KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED April 30, 2014 (REIT)(November 1, 2013 to April 30, 2014)
Kenedix Office Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
Representative:

June 13, 2014

Naokatsu Uchida, Executive Director

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

Ryosuke Homma, CEO and President

Inquiries:

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

Planned submission of semiannual securities report: July 30, 2014

Planned start of distribution payments: July 15, 2014

Preparing presentation material:

Yes･NoHold a financial brief meeting:Yes･No (for institutional investors and analysts)(Amounts are rounded down to the nearest ¥million)

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED April 30, 2014 (EIGHTEENTH FISCAL PERIOD)(1) Business Results(% indications are increase-decrease rate of period-over period)

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

April 30, 2014

10,895(11.0%)

4,283(1.0%)

2,887(1.9%)

2,885(1.9%)

October31, 2013

9,819(‐0.5%)

4,240(‐3.7%)

2,832(‐5.7%)

2,831(‐5.7%)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, 2014

8,767

1.8 %

0.9%

26.5%

October31, 2013

9,881

1.9%

0.9%

28.9%

(2) Distribution（Total distributions is rounded down to the nearest ¥million.）

Distributions per Unit

Total Distribution

Excluding Excess of(Millions of Yen)

Earnings (Yen)Distributions in

Total Distributions in

Excess of Earnings

Excess of Earnings

per Unit (Yen)(Millions of Yen)

Payout Ratio

Distribution Ratio to
Unitholders’ Equity

For the six months endedApril 30, 2014

9,638

3,205

0

0

111.1%

1.9%

October 31, 2013
9,302
2,665
0
0
94.1%
1.8%
Note 1: Distribution per unit for the fiscal period ended October 31, 2013 is calculated by dividing the amount remaining after deducting the provision of reserve for
reduction entry (¥165 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 is due to this calculation.
Note 2: Distributions per unit for the fiscal period ended April 30, 2014 is calculated by dividing the amount of the reversal of reserve for reduction entry (¥319
million) added unappropriated 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 this calculation.
Note 3: Due to the issuance new investment units during the fiscal period ended April 30, 2014, the payout ratio is calculated as following method.
Payout ratio = Total Distributions /Net Income × 100(3) Financial Position（Total assets and unitholders’ equity are rounded down to the nearest ¥million.）

Total Assets

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Unit

(Millions of Yen)

(Millions of Yen)

to Total Assets(Yen)

For the six months endedApril 30, 2014

355,167

170,10947.9%

511,546

October 31, 2013

316,753

150,78147.6%

526,195

This is an English-language translation of the original Japanese announcement on our Web site released on June13, 2014. 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.
-1-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(4) Cash Flow Position（Amounts are rounded down to the nearest ¥million.）

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, 2014

8,595

-35,50933,502

17,537

October 31, 2013

5,924

- 14,816

5,469

10,948

2．FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING October 31, 2014 (May 1, 2014 to October 31, 2014)(% change from the previous fiscal period)

Distribution perDistribution in

Operating Revenues

Operating Income

Ordinary Income

Net Income

Unit Excluding

Excess of(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

Excess ofEarnings per Unit

Earnings (Yen)(Yen)

For the six months ending
11,249
(3.2%)
4,972(16.1%) 3,484(20.7%) 3,482(20.7%)
October 31, 2014
(Reference) Estimated net income per unit for the fiscal period ending October 31, 2014: ¥9,903
Forecasted number of investment units issued and outstanding as of October 31, 2014: 355,010 units
Forecasted average number of investment units during the fiscal period ending October 31, 2014: 351,672 units

9,810

0

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, 2014: 332,540 units
As of October 31, 2013: 286,550 units(b) Number of treasury units at period end
As of April 30, 2014: 0 units
As of October 31, 2013: 0 units
Note: Please refer to page 30 “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
Readers are advised 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 paymentof the forecast distribution per unit. Please refer to page 11 “Preconditions and Assumptions for the Fiscal Period Ending October
31, 2014.” for the precondition of forecast for the nineteenth fiscal period ending October 31, 2014.

This notice is an English-language translation of the original Japanese announcement on our Web site released on June 13, 2014. 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.
-2-

ファイル名:KDO投資法人仕組図_English140528_takara

更新日時:2014/06/13 15:40:00 印刷日時:14/06/13 15:40

1. Basic Strucuture-Overview of Companies Related to the Investment Corporation

Investment Corporation

Lenders

Kenedix Office
Investment Corporation

Sumitomo Mitsui Banking Corporation

Asset Custodian④
Mizuho Trust & Banking Co., Ltd

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

General Meeting of Unitholders
Administrative Agent for Accounting Business

Sumitomo Mitsui Trust Bank, limited.
Mitsubishi UFJ Trust and Banking Corporation⑤
Mitsubishi UFJ Trust and Banking Corporation

Resona Bank, Ltd.

Board of Directors
Executive Director: Naokatsu Uchida
Supervisory Director: Shiro Toba
Supervisory Director: Yoshihiro Morishima
Supervisory Director: Takahiro Seki

Administrator for Unitholder’s Register
Administrator for Special AccountMizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
The Bank of Fukuoka, Ltd.
The Nishi-Nippon City Bank, Ltd.

⑥

Hiroshima Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited

The 77 Bank, Ltd.

Accounting Auditor

The Higashi-Nippon Bank, Ltd.

Ernst & Young ShinNihon LLC

Administrative Agent for Investment
Corporation Bond⑦
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited①②

Asset Management Company
Administrative Agent for Director’s Meeting
Property Management Company

Support-Line Company

Kenedix Real Estate Fund Management, Inc

Kenedix, Inc.(Note)

③
①
②
③
④
⑤
⑥
⑦

Asset Management Agreement/Operating Agency Agreement
Property Management Agreement
Support-Line Memorandum of Understanding
Asset Custodian Agreement
Administrative Agency Agreement
Unitholder Register Administrative Agency Agreement/Special Account
Administrative Agency Agreement
Fiscal Agency Agreement(Note): The specified related company of the Investment Corporation (referring to the specified related company stipulated in Article
12 Paragraph 3 of the Cabinet Office Ordinance on Disclosure of Information, etc. on Specified Securities (Ordinance of the
Ministry of Finance No. 22 of 1993, including amendments thereafter)) is Kenedix, Inc. Kenedix Inc. is the parent company(referring to the parent company stipulated in Article 8 Paragraph 3 of Ordinance on Terminology, Forms, and Preparation
Methods of Financial Statements, etc. (Ordinance of the Ministry of Finance No.59 of 1963, including amendments
thereafter)) of the Asset Management Company.

-3-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

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, 2014), and accordingly this information has been omitted from this document.
(2) Operating Conditions(1) Operating Conditions for the Eighteenth Fiscal Period (fiscal period ended April 30, 2014)
A. The Investment Corporation
Kenedix Office Investment Corporation (“the Investment Corporation”) was established on May 6, 2005 in accordance with the Investment
Trust and Investment Corporation Law (Law No. 198 of 1951, including amendments thereafter). On July 21, 2005, the Investment Corporation
was listed on the Real Estate Investment Trust Market of the Tokyo Stock Exchange, Inc. (“the Tokyo Stock Exchange”) with a total of 75,400
investment units issued and outstanding (Securities Code: 8972). Subsequently, the Investment Corporation raised funds through public offerings
and including five global offerings. As a result, as of April 30, 2014, the end of the eighteenth fiscal period, the number of investment units issued
and outstanding totaled 332,540 units.
The Investment Corporation appointed Kenedix Real Estate Fund Management, Inc. (“the Asset management Company”). In collaboration with
the Asset Management 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 the basic policy of conducting dynamic and flexible investment
stance that seeks to respond to its environment and market trends, and endeavors to ensure a timely response to opportunities.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review (fiscal period ended April 30, 2014), the Japanese economy was on an ongoing modest recovery supported
by steady domestic demand. According to Cabinet Office public documents, GDP is showing steady undertone growth rate, and despite
experiencing the demand rush due to the effect of the consumption tax rate hike and weakened demand afterwards as a rebound, the overall
economic cycle is positive centering on improvements in employment and income environments and also the increase in capital investment byprivate sectors. As for overseas economies, according to the IMF’s publicly announced World Economic Outlook, while global economic
activities are gaining momentum, downside risks such as deficits of current account and declining growth rate of emerging countries and regions
remain, thus present economic trends vary.
Concerning the office building leasing market, the vacancy rate of business districts across Japan is on a downward trend as the supply of newly
built buildings remains limited, while demand from companies is on the rise. In particular, vacancies are steadily being eliminated in central fivewards of Tokyo such as with average vacancy rates which declined for the tenth consecutive month, reflecting aggressive company activities
such as relocating for floor area expansion or for better location. As a result, discounts through rent-free periods and such are decreasing.
In the office building transaction market, active transactions continue due to the strong appetite for new acquisitions coming from domestic
investors, centering on listed J-REITs. Cap rate is on a slightly downward trend as the leasing market shows signs of bottoming out and the riseof future transaction prices is anticipated. The official land prices (average of all asset types) in the three largest metropolitan areas in Japan
increased for the first time in six years, evidencing active real estate transactions. Under the ongoing eased financial capital market, transaction
volume is on a further upward trend.
(b) Management Performance
As of the end of the seventeenth fiscal period (fiscal period ended October 31, 2013), the Investment Corporation owned 85 properties (with a
total acquisition price of ¥304,800 million), preferred equity securities (investment of ¥891 million) and equity interest in a Japanese silent
partnership (tokumei kumiai) (“TK”) (acquisition price of ¥200 million). During the fiscal period under review (fiscal period ended April 30,2014), the Investment Corporation acquired seven office buildings (KDX Shinbashi Building (additional acquisition): acquisition price of¥1,038 million, KDX Takanawadai Building: acquisition price of ¥5,250 million, KDX Ikebukuro Building: acquisition price of ¥3,900 million,
KDX Mita Building: acquisition price of ¥3,180 million, KDX Akihabara Building: acquisition price of ¥2,600 million, Aplus Tokyo Building:acquisition price of ¥4,350 million, KDX Musashi-Kosugi Building: acquisition price of ¥12,000 million ) located in the Tokyo Metropolitan
Area, one other property (Shinjuku 6-chome Building (Land): acquisition price of ¥2,880 million), equity interest in a Japanese silent partnership(for an equity interest in Shinjuku Sanei Building (acquisition price of ¥1.107 million) and sold KDX Niigata Building (initial acquisition priceof ¥1,305, Kabutocho Nikko Building II (initial acquisition price of ¥1,280 million) and Court Mejiro (initial acquisition price of ¥1,250) (with a
total disposition price of ¥3,559 million))
As a result, the number of properties owned as of April 30, 2014 (excluding the preferred equity securities and TK interest, same applies below.)amounts to 89 (Note) (with a total acquisition price of ¥336,163 million). Looking at the portfolio as a whole, 90.4% was comprised of office-4-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

buildings, 6.6% of central urban retail properties, 2.1% of residential properties and 0.9% of other property on an acquisition price basis. The
occupancy ratio as of the end of the eighteenth fiscal period was 96.0% reflecting stable operational management.
In addition, the Investment Corporation made its decision to acquire acquisition of KDX Toyosu Building, Grace Building Takadanobaba andFumix STM Building on May 8, 2014 (Total of 3 properties: total acquisition price of 14,666 million), and acquired on May 30, 2014.
Note: For KDX Shinbashi Building, the acquired portion and additional acquisition portion are presented collectively as one property.

