appropriately based onmarket rents in corresponding markets■ Enhance property competitiveness (implement
well-planned repairs and management tomaintain and improve functions, etc.)

Keep high occupancy rate
■ Construct better good tenant relations■ Ascertain tenant needs

NOI
Rent level
Repair andmaintenancefees

5年
Occupancy

Management
expensesUtilities, property
taxes, city planningtaxes, etc.

Realize reasonable management costs■ Review management specifications andrealize reasonable management cost
efficiency

V-2
27

V-3 Financial Strategies
Conservative Financial Policy
Conservative Financial Policy

Maintaining Multiple Financing Channels

Diversifying Debt Maturities

Maintaining Good Relationships with
Prominent Lenders to Secure Stable Debt
and Additional Borrowing Capability

Countering Future Interest Rate Fluctuation

Maintaining a Conservative Leverage Ratio
3年
New
Properties

Additional
Borrowing
Capability
Debt¥35.9bn

5年

Total
Acquisition
Value¥128.3bn

Deposit, etc.
¥7.5bnNet Assets¥84.9bn

Period-end LTV: 28%②①

 Administering a financial strategy based on a very
conservative LTV rate
LTV Ceiling: 60%
 Consistently maintain LTV at a conservative 40-50%
to ensure financing capabilities for acquisitions

V-3
28

VI Asset ManagementVI29

VI-1 Business Improvement Order and Submissionof Business Improvement Plan
Summary of Business Improvement Plan
(1) Reconfirm responsibilities of respective directors and receive pledges on compliance(2) Reinforce supervising functions by supervising directors(3) Prepare annual schedule for the meeting of the board of directors(4) Review operational rules for the meeting of the board of directors and clarify
administrative procedures for operating such meetings
We sincerely apologize for any troubles and concerns to the investors and other related parties caused by thismatter. We seriously take the administrative order imposed to us and honestly make every effort to carry out thebusiness improvement plan and to achieve thorough compliance to prevent recurrence of such event.
Overview of facts (reason for penalty)
・The first and fourth meetings of the board of directors held before listing (two meetings out of ten supposed to have been held between November 2005 and June
2006) (Agenda of the 1st meeting: Preparation of regulations and conclusion of agreements with service providers, Agenda of the 4th meeting: confirmation ofgeneral meeting of unitholders)
・The asset manager and executive director sent minute drafts and explained the content in advance to members of the board of directors’ meeting.
・The members signed the minutes that were written as if the members had met and decided the listed content on a later date (so-called “Circular resolutions”)

History(1) “Internal investigation”(2) July 7, 2006:Submitted “Internal Investigation Report” ( to theCommissioner of Financial Services Agency)(3) October 20, 2006: Received “Business Improvement
Order” (from the Director of the Kanto Local Finance Bureau)(4) November 13, 2006: Submitted “Business Improvement
Report” ( to the Director of Kanto Finance Bureau)

Content of the Business Improvement Order
Taking into consideration that the legal requirements for the meeting of the board of
directors have taken place, the following measures shall be implemented and the progressof implementation of such measures must be reported in writing to the Tokyo Local
Finance Office by November 20, 2006.
¾Improve and reinforce the legal compliance system¾Prepare and implement measures to prevent reoccurrence, and clarify the
responsibilities.

VI-1
30

VI-2 Decision Making Process for Acquisition and Disposition of Properties

Report of minority opinions(Note 1)

Department
in charge ofpreparing a
Proposals(Note 2)

Risk andCompliance
Committee

Compliance
OfficeExamination
anddecision

Examination(Rejection)
ReturnInvestment
andManagement
Committee

Examination
anddecision(Rejection and/or
Suspension) (Note 3)

