December 15, 2009

Summary of Earnings Results for theSeventh Fiscal Period(From May 1, 2009 to October 31, 2009)
Top REIT, Inc. (listed on the Tokyo Stock Exchange with securities code 8982) hereby announces its earnings
results for the fiscal period ended October 31, 2009 (seventh fiscal period).

1. Earnings Results for the Seventh Fiscal Period
Seventh Fiscal Period: From May 1, 2009 to October 31, 2009
Sixth Fiscal Period: From November 1, 2008 to April 30, 2009
(1) Business Results

SeventhFiscal Period
Sixth
Fiscal Period

SeventhFiscal Period
Sixth
Fiscal Period

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,608mn

0.0%¥2,630mn(2.6%)¥1,960mn(4.3%)¥5,606mn

0.4%¥2,700mn

1.9%¥2,047mn

2.7%Net
IncomePeriod-on-Period
ChangeNet
Incomeper Unit¥1,961mn(4.2%)¥12,655

2.3%

1.1%

35.0%

¥2,046mn

2.7%¥13,205

2.4%

1.2%

36.5%

Ratio ofRatio ofRatio ofNet Income to
Ordinary Income to Ordinary Income toUnitholders’
Total Assets
Operating Revenue
Equity(Note) Net income per unit is rounded to the nearest yen.

(2) Dividends
Dividend
per Unit

Total Amount of
Dividends(excluding dividend inexcess of earnings)

SeventhFiscal Period
Sixth
Fiscal Period

Dividend in
Excess ofEarnings
per Unit

Total Amount of
Dividends in
Excess ofEarnings

Dividend
Payout Ratio

Ratio of
Dividends to
Net Assets¥12,654¥1,961mn¥0¥–mn

100.0%

2.3%¥13,206¥2,046mn¥0¥–mn

100.0%

2.4%(3) Financial Position

SeventhFiscal Period
Sixth
Fiscal Period

Total Assets

Net Assets

Ratio of
Unitholders’ Equity to
Total Assets

Net Assets per Unit

¥172,884mn¥84,140mn

48.7%¥542,842¥172,850mn¥84,208mn

48.7%¥543,280(Reference) Unitholders’ equity

Seventh Fiscal Period:¥84,140mn
Sixth Fiscal Period: ¥84,208mn(Note) Net assets per unit is rounded to the nearest yen.

1(4) Cash Flows

SeventhFiscal Period
Sixth
Fiscal Period

Net Cash
Provided by (Used in)Operating Activities

Net Cash
Provided by (Used in)Investing Activities

Net Cash
Provided by (Used in)
Financing Activities

Cash and
Cash Equivalents
at End of Period¥3,094mn(¥387mn)(¥2,046mn)¥9,791mn¥2,951mn(¥434mn)(¥2,253mn)¥9,132mn

2. Forecast of Earnings Results for the Eighth Fiscal Period
Eighth Fiscal Period: From November 1, 2009 to April 30, 2010

EighthFiscal Period

EighthFiscal Period

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,803mn

3.5%¥2,851mn

8.4%¥2,078mn

6.0%

Net
IncomePeriod-on-Period
Change¥2,077mn

5.9%(excluding dividend in excess of earnings)

Dividend in Excess of Earnings
per Unit¥13,400¥0

Dividend per Unit

(Note) Estimated net income per unit for the seventh fiscal period: ¥13,400*Explanation on the Appropriate Use of Earnings Results Forecasts, and Other Matters of Special Note
The earnings results forecasts and other forward-looking statements contained in this document are basedon information currently available to and certain assumptions deemed reasonable by Top REIT.
Accordingly, the actual results may differ materially due to a variety of factors. Moreover, the forecasts
should not be construed as a guarantee of the dividend amount.

