KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED October 31, 2016 (REIT)(May 1, 2016 to October 31, 2016)
December 14, 2016
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:

Ryosuke Homma, CEO and President

Inquiries:

Hikaru Teramato, General Manager of Planning Department, Office REIT Division
TEL +81-3-5623-8979

Planned submission of semiannual securities report: January 30, 2017

Planned start of distribution payments: January 20, 2017

Preparing presentation material:

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

1. PERFORMANCE FOR THE FISCAL PERIOD ENDED October 31, 2016 (May 1, 2016 to October 31, 2016)(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%

October 31, 2016

13,491

(6.1)

5,788

(5.1)

4,603

(4.4)

4,601

(4.4)

April 30, 2016

14,362

4.5

6,102

2.7

4,816

5.5

4,815

5.5

Net Income per unit

Return on Unitholders’ Equity

Ordinary Income toOperating Revenues

Ordinary Income to Total Assets

For the six months ended

Yen

%

%

%

October 31, 2016

11,365

2.2

1.1

34.1

April 30, 2016

11,892

2.3

1.2

33.5

(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%%

October 31, 2016

11,365

4,601

0

0

100.0

2.2

April 30, 2016

10,707

4,335

0

0

90.0

2.0

Total Distributions in
Excess of Earnings

Distribution Ratio to
Unitholders’ Equity

Payout Ratio

Note 1: Distributions per unit for the fiscal period ended April 30, 2016 is calculated by dividing the amount remaining after deducting provision of reserve for reduction entry(¥480 million) from unappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distributions per unit andnet income per unit is due to this calculation.

(3) Financial Position(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

October 31, 2016

413,031

212,82551.5

525,644

April 30, 2016

408,813

212,555

52.0

524,977(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

October 31, 2016

7,472

(5,473)(1,338)

19,836

April 30, 2016

21,248(20,654)(3,179)19,175This notice is an English-language translation of the original Japanese announcement on our website released on December 14, 2016. However, no assurance or warranties are given withrespect to the 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 April 30, 2017 (November 1, 2016 to April 30, 2017)(% change from the previous fiscal period)
Operating Revenues(Millions of Yen)%

For the six months ending
April 30, 2017

Operating Income(Millions of Yen)

14,97811.0

Ordinary Income(Millions of Yen)
%

5,809

0.4

%
4,657

Distributions per
Unit (Excluding
Excess of Earnings)

Distributions in
Excess of Earnings
per Unit

%

Yen

Yen

1.2

11,5000

Net Income(Millions of Yen)

1.2

4,656

(Reference) Estimated net income per unit for the fiscal period ending April 30, 2017: ¥11,500
Forecasted number of investment units issued and outstanding as of April 30, 2017: 404,885 units
Forecasted average number of investment units during the fiscal period ending April 30, 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 October 31, 2016: 404,885 units
As of April 30, 2016: 404,885 units(b) Number of treasury units at period end
As of October 31, 2016: 0 units
As of April 30, 2016: 0 units
Note: Please refer to page 25 “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
Law 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-fourth Fiscal Period Ending April 30, 2017”
for the precondition of forecast for the twenty-fourth fiscal period ending April 30, 2017.

This notice is an English-language translation of the original Japanese announcement on our website released on December 14, 2016. However, no assurance or warranties are given withrespect to the 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 July 28,2016), 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 July 28, 2016), and accordingly this information has been omitted from this document.
(2) Operating Conditions① Operating Conditions for the Twenty-third Fiscal Period (fiscal period ended October 31, 2016)
A. The Investment Corporation
Kenedix Office Investment Corporation (“the Investment Corporation”) was established on May 6, 2005 in accordance with theInvestment Trust and Investment Corporation Law (Law No. 198 of the year 1951, including amendments thereafter). On July 21,
2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo Stock Exchange, Inc. (“theTokyo Stock Exchange”) with a total of 75,400 investment units issued and outstanding (Securities Code: 8972). Subsequently, theInvestment Corporation raised funds through public offerings and including seven global offerings. As a result, as of October 31,
2016, the end of the twenty-third 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 ourasset manager. In collaboration with the Asset Management Company, the Investment Corporation strives to maximize cash
distribution to investors by securing stable earnings and sustainable investment growth. To this end, the Investment Corporation
adopts the basic policy of conducting flexible and dynamic investment stance that seeks to respond to its environment and market
trends, and endeavors 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 October 31, 2016), the Japanese economy continued to be on a mild
recovery trend backed by improved employment/income environment. The real GDP growth rate for July to September 2016 (TheFirst Preliminary Estimates) showed an annual 2.2% increase, a plus figure for the third consecutive quarter. However, there aresome increasing uncertainties lying ahead due to economic slowdown in emerging countries such as China, the U.K.’s decision toleave the EU and other factors.
Individual consumption has begun to gradually pick up despite almost unchanged capital investment by corporations, bringing acontinuous mild recovery trend to the economy.
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. Moreover,
the average vacancy rate of major 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 April 30, 2016), the Investment Corporation owned 97 properties(with a total acquisition price of ¥393,371 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 October 31, 2016), the Investment
Corporation acquired two office buildings (KDX Shin-Nihonbashi Ekimae Building: acquisition price of ¥3,829 million, KDX
Nihonbashi Edo-dori Building: acquisition price of ¥1,350 million).
As a result, the number of properties owned as of October 31, 2016 (excluding the TK interest, same applies below.) amounts to 99(with a total acquisition price of ¥398,350 million). Looking at the portfolio distribution by property types, 92.4% was comprised of
office buildings, 5.6% of central urban retail properties, 1.3% of residential property and 0.7% of other property on an acquisition
price basis. The occupancy ratio as of the end of the twenty-third fiscal period (fiscal period ended October 31, 2016) continuously
maintained high occupancy ratio of the same 96.9% as the level of the end of the previous fiscal period (fiscal period ended April 30,2016).

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

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 October 31, 2016) (excluding Shinjuku 6-chome Building (Land)) to Kenedix Property Management,
Inc. By doing so, the Investment Corporation has strived to unify policies, specifications, procedures, points of contact, etc. for theprovision of swift and quality services in the operation and management of properties.
In terms of leasing, in light of the recovery 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 ofoffice buildings, 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 October 31, 2016), the occupancy ratio of theInvestment Corporation’s owned office buildings in the Tokyo Metropolitan Area stood at 97.2%, considerably increased by 0.8
point compared with the end of the previous fiscal period (fiscal period ended April 30, 2016), and for the Investment Corporation’s
office buildings overall stood at 96.8%, continuously maintained high occupancy ratio of the same as the level of the end of theprevious fiscal period (fiscal period ended April 30, 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, achieved almost 50 cases of upward rent revisions similar to the previous
fiscal period.
Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for our office buildings was 1,120 (Note 1) (Note 2) as of the end of the fiscal period under review (fiscal
period ended October 31, 2016) and diversifying tenant’s stratum further. Furthermore, floor area leased to the top 10 office endtenants as a proportion of total leased floor area of the total portfolio was 8.4%. In addition, tenants of office buildings 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 1,148 as of the end of the fiscal period (fiscal period ended October 31, 2016).

C. Capital Financing(a) Status of Borrowings
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates for its interest-bearing
debt. During the fiscal period under review (fiscal period ended October 31, 2016), the Investment Corporation undertook new
borrowings equivalent to the funds to repay borrowings of ¥13,500 million that matured during the fiscal period. Also, the Investment
Corporation undertook new borrowings of ¥3,000 million at the time of the property acquisition. As a result, the balance of interestbearing debt as of October 31, 2016 is comprising ¥168,800 million in borrowings (¥1,500 million in short-term borrowings (Note 1)and ¥167,300 million in long-term borrowings (Note 1)) and ¥9,300 million in investment corporation bonds, and interest-bearing debt
ratio is 43.1%. (Note 2)
Furthermore, as of the end of fiscal period under review (fiscal period ended October 31, 2016), ¥105,850 million out of ¥112,350
million of long-term borrowings, which have floating interest rates, have been hedged and practically fixed by utilizing interest-rate
swap agreements, etc. In addition, the long-term debt ratio (Note 3) was 99.2% and the long-term fixed interest debt ratio (Note 4) was
95.5%.
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 3.6 years at the end of the nineteenth fiscal
period (fiscal period ended October 31, 2014) to 4.9 years at the end of the fiscal period under review (fiscal period ended October 31,2016). Furthermore, the average interest rate (Note 5) was reduced from 1.46% to 1.19% during the same period, demonstrating a
steady 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
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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

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 April 30, 2016 and October 31, 2016 are as follows:
End of Twenty-second
End of Twenty-third
Ratio as of the End
Fiscal Period
Fiscal Periodof Twenty-third
Lender(as of April 30, 2016) (as of October 31, 2016)
Fiscal Period(Millions of Yen)
(Millions of Yen)(%) (Note 6)
Sumitomo Mitsui Banking Corporation
44,300.045,300.0
Development Bank of Japan Inc.
28,050.0
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.
14,600.0
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.
6,200.0
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
165,800.0
168,800.0
Note 6: Percentages as of the end of the fiscal period under review are rounded to the first decimal place.

26.8%
17.5%
13.5%
11.3%
7.8%
6.1%
6.0%
4.9%
1.7%
1.5%
1.0%
0.6%
0.6%
0.5%
0.3%
100.0%(b) Status of Credit Rating
The status of the credit ratings as of October 31, 2016 is as follows:
Credit Rating Agency
Details of the Ratings
Long-Term Issuer Rating
A+ (Outlook: Positive)
Japan Credit Rating Agency, Ltd. (JCR)
Ratings on Bonds
A+
Preliminary Rating of Shelf Registration(c) Status of Shelf Registration
The Investment Corporation filed a shelf registration statement for investment corporation bonds on February 6, 2015.
Details are as follows.
Planned Issue Amount
Planned Issuance Period¥100,000,000,000
February 15, 2015 to February 14, 2017
Acquisition funds for specified assets, repayment of borrowings, repayment of
Use of Funds
investment corporation bonds, refund of lease and guarantee deposits, funds to pay forrepairs and maintenance, working capital, etc.
The Seventh Series Unsecured Investment Corporation Bonds of ¥1,000 million were issued based on the above shelfregistration on April 28, 2016.
D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥13,491
million, operating income of ¥5,788 million, ordinary income of ¥4,603 million and net income of ¥4,601 million for its twenty-third
fiscal period (fiscal period ended October 31, 2016).
Cash distributions are paid out to the application of Article 67-15 of the Special Taxation Measures Law (Law No. 26 of the year
1957, including amendments thereafter). Following this policy, the Investment Corporation has decided to distribute the entire
amount of unappropriated retained earnings excluding the portion where cash distribution per unit would be less than ¥1. Therefore,
the distributions per unit resulted in ¥11,365.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)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 interest rates and the inauguration of the new president in the U.S.,
possible slowdown in Chinese economy, the U.K’s withdrawal from the EU and such. Even in Japan as well, it will be necessary to
pay close attention to various events such as fluctuation in exchange rates and the impact of the “quantitative and qualitative
monetary easing involving control over long- and short-term interest rates” policy that accompanies negative interest rates.
Concerning the office building leasing market, the average vacancy rate in Tokyo’s five central wards at the end of October 2016
announced by Miki Shoji Co., Ltd. was 3.64%, down 0.82 point year-on-year. Down 0.59 point compared with the end of theprevious fiscal period (fiscal period ended April 30, 2016), improvement in the average vacancy rate continues. In addition, theaverage rent in Tokyo’s five central wards (including newly-built office buildings) has maintained an increasing trend.
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 stable growth of the portfolio, by securing continuous
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 the Investment
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, in order to seek diversifying acquisition methods (directacquisition, equity investment and co-acquisition with the sponsor company, mutual transaction with a view of asset reshuffle, etc.),with consideration to the timing or the consistency of the investment principles and to secure mobilizing acquisition of properties, theinvestment company invests in warehousing related TMK etc. with the sponsor company cooperation.
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
hand, the Investment Corporation will decide on the sale of office buildings and central urban retail properties individually byconsidering the current profitability, revenue projections that take into account future market trends, building age, area and property
size, among other factors, and also in light of the significance of the property’s presence in the portfolio.
(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-6-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

・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

Unknown

1%
1%

1%
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 ratios, 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 ratio 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 andoperating costs by continuously taking advantage of the portfolio size through cost reductions of building maintenance, reviews ofbuilding 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 is designated as a specified corporation pursuant to the Act on the Rational Use of Energy. The
Investment Corporation will research on energy saving and environmental friendliness of mid-sized office buildings, develop-7-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

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. Furthermore, the Investment Corporation will proactively participate in GRESB Survey andengage in efforts for various certification and rating systems such as DBJ Green Building Certification.
(c) Financial Strategy (Debt Financing)
As the environment for procuring interest-bearing debt remains favorable, the Investment Corporation continuously strives toimprove the terms and conditions of existing borrowings.
In addition, by taking the following measures, etc., the Investment Corporation aims for stable financial management.
・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 mega-banks, trust banks and Development Bank of Japan Inc., as well as aim for more conservative 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 on comparison 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/ ).
(3) Important Subsequent Events
Not applicable(Reference Information)(a) Sale of Property① The Investment Corporation sold the following real estate on December 1, 2016

Date of Sale

Property Name

Location

Buyer

Difference between
Sale Price andSale Price
Assumed Book
Assumed Book
(Millions of Yen)
Value
Value
(Note 1)
(Millions of Yen)
(Millions of Yen)
(Note 2)

December 1,
Minato-ku, Mori Building
BUREX Toranomon
2,440
1,734
2016
Tokyo
Co., Ltd.
(Note 1) Transfer costs, adjustment of property tax and city-planning tax, and consumption tax, etc. are excluded.
(Note 2) Figure is referential amount and different from gain or loss on sale.

706② The Investment Corporation concluded the following trust beneficiary interest transaction agreement regarding sale of trust
beneficiary interest in real estate on November 1, 2016 (Note 2).
Difference between
AnticipatedSale Price andSale Price
Assumed Book
Scheduled
Assumed Book
Property Name
Location
Buyer(Millions of Yen)
Value
Date of Sale
Value
(Note 1)
(Millions of Yen)
(Millions of Yen)
(Note 2)
(Note 3)
HEIWA REALKDX Nihonbashi
February 1,
Chuo-ku,
12,400
11,104
1,296
ESTATE2017
Tokyo
Kabutocho Building
CO., LTD.
(Note 1) Transfer costs, adjustment of property tax and city-planning tax, and consumption tax, etc. are excluded.
-8-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Note 2) The transaction agreement in the transaction fall under the category of forward commitment made by investment
corporations as stipulated in the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators,etc.” determined by the Financial Services Agency of Japan. In the event of a violation of the transaction agreement madeby the Investment Corporation or the Buyer, the penalty is stipulated to be an amount equivalent to 10% of the transaction
price (¥1,240 million) in the transaction agreement.
(Note 3) Figure is referential amount and different from gain or loss on sale.
(b) Acquisition of Property① The Investment Corporation acquired the following trust beneficiary interest in real estate (Note 2) on December 1, 2016.
Acquisition Price
Date of
Appraisal Value
Base Date for
Property Name
Location
Seller(Millions of Yen)
Acquisition(Millions of Yen)
Appraisal(Note 1)Mori
December 1,
Minato-ku,
October 31,
ARK Mori Building
4,169
4,310
Building Co.,
2016
Tokyo
2016
Ltd.
(Note 1) Transfer costs, adjustment of property tax and city-planning tax, and consumption tax, etc. are excluded.
(Note 2) Trust beneficiary interest in compartmentalized ownership for the 34th and 35th floors of ARK Mori Building (40% of
quasi co-ownership interest)② The Investment Corporation concluded the following trust beneficiary interest transaction agreement regarding acquisition oftrust beneficiary interest in real estate on November 1, 2016. (Note 2)
Anticipated
Scheduled
SellerAcquisition PriceAppraisal Value
Base Date forDate of
Property Name
Location(Note 3)
(Millions of Yen)
(Millions of Yen)
Appraisal
Acquisition(Note 1)
Kenedix
February 1,
Nishi-Shinbashi
Minato-ku,
October 31,
8,400
8,480
Development,
2017
TS Building
Tokyo
2016
Inc.
(Note 1) Transfer costs, adjustment of property tax and city-planning tax, and consumption tax, etc. are excluded.
(Note 2) The transaction agreement in the transaction fall under the category of forward commitment made by investment
corporations as stipulated in the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators,etc.” determined by the Financial Services Agency of Japan. In the event of a violation of the transaction agreement madeby the Investment Corporation or the Seller, the penalty is stipulated to be an amount equivalent to 10% of the transaction
price (¥840 million) in the transaction agreement.
(Note 3) The property to be acquired is owned by HEIWA REAL ESTATE CO., LTD. as of the date of this document and its
wholly owned subsidiary. In the transaction, Kenedix Development, Inc., a wholly owned subsidiary of Kenedix, Inc. thatis the brokerage firm will acquire the property to be acquired at first and then transfer it to the Investment Corporation on
the same date.
(4) Risk Factors
There are no significant changes to the “Investment Risks” as described in the Securities Report submitted July 28, 2016.
(5) Outlook
Forecasts for the twenty-fourth fiscal period (November 1, 2016 to April 30, 2017) are presented as follows.
Operating Revenues¥14,978 million

Operating Income¥5,809 million

Ordinary Income¥4,657 million

Net Income¥4,656 million

Distributions per Unit

¥11,500

For preconditions and assumptions of the outlook, please see following “Preconditions and Assumptions for the Twenty-fourth Fiscal
Period Ending April 30, 2017”.
Note: Forecast figures above are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income and distribution
per unit may differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does not guarantee payment of
the forecasted distribution per unit.