Operation and Management of Existing Properties
The Investment Corporation has appointed as of April 30, 2014, the Asset Management Company as its property management company for
its entire portfolio (excluding Shinjuku 6-chome Building (Land)). In establishing a single point of contact for all matters relating to property
management activities, the Investment Corporation have strived to secure consistent policies, specifications and procedures along withensuring swift service with a high degree of quality.
In terms of leasing, the Investment Corporation sought out potential demand by maintaining close relationships with brokers based on therecovery trends of the economy and real estate market. Moreover, in order to maintain and increase the competitiveness of office buildings,
renovation of air conditioning, repair of common areas, etc. were implemented according to the plan.
Consequently, as of the end of the period under review, the occupancy ratio of the Investment Corporation’s owned office buildings in theTokyo Metropolitan Area stood at 95.8% and for the Investment Corporation’s office buildings overall stood at 95.9%, an increase of 0.3%
from the previous fiscal period.
Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for our office buildings was 886 (Note 1) (Note 2) as of the end of the fiscal period (fiscal period ended April 30,2014) and diversifying tenant’s stratum further. Floor area leased to the top 10 office end-tenants as a proportion of total leased floor area of thetotal portfolio was 13.6% (Note 3). Furthermore, tenants of office buildings are in various sectors. As a result, we believe the impact by acertain end-tenant vacating the property or sluggish performance in certain sectors would have a relatively limited effect and will be able tomaintain stable revenue.
Note 1: When a tenant is leasing more than one property, it is counted as one tenant and the number of tenants is indicated accordingly.
Note 2: The number of end-tenants for entire portfolio is 1,019 as of the end of the fiscal period (fiscal period ended April 30, 2014).
Note 3: Total floor area leased to Kenedix, Inc., the sponsor company, as a proportion of the total portfolio owned by the Investment
Corporation was 3.6% (KDX Nihonbashi Kabutocho Building 0.7%, KDX Musashi-Kosugi Building 2.9%). Thus thelargest tenant for office buildings in terms of leased floor area is Kenedix Inc. Kenedix Inc. is conducting sub-master leasing inwhich Kenedix Inc. sub-leases part of properties leased from the Investment Corporation, its master lease company, to third
parties.
C. Capital Acquisition(a) Issuance of New Investment Units
The Investment Corporation additionally issued 43,800 investment units through public offerings, including global offerings, with an aim to
procure funds for acquiring new properties and repaying borrowings, and procured ¥18,198 million on November 13, 2013. Furthermore,
additionally issued 2,190 units through by way of third-party allotment in aim to procure procedure for compensate the cash on hand, andprocured ¥909 million on December 10, 2013.
(b) Status of Borrowings
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates and extending borrowing periods for
its interest-bearing debt. During the fiscal period under review (fiscal period ended April 30, 2014), the Investment Corporation undertook
borrowings of ¥19,200 million (¥3,000 million in short-term borrowings, ¥16,200 million in long-term borrowings (Note1)) to acquire an
additional asset and ¥21,600 million to repay borrowings that matured during the fiscal period. As a result, the balance of interest-bearing debt
amounted to ¥167,746.5 million as of April 30, 2014, comprising ¥161,446.5 million in borrowings (¥155,446.5 million in long-term borrowingsand ¥6,000 million in short-term borrowings) and ¥6,300 million in investment corporation bonds.
Furthermore, as of April 30, 2014, ¥57,700 million out of ¥67,400 million of long-term borrowings, which have floating interest rates, have been
hedged and practically fixed by utilizing interest-rate swap agreements. In addition, the long-term debt ratio (Note 2) was 96.4% and the long-term
fixed interest debt ratio (Note 3) was 90.6%.
In addition, the Investment Corporation has maintained the average remaining term of its interest-bearing debt (Note 4), the weighted averagebased on the balance of interest-bearing debt at the end of each period, from 2.3 years at the end of the thirteenth fiscal period (fiscal period ended
October 31, 2011) to 3.1 years at the end of the fiscal period under review (fiscal period ended April 30, 2014). Furthermore, during the same
-5-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

period, the average interest rate (Note 4) was reduced from 2.17% to 1.65%, demonstrating a successful steady reduction of financial costs.
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date. However, theborrowings 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-termborrowings refer to borrowings with a period of more than one year from the drawdown date to the repayment date. The same classification criteria
apply to other borrowings listed below.
Note 2: Long-term debt ratio= (Balance of long-term borrowings + Balance of investment corporation bonds) / (Total borrowings + Balance of investment
corporation bonds) ×100
Long-term debt ratio is rounded to the nearest first decimal place.
Note 3: Long-term fixed interest debt ratio = (Balance of long-term fixed interest rate borrowings + Balance of investment corporation bonds) / (Total
borrowings + Balance of investment corporation bonds) ×100
The balance of long-term fixed interest rate borrowings includes borrowings with floating interest rates effectively fixed by utilizing interest-rate swap
agreements. Long-term fixed interest debt ratio is rounded to the nearest first decimal place.
Note 4: Average interest rates and average remaining terms are the weighted average based on the period-end interest rates and remaining terms based on thebalance of interest-bearing debt. Average interest rates are rounded to the nearest second decimal place and average remaining terms are rounded to
the nearest first decimal place respectively.

The balance of borrowings according to financial institutions as of October 31, 2013 and April 30, 2014 are as follows:
LenderSeventeenth Fiscal Period(as of October 31, 2013)

Eighteenth Fiscal Period(as of April 30, 2014)(Millions of Yen)

(Millions of Yen)

Ratio as of End of
Eighteenth Fiscal Period(%) (Note 5)

Sumitomo Mitsui Banking Corporation

36,898.0

46,966.5

29.1

Development Bank of Japan Inc.

24,160.0

29,117.5

18.0

Aozora Bank, Ltd.

21,350.0

21,337.5

13.2

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

17,200.0

21,200.0

13.1

Sumitomo Mitsui Trust Bank, Limited

17,650.0

17,650.0

10.9

Mitsubishi UFJ Trust and Banking Corporation

9,200.0

9,200.0

5.7

Resona Bank, Ltd.

8,300.08,300.0

5.1

Mizuho Bank, Ltd.

3,000.0

2,200.0

1.4

Mizuho Trust & Banking Co., Ltd.

3,000.0

2,000.0

1.2

The Bank of Fukuoka, Ltd.

1,500.0

1,500.0

0.9

The Nishi-Nippon City Bank, Ltd.

700.0

700.0

0.4

Hiroshima Bank, Ltd

500.0

500.0

0.3

The 77 Bank, Ltd

500.0

500.0

0.3

The Higashi-Nippon Bank, Limited

300.0

300.0

0.2

Total
144,258.0
Note 5: Percentages are rounded down to the nearest first decimal place.