Board ofDirectors

Final
Decision

Examination
anddecision(Rejection)(Note 1) Proposals will be passed to the Risk and Compliance Committee if they fall on either of the followings:• Material transactions with interested parties defined in the rules on transactions with interested parties(unanimous vote is required in this case)• The head of the Compliance Office recognizes the discussion of the issues in the Risk and Compliance Committee to be necessary.
(Note 2) Proposals will be passed to the Board of Directors if they fall under any of the followings:• The price of proposed acquisition or sale is over 10 billion yen and over 10% of Top REIT’s total assets.
• Capital raising plans (Final decisions on raising capital shall be made by the Board of Directors of Top REIT.)• Material transactions with interested parties defined in the rules on transactions with interested parties(Note 3) The head of the Compliance Office can suspend discussions and decisions and return the item to the Department in charge of if he or
she judges that the item has legal problems in the process of discussions or decision making at the Investment and Management Committee.

VI-2
31

VI-3 Overview of Asset Manager
Name

Top REIT Asset Management Co., Ltd.

Address

Nittetsu Nihonbashi Building
1-13-1 Nihonbashi, Chuo Ward, Tokyo

EstablishedOct 22, 2004

Paid-in Capital
Shareholders¥300mnThe Sumitomo Trust & Banking Co., Ltd. 38%
Nippon Steel City Produce, Inc. 31%
Oji Real Estate Co., Ltd. 31%

Business
Description

Investment trust manager andasset manager of J-REIT

Directors

President andRepresentative Director
Director (External)
Director (External)
Director (External)
Auditor (External)

Milestone

Oct 22, 2004
Dec 10, 2004
May 10, 2005
Jun 28, 2005
Nov 2, 2005

: Kyoichi TSUCHIDA: Tsutomu MUKAIDA: Toshio KITA
: Hiroyuki OHTA
: Kazuharu KOTANI(Oji Real Estate)(Nippon Steel City Produce)(Sumitomo Trust & Banking)(Oji Real Estate): Top REIT Asset Management (“TRAM”) established: TRAM obtained a license for real estate agent (The Governor’s of Tokyo No. (1) 83904): TRAM obtained an approval for discretionary agent license for real estate transaction(The Minister of Land, Infrastructure and Transport No. 35): TRAM obtained an approval for asset manager for investment corporation(The Prime Minister No. 47): TRAM entered into the Asset Management Agreement with Top REIT, Inc.

VI-3
32

VII Appendix

VII
33

VII-1 Portfolio Map
Tokyo
metropolitan area

Osaka
metropolitan area
Amagasaki

Faret East Building
Fukasawa House
Towers H & I

Ito-Yokado
Higashi-Narashino

Fukasawa House
Towers H & I
Sagamihara
Shopping Center

Shin-Osaka

Osaka

KyobashiNittetsu Honmachi
Building
TennojiHarumi Island Triton Square Office Tower Y

Central Tokyo

Akihabara

Iidabashi
Kanda

Kanda Park Plaza

Shinjuku
YotsuyaShibuyaWard

ChiyodaWard

Akasaka Oji
Building

Shibuya

Shinagawa
Ward

Tokyo

Chuo Ward
Shinbashi

MinatoWard

Harumi Island Triton
Square Office Tower Y

Ito-Yokado Higashi-Narashino

NEC Head
Office Building

Shinagawa
NEC Head Office Building

VII-1
34

VII-2 Portfolio Overview■ At End of First Fiscal Period
Asset
Class

Area

Rentable Area(m2)

Completion

Acquisition
Price

Share
(%)

144,476.05

72,238.03

Jan 1990¥41,950mn

Chuo Ward,Tokyo

267,132.67

23,239.62

Oct 2001

Akasaka Oji Building

Minato Ward,Tokyo

10,063.05

7,281.83

Kanda Park Plaza

Chiyoda Ward,Tokyo

5,511.83

Tokyo
Metropolitan

Faret East Building

Tachikawa,Tokyo

KansaiNittetsu Honmachi
Building

Osaka, Osaka

CentralTokyo

Property

Address

Floor Area(m2)

