KENEDIX REALTY INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED APRIL 30, 2012 (REIT)(November 1, 2011 to April 30, 2012)
Kenedix Realty Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
Representative:

June 12, 2012

Naokatsu Uchida, Executive Director

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

Naokatsu Uchida, CEO and President

Inquiries:

Keisuke Sato, General Manager, Financial Planning Division
TEL +81-3-3519-3491

Planned submission of semiannual securities report: July 30, 2012

Planned start of distribution payments: July 10, 2012

Preparing presentation material: Yes
Hold a financial brief meeting:Yes (for institutional investors and analysts)

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED APRIL 30, 2012 (FOURTEENTH FISCAL PERIOD)(1) Business Results(Amounts are rounded down to the nearest ¥million)

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

April 30, 2012

9,090

(0.5%)

4,086(-7.7%)

2,551(-16.1%)

2,540(-16.8%)October 31, 2011

9,044

(11.2%)

4,425(19.3%)

3,040(29.6%)

3,052(32.2%)For the six months ended

Net Income

Return on Unitholders’ Equity

per Unit (Yen)

Ordinary Income to

Ordinary Income to Operating

Total Assets

Revenues

For the six months endedApril 30, 2012

8,865

1.7%

0.9%

28.1%

October 31, 2011

11,592

2.1%

1.1%

33.6%

（Total distributions is rounded down to the nearest ¥million.）(2) Distribution
Distributions per Unit
Excluding Excess of
Earnings (Yen)

Total Distribution(Millions of Yen)Distributions in

Total Distributions in

Excess of Earnings

Excess of Earnings

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

Unitholders’ Equity

For the six months endedApril 30, 2012

9,364

2,683

0

0

105.6%

1.8%

October 31, 2011

9,596

2,749

0

0

82.8%

1.7%

Note 1: The payout ratio is a figure obtained by dividing distribution per unit by net income per unit, and is rounded to the first decimal place.
Note 2: Distribution per unit for the fiscal period ended October 31, 2011 is calculated by dividing the amount remaining after deducting the provision of reserve for reduction entry (¥303
million) from unappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distribution per unit and net income per unit isdue to the calculation of distribution per unit including the deduction of the provision of reserve for reduction entry, as mentioned, and that the calculation of net income per unit isbased on the average number of units during the period.
Note 3: Distributions per unit for the fiscal period ended April 30, 2012 is calculated by dividing the amount after adding the reversal of reserve for reduction entry (¥143 million) tounappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distribution per unit and net income per unit is due to thisaddition.
（Total assets and unitholders’ equity are rounded down to the nearest ¥million.）(3) Financial Position
Total Assets

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Share of(Millions of Yen)

(Millions of Yen)

to Total Assets

Common Stock (Yen)For the six months endedApril 30, 2012

303,284

150,06349.5%

523,688

October 31, 2011

274,973150,27254.6%

524,419

This is an English-language translation of the original Japanese announcement on our Web site released on June 12, 2012. However, no assurance
or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevail in thecase of discrepancies between this translation and the Japanese original.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)（Amounts are rounded down to the nearest ¥million.）(4) Cash Flow Position
Cash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents

Operating Activities

Investing Activities

Financing Activities

at Period End(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

For the six months endedApril 30, 2012

4,144

- 32,217

23,664

13,519October 31, 2011

9,434

-14,138

9,812

17,928

2．FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING OCTOBER 31, 2012 (May 1, 2012 to October 31, 2012)
Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)Distribution perDistribution in

Unit Excluding

Excess ofExcess ofEarnings per Unit

Earnings (Yen)

(Yen)

9,400

0

For the six months
endingOctober 31, 2012

9,882

(8.7%)

4,454(9.0%)

2,987(17.1%)

2,985(17.5%)(Reference) Estimated net income per unit for the fiscal period ending October 31, 2012: ¥10,419
Forecasted number of investment units issued and outstanding as of October 31, 2012: 286,550 units(Note)
Distribution per unit is calculated under the assumption that net profit will be distributed after deduction of projected provision of reserve for reduction entry of ¥291 million

3．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) Change in accounting estimate: No(d) Retrospective restatement: No(2) Number of Investment Units Issued and Outstanding (including treasury units)(a) Number of investment units issued and outstanding at period end (including treasury units)
As of April 30, 2012: 286,550 units
As of October 31, 2011: 286,550 units(b) Number of treasury units at period end
As of April 30, 2012: 0 units
As of October 31, 2011: 0 units
Note: Please refer to page 36 “Notes to 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 andExchange Law are underway.
*Explanation on the appropriate use of the forecast of results and other matters of special consideration
The forecast of results for the fifteenth fiscal period ending October 31, 2012 are calculated as of June 12, 2012 based on theassumptions presented on page 14 “Preconditions and Assumptions for the Fiscal Period Ending October 31, 2012.” Readers areadvised that actual operating revenues, operating income, ordinary income, net income and distribution per unit may differ
significantly from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of
the forecast distribution per unit.

This notice is an English-language translation of the original Japanese announcement on our Web site released on June 12, 2012. However, noassurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shallprevail in the case of discrepancies between this translation and the Japanese original.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

1.

Basic Structure — Overview of Companies Related to the Investment Corporation
There were no major changes to the “Structure of the Investment Corporation” from the most recent securities report (submitted on January 30,2012) and extraordinary reports (submitted on April 2, 2012), accordingly this information has been omitted from this document.

2.

Management Policy and Operating Conditions(1) Management Policy
There were no major changes to the “Investment Policy,” “Investment Strategy” and “Distribution Policy” from the most recent securities report(submitted on January 30, 2012) and extraordinary reports (submitted on April 2, 2012), and accordingly this information has been omitted fromthis document.
(2) Operating Conditions(1) Operating Conditions for the Fourteenth Fiscal Period (fiscal period ended April 30, 2012)
A. The Investment Corporation
The Investment Corporation was established on May 6, 2005 in accordance with the Investment Trust and Investment Corporation Law (“theInvestment Trust Law”). On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo
Stock Exchange with a total of 75,400 investment units issued and outstanding (Securities Code: 8972). Subsequently, the Investment
Corporation raised funds through public offerings and other means including three global offerings. Most recently, the Investment Corporation
additionally issued 51,400 investment units on July 20, 2011 through public offerings including global offerings, and 1,600 investment units on
August 8, 2011 by way of third-party allotment. As a result, as of April 30, 2012, the end of the fourteenth fiscal period, the number of investment
units issued and outstanding totaled 286,550 units.
The Investment Corporation appointed Kenedix REIT Management, Inc. as its asset management company. In collaboration with the AssetManagement Company, the Investment Corporation strives to maximize cash distribution to investors by securing stable earnings andsustainable investment growth. To this end, the Investment Corporation adopts a dynamic and flexible investment stance that seeks to respond toits environment and market trends, and endeavors to ensure a timely response to opportunities. The Investment Corporation endeavors todevelop a diversified investment portfolio that it calls, “KENEDIX Selection,” adopting a three-point investment methodology based on
property type, area and size.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review (fiscal period ended April 30, 2012), with a backdrop of reconstructed supply chains and various policy
effects, the Japanese economy was steadily recovering up to the beginning of fall last year, rising out of the economic slump due to the impact of
the Great East Japan Earthquake. After this, the economy shifted within a leveling off range in the latter half of fiscal 2011 due to the impact of
the European debt crisis and appreciation of the yen, but the economy is now improving gradually such as with the spread of forward-looking
economic activities.
Concerning real estate market conditions, land prices continued to fall in 2011 for the fourth consecutive year since the Lehman Shock but therate of decrease continues to slow down, according to the Public Notice of Land Prices (as of January 1, 2012) announced by the Ministry ofLand, Infrastructure, Transport and Tourism on March 22, 2012.
The average annual change in land prices throughout Japan decreased by 3.1% for commercial land and decreased by 2.3% for residential land.
In the Tokyo area, the average annual change in land prices decreased by 1.9% for commercial land and decreased by 1.6% for residential land.
In the three major metropolitan areas, the figures decreased by 1.6% for commercial land and decreased by 1.3% for residential land. In eachcase, the rate of that decrease was smaller than in the previous survey, and there was a continued display of a turnaround movement from thedownward trend.
Concerning the office building leasing market conditions, the office vacancy rate in the five central wards of Tokyo announced by Miki Shoji
Co., Ltd. reached a record high of 9.23% in January 2012. Subsequently, although the vacancy rate had been improving for two consecutive
months due to an increase in conclusion of lease contracts at existing buildings and new buildings being completed with full occupancy, thevacancy rate rose back to 9.23% in April 2012 due to the impact of the new supply. On the other hand, the vacancy rate of existing buildings in
the five central wards of Tokyo in April 2012 has improved to 8.44% from 8.72% in December 2011, and the vacancy rate in central Tokyo has
been showing sign of hitting peak. Also, concerning new rents, solicitation of tenants continues to be intense as vacancy rates have remained
high at the 9% level, and flexible responses to the requests of tenants are still required.
In the office building transaction market, the property transactions primarily by listed real estate investment corporations (J-REITs) has been
active, within a backdrop of normalization of domestic economic activities following the Great East Japan Earthquake and a continuallyfavorable environment for debt procurement.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Also, in the listed J-REITs market, besides the new listing of Kenedix Residential Investment Corporation on April 26, 2012, the first new listingin four and a half years since October 2007, several other investment corporations are planned to be listed, and the market is showing signs ofrevitalization.
(b) Management Performance
As of the end of the thirteenth fiscal period (fiscal period ended October 31, 2011), the Investment Corporation owned 74 properties with a totalacquisition price of ¥255,546 million. During the fiscal period under review (fiscal period ended April 30, 2012), the Investment Corporationacquired four office buildings (total acquisition price of ¥15,470 million) located in the Tokyo Metropolitan Area, four office buildings (totalacquisition price of ¥15,205 million) and one others (acquisition price of ¥645 million) located in the Other Regional Areas. We also acquired
preferred equity securities (investment of ¥891 million) as a new investment method for external growth.
<8 Office Buildings and 1 Others Acquired During the Fourteenth Fiscal Period>
Property
No.
A-75
A-76
A-77
A-78
A-79
A-80
A-81
A-82
D-1

Property Name

Acquisition Price(Millions of Yen)
11,270
1,653
1,280
1,267
7,327
4,158
950
2,770
645
31,320Location

Kabutocho Nikko Building
Ikebukuro Nikko Building
Kabutocho Nikko Building II
Tachikawa Ekimae Building
Nagoya Ekimae Sakura-dori Building
Nagoya Nikko Shoken Building
Sendai Nikko Building
View Flex Umeda Building
Kanazawa Nikko Building
Total

Chuo ward, Tokyo
Toshima ward, Tokyo
Chuo ward, Tokyo
Tachikawa, Tokyo
Nagoya, Aichi
Nagoya, Aichi
Sendai, Miyagi
Osaka, Osaka
Kanazawa, Ishikawa

Acquisition Date
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
March 28, 2012
December 26, 2011-

As a result, the number of properties owned as of April 30, 2012 (excluding the preferred equity securities, same applies below.) amounts to 83,
with a total acquisition price of ¥286,866 million. In addition, the Investment Corporation has concluded a purchase and sales agreement on
February 23, 2012 and sold KDX Omori Building (initial acquisition price of ¥3,500 million) on May 11, 2012 (sales price of ¥4,200 million).
Looking at the portfolio as a whole, 92.1% was comprised of office buildings, 4.3% of central urban retail properties, 3.2% of residential
properties and 0.2% of others on an acquisition price basis. The occupancy ratio as of the end of the fourteenth fiscal period was 95.4% reflecting
stable investment and asset management.
＜Changes in Asset Size since Tenth Fiscal Period＞
Tenth Fiscal Period
Eleventh Fiscal Period
Twelfth Fiscal Period(as of April 30, 2010)(as of October 31, 2010)(as of April 30, 2011)
Total
Total
Total
Ratio
Ratio
Ratio
Acquisition Price
Acquisition Price
Acquisition Price
(%)
(%)
(%)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)

Type of Use

Office Buildings
Central Urban
Retail Properties
Residential Properties

Others

Area

Total
Tokyo Metropolitan
Area
Other Regional Areas

Thirteenth Fiscal Period(as of October 31, 2011)
Total
Ratio
Acquisition Price(%)(Millions of Yen)

Fourteenth Fiscal Period(as of April 30, 2012)
Total
Ratio
Acquisition Price(%)(Millions of Yen)

213,07190.3

211,461

90.6

224,63691.1

233,72691.4

264,401

92.1

12,3795.2

12,3795.3

12,3795.0

12,3794.8

12,3794.3

10,319

4.3

9,441

4.0

9,441

3.8

9,441

3.6

9,441

3.2

-

-

-

-

-

-

-

-

645

0.2

235,769 100.0

233,281 100.0

246,456 100.0

255,546 100.0

286,866 100.0

201,75485.5

199,26685.4

207,566

84.2

216,65684.7

232,12680.9

34,015

14.4

34,01514.5

38,89015.7

38,89015.2

54,74019.0

Total
235,769 100.0
233,281 100.0
246,456 100.0
255,546 100.0
Notes:
1. Total acquisition price is the total of acquisition price for each property classified by type and area.
2. Total acquisition price is rounded down to the nearest million yen. Percentages are rounded down to the nearest first decimal place.
3. The preferred equity securities are not included in the above chart.

286,866 100.0

Results of the Property Acquisitions and Sales in the Thirteenth Fiscal Period (fiscal period ended October 31, 2011) Onwards
The Investment Corporation has built a strong and diversified asset base (portfolio) with 83 properties amounting to ¥286,866 million in totalacquisition price and a steady occupancy ratio of 95.4% as of the end of the fiscal period under review (fiscal period ended April 30, 2012).
The Investment Corporation resumes acquisition of properties from November 2009, ahead of a full-on recovery of the real estate transaction
market, and has aimed for asset size growth. Also in the thirteenth fiscal period (fiscal period ended October 31, 2011) and onward, theInvestment Corporation acquired four office buildings (KDX Iidabashi Building, KDX Higashi-Shinagawa Building, KDX Hakozaki-4-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Building and KDX Shin-Nihonbashi Building) in July 2011, with funds procured by equity raising through public offerings and other means,continuously taking it as a good opportunity for regrowth. In the fiscal period under review (fiscal period ended April 30, 2012), eightproperties, seven of which are office buildings, (Kabutocho Nikko Building, Ikebukuro Nikko Building, Kabutocho Nikko Building II,
Tachikawa Ekimae Building, Nagoya Ekimae Sakura-dori Building, Nagoya Nikko Shoken Building, Sendai Nikko Building and Kanazawa
Nikko Building) were acquired in December 2011 and View Flex Umeda Building was acquired in March 2012 with funds procured throughnew borrowings and cash on hand. Through acquiring these thirteen properties (total acquisition price of ¥45,590 million), the Investment
Corporation increasingly enhanced its presence in the mid-sized office building transaction market. Moreover, the Investment Corporation
also secured funds for new acquisitions by selling KDX Hirakawacho Building (sales price of ¥5,800 million) in the thirteenth fiscal period(fiscal period ended October 31, 2011) and KDX Omori Building (sales price of ¥4,200 million) on May 11, 2012.
As an investment corporation with an asset base (portfolio) focused on mid-sized office buildings, having a presence the Investment
Corporation pursues consistent external growth by leveraging the know-how on operating mid-sized office buildings accumulated by the
Asset Management Company.
Acquisition of Real Estate Backed Securities (Preferred Equity Securities)
The Investment Corporation acquired the following asset (preferred equity securities) as of April 26, 2012 in order to ensure steady growththat emphasizes overall portfolio balance.
Outline of the Acquisition(i) Targeted Assets(ii) Name of Asset(iii) Type of Specified Asset(iv) Acquisition (Investment) Price(v) Date of Acquisition(vi) Acquisition Funds: The preferred equity securities issued by the Senri Property TMK for the purpose of conducting
business related to acquiring, managing, and disposing of specified assets in accordance with its
asset liquidation plan based on the Act on Liquidation of Assets.
: Senri Property TMK Preferred Securities: Trust beneficiary interest in real estate of the Senri Life Science Center Building: ¥891 million (approximately 47.39% of preferred equity investment): April 26, 2012
: Cash on hand

Operation and Management of Existing Properties
The Investment Corporation has appointed the Asset Management Company as its property management company for its entire portfolio. In
establishing a single point of contact for all matters relating to property management activities, the Investment Corporation strives to secure
consistent policies, specifications and procedures along with ensuring swift service with a high degree of quality. As of April 30, 2012, theinvestment portfolio is being managed generally at a high occupancy ratio and the occupancy ratio for the portfolio as of the end of the fiscal
period under review was 95.4%. The Investment Corporation is satisfied with the quality of property management.
Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for our office buildings was 776 as of the end of the fiscal period under review (fiscal period ended April 30, 2012).
Floor area leased to the largest office end-tenant as a proportion of total leased floor area of the total portfolio was at 5.4% (Note) and 8.0%
(Note) for the top 3 office building tenants. This illustrates our diversification of tenants. Furthermore, 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 havea relatively limited effect.
Note: The largest office end-tenant is SMBC Nikko Securities Inc. When including the affiliates of SMBC Nikko Securities Inc.who are tenants of Kabutocho
Nikko Building II, the ratios are 5.8% and 8.4% respectively. Moreover, the Investment Corporation has received a notice of cancellation dated May 31,
2012 from SMBC Nikko Securities Inc. for Kabutocho Nikko Building, with the scheduled date of termination being November 30, 2012. The ratio of the
portion of termination to the portfolio total leased floor area as of the end of the fiscal period under review is 2.4%.

Leasing Management in View of the Leasing Market Environment
The Investment Corporation believes that the mid-sized office building market tends to be less volatile in a weakening leasing environment.
This is because the market has a broad base of potential tenants as well as tenants with a variety of lease needs. We believe that the mid-sized
office buildings market in the Tokyo Metropolitan Area, which is a primary investment focus area for the Investment Corporation, is thelargest market in terms of demand due to the economic scale of the Tokyo Metropolitan Area and due to the many middle-market and smalland medium-sized enterprises that are candidates for tenancy.
In view of the sudden deterioration of the economy since autumn 2008 and the accompanying weak trends continuing in the leasing market,-5-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

the Investment Corporation adopts a basic policy for tenant leasing of endeavoring to maximize revenues for the medium-to long-term while
maintaining occupancy ratios.
We will also maintain close relations with brokers and seek out potential demand while according to plan implement repair work such as
upgrading of air-conditioning systems and renewal of common areas in order to maintain and improve the competitiveness of office buildings.
Furthermore, not only will we differentiate our properties from competing properties and find new customers, we will aim to maintain andimprove the satisfaction of existing tenants through attentive measures of office building management such as conducting customer
satisfaction surveys as a service to existing tenants.
One reason why the Investment Corporation was able to conduct such leasing management was because it entrusts all its property
management duties to the Asset Management Company, and it has an established structure that enables it to take into account future trends ofthe leasing market in advance and swiftly respond to market changes.
Change in Occupancy Ratio
The average occupancy ratio of office buildings that the Investment Corporation owns in the Tokyo Metropolitan Area was maintained atover 95% at the end of the seventh fiscal period (fiscal period ended October 31, 2008) up to the end of the tenth fiscal period (fiscal period
ended April 30, 2010) through a flexible leasing policy responding promptly to the market trends mentioned above. The fiscal period underreview (fiscal period ended April 30, 2012) continued with a difficult leasing environment. Nevertheless, the occupancy ratio of theInvestment Corporation’s office buildings in the Tokyo Metropolitan Area reached the 96% level as of the end of the fiscal period underreview and the occupancy ratio of office buildings overall rose to 95.1%, an increase of 0.8% compared to the end of the previous fiscal
period. Furthermore, the occupancy ratio was 100% for 48 out of 76 office buildings that the Investment Corporation owns.
<Changes in Occupancy Ratio (Note) for Total Office Buildings, Tokyo Metropolitan Area, Other Regional Areas and Portfolio>
Office Buildings
Total

Tokyo Metropolitan Area

Tenth Fiscal Period
94.0％(As of April 30, 2010)
Eleventh Fiscal Period
93.3％(As of October 31, 2010)
Twelfth Fiscal Period
94.2％(As of April 30, 2011)
Thirteenth Fiscal Period
94.3％(As of October 31, 2011)
Fourteenth Fiscal Period
95.1％(As of April 30, 2012)
Note: Occupancy ratios are rounded to the first decimal place.

Other Regional Areas

Portfolio

95.7％

88.2％

94.4％

94.6％

89.0％

93.6％

95.5％

90.4％

94.6％

95.7％

90.2％

94.7％

96.6％

91.4％

95.4％

C. Capital Acquisition(a) Investment Corporation Bonds
The Investment Corporation issued the Fourth Series Unsecured Investment Corporation Bonds (totaling ¥1,500 million and maturing in 5.5
years) on March 8, 2012, and used the procured funds as a portion of source of funds to repay the First Series Unsecured Investment Corporation
Bonds which matured on March 15, 2012. As a result, the outstanding investment corporation bonds as of the end of the fiscal period underreview (fiscal period ended April 30, 2012) totaled ¥6,000 million.
(b) Status of Borrowings
During the fiscal period under review (fiscal period ended April 30, 2012), the Investment Corporation undertook borrowings of ¥31,900 million(¥24,400 million in long-term borrowings and ¥7,500 million in short-term borrowings (Note 1)) to acquire additional assets and ¥8,200 million(¥7,000 million in long-term borrowings and ¥1,200 million in short-term borrowings (Note 1)) to repay borrowings that matured during the fiscal
period. In addition to the issuance of investment corporation described above (a), the Investment Corporation undertook additional borrowings of¥7,300 million in long-term borrowings to repay the First Series Unsecured Investment Corporation Bonds. Details are provided as follows:
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date. However,the borrowings whose period until repayment date have surpassed one year because the repayment date one year from the drawdown date is not abusiness day and for which the repayment date has been moved to the following business day are included in short-term borrowings.
Long-term borrowings refer to borrowings with a period of more than one year from the drawdown date to the repayment date. The sameclassification criteria apply to other borrowings listed below.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)<Borrowings during the Fourteenth Fiscal Period>
LenderClassification

Mitsubishi UFJ Trust and Banking Corporation

Term Loan 65-A

Aozora Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited (Note2)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Development Bank of Japan Inc.

Last Repayment Date

December 26, 2011

October 31, 2012

December 26, 2011

October 31, 2014

December 26, 2011

October 31, 2014

December 26, 2011

October 30, 2015

December 26, 2011

October 30, 2015

December 26, 2011

October 31, 2016

2,000
Term Loan 65-B

Development Bank of Japan Inc.

2,000

Drawdown
Date

1,500

Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.

BorrowingAmount(Millions of Yen)
4,000

2,000
1,000

Term Loan 65-C
Term Loan 65-D
Term Loan 65-E
Term Loan 65-F

2,500
2,500
2,000
2,500
2,500
2,000

Term Loan 65-G

2,500

December 26, 2011

October 31, 2016

Sumitomo Mitsui Banking Corporation

Series 67

2,500January 10, 2012

January 29, 2016

Mitsubishi UFJ Trust and Banking Corporation

Series 68-A

1,200

January 31, 2012

January 31, 2013

Mitsubishi UFJ Trust and Banking Corporation

Series 68-B

1,500

January 31, 2012

January 30, 2015

March 12, 2012

March 12, 2014

Aozora Bank, Ltd.