161446.5

100.0(c) Status of Credit Rating
The status of the credit ratings as of April 30, 2014 is as follows:
Credit Rating Agency
Details of the Ratings
Long-Term Issuer Rating
A+ (Outlook: Stable)
Japan Credit Rating Agency, Ltd.
Ratings on Bonds
A+
Rating of Shelf Registration(d) Status of Shelf Registration
The Investment Corporation filed a debt shelf registration statement on February 7, 2013. Details are as follows.
Investment Corporation Bonds
Planned Issue Amount¥100,000,000,000
Planned Issuance Period February 15, 2013 to February 14, 2015
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.
The Investment Corporation’s Fifth Series Unsecured Investment Corporation Bonds of ¥1,800,000,000 were issued based on theabovementioned debt shelf registration statement filed in September 2013.
-6-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Furthermore, the Investment Corporation filed an equity shelf registration statement to continue to secure opportunity for flexible equity
financing on February 7, 2013. Details are as follows.
Investment Unit CertificatesPrimary Offering
Secondary Offering
Planned Issue Amount¥100,000,000,000¥15,000,000,000
February 15, 2013 to
February 15, 2013 toPlanned Issuance Period
February 14, 2015
February 14, 2015
Acquisition funds for specified assets, Not applicablerepayment of borrowings, repayment ofinvestment corporation bonds, refund of lease
Use of Funds
and guarantee deposits, funds to pay forrepairs 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 ¥10,895 million,
operating income of ¥4,283 million, ordinary income of ¥2,887 million and net income of ¥2,885 million for its eighteenth fiscal period (fiscal
period ended April 30, 2014).
Cash distributions are paid out to the application of Article 67-15 of the Special Taxation Measures Law (Law No. 26 of 1957, including
amendments thereafter). In addition, the Investment Corporation has decided to book a portion of its unappropriated retained earnings to internal
reserve as a reserve for reduction entry based on application of the “Special Provisions for Taxation in the Event of Advance Acquisition ofLand, etc. in 2009 and 2010” (Article 66-2 of the Special Taxation Measures Law) in the fiscal period under review. In accordance with thispolicy, following the posting of this reduction entry reserve, the Investment Corporation reversed part of reserve for reduction entry (319 million
yen) added the amount of the concerned reversal of reserve for reduction entry to the unappropriated retained earnings. Almost the entire sum
amount was distributed to unitholders, yielding ¥9,638 per unit.
(2) Outlook
A. Investment Environment
With regard to the outlook of the Japanese economy, despite changes in demand in line with the consumption tax hike, it is expected to remain
stable due to the increase in capital investment by companies and improvements in employment and wages, etc. The overseas economy as awhole is on the recovery trend centering on the U.S. However, close monitoring is required of the risks that may cause a downturn in the global
economy, such as deficits of current accounts in some emerging countries and resource-rich countries, and concerns over financial market
stability.
Concerning the office building leasing market, according to figures announced by Miki Shoji Co., Ltd, as of the end of April 2014, the averagevacancy rate of Tokyo five central wards was 6.64%, a decrease of 1.9% from the previous year. With compared to the beginning of the period,
the average vacancy rate dropped by 0.92% clearly indicating an improvement. The average rent in Tokyo five central wards (including for
newly built office buildings) is turning upward, though slightly, from a gradual downward trend. Since companies are acting aggressively ingeneral and the demand for office floor space is expected to remain strong going forward, a full-scale rise in rent is anticipated.
In the office building transaction market, the demand for office buildings as investment assets remains strong with the backdrop of the expectedfull-fledged recovery of the leasing market and a favorable funding environment. Therefore, active transactions by major investors such as listed
J-REITs and foreign investors are expected to continue.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting dynamic and flexible investment stance that seeks to respond to its
environment and market trends, and endeavors to ensure a timely response to opportunities. From this standpoint and in light of the investment
environment described above (the Japanese economy, the office building leasing market and the office building real estate transaction market,etc.), the Investment Corporation creates a property investment strategy, management strategy for existing properties, and financial strategy in a
dynamic and flexible manner as set forth below.
-7-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(a) Investment Strategy for New Properties and Sales Policy
The Investment Corporation aims for further expansion of its asset size, with the goal of “forming a firm portfolio focusing on mid-sized officebuildings” and to become the “No. 1 J-REIT for mid-sized office buildings.” The Investment Corporation will keep mid-sized office buildings in
the Tokyo Metropolitan Area as its focus, and with regard to central urban retail properties, invest only in those that have rare value as analternative to office buildings, are located in busy commercial areas and offer a certain amount of office space. In addition, the Investment
Corporation believes that maintaining an investment strategy which aims for a certain degree of regional diversification, will be a foundation for
constructing a superior portfolio and differentiating the Investment Corporation from others in the business.
Moreover, when acquiring assets, the Investment Corporation will aim for the stable growth of the portfolio, by securing continuous
opportunities for acquiring properties and flexible acquisition methods by utilizing the Asset Management Company’s own networks and thesponsor company’s support line through the construction of multiple pipelines. Also, based on the premises of that the Investment Corporation
able to obtain opportunities for property acquisitions in the future, the Investment Corporation might invest in TK interests etc. with the sponsor
company on a conjoint basis. In addition, in order to seek diversifying acquisition methods (direct acquisition, equity investment andco-acquisition with the sponsor company), with consideration to the balance of financing and to secure mobilizing acquisition of properties, theinvestment company invests in warehousing related TMK etc. with the sponsor company cooperation. In selling properties, the Investment
Corporation will examine the sale of properties individually in considering the use of funds for replacement of assets through new property
acquisition or fund-type investments. Of this, concerning residential properties, the Investment Corporation will not only refrain from conducting
new investments in principle, but will also place such properties on the top of the list of properties to sell while taking into consideration themarket environment, asset size and other factors. On the other hand, the Investment Corporation will decide on the sale of office buildings andcentral urban retail properties 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.
(b) Management Strategy for Existing Properties
Taking into consideration economic and real estate market trends, the Investment Corporation adopts “a tenant-oriented approach which will leadto revenue” for its leasing activities with aims of ensuring a timely and flexible response as well as optimizing tenant satisfaction. Accordingly,
the Investment Corporation seeks to aim to maintain / increase cash flow by offering office environments with high tenant satisfaction. Based on
the aforementioned to become the mid-sized office building of the choice the Asset Management Company undertakes property management
activities as follows:・Take measures to maintain and raise competitiveness of properties
・Tailor leasing management according to the market environment
・Apply careful control of management and operating costs by taking advantage of portfolio size
・Ensure appropriate response to relevant laws and regulations
・Develop a proactive response to environmental issues
Take measures to maintain and raise competitiveness of properties
The Investment Corporation will implement operation and management in close contact with the actual properties and further enhance themanagement level. Some specific examples of the operation and management are the installation of public wireless LAN services (installed at
69 properties located within NTT East’s service area as of April 30, 2014) and installation of automated external defibrillators (AEDs) (installedat 85 properties as of April 30, 2014) in consideration of business continuity plans (BCP) and its corporate social responsibilities (CSR).
Furthermore, tenants at properties are positioned as important “customers” and the perspective of customer satisfaction (CS) is applied to the
management of properties. The Investment Corporation has conducted a CS survey targeting the tenants of its office buildings five times incooperation with J.D. Power Asia Pacific, Inc., an internationally recognized company that engages in customer satisfaction evaluation(requesting those in charge of general affairs and employees of tenants to complete a questionnaire on the hard aspects such as the building andfacilities as well as on the soft aspects such as management and operation, consisting of multiple items for evaluation and open-ended questions).
The comprehensive satisfaction rating results for the Fifth CS survey conducted in August 2013 is as follows.
The response of “Satisfied”, “Slightly Satisfied” weighted 2.0% increase compare to the Fourth CS Survey conducted in September 2011.
＜Comprehensive Satisfaction Rating＞
Slightly
Dissatisfied

Satisfied

Slightly Satisfied

Fifth CS Survey

26%

51%

18%

4%

1%

1%

Fourth CS Survey

23%

52%

19%

5%

1%

1%

Neither

Note 1: Target respondents for the survey are the administration officers of each tenant and tenant employees.

-8-

Dissatisfied

Unknown

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Note 2: Ratios are rounded to the nearest unit.

By conducting such surveys continuously and meeting tenant needs, the Investment Corporation is aiming to improve customer satisfaction
while also maintaining and improving the competitiveness and asset value of its properties.
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 thetenant turnover ratios are relatively high. Therefore, in the leasing aspect, the Investment 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 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 (Law No.201, 1950, including amendments thereafter) andother relevant laws and regulations and any future revisions, in a timely manner and will respond as necessary while considering compliance.
Develop a proactive response to environmental issues
The Investment Corporation is designated as a specified corporation pursuant to the Act on the Rational Use of Energy. The Investment
Corporation will research on energy saving and environmental friendliness of mid-sized office buildings, develop medium- to long-term energy
saving plans and reduction targets, and proactively institute measures in terms of both hardware (buildings and facilities) and soft services(operating and management services) in an aim to ensure the simultaneous pursuit of return on investment and social benefits.
(c) Financial Strategy (Debt Financing)
As the environment for procuring interest-bearing debt is continuing to improve, the Investment Corporation is determined to continue to work
to improve the terms and conditions of borrowings.
In addition, by taking the following measures, etc., the Investment Corporation aims for stable financial management.
・Reduce refinance risk by diversifying maturities of interest-bearing debt
・Have the procurement ratio of long-term fixed interest borrowings above a certain level・Control the rate of interest-bearing debt (Note) in a conservative manner (the Investment Corporation will continue to aim to keep the ratio ofinterest-bearing debt to total assets (LTV) at within less than 45% level as a rule. However, it will also remain open to the option of increasing
LTV to the upper 40% level in the event of debt financing conducted for the purpose of acquiring competitive properties or otherwise.)Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial institutions,especially mega-banks, trust banks and Development Bank of Japan, Inc., as well as aim for more conservative financial management. In
addition, the Investment Corporation aspires to pay attention to the share of each bank and consider as appropriate the introduction oftransactions with new banks based on comparison with the conditions with currently transacting banks.
Note: Interest bearing debt ratio = Interest-bearing debt at end of period / Total assets ×100(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, and make revisions to the information disclosure system when needed. In specificterms, the Investment Corporation provides information through the Timely Disclosure Network System (TDnet), which is a system operated by
the Tokyo Stock Exchange, as well as press releases and its Web site (URL: http://www.kdx-reit.com/eng/ ).

-9-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(3) Important Subsequent EventsThe Issueance of New Investment Units
On May 8, 2014 and May 20, 2014, the Board of Directors of the Investment Corporation resolved to issue new investment units as detailed below.
The payments were completed on May 27, 2014 for issuance of new investment units through public offering.
As a result, the Investment Corporation had total unitholders’ capital of ¥176,138,701,670 with 353,940 investment units outstanding as of May 27,
2014.
When new investment units are issued through a third-party allotment with Nomura Securities Co. Ltd. as the allottee in connection with the secondaryoffering, the payment date will be June 24, 2014 (planned).
Issuance of New Investment Units through Public Offering
Number of New Units Issued：21,400 units (Japanese Offering 10,700 units, International Offering 10,700 units)

Issue Price (Offer Price)：¥478,725 per unit

Total Amount of the Issue Price (Offer Price)：¥10,244,715,000

Paid-in Value (Issue Amount)：¥461,540 per unit

Aggregate Paid-in Value (Total Issue Amount)：¥9,876,956,000

Payment Date

：May 27, 2014

New Investment Units by Third-Party Allotment.
Number of New Units Issued：1,070 units

Paid-in Value (Issue Amount)：¥461,540 per unit

Aggregate Paid-in Value (Total Issue Amount)：¥493,847,800

Payment Date

：June 24, 2014(Planned)

Allottee：Nomura Securities Co. Ltd.

(Use of Funds)
The funds from the Japanese offering and international offering, allocated as a portion of the funds for the acquisition of properties in
Nineteenth Fiscal Period. Furthermore, the funds from the issuance of new investment units by third-party allotment are allocated to as proceed
for a portion of the funds for the acquisition of future specified assets and repayment of borrowings.
(Reference Material)
The Investment Corporation acquired following trust beneficiary interest in real estate (total acquisition price ¥14,666 million for 3 officeproperties).
Acquisition
Acquisition Date
May 30, 2014

Property NameKDX Toyosu Grand Square(Note)

Location (address)
Koto-ku, Tokyo

SellerGK KRF 50

Appraisal

Price

Value

(Million yen)

(Million Yen)

8,666

9,010

May 30, 2014

Grace Building Takadanobaba

Toshima-ku, TokyoYK KDX 6

3,650

3,800

May 30, 2014

Fumix STM Building

Utsunomiya, Tochigi

YK KDX 6

2,350

2,450

14,666

15,260

Total

－

－

－

Note: Acquired co-ownership of a trust beneficiary interest in real estate (25%)(4) Risk Factors
There are no significant changes to the “Investment Risks” as described in the Securities Report (including any amendments thereto) submitted
May 8, 2014.
(5) Outlook
Forecasts for the nineteenth fiscal period (May 1, 2014 to October 31, 2014) are presented as follows.
Operating Revenues¥11,249 million
Operating Income¥4,972 million-10-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Ordinary Income
Net Income
Distribution per Unit

¥3,484 million¥3,482 million¥9,810Preconditions and assumptions for the outlooks, please see following “Preconditions and Assumptions for the nineteenth fiscal period ending
October 31, 2014” for more details.
In addition, as stated in “Preconditions and Assumptions for the nineteenth fiscal period ending October 31, 2014”, the Investment Corporation
issued new investment units, acquired assets and new borrowing after the end of eighteenth fiscal period. There is no change in the forecast figures
although these preconditions are updated as of this financial report date from the press release “Notice Concerning the Announcement of Operating
Forecasts for the Fiscal Period Ended April 30, 2014 and Operating Forecasts for the Fiscal Period Ending October 31, 2014” dated May 8, 2014.
Note: Forecast figures above are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income and distribution per unit may
differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does not guarantee payment of the forecasted distribution
per unit.