NEC Head Office
Building

Minato Ward,
Tokyo

Harumi Island Triton
Square Office Tower Y

OfficeRetailNo. ofTenants

PML(%)

37.0 (33.9)

100.0

1

1.6

¥33,000mn

29.1 (26.6)

98.8

7

1.4

Apr 1989¥9,660mn

8.5 (7.8)

100.0

3

6.3

4,537.66

Nov 1959¥5,156mn

4.6 (4.2)

100.0

10

14.1

16,206.34

4,663.33

Dec 1994¥1,520mn

1.3 (1.2)

100.0

1

2.9

6,714.09

4,409.53

Jun 1991¥1,100mn

1.0 (0.9)

100.0

9

8.0

116,370.00－¥92,386mn

81.6 (74.6)

－

31

－

－

Sub-Total (6 Properties)

Tokyo
Metropolitan

Occupancy(%)

Sagamihara Shopping
CenterSagamihara,
Kanagawa

56,351.42

61,763.28

Aug 1993¥12,000mn

10.6 (9.7)

100.0

2

3.8

Ito-Yokado HigashiNarashino

Narashino,Chiba

45,338.37

51,098.42

Oct 1994¥8,900mn

7.9 (7.2)

100.0

1

7.7

Sub-Total (2 Properties)－

112,861.17－¥20,900mn

18.4 (16.9)

－

3

－

Total (8 Properties)－

229,231.70－¥113,286mn

100.0 ( － )

99.9

34

2.1

Rentable Area(m2)

Completion

Acquisition
Price

Share (%)

Occupancy(%)

No. ofTenants

PML(%)

11,357.44

Jun 2004¥10,635mn– (8.6)

96.6

1

1.6

■ New Property Acquired in Second Fiscal Period
Asset
Class

Area

Tokyo
Metropolitan
Residential

Property

Fukasawa House
Towers H & I

Address

SetagayaWard, Tokyo

Floor Area(m2)

12,135.36

Sub-Total (1 Property)–

11,357.44–¥10,635mn– (8.6)–1–

Total (9 Properties)–

240,589.14–¥123,921mn– (100.0)

–

35

2.1

Note: The figures in parentheses in the investment ratio is the ratio after acquiring Fukasawa House Towers H & I.

VII-2
35

VII-3 Performance on Property basis
Unit: Million Yen
NEC Head
Office Building

Harumi Island
Triton Square
Office Tower Y

243

245

245

245

245

245

245

124

Total Revenue

1,805

1,770

511

239

163

143

544

242

Rental Revenue

1,805

1,770

511

239

163

143

544

242

Property RelatedExpenses Total

5

361

123

33

62

44

15

5

Property
Management Fees

-

248

52

11

31

20

2

0

Taxes and Public
Charges

0

0

0

0

0

0

-

-

Utility Costs

-

105

22

15

27

12

-

-

Insurance Fees

2

3

0

0

0

0

2

0

Repair Expenses

-

1

44

2

-

7

9

1

Others

2

3

3

3

2

3

2

1

1,800

1,408

387

205

101

99

528

236

Depreciation &Amortization

302

348

37

16

39

30

103

102

Operating Income

1,498

1,060

350

189

61

68

424

134

-

1

229

-

-

9

0

-

Length of Management(days)Net Operating Income

Capital Expenditures

Plan to appropriate property taxes and city planningtaxes in and after the 3rd fiscal period

Akasaka Oji
Building

Kanda Park
Plaza

Construction to renew
air-conditioning equipment,
etc.

Faret East
Building

Nittetsu
Honmachi
Building

Sagamihara
Shopping
Center

Ito-Yokado
HigashiNarashino

Construction to renew air-conditioning
equipment:219 million yen, etc.