2,250

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.

Term Loan 66-L

Sumitomo Mitsui Trust Bank, Limited (Note2)

1,800
1,800
450

Mizuho Bank, Ltd.

Series 69

1,000March 12, 2012

March 12, 2015

The Bank of Fukuoka, Ltd.

Series 70-A

500

March 28, 2012

March 28, 2017

March 28, 2012

March 28, 2019

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.

Series 70-B

1,400
1,000

Sumitomo Mitsui Trust Bank, Limited (Note2)

Series 71

2,000March 30, 2012

September 30, 2015

Aozora Bank, Ltd.

Series 72

1,000April 27, 2012

October 30, 2015-

47,400

-

-

Total

Note 2: The Chuo Mitsui Trust and Banking Co., Limited merged with Chuo Mitsui Asset Trust and Banking Co., Limited and The Sumitomo Trustand Banking Co., Ltd. (the company surviving the absorption-type merger) as of April 1, 2012. With this merger, The Sumitomo Trust andBanking Co., Ltd. changed its trade name to Sumitomo Mitsui Trust Bank, Limited. Same applies below.

As of the end of the thirteenth fiscal period (fiscal period ended October 31, 2011), the balance of borrowings amounted to ¥97,414
million (¥87,214 million in long-term borrowings and ¥10,200 million in short-term borrowings). As a result, the balance ofinterest-bearing debt amounted to ¥137,372.5 million as of April 30, 2012, comprising ¥131,372.5 million in borrowings (¥116,672.5
million in long-term borrowings and ¥14,700 million in short-term borrowings) and ¥6,000 million in investment corporation bonds.
As of April 30, 2012, ¥17,500 million out of ¥31,300 million of long-term borrowings, which have floating interest rates, have been
hedged and fixed by utilizing interest-rate swap agreements. In addition, the long-term debt ratio (Note 3) was 89.3% and the long-term
fixed interest debt ratio (Note 4) was 79.3%.
Note 3: Long-term debt ratio＝（Balance of long-term borrowings＋Balance of investment corporation bonds）÷（Total borrowings＋Balance ofinvestment corporation bonds）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）The balance of long-term fixed interest rate borrowings includes borrowings withfloating interest rates effectively fixed by utilizing interest-rate swap agreements. Long-term fixed interest debt ratio is rounded to the nearest
first decimal place.

Furthermore, the Investment Corporation made new borrowings from Mizuho Bank, Ltd. and The Bank of Fukuoka, Ltd., aiming to
expand the scope of financial institutions. The balance of borrowings according to financial institutions as of October 31, 2011 andApril 30, 2012 are as follows:-7-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

LenderThirteenth Fiscal Period(as of October 31, 2011)

Twelfth Fiscal Period(as of April 30, 2011)(Millions of Yen)

(Millions of Yen)

Ratio as of End of
Fourteenth Fiscal Period(%) (Note 4)

Sumitomo Mitsui Banking Corporation

22,434.0

31,992.5

24.4

Development Bank of Japan Inc.

16,430.0

26,667.5

20.3

Aozora Bank, Ltd.

13,950.0

19,687.5

15.0

Sumitomo Mitsui Trust Bank, Limited

15,800.0

17,725.0

13.5

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

11,300.0

16,300.0

12.4

Mitsubishi UFJ Trust and Banking Corporation

7,200.0

9,200.0

7.0

Resona Bank, Ltd.

5,300.0

7,300.0

5.6

Mizuho Trust & Banking Co., Ltd.

1,000.0

1,000.0

0.8-

1,000.0

0.8Mizuho Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Norinchukin Bank
Total

-

500.0

0.4

4,000.0--

97,414.0

131,372.5

100.0Note 5: Percentages are rounded down to the nearest first decimal place.

(c) Diversification of Debt Maturities
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates and extending borrowing
periods for its interest-bearing debt. In addition, the total balance of interest-bearing debt as of the end of the fourteenth fiscal period(fiscal period ended April 30, 2012) maturing in each fiscal period is as follows:
Balance of Interest-Bearing Debt Maturing in Each Fiscal Period of the Investment Corporation (Note)（Billions of Yen）

Investment corporation bonds

Long-term borrowings

Short-term borrowings

25

20

5.2

15

1.5

10

20.6
17.5

13.5

14.5

13.1

5

7.3

0

1.2

15.8

9.8
7.0

3.0
1.5

0.5

3.0

2.4

15th period 16th period 17th period 18th period 19th period 20th period 21st period 22nd period 23rd period 24th period 25th period 26th period 27th period 28th period

Note: Amounts are rounded to the first decimal place.

(d) Status of Credit Rating
The status of the credit ratings as of April 30, 2012 is as follows:
Credit Rating Agency
Details of the Ratings
Rating of Long-Term Senior Debts
Ratings on Bonds
Japan Credit Rating Agency, Ltd.
Rating of Shelf Registration
OutlookA
Positive(e) Status of Shelf Registration
The Investment Corporation filed a debt shelf registration statement on February 4, 2011. Details are as follows:
Investment Corporation Bond
Planned Issue Amount¥100,000,000,000
Planned Issuance Period February 15, 2011 to February 14, 2013
Acquisition funds for specified assets, repayment of borrowings, repayment ofinvestment corporation bonds, refund of lease and guarantee deposits, funds to pay for repairs andUse of Funds
maintenance, working capital, etc.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

The Investment Corporation’s First Series Unsecured Investment Corporation Bonds of ¥9,000,000,000 and Second Series Unsecured
Investment Corporation Bonds of ¥3,000,000,000 were issued in March 2007 based on the debt shelf registration statement filed in
February 2007. In addition, the Investment Corporation’s Third Series Unsecured Investment Corporation Bonds of ¥1,500,000,000 and
Fourth Series Unsecured Investment Corporation Bonds of ¥1,500,000,000 were issued based on the debt shelf registration statement
filed in February 2011 in September 2011 and March 2012, respectively.
On February 4, 2011, the Investment Corporation filed an equity shelf registration statement again to continue to secure opportunity for
flexible equity financing. Details are as follows:
Investment Unit Certificate
Primary Offering
Secondary Offering
Planned Issue Amount¥100,000,000,000¥15,000,000,000
February 15, 2011 to
February 15, 2011 toPlanned Issuance Period
February 14, 2013
February 14, 2013
Acquisition funds for specified assets, repayment of Not applicableborrowings, repayment of investment corporation
Use of Funds
bonds, refund of lease and guarantee deposits, funds topay for repairs and maintenance, working capital, etc.
There has not yet been any primary offering or secondary offering based on the abovementioned investment unit certificate shelfregistration.
D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥9,090 million, operating
income of ¥4,086 million, ordinary income of ¥2,551 million and net income of ¥2,540 million for its fourteenth fiscal period (fiscal period endedApril 30, 2012).
Concerning cash distributions, the Investment Corporation makes sure to make distributions by applying Article 67-15 of the Special Taxation
Measures Law. In addition, for the fiscal period under review (fiscal period ended April 30, 2012), a portion of the amount booked to internal
reserve in the reserve for reduction entry pursuant to the “Special Provisions for Taxation in the Event of Advance Acquisition of Land, etc. in2009 and 2010” (Article 66-2 of the Special Taxation Measures Law) (¥143 million) is reversed, and generally all of the amount where thereversal of reserve for reduction entry is added to its unappropriated retained earnings was distributed to unitholders, yielding ¥9,364 per unit.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Outlook
A. Investment Environment
The Japanese economy is expected to mark a more certain recovery as reconstruction-related demand from the earthquake disaster materializes.
On the other hand, uncertainties surrounding the European debt crisis are again heightening, and due to fluctuations in financial capital market,
downturn of overseas economies and such against this backdrop, there is a risk that the Japanese economy will receive downward pressure. Also,
there is a need to continually pay attention to factors including electricity supply constraints, the impact of rising crude oil prices and also theimpact of deflation.
Concerning the real estate market conditions, according to the “Trend Report of the Prices of Intensively Used Land in Major Cities” (survey
period: January 1, 2012 to April 1, 2012) announced by the Ministry of Land, Infrastructure, Transport and Tourism on May 30, 2012, land
prices rose in 22 districts (in contrast to 16 districts in the previous survey), remained unchanged in 80 districts (in contrast to 70 districts in theprevious survey ) and fell in 48 districts (in contrast to 64 districts in the previous survey) among the high-level use districts (150 commercial andresidential districts) of major cities in Japan. Districts where prices remained the same continued to be high at 53%, and the number of districts inwhich prices rose or remained unchanged increased from 57% in the previous survey to 68%.
In the office building leasing market, the vacancy rates are expected to continue at a high level given the impact of office buildings being suppliedin fiscal 2012, but are believed to gradually move toward improvement going forward as completions of new supplies are concentrated in thefirst half of the fiscal year. On the other hand, a severe situation will continue until vacancy rates move out of their current levels with thecompetition over solicitation of tenants, but due to materialization of reconstruction demand and expansion of office demand from recovery ofcorporate results, it is believed that rental demand will be steady.
In the real estate transaction market, investment into Japan has been resumed recently, not only by J-REITs and developers but also by foreign
firms and overseas funds, given the expectations of a Japanese macro-economic recovery and the debt procurement environment continuing tostay robust. As such, the Investment Corporation believes that the number of office building transactions will increase over time.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting dynamic and flexible investment that accurately reflects the trends and ensuresa timely response, and developing a diversified investment portfolio focused on a three-point investment methodology based on property type,area and size. From this standpoint and in light of the investment environment described above (the Japanese economy, land price trends, leasing
market for office buildings, real estate transaction market, etc.), the Investment Corporation creates a property investment strategy, existing
property management strategy, and financial strategy in a dynamic and flexible manner as set forth below.
(a) New Property Investment Strategy and Sales Policy
The Investment Corporation aims for further expansion of its asset size, with the goal of “forming a firm portfolio focusing on mid-sized officebuildings” and to become the “No. 1 J-REIT for mid-sized office buildings.” The Investment Corporation believes that keeping office buildingsin the Tokyo Metropolitan Area, as its focus while 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.
The Investment Corporation believes that it holds a competitive advantage over other real estate acquiring firms as it has laid a foundation forrenewed external growth ahead of many other real estate firms since November 2009, has resumed property acquisitions through public
offerings and new borrowings, holds a portfolio surpassing ¥280 billion, and has a track-record in investing in and managing mid-sized officebuildings and financial stability.
Moreover, when acquiring assets, bearing in mind such matters as the securing of property pipelines in the future and revenues during the period,
the Investment Corporation is striving to diversify investment methods also taking into consideration the balance of financing sources, such as
fund-type investment through investments in silent partnerships and real estate backed securities, and is also strengthening the sourcing of
information on portfolio deals.
The Investment Corporation aims to acquire properties that should contribute to increased profitability of its portfolio, fully considering the rental
NOI yield (Note) of the portfolio it owns, the weighted average costs and the significance and impact of the properties on its growth strategies.
In selling properties, the Investment Corporation will examine the sale of properties individually in considering the use of funds for replacementof assets through property acquisition or fund-type investments. Of this, concerning central urban retail properties and residential properties, theInvestment Corporation will not only refrain from conducting new investments in principle, but will also place such properties on the top of thelist 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 individually by considering the current profitability, revenue projections that take into
account future market trends, building age, area and property size, among other factors, and also in light of the significance of the property’s
presence in the portfolio.
Note: The leasing NOI yield is a weighted-average figure of the annualized yield of leasing NOI（= Rental revenues - Rental expenses + Depreciation expenses forthe period）against the acquisition price, in accordance with the operating period.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)(b) Existing property management strategy
The Investment Corporation has appointed the Asset Management Company as its sole property management company for the entire portfolio
as of the end of the fourteenth fiscal period (fiscal period ended April 30, 2012). In establishing a single point of contact for all matters relating toproperty management activities, the Investment Corporation strives to secure consistent policies, specifications and procedures along withensuring swift and quality service.
Taking into consideration economic and real estate market trends, the Investment Corporation adopts a tenant-oriented approach to its leasing
activities with aims of ensuring a timely and flexible response as well as optimal tenant satisfaction. Accordingly, the Investment Corporation will
aim to maintain / increase cash flow by offering office environments with high tenant satisfaction. Based on the aforementioned, the AssetManagement Company undertakes property management activities as follows:・Identify degree of satisfaction through use of CS surveys (customer satisfaction = tenant satisfaction)
・Take measures to maintain and raise competitiveness of properties
・Tailor leasing management according to the market environment
・Apply careful control of management and operating costs by taking advantage of portfolio size
・Ensure appropriate response to relevant laws and regulations
・Develop a proactive environmental response
Identify degree of tenant satisfaction through use of CS surveys
The Investment Corporation recognizes each tenant as a key customer and strives to enhance customer satisfaction and raise the competitiveness of
its properties as the means to maintain and increase earnings.
The Investment Corporation conducted a customer satisfaction survey (“CS Survey”) through J.D. Power Asia Pacific, Inc., an internationallyrecognized company that engages in customer satisfaction evaluation, to better understand the needs of its tenants and take steps to respond to theirpreferences. As a part of this survey the administration officers of each tenant and tenant employees were asked to respond to many questions
concerning buildings and facilities as well as operating and management services. The Investment Corporation has conducted CS Surveys during
the second fiscal period (fiscal period ended April 30, 2006), the fifth fiscal period (fiscal period ended October 31, 2007), the ninth fiscal period(fiscal period ended October 31, 2009) and thirteenth fiscal period (fiscal period ended October 31, 2011) which covered 69 of its properties,.
Details of the Fourth CS Survey
Target respondent for the survey: The administration officers of each tenant and tenant employees of the 68 office buildings and one central
urban retail property.
Survey population / Response rate: 640 administration officers / 566 collected (response rate of 88%)3,730 tenant employees / 3,175 collected (response rate of 85%)
Examples of questions: Building location and environment, external façade, lease space areas (air conditioning system, lighting, ventilation,
OA compliant etc.), common use area (elevators, etc. facilities), the service of property manager and person in charge of the building
maintenance company, status of cleaning, security, fire prevention and construction conducted during the period, powering savings, etc.
The comprehensive satisfaction rating results for the Third and Fourth CS Survey were as follows.
＜Comprehensive Satisfaction Rating＞
Satisfied

Slightly Satisfied

Slightly
Dissatisfied

Neither

Dissatisfied

Unknown

Fourth CS Survey

23％

52％

19％

5％

1％

1％

Third CS Survey

19％

49％

22％

6％

1％

3％

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

Following the third survey, the Investment Corporation formulated and is implemented a guideline concerning management for soft services
such as tenant services. This resulted in better evaluations in the fourth CS Survey compared to the previous survey results from administration
officers and employees of respective tenants, both in terms of comprehensive degree of satisfaction and willingness for continued lease, which
confirmed that there was a certain level of evaluation by tenants on the improvement measures. Also, by analyzing and inspecting various
opinions and requests from tenants received through the fourth survey, we will respond to tenants by formulating action plans for individual
properties.
The Investment Corporation will continue to listen to the voices of tenants, its customers, and will endeavor to conduct improvement activities after
grasping its strengths and problems both in terms of hardware and soft services for each property, in pursuit of maintaining and enhancing tenant-11-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

satisfaction.
By periodically conducting such surveys, the Investment Corporation will aim to enhance customer satisfaction, generate improvements incompetitiveness of properties and asset values, improve profitability and aim to maintain and increase cash flow.
Take measures to maintain and raise competitiveness of properties
The Investment Corporation aims to provide attractive mid-sized office buildings in order to maintain and enhance portfolio value and rental
revenues.
The Investment Corporation believes that the quality of mid-sized office buildings in Japan vary considerably depending on the nature of theowner. For example, a building owned by an individual or small company that owns only one or a few buildings may not have the resources toprovide high-quality maintenance. Furthermore, when a building is owned by a large company, property management is often dictated by thatcompany’s priorities and does not necessarily correspond to tenant needs or satisfaction.
The Investment Corporation will implement operation and management in close contact with the actual properties and further enhance themanagement level. Some specific examples of this are the installation of public wireless LAN services (installed at 53 properties located within
NTT East’s service area as of May 31, 2012) and installation of automated external defibrillators (AEDs) (installed at 65 properties as of May 31,2012) in consideration of business continuity plans (BCP) and its corporate social responsibilities (CSR). We will aim to maintain and improve
competitiveness of properties and asset value through implementation of such measures to enhance value by carrying out operation andmanagement which spans the portfolio.
Also, the Investment Corporation will utilize the size of the portfolio to the utmost as has been done before and implement construction that willlead to maintaining and increasing competitiveness of properties and asset value while reducing the cost of construction through bulk orders, etc.
Moreover, the following are changes in the actual costs and budgets of the repairs, maintenance and renovation plans (construction budget) andchanges in depreciation expenses.
D e p r e c i a t i o n C o n s t r u c t i o n ・b
a cut du ga el t c o s t（M i l l i o n s o f Y e n )

1,800
1,500

1,200

900
1 , 4 2 9

1 , 4 5 1

1 , 4 7 7

1 , 5 7 8
1 , 4 4 0

1 , 4 0 6

1 , 2 7 5600

1 , 0 8 3

1 , 0 3 0

300

571

698
441

1 , 5 9 9

1 , 5 9 3

1 , 4 4 2
1 , 2 1 3

826

462

0
8 t h P e r i 9o tdh P e r i1o0dt h P e r1i 1o tdh P e r1i 2o tdh P e r1i 3o tdh P e r1i 4o tdh P e r1i 5o tdh P e r1i 6o tdh P e r i o dResultResultResultResultResultResultResult Budget Budget

Tailor leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary target of the Investment Corporation’s investment, are that many of thetenants generally tend to be small- and medium-sized enterprises and turnover ratios are relatively high. Therefore, in the leasing aspect, theInvestment Corporation implements leasing activities in a 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 the occupancy ratio byimplementing dynamic and flexible leasing activities through the sharing of information closely with leasing brokers, holding of previews,
marketing directly to corporations, utilizing guarantee companies and other measures while closely watching market conditions and timing ofchanges going forward.
Apply careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation utilizes the scale merits of owning many properties and the negotiating strength acquired through its management
track record to reduce building maintenance costs. The Investment Corporation has managed to reduce trust fees, etc., as well as reduce building
maintenance expenses mainly for office buildings by reviewing the specific elements of building maintenance. In addition, the Investment
Corporation has managed to improve the efficiency of content of maintenance and also managed to reduce costs by consolidating the building
maintenance company for office buildings in Tokyo.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

The Investment Corporation will carefully control the quality of property management and operating costs and reduce building maintenance andoperating costs by taking advantage of the portfolio size in building maintenance costs and construction bidding.
Ensure appropriate responses to relevant laws and regulations
The Investment Corporation will gather information on the Building Standards Law and other relevant laws and regulations and any futurerevisions, in a timely manner and will respond as necessary while considering compliance.
Develop a proactive environmental response
The Investment Corporation was designated as a specified corporation pursuant to the Act on the Rational Use of Energy on October 1, 2010.
The Investment Corporation will research on energy saving and environmental friendliness of mid-sized office buildings, develop medium- tolong-term energy saving plans and reduction targets, and proactively institute measures in terms of both hardware (buildings and facilities) andsoft services (operating and management services) in an aim to ensure the simultaneous pursuit of return on investment and social benefits.
Furthermore, in November 2011, the Investment Corporation started to disclose its environmental policies on its website to demonstrate its
endeavors in approaching environmental issues.
(c) Financial Strategy (Debt Financing)
The Investment Corporation will seek to diversify its debt repayment period to reduce refinancing risk. Furthermore, the Investment Corporation
will pursue stable financial management through such measures as continuing to maintain long-term debt ratios above prudent levels.
Given the ongoing improvement in the debt procurement environment since 2010, the Investment Corporation will continue its endeavors tonegotiate better borrowing terms. In order to pursue stable financial management, the Investment Corporation will continue to aim to keep theratio of interest-bearing debt to total assets (LTV) at less than 45% as a rule. However, it will also remain open to the option of increasing LTV tothe upper 40% level in the event of debt financing conducted for the purpose of acquiring competitive properties or otherwise. The Investment
Corporation will work to control the ratio of interest-bearing debt to total assets in the same conservative manner as before.
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.
(d) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aim of promptly
providing a wide range of relevant information to investors. In specific terms, the Investment Corporation provides information through theTimely Disclosure Network System (TDnet), which is a system operated by the Tokyo Stock Exchange, as well as press releases and its Web site
(URL: http://www.kdx-reit.com/eng/ ).
(3) Important Subsequent Events
The important subsequent events following the close of the fourteenth fiscal period (fiscal period ended April 30, 2012) are as follows.
Sales of Property
The Investment Corporation has concluded a purchase and sales agreement on February 23, 2012 and sold the following property on
May 11, 2012.
KDX Omori Building (Office Building)
Property Name
Trust beneficiary interest in real estate
Type of Assets for Sale
Location (Address)
1-6-8 Omori-kita, Ohta-ku, Tokyo
Buyer
Tokyo Property Service Co., Ltd. (Note)
Sales Price¥4,200 million
Capital gains from the sale are estimated to be ¥597 million for the fifteenth fiscal period. The aforementioned sales price excludes sales costs, adjusted
amounts for property and city-planning tax, consumption tax, regional consumption tax, etc.
Note: Tokyo Property Service Co., Ltd. has changed its company name from OOIKOUGYOU CO., LTD. on March 16, 2012.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Outlook
Forecasts for the fifteenth fiscal period (May 1, 2012 to October 31, 2012) are presented as follows. Please refer to the “Preconditions andAssumptions for the Fiscal Period Ending October 31, 2012” below for factors that underpin forecasts.
Operating Revenues
Operating Income
Ordinary Income
Net Income
Distribution per Unit
Distribution in Excess of Earnings per Unit

¥9,882 million¥4,454 million¥2,987 million¥2,985 million¥9,400¥0Note: Forecast figures are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income and distribution per unit may differ
significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does not guarantee payment of the forecast distribution per unit.