Preconditions and Assumptions for the nineteenth Fiscal Period Ending October 31, 2014
Preconditions and Assumptions
Calculation Period The nineteenth fiscal period: May 1, 2014 to October 31, 2014 (184 days)
Property Portfolio
 Although the number of real estate and trust beneficiary interests in real estate held by the Investment Corporation asof June 13, 2014 including 3 properties acquired during the nineteenth fiscal period as stated below is 92 properties.
 KDX Toyosu Grand Square (office building) (Acquired on May 30, 2014)
 Grace Building Takadanobaba (office building) (Acquired on May 30, 2014)
 Fumix STM Building (office building) (Acquired on May30, 2014)
 Forecasts are based on the assumption that the number of properties will remain unchanged (sales of assets held andacquisition of new properties, etc.) until the end of the nineteenth fiscal period other than the above mentioned
acquisitions.
 The Investment Corporation also holds an each of TMK preferred securities and TK. It assumes the refund of its
TMK preferred securities and TK will not occur by the end of the nineteenth fiscal period.
 The actual results may fluctuate due to changes in the property portfolio.
Operating Revenues
 Rental revenues are estimated based on valid leasing agreements as of June 13, 2014 and by considering variablefactors, such as seasonal factors against the backdrop of historical performance, as well as leasing conditions, such as
the recent real estate market conditions, in addition to the difference in number of operating days due to movements
in existing investment assets.
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments from tenants.
Operating Expenses
 Expenses related to rent business other than depreciation are based on the historic expenses, adjusted to reflect
expense variables including seasonal factors.
 An amount of ¥1,072 million has been assumed for property management fees and facility management fees
(property management and building maintenance fees, etc.).
 An amount of ¥920 million has been assumed for taxes and public dues (property tax and city-planning tax, etc.).
 An amount of ¥2,008 million has been assumed for depreciation expense.
 An amount of ¥160 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 the period. Actual repairs,
maintenance and renovation expenses for the 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 the time ofacquisition settlement. In the case of the Investment Corporation, an amount equivalent to the portion allocated to thepurchaser is included in the acquisition price of the property.
Non-Operating The Investment Corporation is assumes issuance costs are ¥143million. These costs over a period of three years
Expensesusing the straight-line method.
 Interest payable (including financing related expenses etc.) of ¥1,423 million is assumed.
Extraordinary Extraordinary profit/loss is not assumed.
Profit/Loss
Debt Financing and The balance of the borrowings and the investment corporation bonds as of June 13, 2014 are ¥163,946.5 million and
Investment Corporation¥6,300 million, respectively.
Bonds
 Of the borrowings as of June 13, 2014, a total of ¥26,611.5 million in borrowings are due during the nineteenth fiscal
period. However, precondition is based on other than all borrowings are presupposed to be refinanced excluding¥211.5 million of the partial payment.
 Forecasts are based on the assumption that there will be no maturity for investment corporation bonds during
nineteenth and nineteenth fiscal period.
Investment Units Issued  Regarding the number of issued investment units, the aggregate number of its investment units issued and-11-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

and OutstandingDistributions per Unit

Distributions in Excessof Earnings per Unit
Other

outstanding to be 355,010 units consisting of (a) 332,540 investment units issued and outstanding as of April 30,
2014, (b) On May 8, 2014 and May 20, 2014, the Board of Directors of the Investment Corporation resolved to issue
maximum of 22,470 new investment units, which is comprised of (i) 21,400 new investment units issued in a capitalincrease through public offering and (ii) maximum of 1,070 new investment units issued through a third-party
allotment in connection with a secondary offering.
The Investment Corporation assumes that there will be no additional changes to the issued and outstanding
investment units for the nineteenth fiscal periods other than the abovementioned issuance of 22,470 investment units.
Distributions per unit are calculated in accordance with the distribution policy outlined in the Investment
Corporation’s Articles of Incorporation.
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 of major
unforeseen renovation expense.



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 and in realestate and other markets.



-12-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

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

Eighteenth Fiscal Period(As of October 31, 2013)(As of April 30, 2014)

Cash and deposits

4,560,384

10,401,130

Cash and deposits in trust

6,892,601

7,654,302

Accounts receivable-trade

254,058

252,557

Prepaid expenses

63,34160,750Consumption Taxes receivable

100,158

219,446

Other

165,092

13,515

12,035,636

18,601,704

ASSETS
Current assets

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings

15,901,982

17,104,159

Accumulated depreciation‐2,887,815‐3,159,760

Buildings, net

13,014,167

13,944,398

Structures

23,371

23,371

Accumulated depreciation‐8,560‐9,270

Structures, net

14,811

14,100Machinery and equipment

365,230

365,230

Accumulated depreciation‐127,543‐137,882

Machinery and equipment, net

237,687

227,348

Tools, furniture and fixtures

79,15780,757

Accumulated depreciation‐34,131‐37,239

Tools, furniture and fixtures, net

45,02643,51730,513,666

34,040,805

87,645,999

95,212,559

Accumulated depreciation‐15,632,614‐16,732,208

Buildings in trust, net

72,013,385

78,480,350

256,376

318,890

Accumulated depreciation‐109,292‐111,124

Structures in trust, net

147,083

207,765

Machinery and equipment in trust

1,401,046

1,608,089

Accumulated depreciation‐604,831‐649,138

Machinery and equipment in trust, net

796,215

958,950

Tools, furniture and fixtures in trust

376,678

392,231

Accumulated depreciation‐226,002‐212,183

Tools, furniture and fixtures in trust, net

150,676

180,048

184,832,979

204,428,467

Land
Buildings in trust*2

Structures in trust

Land in trust
Construction in progress in trust

4,914

1,785

301,770,613

332,527,539

Leasehold right

285,350

285,350

Leasehold right in trust

70,98170,207

Total property, plant and equipment
Intangible assets

Right of using water facilities in trust
Total intangible assets

316

197

356,647

355,754

1,106,339

2,006,886

Investments and other assets
Investment securities-13-

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

Lease and guarantee deposits
Lease and guarantee deposits in trust

124,005

123,825

Long-term prepaid expenses

1,270,206

1,381,048

Others25,171

21,2692,535,722

3,543,030

304,662,983

336,426,324

Investment corporation bond issuance costs

35,65031,327

Investment unit issuance expenses

18,903

107,995

Total investments and other assets
Total noncurrent assets
Deferred assets

Total deferred assets
Total assets

54,553

139,322

316,753,174

355,167,351(Thousands of Yen)
Seventeenth Fiscal Period

Eighteenth Fiscal Period(As of October 31, 2013)(As of April 30, 2014)

Liabilities
Current Liabilities
Accounts payable

628,621702,818

Short-term loans payable

9,100,000

6,000,000

Current portion of long-term loans payable

37,700,000

36,246,500

Accounts payable-other

181,547

275,722

Accrued expenses

152,485

139,003

829

678

49,26024,356

Advances received

1,506,617

1,792,248

Deposits received

6,162

29,071

49,325,524

45,210,399

Investment corporation bond

6,300,000

6,300,000

Long-term loans payable

97,458,000

119,200,000

Tenant leasehold and security deposits

1,700,807

2,064,059

Tenant leasehold and security deposits in trust

11,187,617

12,283,357

Income taxes payable
Accrued consumption taxes

Total current liabilities
Noncurrent liabilities

Total noncurrent liabilities

116,646,424

139,847,417

165,971,948

185,057,816

147,153,820

166,261,745

Reserve for reduction entry

795,928

961,750

Total voluntary reserve

795,928

961,750

Unappropriated retained earnings(undisposed loss)

2,831,476

2,886,039

Total surplus

3,627,405

3,847,789

150,781,225

170,109,535

Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus

Total unitholders' equity
Total net assets*1

Total liabilities and net assets-14-

150,781,225

170,109,535

316,753,174

355,167,351

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(2) Statements of Income(Thousands of Yen）
Seventeenth Fiscal Period

Eighteenth Fiscal Period

May 1, 2013 toNovember 1, 2013 to

October 31, 2013

April 30, 2014

Operating revenue
Rental revenues*18,237,001

9,076,070

Other rental revenues*1

1,264,698

1,254,267

Gain on sales of real estate property*2234,506

497,481

82,98367,467

9,819,190

10,895,287

4,845,826

5,047,050

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

Loss on sales of real estate property, etc.