-9-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Preconditions and Assumptions for the Twenty-fourth Fiscal Period Ending April 30, 2017
Preconditions and Assumptions
Calculation Period The twenty-fourth fiscal period: November 1, 2016 to April 30, 2017 (181 days) The real estate and trust beneficiary interests in real estate held by the Investment Corporation are assumed on
the basis that the Investment Corporation held 99 properties as of October 31, 2016 and adds 2 properties (theacquisitions of ARK Mori Building on December 1, 2016 and Nishi-Shinbashi TS Building scheduled on
February 1, 2017), sells 2 properties (the sales of BUREX Toranomon on December 1, 2016 and KDX
Nihonbashi Kabutocho Building scheduled on February 1, 2017) and premises the additional sales of 3
Property Portfolio
properties (“the Additional Property Sales”). At this time, these additional sales of 3 properties are not decided,
but assumed to be done during the said 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-fourth 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 December 14, 2016 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 days due to movements in existing investment assets.
 Dividends received of ¥46 million have been assumed with regard to the TK equity stated in the above
Operating Revenues“Property Portfolio”.
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments from tenants.
 Gain on sales of real estate property is anticipated to amount to ¥1,660 million yen due to the sales of BUREX
Toranomon on December 1, 2016, KDX Nihonbashi Kabutocho Building scheduled on February 1, 2017 and
the Additional Property Sales, which are not decided at this time. The actual results may fluctuate due tochanges in success and failure of transactions, sale price, settlement date and other conditions.
 Expenses related to rent business other than depreciation are based on the historic expenses, adjusted to reflect
expense variables including seasonal factors.
 An amount of ¥1,316 million has been assumed for property and facility management fees (property
management and building maintenance fees, etc.).
 An amount of ¥1,122 million has been assumed for taxes and public dues (property tax and city-planning tax,etc.).
 An amount of ¥2,299 million has been assumed for depreciation expense.
 An amount of ¥426 million has been assumed for repairs, maintenance and renovation expenses.
Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by the Asset
Operating Expenses
Management 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.
 Loss on sales of real estate property is anticipated to amount to ¥1,659 million yen due to the Additional
Property Sales, which are not decided at this time. The actual results may fluctuate due to changes in successand failure of transactions, sale price, settlement date and other conditions.
 Interest payable (including financing related expenses etc.) of ¥1,061 million is assumed.
Non-Operating Expenses
 Amortization of investment unit issuance expenses of ¥34 million is assumed.
Extraordinary Profit/Loss  Extraordinary profit/loss is not assumed.
 The balance of the borrowings and the investment corporation bonds as of December 14, 2016 is ¥168,800
million and ¥9,300 million, respectively.
Borrowings and Of the borrowings as of December 14, 2016, a total of ¥6,200 million is due for repayment during the said
Investment Corporation
fiscal period. It is assumed that all the borrowings will be refinanced.
Bonds
 Of the investment corporation bonds as of December 14, 2016, a total of ¥3,000 million is due for repayment
during the said fiscal period. It is assumed that all the investment corporation bonds will be redeemed withfunds raised by an issue of investment corporation bonds and debt financing.
 Forecasts are based on the assumption that the number of investment units issued and outstanding as of
October 31, 2016 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 until the end of the said 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-second Fiscal Period

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

AssetsCurrent assets
Cash and deposits

11,235,762

11,268,439

Cash and deposits in trust

9,367,233

9,442,126

Accounts receivable-trade341,786

330,775

Prepaid expenses

41,985104,040

Consumption taxes receivable

53,578-Other

17,75811,362

21,058,104

21,156,743

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings

19,417,134

19,465,902

Accumulated depreciation(4,278,789)(4,599,804)

Buildings, net

15,138,344

14,866,097

Structures

37,63937,639

Accumulated depreciation(12,345)(13,384)

Structures, net

25,29424,254

Machinery and equipment

371,786

390,920

Accumulated depreciation(179,333)(190,056)

Machinery and equipment, net

192,452

200,864

Tools, furniture and fixtures

84,19185,371

Accumulated depreciation(47,061)(49,913)

Tools, furniture and fixtures, net

37,12935,457

Land

36,424,212

36,424,212

116,588,541

118,277,285

Accumulated depreciation(21,695,828)(23,556,115)

Buildings in trust, net

94,892,713

94,721,169

379,259

380,114

Accumulated depreciation(146,980)(158,140)

Structures in trust, net

232,279

221,974

Machinery and equipment in trust

1,670,106

1,700,363

Accumulated depreciation(715,244)(766,617)

Machinery and equipment in trust, net

954,862

933,746

429,890439,064

Accumulated depreciation(219,426)(234,952)

Tools, furniture and fixtures in trust, net

210,464

204,111

236,625,041

241,213,445

384,732,794

388,845,334

Leasehold right

285,350

285,350

Leasehold right in trust

67,10966,335

Other

5,716

5,125

358,176

356,810

1,089,760

1,093,584

Buildings in trust*2

Structures in trust

Tools, furniture and fixtures in trust

Land 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

1,283,195

1,352,177

5,513

3,561

2,511,359

2,582,214

Other
Total investments and other assets- 11 -

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

Total noncurrent assets

Twenty-second Fiscal Period

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

387,602,330

391,784,359

42,37736,498Investment unit issuance expenses

110,640

54,159Total deferred assets

153,018

90,657

408,813,454

413,031,761

Accounts payable

913,869

1,366,552

Short-term loans payable

2,500,000

1,500,000

Deferred assets
Investment corporation bond issuance costs

Total assets

Liabilities
Current Liabilities

Current portion of investment corporation bonds

3,000,000

4,500,000

Current portion of long-term loans payable

19,700,000

21,200,000

Accounts payable-other

257,024

248,036

Accrued expenses

90,45676,005

Income taxes payable

799

838

Accrued consumption taxes-

343,665

Advances received

2,115,824

2,143,523

Deposits received

54,160

2,896

-

2,274

28,632,136

31,383,793

6,300,000

4,800,000

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

143,600,000

146,100,000

Tenant leasehold and security deposits

1,938,465

2,185,141

Tenant leasehold and security deposits in trust

15,783,129

15,736,451

Other

4,328

977

167,625,923

168,822,570

196,258,059

200,206,363

206,199,945

206,199,945

Reserve for reduction entry

1,544,521

2,024,673

Total voluntary reserve

1, 544,521

2,024,673

4,815,255

4,601,756

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

Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders' equity

6,359,776

6,626,429

212,559,722

212,826,375(4,328)(977)

Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets*1

Total liabilities and net assets- 12 -(4,328)(977)

212,555,394

212,825,397

408,813,454

413,031,761

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(2) Statements of Income(Thousands of Yen）
Twenty-second Fiscal Period
November 1, 2015 toApril 30, 2016

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

Operating revenues
Rental revenues*1

11,048,079

11,362,345

Other rental revenues*1

1,763,949

2,067,427

Gain on sales of real estate property*2

1,510,168-

40,01561,73914,362,213

13,491,513

6,754,675

Dividends income
Total operating revenue
Operating expenses
Property related expenses*1

6,533,202

Loss on sales of real estate property, etc.

*2766,004-

759,989755,591

Asset management fee
Directors' compensation

8,400

8,400

Asset custody fee

22,17722,264

Administrative service fees

56,23555,879Audit fee

11,80011,800

Other operating expenses

102,32194,726

Total operating expenses

8,260,131

7,703,337

6,102,081

5,788,175

Operating income
Non-operating income
Interest income

697

38

Dividends and redemption-prescription

1,133

940

4

364

1,835

1,343

922,754864,908

Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

71,137

76,194

Borrowing related expenses

183,756

176,510

Amortization of investment corporation bond issuance costs

5,262

5,879

Amortization of investment unit issuance expenses

56,481

56,481

Other

48,005

6,426

1,287,398

1,186,399

Ordinary income

Total non-operating expenses

4,816,518

4,603,119

Income before income taxes

4,816,518

4,603,119

Income taxes-current

1,262

1,371

Income taxes-deferred

0

(7)

1,263

1,363

Net income

4,815,255

4,601,756

Unappropriated retained earnings (undisposed loss)

4,815,255

4,601,756

Total income taxes- 13 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(3) Statements of Unitholders’ Equity
Twenty-second fiscal period (November 1, 2015 to April 30, 2016)(Thousands of Yen)
Valuation and translation
adjustments

Unitholders' equity
Surplus
Unitholders'
capitalVoluntary reserve
Reserve for
reduction entry

Balance at the start of current
periodChanges of items during theperiodProvision of reserve for
reduction entry

206,199,945

Unappropriatedretained earnings
Total voluntary(undisposed loss)
reserve

1,150,494

4,564,342

5,714,837

211, 914,782

394,026

394,026(394,026)---(4,170,315)(4,170,315)(4,170,315)(4,170,315)

4,815,255

4,815,255

4,815,255

4,815,255

Net income--

Total net assets

1,150,494

Distribution from surplus

Items other than unitholders'equity, net
Total changes of items during
the period
Balance at the end of current
periodTotal surplus

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

211,914,782(4,328)(4,328)(4,328)-394,026

394,026

250,912644,939644,939(4,328)(4,328)640,611*206,199,945

1,544,521

1, 544,521

4,815,255

6,359,776

212,559,722(4,328)(4,328)

212,555,394

Twenty-third fiscal period (May 1, 2016 to October 31, 2016)(Thousands of Yen)
Valuation and translation
adjustments

Unitholders' equity
Surplus
Unitholders'
capitalVoluntary reserve
Reserve for
reduction entry

Balance at the start of current
periodChanges of items during theperiodProvision of reserve for
reduction entry

206,199,945

Unappropriatedretained earnings
Total voluntary(undisposed loss)
reserve

1,544,521

4,815,255

6,359,776

212,559,722

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

Net income(4,328)(4,328)

Total net assets

1,544,521

Distribution from surplus

Items other than unitholders'equity, net
Total changes of items during
the period
Balance at the end of current
periodTotal surplus

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

212,555,394

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- 14 -

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

Twenty-second Fiscal Period(November 1, 2015 to April 30, 2016)(May 1, 2016 to October 31, 2016)

Retained earnings at the end of period

4,815,255,316

4,601,756,256

Total Distribution(Distribution per Unit)
III. Voluntary retained earnings(Provision)
Provision for reserve for reduction
entry
IV. Retained Earnings brought forward to
the next period
Method of calculating the distribution
amount4,335,103,695(10,707)4,601,518,025(11,365)

480,151,621--

238,231

In accordance with the policy depicted 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 Law, andshall be up to the amount of its profits as the ceiling.
Following this policy, the Investment Corporation
has decided that, of the amount remaining after the
reserve for reduction entry as stipulated in Article 662 of the Special Taxation Measures Law is deductedfrom unappropriated retained earnings, it shall
distribute the maximum amount of retained earnings
at the period-end, namely totaling ¥4,335,103,695 to
404,885 units issued and outstanding.
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 depicted 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 Law, 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.

I.
II.

- 15 -

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

Twenty-second Fiscal Period

Twenty-third Fiscal Period

November 1, 2015 to April 30, 2016

May 1, 2016 to October 31, 2016

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

4,816,518

4,603,119Depreciation

2,230,944

2,275,342

Amortization of long-term prepaid expenses

178,006

170,760

Interest income

(697)

(38)

Interest expenses

993,892

941,102

Amortization of investment unit issuance expenses

56,481

56,481

Amortization of investment corporation bond issuance expenses

5,262

5,879

Decrease (increase) in accounts receivable-trade(3,499)11,011

Decrease (increase) in consumption taxes refund receivable(53,578)

53,578Decrease (increase) in prepaid expenses

47,233(62,054)

Increase (decrease) in accounts payable(188,896)

292,408

Increase (decrease) in accounts payable-other(14,635)(4,717)

Increase (decrease) in accrued consumption taxes(407,556)

343,665

Increase (decrease) in advances received

157,163

29,973

7,320

51,263

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

14,591,895-

Decrease (increase) in long-term prepaid expenses(177,437)(239,742)

(781)

1,111

22,237,636

8,426,615

Increase (decrease) in deposits received

Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

697

38

(989,130)(953,601)

(868)

(805)

21,248,334

7,472,246

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
Payments of tenant leasehold and security deposits(600,760)(75,799)(19,802,481)(6,097,777)(5,913)-(408,289)(80,696)317,786

323,548

Payments of tenant leasehold and security deposits in trust(1,087,808)(837,355)

Proceeds from tenant leasehold and security deposits in trust

1,533,423

741,835

Payments of restricted bank deposits in trust(600,261)--

552,921(20,654,305)(5,473,322)

Proceeds from short-term loans payable

1,500,000-

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

Proceeds from tenant leasehold and security deposits

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

Proceeds from long-term loans payable

18,300,000

16,500,000

Repayment of long-term loans payable(18,300,000)(12,500,000)

990,471--(4,010)

Dividends paid

(4,169,538)(4,334,422)

Net cash provided by (used in) financing activities(3,179,066)(1,338,432)

Net increase (decrease) in cash and cash equivalents(2,585,038)

660,491

Cash and cash equivalents at beginning of period

21,760,581

19,175,542

Cash and cash equivalents at end of period

19,175,542

19,836,034

Proceeds from issuance of investment corporation bondPayments of investment corporation bond issuance expenses- 16 -

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.
Leasehold rights: Fixed term 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 ¥83,801 thousand and for the fiscal period under review amounted to ¥13,334 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, the interest-rate swap and interest-rate cap agreements that meet the criteria 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. Leasehold rights 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 Investment Trusts and Investment Corporations Law(Thousands of Yen)
Twenty-second Fiscal Period(as of April 30, 2016)

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

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

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

26,230(Notes to the Statements of Income)*1. Breakdown of real estate rental business profit and loss

26,230(Thousands of Yen)
Twenty-second Fiscal Period

Twenty-third Fiscal Period

November 1, 2015 to April 30, 2016

May 1, 2016 to October 31, 2016

A. Rental and other operating revenues
Rental revenues
Leasing income

9,117,585

9,450,736

Common area charges

1,930,493

1,911,609

Subtotal

11,048,079

11,362,345

Other rental revenues
Parking space rental revenues

471,916

490,492

Utility charge reimbursement

990,851

1,136,867

Miscellaneous

301,181440,067

Subtotal

1,763,949

2,067,427

12,812,028

13,429,773

Property management fees and facility management fees

1,251,482

1,280,694

Utilities

1,071,934

1,110,302

Taxes

1,112,600

1,111,203

Repairs and maintenance costs

451,262

582,716

Insurance

17,49218,018

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

Trust fees

32,13032,348Others365,553

344,639

Depreciation

2,230,747

2,274,750

Total rental and other operating expenses

6,533,202

6,754,675

6,278,825

6,675,098

C. Rental operating profit (A – B)

- 19 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)*2. Gain and Loss on sale of real estate property
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016)(Thousands of Yen)
(1) Toranomon Toyo Building
Revenue from sale of the investment property

11,470,000

Costs of the investment property

9,899,061
60,770

Other sales expenses

1,510,168

Gain on sale of real estate property(Thousands of Yen)
(2) KDX Toranomon Building
Revenue from sale of the investment property

3,950,000

Costs of the investment property

4,692,834

Other sales expenses

23,170Loss on sale of real estate property

766,004

Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016)
Not applicable(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-second Fiscal Period
November 1, 2015 to April 30, 2016
Total number of authorized investment units
Total number of investment units issued andoutstanding

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

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-second Fiscal Period
November 1, 2015 to April 30, 2016

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

11,235,762

11,268,439

Cash and deposits in trust

9,367,233

9,442,126

Restricted bank deposits held in trust (Note)(1,427,453)(874,531)

Cash and cash equivalents

19,175,542

19,836,034

Cash and deposits

Note: Restricted bank deposits held in trust are retained for repayment of tenant leasehold and security deposits held in trust.
(Notes on the Lease Transactions)Operating lease transactions(Lessor)(Thousands of Yen)
Twenty-second Fiscal Period(as of April 30, 2016)

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

Unearned lease payments
Due within one year

1,486,303

1,444,094

Due after one year

9,544,085

9,350,987

Total

11,030,389

10,795,081(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.

- 20 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(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 and 6 months following the closing date. Although a certain portion of said liabilities are subject to interest rate
fluctuation risks, the Investment 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.
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-second Fiscal Period (as of April 30, 2016)(Thousands of Yen)
Book Value(1) Cash and deposits(2) Cash and deposits in trust
Total(1) Short-term loans payable(2) Investment corporation bonds(3) Long-term loans payable
Total
Derivative transaction

Fair Value

11,235,762
9,367,233
20,602,996
2,500,000
9,300,000
163,300,000
175,100,000(4,328)

11,235,762
9,367,233
20,602,996
2,500,000
9,486,050
165,889,327
177,875,377(4,328)

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

186,050
2,589,327
2,775,377(Thousands of Yen)

Book Value(1) Cash and deposits(2) Cash and deposits in trust
Total(1) Short-term loans payable(2) Investment corporation bonds(3) Long-term loans payable
Total
Derivative transaction

Difference

Fair Value

11,268,439
9,442,126
20,710,565
1,500,000
9,300,000
167,300,000
178,100,000(977)

Difference

11,268,439
9, 442,126
20,710,565
1,500,000
9,448,956
169,668,738
180,617,694(977)

148,956
2,368,738
2,517,694-

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.
- 21 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

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) Investment corporation bonds
The fair value of investment corporation bonds is based on market prices.
(3) 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”.
Note 2: Book value of financial instruments for which it is extremely difficult to determine the fair value(Thousands of Yen)
Twenty-third Fiscal Period(as of October 31, 2016)

Twenty-second Fiscal Period(as of April 30, 2016)

Classification
Investment securities *1,089,760

1,093,584*Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are not included in thepreceding table.
Note 3: Redemption schedule of monetary claims after the closing date
Twenty-second Fiscal Period (as of April 30, 2016)
Due within 1 yr.
Cash and deposits
Cash and deposits in trust
Total(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

11,235,762

-

-

-

-

-

9,367,233

-

-

-

-

-

20,602,996

-

-

-

-

-

Twenty-third Fiscal Period (as of October 31, 2016)
Due within 1 yr.
Cash and deposits
Cash and deposits in trust
Total

More than 5 yrs.

(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

11,268,439

-

-

-

-

-

9,442,126

-

-

-

-

-

20,710,565

-

-

-

-

-

Note 4: Redemption schedule of investment corporation bonds and repayment schedule of loans after the closing date
Twenty-second Fiscal Period (as of April 30, 2016)
Due within 1 yr.
Short-term loans payable(Thousands of Yen)
1-2 yrs.

2,500,000

2-3 yrs.
-

3-4 yrs.
-

4-5 yrs.
-

More than 5 yrs.
--

Investment corporation bonds

3,000,000

1,500,000

1,800,000--

3,000,000

Long-term loans payable

19,700,000

19,250,000

16,050,000

14,700,000

19,600,000

74,000,000

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

Twenty-third Fiscal Period (as of October 31, 2016)
Due within 1 yr.
Short-term loans payable

1,500,000(Thousands of Yen)---

More than 5 yrs.
--

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- 22 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on the Marketable Securities)
Twenty-second Fiscal Period (as of April 30, 2016) and Twenty-third Fiscal Period (as of October 31, 2016): Not applicable(Notes on the Derivative Transactions)(1) Items that do not apply hedge accounting
Twenty-second Fiscal Period (as of April 30, 2016) and Twenty-third Fiscal Period (as of October 31, 2016): Not applicable(2) Items that apply hedge accounting
Twenty-second Fiscal Period (as of April 30, 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

Twenty-third Fiscal Period (as of October 31, 2016)
Hedge accounting
Type of derivative transactions
methodPrinciple method

109,350,000

102,150,000＊-

Long-term loans
payable2,000,000

500,000

＊

-

Total

112,350,000

103,650,000(4,328)-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 from
1,000,000(4,328)1,000,000
counterparty financial
institutions.