“Preconditions and Assumptions for the Fiscal Period Ending October 31, 2012”
Preconditions and Assumptions
Calculation Period The fifteenth fiscal period: May 1, 2012 to October 31, 2012 (184 days)
Property Portfolio
 Forecasts are based on the 82 properties held as of June 12, 2011, and the number of properties remaining
unchanged up to and including the end of the fifteenth fiscal period.
 The Investment Corporation owns TMK preferred equity securities other than the abovementioned properties.
 The property portfolio may change due to a variety of factors in the future.
Operating Revenues
 Rental revenues are estimated based on valid leasing agreements as of June 12, 2012 and by considering
variable factors, such as seasonal factors against the backdrop of historical performance, as well as leasing
conditions, such as the recent deterioration of real estate market conditions, in addition to the difference in
number of operating days due to movements in existing investment assets.
 As the dividends for the owned TMK preferred equity securities is scheduled will be confirmed in December
2012 or later, no dividend income is expected for the fiscal period ending October 31, 2012.
 The Investment Corporation has completed settlement of the sale of KDX Omori Building on May 11, 2012,
and capital gains from the sale are estimated to be ¥597 million.
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments from tenants.
Operating Expenses
 Property-related expenses other than depreciation are based on the difference in number of operating days due
to movements in existing investment assets and historic expenses, adjusted to reflect expense variables
including seasonal factors.
 An amount of ¥933 million has been assumed for property management fees and facility management fees
(property management and building maintenance fees, etc.).
 An amount of ¥837 million has been assumed for taxes and public dues (property tax and city-planning tax,etc.).
 An amount of ¥1,599 million has been assumed for depreciation expense.
 An amount of ¥158 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
management company for each property and amounts considered essential for each period. Actual repairs,
maintenance and renovation expenses for each fiscal period may, however, differ significantly from estimatedamounts due to unforeseen 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.
Non-Operating Expenses
 The Investment Corporation is amortizing unit issuance costs over a period of three years using the straight-line
method.
 Interest payable (including financing related expenses etc.) of ¥1,418 million is assumed for the fourteenthfiscal period.
Extraordinary Profit/Loss Extraordinary profit/loss is not assumed.
Debt Financing and Investment  The balance of the borrowings and the investment corporation bonds as of June 12, 2012 are ¥131,372.5
Corporation Bonds
million and ¥6,000 million, respectively.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Debt Financing and Investment
Corporation Bonds

 Of the borrowings as of June 12, 2012, a total of ¥18,651.5 million (short-term borrowings: ¥13,500 million

and long-term borrowings: ¥5,151.5 million) in borrowings are due during the fifteenth fiscal period. However,all borrowings are presupposed to be refinanced excluding ¥271.5 million of the partial payment.

Investment Units Issued andOutstanding The number of investment units issued and outstanding as of June 12, 2012 is 286,550 units. Forecasts are
based on the assumption that the number of investment units issued and outstanding shall remain unchanged
for the fifteenth fiscal period.

Distributions per Unit Distributions per unit are calculated in accordance with the distribution policy outlined in the Investment
Corporation’s Articles of Incorporation. Forecasts are based on the assumption that pursuant to the “Special
Provisions for Taxation in the Event of Advance Acquisition of Land, etc. in 2009 and 2010” (Article 66-2 ofthe Special Taxation Measures Law), a portion of the estimated amount (¥291 million) of the capital gains fromthe sale of KDX Omori Building mentioned above (¥597 million) is retained as the reserve for reduction entry
within the scope that it will not exceed 80% of gain on sale of land and will not conflict with the conduit
requirements stipulated in Article 67-15 of the Special Taxation Measures Law and the Investment Corporation
will distribute the amount remaining after deducting the provision of reserve for reduction entry fromunappropriated retained earnings.
 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 the incidence ofmajor unforeseen renovation expense.

Distributions in Excess of
Earnings per Unit
Other

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

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

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

Fourteenth Fiscal Period(As of October 31, 2011)(As of April 30, 2012)ASSETS
Current assets
Cash and deposits

12,349,209

6,924,146

Cash and deposits in trust

5,989,325

7,095,792

Accounts receivable-trade173,772

176,474

Prepaid expenses

74,20467,014-

220,729

3,359

3,432

18,589,872

14,487,589

Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings

14,835,908

14,959,843

Accumulated depreciation-1,932,075-2,178,129

Buildings, net

12,903,832

12,781,714

Structures

22,461

23,001

Accumulated depreciation-5,745-6,447Structures, net

16,715

16,553

Machinery and equipment

354,877

355,857

Accumulated depreciation-83,859-95,707

Machinery and equipment, net

271,017260,149

Tools, furniture and fixtures

78,18578,295

Accumulated depreciation-21,378-24,669

Tools, furniture and fixtures, net

56,80753,625

Land

29,104,205

29,104,205

Buildings in trust *2

74,239,182

81,938,473

Accumulated depreciation-11,002,737-12,252,860

Buildings in trust, net

63,236,445

69,685,613

232,442

245,635

Structures in trust
Accumulated depreciation-80,745-88,670

Structures in trust, net

151,696

156,964

Machinery and equipment in trust

999,616

1,184,280

Accumulated depreciation-456,979-494,371

Machinery and equipment in trust, net

542,637

689,909

Tools, furniture and fixtures in trust

327,986

351,383

Accumulated depreciation-168,348-185,982

Tools, furniture and fixtures in trust, net

159,638

165,401

148,116,665

172,834,060

Land in trust
Construction in progress in trust

1,874

6,894

254,561,536

285,755,092

Leasehold right

285,350

285,350

Leasehold right in trust

74,07973,304

Total property, plant and equipment
Intangible assets

Right of using water facilities in trust
Total intangible assets

790

671

360,219359,326-

896,655

Investments and other assets
Investment securities-16-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
10,00010,000

Lease and guarantee deposits
Lease and guarantee deposits in trust

123,692

123,712Long-term prepaid expenses

1,185,942

1,528,273

Total investments and other assets

1,319,635

2,558,640

256,241,390

288,673,059

Investment corporation bond issuance costs

30,90639,405Investment unit issuance expenses

111,272

83,990Total deferred assets

142,178

123,396

274,973,440

303,284,044

Total noncurrent assets
Deferred assets

Total assets(Thousands of Yen)
Thirteenth Fiscal Period

Fourteenth Fiscal Period(As of October 31, 2011)(As of April 30, 2012)

Liabilities
Current Liabilities
Accounts payable556,104

604,452

Short-term loans payable

10,200,000

14,700,000

Current portion of investment corporation bond

9,000,000-

Current portion of long-term loans payable

13,850,000

11,880,000

Accounts payable-other

246,331

170,672

Accrued expenses

191,325

205,540

Income taxes payable

1,352

1,385

Accrued consumption taxes

80,236

13,372

Advances received

1,281,806

1,887,967

Deposits received

2,814

27,249Provision for loss on disaster

2,333

-

35,412,305

29,490,639

Total current liabilities
Noncurrent liabilities
Investment corporation bond

4,500,000

6,000,000

Long-term loans payable

73,364,000

104,792,500

Tenant leasehold and security deposits

1,556,321

1,541,929

Tenant leasehold and security deposits in trust

9,868,360

11,395,973

Total noncurrent liabilities

89,288,681

123,730,402

124,700,986

153,221,042

147,153,820

147,153,820

65,795

368,795

Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusReserve for reduction entry
Total voluntary reserve

65,795

368,795

Unappropriated retained earnings(undisposed loss)

3,052,837

2,540,386

Total surplus

3,118,633

2,909,182

150,272,453

150,063,002

150,272,453

150,063,002

274,973,440

303,284,044

Total unitholders' equity
Total net assets *1
Total liabilities and net assets-17-

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

Fourteenth Fiscal Period

May 1, 2011 toNovember 1, 2011 to

October 31, 2011

April 30, 2012

Operating revenue
Rent revenue-real estate *1

7,475,270

8,071,923

Other lease business revenue *1

1,023,679

1,018,730

Gain on sales of real estate properties *2

545,281-

Total operating revenue

9,044,231

9,090,653

Expenses related to rent business *1

3,961,611

4,284,756

Asset management fee

487,405

491,072

Directors' compensation

6,300

6,669

Asset custody fee

25,52526,373Administrative service fees

56,32654,352

Audit fee

10,80010,800Operating expenses

Other operating expenses

70,938130,282

Total operating expenses

4,618,908

5,004,307

4,425,323

4,086,345

Interest income

1,063

674

Dividends and redemption-prescription

1,176

1,714

Interest on refund

3,512

-

-

2,333

5,753

4,723

Interest expenses

919,211

948,755

Interest expenses on investment corporation bonds

117,176

110,175

Borrowing related expenses

298,043444,046

Operating income
Non-operating income

Reversal of Provision for loss on disaster
Total non-operating income
Non-operating expenses

Amortization of investment corporation bond issuance costs

6,880

9,000

Amortization of investment unit issuance expenses

27,281

27,281

Other

22,075-

1,390,668

1,539,259

3,040,407

2,551,809

Gain on donation of noncurrent assets

13,970-Total Extraordinary income

13,970-Litigation settlement-

10,000Total Extraordinary loss-

10,000

Income before income taxes

3,054,377

2,541,809

Income taxes-current

1,570

1,520

Income taxes-deferred-10

6

Total income taxes

1,560

1,526

3,052,817

2,540,282

20

103

3,052,837

2,540,386

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)-18-

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

Fourteenth Fiscal Period

May 1, 2011 toNovember 1, 2011 to

October 31, 2011

April 30, 2012

Unitholders' equity
Unitholders' capital *Balance at the start of current period

133,129,755

147,153,820

14,024,065-

14,024,065-

147,153,820

147,153,820

65,79565,795

Provision of reserve for reduction entry-

303,000

Total changes of items during the period-

303,000

65,795

368,795

65,79565,795

Provision of reserve for reduction entry-

303,000

Total changes of items during the period-

303,000

65,795

368,795

2,310,063

3,052,837--303,000

Distribution from surplus-2,310,043-2,749,733

Net income

3,052,817

2,540,282

Total changes of items during the period

742,774-512,451

3,052,837

2,540,386

2,375,859

3,118,633--

Distribution from surplus-2,310,043-2,749,733

Net income

3,052,817

2,540,282

Total changes of items during the period

742,774-209,451

3,118,633

2,909,182

135,505,614

150,272,453

Issuance of new investment units

14,024,065-

Distribution from surplus-2,310,043-2,749,733

Net income

3,052,817

2,540,282

Changes of items during the period
Issuance of new investment units
Total changes of items during the period
Balance at the end of current period
Surplus
Voluntary reserve
Reduction entry
Balance at the start of current period
Changes of items during the period

Balance at the end of current period
Total Voluntary reserve
Balance at the start of current period
Changes of items during the period

Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the start of current period
Changes of items during the period
Provision of reserve for reduction entry

Balance at the end of current period
Total Surplus
Balance at the start of current period
Changes of items during the period
Provision of reserve for reduction entry

Balance at the end of current period
Total unitholders' equity
Balance at the start of current period
Changes of items during the period

Total changes of items during the period
Balance at the end of current period
Total net assets-19-

14,766,839-209,451

150,272,453

150,063,002

KENEDIX REALTY INVESTMENT CORPORATION (8972)
135,505,614
150,272,453

Balance at the start of current period
Changes of items during the period
Issuance of new investment units

14,024,065-

Distribution from surplus-2,310,043-2,749,733

Net income

3,052,817

2,540,282

Total changes of items during the period

14,766,839-209,451

150,272,453

150,063,002

Balance at the end of current period-20-

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

Fourteenth Fiscal Period(May 1, 2011 to October 31, 2011)(November 1, 2011 to April 30, 2012)

I. Retained earnings at the end of period

3,052,837,677

2,540,386,573-

143,000,000

II. Voluntary retained earnings (reversal)
Reversal of reserve for reduction entry

2,749,733,800

2,683,254,200(Distribution per Unit)
IV. Voluntary retained earnings (provision)(9,596)(9,364)

Provision for reserve for reduction entry

303,000,000-

103,877

132,373

In accordance with the policy depicted in Article

In accordance with the policy depicted in Article

35-1 of its Articles of Incorporation, the Investment

35-1 of its Articles of Incorporation, the Investment

Corporation determines that the amount ofCorporation determines that the amount of

distribution shall exceed the amount equivalent to

distribution shall exceed the amount equivalent to

90% of its distributable profit as stipulated in Article

90% of its distributable profit as stipulated in Article

67-15 of the Special Taxation Measures Law, and67-15 of the Special Taxation Measures Law, andshall be up to the amount of its profits as the ceiling.

shall be up to the amount of its profits as the ceiling.

Following this policy, the Investment Corporation

Following this policy, the Investment Corporation has

has decided that, of the amount remaining after thedecided that, based on the total amount for which thereserve for reduction entry as stipulated in Article

reversal of reserve for reduction entry is added to66-2 of the Special Taxation Measures Law isunappropriated retained earnings, it shall distributededucted from unappropriated retained earnings, it¥2,683,254,200, which is the maximum integral

shall distribute the maximum amount of retained

multiple to 286,550 units issued and outstanding as

earnings at the period-end, namely totaling

the distribution of earnings.

III. Total Distribution

V. Retained Earnings brought forward to thenext period
Method of calculating the distribution
amount¥2,749,733,800 to 286,550 units issued andoutstanding.

Procedures for the distribution of amounts
exceeding distributable income are outlined in Article

Procedures for the distribution of amounts

35-2 of the Investment Corporation’s Articles of

exceeding distributable income are outlined inIncorporation. In its fiscal period under review, theArticle 35-2 of the Investment Corporation’s
Articles of Incorporation. In its fiscal period underreview, the Investment Corporation has decided not
to distribute cash in excess of distributable profit.

-21-

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

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

Fourteenth Fiscal Period

May 1, 2011 toNovember 1, 2011 to

October 31, 2011

April 30, 2012

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

3,054,377

2,541,809

Depreciation and amortization

1,442,935

1,578,845

Amortization of long-term prepaid expenses

247,729

257,129

Interest income-1,063-674

Interest expenses

1,036,387

1,058,930

Amortization of investment unit issuance expenses

27,281

27,281

Amortization of investment corporation bond issuance expenses

6,880

9,000

-

10,000Gain on donation of noncurrent assets-13,970-

Decrease (increase) in accounts receivable-trade

12,639-2,701

Decrease (increase) in consumption taxes refund receivable

310,485-220,729

Decrease (increase) in prepaid expenses-19,290

7,189

Increase (decrease) in accounts payable

65,851-79

Increase (decrease) in accounts payable-other

8,563-30,285

Litigation settlement

28,955-66,863

Increase (decrease) in advances received-590,901

606,160

Increase (decrease) in deposits received-13,429

24,435

Loss on retirement of noncurrent assets

-

3,719

Increase (decrease) in accrued consumption taxes

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

5,122,100-

Decrease (increase) in long-term prepaid expenses-226,107-599,460

731-4,261

10,500,158

5,199,445

1,063

674

-1,037,432-1,044,715-28,598---10,000-1,171-1,3529,434,020

4,144,051-53,346-123,516-15,177,128-32,707,120--891,000

Other, net
SubtotalInterest income received
Interest expenses paid
Payments for loss on disaster
Litigation settlement paid
Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of investment securities
Proceeds from collection of lease and guarantee deposits in trust

669-

Payments of tenant leasehold and security deposits-40,773-52,281

Proceeds from tenant leasehold and security deposits

87,17751,438

Payments of tenant leasehold and security deposits in trust-643,261-848,057

Proceeds from tenant leasehold and security deposits in trust

1,123,447

2,443,258

Proceeds from withdrawal of time deposits

464,000-

Payments of restricted bank deposits in trust--131,124

Proceeds from restricted bank deposits in trust

100,40340,729--20-14,138,812-32,217,695

6,000,000

8,700,000

Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Increase in short-term loans payable-22-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Decrease in short-term loans payable-4,500,000-4,200,000

Proceeds from long-term loans payable

14,000,000

38,700,000

Repayment of long-term loans payable-18,801,500-9,241,500

Proceeds from issuance of investment units

13,938,968-

Proceeds from issuance of investment corporation bonds

1,485,336

1,481,582

Redemption of investment corporation bonds--9,000,000

Payment of investment units issuance costs--28,321-2,310,038-2,747,108

Net cash provided by (used in) financing activities

9,812,767

23,664,651

Net increase (decrease) in cash and cash equivalents

5,107,976-4,408,992

Cash and cash equivalents at beginning of period

12,820,027

17,928,003

17,928,003

13,519,010

Dividends paid

Cash and cash equivalents at end of period

*

-23-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（6）Notes to 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

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.
Right of using water facilities: 6 years
Leasehold rights
Fixed term leasehold is amortized over a contractual period of forty-eight years and nine 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 provision

Provision for loss due to disasterOf the cost of repairs on impaired fixed assets due to the East Japan Earthquake of 2011, the amountreasonably estimable at the period end is recognized as a provision.

5. Accounting standards for revenues and expenses

Accounting method for property tax
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 for theperiod, for the portion of such taxes corresponding to said period.
In connection with the acquisition of real estate including trust beneficiary interests in real estate during
the fiscal period under review, the Investment Corporation included its pro rata property portion for theyear 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 ¥44,438 thousand and for the
fiscal period under review amounted to ¥23,880 thousand.

6. Accounting for hedges(1) Hedge accounting method
The deferred hedge method is applied. However, the special treatment is applied for the interest-rate
swap agreements that meet the criteria.
(2) Hedging instruments and risks hedged
Hedge instruments
The Investment Corporation enters into interest-rate swap transactions.
Risks hedged
Interest rates on debt.

-24-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(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 of Incorporation.
(4) Method of evaluating the effectiveness of hedging
During the period from the commencement of hedging to the point at which effectiveness is
assessed, the Investment Corporation compares the cumulative total of market changes in thetargeted objects of hedging or cash flow changes with the cumulative total of market changes in thehedging instruments or cash flow changes. The Investment Corporation then makes a decision basedon the changes and other factors of the two.
However, the interest-rate swap agreements that meet the criteria for special treatment, the evaluationof effectiveness are omitted.
7. The scope of cash and cash equivalents on statements ofcash flows

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 with original maturities ofthree months or less, that are readily convertible to known amounts of cash and present insignificant
risk of a change in value.

8. Other significant accounting policies utilized in the
preparation of financial statements(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 the form of trust
beneficiary interests in real estate and other assets are recorded in full in the Investment
Corporation’s balance sheets and statements of income.
Important line items included in accounting for financial assets in the Investment Corporation’sbalance 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 fixturesin trust, land in trust and construction in progress in trust
3. Right of using water facilities in trust
4. Tenant leasehold and security 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 applicable to theacquisition of assets are included in the cost of acquisition for each asset.

-25-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(8)【Notes to the Financial Statements】（Notes to the Balance Sheets）※1.

Minimum unitholders’ equity pursuant to Article 67-4 of the Law Concerning Investment Trusts and Investment Corporations Law(Thousands of Yen)
Thirteenth Fiscal Period

Fourteenth Fiscal Period(October 31, 2011)(April 30, 2012)
50,000※2.

50,000

The amount of advanced depreciation of property, plant and equipment acquired by government subsidy(Thousands of Yen)
Thirteenth Fiscal Period

Fourteenth Fiscal Period(October 31, 2011)(April 30, 2012)

Building in trust

26,230-26-

26,230KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Statements of Income）※1. Breakdown of real estate rental business profit and loss

(Thousands of Yen)
Thirteenth Fiscal Period

Fourteenth Fiscal Period(May 1, 2011 to October 31, 2011)(November 1, 2011 to April 30, 2012)

A. Rental and other operating revenues
Rental revenues
Leasing income

6,121,318

6,581,677

Common area charges

1,353,951

1,490,245

7,475,270

8,071,923

Parking space rental revenues

249,514271,259

Utility charge reimbursement

633,844621,581

Miscellaneous

140,320

125,888

Subtotal

1,023,679

1,018,730

8,498,949

9,090,653

Total
Other rental revenues

Total rental and operating revenues
B. Rental and other operating expenses
Rental expenses
Property management fees and facility management fees

832,724

911,939

Utilities

617,943

663,799

Taxes

703,542724,628

Repairs and maintenance costs

152,452

165,367

Insurance

14,654

14,083

Trust fees

43,61447,276

Others153,743

175,097

Depreciation
Loss on retirement of fixed assets

1,442,935

1,578,845

-

3,719

Total property-related expenses

3,961,611

4,284,756

4,537,337

4,805,896

C. Rental business profit (A – B)
※2. Gain and Loss on sale of real estate
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011)(Thousands of Yen)
KDX Hirakawacho Building
Revenue from sale of the investment property

5,800,000

Costs of the investment property

5,122,100

Other sales’ expenses

132,618

Gain on sale of real estate545,281

Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012)
Not applicable-27-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Statements of Changes in Unitholders’ Equity）※1. Total number of authorized investment units and total number of investment units issued and outstanding
Thirteenth Fiscal Period

Fourteenth Fiscal Period(May 1, 2011 to October 31, 2011)(November 1, 2011 to April 30, 2012)

Total number of authorized investment units

2,000,000 units

2,000,000 units

Total number of investment units issued and outstanding

286,550 units

286,550 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)
Thirteenth Fiscal Period

Fourteenth Fiscal Period(May 1, 2011 to October 31, 2011)(November 1, 2011 to April 30, 2012)

Cash and bank deposits

12,349,209

6,924,146

Cash and deposits in trust

5,989,325

7,095,792

Restricted bank deposits held in trust (Note)- 410,532-500,927

Cash and cash equivalents

17,928,003

13,519,010

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

（Notes to the Lease Transactions）
Operating lease transactions(Lessor)(Thousands of Yen)
Thirteenth Fiscal Period

Fourteenth Fiscal Period(October 31, 2011)(April 30, 2012)

Unearned lease payments
Due within one year

788,658

1,019,239

Due after one year

5,355,453

5,069,698

Total

6,144,111

6,088,938-28-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to 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 and theissuance of corporate bonds and new investment accounts. The Investment Corporation makes use of derivative instruments primarily as a risk hedge againstinterest rate fluctuations and to lessen interest-rate payments. In addition, it is company policy to not conduct speculative derivative transactions. Managementof surplus funds is undertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Financial Instruments and Respective Risks

Investment securities are preferred equity securities of TMK as set forth by the Act on Securitization of Assets and 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 date of a
maximum of seven years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risks, theInvestment Corporation utilizes derivative instruments (interest-rate swap transactions) in order to hedge against such risks.
Derivative instruments are interest-rate swap 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. With regard to hedge accounting
methods, hedging instruments and hedged items, hedge policy, and the method of evaluation of hedge effectiveness, please see 6. 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 transactions 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 toinvestment 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 byusing 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 a rational basis.
Because the factors incorporated into the calculation of these prices are subject to change, differing assumptions are adopted which may alter fair value.
2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference as of October 31, 2011 are as follows.
Book Value
Fair Value(Thousands of Yen)
(Thousands of Yen)
(1) Cash and deposits
12,349,209
12,349,209

Difference(Thousands of Yen)-

(2) Cash and deposits in trust

5,989,325

5,989,325-

Total assets

18,338,535

18,338,535-(1) Short-term loans payable

10,200,000

10,200,000-(2) Investment corporation bonds

13,500,000

13,324,050-175,950(3) Long-term loans payable

87,214,000

86,587,303-626,696

110,914,000

110,111,353-802,646---

Total liabilities
Derivative Transaction-29-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

The book value per the balance sheet, fair values, as well as their difference as of April 30, 2012 are as follows. Furthermore, items whose fair values arerecognized to be extremely difficult to grasp are not included in the following table (Refer to Note 2).
Book Value(Thousands of Yen)
6,924,146

Fair Value(Thousands of Yen)
6,924,146(2) Cash and deposits in trust

7,095,792

7,095,792-

Total assets

14,019,938

14,019,938-(3) Short-term loans payable

14,700,000

14,700,000-(4) Investment corporation bonds

6,000,000

5,874,300-125,700

116,672,500

117,265,101

592,601

137,372,500

137,839,401

466,901---(1) Cash and deposits(5) Long-term loans payable
Total liabilities
Derivative Transaction

Difference(Thousands of Yen)-

Note 1: Items with regard to the calculation method of financial instrument fair value together with 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 to determine fair value.
Liabilities(1) Short-term loans payable
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used to determine 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 the estimated interest rate in
the event that the Investment Corporation conducts new borrowings of the same type. Among interest rate fluctuations on long-term borrowings, said borrowings—which
are subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps—are calculated by discounting the total amount of principal
and interest, which is handled together with applicable interest-rate swaps, by the rationally estimated interest rate in the case that the same type of borrowings areundertaken.
Derivative Transaction
Please refer to the aforementioned “Derivative Transaction.”
Note 2: Financial instruments whose fair values are recognized to be extremely difficult to grasp
Thirteenth Fiscal Period
Classification(October 31, 2011)(Thousands of Yen)
Fourteenth Fiscal Period(April 30, 2012)

Preferred equity securities-

896,655

Fair values of preferred equity securities are not subject to disclosure of fair value as they have no market value and their fair values are recognized to
be extremely difficult to grasp.
Note 3: Redemption schedule of monetary claims after the closing date
Thirteenth Fiscal Period (October 31, 2011）(Thousands of Yen)

Less than or Equal
to 1 yr.