*2

Asset management fee-

816,665

549,899

564,461

Directors' compensation

7,800

8,100

Asset custody fee

18,786

19,086

Administrative service fees

50,44050,074

Audit fee

10,80010,800

Other operating expenses

94,85095,650Total operating expenses

5,578,403

6,611,888

4,240,787

4,283,398

Interest income

565

572

Dividends and redemption-prescription

1,499

920

62

640

2,127

2,133

988,658

980,272

Operating income
Non-operating income

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

62,01959,291

Borrowing related expenses

321,587

301,079

Amortization of investment corporation bond issuance costs

6,142

4,323

Amortization of investment unit issuance expenses

18,90340,502

Other

12,622

12,925

1,409,933

1,398,394

Ordinary income

Total non-operating expenses

2,832,981

2,887,138

Income before income taxes

2,832,981

2,887,138

Income taxes-current

1,516

1,252

Income taxes-deferred

‐11

13

Total income taxes

1,504

1,265

2,831,476

2,885,872-

166

2,831,476

2,886,039

Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)-15-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(3) Statements of Unitholders’ Equity
Seventeenth fiscal period (May 1, 2013 to October 31, 2013)(Thousands of Yen)
Unitholders' equity
Surplus
Voluntary reserve

Total net assets

Total Surplus

Total unitholders'equityReserve for
Reduction entry

Total Voluntary
reserve

Unappropriatedretained earnings(undisposed loss)

497,042

497,0423,002,198

3,499,241

150,653,061

150,653,061

298,885

298,885‐298,885―――

Distribution from surplus‐2,703,312‐2,703,312‐2,703,312‐2,703,312

Net income

2,831,476

2,831,476

2,831,476

2,831,476

Unitholders' capital

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

Total changes of items during
the period
Balance at the end of current
period147,153,820―

298,885

298,885‐170,721

128,164

128,164

128,164

147,153,820

795,928

795,928

2,831,476

3,627,405

150,781,225

150,781,225

Eighteenth fiscal period (November 1, 2013 to April 30, 2014)(Thousands of Yen)
Unitholders' equity
Surplus
Unitholders' capital

Balance at the start of current
periodChanges of items during theperiodIssuance of new
investment units
Provision of reserve for
reduction entry

147,153,820

Voluntary reserve
Reserve for
Reduction entry

Total Voluntary
reserve

Unappropriatedretained earnings(undisposed loss)

795,928

795,928

2,831,476

Total net assets

Total Surplus

Total unitholders'equity3,627,405

150,781,225

150,781,225

19,107,925

19,107,925

19,107,925‐165,821－――

Distribution from surplus‐2,665,488‐2,665,488‐2,665,488‐2,665,488

Net income

2,885,872

2,885,872

2,885,872

2,885,872

Total changes of items during
the period
Balance at the end of current
period165,821

165,821

19,107,925

165,821

165,82154,562

220,384

19,328,309

19,328,309

166,261,745

961,750

961,750

2,886,039

3,847,789

170,109,535

170,109,535-16-

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

Seventeenth Fiscal Period(May 1, 2013 to October 31, 2013)
I. Retained earnings at the end of period(November 1, 2013 to April 30, 2014)

2,831,476,705

2,886,039,471-

319,183,549

II. Voluntary reserve (Reversal)
Reversal for reserve for reduction entry

2,665,488,100

3,205,020,520(Distribution per Unit)
IV. Voluntary retained earnings (provision)(9,302)(9,638)Provision for reserve for reduction entry

165,821,852-

166,753

202,500

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 to distribute ¥3,205,020,520 which is thereserve for reduction entry as stipulated in Article

maximum integral multiple of 332,540 units issued

66-2 of the Special Taxation Measures Law isand outstanding as the distribution of earnings, which

deducted from unappropriated retained earnings, itbased on the total amount for the reversal of reserve

shall distribute the maximum amount of retained

for reduction entry and unappropriated retained

earnings at the period-end, namely totalingearnings. Procedures for the distribution of amounts¥2,665,488,100 to 286,550 units issued andexceeding distributable income are outlined in Article

outstanding.
Procedures for the distribution of amounts

35-2 of the Investment Corporation’s Articles ofIII. Total Distribution

V. Retained Earnings brought forward to thenext period
Method of calculating the distribution
amountexceeding distributable income are outlined in
Article 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.

-17-

Incorporation. In its fiscal period under review, theInvestment Corporation has decided not to distributecash in excess of distributable profit.

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

(5) Statements of Cash Flows
Seventeenth Fiscal Period

Eighteenth Fiscal Period

May 1, 2013 to October 31, 2013

November 1, 2013 to April 30, 2014

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

2,832,981

2,887,138

Depreciation and amortization

1,696,848

1,826,542

Loss on retirement of fixed assets

10,114-

Amortization of long-term prepaid expenses

301,667

287,473

Interest income

‐565

‐572

Interest expenses

1,050,677

1,039,563

Amortization of investment unit issuance expenses

18,90340,502

Amortization of investment corporation bond issuance expenses

6,142

4,323

Decrease (increase) in accounts receivable-trade‐69,011

1,501

Decrease (increase) in consumption taxes refund receivable‐100,158‐119,288

Decrease (increase) in prepaid expenses‐9,666

2,590

Increase (decrease) in accounts payable

114,262‐46,299‐5,2405,995

Increase (decrease) in accrued consumption taxes‐155,406‐24,903

Increase (decrease) in advances received‐179,837

285,630

Increase (decrease) in deposits received‐10,804

22,909

Increase (decrease) in accounts payable-other

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

1,672,153

3,833,388

Decrease (increase) in long-term prepaid expenses‐169,383‐398,315

Other, net‐22,908‐2,7086,980,767

9,645,471

565

572

‐1,056,257‐1,049,144

‐890

‐945

5,924,184

8,595,953‐100,404‐4,711,702‐14,989,870‐31,468,020‐202,400‐1,109,905-

213,075‐41,444‐35,946

SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of investment securities
Proceeds from investment securities
Payments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits

33,392423,048

Payments of tenant leasehold and security deposits in trust‐581,653‐723,535

Proceeds from tenant leasehold and security deposits in trust

1,127,796

1,916,746

Payments of restricted bank deposits in trust‐94,091‐94,113

Proceeds from restricted bank deposits in trust

32,27980,657‐293

180‐14,816,688‐35,509,516

7,900,000

3,000,000

OthersNet cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Increase in short-term loans payable
Decrease in short-term loans payable‐4,500,000‐6,100,000

Proceeds from long-term loans payable

11,700,000

37,800,000

Repayment of long-term loans payable‐7,211,500‐17,511,500

Proceeds from issuance of investment corporation bonds

1,784,249-

Redemption of investment corporation bonds‐1,500,000-‐

18,978,330‐2,702,998‐2,664,276

Proceeds from issuance of new investment units
Dividends paid

-18-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Net cash provided by (used in) financing activities

5,469,750

33,502,554

Net increase (decrease) in cash and cash equivalents‐3,422,753

6,588,991

Cash and cash equivalents at beginning of period

14,371,602

10,948,849

10,948,849

17,537,840

Cash and cash equivalents at end of period

*

-19-

KENEDIX OFFICE 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
Concerning silent partnership (tokumei kumiai) (TK) interests, the method ofincorporating the amount of equity equivalent to the portion that corresponds to the net gainor loss of TK is added.

2. Depreciation of fixed assets(1) Property, plant and equipment (includes trust assets)
The straight-line method is applied.
Useful lives of the assets ranging are as follows:
Buildings: 2 to 49 years
Structures: 2 to 45 years
Machinery and equipment: 3 to 17 years
Tools, furniture and fixtures: 3 to 20 years(2) Intangible assets (includes trust assets)
The straight-line method is applied.
Right of using water facilities: 6 years
Leasehold rights
Fixed term leasehold is amortized over a contractual period of 48 years and 9 months under thestraight-line method.
(3) Long-term prepaid expenses
The straight-line method is applied.

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

4. Accounting standards for revenues and expenses

Accounting method for property tax
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 it’s pro rata property portion forthe year in each property acquisition price and not as rental expense. The amount of property taxes
included in acquisition prices for the previous fiscal period amounted to ¥26,946 thousand and for the
fiscal period under review amounted to ¥84,126 thousand.

5. Accounting for hedges(1) Hedge accounting method
The deferred hedge method is applied. However, the special treatment is applied for the interest-rate
swap and interest-rate cap agreements that meet the criteria.
(2) Hedging instruments and risks hedged
Hedge instruments
The Investment Corporation enters into interest-rate swap transactions.
The Investment Corporation enters into interest-rate cap transactions.
Risks hedged
Interest rates on debt.
(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its risk management
policies with the objective of hedging risks in accordance with its Articles of Incorporation.
(4) Method of evaluating the effectiveness of hedging-20-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

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 and interest-rate cap agreements that meet the criteria for special
treatment, the evaluation of effectiveness are omitted.
6. 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 of 3
months or less, that are readily convertible to known amounts of cash and present insignificant riskof a change in value.

7. 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 and liabilities in the Investment
Corporation’s balance sheet are as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixturesin trust, land in trust and construction in progress in trust
3. Leasehold rights in trust, right of using water facilities in trust
4. Lease and guarantee deposits in trust
5. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption taxes are separately recorded. Non-deductible consumption taxes applicable to theacquisition of assets are included in the cost of acquisition for each asset.

-21-

KENEDIX OFFICE 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)
Seventeenth Fiscal Period(as of October 31, 2013)

Eighteenth Fiscal Period(as of April 30, 2014)
50,000*2.

50,000

The amount of advanced depreciation of property, plant and equipment acquired by government subsidy(Thousands of Yen)
Seventeenth Fiscal Period(as of October 31, 2013)
Building in trust

Eighteenth Fiscal Period(as of April 30, 2014)
26,230-22-

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

(Thousands of Yen)
Seventeenth Fiscal Period

Eighteenth Fiscal Period

May 1, 2013 to October 31, 2013

November 1, 2013 to April 30, 2014

A. Rental and other operating revenues
Rental revenues
Leasing income

6,649,670

7,380,878

Common area charges

1,587,331

1,695,192

8,237,001

9,076,070

Parking space rental revenues

299,883

326,300

Utility charge reimbursement

851,380

804,403

Miscellaneous

113,434

123,562

Subtotal

1,264,698

1,254,267

9,501,700

10,330,337

Property management fees and facility management fees

951,025

1,016,938

Utilities

928,822916,743

Taxes

851,090

847,465

Repairs and maintenance costs

173,603

193,972

Insurance

14,371

14,825

Total
Other rental revenues

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

Trust fees

42,37645,142Others177,574

185,421

Depreciation
Loss on retirement of fixed assets

1,696,848

1,826,542

10,114-

Total rental and other operating expenses

4,845,826

5,047,050

4,655,873

5,283,286

C. Rental business profit (A – B)
*2. Gain and Loss on sale of real estate property
Seventeenth Fiscal Period (May 1, 2013 to October 31, 2013)(Tousands of Yen)
Ikebukuro Nikko Building
Revenue from sale of the investment property

1,970,000

Costs of the investment property

1,672,153

Other sales expenses

63,340Gain on sale of real estate property

234,506

Eighteenth Fiscal Period (November1, 2013 to April 30, 2014)(Thousands of Yen)
(1) KDX Niigata Building
Revenue from sale of the investment property

630,000

Costs of the investment property

1,427,549

Other sales expenses

19,115Gain on sale of real estate property

816,665(2) Court Mejiro
Revenue from sale of the investment property

1,329,105

Costs of the investment property

1,141,622-23-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Other sales expenses

14,319Gain on sale of real estate property

173,163(3) Kabutocho Nikko Building II
Revenue from sale of the investment property

1,600,000

Costs of the investment property

1,264,216

Other sales’ expenses

11,465Gain on sale of real estate properties

324,318（Notes to the Statements of Changes in Unitholders’ Equity）*Total number of authorized investment units and total number of investment units issued and outstanding
Seventeenth Fiscal Period

Eighteenth Fiscal Period

May 1, 2013 to October 31, 2013

November 1, 2013 to April 30, 2014

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

332,540 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)
Seventeenth Fiscal Period