3. Others(1) Changes in Accounting Policies
a. Changes accompanying revisions in accounting standards, etc.: No
b. Changes aside from a. above:Yes
To more appropriately allocate expenses each period, Top REIT has changed to a method thattreats property, city planning and depreciated asset taxes on real estate, etc. it owns. In theprevious method, it was treated as expenses related to the rent business and an equivalentamount paid in the corresponding management periods is recognized out of the assessed anddetermined taxation amount. Top REIT has changed to a method treating it as expenses
related to the rent business and an equivalent amount to that of the corresponding
management periods is recognized out of the assessed and determined taxation amount.
(2) Number of Investment Units Issued and Outstanding
a. Number of investment units (including own investment units) issued and outstanding at end of fiscal period
Seventh Fiscal Period:155,000 units
Sixth Fiscal Period: 155,000 units
b. Number of own investment units issued and outstanding at end of fiscal period
Seventh Fiscal Period:
0 units
Sixth Fiscal Period:
0 units2

This summary of earnings results is translated from the Japanese “Kessan Tanshin” report, dated
December 15, 2009, which is prepared in accordance with generally accepted accounting principles inJapan and Japanese law.
Unless otherwise stated, fractions less than the specified unit are rounded down to the nearest specified
unit for monetary amounts and rounded to the nearest specified unit for percentage figures.

4. Asset Management Performance(1) Acquisition and Selling of Assets
Top REIT began the seventh fiscal period with 14 properties (total acquisition value: ¥162,347 million). Whiledeliberations were made over the possible acquisition of properties with a focus on office buildings located incentral Tokyo, which Top REIT had carefully selected from the extensive property information collected
through the “optimal application of sponsor strengths”, the result of close monitoring of the real estate market
conditions and other developments caused reason for Top REIT to decide to also forgo the acquisition of new
properties in the seventh fiscal period.
As a result, the total acquisition value of Top REIT’s assets at the end of the seventh fiscal period remains thesame as the end of the sixth fiscal period at ¥162,347 million.
(2) Management and Maintenance of Portfolio Assets
The basic asset management strategy of Top REIT centers on sustaining and increasing revenue over the
medium to long term by maintaining and improving tenant satisfaction (the “Tenants First” policy) and keeping
operational management costs at an appropriate level.
Top REIT strives to improve tenant satisfaction by sustaining relationships of trust with tenants and discerning
tenant needs via property management companies in order to maintain high occupancy rates. Moreover,solicitation of new tenants and other efforts were appropriately made. As a result of such undertakings, theoccupancy rate of Top REIT’s entire portfolio at the end of the seventh fiscal period was 99.2%.
Regarding maintenance, Top REIT followed up on ensuring an appropriate perception of the operational
management conditions and steady implementation of asset management plans for each property. Top REIT
also carried out repair work that contributes to enhancing the competitiveness of properties and maintaining andimproving the functionality of properties based on asset management plans and took steps to keep relevantcosts at an appropriate level, as well as conducting efficient management of resources.

5. Procurement of Funds
Top REIT procures funds by adopting a financial policy that is based on stable financial management. During
the seventh fiscal period, Top REIT made no new fund procurements as it had no loans payable that were due forrepayment in the fiscal period while forgoing the acquisition of new properties. As a result, at the end of theseventh fiscal period, the total amount of loans payable stands at ¥81,740 million and the ratio of loans payable
to total assets (LTV) at 47.3%, both remaining the same as at the end of the sixth fiscal period. Of the total
amount of loans payable, 83.8% are long-term loans payable (including the current portion of long-term loans
payable) and 62.1% are loans payable with fixed interest rates, remaining the same as at the end of the sixth
fiscal period.
Furthermore, in an effort to increase the ratio of long-term loans payable and further diversify repayment dates,
Top REIT repaid ¥4,908 million in short-term loans payable before maturity on November 30, 2009 andprocured the same amount in long-term loans payable with a loan period of 2 years (Term Loan 10) on the sameday. This has raised the ratio of long-term loans payable to 89.8%.
3

The credit ratings of Top REIT as of the date of this report are as follows:
Rating Agency

Issuer Rating [Outlook]

Moody’s Investors Service, Inc. (Moody’s)

A3 [Negative]

Rating and Investment Information, Inc. (R&I)

AA– [Stable]

6. Outlook for the Eighth and Ninth Fiscal Periods
The earnings results forecasts for the eighth fiscal period (from November 1, 2009 to April 30, 2010) and theninth fiscal period (from May 1, 2010 to October 31, 2010) are as follows:
Fiscal Period

Eighth Fiscal Period

Ninth Fiscal Period[period of asset management][181 days][184 days]