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Cash and deposits

12,349,209

-

-

-

-

-

Cash and deposits in trust

5,989,325

-

-

-

-

-

18,338,535

-

-

-

-

-

Total

-30-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Fourteenth Fiscal Period (April 30, 2012）(Thousands of Yen)

Less than or Equal
to 1 yr.
Cash and deposits
Cash and deposits in trust
Total

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

6,924,146

-

-

-

-

-

7,095,792

-

-

-

-

-

14,019,938

-

-

-

-

-

Note 4: Investment corporation bonds, repayment of loans after the closing date, planned repayment amountThirteenth Fiscal Period (October 31, 2011）(Thousands of Yen)

Less than or Equal
to 1 yr.

1-2 yrs.

2-3 yrs.

3-4 yrs.

More than 5yrs.

4-5 yrs.

Short-term loans payable

10,200,000

-

-

-

-

-

Investment corporation bonds

9,000,000

1,500,000---

3,000,000

Long-term loans payable

13,850,000

17,606,000

24,323,000

15,135,000

13,300,000

3,000,000

Fourteenth Fiscal Period (April 30, 2012）(Thousands of Yen)

Less than or Equal
to 1 yr.
Short-term loans payable
Investment corporation bonds
Long-term loans payable

1-2 yrs.

2-3 yrs.

3-4 yrs.

More than 5yrs.

4-5 yrs.

14,700,000

-

-

-

-

-

-

1,500,000--

3,000,000

1,500,000

11,880,000

27,846,000

33,746,500

30,300,000

7,500,000

5,400,000（Notes to the Marketable Securities）
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011) and Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012)
Not applicable（Notes to the Derivative Transactions）(1) Items that do not apply hedge accounting
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011) and Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012): Not applicable(2) Items that apply hedge accounting
Thirteenth Fiscal Period (October 31, 2011）
Hedge accounting
methodSpecial treatment ofinterest-rate swaps

Type of Derivative Transactions
Interest-rate swap transaction
Fixed rate payable･Floating rate receivable(Thousands of Yen)
Main target riskhedgeLong-term loans
payableContracted amountMore than 1 yr.
6,500,000

2,000,000

Fair Calculation method forvalue applicable fair value※

Fourteenth Fiscal Period (April 30, 2012）
Hedge accounting
methodSpecial treatment ofinterest-rate swaps

Type of Derivative Transactions
Interest-rate swap transaction
Fixed rate payable･Floating rate receivable(Thousands of Yen)
Main target riskhedgeLong-term loans
payableContracted amountMore than 1 yr.
17,500,000

16,500,000

Fair Calculation method forvalue applicable fair value※※Special treatment of interest-rate swaps are reported at the fair value of applicable long-term loans payable. This is because such swaps are handled together withhedged long-term loans payable.
（Notes to the Retirement Payment）
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011) and Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012): Not applicable（Asset Retirement Obligations）
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011) and Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012): Not applicable-31-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Segment and Related Information）
1. Segment Information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment subject to disclosure.
2. Related Information
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue on thestatement of income.
(2) Information about each geographic area
A. Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
B. Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.
Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue on thestatement of income.
(2) Information about each geographic area
A. Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
B. Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.

-32-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Tax-Effect Accounting）
1. The significant components of deferred tax assets and liabilities(Thousands of Yen)
Thirteenth Fiscal Period

Fourteenth Fiscal Period(October 31, 2011)(April 30, 2012)

Deferred tax assets
Enterprise tax payable not included in expenses

49

43

Amortization of leasehold rights in trust

558

749

607

792

- 558

- 749

49

43

Subtotal deferred tax assets
Valuation Allowance
Total deferred tax assets
2. Significant difference between statutory income tax rate and the effective tax rate

(Unit: %)Thirteenth Fiscal Period

Fourteenth Fiscal Period(October 31, 2011)(April 30, 2012)

Statutory tax rate

39.33

39.33

- 35.41- 41.52(Adjustments)
Deductible cash distributions
Provision of reserve for reduction entry- 3.90-

Others0.03

2.25

Effective tax rate

0.05

0.06

3. Modification of the amount of deferred tax assets and deferred tax liabilities due to change of tax rates of income taxes, etc.
The Act to Revise the Income Tax Act, etc., in Order to Construct a Tax System Addressing Changes in the Socio-Economic Structure (Act No. 114 of 2011)
and the Act on Special Measures for Securing Necessary Financial Resources to Implement Measures to Rebuild Areas Devastated by the Great East Japan
Earthquake (Act No. 117 of 2011) were promulgated on December 2, 2011. In accordance with the promulgation, the effective statutory tax rate used to
calculate the deferred tax assets and deferred tax liabilities concerning the temporary differences, etc. expected to be reversed in the accounting periods
starting on April 1, 2012 and after will be changed to 36.59%, and the effective statutory tax rate used to calculate the deferred tax assets and deferred tax
liabilities concerning the temporary differences, etc. expected to be reversed in the accounting periods starting on April 1, 2015 and after will be changed to34.16%, respectively.
The impact of these changes on the settlement of the Investment Corporation is minimal.

（Equity-Method Income and Retained Earnings）
Thirteenth Fiscal Period (May 1, 2011 to October 31, 2011) and Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012): Not applicable-33-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Related-Party Transactions）
1．Parent Company, corporate shareholders and otherThirteenth Fiscal Period (May 1, 2011 to October 31, 2011) and Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012):Not applicable
2．Affiliated companies and otherThirteenth Fiscal Period (May 1, 2011 to October 31, 2011) and Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012): Not applicable
3．Fellow subsidiary companies and otherThirteenth Fiscal Period (May 1, 2011 to October 31, 2011) and Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012): Not applicable
4．Directors, individual shareholders and otherThirteenth Fiscal Period (May 1, 2011 to October 31, 2011)
Attributes

Name

Board of Directors Taisuke
and Close Relatives Miyajima

As above

As above

As above

As above

Business Activities / Position

Ratio of Possessionof Voting Rights
Details of Business(%)

Executive Director for theInvestment Corporation and CEO Possession of Right Payment of asset management
fee to Kenedix REIT
and President of Kenedix REIT Direct 0.0％
Management, Inc. (Note 1)
Management, Inc.
As above

As above

As above

As above

Payment of businessconsignment fee to Kenedix
REIT Management, Inc.
(Note3)
Payment of property
management fee to Kenedix
REIT Management, Inc.
(Note5)

Deal Amount Accounting(¥Thousands)
Term
587,755

Accounts(Note 2)

Payable(Note 4)-other

1,500

Balance of
Period End(¥Thousands)
99,238(Note 4)－－(Note4)
332,825(Note 4)

Accounts
Payable82,757(Note 4)

Notes:
1. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
2. Asset management fee include ¥71,350 thousand fee related to the acquisition of property are accounted in book value for the individual real estate and ¥29,000
thousand sales fee related to the sale of property are accounted for in the sales expense for the individual real estate.
3. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Operating Agency
Agreement” between the Investment Corporation and Kenedix REIT Management, Inc.
4. Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Property
Management Agreement” between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥31,424 thousand
related to the acquisition of property are accounted in book value for the individual real estate and ¥2,400 thousand sales fee related to the sale of property areaccounted for in the sales expense for the individual real estate.
Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012)
Attributes

Name

Board of Directors Naokatsu
and Close Relatives UchidaBusiness Activities / Position
Executive Director for theInvestment Corporation and CEO
and President of Kenedix REITManagement, Inc.

Ratio of Possessionof Voting Rights
Details of Business(%)

Deal Amount Accounting(¥Thousands)
Term
652,127－

Payment of asset management
fee to Kenedix REITManagement, Inc. (Note 1)(Note 2)
(Note 4)(Note 6)As above

As above

As above

As above

As above

As above

As above

Payment of businessconsignment fee to Kenedix
REIT Management, Inc.
(Note3)As above

Payment of property
management fee to Kenedix
REIT Management, Inc.
(Note5)

Accounts
Payable87,221(Note 4)-other－6,500(Note 4)

Balance of
Period End(¥Thousands)－(Note 6)368,339(Note 4)

115,960

Accounts
Payable(Note 4)(Note 6)

Notes:
1. Naokatsu Uchida served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.

-34-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

2. Asset management fee include ¥161,055 thousand fee related to the acquisition of property are accounted in book value for the individual real estate.
3. Naokatsu Uchida served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Operating Agency
Agreement” between the Investment Corporation and Kenedix REIT Management, Inc.
4. Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5. Naokatsu Uchida served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Property Management
Agreement” between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥50,361 thousand related to theacquisition of property are accounted in book value for the individual real estate.
6. At the Board of Directors meeting of Kenedix REIT Management, Inc. held on February 2, 2012, Taisuke Miyajima resigned as CEO and President, andNaokatsu Uchida was appointed as new CEO and President in his place. Also, at the Investment Corporation’s General Meeting of Unitholders held on March
15, 2012, the resignation of Taisuke Miyajima as executive director and the new appointment of Naokatsu Uchida as executive director were approved. In thedeal amount, the deal amount of the fiscal period under review including the period for which Taisuke Miyajima held office is indicated.

（Fair Value of 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 and fair value concerning the above real estate for rental purposes are as follows.
(Thousands of Yen)
Thirteenth Fiscal Period

Fourteenth Fiscal Period(May 1, 2011 to October 31, 2011)(November 1, 2011 to April 30, 2012)

Book Value (Thousands of Yen)
Balance at the end of previous period

246,187,379

Changes during the period
Balance at the end of current period

254,921,755

8,734,375

31,192,663

254,921,755

286,114,419

Fair value at the end of current period
230,717,000
263,867,000
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period under review is the appraisal value determined by outside appraisers. KDX Omori Building is calculated based on
the sales price of ¥4,200 million under the sales and purchase agreement dated February 23, 2012.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the thirteenth fiscal period, principal increases were the acquisition ofreal estate trust beneficiary interests to four properties totaling ¥14,609,501 thousand, the sale of real estate trust beneficiary interests to one property
amounting ¥5,122,100 thousand and depreciation amounting to ¥1,442,935 thousand and for the fiscal period under review, principal increases were theacquisition of real estate trust beneficiary interests to nine properties totaling ¥31,851,608 thousand and depreciation amounting to ¥1,578,845 thousand.
Income and loss for real estate for rental purposes is listed in Notes to the Statements of Income.

-35-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Information per Unit）
Thirteenth Fiscal Period

Fourteenth Fiscal Period(May 1, 2011 to October 31, 2011)(November 1, 2011 to April 30, 2012)

Unitholders’ Equity per Unit

¥524,419¥523,668

Net Income per Unit

¥11,592¥8,865Note 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 residual units is not included because there were no residual investment units.
Note 2: The calculation for the net income per unit is as follow.
Thirteenth Fiscal Period

Fourteenth Fiscal Period(May 1, 2011 to October 31, 2011)
Net Income (Thousands of Yen)

3,052,817

2,540,282--

3,052,817

2,540,282

263,341

286,550

Amount not vested in ordinary investors(Thousands of Yen）
Net income for ordinary units(Thousands of Yen)
Average number of units during the period(unit)(November 1, 2011 to April 30, 2012)（Important Subsequent Events）

Sales of Property
The Investment Corporation has concluded a purchase and sales agreement on February 23, 2012 and sold the following property on
May 11, 2012.
KDX Omori Building (Office Building)
Property Name
Trust beneficiary interest in real estate
Type of Assets for Sale
Location (Address)
1-6-8 Omori-kita, Ohta-ku, Tokyo
Tokyo Property Service Co., Ltd. (Note)
Buyer
Sales Price¥4,200 million
Capital gains from the sale are estimated to be ¥597 million for the fifteenth fiscal period. The aforementioned sales price excludes sales costs, adjusted
amounts for property and city-planning tax, consumption tax, regional consumption tax, etc.
Note: Tokyo Property Service Co., Ltd. has changed its company name from OOIKOUGYOU CO., LTD. on March 16, 2012.T-36-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（9）Movements in Investment Units Issued and Outstanding
Movements in the number of investment units issued and outstanding and unitholders’ capital since first fiscal periods are summarized in thefollowing table.
Settlement Date

Particulars

May 6, 2005
July 20, 2005
August 16, 2005
May 1, 2006
May 26, 2006
May 22, 2007
June 19, 2007
November 16, 2009
July 20, 2011
August 8, 2011

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

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)400
75,0003,970
73,6603,970
40,9002,100
33,55051,4001,600

Unitholders’ Capital(Millions of Yen)
Increase
Balance(Decrease)400
75,40079,370153,030
157,000
197,900
200,000
233,550
284,950
286,550200
41,8682,216
42,171
2,272
34,474
1,770
8,156
13,600423

200
42,06844,28586,45688,729123,203
124,973
133,129
146,730
147,153

Remarks(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)Notes:
1. The Investment Corporation was established with an offer price of ¥500,000 per unit.
2. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥580,000 per unit with an underwritten price of ¥558,250 per unit.
3. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥558,250 per unit.
4. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥593,096 per unit with an issue price of ¥572,519 per unit.
5. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥572,519 per unit.
6. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties and repayment of borrowings. The offer price was ¥873,180 per unit with an issue price of ¥842,886 per unit.
7. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties and repayment of borrowings. The issue price was ¥842,886 per unit.
8. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥252,200 per unit with an issue price of ¥243,100 per unit.
9. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥274,510 per unit with an issue price of ¥264,605 per unit.
10. 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.

4. Resignation/Appointment of the Directors(1) Resignation/Appointment of the Investment Corporation Directors
At the Investment Corporation’s Sixth General Meeting of Unitholders held on March 15, 2012, Taisuke Miyajima resigned as executive
director, Naokatsu Uchida was appointed as new executive director and Kimio Kodama and Shiro Toba were reappointed and Yoshihiro
Morishima appointed as supervisory directors as of March 15, 2012. Naokatsu Uchida also doubles as the CEO and President at Kenedix
REIT Management, Inc. the asset management company for the Investment Corporation. Also, Yoshihiro Sogou of the Asset Management
Company was appointed as non-statutory executive director at the General Meeting of Unitholders in order to avoid the case of having fewer
executive directors than that designated by relevant regulatory requirements.
Appointed: Executive Director
Naokatsu Uchida (Date of change: March 16, 2012)
Supervisory Director Yoshihiro Morishima (Date of change: March 16, 2012)Retired : Executive Director
Taisuke Miyajima (Date of change: March 15, 2012)(2) Resignation/Appointment of the Asset Management Company
A. Change of CEO and President
Appointed: CEO and President
Naokatsu Uchida (Date of change: February 2, 2012)Retired : CEO and President
Taisuke Miyajima (Date of change: February 2, 2012)-37-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

B. Change of Directors
Appointed: Director
Retired : Director
Director (part-time)

Koju Komatsu (Date of change: February 2, 2012)
Masahiko Tajima (Date of change: February 2, 2012)
Taisuke Miyajima (Date of change: March 15, 2012) (Note)

Note: Taisuke Miyajima assumed the post of part-time director from CEO and President as of February 2, 2012 and subsequently resigned the post as ofMarch 15, 2012.

-38-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Reference Information（1）Component of Assets
Thirteenth Fiscal Period(As of October 31, 2011)

Type of

Type

Specified Asset

Office Buildings

Real Estate

Area

Total Amount Held

Ratio

Total Amount Held

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

Tokyo Metropolitan Area

30,27511.0

30,213

Other Regional Areas

12,362

4.5

12,288

4.1

42,63715.5

42,501

14.0

42,63715.5

42,501

14.0

Tokyo Metropolitan Area

167,28360.8

182,695

60.2

Other Regional Areas

23,584

8.6

38,93912.8

190,868

69.4

221,634

73.1

Tokyo Metropolitan Area

7,198

2.6

7,153

2.4

Other Regional Areas

1,830

0.7

1,807

0.6

9,028

3.3

8,960

3.0

12,386

4.5

12,330

4.1

12,386

4.5

12,330

4.1

-

-

686

0.2

Total for Office Buildings
Total for Real Estate
Office Buildings
Total for Office Buildings
Residential Properties
Trust BeneficiaryInterest in Real Estate

Total for Residential Properties
Central Urban Retail
Properties

Tokyo Metropolitan Area

Total for Central Urban Retail Properties
OthersFourteenth Fiscal Period(As of April 30, 2012)

Other Regional Areas

Total for Others
Total of Trust Beneficiary Interests in Real Estate

10.0

-

-

686

0.2

212,28377.2

243,612

80.3

-

-

896

0.3

Investment Securities (Note 3)
Bank Deposits and Other Assets

20,051

7.3

16,272

5.4

Total Assets

274,973100.0

303,284

100.0

Notes:
1. “Total Amount Held” is the amount allocated in the balance sheets at the end of the period (figures are on a net book value basis after deducting depreciation), and isrounded down to the nearest ¥1 million.
2. “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
3. The preferred equity securities issued by Senri Property TMK.

Thirteenth Fiscal Period(As of October 31, 2011)
Price (Millions of Yen)
Ratio (%)
Total of Liabilities
Total Unitholders’ Equity
Total of Assets

Fourteenth Fiscal Period(As of April 30, 2012)
Price (Millions of Yen)

Ratio (%)

124,700

45.4

153,22150.5

150,27254.6

150,063

49.5

274,973100.0

303,284

100.0(2) Details of Investment Assets
A. Major components of investment securities
Type of Assets

Name

Preferred Equity

Senri Property TMK Preferred Securities

Securities(Note 3)

Number ofBook Value

Evaluation Value (Note 1)

Ratio (%)

Units

(Millions of Yen)

(Millions of Yen)

(Note 2)

17,820896

Notes:
1. Book value is stated for the evaluation value.
2. “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
3. Type of specified asset is the trust beneficiary interest in real estate of Senri Life Science Center Building

-39-

896

0.3

KENEDIX REALTY INVESTMENT CORPORATION (8972)

B. Properties Roster (*We have changed the order of the Properties Roster to Type, Area and No. starting from the fourteenth fiscal period under review.)(a) The Price of the Investment Properties and the Investment Ratio((Unit: Millions of Yen)
Appraisal Value at the end of Fourteenth Fiscal Period
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Acquisition
Price（Note 1）

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-1

KDX Nihonbashi 313 Building

5,940

6,110

6,380

6,700

4.8

6,240

4.6

5.0

B

2.0

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,348

5,190

5,260

4.9

5,120

4.7

5.1

A

1.5

A-4

KDX Hatchobori Building

3,680

3,343

3,440

3,470

5.0

3,430

4.8

5.2

B

1.2

A-5

KDX Nakano-Sakaue Building

2,533

2,447

2,290

2,370

5.4

2,260

5.2

5.6

B

0.8

A-6

Harajuku F.F. Building

2,450

2,442

2,980

3,010

5.6

2,950

5.4

5.8

A

0.8

A-7

FIK Minami Aoyama

2,270

2,247

2,120

2,150

4.8

2,090

4.6

5.0

A

0.7

A-8

Kanda Kihara Building

1,950

1,848

1,870

1,910

5.0

1,850

4.8

5.2

B

0.6

A-13

KDX Kojimachi Building

5,950

5,627

4,400

4,450

4.4

4,350

4.2

4.6

A

2.0

A-14

KDX Funabashi Building

2,252

2,397

1,970

1,980

6.1

1,950

5.9

6.3

A

0.7

A-15

KDX Hamacho Building

2,300

2,260

2,370

2,400

5.2

2,340

5.0

5.4

A

0.8

A-16

Toshin 24 Building

5,300

5,121

4,160

4,180

5.7

4,130

5.5

5.9

A

1.8

A-17

KDX Ebisu Building

4,640

4,559

4,200

4,240

4.9

4,160

4.6

5.1

A

1.6

A-18

KDX Omori Building (Note 6)

3,500

3,361

3,790

3,820

5.3

3,750

5.1

5.5

A

1.2

A-19

KDX Hamamatsucho Building

3,460

3,245

3,180

3,290

4.7

3,130

4.5

4.9

B

1.2

A-20

KDX Kayabacho Building

2,780

2,843

2,690

2,710

5.3

2,660

4.9

5.4

A

0.9

A-21

KDX Shinbashi Building

2,690

2,693

2,700

2,730

4.6

2,660

4.2

4.8

A

0.9

A-22

KDX Shin-Yokohama Building

2,520

2,451

2,270

2,290

5.9

2,240

5.7

6.1

A

0.8

A-23

KDX Yotsuya Building

1,950

1,979

2,470

2,490

5.3

2,440

5.1

5.5

A

0.6

A-26

KDX Kiba Building

1,580

1,562

1,430

1,440

5.6

1,410

5.4

5.8

A

0.5

A-27

KDX Kajicho Building

2,350

2,386

2,320

2,390

5.1

2,290

4.9

5.3

B

0.8

A-28

KDX Nogizaka Building

1,065

1,124

723

726

5.5

720

5.2

5.6

A

0.3

A-29

KDX Higashi-Shinjuku Building

2,950

3,196

3,320

3,480

5.2

3,250

5.0

5.4

B

1.0

A-30

KDX Nishi-Gotanda Building

4,200

4,045

3,780

3,830

5.1

3,720

5.0

5.4

A

1.4

A-31

KDX Monzen-Nakacho Building

1,400

1,402

1,170

1,220

5.6

1,150

5.4

5.8

B

0.4

A-32

KDX Shiba-Daimon Building

6,090

6,199

4,950

4,980

4.9

4,920

4.7

5.1

A

2.1

A-33

KDX Okachimachi Building

2,000

2,121

1,850

1,880

5.1

1,830

5.0

5.3

B

0.6

A-34

KDX Hon-Atsugi Building

1,305

1,172

1,070

1,060

6.3

1,070

6.1

6.5

B

0.4

A-35

KDX Hachioji Building

1,155

1,282

831

832

5.9

831

5.7

6.1

B

0.4

A-37

KDX Ochanomizu Building

6,400

6,641

6,540

6,630

4.9

6,450

4.7

5.1

A

2.2

A-38

KDX Nishi-Shinjuku Building

1,500

1,544

1,130

1,150

5.2

1,110

5.0

5.4

A

0.5

A-39

KDX Toranomon Building

4,400

4,791

3,460

3,510

4.4

3,410

4.2

4.6

A

1.5

A-40

Toranomon Toyo Building

9,850

9,853

10,10010,300

4.5

9,810

4.3

4.8

A

3.4

A-41

KDX Shinjuku 286 Building

2,300

2,392

2,140

2,160

5.0

2,110

4.8

5.2

A

0.8

A-45

KDX Roppongi 228 Building

3,300

3,434

2,160

2,180

4.8

2,140

4.5

4.9

A

1.1

A-46

Hiei Kudan-Kita Building

7,600

7,649

7,380

7,750

4.7

7,220

4.5

4.9

B

2.6

A-47

KDX Shin-Yokohama 381 Building

5,800

5,888

4,050

4,060

5.9

4,040

5.6

6.0

A

2.0

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,792

2,990

3,040

6.1

2,940

5.7

6.3

A

1.3

A-49

Nissou Dai-17 Building

2,710

2,618

1,600

1,620

5.8

1,570

5.6

6.0

A

0.9

A-50

Ikejiri-Oohashi Building

2,400

2,452

1,500

1,520

5.8

1,480

5.6

6.0

A

0.8

A-51

KDX Hamacho Nakanohashi Building

2,310

2,347

1,700

1,720

5.3

1,670

5.1

5.5

A

0.8

A-52

KDX Kanda Misaki-cho Building

1,380

1,377

981

991

5.3

970

5.1

5.5

A

0.4

A-55

Shin-toshin Maruzen Building

2,110

2,160

1,570

1,580

5.3

1,560

4.9

5.5

A

0.7

-40-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Appraisal Value at the end of Fourteenth Fiscal Period
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other Regional
Areas

No.