Eighteenth Fiscal Period

May 1, 2013 to October 31, 2013

November 1, 2013 to April 30, 2014

Cash and deposits

4,560,384

10,401,130

Cash and deposits in trust

6,892,601

7,654,302

Restricted bank deposits held in trust (Note)‐ 504,136-517,592

Cash and cash equivalents

10,948,849

17,537,840

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)
Seventeenth Fiscal Period(as of October 31, 2013)

Eighteenth Fiscal Period(as of April 30, 2014)

Unearned lease payments
Due within one year

1,492,005

1,827,908

Due after one year

6,790,392

11,980,836

Total

8,282,398

13,808,745（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 investment corporation bonds and new investment units. The Investment Corporation makes use of derivative instruments primarily as a risk hedge
against interest rate fluctuations and to lessen interest-rate payments. In addition, it is company policy to not conduct speculative derivative transactions.
Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Financial Instruments and Respective Risks
Investment securities are preferred equity securities of TMK as set forth by the Act on Securitization of Assets and TK interests are exposed to credit risk of theissuer 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 9 years following the closing date. Although a certain portion of said liabilities are subject to interest rate fluctuation risks, the Investment
Corporation utilizes derivative instruments (interest-rate swap transactions, etc.) in order to hedge against such risks.
Derivative instruments are interest-rate swap and interest-rate cap transactions that are used to hedge against interest rate fluctuation risks. Utilizing interest-rate-24-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

swap transactions, the Investment Corporation fixed its interest payments for funds procured on a floating interest rate basis or minimizing the risk of interest rateincrease. With regard to hedge accounting methods, hedging instruments and hedged items, hedge policy, and the method of evaluation of hedge effectiveness,please see 5. Hedge Accounting Method in notes concerning Important Accounting Standards.
(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in Interest Rates and Others)
The Investment Corporation uses interest-rate swap and interest-rate cap 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 to investment securities.
B. Management of Liquidity Risk (Risk of Defaulting on Payments by the Due Date) Associated with Funds Procurement
Although loans and other liabilities are subject to liquidity risks, the Investment Corporation reduces such risks by spreading out payment due dates and 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 are as follows. Furthermore, items whose fair values are recognized to be extremely
difficult to grasp are not included in the following table (Refer to Note 2).
Seventeenth Fiscal Period (as of October 31, 2013)(Thousands of Yen)
Book Value(1) Cash and deposits

Fair Value
4,560,384

Difference
4,560,384-(2) Cash and deposits in trust

6,892,601

6,892,601-

Total assets

11,452,985

11,452,985-(1) Short-term loans payable

9,100,000

9,100,000-(2) Investment corporation bonds(3) Long-term loans payable
Total liabilities

6,300,000

6,482,910

182,910135,158,000

135,751,380

593,380

150,558,000

151,334,290

776,290---

Derivative Transaction
Eighteenth Fiscal Period (as of April 30, 2014)(Thousands of Yen)
Book Value(1) Cash and deposits

Fair Value
10,401,130

Difference
10,401,130-(2) Cash and deposits in trust

7,654,302

7,654,302-

Total assets

18,055,432

18,055,432-(1) Short-term loans payable

6,000,000

6,000,000-(2) Investment corporation bonds

6,300,000

6,483,690

183,690

155,446,500

155,707,336

260,836

167,746,500

168,191,026

444,526---(3) Long-term loans payable
Total liabilities
Derivative Transaction

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.

-25-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Liabilities(1) Short-term loans payable
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used 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 or interest-rate caps and special treatment applied to said swaps or caps are calculated by discounting thetotal amount of principal and interest, which is handled together with applicable interest-rate swaps or interest-rate caps, by the rationally estimated interest rate in the casethat the same type of borrowings are undertaken.
Derivative Transaction
Please refer to the following “Derivative Transaction.”
Note 2: Financial instruments for which it is extremely difficult to determine the fair value
Seventeenth Fiscal Period
Classification(as of October 31, 2013)
Investment securities *(Thousands of Yen)
Eighteenth Fiscal Period(as of April 30, 2014)
1,106,339

2,006,886*Because no quoted market price is available and it is extremely difficult to determine the fair value, the above preferred equity securities of TMK and TK interests are
not included in the preceding table.
Note 3: Redemption schedule of monetary claims after the closing dateSeventeenth Fiscal Period (as of October 31, 2013)(Thousands of Yen)

Less than or Equal
to 1 yr.
Cash and deposits

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

4,560,384

-

-

-

-

-

6,892,601

-

-

-

-

-

11,452,985

-

-

-

-

-

Cash and deposits in trust
Total

1-2 yrs.

Eighteenth Fiscal Period (as of April 30, 2014)(Thousands of Yen)

Less than or Equal
to 1 yr.
Cash and deposits

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

10,401,130

-

-

-

-

-

7,654,302

-

-

-

-

-

18,055,432

-

-

-

-

-

Cash and deposits in trust
Total

1-2 yrs.

Note 4: Investment corporation bonds, repayment of loans after the closing date, planned repayment amount
Seventeenth Fiscal Period (as of October 31, 2013)(Thousands of Yen)

Less than or Equal
to 1 yr.
Short-term loans payable

2-3 yrs.

3-4 yrs.

-

-

-

-

-

-

-

-

4,500,000

1,800,000-

37,700,000

30,558,000

30,800,000

15,000,000

14,500,000

6,600,000(Thousands of Yen)

Eighteenth Fiscal Period (as of April 30, 2014）
Less than or Equal
to 1 yr.
Short-term loans payable
Investment corporation bonds
Long-term loans payable

More than 5yrs.

4-5 yrs.

9,100,000

Investment corporation bonds
Long-term loans payable

1-2 yrs.

1-2 yrs.

2-3 yrs.

3-4 yrs.

More than 5yrs.

4-5 yrs.

6,000,000

-

-

-

-

-

-

-

3,000,000

1,500,000

1,800,000-

36,246,500

32,800,000

17,700,000

19,250,000

15,050,000

34,400,000-26-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)（Notes to the Marketable Securities）
Seventeenth Fiscal Period (as of October 31, 2013) and Eighteenth Fiscal Period (as of April 30, 2014)
Not applicable（Notes to the Derivative Transactions）(1) Items that do not apply hedge accounting
Seventeenth Fiscal Period (as of October 31, 2013) and Eighteenth Fiscal Period (as of April 30, 2014) : Not applicable(2) Items that apply hedge accounting
Seventeenth Fiscal Period (as of October 31, 2013)
Hedge accounting
methodSpecial treatment ofinterest-rate swaps
Special treatment ofinterest-rate caps

Type of Derivative Transactions(Thousands of Yen)
Main target of risk
hedge

Contracted amountMore than 1 yr.

Fair Calculation method forvalue applicable fair value

Interest-rate swap transaction
Fixed rate payable･Floating rate receivable

Long-term loans
payable26,700,000

20,700,000＊-

Interest-rate cap transaction

Long-term loans
payable3,000,000

3,000,000＊-

29,700,000

23,700,000

Total(Thousands of Yen)

Eighteenth Fiscal Period (as of April 30, 2014）
Hedge accounting
methodSpecial treatment ofinterest-rate swaps
Special treatment ofinterest-rate caps

Type of Derivative Transactions

Main target of risk
hedge

Contracted amountMore than 1 yr.

Fair Calculation method forvalue applicable fair value

Interest-rate swap transaction
Fixed rate payable･Floating rate receivable

Long-term loans
payable57,700,000

50,200,000＊-

Interest-rate cap transaction

Long-term loans
payable3,000,000

3,000,000＊-

60,700,000

53,200,000

Total

-

※Special treatment of interest-rate swaps or the interest-rate caps is reported at the fair value of applicable long-term loans payable. This is because such swaps or caps
are handled together with hedged long-term loans payable.
（Notes to the Retirement Payment）
Seventeenth Fiscal Period (as of October 31, 2013) and Eighteenth Fiscal Period (as of April30, 2014): Not applicable（Notes to the Asset Retirement Obligations）
Seventeenth Fiscal Period (as of October 31, 2013) and Eighteenth Fiscal Period (as of April 30, 2014): Not applicable（Notes to the 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
Seventeenth Fiscal Period (May 1, 2013 to October 31, 2013)(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
①Net 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.

-27-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)②Property, 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.
Eighteenth Fiscal Period (November 1, 2013 to April 30, 2014)(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
①Net 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.
②Property, 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.
（Notes to the Tax-Effect Accounting）
1. The significant components of deferred tax assets and liabilities(Thousands of Yen)
Seventeenth Fiscal Period(as of October 31, 2013)

Eighteenth Fiscal Period(as of April 30, 2014)

Deferred tax assets
Enterprise tax payable not included in expenses
Amortization of leasehold rights in trust
Subtotal deferred tax assets
Valuation Allowance
Total deferred tax assets

47

34

1,543

1,807

1,590

1,841

‐1,543-1,80747

34

2. Significant difference between statutory income tax rate and the effective tax rate
(Unit: %)Seventeenth Fiscal Period(as of October 31, 2013)
Statutory tax rate

Eighteenth Fiscal Period(as of April 30, 2014)
36.59

36.59

-34.43-40.62(Adjustments)
Deductible cash distributions
Provision of reserve for reduction entry

-2.14

-

Others0.03

4.07

Effective tax rate

0.05

0.04

3. Tax rate changes after the eighteenth fiscal period
With the Act on Partial Revision of the Income Tax Act (Act No.10, 2014) which was promulgated on March 31, 2014, 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, 2011) was partially amended to
set the taxation period of special corporation tax for reconstruction through March 31, 2014. Accordingly, the effective statutory tax rate used to calculate deferred tax
assets and deferred tax liabilities concerning temporary differences, etc. expected to be resolved in accounting periods starting on April 1, 2014 and after will be changed
to 34.16%. The effect of the announced tax rate changes is immaterial.