(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
2,500,000(977)
counterparty financial
institutions.
103,350,000

99,650,000＊-

Long-term loans
payable500,000

500,000

＊

-

Total

106,350,000

102,650,000

(977)

-

＊ Special treatment of interest-rate swaps or the interest-rate caps is reported at the fair value of applicable long-term loans payable. This is because suchswaps or caps are handled together with hedged long-term loans payable.
(Notes on the Retirement Payment)
Twenty-second Fiscal Period (as of April 30, 2016) and Twenty-third Fiscal Period (as of October 31, 2016): Not applicable(Notes on the Asset Retirement Obligations)Twenty-second Fiscal Period (as of April 30, 2016) and Twenty-third Fiscal Period (as of October 31, 2016): 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-second Fiscal Period (November 1, 2015 to April 30, 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.

- 23 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)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-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.
(Notes on the Tax-Effect Accounting)
1. Significant components of deferred tax assets and liabilities(Thousands of Yen)
Twenty-second Fiscal Period(as of April 30, 2016)

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

Deferred tax assets
Enterprise tax payable not included in expenses

31

39

Deferred gains or losses on hedges

1,373

310

Amortization of leasehold rights in trust

2,662

2,908

4,067

3,257

(4,036)(3,218)31

39

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-second Fiscal Period(as of April 30, 2016)

Twenty-third Fiscal Period(as of October 31, 2016)
32.31

31.74

Deductible cash distributions(29.08)(31.73)

Provision of reserve for reduction entry(3.22)-

Others0.02

0.02

Effective tax rate after tax effect accounting

0.03

0.03

Statutory income tax rate
(Adjustments)(Notes on the Gains and Losses on Equity-method, etc.)
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016): Not applicable- 24 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on the Related-Party Transactions)
1. Parent Company, major corporate unitholders and other
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016): Not applicable
2. Affiliated companies and other
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016): Not applicable
3. Fellow subsidiary companies and other
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016): Not applicable
4. Directors, major individual unitholders and other
Twenty-second Fiscal Period (November 1, 2015 to April 30, 2016) and Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016): 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-second Fiscal Period
November 1, 2015 to April 30, 2016

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

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

381,466,640

385,085,254

3,618,614

4,111,765

385,085,254

389,197,020

402,555,000

414,605,000

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 fiscal period underreview of KDX Nihonbashi Kabutocho Building and BUREX Toranomon are calculated based on the anticipated sale price (¥12,400 million) in
the transaction 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-second fiscal period, principal increase/decrease
factors were the acquisition of real estate trust beneficiary interests in 2 properties totaling ¥19,321,018 thousand, the sale of real estate trust
beneficiary interests in 2 properties amounting ¥14,591,895 thousand and depreciation amounting in ¥2,230,747 thousand. For the fiscal period
under review, 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.
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-second Fiscal Period
November 1, 2015 to April 30, 2016
Net Assets per unit

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

¥524,977¥525,644

Net income per unit
¥11,892¥11,365
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-second Fiscal Period
November 1, 2015 to April 30, 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)(Important Subsequent Events)
Not applicable.

- 25 -

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

4,815,255

4,601,756--

4,815,255

4,601,756

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 9)
Increase
Balance(Decrease)

Remarks

July 20, 2011

Public offering

51,400284,950

13,600146,730(Note 1)

August 8, 2011

Third-party allotment

1,600

286,550

423

147,153(Note 2)

November 13, 2013

Public offering

43,800330,350

18,198165,351(Note 3)

December 10, 2013

Third-party allotment

2,190

332,540909

166,261(Note 4)

May 27, 2014

Public offering

21,400353,940

9,876

176,138(Note 5)June 24, 2014

Third-party allotment

1,070

355,010493

176,632(Note 6)

Public offering

47,685

402,695

28,269204,901(Note 7)

November 27, 2014

December 24, 2014
Third-party allotment
2,190
404,885
1,298
206,199(Note 8)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 ¥274,510 per unit with an issue price of ¥264,605 per unit.
Note 2: The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring
funds for the repayment of borrowings. The issue price was ¥264,605 per unit.
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 and repayment of borrowings. The offer price was ¥430,950 per unit with an issue price of ¥415,480 per unit.
Note 4: 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 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. The offer price was ¥478,725 per unit with an issue price of ¥461,540 per unit.
Note 6: 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 7: 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 8: 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 9: The amounts stated in ¥1 million unit are truncated at less than ¥1 million.
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
Not applicable- 26 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

5. Reference Information(1) Component of Assets
Twenty-second Fiscal Period(as of April 30, 2016)

Type of

Type

Specified Asset

Area

Tokyo
Real Estate

Office Buildings

Total Amount Held
(Millions of Yen)
(Note 1)

Metropolitan

Area
Other Regional Areas

Total for Office Buildings
Total for Real EstateTokyo
Office Buildings

Metropolitan

Area
Other Regional Areas

Total for Office Buildings
Residential Properties
Trust BeneficiaryInterest in Real EstateTokyo

Metropolitan

Area

Total for Residential Properties
Central Urban Retail
Properties

Tokyo

Metropolitan

Area

Total for Central Urban Retail Properties
Tokyo

OthersMetropolitan

Area

Total for Others
Total of Trust Beneficiary Interests in Real Estate

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

Ratio(%) (Note 2)

Total Amount Held
(Millions of Yen)
(Note 1)

Ratio(%) (Note 2)

39,1799.6

38,997

9.4

12,922

3.2

12,838

3.1

52,102

12.7

51,83612.6

52,102

12.7

51,836

12.6

243,79459.6

248,435

60.1

60,034

14.7

59,90314.5

303,82974.3

308,338

74.7

4,623

1.1

4,582

1.1

4,623

1.1

4,582

1.1

21,555

5.3

21,466

5.2

21,555

5.3

21, 466

5.2

2,973

0.7

2,973

0.7

2,973

0.7

2,973

0.7

332,98281.5

337,360

81.7

Investment Securities (Note 3)

1,089

0.3

1,093

0.3

Bank Deposits and Other Assets

22,638

5.5

22,741

5.5

Total Assets

408,813100.0

413,031100.0

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-second Fiscal Period(as of April 30, 2016)
AmountRatio(Millions of Yen)(%)
Total Liabilities

196,258

Total Net Assets
Total Assets

Twenty-third Fiscal Period(as of October 31, 2016)
AmountRatio(Millions of Yen)
(%)
48.0

200,206

48.5

212,555

52.0

212,82551.5

408,813100.0

413,031100.0(2) Details of Investment Assets① Major components of investment securities
Type of Assets
Silent Partnership
Equity Interest

Name
G.K. KRF43 Silent Partnership
Equity Interest (Note 3)

Number of
Units

Book Value(Millions of Yen)

Evaluation Value (Note 1)(Millions of Yen)

Ratio (%)
(Note 2)

1,093

1,093

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.

- 27 -

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-third 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

5,877

6,740

6,940

4.1

6,650

3.9

4.3

B

1.4

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,127

4,940

5,000

4.4

4,870

4.1

4.5

A

1.1

A-4

KDX Hatchobori Building

3,680

3,310

3,250

3,330

4.4

3,210

4.2

4.6

B

0.9

A-5

KDX Nakano-Sakaue Building

2,533

2,358

2,360

2,430

4.6

2,330

4.4

4.8

B

0.6

A-6

Harajuku F.F. Building

2,450

2,403

3,080

3,100

4.8

3,060

4.5

4.9

A

0.6

A-7

KDX Minami Aoyama Building

2,270

2,206

2,510

2,530

4.1

2,490

3.8

4.2

A

0.5

A-8

Kanda Kihara Building

1,950

1,796

1,620

1,680

4.4

1,600

4.2

4.6

B

0.4

A-13

KDX Kojimachi Building

5,950

5,565

4,820

4,870

3.9

4,770

3.6

4.0

A

1.4

A-14

KDX Funabashi Building

2,252

2,242

2,140

2,140

5.5

2,130

5.2

5.6

A

0.5

A-16

Toshin 24 Building

5,300

4,853

4,910

4,940

4.8

4,870

4.5

4.9

A

1.3

A-17

KDX Ebisu Building

4,640

4,433

4,800

4,810

4.2

4,780

3.8

4.3

A

1.1

A-19

KDX Hamamatsucho Building

3,460

3,083

3,370

3,480

4.0

3,320

3.8

4.2

B

0.8

A-20

KDX Kayabacho Building

2,780

2,736

2,570

2,590

4.5

2,540

4.1

4.6

A

0.6

A-21

KDX Shinbashi Building

3,728

3,765

4,530

4,570

3.9

4,490

3.6

4.0

A

0.9

A-22

KDX Shin-Yokohama Building

2,520

2,307

2,360

2,380

5.2

2,330

4.9

5.3

A

0.6

A-26

KDX Kiba Building

1,580

1,472

1,280

1,290

5.1

1,260

4.7

5.1

A

0.3

A-27

KDX Kajicho Building

2,350

2,282

2,240

2,300

4.4

2,210

4.2

4.6

B

0.5

A-29

KDX Higashi-Shinjuku Building

2,950

3,055

3,720

3,820

4.5

3,680

4.3

4.7

B

0.7

A-30

KDX Nishi-Gotanda Building

4,200

3,895

3,630

3,700

4.5

3,550

4.3

4.7

A

1.0

A-31

KDX Monzen-Nakacho Building

1,400

1,327

1,070

1,120

5.0

1,050

4.8

5.2

B

0.3

A-32

KDX Shiba-Daimon Building

6,090

6,036

4,740

4,780

4.4

4,690

4.1

4.5

A

1.5

A-33

KDX Okachimachi Building

2,000

2,052

1,930

1,980

4.5

1,910

4.4

4.7

B

0.5

A-34

KDX Hon-Atsugi Building

1,305

1,163

1,270

1,310

5.7

1,250

5.5

5.9

B

0.3

A-35

KDX Hachioji Building

1,155

1,212

1,080

1,070

5.4

1,090

5.2

5.6

B

0.2

A-37

KDX Ochanomizu Building

6,400

6,422

6,740

6,800

4.2

6,680

3.9

4.3

A

1.6

A-38

KDX Nishi-Shinjuku Building

1,500

1,531

1,280

1,290

4.6

1,270

4.3

4.7

A

0.3

A-41

KDX Shinjuku 286 Building

2,300

2,322

2,480

2,490

4.2

2,460

3.9

4.3

A

0.5

A-45

KDX Roppongi 228 Building

3,300

3,399

2,120

2,150

4.2

2,080

3.9

4.3

A

0.8

A-46

Hiei Kudan-Kita Building

7,600

7,495

7,960

8,190

4.1

7,860

3.9

4.3

B

1.9

A-47

KDX Shin-Yokohama 381 Building

5,800

5,494

4,310

4,330

5.3

4,280

5.0

5.4

A

1.4

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,584

3,080

3,080

5.2

3,080

4.6

5.2

A

0.9

A-50

KDX Ikejiri-Oohashi Building

2,400

2,367

1,730

1,740

5.0

1,720

4.7

5.1

A

0.6

A-51

KDX Hamacho Nakanohashi Building

2,310

2,246

1,930

1,940

4.6

1,910

4.3

4.7

A

0.5

A-52

KDX Kanda Misaki-cho Building

1,380

1,343

961

980

4.5

942

4.2

4.6

A

0.3

A-55

Shin-toshin Maruzen Building

2,110

2,096

1,670

1,680

4.6

1,660

4.2

4.8

A

0.5

A-56

KDX Jimbocho Building

2,760

2,875

2,100

2,120

4.5

2,080

4.1

4.6

A

0.6

A-57

KDX Gobancho Building

1,951

1,900

1,420

1,430

4.2

1,410

3.9

4.3

A

0.4

A-59

KDX Iwamoto-cho Building

1,864

1,687

1,510

1,520

4.7

1,500

4.4

4.8

A

0.4

A-60

KDX Harumi Building

10,250

9,034

8,470

8,560

4.3

8,380

3.9

4.3

A

2.5

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,246

2,080

2,140

4.0

2,050

3.8

4.2

B

0.5

A-62

Koishikawa TG Building

3,080

3,024

3,400

3,430

4.4

3,370

4.1

4.5

A

0.7

A-63

Gotanda TG Building

2,620

2,721

3,060

3,080

4.5

3,040

4.2

4.6

A

0.6

A-64

KDX Nihonbashi 216 Building

2,010

1,872

2,050

2,070

4.1

2,030

3.8

4.2

A

0.5

A-66

KDX Shinjuku Building

6,800

6,877

8,290

8,330

3.9

8,240

3.6

4.0

A

1.7

A-67

KDX Ginza 1chome Building

4,300

4,208

5,550

5,680

3.8

5,490

3.6

4.0

B

1.0

A-68

KDX Nihonbashi Honcho Building

4,000

3,942

4,540

4,670

4.2

4,480

4.0

4.4

B

1.0

- 28 -

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

Area

Tokyo
Metropolitan
Area

OfficeBuidings

Other
Regional
Areas

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-71

KDX Iidabashi Building

4,670

4,562

5,410

5,580

4.2

5,330

4.0

4.4

B

1.1

A-72

KDX Higashi-Shinagawa Building

4,590

4,764

4,300

4,430

4.4

4,250

4.2

4.6

B

1.1

A-73

KDX Hakozaki Building

2,710

2,741

3,200

3,260

4.6

3,170

4.4

4.8

B

0.6

A-74

KDX Shin-Nihonbashi Building

2,300

2,120

2,720

2,770

4.0

2,700

3.8

4.2

B

0.5

A-75

KDX Nihonbashi Kabutocho Building

11,27011,12812,40012,5004.2

12,300

3.8

4.2

A

2.8

A-78

KDX Tachikawa Ekimae Building

1,267

1,305

1,550

1,550

5.3

1,540

5.0

5.4

A

0.3

A-83

KDX Fuchu Building

6,120

5,949

7,560

7,690

5.0

7,510

4.8

5.2

B

1.5

A-84

KDX Kasuga Building

2,800

2,764

3,630

3,650

4.4

3,600

4.1

4.5

A

0.7

A-85

KDX Nakameguro Building

1,880

1,872

2,610

2,640

4.6

2,590

4.4

4.8

B

0.4

A-86

KDX Omiya Building

2,020

2,190

2,730

2,730

5.2

2,730

5.0

5.4

B

0.5

A-87

Itopia Nihonbashi SA Building

2,200

2,254

2,550

2,570

4.5

2,540

4.3

4.7

B

0.5

A-88

KDX Shinjuku 6-chome Building

1,900

1,888

2,870

2,930

4.4

2,850

4.2

4.6

B

0.4

A-89

KDX Takanawadai Building

5,250

5,293

6,060

6,110

4.4

6,010

4.1

4.5

A

1.3

A-90

KDX Ikebukuro Building

3,900

3,760

4,730

4,830

4.1

4,680

3.9

4.3

B

0.9

A-91

KDX Mita Building

3,180

3,154

3,390

3,420

4.3

3,360

4.0

4.4

A

0.7

A-92

KDX Akihabara Building

2,600

2,563

3,020

3,050

4.2

2,990

3.9

4.3

A

0.6

A-93

KDX Iidabashi Square

4,350

4,995

5,140

5,240

4.2

5,100

4.0

4.4

B

1.0

A-94

KDX Musashi-Kosugi Building

12,00011,535

14,60014,7004.4

14,400

4.1

4.5

A

3.0

A-95

KDX Toyosu Grand Square

8,666

8,334

9,040

9,280

4.8

8,930

4.6

5.0

B

2.1

A-96

KDX Takadanobaba Building

3,650

3,637

4,180

4,240

4.6

4,160

4.3

4.8

B

0.9

A-99

KDX Ikebukuro West Building

1,934

1,986

2,010

2,060

4.5

1,990

4.3

4.7

B

0.4

A-101 KDX Yokohama Building

7,210

7,581

8,100

8,400

4.6

7,970

4.4

4.8

B

1.8

A-102 KDX Yokohama Nishiguchi Building

2,750

2,746

3,030

3,090

4.7

3,010

4.5

4.9

B

0.6

A-103 KDX Shin-Yokohama 214 Building

2,200

2,218

2,350

2,370

5.1

2,330

4.8

5.2

A

0.5

A-105 BUREX Toranomon

1,750

1,738

2,440

2,460

3.8

2,410

3.5

3.9

A

0.4

A-107 KDX Ginza East Building

3,600

3,601

3,700

3,720

4.3

3,670

4.0

4.4

A

0.9

A-108 Pentel Building

3,350

3,554

3,714

3,817

4.1

3,662

3.9

4.3

B

0.8

A-109 KDX Hamamatsucho Center Building

3,950

4,040

4,140

4,340

4.0

4,060

3.8

4.2

B

0.9

A-112 Nittochi Toranomon Building

15,55015,666

16,60016,7003.6

16,400

3.3

3.7

A

3.9

KDX Shin-Nihonbashi Ekimae
A-113
Building

3,829

3,853

3,950

3,950

4.1

3,950

3.6

4.0

A

0.9

A-114 KDX Nihonbashi Edo-dori Building

1,350

1,364

1,420

1,430

4.5

1,410

4.1

4.5

A

0.3

A-12

Portus Center Building

5,570

4,145

4,710

4,750

5.8

4,690

5.6

6.0

B

1.3

A-42

KDX Karasuma Building

5,400

5,174

5,300

5,390

5.0

5,260

4.8

5.2

B

1.3

A-44

KDX Sendai Building

2,100

2,008

1,670

1,670

5.6

1,670

5.6

5.8

B

0.5

A-53

KDX Hakata-Minami Building

4,900

4,577

3,850

3,870

6.1

3,830

5.8

6.2

A

1.2

A-54

KDX Kitahama Building

2,220

2,093

1,610

1,610

5.5

1,600

5.0

5.6

A

0.5

A-58

KDX Nagoya Sakae Building

7,550

6,863

5,270

5,400

4.6

5,220

4.4

4.8

B

1.8

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,278

2,570

2,610

6.4

2,530

4.6

6.6

A

0.7

A-70

KDX Sapporo Building

2,005

1,957

2,190

2,260

5.2

2,160

5.0

5.4

B

0.5

A-79

KDX Nagoya Ekimae Building

7,327

7,972

9,000

9,080

4.4

8,920

4.1

4.5

A

1.8

A-82

KDX Higashi Umeda Building

2,770

2,572

3,550

3,620

4.5

3,520

4.3

4.7

B

0.6

A-97

KDX Utsunomiya Building

2,350

2,343

2,480

2,470

5.8

2,490

5.6

6.0

B

0.5

A-98

KDX Hiroshima Building

1,300

1,397

1,530

1,540

5.7

1,520

5.4

5.8

A

0.3

A-100 Senri Life Science Center Building

13,00012,813

12,90013,1004.8

12,800

4.6

5.0

B

3.2

A-104 KDX Minami-Honmachi Building

2,200

2,127

2,830

2,840

4.6

2,820

4.3

4.7

A

0.5

A-106 KDX Sakura-dori Building

5,900

6,253

7,490

7,590

4.8

7,440

4.6

5.0

B

1.4

A-110 KDX Shin-Osaka Building

4,550

4,598

4,870

5,060

4.3

4,790

4.1

4.5

B

1.1

- 29 -

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

Area

No.