VII-3
36

VII-4 General Real Estate Market Conditions■Trends in Real Estate Leasing Market（円／坪）(yen/tsubo)

5.7

6

5.1

4.6

4.4

4

3.6
2.9

4
2.7
2
13,04013,11013,18013,22013,35013,49013,67013,67013,83013,86013,96014,09014,19014,22014,33014,52014,46014,72014,52014,6700
Jun 2006

PeriodMar 2006

ended
06年6月期

Period06年3月期
ended

PeriodDec 2005

ended
05年12月期

Period

Sep 2005

ended
05年9月期

PeriodJun 2005

ended
05年6月期

PeriodMar 2005

Dec 2004

ended
05年3月期

Period

Sep 2004

04年12月期
ended

PeriodJun 2004

04年9月期
ended

PeriodMar 2004

ended
04年6月期

PeriodDec 2003

ended
04年3月期

Period

Sep 2003

ended
03年12月期

PeriodJun 2003

03年9月期
ended

PeriodMar 2003

03年6月期
ended

PeriodDec 2002

ended
03年3月期

Period

Sep 2002

ended
02年12月期

PeriodJun 2002

02年9月期
ended

PeriodMar 2002

02年6月期
ended

Period

02年3月期
ended

PeriodDec 2001

ended
01年12月期

Period

Sep 2001

ended
01年9月期

PeriodJun 2001

PeriodSource: “Office Market Report” by CB Richard Ellis
Rental＜賃貸マンション：東京都＞
Condominium Market in Tokyo
賃料坪単価の推移(Historical
Unit Rent per tsubo )(1,000yen/tsubo)（千円/坪）

東京都内・賃貸住宅
Expected returns(Residential期待利回り
Property in Tokyo)

2002年
2002
2003
2003年
2004年
2004
2005年
2005
2006年
2006

10.7
10.6
10.5

Luxuryrentalhousing forforeigners(skyscraper)

Luxuryrentalhousing forforeigners(low-rise)

5.2

5.2

5.6

5.3

Family type
(Joto area)

Studio(Joto area)

Studio(Jonan area)

外国人向け高級賃
貸 住 宅 ･超 高 層 型

外国人向け高級賃
貸住宅・低層型

ファミリー向け ･
城東地区

城

城

ファミリー向け ･
城南地区

ワンルーム・
東地区

ワンルーム・
南地区

Family type(Jonan area)

5.3

5.5

10.4
10.3
10.2
10.1
10
9.9
9.8
9.7

Jan
1月
2003.10

2004.04

2004.10

2005.04

2005.10

Feb
2月

Mar
3月

April
4月

May
5月

Jun
6月

Jul
7月

Aug
8月

Sep
9月

Oct
10月

Nov
11月

Dec
12月

2006.04

Source: “The Japanese Real Estate Investor Survey” by Japan Real Estate InstituteSource: “Rental Information For Rent Edition: Monthly Report” by Recruit■Trends in Retail Property Market

東京都内および近郊・商業店舗
Expected returns(Retail Property in Tokyo期待利回り
and its surroundings)

10.0

ＳＣの売上高（対前年同期比）
Shopping Center
Sales (year-on-year comparison)

4.0
3.0

9.0

2.0
1.0

8.0

0.0

7.0

-1.0
-2.0

Total
総合

テナント
Tenants

Apr – Jun 2006

2006年1～3月
Jan - Mar 2006
2006年4～6月

2005年10～12月
Oct – Dec 20052005年7～9月
Jul – Sep 20052005年4～6月
Apr – Jun 20052005年1～3月
Jan - Mar 20052004年10～12月
Oct – Dec 20042004年7～9月
Jul – Sep 2004

Apr2004年4～6月– Jun 2004

Jan2004年1～3月- Mar 20042006.04

Source: “The Japanese Real Estate Investor Survey” by Japan Real Estate Institute2003年10～12月
Oct– Dec 2003

Suburban
shopping center
郊外型SC

2005.10Jul– Sep 2003
2003年7月～9月

2005.04

Apr
– Jun
2003
2003年
4月～6月

2004.10

Jan
- Mar
2003
2003年
1月～3月

2004.04

Oct – Dec 2002
2002年10月～12月

2003.10

Jul – Sep 2002
2002年7月～9月

Luxury specialty store
表参道･都心型高級専門店
in city center (Omotesando)