Property Name

Residential
Properties

Other Regional
Areas

Tokyo
Metropolitan
Area

Others(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)

2,760

2,900

1,870

1,880

5.3

1,860

5.0

5.5

A

0.9

A-57

KDX Gobancho Building

1,951

1,987

1,500

1,510

4.9

1,480

4.7

5.1

A

0.6

A-59

KDX Iwamoto-cho Building

1,864

1,795

1,350

1,360

5.4

1,340

5.2

5.6

A

0.6

A-60

KDX Harumi Building

10,250

9,701

8,230

8,400

4.8

8,060

4.5

4.9

A

3.5

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,288

1,860

1,910

4.7

1,840

4.5

4.9

B

0.7

A-62

Koishikawa TG Building

3,080

3,133

3,150

3,190

5.0

3,110

4.8

5.2

A

1.0

A-63

Gotanda TG Building

2,620

2,816

2,590

2,620

5.3

2,560

5.1

5.5

A

0.9

A-64

KDX Nihonbashi 216 Building

2,010

1,970

1,930

1,950

4.7

1,900

4.5

4.9

A

0.7

A-66

KDX Shinjuku Building

6,800

6,883

6,600

6,690

4.5

6,510

4.3

4.7

A

2.3

A-67

KDX Ginza 1chome Building

4,300

4,302

4,760

4,870

4.5

4,710

4.3

4.7

B

1.4

A-68

KDX Nihonbashi Honcho Building

4,000

4,013

4,300

4,470

4.8

4,220

4.6

5.0

B

1.3

A-71

KDX Iidabashi Building

4,670

4,697

4,830

4,970

4.9

4,770

4.7

5.1

B

1.6

A-72

KDX Higashi-Shinagawa Building

4,590

4,817

4,800

4,970

5.1

4,730

4.9

5.3

B

1.6

A-73

KDX Hakozaki Building

2,710

2,910

2,850

2,940

5.2

2,810

5.0

5.4

B

0.9

A-74

KDX Shin-Nihonbashi Building

2,300

2,294

2,480

2,540

4.7

2,460

4.5

4.9

B

0.8

A-75

Kabutocho Nikko Building

11,27011,364

13,50013,600

4.6

13,400

4.2

4.7

A

3.9

A-76

Ikebukuro Nikko Building

1,653

1,675

1,690

1,700

5.5

1,670

5.3

5.7

A

0.5

A-77

Kabutocho Nikko Building II

1,280

1,294

1,550

1,570

5.0

1,520

4.8

5.2

A

0.4

A-78

Tachikawa Ekimae Building

1,267

1,290

1,330

1,340

5.9

1,320

5.7

6.1

A

0.4

A-12

Portus Center Building

5,570

4,584

4,600

4,630

6.4

4,590

6.2

6.6

B

1.9

A-24

KDX Minami Semba Dai-1 Building

1,610

1,456

1,020

1,030

5.8

1,010

5.6

6.0

A

0.5

A-25

KDX Minami Semba Dai-2 Building

1,560

1,369

1,050

1,060

5.8

1,040

5.6

6.0

A

0.5

A-36

KDX Niigata Building

1,305

1,453

914

928

7.3

899

7.1

7.5

A

0.4

A-42

Karasuma Building

5,400

5,394

5,030

5,170

5.6

4,970

5.4

5.8

B

1.8

A-44

KDX Sendai Building

2,100

2,162

1,440

1,430

6.1

1,440

6.1

6.3

B

0.7

A-53

KDX Hakata-Minami Building

4,900

4,795

3,460

3,490

6.6

3,420

6.4

6.8

A

1.7

A-54

KDX Kitahama Building

2,220

2,191

1,530

1,530

6.0

1,530

5.6

6.2

A

0.7

A-58

KDX Nagoya Sakae Building

7,550

7,492

4,750

4,880

5.2

4,700

5.0

5.4

B

2.6

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,748

2,890

2,910

7.0

2,860

5.3

7.3

A

1.0

A-70

Kitananajo SIA Building

2,005

2,089

2,050

2,100

5.8

2,030

5.6

6.0

B

0.6

A-79

Nagoya Ekimae Sakura-dori Building

7,327

7,420

7,780

7,860

5.1

7,690

4.9

5.3

A

2.5

A-80

Nagoya Nikko Shoken Building

4,158

4,210

4,280

4,310

5.5

4,240

5.3

5.7

A

1.4

A-81

Sendai Nikko Building

950

975

1,050

1,050

5.9

1,040

5.6

6.0

A

0.3

A-82

View Flex Umeda Building

2,770

2,882

3,240

3,270

5.1

3,220

4.9

5.3

B

0.9

264,401

264,136

243,469

247,627

-

92.1

-

240,370--

B-3

Court Mejiro

1,250

1,173

940

945

5.5

935

5.3

5.7

A

0.4

B-19

Residence Charmante Tsukishima

5,353

4,984

4,480

4,520

5.3

4,430

5.1

5.5

A

1.8

B-34

Gradito Kawaguchi

1,038

995

948

957

5.6

938

5.4

5.8

A

0.3

B-18

Venus Hibarigaoka

1,800

1,807

1,520

1,520

6.6

1,510

6.4

6.8

A

0.6

9,441

8,960

7,888

7,942

-

3.2

9,900

9,816

9,090

9,240

4.7

A

3.4

5.5

A

0.8

-

4.3

A

0.2

C-1

Frame Jinnan-zaka

C-2

KDX Yoyogi Building

Subtotal of Central Urban Retail Properties (2 properties)
Other Regional
Areas

Direct Capitalization
MethodKDX Jimbocho Building

Subtotal of Residential Properties (4 properties)
CentralUrban
RetailProperties

Amount on
the Balance
Sheet(Note 2)

A-56

Subtotal of Office Buildings (76 properties)
Tokyo
Metropolitan
Area

Acquisition
Price（Note 1）

D-1

Kanazawa Nikko Building

2,479

2,514

1,910

1,910

12,37912,33011,000

11,150

645

686

1,100

1,100

-41-

-

7,813
4.5
5.3

-

8,940

1,100

4.3

1,900
10,840

7.3

-

4.9
-

7.1

7.5

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Appraisal Value at the end of Fourteenth Fiscal Period
Type

Area

No.

Property Name

Subtotal of Others (1 property)
Total of 83 properties

Acquisition
Price（Note 1）

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)
Value

Overall
Capitalization
Rate (%)

Discounted Cash Flow Method
Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)

645

686

1,100

1,100

-

1,100

-

-

-

0.2

286,866

286,114

263,457

267,819-

260,123

-

-

-

100.0

Notes:
1. Acquisition price is the purchase price for trust beneficiary interests or properties acquired by the Investment Corporation (excluding acquisition costs,
property tax, city-planning tax, and consumption tax, etc., rounded down to the nearest million yen.).
2. Figures of less than1 million are rounded down from the amounts on the balance sheet.
3. Appraisal values (end of the fourteenth fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation’s Articles ofIncorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports prepared by Japan
Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd.
4. As of the fiscal period under review, appraisals of the properties are entrusted to two appraisers: Japan Real Estate Institute and Daiwa Real Estate Appraisal
Co., Ltd. In the table, the appraisers are referred to as “A” for Japan Real Estate Institute and “B” for Daiwa Real Estate Appraisal Co., Ltd.
5. Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest first decimal place.
The figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices of properties corresponding to each
subtotal and total column by the total acquisition price of the entire assets (83 properties).
6. The Investment Corporation has sold KDX Omori Building on May 11, 2012. Same applies below.

-42-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(b) Property Distribution
Property TypesType

Number of
Properties

Office Buildings
Residential Properties
Central Urban Retail Properties
Other
Total

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

76
4
2
1

264,401
9,441
12,379
645

92.1
3.2
4.3
0.2

83

286,866

100.0

Geographic Distribution
Area

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

Tokyo Metropolitan Area
Other Regional Areas

66
17

232,126
54,740

80.9
19.0

Total

83

286,866

100.0

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

Number of
Properties

Less than 1,000
1,000 - 2,500
2,500 - 5,000
5,000 - 7,500
7,500 - 10,000
10,000 - 12,500
Total

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

2
37
27
11
4
2

1,595
67,92095,00165,93034,90021,520

0.5
23.6
33.1
22.9
12.1
7.5

83

286,866

100.0

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.

-43-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(c) Details of Investment Real Estate and Trust Real Estate(i) Overview of Investment Real Estate Properties and Trust Real Estate
Type

Area

No.

Property Name

Site Area（㎡）(Note1)

A-1

KDX Nihonbashi 313 Building

1,047.72

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)SRC
Offices

8,613.09

April 1974

9.50

January 1987

7.01

June 1993

6.42

August 1992

5.20

November 1985

5.66

November 1988

4.92

May 1993

7.77

May 1994

3.60

April 1989

2.76

September 1993

6.76

September 1984

8.75

January 1992

4.16

October 1990

0.71

September 1999

6.13

October 1987

7.90

February 1992

6.84

September 1990

10.36

October 1989

9.79

October 1992

7.79

March 1990

6.05

May 1991

9.48

January 1990

3.63

November 1992

8.28

B2F9
SRC
A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48
B1F9
SRC・RCA-4

KDX Hatchobori Building

992.20

Offices

4,800.43
B1F8

Offices, Retail Shops
SRC
A-5

KDX Nakano-Sakaue Building

1,235.16

Residential, Parking

6,399.42
B1F11

Storage
Retail Shops, Offices
A-6

Harajuku F.F. Building

699.67SRC
3,812.44

Parking

F11

Offices, Retail Shops
A-7

FIK Minami Aoyama

369.47SRC
1,926.98

Residential

B1F9
SRC・RC・S

A-8

Kanda Kihara Building

410.18

Offices

2,393.94
B1F8
SRC

A-13

KDX Kojimachi Building

612.17

Offices, Retail Shops

5,323.81
B2F9
SRC

A-14

KDX Funabashi Building

1,180.41

Offices, Retail Shops

5,970.12
B1F8

Retail Shops, Offices
A-15

KDX Hamacho Building

554.80SRC
4,133.47

Parking

B2F10

Offices, Retail Shops
A-16
OfficeBuildings

Tokyo
Metropolitan
AreaToshin 24 Building

1,287.16

SRC
8,483.17

Parking

B1F8
SRC

A-17

KDX Ebisu Building

724.22

Offices, Retail Shops

4,394.58
B1F7

Offices, Retail Shops
A-18

KDX Omori Building (Note 6)

1,123.93

RC・SRC
7,334.77

Parking

B1F9

Offices, Retail Shops
A-19

KDX Hamamatsucho Building

504.26

S3,592.38

Parking

F9
SRC

A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86
F8

Offices, Retail Shops
A-21

KDX Shinbashi Building

536.11

SRC・S
3,960.22

Parking

B1F8

Offices, Retail Shops
A-22

KDX Shin-Yokohama Building

705.00S
6,180.51

Parking

B1F9

Offices, Retail Shops
A-23

KDX Yotsuya Building

996.65RC
3,329.68

Parking

B2F4

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70

RC F5
SRC
B1F8

Offices, Retail Shops
A-28

KDX Nogizaka Building

409.36RC
1,695.07

Residential

B1F5

Offices,A-29

KDX Higashi-Shinjuku Building

1,340.97

SRC
7,885.40

Storage Parking

B1F9
SRC

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87
B1F8

-44-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)
Offices

A-31

KDX Monzen-Nakacho Building

580.99Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)

September 1986

5.72

July 1986

7.60

June 1988

2.23

May 1995

11.12

December 1985

13.00

August 1982

2.97

October 1992

9.02

April 1988

8.07

August 1962

13.06

August 1989

8.71

April 1989

8.95

March 1988

3.14

SRC
2,668.91

Retail Shops

F8
SRC

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03
B1F9
S

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00
F10

OfficesA-34

KDX Hon-Atsugi Building

724.62SRC
3,603.63

Retail Shops

F8

Offices, Parking
A-35

KDX Hachioji Building

460.62SRC
2,821.21

Retail Shops

F9

Offices, Storage
SRC
A-37

KDX Ochanomizu Building

1,515.28

Retail Shops, Parking

7,720.08
B1F7

Mechanical RoomRC
A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63
F5
SRC

A-39

KDX Toranomon Building

288.20

Offices, Retail Shops

2,277.38
B1F9Bank, Offices
A-40

Toranomon Toyo Building

869.01

RC
8,346.83

Retail Shops, Storage

B2F9
SRC・RCA-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04
B1F9

OfficesA-45

KDX Roppongi 228 Building

408.86SRC
2,235.30

Retail Shops
OfficeBuildings

Tokyo
Metropolitan
Area

B1F9

Offices, Retail Shops
SRC･S
A-46

Hiei Kudan-Kita Building

1,844.83

Office Room

11,425.31
B1F11

Parking, Storage
Offices, Retail Shops
A-47

KDX Shin-Yokohama 381 Building (Note 7)

1,229.24

SRC・RCMarch 1988

B1F10

(Note 8)

10,290.30
Parking, Garbage Room

12.02
SRC

A-48

KDX Kawasaki-Ekimae Hon-cho Building

1,968.13

Offices

7,420.87

February 1985

8.34

July 1991

13.23

September 1988

3.02

September 1988

6.17

October 1992

9.41

July 1990

4.87

May 1994

7.25

August 2000

9.06

March 2008

7.15

February 2008

5.60

B1F9
SRC
A-49

Nissou Dai-17 Building

629.00

Offices, Parking

4,016.61
B1F8
RC

A-50

Ikejiri-Oohashi Building

834.79

Offices

3,482.96
B2F9
SRC

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41
F9
SRC

A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60
B1F7

Offices, Retail Shops
A-55

Shin-toshin Maruzen Building

457.64SRC
3,439.37

Parking

B1F8
SRC

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
B1F8
S

A-57

KDX Gobancho Building

335.70

Offices Parking

1,893.11
F8

OfficesA-59

KDX Iwamoto-cho Building

266.86

S
1,618.65

Residential Complex

F9

OfficesA-60

KDX Harumi Building

2,230.69
Retail Shops

-45-

S・SRC
12,694.32
B1F11

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)

S・SRC
A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90

April 1992

2.01

November 1989

7.54

April 1988

8.37

October 2006

6.99

May 1993

1.78

November 1991

8.41

January 1984

7.92

March 1990

8.37

January 1993

10.40

November 1993

7.29

November 2002

5.51

November 1998

4.23

March 1986

8.67

October 2001

6.15

February 1990

3.34

September 1993

3.48

March 1993

9.04

September 1993

10.59

July 1983

4.39

October 1982

8.37

February 1984

1.93

June 1973

1.48

July 1994

9.79

April 2009

2.87

B1F8
SRC
A-62

Koishikawa TG Building

1,250.42

Offices, Parking

5,862.02
B1F8
SRC

A-63

Gotanda TG Building

582.90

Offices, Parking

4,440.61
B1F9
SRC

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62
F9

Offices, Retail Shops
A-66

KDX Shinjuku Building

1,118.12

S・RC
10,348.02

Parking

B4F11
SRC

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

4,724.62
F9
SRC

A-68

KDX Nihonbashi Honcho Building

583.40

Offices, Parking

5,110.45
B1F9

Tokyo
Metropolitan
Area

SRC
A-71

KDX Iidabashi Building

967.38

Offices, Parking

5,422.64
B1F8
S・RC

A-72

KDX Higashi-Shinagawa Building

3,115.45

Offices

10,138.65
B1F5
SRC

A-73

KDX Hakozaki Building

971.83

Offices, Parking

6,332.48
B1F10

Offices, Retail Shops
A-74

KDX Shin-Nihonbashi Building

444.32

S
3,712.25

Parking

B1F10
S・RC

A-75

Kabutocho Nikko Building

1,920.79

Offices, Parking

11,705.49
B1F8

OfficeBuildings

SRC
A-76

Ikebukuro Nikko Building

560.42

Offices

3,223.75
B1F8
RC

A-77

Kabutocho Nikko Building II

350.63

Offices

2,016.03
F8
S

A-78

Tachikawa Ekimae Building

464.95

Offices

2,896.48
B1F8

Offices, Retail Shops
A-12

Portus Center Building

13,936.63

SRC・S
79,827.08

Storage, Parking

B2F25
SRC・RC・S

A-24

KDX Minami Semba Dai-1 Building

715.44

Offices, Parking

4,236.59
B1F9

Parking, Retail Shops
A-25

KDX Minami Semba Dai-2 Building

606.45SRC・S3,315.93

Offices, Residential

B1F9
RC

A-36

KDX Niigata Building

1,110.56

Offices, Retail Shops

6,810.29
B2F13

Other Regional
Areas

SRC
A-42

Karasuma Building

1,788.67

Offices

12,632.68
B1F8
SRC

A-44

KDX Sendai Building

987.78

Offices

5,918.30
B1F10

Offices, Retail Shops
A-53

KDX Hakata-Minami Building

1,826.25

SRC
13,238.16

Parking

B1F9

Offices, Storage
A-54

KDX Kitahama Building

751.92

S
4,652.96

Parking

F10
S

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retail Shops

9,594.00
F11-46-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

A-69

KDX Kobayashi-Doshomachi Building (Note 9)

Site Area（㎡）(Note1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)
Offices, Parking

1,561.04

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

July 2009

13.79

October 1989

0.51

April 1986

12.13

August 1974

14.36

March 1989

3.48

July 2009

8.78

Avg. 21.9 yrs (Note 8)-

March 1997

7.11

January 2004

9.88

February 2006

6.46

March 1989

5.20

Avg. 11.8 yrs-

March 2005

8.02

August 1991

8.17

Avg. 9.8 yrs-

March 1989

2.61

S・SRC
10,723.83

Retail Shops

B1F12
SRC

A-70

Kitananajo SIA Building

819.44

Offices

5,503.90
B1F9
S・RC

A-79
OfficeBuildings

Nagoya Ekimae Sakura-dori Building

1,354.10

Offices, Retail Shops

13,380.30
B2F15

Other Regional
Areas

Offices, Retail Shops
A-80

Nagoya Nikko Shoken Building

1,403.93

SRC
14,308.76

Parking

B3F11
SRC・S

A-81

Sendai Nikko Building

522.14

Offices

3,598.01
B1F8

Offices, Retail Shops
A-82

View Flex Umeda Building

804.50

S・SRC
6,805.76

Parking
Subtotal of Office Buildings (76 properties)

B1F10

-

-

-

1,581.91

Residential Complex

3,326.07

RC

B-3

Court Mejiro

B1F3
Tokyo
Metropolitan
Area

SRC
B-19

Residence Charmante Tsukishima

4,252.86

Residential Complex

18,115.39
B1F10

Residential Complex

Residential
Properties

B-34

Gradito Kawaguchi

423.94RC
1,705.38

Retail Shops

F12①RC F6

Other Regional
Areas

B-18

Venus Hibarigaoka

8,595.00

Residential Complex

14,976.25②RC F5③RC F6

Subtotal of Residential Properties (4 properties)

-

-

-

1,240.51

Retail Shops

6,302.58

S・RC・SRC

CentralUrban
RetailProperties

C-1

Frame Jinnan-zaka

Tokyo
Metropolitan
Area

B2F7
SRC
C-2

KDX Yoyogi Building

228.74Retail Shops, Offices

1,269.06
F8

Subtotal of Central Urban Retail Properties (2 properties)

OthersOther Regional
Areas

-

-

-

751.16

Offices, Hotel

4,497.22

-

SRC
D-1

Kanazawa Nikko Building

B1F7

Subtotal of Others (1 property)
Total of 83 properties

-

-

-

-

Avg. 23.1 yrs
Avg. 21.0 yrs (Note 8)

4.98(Note 6)

Notes:
1. Site area data is based on figures recorded in the land register (including relevant figures for leasehold land, if any). Data may not match with the actual current
status. In the case of buildings with compartmentalized ownership, the figure indicates the site area of the entire land subject to site rights.
2. Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of areas covered by the relevant
ownership is shown.
3. Total floor space is based on figures recorded in the land register and does not include related structures. The total floor area for the entire buildings is reported
for compartmentalized ownership.
4. Type of structure data is based on data recorded in the land register. For buildings with compartmentalized ownership, the structure and the number of floors of
the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating to structure and thenumber of floors:
SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level.
For example: B2F9: Two floors below ground level and nine floors above ground level.
5. Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data is calculated using the-47-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

weighted-average based on acquisition prices as of April 30, 2012, and is rounded down to the nearest first decimal place.
6. Probable Maximum Loss (PML) data is based on a survey provided by NKSJ Risk Management, Inc. as of February 2012. The Portfolio PML is the data
based on 82 properties and does not include KDX Omori Building which was sold on May 11, 2012.
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%).
8. The completion date of the existing tower is shown for the completion date of KDX Shin-Yokohama 381 Building. Upon calculating the weighted-average
portfolio age, the completion date (April 2009) for the KDX Shin-Yokohama 381 Building Annex Tower is not considered.
9. KDX Kobayashi Doshomachi Building includes the term leasehold interest with a special agreement to transfer building.

-48-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(ii) Capital Expenditure① Planned capital expenditures
Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the fifteenth fiscal period (May 1,2012 to October 31, 2012) are as follows. Planned capital expenditure may include portions classified into expenses for accounting purposes.