OfficeBuildings

Other
Regional
Areas

Residential

Tokyo
Metropolitan
Area

Property Name

A-111 Nichigin-mae KD Building

Subtotal of Office Buildings (94 properties)
B-19

Residence Charmante Tsukishima

Subtotal of Residential Properties (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)

3,500

3,564

3,830

3,890

4.5

3,770

4.2

4.6

A

0.8

367,937

360,174

380,485

386,117-

376,774

-

-

-

92.3

5,353

4,582

4,900

4,930

4.5

4,860

4.2

4.6

A

1.3

5,353

4,582

4,900

4,930

-

4,860

-

-

-

1.3

10,70010,8003.8

10,600

3.5

3.9

A

2.4

C-1

Frame Jinnan-zaka

9,900

9,342

C-2

KDX Yoyogi Building

2,479

2,465

2,130

2,120

4.8

2,130

4.3

4.9

A

0.6

C-4

Ginza 4chome Tower

9,800

9,658

13,20013,400

3.4

13,000

3.1

3.5

A

2.4

22,17921,46626,03026,320-25,730

-

-

-

5.5

2,880

2,973

3,190

3,220

3.9

3,180

3.8

3.9

B

0.7

Subtotal of Others (1 property)

2,880

2,973

3,190

3,220

-

3,180

-

-

-

0.7

Total of 99 properties

398,350

389,197414,605

420,587-

410,544

-

-

-

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 6-chome 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 the twenty-third 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 transcribedfrom valuation 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 (99 properties).

- 30 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

B. Property Distribution
Distribution by Property TypesType

Number of
Properties

Acquisition Price(Millions of Yen)

Office Buildings

94

Residential Properties
Central Urban Retail Properties
Others
Total

Ratio (Note)(%)

367,937

92.3

1

5,353

1.3

3

22,179

5.5

1

2,880

0.7

99

398,350

100.0

Geographic Distribution
Area

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note)(%)

Tokyo Metropolitan Area

82

322,838

81.0

Other Regional Areas

17

75,512

18.9

99398,350

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

01,000 - 2,500
2,500 - 5,000

Ratio (Note)
(%)
-

-

37

72,19318.1

37130,160

32.6

5,000 - 7,500

1590,41022.6

7,500 - 10,000

543,51610.9

10,000 - 12,500

333,5208.4

12,500 – 15,000

1

13,0003.2

15,000 – 17,500

1

15,5503.9

99398,350

100.0

Total

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

- 31 -

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
Residential, Parking
Storage
Retail Shops, Offices
Parking
Offices, Retail Shops
Residential

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

April 1989

6.45

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-45

KDX Roppongi 228 Building

408.86

Offices, Retail Shops

2,235.30
11,425.31

SRC・S
B1F11

March 1988

4.33

SRC・RC
B1F10

March 1988

10.64

February 1985

4.71

September 1988

6.75

September 1988

3.71

October 1992

4.89

July 1990

5.99

May 1994

5.14

August 2000

5.05

March 2008

5.00

February 2008

7.12

April 1992

3.78

November 1989

6.61

April 1988

8.30

7,720.08

A-46

Hiei Kudan-Kita Building

1,844.83

Offices, Retail Shops
Office Room
Parking, Storage

A-47

KDX Shin-Yokohama 381 Building(Note 7)

1,229.24

Offices, Retail Shops
Parking, Garbage Room

10,290.30

A-48

KDX Kawasaki-Ekimae Hon-cho Building

1,968.13

Offices

7,420.87

A-50

KDX Ikejiri-Oohashi Building

834.79

Offices

3,482.96

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41

A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60
3,439.37

A-55

Shin-toshin Maruzen Building

457.64

Offices, Retail Shops
Parking

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11
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, Parking

5,862.02

A-63

Gotanda TG Building

582.90

Offices, Parking

4,440.61- 32 -

SRC
B1F7
RC
F5
SRC・RC
B1F9
SRC
B1F9

SRC
B1F9
RC
B2F9
SRC
F9
SRC
B1F7
SRC
B1F8
SRC
B1F8
S
F8
S
F9
S・SRC
B1F11
S・SRC
B1F8
SRC
B1F8
SRC
B1F9

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-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62

A-66

KDX Shinjuku Building

1,118.12

Offices, Retail Shops
Parking

10,348.02

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

4,724.62

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-75

KDX Nihonbashi Kabutocho Building

1,920.79

Offices, Parking

11,705.49

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
6,444.31
3,455.90

A-84

KDX Kasuga Building

1,319.24

Offices, Retail Shops
Parking

A-85

KDX Nakameguro Building

730.26

Offices

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

Offices, Retail Shops
Parking, Residential
Offices, Residential
Parking
Offices, Retail Shops,
Parking
OfficeOffices, Retail Shops
Parking
Offices, Retail Shops
Parking

5,055.50
7,362.25
5,907.00
9,265.03

A-90

KDX Ikebukuro Building

472.94

3,848.18

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

A-99

KDX Ikebukuro West Building

603.21

Offices, Retail Shops,
Parking

3,477.86

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

5,007.98

A-103

KDX Shin-Yokohama 214 Building

998.00

Offices, Retail Shops,
Parking

A-105

BUREX Toranomon

466.96

Offices

2,808.24

A-107

KDX Ginza East Building

1,216.99

Offices, Parking

6,413.60

Offices, Bank,
Residential

18,880.89

A-108

Pentel Building

2,502.63

A-109

KDX Hamamatsucho Center Building

835.83

Offices, Parking

3,981.69
11,212.05

A-112

Nittochi Toranomon 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-12

Portus Center Building

13,936.63

Offices, Retail Shops
Storage, Parking

79,827.08

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, Parking
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

804.50

Offices, Retail Shops
Parking

6,805.76- 33 -

13,238.16
4,652.96

Type of Structure(Note 4)
SRC
F9
S・RC
B4F11
SRC
F9
SRC
B1F9
SRC
B1F8
S・RC
B1F5
SRC
B1F10
S
B1F10
S・SRC
B1F8
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
S
F13
SRC
B1F9
S・SRC
B3F14
SRC
F7
S・SRC
B1F11
SRC
B1F10
SRC
F8
SRC・S
B2F25
SRC
B1F8
SRC
B1F10
SRC
B1F9
S
F10
S
F11
S・SRC
B1F12
SRC
B1F9
S・SRC
B2F15
S・SRC
B1F10

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

October 2006

7.86

May 1993

2.01

November 1991

6.80

January 1984

4.48

March 1990

4.49

January 1993

5.13

November 1993

4.42

November 2002

3.42

November 1998

4.89

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

July 2011

6.57

August 1991

5.95

November 1990

6.22

December 1985

4.21

October 2013

7.93

May 1992

7.05

March 1985

4.55

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

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

OfficeBuildings

Residential

CentralUrban
RetailProperties

Other

Other
Regional
Areas

No.

Property Name

Site Area(m2) (Note 1)

A-97

KDX Utsunomiya Building

1,412.00

Offices, Retail Shops
Parking

7,742.18

A-98

KDX Hiroshima Building

706.78 Offices, Parking Tower

5,718.83

Total Floor Area(m2) (Note 3)

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

Nichigin-mae KD Building

732.14

Offices

5,862.22---

Subtotal of Office Buildings (94 properties)
Tokyo
Metropolitan
B-19
Residence Charmante Tsukishima
Area
Subtotal of Residential Properties (1 property)
Tokyo
Metropolitan
Area

Usage
(Note 2)49,260.78
7,694.03
19,680.16
7,987.35

4,252.86

Residential Complex

18,115.39

-

-

-

SRC
B1F10

0.98
6.98
1.34
5.31
10.49
10.28
9.67
-

January 2004

5.38

Avg. 12.8yrs-

March 2005

6.80

August 1991

4.55

November 2008

5.23

Avg. 11.4yrs

-

-

-

-

-

-

-

- Avg. 21.8yrs (Note 8)

2.39

Retail Shops

6,302.58

C-2

KDX Yoyogi Building

228.74Retail Shops, Offices

1,269.06-

Retail Shops, Offices
Parking-

1,355.13-

688.52

S・SRC
February 1999
B1F10
SRC
January 1990
B1F10
SRC・S
June 1992
B3F21
S・RC
December 2009
B1F12
S
August 1992
B1F18
SRC
May 1992
B1F11
S
September 2006
B1F10
- Avg. 22.5yrs (Note 8)-

1,240.51

Ginza 4chome Tower

PML(%)(Note 6)-

Frame Jinnan-zaka

C-4Completion Date
(Note 5)

S・RC・SRC
B2F7
SRC
F8
S
B1F13
-

C-1

Subtotal of Central Urban Retail Properties (3 properties)
Tokyo
Metropolitan
D-2
Shinjuku 6-chome Building (Land)
Area
Subtotal of Others (1 property)
Total of 99 properties

Type of Structure(Note 4)

6,787.33

Note 1: Site area data is based on figures recorded in the land register (including relevant figures for leasehold land, if any). Data may not match with 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 October 31, 2016, 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 October 2016.
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 term leasehold interest with a special agreement to transfer building.

- 34 -

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-fourth fiscal period(November 1, 2016 to April 30, 2017) are as follows. Planned capital expenditure may include portions classified into expenses for accounting
purposes.

Property Name
(Location)

Planned Amount of Capital Expenditure(Millions of Yen)
Total
Paid in theAmountTotal
Fiscal Period
Previously
Under Review
Paid

PurposeSchedule

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

250

-

-

Renovation of elevator, other

As above

68--

Upgrade of exclusively-owned
area, other

As above64--

KDX Ikebukuro West Building(Toshima-ku, Tokyo)

Upgrade of common area, other

As above

62--

Nichigin-mae KD Building(Nagoya, Aichi)

Upgrade of exclusively-owned
area, other

As above

56--

Renovation of external wall, other

As above

55--

Renewal of air conditioning
system, other

As above49--

Upgrade of common area, other

As above

44--

Renovation of external wall, other

As above

42--

Pentel Building(Chuo-ku, Tokyo)

Renewal of air conditioning
system, other

As above40--

Itopia Nihonbashi SA Building(Chuo-ku, Tokyo)

Renovation of external wall, other

As above

37--

Renovation of external wall, other

As above36--

Upgrade of exclusively-owned
area, other

As above

26--

Senri Life Science Center Building(Toyonaka, Osaka)
KDX Takanawadai Building(Minato-ku, Tokyo)
KDX Nihonbashi 313 Building(Chuo-ku, Tokyo)

KDX Tachikawa Ekimae Building(Tachikawa, Tokyo)
Harajuku F.F. Building(Shibuya-ku, Tokyo)
KDX Shin-Yokohama 214 Building(Yokohama, Kanagawa)
KDX Minami Aoyama Building(Minato-ku, Tokyo)

KDX Hiroshima Building(Hiroshima, Hiroshima)
KDX Shin-Yokohama Building(Yokohama, Kanagawa)

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 October 31, 2016)
The Investment Corporation undertook the following major capital expenditures. In the fiscal period under review (fiscal period ended October 31,2016), the Investment Corporation completed works across its entire portfolio totaling ¥1,747 million. This total comprised of ¥1,165 million in capital
expenditures and ¥582 million for repairs, maintenance and renovation expenses.
Property Name
(Location)
KDX Yokohama Building(Yokohama, Kanagawa)
KDX Sakura-dori Building(Nagoya, Aichi)
Senri Life Science Center Building(Toyonaka, Osaka)
KDX Hamamatsucho Center Building( Minato-ku, Tokyo)
KDX Shin-Yokohama Building(Yokohama, Kanagawa)Harajuku F.F. Building(Shibuya-ku, Tokyo)
KDX Hiroshima Building(Hiroshima, Hiroshima)

PurposeTerm

Renewal of air conditioning system,
Upgrade of common area, other
Renewal of air conditioning system andmechanical car parking system, otherAmount of Capital Expenditures(Millions of Yen)

May 2016
to October 2016387

As above

266

Renovation of external wall, other

As above69

Renewal of air conditioning system, other

As above46

Upgrade of exclusively-owned area andcommon area, Renewal of mechanical car
parking system, other

As above

35

Renewal of air conditioning system, other

As above25

As above

25

Renewal of mechanical car parking system,
other
OthersPortfolio Total

308
1,165

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

- 35 -

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 and allocatesa 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

Nineteenth
Fiscal Period(May 1, 2014 to
October 31, 2014)

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)

Balance at the beginningof the period

493

495

465

-

-

Reserve for the period

12

8

-

-

-

Reversal of reserve forthe period

10

37

465

-

-

Balance brought forward
to the next period

495

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.

- 36 -

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
Leasable
LeasedNo. of
Ratio
Operating Revenues
Residential Residential Tenants(%)(Thousands of Yen)
Units
Units
(Note 5)(Note 6)(Note 7)(Note 3)(Note 4)

Leasehold andSecurity Deposits(Thousands of Yen)
(Note 8)A-1

KDX Nihonbashi 313 Building

5,889.32

5,572.57

-

-

11

94.6

183,644219,318

A-3

Higashi-Kayabacho Yuraku Building

4,379.66

4,379.66

-

-

7

100.0

139,555

217,047

A-4

KDX Hatchobori Building

3,323.14

3,323.14

-

-

4

100.0

108,136

109,468

A-5

KDX Nakano-Sakaue Building

4,386.18

4,157.31

18

15

22

94.8

77,55490,602

A-6

Harajuku F.F. Building

3,071.15

3,071.15

-

-

2

100.0

103,403

141,704

A-7

KDX Minami Aoyama Building

1,814.56

1,814.56

-

-

8

100.0

76,880107,806

A-8

Kanda Kihara Building

1,947.80

1,947.80

-

-

11

100.0

53,251

92,142

A-13

KDX Kojimachi Building

3,719.18

3,719.18

-

-

9

100.0

145,347

201,005

A-14

KDX Funabashi Building

3,859.85

3,859.85

-

-

20

100.0

106,873

137,086

A-16

Toshin 24 Building

6,621.19

6,621.19

-

-

22

100.0

183,638

244,225

A-17

KDX Ebisu Building

3,072.34

3,072.34

-

-

6

100.0

131,757

246,060

A-19

KDX Hamamatsucho Building

2,724.35

2,724.35

-

-

9

100.0

98,421

130,604

A-20

KDX Kayabacho Building

3,019.93

3,019.93

-

-

7

100.0

82,877101,101

A-21

KDX Shinbashi Building

2,803.79

2,803.79

-

-

8

100.0

119,034

175,050

A-22

KDX Shin-Yokohama Building

4,779.74

4,259.11

-

-

19

89.1

75,820110,823

A-26

KDX Kiba Building

2,455.44

2,162.54

-

-

5

88.1

25,72953,725

A-27

KDX Kajicho Building

2,564.79

2,564.79

-

-

10

100.0

74,041

88,135A-29

KDX Higashi-Shinjuku Building

5,914.28

5,914.28

-

-

7

100.0

137,746

121,031

A-30

KDX Nishi-Gotanda Building

3,882.75

2,904.47

-

-

9

74.8

62,553

127,439

A-31

KDX Monzen-Nakacho Building

2,008.74

2,008.74

-

-

7

100.0

44,244

46,740A-32

KDX Shiba-Daimon Building

5,997.36

5,997.36

-

-

9

100.0

156,641

206,767

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

2

100.0

67,918110,237

A-34

KDX Hon-Atsugi Building

2,747.66

2,657.93

-

-

11

96.7

51,472

71,247A-35

KDX Hachioji Building

2,163.36

1,849.55

-

-

9

85.5

43,99049,594A-37

KDX Ochanomizu Building

5,892.10

5,892.10

-

-

8

100.0

194,822

256,304

A-38

KDX Nishi-Shinjuku Building

1,593.59

1,593.59

-

-

9

100.0

46,87960,106A-41

KDX Shinjuku 286 Building

2,446.12

2,446.12

-

-

7

100.0

81,287

100,498

A-45

KDX Roppongi 228 Building

1,940.06

1,940.06

-

-

8

100.0

62,92085,781

A-46

Hiei Kudan-Kita Building

6,908.84

6,908.84

-

-

14

100.0

251,969

322,951

A-47

KDX Shin-Yokohama 381 Building

8,125.73

8,125.73

-

-

41

100.0

162,276

239,800

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

5,126.69

5,126.69

-

-

1

100.0

104,636

155,562

A-50

KDX Ikejiri-Oohashi Building

2,458.64

2,458.64

-

-

8

100.0

70,07996,301A-51

KDX Hamacho Nakanohashi
Building

2,238.01

2,238.01

-

-

9

100.0

66,59990,088A-52

KDX Kanda Misaki-cho Building

1,315.96

1,315.96

-

-

8

100.0

28,46740,408

A-55

Shin-toshin Maruzen Building

1,912.28

1,912.28

-

-

5

100.0

58,51874,077A-56

KDX Jimbocho Building

2,321.80

2,321.80

-

-

3

100.0

65,92296,451A-57

KDX Gobancho Building

1,649.02

1,649.02

-

-

7

100.0

45,535

55,116A-59

KDX Iwamoto-cho Building

1,529.91

1,529.91

3

3

10

100.0

45,26461,722

A-60

KDX Harumi Building

9,294.00

8,657.86

-

-

9

93.2

204,904

300,030

A-61

KDX Hamamatsucho Dai-2 Building

1,954.23

1,954.23

-

-

8

100.0

62,29098,026

A-62

Koishikawa TG Building

3,945.54

3,945.54

-

-

5

100.0

129,203

156,831

A-63

Gotanda TG Building

3,158.67

3,158.67

-

-

10

100.0

96,395

131,339

A-64

KDX Nihonbashi 216 Building

1,615.20

1,615.20

-

-

8

100.0

60,536

96,961A-66

KDX Shinjuku Building

5,836.68

5,836.68

-

-

20

100.0

257,277

320,514A-67

KDX Ginza 1chome Building

3,573.59

3,507.89

-

-

3

98.2

138,350

186,478

A-68

KDX Nihonbashi Honcho Building

3,998.39

3,998.39

-

-

8

100.0

136,276

212,991

A-71

KDX Iidabashi Building

4,429.25

4,429.25

-

-

5

100.0

157,674

230,280

A-72

KDX Higashi-Shinagawa Building

7,117.97

7,117.97

-

-

5

100.0

123,343

221,226

A-73

KDX Hakozaki Building

3,992.60

3,992.60

-

-

8

100.0

111,736

156,454

A-74

KDX Shin-Nihonbashi Building

2,658.79

2,658.79

-

-

8

100.0

84,756

126,985- 37 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Residential

Tokyo
Metropolitan
Area

No. ofNo. ofOccupancy Rental and Other
Leasable
LeasedNo. of
Ratio
Operating Revenues
Residential Residential Tenants(%)(Thousands of Yen)
Units
Units
(Note 5)(Note 6)(Note 7)(Note 3)(Note 4)