Apr – Jun 2002
2002年4月～6月

Luxury specialty store
銀座・都心型高級専門店
in city center (Ginza)

3.0

Jan - Mar 2001
2001年1月～3月
Apr – Jun 2001
2001年4月～6月

4.2

-5.0

4.2

-4.0

4.0

Jan - Mar 2002
2002年 1月～3月

-3.0

5.0

Oct – Dec 2001
2001年10月～12月

5.9

6.0

Jul – Sep 2001
2001年7月～9月

（％）

5.7

9,000

Source: “The Japanese Real Estate Investor Survey” by Japan Real Estate Institute

（％）
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0

6

3.6

3.4

14,740

(year
）

3.4

6

10,000ended
00年6月期2006.04

2005.10

2005.04

2004.10

2004.04

2003.10

2003.04

2002.10

2002.04

2001.10

2.0

4.2
3.6

Mar 2001

2.5

4

ended
01年6月期

3.0

4.5
11,000

8

7

6

5.1

4.9

14,720

3.5

7.1

6.7
6.1
12,000Period

4.0

13,000Dec 2000

4.5

01年3月期
ended

5.0

10

Period5.5

12

14,00000年12月期
ended

6.0

14

Periodended
00年9月期
Sep 2000

6.5(%)

15,00015,090

丸の内
Marunouchi
日本橋
Nihonbashi
Kanda
神田
Toranomon
虎ノ門
Shiodome
汐留
赤坂
Akasaka
六本木
Roppongi
港南
Konan
西新宿
Nishishinjuku
Shibuya渋谷
Ikebukuro
池袋
Ueno
上野
Osaki
大崎

7.0

平均募集賃料Averageoffered rent
Averagevacancy rate
平均空室率Office Leasing Market
in 5 Major Wards in Tokyo「東京主要５区市況エリア」

16,00015,210

ﾘｽｸﾌﾟﾚﾐｱﾑ
Risk
premiumJun 2000

東京都心部・オフィス
期待利回り
Expected returns(office Property
in central Tokyo)（％）

14,480■Trends in Real Estate Sales Market

キーテナントAnchortenantSource: “Annual Sales Statistics of Shopping Centers” by the Japan Council of Shopping Centers

VII-4
37

VII-5-1 NEC Head Office Building
Address

5-7-1 Shiba, Minato-ku,
TokyoAcquisitionPrice

41.95 billion yen

Site Area

21,190.14m2

Floor Space

144,476.05m2

Floors3 Basement Floors
39 Floors Above Ground

Completion

January 1990

Title

Land, Building:
CoOwnership (50%)■ The building enjoys great transportation convenience with four railway lines usable (JR Yamanote Line, Keihin-Tohoku Line, Toei
Subway Mita Line and Toei Asakusa Line) providing good access to Haneda Airport and various places in central Tokyo.
■ This property is widely referred to as the NEC Super Tower and is a landmark in Tokyo.
■ NEC Corporation has its head office in this building. The area forms a base of the NEC group with affiliates concentrating nearby.

VII-5
38

VII-5-2 Harumi Island Triton Square Office Tower Y
Address

1-8-11 Harumi, Chuo-ku,
TokyoAcquisitionPrice

33 billion yen

Site Area

39,569.53m2

Floor
Space

267,132.67m2

Floors4 Basement Floors , 40 Floors
Above Ground

Completion

October 2001

Title

Land: Co-ownership(16,884,921/100,000,000)
Building: Compartmentalized
ownership (3rd – 15th Floor )■ Harumi Island Triton Square is a large multi-use complex completed in 2001 through coordinated redevelopment of the Harumi district of Tokyo,
a bayside area. The Square has three skyscraper office buildings as its landmark, retail facilities and a high-rise condominium.
■ The property is a 40-story skyscraper that is an intelligent office building built in 2001 and equipped with state-of-the-art specifications.
■ The Tokyo head office of Sumitomo Metal Industries and the head office of Japan Trustee Services Bank are the main tenants.