Property Name

Schedule

Purpose(Location)
KDX Higashi-Shinagawa Building

Air conditioning system

May 2012 to(Shinagawa-ku, Tokyo)

construction, other

October 2012

Sendai Nikko Building

Air conditioning system(Sendai, Miyagi)

construction, other

KDX Nishi-Gotanda Building

Air conditioning system(Shinagawa-ku, Tokyo)

construction, other

Nagoya Ekimae Sakura-dori Building

Air conditioning system(Nagoya, Aichi)

construction, other

KDX Shin-Yokohama 381 Building(Yokohama, Kanagawa)

Upgrade of external walls, other

KDX Nishi-Shinjuku Building

Air conditioning system(Shinjuku-ku, Tokyo)

construction, other

KDX Kayabacho Building(Chuo-ku, Tokyo)

Upgrade of common areas, other

Nagoya Nikko Shoken Building

Upgrade 7th and basement floor,(Nagoya, Aichi)

other

KDX Yoyogi Building

Air conditioning system(Shibuya-ku, Tokyo)

construction, otherTachikawa Ekimae Building

Air conditioning system(Tachikawa, Tokyo)

construction, other

KDX Niigata Building

Air conditioning system(Niigata, Niigata)construction, other-49-

Planned Amount of Capital Expenditure(Millions of Yen)
Paid in the Fiscal Total Amount
Total
Period Under
Previously
Review
Paid
136

-

-

As above120

As above90

As above61

As above51--

As above50--

As above48--

As above45--

As above36--

As above33--

As above

21

-

-

1
-

1
-

3

3

KENEDIX REALTY INVESTMENT CORPORATION (8972)② Capital Expenditures during the Fiscal Period Under Review (fiscal period ended April 30, 2012)
The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review (fiscal period
ended April 30, 2012), the Investment Corporation completed work across its entire portfolio totaling ¥1,083 million. This total comprised of¥918 million in capital expenditures and ¥165 million for repairs, maintenance and renovation expenses.
Property Name
(Location)
KDX Hakozaki Building

Air conditioning system construction, other(Chuo-ku, Tokyo)
Hiei Kudan-Kita Building(Chiyoda-ku, Tokyo)
KDX Higashi-Shinagawa Building(Shinagawa-ku, Tokyo)
KDX Shinjuku 286 Building(Shinjuku-ku, Tokyo)
KDX Shinbashi Building(Minato-ku, Tokyo)
KDX Hamamatsucho Dai-2 Building(Minato-ku, Tokyo)
Kitananajo SIA Building(Sapporo, Hokkaido)
Kanazawa Nikko Building(Kanazawa, Ishikawa)
KDX Kayabacho Building(Chuo-ku, Tokyo)
KDX Nishi-Shinjuku Building(Shinjuku-ku, Tokyo)
KDX Niigata Building(Niigata, Niigata)
KDX Hon-Atsugi Building(Atsugi, Kanagawa)

Schedule

PurposeAmount of Capital Expenditures(Millions of Yen)

November 2011

104

to April 2012

Air conditioning system construction, other

As above86

Upgrade of common areas, other

As above75

Air conditioning system construction, other

As above68

Air conditioning system construction, other

As above46

Air conditioning system construction, other

As above

36

Repair of multi-story parking space, other

As above32

Air conditioning system construction, other

As above

31

Upgrade of common areas, other

As above30

Upgrade of external walls, other

As above

24

Upgrade of elevators, other

As above

19

Upgrade of external walls, other

As above

14

Others349

Portfolio Total

918

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

③ Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
The Investment Corporation formulates long-term repairs, maintenance and renovation plans on an individual investment property basis andallocates a portion of its cash flows generated during the period to a reserve for repairs, maintenance and renovation to meet large-scalerenovation over the medium- to long-terms. The following amount has been transferred to the reserve from period cash flows.
(Millions of Yen)
Fiscal period
Reserve for the end of theprevious period
Reserve for the fiscal
period under review
Reversal of reserve for the
fiscal period under review
Reserve brought forward to
the next period

Tenth Fiscal Period

Eleventh Fiscal Period

Twelfth Fiscal Period

Thirteenth Fiscal Period

Fourteenth Fiscal Period(November 1, 2009 to(May 1, 2010 to(November 1, 2010 to(May 1, 2011 to(November 1, 2011 toApril 30, 2010)

October 31, 2010)

April 30, 2011)

October 31, 2011)

April 30, 2012)

469

444

430

440

517

29

-

10

96

296

54

14

-

19

170

444

430

440

517

643

-50-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(iii) Details of the Tenants
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Total Leasable
Floor Area(㎡)(Note 1)

Total No. of
Total Leased Total No. of
Leasable
LeasedFloor Area
Residential units Residential units(㎡)(Note 2)(Note 3)(Note 4)

No. ofTenants(Note 5)

Total Rental
Occupancyand Other Operating
Ratio (%）
Revenues(Note 6)(¥thousands)(Note7)

Leasehold andSecurity Deposits(¥thousands)(Note 8)A-1

KDX Nihonbashi 313 Building

5,892.76

5,576.01

-

-

10

94.6

171,175

237,135

A-3

Higashi-Kayabacho Yuraku Building

4,413.17

4,413.17

-

-

7

100.0

166,017

232,417A-4

KDX Hatchobori Building

3,323.83

3,323.83

-

-

6

100.0

134,300

148,613

A-5

KDX Nakano-Sakaue Building

4,389.61

4,313.32

18

17

25

98.3

84,857

95,796

A-6

Harajuku F.F. Building

3,068.36

3,068.36

-

-

3

100.0

108,402

169,103

A-7

FIK Minami Aoyama

1,814.56

1,814.56

-

-

9

100.0

67,863

103,752

A-8

Kanda Kihara Building

1,947.40

1,947.40

-

-

9

100.0

67,778123,204

A-13

KDX Kojimachi Building

3,792.64

3,792.64

-

-

10

100.0

152,663

246,031

A-14

KDX Funabashi Building

3,835.77

3,835.77

-

-

22

100.0

102,389

125,210

A-15

KDX Hamacho Building

3,105.68

2,951.06

-

-

9

95.0

99,883

106,145

A-16

Toshin 24 Building

6,618.81

6,618.81

-

-

19

100.0

190,096

245,882

A-17

KDX Ebisu Building

3,077.61

3,077.61

-

-

7

100.0

143,891

249,876

A-18

KDX Omori Building

4,945.03

4,945.03

-

-

11

100.0

162,982

218,018

A-19

KDX Hamamatsucho Building

2,724.35

2,724.35

-

-

8

100.0

106,461

137,148

A-20

KDX Kayabacho Building

3,019.95

3,019.95

-

-

6

100.0

88,387

100,924

A-21

KDX Shinbashi Building

1,693.63

1,685.02

-

-

7

99.5

91,025

123,121

A-22

KDX Shin-Yokohama Building

4,799.71

4,700.90

-

-

19

97.9

95,137161,291

A-23

KDX Yotsuya Building

2,530.71

2,530.71

-

-

4

100.0

92,914142,123

A-26

KDX Kiba Building

2,452.91

2,452.91

-

-

6

100.0

63,10875,583

A-27

KDX Kajicho Building

2,564.11

2,564.11

-

-

10

100.0

81,93598,540A-28

KDX Nogizaka Building

1,250.76

1,250.76

1

1

6

100.0

24,48034,700A-29

KDX Higashi-Shinjuku Building

5,930.96

5,913.94

-

-

6

99.7

98,951

120,647

A-30

KDX Nishi-Gotanda Building

3,881.58

3,881.58

-

-

5

100.0

154,279

211,227

A-31

KDX Monzen-Nakacho Building

2,010.48

2,010.48

-

-

5

100.0

50,62153,367A-32

KDX Shiba-Daimon Building

5,984.71

5,984.71

-

-

9

100.0

179,454

233,247

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

3

100.0

68,712

105,649

A-34

KDX Hon-Atsugi Building

2,747.28

2,747.28

-

-

10

100.0

61,73687,259A-35

KDX Hachioji Building

2,178.61

2,178.61

-

-

8

100.0

50,07147,023A-37

KDX Ochanomizu Building

5,881.47

5,881.47

-

-

6

100.0

201,312239,692

A-38

KDX Nishi-Shinjuku Building

1,595.21

1,413.49

-

-

7

88.6

43,41955,846

A-39

KDX Toranomon Building

1,966.56

1,966.56

-

-

7

100.0

106,412

185,953

A-40

Toranomon Toyo Building

6,421.29

6,107.67

-

-

11

95.1

298,136

531,074

A-41

KDX Shinjuku 286 Building

2,444.43

2,444.43

-

-

9

100.0

85,719103,655

A-45

KDX Roppongi 228 Building

1,909.08

1,242.01

-

-

6

65.1

43,631

58,188

A-46

Hiei Kudan-Kita Building

6,900.33

6,309.74

-

-

12

91.4

236,989

302,417A-47

KDX Shin-Yokohama 381 Building

8,131.89

7,437.29

-

-

38

91.5

156,726

222,425

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

5,124.98

5,124.98

-

-

1

100.0

144,093

155,091

A-49

Nissou Dai-17 Building

2,739.62

2,366.99

-

-

5

86.4

56,947

65,112

A-50

Ikejiri-Oohashi Building

2,454.80

2,454.80

-

-

7

100.0

46,327

81,286A-51

KDX Hamacho Nakanohashi
Building

2,239.13

2,239.13

-

-

9

100.0

62,39386,420A-52

KDX Kanda Misaki-cho Building

1,334.76

1,334.76

-

-

8

100.0

36,47745,898

A-55

Shin-toshin Maruzen Building

1,922.78

1,922.78

-

-

5

100.0

52,806

94,963A-56

KDX Jimbocho Building

2,321.80

2,321.80

-

-

3

100.0

68,98396,431A-57

KDX Gobancho Building

1,650.58

1,650.58

-

-

7

100.0

53,23863,804A-59

KDX Iwamoto-cho Building

1,524.44

1,524.44

3

3

10

100.0

51,83953,433

A-60

KDX Harumi Building

9,294.00

6,538.04

-

-

6

70.3

124,709

235,735

A-61

KDX Hamamatsucho Dai-2 Building

1,953.50

1,711.29

-

-

7

87.6

61,79386,052-51-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

A-62

Koishikawa TG Building

3,944.26

3,944.26

-

-

5

100.0

130,776

165,511

A-63

Gotanda TG Building

3,166.56

3,166.56

-

-

10

100.0

88,908130,319

A-64

KDX Nihonbashi 216 Building

1,615.20

1,615.20

-

-

8

100.0

57,80999,194A-66

KDX Shinjuku Building

5,887.35

5,752.26

-

-

21

97.7

239,173

314,884

A-67

KDX Ginza 1chome Building

3,573.59

3,573.59

-

-

5

100.0

143,335

178,693

A-68

KDX Nihonbashi Honcho Building

3,998.39

3,998.39

-

-

8

100.0

127,452

204,126

A-71

KDX Iidabashi Building

4,429.22

4,429.22

-

-

7

100.0

154,356

306,002

A-72

KDX Higashi-Shinagawa Building

7,108.35

6,340.40

-

-

5

89.2

167,338

219,598

A-73

KDX Hakozaki Building

3,992.60

3,992.60

-

-

8

100.0

97,224

164,132

A-74

KDX Shin-Nihonbashi Building

2,658.79

2,658.79

-

-

10

100.0

80,402

112,006

A-75

Kabutocho Nikko Building

7,833.19

7,833.19

-

-

1

100.0

245,667

600,127

A-76

Ikebukuro Nikko Building

1,984.47

1,984.47

-

-

2

100.0

50,456105,144

A-77

Kabutocho Nikko Building II

1,395.78

1,395.78

-

-

4

100.0

37,55582,526

A-78

Tachikawa Ekimae Building

1,612.13

1,612.13

-

-

5

100.0

44,90786,432

A-12

Portus Center Building

11,581.92

10,362.22

-

-

27

89.5

279,501

353,705

A-24

KDX Minami Semba Dai-1 Building

3,108.16

2,672.28

-

-

10

86.0

56,04565,644

A-25

KDX Minami Semba Dai-2 Building

2,693.37

2,435.32

-

-

21

90.4

49,11440,159A-36

KDX Niigata Building

4,063.36

2,604.66

-

-

20

64.1

49,854

52,149

A-42

Karasuma Building

8,745.05

8,745.05

-

-

40

100.0

210,055

280,221

A-44

KDX Sendai Building

3,958.68

3,828.31

-

-

30

96.7

83,485

188,446

A-53

KDX Hakata-Minami Building

9,970.28

8,569.70

-

-

47

86.0

151,006

183,588

A-54

KDX Kitahama Building

3,995.50

3,565.58

-

-

10

89.2

69,904

79,400A-58

KDX Nagoya Sakae Building

6,923.12

6,923.12

-

-

16

100.0

184,252

213,436

A-69

KDX Kobayashi-Doshomachi Building

7,072.24

6,762.62

-

-

12

95.6

185,070

247,846

A-70

Kitananajo SIA Building

3,788.73

3,788.73

-

-

19

100.0

101,262

108,517

A-79

Nagoya Ekimae Sakura-dori Building

7,934.59

7,365.77

-

-

17

92.8

216,532

492,587

A-80

Nagoya Nikko Shoken Building

8,050.60

7,462.50

-

-

9

92.7

148,107

276,779

A-81

Sendai Nikko Building

2,539.01

1,915.21

-

-

4

75.4

32,656

70,771

A-82

View Flex Umeda Building

4,986.24

4,762.89

-

-

10

95.5

20,362100,007306,208.90

291,168.47

22

21

814

95.1

8,394,119

12,318,493

2,046.79

1,948.31

20

19

19

95.2

41,303

14,245100.0

149,948

50,580100.0

32,50810,02895.0

91,396

24,731

1(Note9)2(Note10)

Residence Charmante Tsukishima

7,711.14

7,711.14

140

140

B-34

Gradito Kawaguchi

1,619.34

1,619.34

66

66

B-18

Venus Hibarigaoka

12,829.64

12,189.38

159

151

120

Subtotal of Residential Properties (4 properties)

24,206.91

23,468.17

385

376

142

96.9

315,156

99,584

C-1

Frame Jinnan-zaka

4,653.40

4,653.40

-

-

12

100.0

269,892

280,897

C-2

KDX Yoyogi Building

1,182.14

1,182.14

-

-

11

100.0

67,993

108,150

Subtotal of Central Urban Retail Properties (2 properties)

5,835.54

5,835.54

-

-

23

100.0

337,885

389,047

4,338.61

4,338.61

-

-

2

100.0

43,490130,776

4,338.61

4,338.61

-

-

2

100.0

43,490130,776

397

981(Note11)95.4

9,090,653

12,937,902

CentralTokyo
Urban Retail Metropolitan
Properties
Area

OthersCourt Mejiro

No. ofTenants(Note 5)

B-19

Other
Regional
Areas

Leasehold andSecurity Deposits(¥thousands)(Note 8)Property Name

B-3

Residential
Properties

Total Rental
Occupancyand Other Operating
Ratio (%）
Revenues(Note 6)(¥thousands)(Note7)

No.

Subtotal of Office Buildings (76 properties)
Tokyo
Metropolitan
Area

Total No. of
Total No. of
Total Leased
Leasable
LeasedFloor Area
Residential units Residential units(㎡)(Note 2)(Note 3)(Note 4)

Total Leasable
Floor Area(㎡)(Note 1)

Other
Regional
Areas

D-1

Kanazawa Nikko Building

Subtotal of Others (1 property)
Total of 83 properties
Occupancy Ratio over the Past Five Years

340,589.96
October 31, 2007

96.9%

April 30, 2008

95.9%

October 31, 2008

95.6%

April 30, 2009

95.7%

October 31, 2009

94.7%

324,810.79

-52-

407

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Total Leasable
Floor Area(㎡)(Note 1)

Property Name

April 30, 2010

94.4%

October 31, 2010

93.6%

April 30, 2011

94.6%

October 31, 2011

94.7%

April 30, 2012

95.4%

Total No. of
Total No. of
Total Leased
Leasable
LeasedFloor Area
Residential units Residential units(㎡)(Note 2)(Note 3)(Note 4)

No. ofTenants(Note 5)

Total Rental
Occupancyand Other Operating
Ratio (%）
Revenues(Note 6)(¥thousands)(Note7)

Leasehold andSecurity Deposits(¥thousands)(Note 8)Notes:
1. Total leasable floor area refers to the leasable floor area for each Property including the building (aggregate total of the leasable floor area of each building in thecase of more than one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans.
2. Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
3. The total number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential purposes.
4. The total number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end tenantsor sub-lease agreements are singed.
5. The total number of tenants refers to the actual number of end tenants for each property. However, for Residence Charmante Tsukishima, please refer to Note 9,
and for Gradito Kawaguchi, please refer to Note 10.
6. The occupancy ratio is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place.
7. Total rental and other operating revenues cover all income, including that from rental revenue, common charges, and parking space rental revenues, rounded to
the nearest one thousand yen. Total real estate business rental revenues refers to the total amount of revenues generated during the fiscal period under review
from real estate rental operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
8. Guarantee and security deposits refers to the total of the balances of security deposits held (including net security deposits in the case of discount) and guarantee
deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest thousand yen.
9. Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-term lease: until January 30, 2014) 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.
10. Gradito Kawaguchi: Because the master lessor and Haseko Livenet Inc. have concluded a rental guarantee (fixed-term lease: until March 31, 2014) building
lease contract for dwelling units (excluding first-floor shops), the total number of tenants is indicated as 2.
11. The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.

(iv) Information concerning major real estate properties
There were no major real estate properties with real estate business rental revenues exceeding 10% of total real estate business rental
revenues for the fourteenth fiscal period (fiscal period ended April 30, 2012).
(v) Information concerning major tenants①Tenant which holds more than 10% of the total leased area: None
②Reference: Major end tenants
Name of End Tenant

Property Name
Kabutocho Nikko Building, Ikebukuro Nikko Building,
Kabutocho Nikko Building II, Tachikawa Ekimae Building,Nagoya Ekimae Sakura-dori Building, Nagoya Nikko Shoken
Building, Sendai Nikkko Building, Kanazawa Nikko Building
Residence Charmante Tsukishima

1

SMBC Nikko Securities, Inc.
(Note2)

2

Sekiwa Real Estate, Ltd.

3

N / A (Note 3)
KDX Kawasaki-Ekimae Hon-cho Building
The Bank of Tokyo-Mitsubishi UFJ, Toranomon Toyo Building, Harajuku F.F. Building,Ltd.
KDX Yoyogi Building
KDX Monzen Nakacho Building,
Kodak Japan Ltd.
KDX Ochanomizu Building
Subtotal

4
5

Total Portfolio

Leased Floor
Area(As of April 30, 2012)
Percentage of Total Leased
Floor Area (Note 1)

18,984.14 ㎡

5.8%

7,711.14 ㎡

2.4%

5,124.98 ㎡

1.6%

3,478.05 ㎡

1.1%

3,121.83 ㎡

1.0%

38,420.14 ㎡

11.8%

324,810.79 ㎡

100.0%

Notes:
1. Percentage of total leased floor area refers to the floor area leased to each end tenant as a proportion of total leased floor area. Figures are rounded to thenearest first decimal place.
2. The Investment Corporation has received a notice of cancellation dated May 31, 2012 from SMBC Nikko Securities Inc. for Kabutocho Nikko Building(7,833.19 m2), with the scheduled date of termination being November 30, 2012.
3. Not disclosed due to the tenants’ request.

-53-

a0011

a0031

a0041

a0051

a0061

a0071

a0081

a0131

a0141

a0151

【Reference】

Earnings Performance for the Individual Properties for the 14th Fiscal Period (November 1, 2011 to April 30, 2012)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A01

Property NameKDX Nihonbashi
313 Building

Acquisition Date

A03

A04

A05

HigashiKDX Hatchobori KDX NakanoKayabacho
Building
Sakaue Building
Yuraku Building

a0161

a0171

a0181

a0191

a0201

a0211

※As of April 30, 2012

A06

A07

A08

A13

A14

A15

A16

A17

A18

A19

A20

A21

Harajuku F.F.
Building

FIK Minami
AoyamaKanda Kihara
Building

KDX Kojimachi
Building

KDX Funabashi
Building

KDX Hamacho
Building

Toshin 24
Building

KDX Ebisu
Building

KDX Omori
Building

KDX
Hamamatsucho
Building

KDX Kayabacho
Building

KDX Shinbashi
Building

Price Information

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 March 16, 2006 May 1, 2006 May 1, 2006 May 1, 2006 May 1, 2006 May 1, 2006 May 1, 2006
5,940
4,450
3,680
2,533
2,450
2,270
1,950
5,950
2,252
2,300
5,300
4,640
3,500
3,460
2,780
2,690
2.1%
1.6%
1.3%
0.9%
0.9%
0.8%
0.7%
2.1%
0.8%
0.8%
1.8%
1.6%
1.2%
1.2%
1.0%
0.9%
6,110
4,348
3,343
2,447
2,442
2,247
1,848
5,627
2,397
2,260
5,121
4,559
3,361
3,245
2,843
2,693
6,380
5,190
3,440
2,290
2,980
2,120
1,870
4,400
1,970
2,370
4,160
4,200
3,790
3,180
2,690
2,700
2.4%
2.0%
1.3%
0.9%
1.1%
0.8%
0.7%
1.7%
0.7%
0.9%
1.6%
1.6%
1.4%
1.2%
1.0%
1.0%
10
7
6
25
3
9
9
10
22
9
19
7
11
8
6
7
5,892.76
4,413.17
3,323.83
4,389.61
3,068.36
1,814.56
1,947.40
3,792.64
3,835.77
3,105.68
6,618.81
3,077.61
4,945.03
2,724.35
3,019.95
1,693.63
5,576.01
4,413.17
3,323.83
4,313.32
3,068.36
1,814.56
1,947.40
3,792.64
3,835.77
2,951.06
6,618.81
3,077.61
4,945.03
2,724.35
3,019.95
1,685.02

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

94.6%
85.2%
71.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Lease Information

As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007

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

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

98.3%
84.1%
100.0%
96.5%
100.0%
91.3%
92.3%
96.5%
100.0%
100.0%

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

100.0%
100.0%
100.0%
100.0%
77.1%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
93.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
91.9%
97.1%
86.7%
88.6%
98.2%
98.2%
97.1%

100.0%
98.7%
100.0%
98.5%
100.0%
100.0%
100.0%
98.4%
100.0%
100.0%

95.0%
95.0%
100.0%
93.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
96.2%
84.7%
72.7%
84.1%
93.3%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
83.4%
100.0%
100.0%
83.4%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
94.5%
100.0%
100.0%
100.0%

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

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

99.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Income and Retained Earnings Information for the 14th Fiscal Period

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

171,175

166,017

134,300

84,857

108,40267,86367,778

152,663

102,389

99,883

190,096

143,891

162,982

106,461

88,38791,025

Rental revenues

156,987

151,454

118,613

72,201

99,10462,67162,477132,177

88,62073,969159,161

126,050

141,623

97,43079,30380,113

Other operating revenues

14,187

14,562

15,687

12,655

9,298

5,191

5,301

20,485

13,76925,91330,935

17,84021,359

9,030

9,084

10,912

54,98935,69933,52734,02925,28917,165

17,44344,30732,86429,741

51,23435,43548,47525,78929,26524,443

Property management fees

14,99013,138

12,632

8,959

7,830

5,148

6,169

10,70613,134

9,239

17,916

10,03016,945

7,757

7,564

6,899

Taxes

20,856

9,689

9,346

8,062

8,522

5,911

4,248

18,030

7,604

7,453

12,61911,35013,006

9,531

6,672

10,416

Utilities

12,646

8,247

9,123

6,875

5,887

4,479

4,935

10,451

8,552

6,116

17,2769,854

14,441

5,634

5,559

5,629

Repairs and maintenance costs

1,371

2,943

1,097

2,810

768

633

1,434

2,497

2,135

2,873

558

2,894

2,486

376

3,329

449

231

161

144

178

108

58

64

162

154

116

243

124

204

94

107

84

Trust fees and other expenses

4,893

1,519

1,182

7,145

2,171

934

589

2,458

1,283

3,943

2,621

1,182

1,390

2,394

6,033

963

③ＮＯＩ （＝①-②） (\ Thousands)

116,185

130,317

100,773

50,827

83,11350,69850,335

108,355

69,524

70,141

138,861

108,455

114,507

80,672

59,122

66,582④Depreciation (\ Thousands)

27,31027,151

17,032

15,370

9,234

6,351

8,928

19,684

19,32821,01635,617

18,60225,60922,59916,514

5,571⑤Rental operating income （＝③-④） (\ Thousands)

88,874

103,165

83,74035,45773,87944,34741,406

88,67050,19649,124103,244

89,852

88,89758,07242,60761,011②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)

6,584

2,457

3,488

5,545

190

1,650

1,249

1,380

410

21,041

608

1,380

1,872

4,465

30,02046,857⑦ＮＣＦ （＝③-⑥） (\ Thousands)

109,600

127,860

97,28545,281

82,92349,04849,085

106,975

69,11449,099138,253

107,075

112,635

76,207

29,102

19,725

Expense ratio （＝②／①）

32.1%
41,712
5,864
3.43%

21.5%
19,378
6,047
3.64%

25.0%
18,693
4,797
3.57%

40.1%
16,124
2,769
3.26%

23.3%
17,045
3,908
3.61%

25.3%
11,822
2,419
3.57%

25.7%
8,498
2,410
3.56%

29.0%
36,060
5,326
3.49%

32.1%
14,703
3,508
3.43%

29.8%
14,905
3,469
3.47%

27.0%
25,845
6,713
3.53%

24.6%
22,699
5,149
3.58%

29.7%
26,012
5,663
3.47%

24.2%
19,063
3,819
3.59%

33.1%
13,344
3,010
3.41%

26.9%
20,832
3,216
3.53%

214,470
17,872

107,050
8,920

158,190
13,182

141,400
11,783

160,510
13,37571,7905,982

80,4306,702

180,970
15,080160,670
13,389134,170
11,180217,670
18,139147,940
12,328317,870
26,489135,060
11,255120,000
10,000111,266
9,272

Property tax for the year 2012or 2011(\ Thousands)
Reference

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

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

We have changed the order of the Properties Roster to Type, Area and No. starting from the fourteenth fiscal period under review.