-28-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes to the Equity-Method Income and Retained Earnings)
Seventeenth Fiscal Period (May 1 30, 2013 to October 31, 2013) and Eighteenth Fiscal Period (November 1, 2013 to April 30, 2014): Not applicable（Notes to the Related-Party Transactions）
1．Parent Company, corporate unitholders and other
Seventeenth Fiscal Period (May 1, 2013 to October 31, 2013) and Eighteenth Fiscal Period (November 1, 2013 to April 30, 2014): Not applicable
2．Affiliated companies and other
Seventeenth Fiscal Period (May 1, 2013 to October 31, 2013) and Eighteenth Fiscal Period (November 1, 2013 to April 30, 2014): Not applicable
3．Fellow subsidiary companies and other
Seventeenth Fiscal Period (May 1, 2013 to October 30, 2013) and Eighteenth Fiscal Period (November 1, 2013 to April 30, 2014): Not applicable
4．Directors, individual unitholders and other
Seventeenth Fiscal Period (May 1, 2013 to October 31, 2013)
Attributes

Name

Board of Directors and Naokatsu
Close Relatives
UchidaRatio of Possession
Details of Businessof Voting Rights (%)

Business Activities / Position

As above

As above

Executive Director for theInvestment Corporation and CEO
and President of Kenedix OfficePartners, Inc. (Note 6)
As above

As above

As above

As above

Deal Amount(¥Thousands)

Accounting
Term

Balance of
Period End(¥Thousands)
92,022(Note 4)－

Payment of asset management fee
to Kenedix Office Partners, Inc.
(Note 1)

625,499(Note 2)
(Note 4)

Accounts
Payable-otherAs above

1,500(Note 4)－－As above

Payment of business consignment
fee to Kenedix Office Partners,
Inc. (Note 3)
Payment of property
management fee to Kenedix
Office Partners, Inc. (Note 5)

362,457(Note 4)

Accounts
Payable69,683(Note 4)Note 1: Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
Note 2: Asset management fee include ¥65,750 thousand fees related to the acquisition of properties and TK investment are accounted in book value for the individual
real estate and ¥9,850 thousand sales fee related to the sale of property are accounted for in the sales expense for the individual real estate.
Note 3: Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the agreement, “Operating Agency
Agreement” between the Investment Corporation and Kenedix Office Partners, Inc.
Note 4: Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
Note 5: Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the agreement, “Property
Management Agreement” between the Investment Corporation and Kenedix Office Partners, Inc. Property management fee includes ¥33,652 thousand
related to the acquisition of properties are accounted in book value for the individual real estate and ¥2,000 thousand sales fee related to the sale of the property
is accounted for in the sales expense for the individual real estate.
Note 6: Kenedix Residential Partners, Inc. succeeded to the business of Kenedix Advisors, Inc. and Kenedix Office Partners, Inc. as of October 1, 2013, and changed
corporate name to Kenedix Real Estate Fund Management, Inc. Furthermore, Ryosuke Homma appointed as CEO and President of Kenedix Real Estate
Fund Management, Inc., as of October 1, 2013. The deal amount and the balance of period end are showing the Seventeenth Fiscal Period of amounts, which
deal with Kenedix Office Partners, Inc. and after October 1, 2013 with Kenedix Real Estate Fund Management, Inc
Eighteenth Fiscal Period (November 1, 2013 to April 30, 2014)
Not applicable（Notes to the 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)
Seventeenth Fiscal Period

Eighteenth Fiscal Period

May 1, 2013 to October 31, 2013

November 1, 2013 to April 30, 2014

Book Value (Thousands of Yen)
Balance at the beginning of period

290,593,740

302,127,261

Changes during the period

11,533,520

30,756,033

Balance at the end of current period

302,127,261

332,883,294-29-KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Fair value at the end of current period
279,238,000
316,442,000
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.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the seventeenth fiscal period, principal increases were the acquisition ofreal estate trust beneficiary interests in 3 properties totaling ¥14,020,278 thousand, the sale of real estate trust beneficiary interests in 1 property amounting¥1,672,153 thousand and depreciation amounting in ¥1,696,848 thousand and principal increases were the acquisition of real estate in 1 property and realestate trust beneficiary interests in 7 properties totaling ¥35,708,056 thousand, the sale of real estate trust beneficiary interests in 3 properties amounting¥3,833,333 thousand and depreciation amounting in ¥1,826,542 thousand and for the fiscal period under review.
Income and loss for real estate for rental purposes is listed in Notes to the Statements of Income.
(Notes to the Information per Unit)
Seventeenth Fiscal Period

Eighteenth Fiscal Period

May 1, 2013 to October 31, 2013

November 1, 2013 to April 30, 2014

Unitholders’ Equity per Unit

¥526,195¥511,546¥9,881¥8,767Net Income per Unit

Note 1: Net Income per Unit is calculated by dividing Net Income by the weighted average (based on number of days) number of units. Net income per unit after
adjusting for 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.
Seventeenth Fiscal Period

Eighteenth Fiscal Period

May 1, 2013 to October 31, 2013

November 1, 2013 to April 30, 2014

Net Income (Thousands of Yen)
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)

2,831,476

2,885,872--

2,831,476

2,885,872

286,550

329,164（Important Subsequent Events）
Issuance of the New Investment Units
On May 8, 2014 and May 20, 2014, the Board of Directors of the Investment Corporation resolved to issue new investment units as detailed below. The payments werecompleted on May 27, 2014 through issuance of public offering. As a result of the issuance of new investment units, the Investment Corporation had total unitholders’capital of ¥176,138,701,670 with 353,940 investment units outstanding as of May 27, 2014. Furthermore, when new investment units are issued through a third-party
allotment with Nomura Securities Co. Ltd. as the allottee in connection with the secondary offering, the payment date will be June 24, 2014 (planned).
(Issuance of New Investment Units through Public Offering)Issuance of New Investment Units：21,400 units (Domestic Offering 10,700 units, International Offering 10,700 units)

Issue Price（Offer Price）：¥478,725 per unit

Aggregate Issue Price (Total Offer Price)：¥10,244,715,000

Issue Amount (Paid - in Value)：¥461,540 per unit

Total Issue Amount (Aggregate Paid - in Value)：¥9,876,956,000

Payment Date

：May 27, 2014

（Issuance of New Investment Units through Third-Party Allotment）
Issuance of New Investment Units (Maximum)：1,070 units

Issue Amount (Paid - in Value)：¥461,540 per unit

Total Issue Amount (Aggregate Paid - in Value)：¥493,847,800(Maximum)
Payment Date

：June 24, 2014 (Planned)

Allottee：Nomura Securities Co. Ltd.

(Use of Funds)
The funds from the Domestic Offering and International Offering, allocated as a portion of the funds for the acquired properties in Nineteenth Fiscal Period.
Furthermore, the funds from the issuance of new Investment Units by third - party allotment are allocated as proceeds to a portion of fund for future acquisition of
specified assets and repayment of borrowings.

-30-

KENEDIX OFFICE 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 the following table.
Settlement Date
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
November 13, 2013
December 10, 2013

Particulars
Private placement
Public offering
Third-party allotment
Public offering
Third-party allotment
Public offering
Third-party allotment
Public offering
Public offering
Third-party allotment
Public offering
Third-party allotment

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)400
400
75,00075,4003,970
79,37073,660153,030
3,970
157,000
40,900
197,900
2,100
200,000
33,550233,550
51,400284,950
1,600
286,550
43,800330,350
2,190
332,540

Unitholders’ Capital(Millions of Yen)
Increase
Balance(Decrease)200
200
41,86842,0682,216
44,28542,17186,4562,272
88,72934,474
123,203
1,770
124,973
8,156
133,129
13,600146,730
423
147,153
18,198165,351909
166,261

Remarks(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)(Note 11)
(Note 12)Note 1: The Investment Corporation was established with an offer price of ¥500,000 per unit.
Note 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.
Note 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.
Note 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.
Note 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.
Note 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.
Note 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.
Note 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.
Note 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 and repayment of borrowings. The offer price was ¥274,510 per unit with an issue price of ¥264,605 per unit.
Note 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.
Note 11: 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 ¥430,950 per unit with an issue price of ¥415,480 per unit.
Note 12: The Investment Corporation undertook an additional issue of new investment units with an issue price of ¥415,480 per unit by way of third-party
allotment because cash on hand was allocated as a portion of the funds for the acquisition of new properties, the funds from the issuance of new
Investment Units by third-party allotment are allocated as proceeds to compensate for the decrease of cash on hand.
4. Resignation/Appointment of the Directors(1) Resignation/Appointment of the Investment Corporation Directors
At the Investment Corporation’s Seventh General Meeting of Unitholders held on January 22, 2014, Kimio Kodama resigned as supervisory director and Takahiro
Seki was appointed as new supervisory director as of February 3, 2014. Furthermore, Naokatsu Uchida as executive director, Shiro Toba and Yoshihiro Morishima
as supervisory directors were reappointed as of February 3, 2014. Also, Hikaru Teramoto of the Asset Management Company was appointed as alternate 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: Supervisory Director

Takahiro Seki (Date of change: February 3, 2014)

RetiredKimio Kodama (Date of Change: February 2, 2014): Supervisory Director(2) Resignation/Appointment of the Asset Management Company
Appointed: Statutory Auditor (part-time) Testuo Ueda (Date of change: March 26, 2014)
Retired: Statutory Auditor (part-time) Ninji Hayashi (Date of change: March 25, 2014)

Furthermore, Kenedix Real Estate Fund Management, Inc., the asset management company for the Investment Corporation, changed names of organization as-31-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

of February 3, 2014. Due to these changes, Naokatsu Uchida was appointed as Director and COO, General Manager of Office REIT Division and Akira Tanaka
was appointed as Director and COO, General Manager of Residential REIT Division.
5. Reference Information（1）Component of Assets
Type of

Type

Specified Asset

Real Estate

Seventeenth Fiscal Period(as of October 31, 2013)

Area

Office Buildings

Total Amount Held

Ratio

Total Amount Held

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

Tokyo Metropolitan Area

32,068

10.1

36,610

10.3

Other Regional Areas

12,041

3.8

11,944

3.4

44,11013.9

48,555

13.7

Total for Office Buildings
Total for Real Estate
Office Buildings

44,11013.9

48,555

13.7

Tokyo Metropolitan Area

189,38059.8

215,574

60.7

Other Regional Areas

38,877

12.3

37,33610.5

228,258

72.1

252,911

71.2

Total for Office Buildings
Residential Properties
Trust BeneficiaryInterest in Real EstateTokyo Metropolitan Area

5,994

1.9

4,801

1.4

Other Regional Areas

1,745

0.6

1,724

0.5

7,739

2.4

6,526

1.8

22,018

7.0

21,916

6.2

22,018

7.0

21,916

6.2

Total for Residential Properties
Central Urban RetailTokyo Metropolitan Area
Properties
Total for Central Urban Retail Properties
OthersEighteenth Fiscal Period(as of April 30, 2014)

Tokyo Metropolitan Area

-

-

2,973

0.8

-

-

2,973

0.8

258,01681.5

284,327

80.1

Investment Securities (Note 3)

1,106

0.3

2,006

0.6

Bank Deposits and Other Assets

13,5194.3

20,277

5.7

Total Assets

316,753

100.0

355,167

100.0

Total for Others
Total of Trust Beneficiary Interests in Real Estate

Note 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 is rounded down to the nearest ¥1 million.
Note 2: “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
Note 3: The preferred equity securities issued by Senri Property TMK and silent partnership interests in a silent partnership operated by G.K. KRF 31 are indicated forthe previous fiscal period, and the preferred equity securities issued by Senri Property TMK and silent partnership interests in a silent partnership operated by
G.K. KRF 43 are indicated for the current fiscal period.
Seventeenth Fiscal Period(as of October 31, 2013)
Amount (Millions of Yen)

Eighteenth Fiscal Period(as of April 30, 2014)

Ratio (%)

Amount (Millions of Yen)

Ratio (%)

Total of Liabilities

165,97152.4

185,057

52.1

Total Unitholders’ Equity

150,78147.6

170,109

47.9

Total of Assets

316,753

100.0

355,167

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

Name

Number ofBook Value

Evaluation Value (Note 1)

Ratio (%)

Units

(Millions of Yen)

(Millions of Yen)

(Note 2)Preferred Equity
Securities

Senri Property TMK Preferred
Securities (Note 3)

17,820

896

896

0.3

Silent Partnership
Equity Interest

G.K KRF43 Silent Partnership
Equity Interest (Note 4)

-

1,110

1,110

0.3

Note 1: Book value is stated for the evaluation value.