VII-5
39

VII-5-3 Akasaka Oji Building
Address

8-1-22 Akasaka, Minato-ku, Tokyo

Acquisition Price

9.66 billion yen

Site Area and Floor
Space

2,023.72m2／10,063.05m2

Floors

1 Basement floor, 9 Floors Above
GroundCompletion

April 1989

Title

Ownership■ This building is in an area extending from the Akasaka district of Tokyo, an area home to many hotels and embassies that is also popular among
foreign firms, to the Aoyama district, home to fashion, culture and music with many luxury brand shops.
■ The building faces Aoyama Dori (avenue) and enjoys great transit convenience as the closest station (Aoyama-itchome Station) has tracks for
the Tokyo Metro Subway Ginza and Hanzomon Lines, and for the Toei Subway Oedo Line. Although located in the center of Tokyo, the area isrich in greenery with the Akasaka Imperial Grounds extending along the opposing side of Aoyama Dori.
■ The anchor tenant is Sony Computer Entertainment.

VII-5
40

VII-5-4 Kanda Park Plaza
Address

2-2-2 Kajimachi, Chiyoda-ku, Tokyo

Acquisition Price

5.156 billion yen

Site Area and Floor
Space

632.98m2／5,511.83m2

Floors

1 Basement floor, 9 Floors Above
GroundCompletion

November 1959

Title

Ownership■ This building faces Chuo-Dori, which leads to Nihonbashi and Ginza, and is located a stone's throw from Kanda Station with tracks for JR Lines
and the Tokyo Metro Ginza Line. This building enjoys great transit convenience and is located in a popular commercial district.
■ The building was originally built in 1959 but then completely renovated and reinforced to meet anti-seismic specifications in 2003. The building iscomparatively large within the area and highly competitive with its excellent location.
■ The building houses a retail tenant ideal for the location on the first floor, and houses multiple tenants that value transit convenience.

VII-5
41

VII-5-5 Faret East Building
Address

2-34-7 Akebonocho, Tachikawa,Tokyo

Acquisition Price

1.52 billion yen

Site Area and Floor
Space

2,350.84m2／16,206.34m2

Floors

1 Basement Floor, 12 Floors Above
GroundCompletion

December 1994

Title

Land: Co-ownership (44,544,000/100,000,000)
Building: Compartmentalized Ownership(2rd – 5th and a part of 6th Floor )■ Tachikawa is a traditional railway hub with JR Tachikawa Station serving as a major terminal station for the Ome, Nambu and Chuo (connects to downtown
Tokyo) Lines. The convenience has heightened with the establishment of the Tama Toshi Monorail that runs through the Tama district.
■ The area is thriving with energy with a variety of stores centering on department stores and other large-scale commercial facilities concentrated in front of thestation.
■ The Faret Tachikawa area, where the property is located, is a business zone completed through the redevelopment of the former Tachikawa Air Force Base,and is a concentration of large, high-grade office buildings, hotel, etc.

VII-5
42

VII-5-6 Nittetsu Honmachi Building
Address

1-10-24 Utsubohonmachi, Nishi-ku,
Osaka

Acquisition Price

1.1 billin yen

Site Area and Floor
Space

852.55m2／6,714.09m2

Floors2 Basement Floor,
12 Floors Above Ground

Completion

June 1991

Title

Ownership■ This building is located close to Yotsubashi Avenue, one of the major streets connecting the renowned Umeda and Shinsaibashi/Nanba districtsof Osaka (Umeda district is a business base and Shinsaibashi/Nanba district is a commercial base in Osaka). It is also within walking distanceof the thriving Yodoyabashi business district, and close to the Honmachi Station on the Yotsubashi and Chuo Lines. Located near to green-rich
Utsubo Park, the property enjoys a good environment though it stands in a city center.
■ This office building was designed using Design Comprehensive System Design with particular attention to harmony with its surroundings andfeatures significant open public space.