Leasehold andSecurity Deposits(Thousands of Yen)
(Note 8)KDX Nihonbashi Kabutocho
Building

7,562.93

7,562.93

-

-

7

100.0

281,241

330,311

A-78

KDX Tachikawa Ekimae Building

1,612.13

1,612.13

-

-

5

100.0

64,36586,432A-83

KDX Fuchu Building

10,151.48

8,653.17

-

-

36

85.2

289,216

313,635

A-84

KDX Kasuga Building

4,345.13

4,345.13

-

-

15

100.0

126,705

150,429

A-85

KDX Nakameguro Building

2,726.69

2,726.69

-

-

5

100.0

72,944

128,510A-86

KDX Omiya Building

3,814.00

3,814.00

1

1

18

100.0

118,993

184,758

A-87

Itopia Nihonbashi SA Building

3,106.42

3,012.86

8

6

12

97.0

99,766

120,102

A-88

KDX Shinjuku 6-chome Building

4,037.44

4,037.44

-

-

7

100.0

106,20787,464A-89

KDX Takanawadai Building

6,951.88

6,537.12

-

-

7

94.0

209,306

246,355

A-90

KDX Ikebukuro Building

3,110.65

2,808.51

-

-

9

90.3

131,179

183,703

A-91

KDX Mita Building

3,331.61

3,331.61

-

-

12

100.0

104,462

154,485

A-92

KDX Akihabara Building

2,289.27

2,289.27

-

-

6

100.0

82,053

97,151A-93

KDX Iidabashi Square

4,571.92

4,280.71

-

-

6

93.6

35,762

281,039

A-94

KDX Musashi-Kosugi Building

12,978.52

12,978.52

-

-

9

100.0

438,606

661,244

A-95

KDX Toyosu Grand Square

11,797.85

11,557.40

-

-

15

98.0

282,879

463,958

A-96

KDX Takadanobaba Building

4,585.47

4,269.37

-

-

10

93.1

133,545

157,519

A-99

KDX Ikebukuro West Building

2,553.06

2,553.06

-

-

6

100.0

72,764

57,774

A-101 KDX Yokohama Building

10,932.12

10,389.58

-

-

25

95.0

274,108

319,995

A-102 KDX Yokohama Nishiguchi Building

4,981.07

4,981.07

-

-

14

100.0

114,413160,487

A-103 KDX Shin-Yokohama 214 Building

4,615.14

4,412.63

-

-

16

95.6

75,703

124,910

A-105 BUREX Toranomon

1,900.93

1,900.93

-

-

1

100.0

49,99624,998

A-107 KDX Ginza East Building

4,458.02

4,458.02

-

-

12

100.0

123,862

100,483

A-108 Pentel Building

4,346.66

4,346.66

5

5

10

100.0

119,906

159,434

A-109 KDX Hamamatsucho Center Building

3,052.64

3,052.64

-

-

8

100.0

104,906

126,586

A-112 Nittochi Toranomon Building

8,179.00

8,179.00

-

-

4

100.0

385,395

664,950

KDX Shin-Nihonbashi Ekimae
A-113
Building

3,287.64

2,209.92

-

-

8

67.2

29,155

101,308

A-114 KDX Nihonbashi Edo-dori Building

73.7

13,822

28,1601,516.15

1,117.79

-

-

6

A-12

Portus Center Building

11,582.43

11,197.97

-

-

29

96.7

294,790

365,023

A-42

KDX Karasuma Building

8,743.96

8,743.96

-

-

39

100.0

215,507275,186

A-44

KDX Sendai Building

3,962.37

3,962.37

-

-

34

100.0

93,410176,274

A-53

KDX Hakata-Minami Building

9,813.85

9,579.31

-

-

50

97.6

174,149

239,984

A-54

KDX Kitahama Building

3,995.50

3,569.96

-

-

10

89.3

75,197

85,235A-58

KDX Nagoya Sakae Building

6,923.12

6,688.59

-

-

15

96.6

183,700

221,552

A-69

KDX Kobayashi-Doshomachi
Building

7,072.23

7,072.23

-

-

12

100.0

191,532

250,552

A-70

KDX Sapporo Building

3,788.51

3,788.51

-

-

21

100.0

92,645122,080

A-79

KDX Nagoya Ekimae Building

7,902.96

7,902.96

-

-

19

100.0

284,113514,057

A-82

KDX Higashi Umeda Building

4,986.24

4,986.24

-

-

7

100.0

138,039

110,979

A-97

KDX Utsunomiya Building

5,328.77

5,328.77

-

-

24

100.0

128,337

149,065

A-98

KDX Hiroshima Building

3,982.43

3,602.47

-

-

20

90.5

68,738100,354

A-100 Senri Life Science Center Building

17,209.90

14,332.26

-

-

57

83.3

830,748869,212

A-104 KDX Minami-Honmachi Building

5,285.95

4,891.88

-

-

22

92.5

109,296

138,219

A-106 KDX Sakura-dori Building

12,335.57

12,222.11

-

-

32

99.1

334,550445,626

A-110 KDX Shin-Osaka Building

5,977.39

5,977.39

-

-

17

100.0

145,680

146,895

A-111 Nichigin-mae KD Building

4,360.90

4,019.23

-

-

13

92.2

103,672

130,326

442,020.66

427,814.32

35

30

1,179

96.8

12,603,843

17,029,082

7,711.14

7,711.14

140

140

1
(Note 9)100.0

146,746

45,721

7,711.14

7,711.14

140

140

1

100.0

146,746

45,721

B-19

Residence Charmante Tsukishima

Subtotal of Residential Properties (1 property)
CentralUrban Retail
Properties

Total Leased
Floor Area(m2)
(Note 2)

A-75

Subtotal of Office Buildings (94 properties)
Tokyo
Metropolitan
Area

Total Leasable
Floor Area(m2)
(Note 1)

C-1

Frame Jinnan-zaka

4,646.51

4,646.51

-

-

13

100.0

261,285

338,063

C-2

KDX Yoyogi Building

1,176.25

1,176.25

-

-

11

100.0

69,627

105,833

C-4

Ginza 4chome Tower

5,624.23

5,624.23

-

-

4

100.0

280,141

346,121- 38 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

No.

Total Leasable
Floor Area(m2)
(Note 1)

Property Name

Subtotal of Central Urban Retail Properties (3 properties)
OthersTokyo
Metropolitan
Area

D-2

No. ofNo. ofOccupancy Rental and Other
Leasable
LeasedNo. of
Ratio
Operating Revenues
Residential Residential Tenants(%)(Thousands of Yen)
Units
Units
(Note 5)(Note 6)(Note 7)(Note 3)(Note 4)

Leasehold andSecurity Deposits(Thousands of Yen)
(Note 8)

11,446.99

11,446.99

-

-

28

100.0

611,055

790,018

1,355.13

1,355.13

-

-

1

100.0

68,12856,7701,355.13

1,355.13

-

-

1

100.0

68,12856,7701,209170(Note 10)96.9

13,429,773

17,921,592

Shinjuku 6-Chome Building (Land)

Subtotal of Others (1 property)
Total of 99 properties

Total Leased
Floor Area(m2)
(Note 2)

462,533.92

448,327.58

175

Occupancy Ratio over the Past Five Years
April 30, 2012

95.4%

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%

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 6-chome 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. However, for Residence Charmante Tsukishima, please refer
to Note 9.
Note 6: Occupancy ratio 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.
Note 8: Leasehold and security deposits refers 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: Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-term lease: until January 31, 2019) fixed-term building
lease contract (term of contract: to January 30, 2029) with Sekiwa Real Estate, Ltd., a master lessor, the total number of tenants is indicated as 1.
Note 10: 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-third fiscal period (fiscal period ended October 31, 2016).
(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 October 31, 2016)
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.

Nittochi Toranomon Building

4,719.91

1.1%

5 JASTEC Co., Ltd.

KDX Takanawadai Building

4,312.83

1.0%

Subtotal

26,727.32

6.0%

Total Portfolio

448,327.58

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 due to the tenants’ request.
- 39 -

a0011

a0031

a0041

a0051

a0061

a0071

a0081

a0131

a0141

a0161

【Reference】

Earnings Performance for the Individual Properties for the 23rd Fiscal Period (May 1, 2016 to October 31, 2016)：184 days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A001

Property NameKDX Nihonbashi
313 Building

Acquisition Date

A003

A004

A005

HigashiKDX Hatchobori KDX NakanoKayabacho
Building
Sakaue Building
Yuraku Building

a0171

a0201

a0211

Price Information

A006

A007

A008

A013

A014

A016

A017

A019

A020

A021

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

May 1, 2006

May 1, 2006

May 1, 2006

May 1, 2006

4,640

3,460

2,780

3,728

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
5,940
4,450
3,680
2,533
2,450
2,270
1,950
5,950
2,252
5,300

Acquisition price (\ Millions)a0191※As of October 31, 2016

Percentage of total portfolio

1.5%

1.1%

0.9%

0.6%

0.6%

0.6%

0.5%

1.5%

0.6%

1.3%

1.2%

0.9%

0.7%

0.9%

Net book value (\ Millions)

5,877

4,127

3,310

2,358

2,403

2,206

1,796

5,565

2,242

4,853

4,433

3,083

2,736

3,765

Appraisal value at the end of period (\ Millions)

6,740

4,940

3,250

2,360

3,080

2,510

1,620

4,820

2,140

4,910

4,800

3,370

2,570

4,530

Percentage of total appraisal value

1.6%

1.2%

0.8%

0.6%

0.7%

0.6%

0.4%

1.2%

0.5%

1.2%

1.2%

0.8%

0.6%

1.1%

11

7

4

22

2

8

11

9

20

22

6

9

7

8

Leasable floor area (㎡)5,889.32

4,379.66

3,323.14

4,386.18

3,071.15

1,814.56

1,947.80

3,719.18

3,859.85

6,621.19

3,072.34

2,724.35

3,019.93

2,803.79

Leased floor area（㎡)5,572.57

4,379.66

3,323.14

4,157.31

3,071.15

1,814.56

1,947.80

3,719.18

3,859.85

6,621.19

3,072.34

2,724.35

3,019.93

2,803.79

As of October 31, 2016

94.6%

100.0%

100.0%

94.8%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

As of April 30, 2016

100.0%

100.0%

100.0%

91.7%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

83.4%

100.0%

100.0%

100.0%

As of October 31, 2015

100.0%

100.0%

100.0%

94.8%

100.0%

100.0%

100.0%

100.0%

95.6%

100.0%

100.0%

100.0%

100.0%

100.0%

As of April 30, 2015

100.0%

100.0%

93.1%

96.5%

100.0%

100.0%

88.2%

100.0%

99.8%

97.4%

100.0%

100.0%

84.9%

100.0%

As of October 31, 2014

100.0%

100.0%

100.0%

95.2%

100.0%

100.0%

76.2%

100.0%

96.5%

94.1%

100.0%

100.0%

84.9%

100.0%

As of April 30, 2014

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

88.0%

100.0%

100.0%

94.4%

100.0%

100.0%

84.9%

86.8%

As of October 31, 2013100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

76.2%

100.0%

100.0%

91.1%

83.4%

100.0%

100.0%

100.0%

As of April 30, 2013

99.7%

89.1%

100.0%

100.0%

100.0%

100.0%

86.5%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

As of October 31, 2012

100.0%

89.1%

100.0%

100.0%

100.0%

88.4%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

As of April 30, 2012

94.6%

100.0%

100.0%

98.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

99.5%

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

Number of tenants

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 23rd Fiscal Period

183,644

139,555

108,136

77,554103,40376,88053,251

145,347

106,873

183,638

131,757

98,421

82,877

119,034

Rental revenues

166,234

127,502

92,15763,751

96,08068,36547,988118,411

92,370148,736

114,263

89,19073,976110,679

Other operating revenues

17,40912,052

15,97813,802

7,323

8,515

5,263

26,935

14,502

34,902

17,493

9,230

8,900

8,355

55,53034,06339,083

46,62428,027

17,844

18,356

51,97436,56358,71435,88828,777

21,59535,584

Property management fees

15,207

12,317

10,640

8,367

6,531

5,293

4,986

9,599

13,11914,602

9,321

7,182

7,030

8,822

Taxes

20,754

9,022

8,668

7,615

8,082

5,726

4,059

17,144

7,284

12,314

11,108

9,027

6,383

15,870Utilities

13,013

9,539

7,536

7,286

5,261

4,620

4,245

10,4808,447

18,744

9,230

5,673

6,461

5,881

Repairs and maintenance costs

4,165

1,467

9,573

19,559

6,037

1,042

4,439

2,659

6,513

11,845

3,025

2,621

660

1,098

224

153

135

169

103

56

59

154

155

240

124

94

99

110

Trust fees and other expenses

2,164

1,561

2,530

3,626

2,012

1,106

567

11,937

1,043

967

3,078

4,178

960

3,802

③NOI （＝①-②） (\ Thousands)

128,113

105,492

69,05230,92975,37659,03634,894

93,37270,310124,923

95,86869,643

61,282

83,450④Depreciation (\ Thousands)

28,004

27,10019,007

16,005

10,063

6,636

8,342

19,867

19,56636,645

19,56810,431

17,368

10,423⑤Rental operating income （＝③-④） (\ Thousands)

100,108

78,39250,045

14,92465,312

52,39926,55173,50450,74388,27876,29959,211

43,91373,026

420

1,302

556

797

25,371

1,550

-

-

740

12,606

3,550

3,196

1,837

3,733

127,693

104,190

68,49630,13150,00457,48634,894

93,372

69,570112,317

92,31866,44659,44479,716②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)⑦NCF （＝③-⑥） (\ Thousands)

Reference

Expense ratio （＝②／①）

30.2%

24.4%

36.1%

60.1%

27.1%

23.2%

34.5%

35.8%

34.2%

32.0%

27.2%

29.2%

26.1%

29.9%

Property tax for the year 2016 (\ Thousands)

41,50918,045

17,335

15,22916,164

11,436

8,118

34,287

14,56924,62822,216

18,055

12,766

31,739Property management fee (Leasing management fees) of ② (\ Thousands)

6,362

5,000

3,616

2,213

3,648

2,773

1,798

4,871

3,616

6,297

4,645

3,429

2,942

4,132

Reference： Percentage of rental and other operating revenues

3.5%

3.6%

3.3%

2.9%

3.5%

3.6%

3.4%

3.4%

3.4%

3.4%

3.5%

3.5%

3.5%

3.5%

318,440

159,300

141,890

164,530

204,340

97,67079,020161,000

180,238

309,328

232,159

163,222

198,294

133,340

26,536

13,275

11,824

13,71017,028

8,139

6,585

13,41615,01925,777

19,346

13,601

16,524

11,111Long-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.