-54-a0221

a0231

a0261

a0271

a0281

a0291

a0301

a0311

a0321

a0331

【Reference】

Earnings Performance for the Individual Properties for the 14th Fiscal Period (November 1, 2011 to April 30, 2012)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0401

A26

A27

Property NameKDX Kiba
Building

KDX Kajicho
Building

KDX Nogizaka
KDX HigashiKDX NishiKDX MonzenKDX ShibaBuilding
Shinjuku Building Gotanda Building Nakacho Building Daimon Building

Acquisition Date

May 1, 2006

May 1, 2006

June 20, 2006

July 3, 2006

July 14, 2006 September 1, 2006 December 1, 2006 January 19, 2007 March 1, 2007 March 1, 2007 March 1, 2007 March 1, 2007 April 2, 2007

2,520
0.9%
2,451
2,270
0.9%
19
4,799.71
4,700.90

1,950
0.7%
1,979
2,470
0.9%
4
2,530.71
2,530.71

1,580
0.6%
1,562
1,430
0.5%
6
2,452.91
2,452.91

2,350
0.8%
2,386
2,320
0.9%
10
2,564.11
2,564.11

1,065
0.4%
1,124
723
0.3%
6
1,250.76
1,250.76

2,950
1.0%
3,196
3,320
1.3%
6
5,930.96
5,913.94

4,200
1.5%
4,045
3,780
1.4%
5
3,881.58
3,881.58

1,400
0.5%
1,402
1,170
0.4%
5
2,010.48
2,010.48

6,090
2.1%
6,199
4,950
1.9%
9
5,984.71
5,984.71

2,000
0.7%
2,121
1,850
0.7%
3
1,792.54
1,792.54

1,305
0.5%
1,172
1,070
0.4%
10
2,747.28
2,747.28

1,155
0.4%
1,282
831
0.3%
8
2,178.61
2,178.61

6,400
2.2%
6,641
6,540
2.5%
6
5,881.47
5,881.47

1,500
0.5%
1,544
1,130
0.4%
7
1,595.21
1,413.49

4,400
1.5%
4,791
3,460
1.3%
7
1,966.56
1,966.56

9,850
3.4%
9,853
10,1003.8%
116,421.29
6,107.67

97.9%
93.1%
93.1%
74.0%
86.3%
93.1%
93.1%
83.2%
100.0%
99.6%

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

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.0%
100.0%

100.0%
100.0%
100.0%
84.2%
75.1%
94.3%
100.0%
100.0%
100.0%
85.8%

100.0%
100.0%
56.2%
78.1%
78.1%
100.0%
87.7%
100.0%
100.0%
87.7%

99.7%
83.3%
100.0%
100.0%
100.0%
100.0%
97.0%
86.2%
82.2%
92.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
91.9%
100.0%
100.0%
100.0%

100.0%
100.0%
84.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
84.4%

100.0%
100.0%
100.0%
100.0%
97.3%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.7%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.6%
100.0%
100.0%

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

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
90.2%
100.0%
100.0%

88.6%
100.0%
87.6%
87.6%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
89.3%
78.6%
78.6%
100.0%
100.0%

95.1%
100.0%
100.0%
95.4%
93.9%
95.4%
100.0%
100.0%
99.1%
97.5%

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

95,137

92,914

63,10881,93524,48098,951

154,279

50,621

179,454

68,712

61,73650,071

201,31243,419106,412298,136

Rental revenues

83,16884,622

55,61674,01821,164

89,412

134,071

42,097

163,622

61,10753,663

43,257

192,315

38,15999,355285,798

Other operating revenues

11,968

8,292

7,491

7,917

3,316

9,539

20,207

8,524

15,831

7,605

8,072

6,813

8,996

5,260

7,056

12,33733,15821,806

21,41019,661

10,04343,50031,122

14,04944,362

15,11532,40620,19142,78919,63323,26568,527

Property management fees

12,459

9,183

5,570

7,342

3,121

12,13912,1684,894

15,530

5,859

6,484

10,245

12,384

4,514

6,500

20,968

Taxes

6,809

6,592

5,012

5,567

3,500

14,374

9,546

3,318

12,119

3,226

3,912

4,229

15,686

4,564

9,936

29,191

Utilities

8,181

5,139

4,374

4,836

2,561

11,150

8,386

5,303

12,448

4,088

5,027

4,689

10,475

3,665

4,260

13,133

Repairs and maintenance costs

2,911

-

2,473

907

680

1,638

527

423

2,668

337

15,898

80

2,110

5,482

65

2,882

157

88

79

87

43

217

148

76

195

52

106

72

220

59

66

238

Trust fees and other expenses

2,639

802

3,900

919

135

3,980

344

33

1,402

1,551

976

872

1,913

1,346

2,435

2,114

③ＮＯＩ （＝①-②） (\ Thousands)

61,978

71,107

41,69762,274

14,43755,450123,157

36,572135,091

53,59629,32929,879158,523

23,786

83,147

229,608④Depreciation (\ Thousands)

22,013

10,12813,148

12,6985,536

19,66929,206

9,509

29,0098,017

25,042

9,972

26,832

6,458

13,224

12,311⑤Rental operating income （＝③-④） (\ Thousands)

39,96460,97928,54949,5758,900

35,781

93,95027,062106,082

45,578

4,287

19,907

131,690

17,327

69,922

217,297

Price Information

A23

Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)

A32

a0391

KDX Yotsuya
Building

Appraisal value at the end of period (\ Millions)

A31

a0381

A22

Net book value (\ Millions)

A30

a0371

KDX ShinYokohama
Building

Percentage of total portfolio

A29

a0351

Property No.

Acquisition price (\ Millions)

A28

a0341

※As of April 30, 2012

A33

A34

A35

A37

KDX
Okachimachi
Building

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX
Ochanomizu
Building

A38

A39

A40

KDX NishiKDX Toranomon Toranomon Toyo
Shinjuku Building
Building
Building

April 2, 2007 April 17, 2007 June 1, 2007

Occupancy ratio
Lease Information

As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007

Income and Retained Earnings Information for the 14th Fiscal Period②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)

6,398

-

3,545

938

6,522

7,366

560

-

6,510

2,782

14,124

3,365

4,799

24,968-

6,123⑦ＮＣＦ （＝③-⑥） (\ Thousands)

55,58071,10738,152

61,336

7,914

48,084

122,597

36,572

128,581

50,813

15,204

26,514

153,724△1,181

83,147

223,485

Expense ratio （＝②／①）

34.9%
14,127
3,206
3.37%

23.5%
13,183
3,347
3.60%

33.9%
10,024
2,138
3.39%

24.0%
11,135
2,943
3.59%

41.0%
7,001
794
3.24%

44.0%
28,744
3,151
3.18%

20.2%
19,093
5,661
3.67%

27.8%
6,640
1,779
3.52%

24.7%
24,237
6,419
3.58%

22.0%
6,454
2,496
3.63%

52.5%
7,825
1,858
3.01%

40.3%
8,459
1,631
3.26%

21.3%
31,372
7,343
3.65%

45.2%
9,131
1,371
3.16%

21.9%
19,872
3,868
3.64%

23.0%
58,382
10,7703.61%

152,030
12,66990,0207,501

93,6507,804

87,5907,299

49,9504,162

149,280
12,440133,200
11,100113,920
9,493

169,180
14,09855,4304,619

147,990
12,332

100,3808,365

249,810
20,81774,5606,213

70,4005,866

260,050
21,670Property tax for the year 2012or 2011(\ Thousands)
Reference

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

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

-55-

a0411

a0451

a0461

a0471

a0481

a0491

a0501

a0511

a0521

a0551

【Reference】

Earnings Performance for the Individual Properties for the 14th Fiscal Period (November 1, 2011 to April 30, 2012)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0561

a0571

a0591

a0601

a0611

a0621

※As of April 30, 2012

Property No.

A41

A45

A46

A47

A48

A49

A50

A51

A52

Property NameKDX Shinjuku
286 Building

KDX Roppongi
228 Building

Hiei Kudan-Kita
Building

KDX ShinYokohama 381
Building

KDX KawasakiEkimae Hon-cho
Building

Nissou Dai-17
Building

Ikejiri-Oohashi
Building

KDX Hamacho
Nakanohashi
Building

KDX Kanda
Misaki-cho
Building

A55

A56

Acquisition Date

June 1, 2007 January 10, 2008 February 1, 2008 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 May 1, 2008

Shin-toshin
KDX Jimbocho
Maruzen Building
Building

A57

A59

A60

A61

A62

KDX Gobancho
Building

KDX Iwamotocho Building

KDX Harumi
Building

KDX
Hamamatsucho
Dai-2 Building

Koishikawa TG
Building

June 30, 2008 September 1, 2008 November 18, 2009

Price Information

2,300
0.8%
2,392
2,140
0.8%
9
2,444.43
2,444.43

3,300
1.2%
3,434
2,160
0.8%
6
1,909.08
1,242.01

7,600
2.6%
7,649
7,380
2.8%
12
6,900.33
6,309.74

5,800
2.0%
5,888
4,050
1.5%
38
8,131.89
7,437.29

3,760
1.3%
3,792
2,990
1.1%
1
5,124.98
5,124.98

2,710
0.9%
2,618
1,600
0.6%
5
2,739.62
2,366.99

2,400
0.8%
2,452
1,500
0.6%
7
2,454.80
2,454.80

2,310
0.8%
2,347
1,700
0.6%
9
2,239.13
2,239.13

1,380
0.5%
1,377
981
0.4%
8
1,334.76
1,334.76

2,110
0.7%
2,160
1,570
0.6%
5
1,922.78
1,922.78

2,760
1.0%
2,900
1,870
0.7%
3
2,321.80
2,321.80

1,951
0.7%
1,987
1,500
0.6%
7
1,650.58
1,650.58

1,864
0.7%
1,795
1,350
0.5%
10
1,524.44
1,524.44

10,250
3.6%
9,701
8,230
3.1%
6
9,294.00
6,538.04

2,200
0.8%
2,288
1,860
0.7%
7
1,953.50
1,711.29

3,080
1.1%
3,133
3,150
1.2%
5
3,944.26
3,944.26

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

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

91.4%
98.8%
95.9%
85.3%
91.9%
100.0%
100.0%
100.0%
100.0%
-

91.5%
93.0%
89.5%
100.0%
100.0%
100.0%
92.1%
97.5%
94.6%
-

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

86.4%
86.4%
86.4%
94.9%
94.9%
100.0%
100.0%
100.0%
100.0%-

100.0%
54.9%
74.4%
91.3%
100.0%
91.3%
82.6%
100.0%
91.3%-

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

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

100.0%
81.2%
100.0%
100.0%
100.0%
100.0%
64.3%
80.9%
100.0%-

100.0%
100.0%
74.8%
94.4%
85.0%
100.0%
100.0%
59.8%
0.0%
-

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

100.0%
100.0%
100.0%
100.0%
100.0%
75.0%
100.0%
92.7%
-

70.3%
88.9%
98.2%
98.2%
98.2%
100.0%
100.0%
100.0%-

87.6%
100.0%
100.0%
100.0%
87.5%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%-

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

85,71943,631

236,989

156,726

144,093

56,947

46,32762,39336,47752,806

68,98353,23851,839124,709

61,793130,776

Rental revenues

71,991

39,322

214,277

129,248

134,066

48,78035,78852,091

33,69945,77063,04048,36848,064

110,697

56,111

114,638

Other operating revenues

13,727

4,309

22,712

27,47810,027

8,167

10,53910,302

2,777

7,035

5,942

4,870

3,775

14,011

5,682

16,13826,21017,832

84,77850,35137,021

20,49826,33919,786

19,205

18,466

17,695

12,524

10,92870,31918,81539,055

Property management fees

7,265

4,824

29,704

13,125

13,826

7,390

5,150

6,750

3,688

5,930

5,414

4,871

3,979

28,867

4,674

14,922

Taxes

8,528

7,680

26,714

13,357

7,477

5,374

6,606

5,820

2,654

4,841

7,241

4,309

3,124

19,598

8,514

10,668

Utilities

7,185

4,459

16,753

14,371

13,864

5,898

3,985

4,539

2,272

2,977

4,354

3,043

2,284

18,588

3,921

11,188

Repairs and maintenance costs

340

634

5,441

3,333

941

373

179

920

10,390

3,039

434

152

9

263

652

981

Insurance

102

60

289

272

178

111

94

98

45

69

78

51

44

352

66

170

Trust fees and other expenses

2,788

173

5,875

5,891

731

1,352

10,323

1,657

154

1,607

172

96

1,486

2,649

987

1,124

③ＮＯＩ （＝①-②） (\ Thousands)

59,50925,798152,211

106,375

107,072

36,44919,98842,607

17,272

34,34051,28740,71440,91054,38942,97791,721④Depreciation (\ Thousands)

8,432

4,988

15,64847,48530,73015,613

10,955

12,053

4,551

7,804

10,307

10,377

13,09777,286

4,652

14,398⑤Rental operating income （＝③-④） (\ Thousands)

51,076

20,810136,562

58,89076,342

20,835

9,032

30,553

12,72026,53640,97930,337

27,813△22,896

38,32577,322⑥Capital expenditures (\ Thousands)

68,961

2,929

86,00048,067

5,130

1,869

1,120

1,540

4,294

7,187

191

10,937--36,392

582⑦ＮＣＦ （＝③-⑥） (\ Thousands)△9,451

22,86966,21158,308

101,942

34,58018,86841,067

12,977

27,15351,09529,77740,91054,3896,585

91,139

Expense ratio （＝②／①）

30.6%
17,056
2,963
3.46%

40.9%
15,363
1,416
3.25%

35.8%
53,428
7,942
3.35%

32.1%
25,861
5,369
3.43%

25.7%
14,435
5,125
3.56%

36.0%
11,081
1,906
3.35%

56.9%
13,212
1,353
2.92%

31.7%
11,640
2,142
3.43%

52.6%
5,308
1,096
3.01%

35.0%
10,296
1,778
3.37%

25.7%
14,483
2,454
3.56%

23.5%
8,620
1,917
3.60%

21.1%
6,251
1,892
3.65%

56.4%
39,197
3,655
2.93%

30.4%
17,031
2,138
3.46%

29.9%
21,3404,540
3.47%

169,080
14,09054,6804,556

296,707
24,725

216,990
18,082

157,210
13,10088,480
7,373

158,270
13,189130,030
10,835

46,1403,845

70,9005,908

98,3998,199

55,2304,602

19,6801,640

110,320
9,193

81,7106,809

230,330
19,194

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

Lease Information

As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007

Income and Retained Earnings Information for the 14th Fiscal Period②Property-related expenses (\ Thousands)

Property tax for the year 2012or 2011(\ Thousands)
Reference

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

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

-56-

a0631

a0641

a0661

a0671

a0681

a0711

a0721

a0731

a0741

a0751

【Reference】

Earnings Performance for the Individual Properties for the 14th Fiscal Period (November 1, 2011 to April 30, 2012)：182days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0771

a0781

a0121

a0241

a0251

Other Regional Areas

Property No.

A63

A64

A66

Property Name

Gotanda TG
Building

KDX Nihonbashi
216 Building

KDX Shinjuku
Building

Acquisition Date

a0761

※As of April 30, 2012

A67

A68

A71

A72

A73

A74

A75

KDX Ginza
KDX Nihonbashi
1chome Building Honcho Building

KDX Iidabashi
Building

KDX HigashiShinagawa
Building

KDX Hakozaki
Building

KDX ShinNihonbashi
Building

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

A76

A77

A78

A12

A24

A25

Portus Center
Building

KDX Minami
Semba Dai-1
Building

KDX Minami
Semba Dai-2
Building

July 22, 2011 December 26, 2011 December 26, 2011 December 26, 2011 December 26, 2011 September 21, 2005 May 1, 2006

May 1, 2006

Kabutocho Nikko Ikebukuro Nikko Kabutocho Nikko
Tachikawa
Building
Building
Building Ⅱ
Ekimae Building

Price Information

July 22, 2011

July 22, 2011

July 22, 2011

2,620
0.9%
2,816
2,590
1.0%
10
3,166.56
3,166.56

2,010
0.7%
1,970
1,930
0.7%
8
1,615.20
1,615.20

6,800
2.4%
6,883
6,600
2.5%
21
5,887.35
5,752.26

4,300
1.5%
4,302
4,760
1.8%
5
3,573.59
3,573.59

4,000
1.4%
4,013
4,300
1.6%
8
3,998.39
3,998.39

4,670
1.6%
4,697
4,830
1.8%
7
4,429.22
4,429.22

4,590
1.6%
4,817
4,800
1.8%
5
7,108.35
6,340.40

2,710
0.9%
2,910
2,850
1.1%
8
3,992.60
3,992.60

2,300
0.8%
2,294
2,480
0.9%
10
2,658.79
2,658.79

11,2703.9%
11,364
13,5005.1%
17,833.19
7,833.19

1,653
0.6%
1,675
1,690
0.6%
2
1,984.47
1,984.47

1,280
0.4%
1,294
1,550
0.6%
4
1,395.78
1,395.78

1,267
0.4%
1,290
1,330
0.5%
5
1,612.13
1,612.13

5,570
1.9%
4,584
4,600
1.7%
27
11,581.92
10,362.22

1,610
0.6%
1,456
1,020
0.4%
10
3,108.16
2,672.28

1,560
0.5%
1,369
1,050
0.4%
21
2,693.37
2,435.32

100.0%
80.0%
80.0%
77.1%
57.8%
-

100.0%
100.0%
100.0%
75.0%
87.5%
-

97.7%
100.0%
100.0%
93.7%
93.8%
-

100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%-

100.0%
100.0%-

89.2%
100.0%-

100.0%
83.3%-

100.0%
100.0%-

100.0%-

100.0%-

100.0%-

100.0%
-

89.5%
90.1%
95.8%
93.9%
88.5%
88.5%
93.4%
100.0%
100.0%
94.6%

86.0%
94.7%
95.6%
83.1%
83.1%
84.4%
96.9%
91.6%
87.2%
100.0%

90.4%
94.3%
100.0%
100.0%
94.1%
82.1%
88.1%
91.2%
94.1%
93.6%

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days

182days127days127days127days127days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

88,90857,809239,173

143,335

127,452

154,356

167,338

97,22480,402

245,667

50,45637,55544,907

279,501

56,045

49,114

Rental revenues

81,561

52,338207,748

132,895

119,489

138,387

145,905

90,186

74,241

237,447

44,89833,83638,229231,824

43,57339,225

Other operating revenues

7,346

5,471

31,425

10,4397,963

15,96821,432

7,038

6,160

8,219

5,557

3,719

6,677

47,677

12,471

9,888

32,26014,71678,08735,60034,76231,85137,965

21,11615,03421,758

8,149

7,705

8,223

124,610

22,227

17,463

Property management fees

7,837

5,554

22,583

9,495

9,377

12,26917,789

7,606

7,789

20,219

3,812

4,299

4,342

73,113

6,973

5,506

Taxes

8,992

4,819

30,032

13,20815,144

4

-

-

4

5

5

5

5

25,498

6,843

5,604

Utilities

6,006

3,213

20,796

8,360

5,886

16,486

15,601

8,254

5,966

-

3,552

2,868

3,308

18,998

6,348

5,054

Repairs and maintenance costs

4,065

51

1,876

529

1,207

302

2,259

1,251

419

921

233

140

-

3,170

665

247

128

58

301

136

137

158

253

182

105

264

74

44

55

2,140

117

101

Trust fees and other expenses

5,229

1,018

2,497

3,870

3,009

2,630

2,060

3,820

749

347

471

347

512

1,689

1,279

948

③ＮＯＩ （＝①-②） (\ Thousands)

56,64843,093161,085

107,735

92,690122,504

129,373

76,10865,368

223,908

42,30729,85036,683

154,890

33,81731,651④Depreciation (\ Thousands)

12,99911,227

16,023

11,2789,169

15,51520,906

19,74821,52752,814

4,034

8,076

2,140

54,154

13,736

13,199⑤Rental operating income （＝③-④） (\ Thousands)

43,64831,866145,061

96,456

83,521

106,989

108,466

56,35943,840171,094

38,272

21,77434,542

100,736

20,081

18,451⑥Capital expenditures (\ Thousands)

5,157

115

11,370

583

5,901

6,922

75,381

104,157

1,069

1,676

-

-

3,097

431

6,059

6,609

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

51,49142,978

149,715

107,151

86,789115,582

53,991△28,049

64,299222,232

42,30729,85033,586

154,459

27,75825,041

Expense ratio （＝②／①）

36.3%
17,982
2,970
3.34%

25.5%
9,638
2,059
3.56%

32.6%
60,067
8,168
3.42%

24.8%
26,415
5,123
3.57%

27.3%
30,289
4,492
3.53%

20.6%
23,430
5,650
3.66%

22.7%
35,756
6,055
3.62%

21.7%
25,911
3,537
3.64%

18.7%
15,654
2,974
3.70%

8.9%
66,505
9,583
3.90%

16.2%
16,891
1,893
3.75%

20.5%
9,612
1,375
3.66%

18.3%
14,584
1,665
3.71%

44.6%
51,002
8,865
3.17%

39.7%
13,078
1,833
3.27%

35.6%
11,6801,648
3.36%

207,750
17,312

31,1902,599

362,230
30,18580,6906,724

82,1806,848

117,560
9,796

256,450
21,370255,430
21,285102,390
8,532

549,760
45,813

170,320
14,193

69,160
5,763

121,540
10,128527,651
43,970140,130
11,677

122,820
10,235Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)Occupancy ratio

Lease Information

As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007

Income and Retained Earnings Information for the 14th Fiscal Period②Property-related expenses (\ Thousands)

Insurance

Property tax for the year 2012or 2011(\ Thousands)
Reference

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

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

-57-

a0361

a0421

a0441

a0531

a0541

a0581

a0691

a0701

a0791

a0801

a0811

a0821

b0031

b0191

b0341

【Reference】

Earnings Performance for the Individual Properties for the 14th Fiscal Period (November 1, 2011 to April 30, 2012)：182days

Type

Office Buildings

Residential Properties

Location

Other Regional Areas

Tokyo Metropolitan Area

Property No.