Operating Revenue¥5,803mn¥6,034mn

Ordinary Income¥2,078mn¥2,171mn

Net Income¥2,077mn¥2,170mn

Dividend per Unit
(excluding dividend in excess of earnings)¥13,400¥14,000¥0¥0

Dividend in Excess of Earnings per Unit

(Note) The earnings results forecasts presented above are the current figures calculated based on certain
assumptions. Accordingly, the actual operating revenue, ordinary income, net income, dividend per unit
and dividend in excess of earnings per unit may vary due to changes in the circumstances. Moreover,the forecasts should not be construed as a guarantee of the dividend amount.
Furthermore, Top REIT made a decision, as of December 15, 2009 after the seventh fiscal period was over, toacquire a new property described below.
[Overview of the New Acquisition]
Type of Title:
Ownership of trust beneficiary interest in real estate in Japan
Name of property:
Sumitomo Corporation Nishiki-cho Building
Acquisition price
12,700 million yen
Date of sales agreement (Scheduled): December 16, 2009
Acquisition date (Scheduled):
January 13, 2010
[Overview of the Property to be Acquired]
Address:
3-11-1, Kanda Nishiki-cho, Chiyoda Ward, Tokyo
Usage:
OfficeLand area:
2,105.12m2 (Note 1)
4

Total floor area of the building:
Structure:
Completion date:
Type of title:
Number of tenants:
Total leasable area:
Total leased area:
Occupancy:

12,169.78m2
Steel and reinforced concrete structure with a flat roof,
2 basement floors and 9 floors above ground
March 1973 (Note 2)
Ownership
1 (Note 3)
8,025.65m2 (Note 3)
8,025.65m2 (Note 3)
100% (Note 3)(Note 1) Tokyo Metropolitan Government has a surface right (chijoken) for a part of the property’s land to own
facilities to operate Tokyo Prefecture’s high-speed subway train. In addition, with regard to a part ofthe property’s land, The Tokyo Electric Power Company and Sumitomo Corporation entered into alease agreement on October 31, 1970 for the purpose of using it as a site for a substation building.
(Note 2) The property underwent renovation construction works in November 2001, which included exteriors,interiors, water supply and drainage facilities, air conditioning facilities, sanitation facilities andelevator facilities. In addition, the property was designed and constructed in compliance with theformer Enforcement Ordinance of the Building Standards Law, and earthquake-proof reinforcement
construction was undertaken in October 2009 in compliance with the Act for Promotion of the
Earthquake Proof Retrofit of Buildings.
(Note 3) The entered figures are those expected, as of the end of November 2009, for the acquisition datescheduled for January 13, 2010.
Preconditions for Forecast of Earnings Results for the Eighth Fiscal Period (from November 1, 2009 to April 30,2010) and the Ninth Fiscal Period (from May 1, 2010 to October 31, 2010)
Item
Preconditions and Assumptions
Management• Eighth Fiscal Period: November 1, 2009 - April 30, 2010 (181 days)
Period• Ninth Fiscal Period: May 1, 2010 - October 31, 2010 (184 days)• In addition to the 14 properties Top REIT owns as of December 15, 2009, it assumes theacquisition of a trust beneficiary interest in Sumitomo Corporation Nishiki-cho Building(hereafter, beneficiary interest in trust) as of January 13, 2010 (scheduled). Meanwhile,
the actual circumstances may change when the acquisition of the beneficiary interest in
Portfolio Assets
trust becomes difficult, the timing of the acquisition is delayed, or other properties are
acquired or disposed of.
• Top REIT does not have forward commitments, etc. indicated in the supervision
guidelines of the Financial Services Agency (FSA) as of December 15, 2009.
Number of• The number of investment units issued and outstanding is based on the number as ofInvestment Units
October 31, 2009, which is 155,000 units, and assumes that no issuance of new
Issued andinvestment units will be made by October 31, 2010.
Outstanding• The total amount of loans as of December 15, 2009 is 81,740 million yen. For theacquisition of the beneficiary interest in trust, Top REIT plans to conduct new
borrowings, increasing the total amount of loans to 94,240 million yen.
Interest-bearing• It is assumed that loans of 17,370 million yen whose repayment dates will arrive during
Debt
the eighth fiscal period (repayment dates: February 26, 2010 and March 26, 2010) will
be completely refinanced.
• It is assumed that a loan of 8,500 million yen whose repayment date will arrive during
the ninth fiscal period (repayment date: June 30, 2010) will be completely refinanced• Top REIT adopts a method treating property, city planning and depreciated asset taxes
on real estate, etc. it owns as expenses related to the rent business and an equivalent
Operatingamount to that of the corresponding management periods is recognized out of the
Expenses
assessed and determined taxation amount. In addition, as for the acquisition of realestate or beneficiary interests in trust in real estate, the adjustments equivalent toproperty tax for the acquired fiscal year paid to the transferor will be included in5Non-Operating
ExpensesDividend per
Unit
Dividend in
Excess ofEarnings per Unit