- 40 -

【Reference】

a0221
a0261
a0271
a0291
a0301
a0311
a0321
a0331
a0341
a0351
a0371
a0381
Earnings Performance for the Individual Properties for the 23rd Fiscal Period (May 1, 2016 to October 31, 2016)：184 days
※As of October 31, 2016

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

A029

A030

A031

A032

Acquisition Date

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

a0411

a0451

A033

A034

A035

A037

A038

A041

A045

KDX
Okachimachi
Building

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX
Ochanomizu
Building

KDX NishiShinjuku Building

KDX Shinjuku
286 Building

KDX Roppongi
228 Building

June 1, 2007 January 10, 2008

Price Information

May 1, 2006

June 20, 2006

July 3, 2006

April 2, 2007

April 2, 2007

Acquisition price (\ Millions)

2,520

1,580

2,350

2,950

4,200

1,400

6,090

2,000

1,305

1,155

6,400

1,500

2,300

Percentage of total portfolio

0.6%

0.4%

0.6%

0.7%

1.1%

0.4%

1.5%

0.5%

0.3%

0.3%

1.6%

0.4%

0.6%

0.8%

Net book value (\ Millions)

2,307

1,472

2,282

3,055

3,895

1,327

6,036

2,052

1,163

1,212

6,422

1,531

2,322

3,399

Appraisal value at the end of period (\ Millions)

2,360

1,280

2,240

3,720

3,630

1,070

4,740

1,930

1,270

1,080

6,740

1,280

2,480

2,120

Percentage of total appraisal value

0.6%

0.3%

0.5%

0.9%

0.9%

0.3%

1.1%

0.5%

0.3%

0.3%

1.6%

0.3%

0.6%

0.5%

19

5

10

7

9

7

9

2

11

9

8

9

7

8

Leasable floor area (㎡)4,779.74

2,455.44

2,564.79

5,914.28

3,882.75

2,008.74

5,997.36

1,792.54

2,747.66

2,163.36

5,892.10

1,593.59

2,446.12

1,940.06

Leased floor area（㎡)4,259.11

2,162.54

2,564.79

5,914.28

2,904.47

2,008.74

5,997.36

1,792.54

2,657.93

1,849.55

5,892.10

1,593.59

2,446.12

1,940.06

As of October 31, 2016

89.1%

88.1%

100.0%

100.0%

74.8%

100.0%

100.0%

100.0%

96.7%

85.5%

100.0%

100.0%

100.0%

100.0%

As of April 30, 2016

78.7%

88.1%

100.0%

100.0%

47.4%

100.0%

100.0%

100.0%

96.7%

85.5%

96.4%

100.0%

100.0%

100.0%

As of October 31, 2015

83.3%

76.1%

93.5%

87.3%

100.0%

84.3%

100.0%

100.0%

96.7%

72.7%

96.4%

100.0%

100.0%

100.0%

As of April 30, 2015

87.2%

76.1%

97.5%

87.3%

100.0%

100.0%

100.0%

100.0%

94.3%

72.7%

100.0%

100.0%

100.0%

87.4%

As of October 31, 2014

97.5%

88.1%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

72.7%

100.0%

77.8%

100.0%

87.4%

As of April 30, 2014

94.1%

88.1%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

73.8%

As of October 31, 2013

92.9%

100.0%

100.0%

100.0%

100.0%

100.0%

92.9%

100.0%

89.0%

100.0%

100.0%

100.0%

100.0%

63.1%

As of April 30, 2013

92.9%

100.0%

100.0%

100.0%

100.0%

100.0%

79.1%

100.0%

95.7%

100.0%

100.0%

100.0%

100.0%

54.4%

As of October 31, 2012

95.4%

100.0%

100.0%

100.0%

100.0%

100.0%

82.8%

100.0%

86.0%

100.0%

90.1%

100.0%

100.0%

54.4%

As of April 30, 2012

97.9%

100.0%

100.0%

99.7%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

88.6%

100.0%

65.1%

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

Number of tenants

3,300

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 23rd Fiscal Period

75,82025,72974,041

137,746

62,55344,244

156,641

67,91851,472

43,990

194,82246,87981,28762,920Rental revenues

64,707

20,14064,096

119,124

47,60335,613

142,41758,61344,37635,818

178,727

41,052

68,63855,153

Other operating revenues

11,112

5,588

9,944

18,621

14,9498,631

14,224

9,305

7,096

8,172

16,094

5,826

12,6497,766

36,077

15,79823,693

46,636

41,533

14,95542,96815,33017,913

16,34943,946

19,23325,716

20,117

Property management fees

7,791

3,914

6,687

13,053

6,720

4,137

13,655

5,733

6,162

4,535

12,140

4,469

7,027

5,525

Taxes

6,373

4,721

5,357

13,601

9,041

3,112

11,477

2,885

3,629

4,063

14,994

4,317

8,215

7,284

Utilities

7,752

3,448

5,289

13,201

7,137

5,306

12,974

4,584

4,497

4,216

12,456

3,627

6,676

6,107

Repairs and maintenance costs

10,032

3,146

5,177

5,069

5,536

2,078

3,220

474

2,678

2,844

2,311

5,395

2,893

852

152

72

81

210

130

68

174

47

95

65

198

53

92

56

Trust fees and other expenses

3,975

494

1,099

1,499

12,967

251

1,467

1,604

849

624

1,844

1,370

810

292

③NOI （＝①-②） (\ Thousands)

39,742

9,930

50,348

91,11021,01929,289113,672

52,58833,55927,641150,875

27,64555,57142,802④Depreciation (\ Thousands)

22,531

11,904

12,64820,502

29,242

9,495

30,852

8,153

13,438

10,691

27,988

6,911

9,431

5,467

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

17,211△1,97337,69970,607△8,222

19,79382,81944,434

20,12016,950122,887

20,734

46,13937,334⑥Capital expenditures (\ Thousands)

35,705

9,084

520

2,625

10,9392,310

17,639

-

-

-

-

350

1,890

1,249

⑦NCF （＝③-⑥） (\ Thousands)

4,037

846

49,82888,485

10,08026,97996,03352,58833,55927,641150,875

27,29553,681

41,552

Expense ratio （＝②／①）

47.6%

61.4%

32.0%

33.9%

66.4%

33.8%

27.4%

22.6%

34.8%

37.2%

22.6%

41.0%

31.6%

32.0%

Property tax for the year 2016 (\ Thousands)

12,747

9,443

10,714

27,177

18,078

6,222

22,952

5,749

7,259

8,126

29,971

8,633

16,431

14,567②Property-related expenses (\ Thousands)

Insurance

Reference

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

2,358

727

2,538

4,670

1,705

1,500

5,516

2,459

1,735

1,461

7,055

1,520

2,793

2,157

Reference： Percentage of rental and other operating revenues

3.1%

2.8%

3.4%

3.4%

2.7%

3.4%

3.5%

3.6%

3.4%

3.3%

3.6%

3.2%

3.4%

3.4%

111,671

127,183

133,761

93,342

129,945

136,390323,620

90,13365,93485,771355,880

45,530143,300

80,0709,305

10,598

11,146

7,778

10,82811,36526,968

7,511

5,494

7,147

29,656

3,794

11,941

6,672

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

- 41 -

【Reference】

a0461
a0471
a0481
a0501
a0511
a0521
a0551
a0561
a0571
a0591
a0601
a0611
Earnings Performance for the Individual Properties for the 23rd Fiscal Period (May 1, 2016 to October 31, 2016)：184 days
※As of October 31, 2016

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A046

A047

A048

A050

A051

A052

A055

A056

A057

A059

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

Property Name
Acquisition Date

A060

KDX Iwamotocho Building

May 1, 2008

a0621

A061

a0631

A062

A063

KDX
Koishikawa TG
Gotanda TG
Hamamatsucho
Building
Building
Dai-2 Building
June 30, 2008 September 1, 2008 November 18, 2009 November 18, 2009
KDX Harumi
Building

Price Information

Acquisition price (\ Millions)

7,600

5,800

3,760

2,400

2,310

1,380

2,110

2,760

1,951

1,864

10,250

2,200

3,080

Percentage of total portfolio

1.9%

1.5%

0.9%

0.6%

0.6%

0.3%

0.5%

0.7%

0.5%

0.5%

2.6%

0.6%

0.8%

0.7%

Net book value (\ Millions)

7,495

5,494

3,584

2,367

2,246

1,343

2,096

2,875

1,900

1,687

9,034

2,246

3,024

2,721

Appraisal value at the end of period (\ Millions)

7,960

4,310

3,080

1,730

1,930

961

1,670

2,100

1,420

1,510

8,470

2,080

3,400

3,060

Percentage of total appraisal value

1.9%

1.0%

0.7%

0.4%

0.5%

0.2%

0.4%

0.5%

0.3%

0.4%

2.0%

0.5%

0.8%

0.7%

14

41

1

8

9

8

5

3

7

10

9

8

5

10

Leasable floor area (㎡)6,908.84

8,125.73

5,126.69

2,458.64

2,238.01

1,315.96

1,912.28

2,321.80

1,649.02

1,529.91

9,294.00

1,954.23

3,945.54

3,158.67

Leased floor area（㎡)6,908.84

8,125.73

5,126.69

2,458.64

2,238.01

1,315.96

1,912.28

2,321.80

1,649.02

1,529.91

8,657.86

1,954.23

3,945.54

3,158.67

As of October 31, 2016

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

93.2%

100.0%

100.0%

100.0%

As of April 30, 2016

100.0%

96.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

93.2%

100.0%

100.0%

100.0%

As of October 31, 2015

100.0%

96.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

88.5%

As of April 30, 2015

100.0%

100.0%

100.0%

100.0%

88.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

As of October 31, 2014

100.0%

100.0%

100.0%

63.6%

88.3%

86.8%

100.0%

100.0%

100.0%

100.0%

90.7%

100.0%

100.0%

100.0%

As of April 30, 2014

100.0%

100.0%

100.0%

91.3%

100.0%

60.8%

100.0%

100.0%

100.0%

100.0%

72.2%

100.0%

100.0%

100.0%

As of October 31, 2013100.0%

99.2%

100.0%

91.3%

100.0%

73.7%

100.0%

100.0%

100.0%

100.0%

71.2%

87.5%

100.0%

100.0%

As of April 30, 2013100.0%

100.0%

100.0%

91.3%

100.0%

100.0%

100.0%

100.0%

85.7%

100.0%

72.2%

100.0%

100.0%

100.0%

As of October 31, 2012

100.0%

91.7%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

70.3%

87.6%

100.0%

100.0%

As of April 30, 2012

91.4%

91.5%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

70.3%

87.6%

100.0%

100.0%

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

Number of tenants

2,620

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 23rd Fiscal Period

251,969

162,276

104,636

70,07966,59928,46758,51865,92245,53545,264204,904

62,290129,203

96,395

Rental revenues

227,832

137,704

93,13956,16054,79625,58250,30659,374

41,56040,923

168,715

55,384

107,782

86,785

Other operating revenues

24,137

24,571

11,497

13,91911,803

2,884

8,212

6,547

3,974

4,341

36,1896,905

21,421

9,610

88,312

48,58837,61920,341

22,994

9,065

15,477

17,586

11,991

10,50090,75019,73644,486

26,474

Property management fees

31,264

12,56013,154

6,114

6,867

3,461

6,363

5,012

4,119

3,654

31,447

4,624

13,938

8,233

Taxes

25,354

12,714

7,260

6,271

5,479

2,543

4,610

6,826

4,038

3,007

18,046

7,998

9,993

8,619

Utilities

17,86814,751

9,537

5,145

4,820

2,572

4,089

4,388

2,742

2,452

30,671

3,833

12,751

7,468

Repairs and maintenance costs

5,423

4,695

6,243

2,138

4,576

353

-

776

643

1,109

7,993

3,023

6,664

919

263

244

167

86

89

39

63

72

46

40

314

59

159

121

Trust fees and other expenses

8,138

3,622

1,256

585

1,160

95

350

510

401

235

2,276

196

979

1,111

③NOI （＝①-②） (\ Thousands)

163,657

113,687

67,01749,73843,605

19,40243,04048,33533,54334,764

114,154

42,55484,717

69,921④Depreciation (\ Thousands)

17,39948,94333,062

11,56912,360

4,155

7,983

9,990

7,207

13,30978,034

5,076

15,122

13,859⑤Rental operating income （＝③-④） (\ Thousands)

146,258

64,74433,954

38,16931,245

15,24635,05738,34526,336

21,454

36,11937,47869,59456,062

560

2,929

4,725

-

-

-

1,147

-

-

-

1,995

1,011

5,124

8,274

163,097

110,757

62,292

49,73843,605

19,402

41,892

48,33533,54334,764112,159

41,54379,592

61,647②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)⑦NCF （＝③-⑥） (\ Thousands)

Reference

Expense ratio （＝②／①）

35.0%

29.9%

36.0%

29.0%

34.5%

31.8%

26.4%

26.7%

26.3%

23.2%

44.3%

31.7%

34.4%

27.5%

Property tax for the year 2016 (\ Thousands)

50,70825,427

14,50912,543

10,959

5,085

9,219

13,651

8,067

6,022

36,02815,995

19,947

17,236

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

8,482

5,631

3,503

2,445

2,249

976

2,072

2,331

1,613

1,633

6,511

2,139

4,365

3,394

Reference： Percentage of rental and other operating revenues

3.4%

3.5%

3.3%

3.5%

3.4%

3.4%

3.5%

3.5%

3.5%

3.6%

3.2%

3.4%

3.4%

3.5%

328,200

204,910

157,210

120,300

98,82051,48092,54093,86061,48026,050114,460

75,220297,050140,280

27,35017,075

13,10010,025

8,235

4,290

7,711

7,821

5,123

2,170

9,538

6,268

24,754

11,690Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yrs (\ Thousands)
Reference：Amount of yearly avg.

- 42 -

【Reference】

a0641
a0661
a0671
a0681
a0711
a0721
a0731
a0741
a0751
a0781
a0831
a0841
Earnings Performance for the Individual Properties for the 23rd Fiscal Period (May 1, 2016 to October 31, 2016)：184 days
※As of October 31, 2016

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A071

A072

A073

A074

Property NameKDX Nihonbashi
216 Building

A064

A066
KDX Shinjuku
Building

KDX Ginza
KDX Nihonbashi
1chome Building Honcho Building

A067

A068

KDX Iidabashi
Building

KDX HigashiShinagawa
Building

KDX Hakozaki
Building

KDX ShinNihonbashi
Building

A075

Acquisition Date

December 1, 2009 February 18, 2010 November 12, 2010 November 12, 2010

A078

KDX Nihonbashi
KDX Tachikawa
Kabutocho
Ekimae Building
Building

a0851

a0861

A083

A084

A085

A086

KDX Fuchu
Building

KDX Kasuga
Building

KDX
Nakameguro
Building

KDX Omiya
Building

Price Information

July 22, 2011

July 22, 2011

July 22, 2011

Acquisition price (\ Millions)

2,010

6,800

4,300

4,000

4,670

4,590

2,710

2,300

11,270

1,267

6,120

2,800

1,880

Percentage of total portfolio

0.5%

1.7%

1.1%

1.0%

1.2%

1.2%

0.7%

0.6%

2.8%

0.3%

1.5%

0.7%

0.5%

0.5%

Net book value (\ Millions)

1,872

6,877

4,208

3,942

4,562

4,764

2,741

2,120

11,128

1,305

5,949

2,764

1,872

2,190

Appraisal value at the end of period (\ Millions)

2,050

8,290

5,550

4,540

5,410

4,300

3,200

2,720

12,400

1,550

7,560

3,630

2,610

2,730

Percentage of total appraisal value

0.5%

2.0%

1.3%

1.1%

1.3%

1.0%

0.8%

0.7%

3.0%

0.4%

1.8%

0.9%

0.6%

0.7%

8

20

3

8

5

5

8

8

7

5

36

15

5

18

Leasable floor area (㎡)1,615.20

5,836.68

3,573.59

3,998.39

4,429.25

7,117.97

3,992.60

2,658.79

7,562.93

1,612.13

10,151.48

4,345.13

2,726.69

3,814.00

Leased floor area（㎡)1,615.20

5,836.68

3,507.89

3,998.39

4,429.25

7,117.97

3,992.60

2,658.79

7,562.93

1,612.13

8,653.17

4,345.13

2,726.69

3,814.00

As of October 31, 2016

100.0%

100.0%

98.2%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

85.2%

100.0%

100.0%

100.0%

As of April 30, 2016

100.0%

98.3%

98.2%

100.0%

100.0%

88.4%

100.0%

100.0%

100.0%

100.0%

98.6%

100.0%

85.5%

100.0%

As of October 31, 2015

100.0%

100.0%

65.4%

100.0%

100.0%

51.0%

100.0%

100.0%

100.0%

100.0%

99.1%

100.0%

100.0%

100.0%

As of April 30, 2015

100.0%

88.3%

100.0%

100.0%

86.6%

73.5%

100.0%

100.0%

100.0%

100.0%

99.1%

100.0%

100.0%

93.8%

As of October 31, 2014

100.0%

91.8%

100.0%

100.0%

86.6%

56.7%

89.3%

100.0%

100.0%

100.0%

97.6%

100.0%

100.0%

100.0%

As of April 30, 2014

100.0%

88.4%

100.0%

100.0%

100.0%

76.7%

78.6%

100.0%

100.0%

100.0%

97.6%

100.0%

100.0%

100.0%

As of October 31, 2013100.0%

88.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

99.8%

100.0%

100.0%

97.4%

100.0%

95.1%

As of April 30, 2013100.0%

96.5%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

13.4%

100.0%

97.2%

92.4%

100.0%

95.1%

As of October 31, 2012

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

98.2%

95.7%

100.0%-

As of April 30, 2012

100.0%

97.7%

100.0%

100.0%

100.0%

89.2%

100.0%

100.0%

100.0%

100.0%----

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

Number of tenants

July 22, 2011 December 26, 2011 December 26, 2011 September 21, 2012 September 21, 2012 September 21, 2012 March 26, 2013
2,020

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 23rd Fiscal Period
Reference

60,536257,277

138,350

136,276

157,674

123,343

111,736

84,756281,241

64,365289,216

126,705

72,944

118,993

Rental revenues

52,282

210,549

128,017

126,033

139,677

103,559

101,023

76,601

252,469

54,922

253,948

113,870

61,966

102,924

Other operating revenues

8,254

46,727

10,332

10,242

17,996

19,784

10,7138,155

28,772

9,443

35,268

12,834

10,977

16,06918,08884,261

34,84334,72843,82456,45433,62924,537

90,29021,82096,40333,292

24,74831,265

Property management fees

5,234

22,656

9,077

9,431

10,776

13,446

7,963

6,924

25,475

5,187

28,468

11,492

6,355

9,832

Taxes

4,529

27,652

12,688

14,586

10,57916,15012,111

7,166

31,403

7,232

24,76011,441

5,607

6,724

Utilities

3,268

19,257

6,367

6,830

16,956

14,839

9,507

6,276

23,082

4,324

28,176

7,954

3,911

10,993

Repairs and maintenance costs

3,096

11,486

3,033

2,214

4,380

8,091

1,163

2,330

8,967

4,145

12,323

1,497

5,180

3,288

55

279

129

127

148

230

171

98

333

72

416

159

91

140

Trust fees and other expenses

1,903

2,929

3,546

1,538

983

3,697

2,713

1,742

1,028

856

2,258

747

3,603

285

③NOI （＝①-②） (\ Thousands)

42,447173,015

103,507

101,547

113,849

66,888

78,10760,219190,951

42,545

192,81293,412

48,19587,728④Depreciation (\ Thousands)

11,376

19,11011,739

9,866

16,10726,55923,162

22,36336,3554,139

41,806

19,2869,434

13,851⑤Rental operating income （＝③-④） (\ Thousands)

31,071

153,905

91,767

91,68097,74240,32954,94537,856

154,595

38,405151,006

74,12538,76173,876

-

6,070

-

-

1,310

10,739

-

3,506

-

5,076

22,214

1,995

8,058

5,444

⑦NCF （＝③-⑥） (\ Thousands)

42,447

166,945

103,507

101,547

112,539

56,14978,10756,713

190,951

37,469170,598

91,417

40,13782,283

Expense ratio （＝②／①）

29.9%

32.8%

25.2%

25.5%

27.8%

45.8%

30.1%

29.0%

32.1%

33.9%

33.3%

26.3%

33.9%

26.3%

Property tax for the year 2016 (\ Thousands)

9,059

55,30425,37329,173

21,15832,267

24,222

14,33262,803

14,46549,52022,842

11,213

13,446

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

2,101

8,781

4,935

4,853

5,541

3,882

3,874

2,958

9,636

2,181

9,837

4,492

2,472

4,218

Reference： Percentage of rental and other operating revenues

3.5%

3.4%

3.6%

3.6%

3.5%

3.1%

3.5%

3.5%

3.4%

3.4%

3.4%

3.5%

3.4%

3.5%

75,950347,300

103,230

172,940

204,780

216,520

169,820

151,090549,760

99,610442,330

204,470

173,340

210,300

6,329

28,941

8,602

14,411

17,06518,043

14,151

12,59045,8138,300

36,86017,03914,445

17,525②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)