VII-5
43

VII-5-7 Sagamihara Shopping Center

Address

3-13-33 Kobuchi, Sagamihara, Kanagawa

Acquisition Price

12 billion yen

Site Area and Floor
Space

30,949.80m2／56,351.42m2

Floors

1 Basement Floor, 4 Floors Above Ground

Completion

August 1993

Title

Ownership■ Located along national highway 16, a lengthy central thoroughfare in the Tokyo metropolitan area, the large shopping center is also near Kobuchi Station on the
JR Yokohama Line, enjoying excellent access by road or rail. This commercial area has a population of some 620,000 within a 5km radius and about 1.86
million within a 10km radius. Many shopping centers, home centers and specialty stores are found along national highway 16, including the neighboring Jusco
Sagamihara Shopping Center.
■ This property has approximately 19,000m2 in sales space comprised of the directly operated Ito-Yokado and specialty shops, and provides parking for over
1,300 vehicles. The site also features a family restaurant and gardening specialty store.

VII-5
44

VII-5-8 Ito-Yokado Higashi-Narashino Store

Address

7-3-1 Higashi Narashino, Narashino, Chiba

Acquisition Price

8.9 billion yen

Site Area and Floor
Space

29,854.57m2／45,338.37m2

Floors

1 Basement Floor, 4 Floors Above Ground

Completion

October 1994

Title

Ownership■ Located approximately 30km east of central Tokyo, Higashi-Narashino is a typical suburban bed town neighboring Funabashi City (west),
Yachiyo City (north) and the Hanamigawa Ward of Chiba City (east).
■ Having a total sales floor area of about 17,000m2 comprised of the directly operated Ito-Yokado store and specialty shops, the property has asize typical for Ito-Yokado's suburban stores and serves the community market. The property has parking for over 1,100 vehicles, and boasts
sufficient competitiveness as a suburban store. Anchored by the Ito-Yokado store, the shopping center also secures such specialty stores as
UNIQLO, Daiso and Shinseido as a convenient lifestyle facility.

VII-5
45

VII-5-9 Fukasawa House Towers H & I (Newly Acquired Asset in the Second Fiscal Period)

Address

2-1-2 Fukasawa, Setagaya Ward, Tokyo

Acquisition Price

10.6 billion yen

Site Area andFloor Space

39,840.90m2／12,135.36m2

Floors14 Floors Above Ground

Completion

June 2004

Title

Land: Co-ownership (1,584,269/10,000,000)
Building: Compartmentalized ownership■ The surrounding area has a luxurious and expansive streetscape and is one of the most prestigious housing areas in Tokyo. The property is
adjacent to Komazawa Park and the site itself has rich greenery providing an excellent residential environment.
■ Fukasawa House is a large housing project that consists of 13 residential towers with 772 units and a retail building within an expansive site. All
residences house underground parking. The subject property is the rental housing buildings in the project and has 124 units ranging in size from
2-4 bedroom units with areas of some 75m2 to 120m2. It comes with excellent disaster facilities including an anti-earthquake structure andpotable water generation system for emergencies.

VII-5
46

Contact

IR Contact
Hiromichi IWASAKI, Katsuhiko FUJIMOTO Investor Relations
Top REIT Asset Management Co., Ltd. (Asset Manager)
Phone:+81-3-3243-2181

Fax:+81-3-3243-2182

E-mail：info-top@top-reit-am.co.jp

HP：

http://www.top-reit.co.jp/english/

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Forward looking statements in this document shall not be reviewed as a guaranty of Top REIT’s future
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Although every attention has been paid to the contents of this document, the accuracy and appropriateness of
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Contact
47