A36

A42

A44

A53

A54

A58

A69

A70

A79

A80

A81

A82

Property NameKDX Niigata
Building

Karasuma
Building

KDX Sendai
Building

KDX HakataMinami Building

KDX Kitahama
Building

KDX Nagoya
Sakae Building

KDX KobayashiDoshomachi
Building

Kitananajo SIA
Building

Nagoya Ekimae
Sakura-dori
Building

Nagoya Nikko
Shoken Building

Sendai Nikko
Building

View Flex Umeda
Building

Acquisition Date

March 1, 2007 June 1, 2007

Price Information

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)b0181※As of April 30, 2012
Other
Regional
B18

B03

B19

B34

Court Mejiro

Residence
Charmante
Tsukishima

GraditoKawaguchi

June 1, 2007 February 1, 2008 February 1, 2008 July 1, 2009 December 1, 2010 March 25, 2011 December 26, 2011 December 26, 2011 December 26, 2011 March 28, 2012 August 1, 2005 May 1, 2006

Venus
Hibarigaoka

June 30, 2006 December 8, 2005

1,305
0.5%
1,453
914
0.3%
20
4,063.36
2,604.66

5,400
1.9%
5,394
5,030
1.9%
40
8,745.05
8,745.05

2,100
0.7%
2,162
1,440
0.5%
30
3,958.68
3,828.31

4,900
1.7%
4,795
3,460
1.3%
47
9,970.28
8,569.70

2,220
0.8%
2,191
1,530
0.6%
10
3,995.50
3,565.58

7,550
2.6%
7,492
4,750
1.8%
16
6,923.12
6,923.12

2,870
1.0%
2,748
2,890
1.1%
12
7,072.24
6,762.62

2,005
0.7%
2,089
2,050
0.8%
19
3,788.73
3,788.73

7,327
2.6%
7,420
7,780
3.0%
17
7,934.59
7,365.77

4,158
1.4%
4,210
4,280
1.6%
9
8,050.60
7,462.50

950
0.3%
975
1,050
0.4%
4
2,539.01
1,915.21

2,770
1.0%
2,882
3,240
1.2%
10
4,986.24
4,762.89

1,250
0.4%
1,173
940
0.4%
19
2,046.79
1,948.31

5,353
1.9%
4,984
4,480
1.7%
1
7,711.14
7,711.14

1,038
0.4%
995
948
0.4%
2
1,619.34
1,619.34

1,800
0.6%
1,807
1,520
0.6%
120
12,829.64
12,189.38

64.1%
64.6%
66.7%
65.4%
64.3%
62.2%
73.2%
76.2%
61.0%
71.2%

100.0%
99.2%
94.2%
93.2%
93.9%
86.1%
93.0%
98.1%
98.6%
100.0%

96.7%
87.4%
99.1%
98.7%
92.8%
96.6%
91.2%
86.2%
93.7%
97.1%

86.0%
79.3%
75.4%
80.6%
86.2%
94.4%
95.8%
95.4%
95.4%
-

89.2%
84.4%
92.8%
96.4%
96.4%
96.4%
100.0%
88.1%
88.1%
-

100.0%
100.0%
93.7%
90.3%
90.3%
72.3%
-

95.6%
95.6%
91.0%
-

100.0%
100.0%
100.0%
-

92.8%
-

92.7%
-

75.4%
-

95.5%
-

95.2%
100.0%
91.3%
95.2%
95.2%
85.3%
96.1%
100.0%
95.1%
100.0%

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

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

95.0%
99.5%
96.7%
92.4%
96.3%
96.5%
98.9%
88.7%
93.0%
94.4%

Occupancy ratio
Lease Information

As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007

Income and Retained Earnings Information for the 14th Fiscal Period

Operating periods

182days

182days

182days

182days

182days

182days

182days

182days127days127days127days

34days182days

182days

182days

182days①Rental and other operating revenues (\ Thousands)

49,854210,055

83,485151,006

69,904

184,252

185,070

101,262

216,532

148,10732,656

20,362

41,303

149,948

32,50891,396

Rental revenues

43,068183,351

71,610126,415

58,109166,516

169,198

84,181

187,408

130,744

28,264

17,24137,543132,064

32,38981,613

Other operating revenues

6,785

26,704

11,875

24,59011,794

17,736

15,871

17,081

29,124

17,363

4,391

3,121

3,760

17,883

119

9,782

32,07871,57530,631

48,93130,801

55,20983,662

29,42562,69952,714

14,6003,829

10,49339,0326,380

38,803

Property management fees

10,811

20,82011,752

13,995

7,406

17,87016,273

10,501

24,253

18,969

4,002

1,848

2,920

16,557

2,437

8,075

Taxes

8,108

21,293

7,452

10,066

4,931

21,731

12,227

4,261

17,082

13,397

3,873

-

3,146

10,636

1,584

7,959

Utilities

7,320

16,891

8,081

20,235

7,937

14,74913,321

12,474

18,733

13,973

4,596

1,759

810

1,360

412

2,175

Repairs and maintenance costs

4,266

9,238

270

1,175

2,174

190

78

1,080

725

5,318

993

-

1,255

3,396

1,083

11,202②Property-related expenses (\ Thousands)

177

317

154

328

127

274

287

162

280

277

75

37

70

302

45

323

Trust fees and other expenses

1,394

3,013

2,920

3,130

8,223

392

41,474

945

1,623

778

1,058

184

2,289

6,779

818

9,068

③ＮＯＩ （＝①-②） (\ Thousands)

17,775

138,479

52,854

102,074

39,103129,043

101,407

71,836

153,833

95,39318,056

16,53330,810110,915

26,12752,592④Depreciation (\ Thousands)

12,646

29,661

19,14233,886

19,44771,35552,966

15,494

14,199

9,255

3,033

11,715

11,31245,655

10,04823,127⑤Rental operating income （＝③-④） (\ Thousands)

5,128

108,818

33,711

68,18819,65557,68748,44056,342

139,634

86,13715,022

4,818

19,49765,25916,07929,464⑥Capital expenditures (\ Thousands)

19,16914,182

9,332

31,296

3,588

-

5,170

32,170

7,062

2,310

8,523

-

11,085

11,059-160⑦ＮＣＦ （＝③-⑥） (\ Thousands)△1,394

124,297

43,52270,77735,514129,043

96,236

39,666

146,771

93,083

9,532

16,533

19,72599,856

26,12752,432

Expense ratio （＝②／①）

64.3%
15,239
1,380
2.77%

34.1%
41,628
7,112
3.39%

36.7%
14,903
2,782
3.33%

32.4%
20,121
5,164
3.42%

44.1%
10,455
2,224
3.18%

30.0%
41,827
6,393
3.47%

45.2%
25,435
5,846
3.16%

29.1%
17,042
3,532
3.49%

29.0%
68,308
7,558
3.49%

35.6%
53,567
4,969
3.36%

44.7%
15,471
1,034
3.17%

18.8%
25,803
752
3.70%

25.4%
6,293
1,471
3.56%

26.0%
21,273
4,593
3.06%

19.6%
3,168
1,196
3.68%

42.5%
16,592
2,938
3.22%

249,590
20,799229,180
19,098

192,400
16,033

140,450
11,704

167,760
13,98094,2707,855

87,3407,278

202,790
16,899737,870
61,489413,140
34,428

181,590
15,132

107,610
8,967

74,6506,220

170,810
14,23430,4802,540

339,440
28,286

Insurance

Property tax for the year 2012or 2011(\ Thousands)
Reference

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

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

A-58 KDX Nagoya Sakae Building: The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.
A-69 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 \80.7 million until August-58-

c0011

c0021

d0011

83

【Reference】

Earnings Performance for the Individual Properties for the 14th Fiscal Period (November 1, 2011 to April 30, 2012)：182days

Type

Central Urban Retail Properties Other

Location

Tokyo Metropolitan Area

Property No.

C01

C02

Other Regional
Areas
D01

Property Name

Frame Jinnanzaka

KDX Yoyogi
Building

Kanazawa Nikko
Building

Acquisition Date
Price Information

August 1, 2005 September 30, 2005 December 26, 2011
9,900
2,479
645
3.5%
0.9%
0.2%
9,816
2,514
686
9,090
1,910
1,100
3.5%
0.7%
0.4%
12
11
2
4,653.40
1,182.14
4,338.61
4,653.40
1,182.14
4,338.61

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)Total of 83
Properties

286,866
100.0% *Percentage are rounded to the first decimal place.
286,114
263,457
100.0%
981
340,589.96
324,810.79

Occupancy ratio

100.0%
89.5%
100.0%
100.0%
100.0%
93.6%
96.0%
97.9%
97.9%
100.0%

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

100.0%-

Operating periods

182days

182days127days①Rental and other operating revenues (\ Thousands)

269,892

67,99343,4909,090,653

Rental revenues

242,422

60,23138,385

8,071,923

Other operating revenues

27,470

7,761

5,105

1,018,730

64,28817,85010,7902,705,911

Property management fees

18,167

4,396

3,483

911,939

Taxes

16,449

4,367

2,469

724,628

Utilities

17,546

3,957

3,635

663,799

Repairs and maintenance costs

5,855

3,890

-

165,367

159

38

145

14,083

Trust fees and other expenses

6,110

1,199

1,056

226,093③ＮＯＩ （＝①-②） (\ Thousands)

205,603

50,14232,7006,384,741④Depreciation (\ Thousands)

58,416

8,455

5,384

1,578,845⑤Rental operating income （＝③-④） (\ Thousands)

147,187

41,68727,316

4,805,896⑥Capital expenditures (\ Thousands)

11,184

243

31,124

918,600⑦ＮＣＦ （＝③-⑥） (\ Thousands)

194,419

49,898

1,575

5,466,141

Expense ratio （＝②／①）

23.8%
32,898
9,704
3.60%

26.3%
8,735
2,410
3.55%

24.8%
9,811
1,554
3.58%

29.8%
1,764,122
315,094
3.47%

82,3306,860

39,1603,263

134,540
11,211

13,313,703
1,109,475

Lease Information

As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007

Income and Retained Earnings Information for the 14th Fiscal Period②Property-related expenses (\ Thousands)

Insurance

Property tax for the year 2012or 2011(\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

95.4%
94.7%
94.6%
93.6%
94.4%
94.7%
95.7%
95.6%
95.9%
96.9%
175days *Total: Cost-weighted average management period (days)

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

※As of April 30, 2012

-59-

(Reference) Borrowings
Borrowings on a financial institution basis as of April 30, 2012 are as follows.
Classification

LenderDrawndown Date

Balance at the
AverageEnd ofBalance at theInterestPrevious
End of Period
Rate
Period(\Thousands)(Note 1)(\Thousands)
2,700,000
1.086

Last Repayment
Date

Payment
MethodUsage

Short-Term Payable

Mitsubishi UFJ Trust and Banking Corporation

January 31, 2011

The Norinchukin Bank

April 18, 2011

1,500,000-

Mitsubishi UFJ Trust and Banking Corporation

July 29, 2011

1,500,000

1,500,000

1.036

July 31, 2012

3,500,000

3,500,000

0.986

October 31, 2012

1,000,000

1,000,000

0.986

October 31, 2012-

4,000,000

0.911

October 31, 2012-

2,000,000

0.911

October 31, 2012-

1,500,000

0.911

October 31, 2012-

1,200,000

0.836

January 31, 2013

10,200,000

14,700,000

December 1, 2006

2,500,000-

1.964 November 30, 2011

April 2, 2007

2,000,000

-

1.875

April 2, 2012

Sumitomo Mitsui Banking Corporation

January 10, 2008

2,500,000

-

1.503

January 10, 2012

Sumitomo Mitsui Banking Corporation

February 27, 2009

450,000-

2.071 February 29, 2012

(Note 4)

Aozora Bank, Ltd.

April 30, 2009

1,500,000

-

2.236

April 27, 2012

Resona Bank, Ltd.

June 30, 2008

1,500,000

1,500,000

2.150

June 30, 2012

Full onmaturity

February 27, 2009

900,000

880,000

2.040

August 31, 2012

(Note 5) (Note 2)

1.450

October 31, 2012

Aozora Bank, Ltd.

October 31, 2011

Mitsubishi UFJ Trust and Banking Corporation
Aozora Bank, Ltd.

December 26, 2011

Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation

January 31, 2012

Sub Total
The Norinchukin Bank
Sumitomo Mitsui Trust Bank, Limited(Note 3)Current Potion of Long-Term Payable

Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

January 31, 2012

1.380 November 30, 2011

October 29, 2010

2,500,000

2,500,000

December 8, 2009

500,000

500,000

1.671 December 8, 2012

(Note 6)

June 30, 2008

3,000,000

3,000,000

2.263 December 28, 2012

(Note 6)

January 13, 2010

1,000,000

1,000,000

1.901(Note 6)

February 18, 2010

1,500,000

1,500,000

1.899 February 18, 2013

April 28, 2011

1,000,000

1,000,000

1.496

Resona Bank, Ltd.

(Note 6)Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.

Mitsubishi UFJ Trust and Banking Corporation (Note 6)
Sub Total

January 15, 2013

Full on
Unsecured/(Note 2)maturity
Unguaranteed

Full onmaturity

April 30, 2013

20,850,000

11,880,000

May 1, 2006

5,000,000

5,000,000

2.731

April 30, 2016

Development Bank of Japan Inc.

September 1, 2006

3,000,000

3,000,000

2.124

August 31, 2013

Full onmaturity

Sumitomo Mitsui Banking Corporation

October 26, 2009

920,000

900,000

2.424

October 26, 2013

(Note 7)

Sumitomo Mitsui Banking Corporation

October 30, 2009

1,840,000

1,800,000

2.445

October 30, 2013

(Note 8)

Sumitomo Mitsui Banking Corporation

January 29, 2010

1,104,000

1,080,000

2.173

January 30, 2015

(Note 9)2,070,000

2,012,500

2.190 February 18, 2015

1,530,000

1,487,500

2.190 February 18, 2015

900,000

875,000

2.190 February 18, 2015
2.190 February 18, 2015

Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited

February 18, 2010

Aozora Bank, Ltd.

450,000

437,500

1,850,000

1,800,000

2.220

April 2, 2015

500,000

500,000

1.488

July 31, 2013

3,700,000

3,700,000

1.660

January 31, 2014

3,700,000

3,700,000

1.731

July 31, 2014

500,000

500,000

1.463

October 31, 2013

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,500,000

1,500,000

1.584 November 12, 2013

Sumitomo Mitsui Trust Bank, Limited

800,000

800,000

1.584 November 12, 2013

Aozora Bank, Ltd.

400,000

400,000

1.584 November 12, 2013

1,200,000

1,200,000

1.789 November 12, 2015

800,000

800,000

2,300,000

2,300,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000

500,000

1.445 November 12, 2013

Sumitomo Mitsui Trust Bank, Limited

200,000

200,000

1.445 November 12, 2013

Aozora Bank, Ltd.

100,000

100,000

1.445 November 12, 2013

800,000

800,000

1.545 November 12, 2015

Resona Bank, Ltd.

200,000

200,000

1.545 November 12, 2015

Development Bank of Japan Inc.

700,000

700,000

2.206 November 12, 2017

1,300,000

1,300,000

1.570

January 31, 2014

800,000

800,000

1.939

January 29, 2016

Sumitomo Mitsui Banking Corporation

April 2, 2010

Resona Bank, Ltd.
Long-Term Payable

Sumitomo Mitsui Trust Bank, Limited

July 30, 2010

Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.

Sumitomo Mitsui Banking Corporation

October 29, 2010

November 12, 2010

Resona Bank, Ltd.
Development Bank of Japan Inc.

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

December 1, 2010

January 31, 2011-60-

Unsecured/
Unguaranteed

Full onmaturity

Development Bank of Japan Inc.

Sumitomo Mitsui Banking Corporation

Remarks(Note10)(Note11)

1.789 November 12, 2015 Full on
2.023 November 12, 2017 maturity(Note 2)

Unsecured/
UnguaranteedClassification

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

Drawndown Date

February 28, 2011

Balance at the
AverageEnd ofBalance at theInterestPrevious
End of Period
Rate
Period(\Thousands)(Note 1)(\Thousands)
3,000,000
3,000,000
1.912
500,000

2,700,000

2,700,000

1.630 September 22, 2014

2,000,000

2,000,000

1.525 September 30, 2013

2,000,000

2,000,000

1.905

Resona Bank, Ltd.

1,000,000

1,000,000

1.386

March 31, 2016

Aozora Bank, Ltd.

1,500,000

1,500,000

1.859

October 31, 2015

1,000,000

1,000,000

1.886January 29, 2016

1,000,000

1,000,000

1.535

July 14, 2014

2,200,000

2,200,000

1.136

July 31, 2014

1,000,000

1,000,000

1.136

July 31, 2014

300,000

300,000

1.398

July 31, 2014

March 22, 2011

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

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation

March 31, 2011

April 28, 2011
July 13, 2011

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited

July 29, 2011

Resona Bank, Ltd.

1,500,000

1,500,000

1.086 February 27, 2015

Sumitomo Mitsui Trust Bank, Limited

September 1, 2011

1,000,000

1,000,000

1.149

1,000,000

1,000,000

1.151 September 30, 2013

2,500,000

2,500,000

1.161

1,000,000

1,000,000

1.270 September 30, 2014

The Mizuho Trust and Banking Co., Limited

September 30, 2011

Sumitomo Mitsui Banking Corporation

August 29, 2014
March 31, 2014

Long-Term Payable

2,500,000

2,500,000

1.289

March 31, 2015

Development Bank of Japan Inc.

-

2,500,000

1.239

October 31, 2014

Sumitomo Mitsui Banking Corporation-

2,000,000

1.261

October 31, 2014

Resona Bank, Ltd.

-2,000,000

1.261

October 31, 2014

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

1,000,000

1.261

October 31, 2014

Sumitomo Mitsui Banking Corporation-

2,500,000

1.338

October 31, 2015-

2,500,000

1.315

October 31, 2015

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-2,000,000

1.338

October 31, 2015

Sumitomo Mitsui Banking Corporation-

2,500,000

1.439

October 31, 2016

Development Bank of Japan Inc.

-

2,500,000

1.415

October 31, 2016

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-2,000,000

1.439

October 31, 2016

Development Bank of Japan Inc.

December 26, 2011

Sumitomo Mitsui Banking Corporation

January 10, 2012-

2,500,000

1.269

January 29, 2016

Mitsubishi UFJ Trust and Banking Corporation

January 31, 2012-

1,500,000

1.190

January 30, 2015

Aozora Bank, Ltd.

-

2,250,000

0.979

March 12, 2014

Development Bank of Japan Inc.

-

1,800,000

0.979

March 12, 2014-

1,800,000

0.979

March 12, 2014

Sumitomo Mitsui Trust Bank, Limited-

450,000

0.979

March 12, 2014

Mizuho Bank, Ltd.

-

1,000,000

1.075

March 12, 2015

The Bank of Fukuoka, Ltd.

-

500,000

1.364

March 28, 2017-

1,400,000

1.770

March 28, 2019-

1,000,000

1.770

March 28, 2019

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation

March 12, 2012

March 28, 2012

Development Bank of Japan Inc.

Remarks

January 29, 2016

August 31, 2011

Sumitomo Mitsui Trust Bank, Limited

Usage

January 29, 2016

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

Payment
MethodAugust 31, 2015

500,000

Sumitomo Mitsui Trust Bank, Limited

1.952

Last Repayment
Date

Sumitomo Mitsui Trust Bank, Limited

March 30, 2012-

2,000,000

1.211 September 30, 2015

Aozora Bank, Ltd.

April 27, 2012-

1,000,000

1.271

Sub Total

66,364,000

104,792,500

Total

97,414,000

131,372,500

Full on
Unsecured/(Note 2)maturity
Unguaranteed

October 30, 2015

Notes:
1. The average interest rate is the weighted-average interest rate for the fiscal period. The Investment Corporation entered into interest-rate swap transactions with the aim 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.
2. Funds procured through borrowings were used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings.
3. The Investment Corporation undertook prepayment on March 30, 2012.
4. Repayment Method: August 31, 2009 to August 31, 2011: repayment of 10,000 thousand yen every 6 months, and February 29, 2012: repayment of 450,000 thousand yen
5. Repayment Method: August 31, 2009 to February 29, 2012: repayment of 20,000 thousand yen every 6 months, and August 31, 2012: repayment of 880,000 thousand yen
6. Borrowings listed in the current potion of long-term payable were listed in long-term payable in the previous fiscal period.
7. Repayment Method: February 26, 2010 to August 31, 2013: repayment of 20,000 thousand yen every 6 months, and October 26, 2013: repayment of 840,000 thousand yen
8. Repayment Method: January 29, 2010 to July 31, 2013: repayment of 40,000 thousand yen every 6 months, and October 30, 2013: repayment of 1,680,000 thousand yen
9. Repayment Method: April 30, 2010 to October 31, 2014: repayment of 24,000 thousand yen every 6 months, and January 30, 2015: repayment of 960,000 thousand yen
10. Repayment Method: February 26, 2010 to August 31, 2014: repayment of 137,500 thousand yen every 6 months, and February 18, 2015: repayment of 4,125,000 thousand yen
11. Repayment Method: August 31, 2010 to February 28, 2015: repayment of 50,000 thousand yen every 6 months, and April 2, 2015: repayment of 1,500,000 thousand yen-62-