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

- 43 -

【Reference】

a0871
a0881
a0891
a0901
a0911
a0921
a0931
a0941
a0951
a0961
a0991
a1011
Earnings Performance for the Individual Properties for the 23rd Fiscal Period (May 1, 2016 to October 31, 2016)：184 days
※As of October 31, 2016

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A087

A088

A089

A090

A091

A092

A093

A094

A095

A096

KDX
Takanawadai
Building

KDX Ikebukuro
Building

KDX Mita
Building

KDX Akihabara
Building

KDX Iidabashi
SquareKDX MusashiKosugi Building

KDX Toyosu
Grand Square

KDX
Takadanobaba
Building

A099

Property Name

Itopia Nihonbashi KDX Shinjuku
SA Building
6-chome Building

Acquisition Date

August 19, 2013 September 13, 2013 November 19, 2013 November 18, 2013 November 18, 2013 November 19, 2013 January 10, 2014 March 20, 2014 May 30, 2014 May 30, 2014

a1021

A101

a1031

A102

A103

KDX Yokohama
KDX ShinNishiguchi
Yokohama 214
Building
Building
September 3, 2014 October 29, 2014 December 2, 2014 December 2, 2014
KDX Ikebukuro KDX YokohamaWest Building
Building

Price Information

Acquisition price (\ Millions)

2,200

1,900

5,250

3,900

3,180

2,600

4,350

12,000

8,666

3,650

1,934

7,210

2,750

Percentage of total portfolio

0.6%

0.5%

1.3%

1.0%

0.8%

0.7%

1.1%

3.0%

2.2%

0.9%

0.5%

1.8%

0.7%

0.6%

Net book value (\ Millions)

2,254

1,888

5,293

3,760

3,154

2,563

4,995

11,535

8,334

3,637

1,986

7,581

2,746

2,218

Appraisal value at the end of period (\ Millions)

2,550

2,870

6,060

4,730

3,390

3,020

5,140

14,600

9,040

4,180

2,010

8,100

3,030

2,350

Percentage of total appraisal value

0.6%

0.7%

1.5%

1.1%

0.8%

0.7%

1.2%

3.5%

2.2%

1.0%

0.5%

2.0%

0.7%

0.6%

12

7

7

9

12

6

6

9

15

10

6

25

14

16

Leasable floor area (㎡)3,106.42

4,037.44

6,951.88

3,110.65

3,331.61

2,289.27

4,571.92

12,978.52

11,797.85

4,585.47

2,553.06

10,932.12

4,981.07

4,615.14

Leased floor area（㎡)3,012.86

4,037.44

6,537.12

2,808.51

3,331.61

2,289.27

4,280.71

12,978.52

11,557.40

4,269.37

2,553.06

10,389.58

4,981.07

4,412.63

As of October 31, 2016

97.0%

100.0%

94.0%

90.3%

100.0%

100.0%

93.6%

100.0%

98.0%

93.1%

100.0%

95.0%

100.0%

95.6%

As of April 30, 2016

100.0%

100.0%

94.0%

100.0%

90.6%

100.0%

47.7%

100.0%

100.0%

93.1%

100.0%

98.5%

100.0%

95.6%

As of October 31, 2015

100.0%

90.2%

100.0%

100.0%

87.5%

100.0%

0.0%

100.0%

80.8%

100.0%

100.0%

98.2%

100.0%

83.0%

As of April 30, 2015

100.0%

100.0%

100.0%

100.0%

95.6%

100.0%

100.0%

100.0%

87.0%

100.0%

81.2%

100.0%

100.0%

96.3%

As of October 31, 2014

98.0%

100.0%

100.0%

100.0%

95.6%

100.0%

100.0%

100.0%

87.0%

100.0%

100.0%

100.0%--

As of April 30, 2014

81.1%

100.0%

95.7%

100.0%

88.4%

100.0%

100.0%

95.9%

-

-

-

-

-

-

As of October 31, 2013100.0%

100.0%

-

-

-

-

-

-

-

-

-

-

-

-

As of April 30, 2013

-

-

-

-

-

-

-

-

-

-

-

-

-

-

As of October 31, 2012

-

-

-

-

-

-

-

-

-

-

-

-

-

-

As of April 30, 2012

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

Number of tenants

2,200

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 23rd Fiscal Period
Reference

99,766106,207

209,306

131,179

104,462

82,05335,762438,606

282,879

133,545

72,764274,108

114,41375,703

Rental revenues

89,49287,009185,150

111,943

84,86075,69829,715396,218

227,620

105,162

61,086

233,136

97,49861,850

Other operating revenues

10,27419,19824,156

19,235

19,601

6,355

6,046

42,38855,25928,383

11,67740,971

16,915

13,852

27,19335,00759,64633,08033,45919,74964,217

98,63584,21739,82818,217

174,50347,30628,290Property management fees

10,3148,777

16,471

10,562

8,822

5,355

6,782

36,31420,804

9,671

6,268

26,373

11,333

7,486

Taxes

6,820

10,50718,480

7,517

9,781

3,455

13,50526,65021,502

9,736

5,067

18,994

10,277

5,987

Utilities

6,508

8,629

16,611

9,251

9,481

5,543

6,721

25,66731,733

11,092

5,169

23,249

11,965

6,544

Repairs and maintenance costs

2,117

5,187

6,712

862

3,477

3,556

14,312

7,060

1,953

7,379

1,504

102,096

8,063

2,463

134

149

243

91

134

81

170

447

399

143

98

426

182

180

Trust fees and other expenses

1,298

1,755

1,126

4,796

1,761

1,757

22,724

2,496

7,823

1,804

109

3,362

5,484

5,627

③NOI （＝①-②） (\ Thousands)

72,573

71,200149,660

98,09871,00262,303△28,455

339,971

198,661

93,71754,547

99,604

67,10747,412④Depreciation (\ Thousands)

10,146

9,272

8,588

27,193

11,287

11,171

26,612

101,805

78,04615,017

9,893

43,941

14,96812,674⑤Rental operating income （＝③-④） (\ Thousands)

62,42761,927141,071

70,90459,715

51,131△55,068

238,165

120,615

78,69944,65355,66352,13834,738⑥Capital expenditures (\ Thousands)

16,4394,339

16,717

330

999

2,835

1,180

-

430

870

4,330

387,647

3,438

11,955⑦NCF （＝③-⑥） (\ Thousands)

56,133

66,861

132,942

97,76870,00359,468△29,635

339,971

198,230

92,84750,217△288,042

63,66835,457

Expense ratio （＝②／①）

27.3%

33.0%

28.5%

25.2%

32.0%

24.1%

179.6%

22.5%

29.8%

29.8%

25.0%

63.7%

41.3%

37.4%

Property tax for the year 2016 (\ Thousands)

13,64020,991

36,96015,016

19,563

6,911

27,00953,26941,216

19,455

10,11837,98020,555

11,974

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

3,517

3,620

7,325

4,679

3,580

2,946

715

15,889

2,979

4,638

2,598

7,626

3,704

2,512

Reference： Percentage of rental and other operating revenues

3.5%

3.4%

3.5%

3.6%

3.4%

3.6%

2.0%

3.6%

1.1%

3.5%

3.6%

2.8%

3.2%

3.3%

337,220

214,340551,21372,362

180,220

117,070

384,169

140,030

708,370

213,711

187,542

647,152

213,177

170,738

28,101

17,86145,934

6,030

15,0189,755

32,014

11,66959,03017,80915,62853,92917,764

14,228②Property-related expenses (\ Thousands)

Insurance

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

- 44 -

【Reference】

a1051
a1071
a1081
a1091
a1121
a1131
a1141
a0121
a0421
a0441
a0531
a0541
Earnings Performance for the Individual Properties for the 23rd Fiscal Period (May 1, 2016 to October 31, 2016)：184 days
※As of October 31, 2016

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A105

A108

A109

A112

A113

A114

A012

A042

KDX
Nittochi
KDX
KDX
Portus Center
KDX Karasuma
Pentel Building
Hamamatsucho
Toranomon
Shin-Nihonbashi
Nihonbashi
Building
Building
Center Building
Building
Ekimae Building Edo-dori Building
December 3, 2014 March 13, 2015 March 26, 2015 September 1, 2015 March 30, 2016 August 2, 2016 August 2, 2016 September 21, 2005 June 1, 2007

Property Name
Acquisition Date

a0691

Other Regional Areas

A107
KDX
Ginza East
Building

BUREX
Toranomon

a0581

A044

A053

A054

A058

KDX Sendai
Building

KDX HakataMinami Building

KDX Kitahama
Building

KDX Nagoya
Sakae Building

A069

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

KDX KobayashiDoshomachi
Building
December 1, 2010

Price Information

Acquisition price (\ Millions)

1,750

3,600

3,350

3,950

15,550

3,829

1,350

5,570

5,400

2,100

4,900

2,220

7,550

Percentage of total portfolio

0.4%

0.9%

0.8%

1.0%

3.9%

1.0%

0.3%

1.4%

1.4%

0.5%

1.2%

0.6%

1.9%

0.7%

Net book value (\ Millions)

1,738

3,601

3,554

4,040

15,666

3,853

1,364

4,145

5,174

2,008

4,577

2,093

6,863

2,278

Appraisal value at the end of period (\ Millions)

2,440

3,700

3,714

4,140

16,600

3,950

1,420

4,710

5,300

1,670

3,850

1,610

5,270

2,570

Percentage of total appraisal value

0.6%

0.9%

0.9%

1.0%

4.0%

1.0%

0.3%

1.1%

1.3%

0.4%

0.9%

0.4%

1.3%

0.6%

1

12

10

8

4

8

6

29

39

34

50

10

15

12

Leasable floor area (㎡)

1,900.93

4,458.02

4,346.66

3,052.64

8,179.00

3,287.64

1,516.15

11,582.43

8,743.96

3,962.37

9,813.85

3,995.50

6,923.12

7,072.23

Leased floor area（㎡)1,900.93

4,458.02

4,346.66

3,052.64

8,179.00

2,209.92

1,117.79

11,197.97

8,743.96

3,962.37

9,579.31

3,569.96

6,688.59

7,072.23

As of October 31, 2016

100.0%

100.0%

100.0%

100.0%

100.0%

67.2%

73.7%

96.7%

100.0%

100.0%

97.6%

89.3%

96.6%

100.0%

As of April 30, 2016

100.0%

100.0%

94.9%

100.0%

100.0%

-

-

97.3%

99.3%

100.0%

97.5%

89.3%

100.0%

100.0%

As of October 31, 2015

100.0%

100.0%

88.9%

100.0%

-

-

-

95.9%

99.2%

100.0%

88.7%

92.8%

100.0%

100.0%

As of April 30, 2015

100.0%

96.4%

100.0%

-

-

-

-

94.9%

100.0%

96.4%

94.7%

92.8%

100.0%

100.0%

As of October 31, 2014

-

-

-

-

-

-

-

97.5%

100.0%

94.4%

98.5%

92.8%

99.3%

91.3%

As of April 30, 2014

-

-

-

-

-

-

-

96.5%

100.0%

91.9%

95.8%

92.8%

100.0%

100.0%

As of October 31, 2013

-

-

-

-

-

-

-

95.8%

94.3%

91.5%

93.9%

92.8%

100.0%

100.0%

As of April 30, 2013

-

-

-

-

-

-

-

98.6%

98.3%

96.8%

94.9%

92.8%

100.0%

93.5%

As of October 31, 2012

-

-

-

-

-

-

-

89.5%

99.2%

93.8%

93.3%

92.8%

100.0%

91.3%

As of April 30, 2012

-

-

-

-

-

-

-

89.5%

100.0%

96.7%

86.0%

89.2%

100.0%

95.6%

Operating periods

184days184days184days184days184days

91days91days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

49,996

123,862

119,906

104,906

385,395

29,155

13,822294,790

215,507

93,410174,149

75,197

183,700

191,532

49,996

103,896

115,206

94,207357,633

25,271

13,086

243,246

183,354

79,848146,369

59,761

160,874

170,561-

19,9654,700

10,69927,762

3,884

736

51,54432,153

13,562

27,78015,43522,825

20,9708,320

31,493

44,91827,68453,765

16,142

5,779

120,895

65,57529,08857,29838,027

57,83993,962

Property management fees

1,870

9,282

29,771

9,167

32,562

3,295

1,324

63,697

20,377

11,27014,408

7,257

17,721

15,638

Taxes

6,254

10,413

13,250

7,632

9

18

9

21,911

21,544

6,737

10,052

4,437

19,842

11,439

-

9,998

-

6,026

19,162

2,247

989

21,722

19,046

8,940

22,388

8,688

15,835

15,811

Repairs and maintenance costs

121

787

395

4,255

567

1,050

690

10,709

2,639

649

3,359

11,528

2,403

2,697

Insurance

73

181

217

118

341

55

21

1,122

287

141

298

114

247

268

Trust fees and other expenses

-

830

1,284

484

1,121

9,475

2,743

1,732

1,679

1,350

6,791

6,001

1,790

48,107③NOI （＝①-②） (\ Thousands)

41,67592,36874,987

77,222

331,629

13,012

8,043

173,894

149,932

64,321

116,851

37,169125,860

97,569④Depreciation (\ Thousands)

12,167

12,884

12,6939,206

47,339

3,777

1,366

51,72430,926

19,83337,08913,573

71,86853,414⑤Rental operating income （＝③-④） (\ Thousands)

29,50879,48462,29468,015284,290

9,234

6,676

122,170

119,005

44,48879,761

23,59553,99244,154-820-

46,274

-

312

1,344

360

2,065

-

10,818

5,092

900

-

41,67591,54874,98730,947

331,629

12,7006,699

173,534

147,867

64,321106,032

32,076

124,960

97,569Number of tenants

2,870

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 23rd Fiscal Period

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

Utilities⑥Capital expenditures (\ Thousands)⑦NCF （＝③-⑥） (\ Thousands)

Reference

Expense ratio （＝②／①）

16.6%

25.4%

37.5%

26.4%

14.0%

55.4%

41.8%

41.0%

30.4%

31.1%

32.9%

50.6%

31.5%

49.1%

Property tax for the year 2016 (\ Thousands)

12,506

20,82526,50015,26591,48425,4706,637

43,82343,091

13,474

20,108

8,875

39,68522,879Property management fee (Leasing management fees) of ② (\ Thousands)

1,870

4,412

3,977

3,716

14,633

860

446

9,565

7,457

3,219

5,938

2,293

6,317

5,900

Reference： Percentage of rental and other operating revenues

3.7%

3.6%

3.3%

3.5%

3.8%

3.0%

3.2%

3.2%

3.5%

3.4%

3.4%

3.0%

3.4%

3.1%

25,599242,059

288,245

169,148

118,382

231,210

92,960856,430

262,560

223,960

185,690

136,270

95,450170,520

2,133

20,171

24,02014,095

9,865

19,267

7,746

71,36921,88018,663

15,474

11,355

7,954

14,210Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yrs (\ Thousands)
Reference：Amount of yearly avg.

A058 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.
- 45 -

【Reference】

a0701
a0791
a0821
a0971
a0981
a1001
a1041
a1061
a1101
a1111
b0191
c0011
Earnings Performance for the Individual Properties for the 23rd Fiscal Period (May 1, 2016 to October 31, 2016)：184 days
※As of October 31, 2016

Type

Office Buildings

Location

Other Regional Areas

Property No.

A070

A079

Property NameKDX Sapporo
Building

KDX Nagoya
Ekimae Building

A082

A097

A098

Acquisition Date

March 25, 2011 December 26, 2011 March 28, 2012 May 30, 2014

A100

A104

A106

A110

Residential
Properties
Tokyo
Metropolitan
Area
B019

A111

KDX MinamiKDX
KDX
Nichigin-mae
Honmachi
Sakura-doriShin-Osaka
KD 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

c0021

c0041

Central Urban Retail Properties
Tokyo Metropolitan Area

Residence
Charmante
Tsukishima

C001

C002

C004

Frame
Jinnan-zaka

KDX Yoyogi
Building

Ginza 4chome
Tower

May 1, 2006 August 1, 2005 September 30, 2005 August 19, 2013

Price Information

Acquisition price (\ Millions)

2,005

7,327

2,770

2,350

1,300

13,000

2,200

5,900

4,550

3,500

5,353

9,900

2,479

Percentage of total portfolio

0.5%

1.8%

0.7%

0.6%

0.3%

3.3%

0.6%

1.5%

1.1%

0.9%

1.3%

2.5%

0.6%

2.5%

Net book value (\ Millions)

1,957

7,972

2,572

2,343

1,397

12,813

2,127

6,253

4,598

3,564

4,582

9,342

2,465

9,658

Appraisal value at the end of period (\ Millions)

2,190

9,000

3,550

2,480

1,530

12,900

2,830

7,490

4,870

3,830

4,900

10,7002,130

13,200Percentage of total appraisal value

0.5%

2.2%

0.9%

0.6%

0.4%

3.1%

0.7%

1.8%

1.2%

0.9%

1.2%

2.6%

0.5%

3.2%

21

19

7

24

20

57

22

32

17

13

1

13

11

4

Leasable floor area (㎡)3,788.51

7,902.96

4,986.24

5,328.77

3,982.43

17,209.90

5,285.95

12,335.57

5,977.39

4,360.90

7,711.14

4,646.51

1,176.25

5,624.23

Leased floor area（㎡)3,788.51

7,902.96

4,986.24

5,328.77

3,602.47

14,332.26

4,891.88

12,222.11

5,977.39

4,019.23

7,711.14

4,646.51

1,176.25

5,624.23

As of October 31, 2016

100.0%

100.0%

100.0%

100.0%

90.5%

83.3%

92.5%

99.1%

100.0%

92.2%

100.0%

100.0%

100.0%

100.0%

As of April 30, 2016

100.0%

100.0%

100.0%

100.0%

90.5%

95.7%

100.0%

98.2%

100.0%

89.5%

100.0%

95.5%

100.0%

100.0%

As of October 31, 2015

100.0%

100.0%

100.0%

100.0%

82.3%

97.3%

100.0%

94.6%

96.6%

-

100.0%

95.2%

100.0%

100.0%

As of April 30, 2015

100.0%

99.0%

100.0%

98.5%

74.0%

99.0%

98.8%

89.9%

-

-

100.0%

98.0%

91.7%

100.0%

As of October 31, 2014

95.6%

99.0%

100.0%

97.0%

73.3%

99.3%

-

-

-

-

100.0%

93.6%

100.0%

100.0%

As of April 30, 2014

97.8%

100.0%

100.0%

-

-

-

-

-

-

-

100.0%

96.3%

100.0%

100.0%

As of October 31, 2013

89.8%

100.0%

100.0%

-

-

-

-

-

-

-

100.0%

100.0%

100.0%

100.0%

As of April 30, 2013

94.4%

100.0%

100.0%

-

-

-

-

-

-

-

100.0%

100.0%

100.0%-

As of October 31, 2012

100.0%

93.8%

95.5%

-

-

-

-

-

-

-

100.0%

100.0%

100.0%-

As of April 30, 2012

100.0%

92.8%

95.5%

-

-

-

-

-

-

-

100.0%

100.0%

100.0%-

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

Number of tenants

9,800

Occupancy ratio
Lease Information
Income and Retained Earnings Information for the 23rd Fiscal Period