Othersacquisition costs, and thus will not be incurred as expenses in the corresponding period.
• It is assumed that the amount of property tax will be 566 million yen for the eighthfiscal period and 589 million yen for the ninth fiscal period.
• It is assumed that depreciation and amortization will be 1,128 million yen for the eighthfiscal period and 1,082 million yen for the ninth fiscal period.
• Repair and maintenance costs are generally expenses that vary greatly by fiscal period
and do not occur periodically, thus they may vary greatly from the assumed expenses.
• Management operation fees are assumed by reflecting the varying factors of expenses
based on past results.
• It is assumed that non-operating expenses for the eighth fiscal period will be 779 million
yen, of which interest expenses (including loan-related fees) will be 762 million yen.
• It is assumed that non-operating expenses for the ninth fiscal period will be 225 million
yen, of which interest expenses (including loan-related fees) will be 874 million yen..
• Dividends (dividend per unit) are calculated based on the dividend policy stipulated in
Top REIT’s Articles of Incorporation.
• Top REIT does not currently anticipate dividends in excess of earnings per unit.
• It is assumed that there will be no changes in legislation, taxation, accounting standards,
listing rules, or rules and requirements imposed by the Investment Trusts Association,
Japan which would impact the aforementioned forecasts.
• It is assumed that there will be no unpredictable material changes in general economic
trends and real estate market conditions, etc. in Japan.

67. Financial Statements(1) Balance Sheets(Unit: thousand yen)
Sixth Fiscal Period(as of April 30, 2009)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Income taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Deferred organization expenses
Total deferred assets
Total assets

7

Seventh Fiscal Period(as of October 31, 2009)

4,572,154
4,559,919
35,85099,695232
1,609
23,897(523)
9,292,836

5,422,053
4,734,526
40,663
118,78010
709
52,926
10,369,670

1,115,185(48,213)
1,066,972
3,630(1,014)
2,616
11,436(3,551)
7,885
506
(147)
358
4,888,525
55,821,348(5,822,551)
49,998,796
654,166(119,642)
534,523
195,190(40,223)
154,966
99,570(31,807)
67,763
106,523,104
163,245,514

1,115,185(68,974)
1,046,211
4,637(1,452)
3,184
11,436(5,072)
6,364
1,004
(238)
765
4,888,525
55,914,251(6,864,558)
49,049,692
654,166(139,641)
514,524
195,190(50,115)
145,075
102,522(42,465)
60,056
106,523,104
162,237,504

276
276

255
255

10,000116,837
63,937
104,512295,287
163,541,078

10,00083,23752,537
120,377
266,153
162,503,912

17,01017,010172,850,925

11,34011,340172,884,923-

(Unit: thousand yen)
Sixth Fiscal Period(as of April 30, 2009)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

8

Seventh Fiscal Period(as of October 31, 2009)

90,535
13,278,000
9,000,000
257,127
182,75385
47,689760,984
5,114
23,622,290

221,363
13,278,000
17,500,000
245,514
176,511375
74,301
754,800
2,552
32,253,420

59,462,000
141,082
5,239,934
177,21065,020,228
88,642,519

50,962,000
129,308
5,248,561
151,123
56,490,992
88,744,413

82,260,100

82,260,100

2,046,935
2,046,935
84,307,035

1,961,454
1,961,454
84,221,554(98,629)(98,629)
84,208,405
172,850,925(81,044)(81,044)
84,140,509
172,884,923

(2) Statements of Income(Unit: thousand yen)
Sixth Fiscal Period(November 1, 2008 –April 30, 2009)
Operating revenue
Rent revenue – real estate
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Audit fee
Provision of allowance for doubtful accounts
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Amortization of deferred organization expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Refunded Property taxes
Total extraordinary income
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

9

Seventh Fiscal Period(May 1, 2009 –October 31, 2009)