92,645284,113138,039

128,337

68,738

830,748

109,296334,550

145,680

103,672

146,746

261,285

69,627280,141

Rental revenues

76,800242,311

111,461

112,31356,315419,028

86,956276,144

128,843

87,950132,064

239,027

59,954

245,603

Other operating revenues

15,84441,802

26,577

16,023

12,422

411,720

22,34058,405

16,837

15,722

14,681

22,258

9,672

34,53833,988117,21341,50750,052

23,846375,492

41,118147,018

44,30523,202

36,19058,99914,56871,138Property management fees

9,323

29,508

9,586

15,167

8,234

88,843

10,51948,62013,131

8,878

16,614

18,3494,165

19,052

Taxes

8,826

38,191

12,018

8,572

6,638

60,62812,422

36,034

12,223-

10,085

15,463

4,273

20,532

Utilities

10,642

28,523

16,801

10,146

6,312

99,703

14,94432,781

11,812

7,309

1,324

18,294

4,190

19,950

Repairs and maintenance costs

4,031

15,496

1,085

15,1091,021

43,388

1,486

26,183

5,652

4,809

5,884

5,559

1,107

1,127

150

368

192

201

143

1,261

193

520

214

133

273

154

37

194

Trust fees and other expenses

1,013

5,124

1,823

854

1,497

81,668

1,552

2,877

1,269

2,073

2,007

1,178

795

10,282③NOI （＝①-②） (\ Thousands)

58,656

166,899

96,531

78,28544,892455,256

68,177

187,531

101,375

80,469110,555

202,285

55,058209,003④Depreciation (\ Thousands)

16,81841,62835,38727,75812,507

114,387

23,93836,911

20,36926,25946,16458,2859,267

35,047⑤Rental operating income （＝③-④） (\ Thousands)

41,838125,270

61,14450,52632,385

340,868

44,239150,620

81,00554,21064,391

144,000

45,791

173,955②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)⑦NCF （＝③-⑥） (\ Thousands)-

11,348-6,300

25,08369,757-

266,307

12,137

8,367

4,787

4,327

651

8,419

58,656

155,551

96,531

71,98519,809385,498

68,177△78,776

89,237

72,102

105,768

197,958

54,406200,583

Reference

Expense ratio （＝②／①）

36.7%

41.3%

30.1%

39.0%

34.7%

45.2%

37.6%

43.9%

30.4%

22.4%

24.7%

22.6%

20.9%

25.4%

Property tax for the year 2016 (\ Thousands)

17,654

76,38324,037

17,145

13,276

121,256

24,85072,07724,446

17,608

20,16130,9208,528

41,064

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

3,087

9,204

4,787

4,216

2,319

24,794

3,621

10,654

5,041

3,758

4,651

9,460

2,544

9,982

Reference： Percentage of rental and other operating revenues

3.3%

3.2%

3.5%

3.3%

3.4%

3.0%

3.3%

3.2%

3.5%

3.6%

3.2%

3.6%

3.7%

3.6%

202,570

527,610219,680

312,190

195,898

1,489,569

111,951

580,570

274,671132,296334,719

141,540

47,520161,290

16,88043,96718,30626,015

16,324

124,130

9,329

48,38022,88911,02427,893

11,7953,960

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

- 46 -

d002199【Reference】
Type

Other
Tokyo
Metropolitan
Area
D002

Location
Property No.

Total of 99
Properties

Property Name

Shinjuku 6-chome
Building (Land)

Acquisition Date

April 18, 2014

Price Information

Acquisition price (\ Millions)

2,880

Percentage of total portfolio

0.7%

398,350
100.0%Net book value (\ Millions)

2,973

389,197

Appraisal value at the end of period (\ Millions)

3,190

414,605

Percentage of total appraisal value

0.8%

100.0%

1

1,209

Leasable floor area (㎡)1,355.13

462,533.92

Leased floor area（㎡)1,355.13

448,327.58

As of October 31, 2016

100.0%

96.9%

As of April 30, 2016

100.0%

96.9%

As of October 31, 2015

100.0%

94.9%

As of April 30, 2015

100.0%

96.5%

As of October 31, 2014

100.0%

95.6%

As of April 30, 2014

100.0%

96.0%

As of October 31, 2013

-

95.8%

As of April 30, 2013

-

93.9%

As of October 31, 2012

-

95.5%

As of April 30, 2012-

Number of tenants

Occupancy ratio
Lease Information

95.4%

Income and Retained Earnings Information for the 23rd Fiscal Period

183days ※Operating periods

184days①Rental and other operating revenues (\ Thousands)

68,12813,429,773

68,124

11,362,345

4

2,067,427

6,116

4,479,924-

1,280,694

5,916

1,111,203

Utilities-

1,110,302

Repairs and maintenance costs-

582,716

Insurance-

18,018Trust fees and other expenses

200

376,988③NOI （＝①-②） (\ Thousands)

62,011

8,949,849-

2,274,750

62,011

6,675,098-

1,165,142

62,011

7,784,706

Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees
Taxes

④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)⑦NCF （＝③-⑥） (\ Thousands)
Expense ratio （＝②／①）
Property tax for the year 2016 (\ Thousands)

Reference

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

Reference： Percentage of rental and other operating revenues

9.0%

33.4%

11,8332,361,301-

445,739

0.0%

3.3%

-

21,416,472-

1,784,706

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

*Total: Cost-weighted average management period (days)- 47 -

(Reference) Borrowings
Borrowings as of October 31, 2016 are as follows.
Classification

LenderDrawndown Date

Balance at the
Beginning of
Period(\Thousands)

Balance at theEnd of Period(\Thousands)

Average Interest
Rate (Note 1)(%)

Last Repayment Date

Short-Term
Loans
PayablePayment
MethodUsage

Remarks

Full onmaturity(Note 2)

Unsecured/
Unguaranteed

Current Portion of Long-Term Loans Payable
Long-Term Loans Payable

Sumitomo Mitsui Banking Corporation

July 31, 2015

1,000,000

-

0.435

July 31, 2016

Sumitomo Mitsui Banking Corporation

March 31, 2016

1,500,000

1,500,000

0.413

March 31, 2017

2,500,000

1,500,000

2,500,000
2,500,000
2,000,000
2,500,000
1,500,000
1,500,000
2,000,000
500,000
2,000,000
1,000,000
1,200,000
500,000
1,500,000
5,000,000
1,000,000
1,000,000
2,500,000
30,700,000
2,300,000
700,000
1,400,000
1,000,000
2,500,000
500,000
500,000
1,000,000
1,000,000
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
2,250,000
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
1,250,000
350,000
1,700,000
1,250,000
2,100,000
1,000,000

2,000,000
500,000
2,000,000
1,000,000
1,200,000
500,000
1,500,000
1,000,000
1,000,000
1,000,000
5,000,000
1,000,000
1,000,000
2,500,000
21,200,000
2,300,000
700,000
1,400,000
1,000,000
2,500,000
500,000
500,000
1,000,000
1,000,000
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
2,250,000
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
1,250,000
350,000
1,700,000
1,250,000
2,100,000
1,000,000

1.439
1.415
1.439
1.061
1.045
0.463
0.413
0.983
1.013
0.974
0.667
1.364
1.286
0.381
0.381
0.231
1.158
1.158
1.158
1.096

October 31, 2016
October 31, 2016
October 31, 2016
October 31, 2016
October 31, 2016
July 29, 2016
November 30, 2016
December 12, 2016
December 28, 2016
January 15, 2017
January 31, 2017
March 28, 2017
June 30, 2017
July 31, 2017
August 31, 2017
August 31, 2017
September 21, 2017
September 21, 2017
September 21, 2017
October 31, 2017

Full onmaturity(Note 2)

Unsecured/
Unguaranteed

2.023
2.206
1.770
1.770
1.253
1.086
1.086
1.036
1.036
0.561
0.950
0.950
0.950
0.969
0.950
1.080
1.080
1.080
1.420
1.059
1.059
0.887
0.820
1.074
1.074
0.844
1.122
1.122
1.205
0.932
1.130
0.751
0.781
0.916
1.358
0.912
1.013
1.199
1.349
0.762
0.954
0.640
0.903
0.903
0.682
0.616
0.736
0.756
1.014
0.650
0.885
0.885
0.979
0.979
0.798
0.893
0.802
1.071
1.126
1.071
1.257
1.259
0.710
1.161
0.907
0.907
1.157
1.314
1.153
1.218

November 12, 2017
November 12, 2017
March 28, 2019
March 28, 2019
October 31, 2018
December 28, 2017
December 29, 2017
March 26, 2018
March 26, 2018
July 31, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 31, 2018
August 31, 2018
August 31, 2018
August 31, 2020
September 30, 2019
September 30, 2019
October 31, 2018
November 12, 2018
November 12, 2020
November 12, 2020
November 30, 2018
November 30, 2020
November 30, 2020
January 31, 2021
January 31, 2020
January 31, 2021
March 12, 2018
March 31, 2019
March 12, 2020
March 12, 2023
March 12, 2020
September 20, 2021
March 20, 2022
March 12, 2023
March 31, 2019
October 31, 2020
July 10, 2019
July 10, 2021
July 10, 2021
July 31, 2019
July 31, 2019
July 31, 2020
October 31, 2020
July 31, 2022
July 31, 2019
August 31, 2021
August 31, 2021
August 31, 2022
August 31, 2022
September 30, 2020
September 30, 2021
October 31, 2021
October 31, 2023
October 31, 2023
October 31, 2023
October 31, 2024
October 31, 2024
January 31, 2021
January 31, 2025
February 28, 2022
February 28, 2022
February 29, 2024
February 28, 2025
February 28, 2025
February 28, 2025

Full onmaturity(Note 2)

Unsecured/
Unguaranteed

Sub Total
Sumitomo Mitsui Banking Corporation
December 26, 2011
Development Bank of Japan Inc.
December 26, 2011
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
December 26, 2011
Aozora Bank, Ltd.
October 31, 2012
Sumitomo Mitsui Trust Bank, Limited
October 31, 2012
Mitsubishi UFJ Trust and Banking Corporation
July 31, 2013
Sumitomo Mitsui Banking Corporation
November 12, 2015
Resona Bank, Limited
December 10, 2012
Development Bank of Japan Inc.
December 28, 2012
Sumitomo Mitsui Trust Bank, Limited
January 15, 2013
Mitsubishi UFJ Trust and Banking Corporation
January 31, 2014
The Bank of Fukuoka, Ltd.
March 28, 2012
Resona Bank, Limited(Note 3)June 29, 2012
Sumitomo Mitsui Banking Corporation
July 29, 2016
Sumitomo Mitsui Banking Corporation
August 2, 2016
Mizuho Bank, Ltd.
August 2, 2016
Sumitomo Mitsui Banking Corporation(Note 3) September 21, 2012
Development Bank of Japan Inc.
(Note 3) September 21, 2012
Mizuho Bank, Ltd.
(Note 3) September 21, 2012
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(Note 3) October 31, 2012
Sub Total
Development Bank of Japan Inc.
November 12, 2010
Development Bank of Japan Inc.
December 1, 2010
Sumitomo Mitsui Banking Corporation
March 28, 2012
Development Bank of Japan Inc.
March 28, 2012
Aozora Bank, Ltd.
October 31, 2012
The Bank of Fukuoka, Ltd.
December 28, 2012
Mizuho Trust & Banking Co., Ltd.
December 28, 2012
Resona Bank, Limited
March 26, 2013
Sumitomo Mitsui Banking Corporation
March 26, 2013
Resona Bank, Limited
July 31, 2013
Sumitomo Mitsui Banking Corporation
August 19, 2013
Aozora Bank, Ltd.
August 19, 2013
Mizuho Trust & Banking Co., Ltd.
August 19, 2013
The Hiroshima Bank, Ltd.
August 19, 2013
The Bank of Fukuoka, Ltd.
August 19, 2013
The Nishi-Nippon City Bank, Ltd.
August 30, 2013
The 77 Bank, Ltd.
August 30, 2013
The Higashi-Nippon Bank, Limited
August 30, 2013
Development Bank of Japan Inc.
August 30, 2013
Aozora Bank, Ltd.
September 30, 2013
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
September 30, 2013
Resona Bank, Limited
October 31, 2013
Sumitomo Mitsui Trust Bank, Limited
November 12, 2013
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
November 12, 2013
Aozora Bank, Ltd.
November 12, 2013
Mizuho Bank, Ltd.
November 29, 2013
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
November 29, 2013
Aozora Bank, Ltd.
November 29, 2013
Sumitomo Mitsui Banking Corporation
January 10, 2014
Sumitomo Mitsui Trust Bank, Limited
January 31, 2014
Sumitomo Mitsui Banking Corporation
January 31, 2014
Aozora Bank, Ltd.
March 12, 2014
Sumitomo Mitsui Trust Bank, Limited
March 12, 2014
Sumitomo Mitsui Banking Corporation
March 12, 2014
Development Bank of Japan Inc.
March 12, 2014
Sumitomo Mitsui Banking Corporation
March 20, 2014
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
March 20, 2014
Development Bank of Japan Inc.
March 20, 2014
Development Bank of Japan Inc.
March 20, 2014
Sumitomo Mitsui Trust Bank, Limited
March 31, 2014
Sumitomo Mitsui Banking Corporation
April 22, 2014
The Hiroshima Bank, Ltd.
July 10, 2014
Mizuho Bank, Ltd.
July 10, 2014
The Nishi-Nippon City Bank, Ltd.
July 10, 2014
Mitsubishi UFJ Trust and Banking Corporation
July 14, 2014
Sumitomo Mitsui Trust Bank, Limited
July 31, 2014
Sumitomo Mitsui Banking Corporation
July 31, 2014
Resona Bank, Limited
July 31, 2014
Sumitomo Mitsui Banking Corporation
July 31, 2014
Sumitomo Mitsui Trust Bank, Limited
August 29, 2014
Mizuho Trust & Banking Co., Ltd.
September 1, 2014
The Bank of Fukuoka, Ltd.
September 1, 2014
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
September 3, 2014
Resona Bank, Limited
September 3, 2014
Sumitomo Mitsui Trust Bank, Limited
September 22, 2014
Mizuho Trust & Banking Co., Ltd.
September 30, 2014
Mitsubishi UFJ Trust and Banking Corporation
October 31, 2014
Resona Bank, Limited
October 31, 2014
Development Bank of Japan Inc.
October 31, 2014
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 31, 2014
Sumitomo Mitsui Banking Corporation
October 31, 2014
Development Bank of Japan Inc.
October 31, 2014
Mitsubishi UFJ Trust and Banking Corporation
January 30, 2015
Sumitomo Mitsui Banking Corporation
January 30, 2015
Sumitomo Mitsui Trust Bank, Limited
February 18, 2015
Aozora Bank, Ltd.
February 18, 2015
Sumitomo Mitsui Banking Corporation
February 18, 2015
Development Bank of Japan Inc.
February 18, 2015
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
February 27, 2015
Mizuho Bank, Ltd.
March 12, 2015

- 48 -

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
MethodUsage

Remarks

Long-Term Loans Payable

Sumitomo Mitsui Banking Corporation
March 31, 2015
March 31, 2025
2,500,000
2,500,000
1.266
Aozora Bank, Ltd.
April 30, 2015
April 30, 2022
2,300,000
2,300,000
0.825
The Nishi-Nippon City Bank, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
The 77 Bank, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
The Mie Bank, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
Mizuho Bank, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
The Bank of Fukuoka, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
The Higashi-Nippon Bank, Limited
August 31, 2015
August 31, 2022
500,000
500,000
0.872
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
October 31, 2024
1,000,000
1,000,000
0.989
Sumitomo Mitsui Banking Corporation
October 30, 2015
October 30, 2025
2,500,000
2,500,000
1.114
Development Bank of Japan Inc.
October 30, 2015
October 30, 2025
2,500,000
2,500,000
1.121
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 30, 2015
October 30, 2025
2,000,000
2,000,000
1.114
Mizuho Bank, Ltd.
October 30, 2015
October 30, 2025
1,500,000
1,500,000
1.114
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
January 31, 2022
2,500,000
2,500,000
0.590
Full on
Unsecured/
Sumitomo Mitsui Banking Corporation
January 29, 2016
January 31, 2022
500,000
500,000
0.640(Note 2)maturity
Unguaranteed
Sumitomo Mitsui Banking Corporation
January 29, 2016
January 29, 2026
2,000,000
2,000,000
1.074
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
January 29, 2016
January 29, 2026
1,800,000
1,800,000
1.024
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
March 31, 2019
1,000,000
1,000,000
0.169
Resona Bank, Limited
March 31, 2016
March 31, 2026
1,000,000
1,000,000
0.898
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
0.613
Mizuho Bank, Ltd.
August 2, 2016
July 31, 2026
1,000,000
0.544
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 31, 2016
October 31, 2018
1,000,000
0.330
Aozora Bank, Ltd.
October 31, 2016
October 31, 2024
1,000,000
0.668
Development Bank of Japan Inc.
October 31, 2016
October 31, 2026
4,000,000
0.734
Sumitomo Mitsui Banking Corporation
October 31, 2016
October 31, 2026
2,500,000
0.876
Sumitomo Mitsui Trust Bank, Limited
October 31, 2016
October 31, 2026
1,500,000
0.826
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
October 31, 2016
October 31, 2026
1,000,000
0.760
Sub Total
132,600,000
146,100,000
Total
165,800,000
168,800,000
Note 1: The average interest rate is the weighted-average interest rate during the fiscal period, rounded to the third decimal place. The Investment Corporation entered into interest-rate swap transactions with the aim ofminimizing the risk of future increase in interest rates. The effect of interest-rate swap transactions has been incorporated into calculations for the weighted-average interest rate.
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.

- 49 -