5,580,387
26,546
5,606,933

5,584,441
23,797
5,608,239

2,346,377
426,421
7,778
60,9973,600
10,000523
50,2842,905,982
2,700,950

2,429,438
423,051
7,766
59,841
5,250
10,000–42,7152,978,064
2,630,175

13,822
3,821
17,644

6,676
900
7,577

626,618
5,670
38,523670,8122,047,782

619,578
5,670
52,320677,568
1,960,183

–
–

2,312
2,312

2,047,782
1,149
(209)
939
2,046,842
93
2,046,935

1,962,495
825
221
1,047
1,961,448
5
1,961,454

(3) Statements of Cash Flows(Unit: thousand yen)
Sixth Fiscal Period(November 1, 2008 –April 30, 2009)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of deferred organization expenses
Amortization of right of trademark
Increase (decrease) in allowance for doubtful accounts
Interest income and interest on securities
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in income taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in other current assets
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

10

Seventh Fiscal Period(May 1, 2009 –October 31, 2009)

2,047,782
1,151,729
5,670
21
523
(13,822)626,618
8,417
253(38,074)(23,076)
26,504
3,936(149,867)
18,469(53,333)(16,462)3,595,289
13,822(656,873)(1,120)2,951,117

1,962,495
1,105,369
5,670
21
(523)
(6,676)
619,578(4,813)900(18,635)
1,047
53,177(11,612)
26,599(5,141)
33,599(49,426)
3,711,629
6,122(622,922)(536)
3,094,292(470,000)
470,000–(410,137)(28,686)
84,784(80,395)(434,434)(365,000)–(5,209)(14,499)(11,774)
34,907(26,280)(387,857)

13,278,000(9,300,000)
12,462,000(16,700,000)(1,993,765)(2,253,765)
262,917––––(2,046,930)(2,046,930)
659,505

8,869,155
9,132,073

9,132,073
9,791,579

8. Portfolio Data
Asset
Class

Acquisition
Value

Appraisal
Investment
Value atBreakdown
End of Period(Note)(million yen)(million yen)

NEC Head Office Building

41,95047,500

28.8

Harumi Island Triton Square OfficeTower Y

33,00039,50023.9

Akasaka Oji Building

9,660

14,400

8.7

Kanda Park Plaza

5,156

5,179

3.1

Shiba-Koen Building

5,770

3,790

2.3

Harumi Island Triton Square OfficeTower Z

20,00015,700

9.5

TokyoMetropolitan
Area

Faret East Building

2,091

2,780

1.7

KansaiNittetsu Honmachi Building

1,100

1,440

0.9

118,727

130,289

79.0

Sagamihara Shopping Center

12,00010,7006.5

Ito-Yokado Higashi-Narashino Store

8,900

5,416

3.3

Musashiurawa Shopping Square

4,335

3,790

2.3

25,235

19,906

12.1

Fukasawa House Towers H&I

10,6357,540

4.6

Ecology Toyosu Procentury

5,160

4,640

2.8

Subtotal (2 properties)

15,795

12,180

7.4

Central Tokyo

2,590

2,573

1.6

2,590

2,573

1.6

162,347

164,948

100.0

Area

Property Name(%)

Central Tokyo
OfficeBuilding

Subtotal (8 properties)

RetailPropertyTokyo
Metropolitan
Area

Subtotal (3 properties)Tokyo
Residential Metropolitan
Area
Property

Other
PropertyOAK PLAZA

Subtotal (1 property)

Total(Note) The investment breakdown is the appraisal value at end of period for the applicable property or theapplicable asset class expressed as a percentage of the sum total of the appraisal value at end of period
for all properties in the portfolio and is rounded to one decimal place.

11

For more information, please visit our website http://www.top-reit.co.jp/english/
Contact for inquiries in Japanese:
Top REIT Asset Management Co., Ltd. (Asset Manager)
Koji Murata, Director, General Manager, Finance Department+81-3-3243-2181
Contact for inquiries in English:
Top REIT Asset Management Co., Ltd. (Asset Manager)
E-mail address: info-top@top-reit-am.co.jp

DISCLAIMER:
Top REIT, Inc. makes no assurance or warranty with respect to the completeness or accuracy of this English
translation. In the event of any discrepancy between the Japanese original and this English translation, theJapanese original shall prevail. For complete and accurate information, please refer to the Japanese original.

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