-32-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Note 2: “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
Note 3: Specified asset is the trust beneficiary interest in real estate of Senri Life Science Center Building.
Note 4: Operating asset is the trust beneficiary interest in real estate of Shinjuku Sanei Building.

-33-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

B. Properties Roster(a) The Price of the Investment Properties and the Investment Ratio(Unit: Millions of Yen)
Appraisal Value at the end of Eighteenth 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

6,006

6,520

6,810

4.5

6,390

4.3

4.7

B

1.7

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,255

4,880

4,930

4.8

4,820

4.5

4.9

A

1.3

A-4

KDX Hatchobori Building

3,680

3,401

3,220

3,300

4.8

3,180

4.6

5.0

B

1.0

A-5

KDX Nakano-Sakaue Building

2,533

2,410

2,270

2,340

5.0

2,240

4.8

5.2

B

0.7

A-6

Harajuku F.F. Building

2,450

2,415

3,030

3,060

5.2

2,990

5.0

5.4

A

0.7

A-7

FIK Minami Aoyama

2,270

2,231

2,330

2,360

4.5

2,300

4.3

4.7

A

0.6

A-8

Kanda Kihara Building

1,950

1,831

1,670

1,730

4.8

1,650

4.6

5.0

B

0.5

A-13

KDX Kojimachi Building

5,950

5,654

4,350

4,410

4.3

4,290

4.1

4.5

A

1.7

A-14

KDX Funabashi Building

2,252

2,330

1,950

1,950

6.1

1,940

5.9

6.3

A

0.6

A-15

KDX Hamacho Building

2,300

2,197

2,230

2,260

5.1

2,200

4.9

5.3

A

0.6

A-16

Toshin 24 Building

5,300

4,998

4,020

4,060

5.6

3,970

5.4

5.8

A

1.5

A-17

KDX Ebisu Building

4,640

4,521

4,300

4,330

4.6

4,270

4.3

4.8

A

1.3

A-19

KDX Hamamatsucho Building

3,460

3,164

3,130

3,230

4.4

3,080

4.2

4.6

B

1.0

A-20

KDX Kayabacho Building

2,780

2,816

2,450

2,470

5.0

2,430

4.6

5.1

A

0.8

A-21

KDX Shinbashi Building

3,728

3,811

3,820

3,850

4.4

3,790

4.1

4.5

A

1.1

A-22

KDX Shin-Yokohama Building

2,520

2,375

2,160

2,180

5.9

2,140

5.7

6.1

A

0.7

A-26

KDX Kiba Building

1,580

1,520

1,380

1,400

5.4

1,350

5.2

5.6

A

0.4

A-27

KDX Kajicho Building

2,350

2,342

2,280

2,360

4.8

2,250

4.6

5.0

B

0.6

A-28

KDX Nogizaka Building

1,065

1,106

683

686

5.3

679

5.0

5.4

A

0.3

A-29

KDX Higashi-Shinjuku Building

2,950

3,127

3,370

3,460

4.9

3,330

4.7

5.1

B

0.8

A-30

KDX Nishi-Gotanda Building

4,200

4,019

3,810

3,840

5.0

3,780

4.8

5.2

A

1.2

A-31

KDX Monzen-Nakacho Building

1,400

1,369

1,140

1,190

5.4

1,120

5.2

5.6

B

0.4

A-32

KDX Shiba-Daimon Building

6,090

6,164

4,570

4,600

4.8

4,530

4.5

4.9

A

1.8

A-33

KDX Okachimachi Building

2,000

2,092

1,880

1,920

4.8

1,860

4.7

5.0

B

0.5

A-34

KDX Hon-Atsugi Building

1,305

1,225

1,070

1,100

6.1

1,050

5.9

6.3

B

0.3

A-35

KDX Hachioji Building

1,155

1,262

979

967

5.8

984

5.6

6.0

B

0.3

A-37

KDX Ochanomizu Building

6,400

6,544

6,320

6,440

4.6

6,200

4.4

4.8

A

1.9

A-38

KDX Nishi-Shinjuku Building

1,500

1,560

1,140

1,150

5.0

1,120

4.8

5.2

A

0.4

A-39

KDX Toranomon Building

4,400

4,741

3,440

3,490

4.3

3,390

4.1

4.5

A

1.3

A-40

Toranomon Toyo Building

9,850

9,811

10,50010,700

4.4

10,200

4.2

4.7

A

2.9

A-41

KDX Shinjuku 286 Building

2,300

2,359

2,300

2,330

4.6

2,270

4.4

4.8

A

0.6

A-45

KDX Roppongi 228 Building

3,300

3,423

2,120

2,150

4.7

2,090

4.4

4.8

A

0.9

A-46

Hiei Kudan-Kita Building

7,600

7,581

7,560

7,900

4.4

7,420

4.2

4.6

B

2.2

A-47

KDX Shin-Yokohama 381 Building

5,800

5,724

4,010

4,040

5.8

3,980

5.6

6.0

A

1.7

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,686

2,990

3,020

6.0

2,950

5.5

6.1

A

1.1

A-49

Nissou Dai-17 Building

2,710

2,567

1,570

1,590

5.8

1,540

5.6

6.0

A

0.8

A-50

KDX Ikejiri-Oohashi Building (Note 6)

2,400

2,420

1,510

1,530

5.4

1,490

5.2

5.6

A

0.7

A-51

KDX Hamacho Nakanohashi Building

2,310

2,305

1,800

1,830

5.0

1,760

4.8

5.2

A

0.6

A-52

KDX Kanda Misaki-cho Building

1,380

1,364

959

969

5.1

948

4.8

5.2

A

0.4

A-55

Shin-toshin Maruzen Building

2,110

2,130

1,570

1,570

5.1

1,560

4.7

5.3

A

0.6

A-56

KDX Jimbocho Building

2,760

2,870

1,980

2,000

4.9

1,960

4.6

5.1

A

0.8

A-57

KDX Gobancho Building

1,951

1,949

1,380

1,400

4.6

1,360

4.4

4.8

A

0.5

-34-

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

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other Regional
Areas

No.

Property Name

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-59

KDX Iwamoto-cho Building

1,864

1,751

1,350

1,360

5.1

1,330

4.9

5.3

A

0.5

A-60

KDX Harumi Building

10,250

9,409

8,470

8,610

4.7

8,330

4.4

4.8

A

3.0

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,269

1,890

1,950

4.4

1,870

4.2

4.6

B

0.6

A-62

Koishikawa TG Building

3,080

3,084

3,250

3,290

4.8

3,210

4.6

5.0

A

0.9

A-63

Gotanda TG Building

2,620

2,767

2,620

2,650

4.9

2,590

4.7

5.1

A

0.7

A-64

KDX Nihonbashi 216 Building

2,010

1,928

1,890

1,920

4.4

1,860

4.2

4.6

A

0.5

A-66

KDX Shinjuku Building

6,800

6,897

6,710

6,810

4.3

6,610

4.1

4.5

A

2.0

A-67

KDX Ginza 1chome Building

4,300

4,265

5,080

5,190

4.2

5,030

4.0

4.4

B

1.2

A-68

KDX Nihonbashi Honcho Building

4,000

3,988

4,330

4,430

4.6

4,280

4.4

4.8

B

1.1

A-71

KDX Iidabashi Building

4,670

4,638

5,140

5,270

4.6

5,080

4.4

4.8

B

1.3

A-72

KDX Higashi-Shinagawa Building

4,590

4,853

4,770

4,940

4.8

4,690

4.6

5.0

B

1.3

A-73

KDX Hakozaki Building

2,710

2,831

2,890

2,970

5.0

2,850

4.8

5.2

B

0.8

A-74

KDX Shin-Nihonbashi Building

2,300

2,219

2,520

2,570

4.4

2,500

4.2

4.6

B

0.6

A-75

KDX Nihonbashi Kabutocho Building

11,27011,435

11,70011,700

4.6

11,600

4.1

4.5

A

3.3

A-78

KDX Tachikawa Ekimae Building(Note 6)

1,267

1,311

1,390

1,400

5.7

1,380

5.5

5.9

A

0.3

A-83

KDX Fuchu Building (Note 6)

6,120

6,123

6,700

6,730

5.4

6,680

5.2

5.6

B

1.8

A-84

KDX Kasuga Building (Note 6)

2,800

2,846

3,390

3,430

4.8

3,350

4.6

5.0

A

0.8

A-85

KDX Nakameguro Building (Note 6)

1,880

1,895

2,260

2,340

5.0

2,220

4.8

5.2

B

0.5

A-86

KDX Omiya Building

2,020

2,245

2,430

2,420

5.6

2,430

5.4

5.8

B

0.6

A-87

Itopia Nihonbashi SA Building

2,200

2,218

2,280

2,280

4.9

2,280

4.7

5.1

B

0.6

A-88

Welship Higashi - Shinjuku

1,900

1,912

2,160

2,210

4.8

2,140

4.6

5.0

B

0.5

A-89

KDX Takanawadai Building (Note 6)

5,250

5,292

5,430

5,520

4.8

5,330

4.6

5.0

A

1.5

A-90

KDX Ikebukuro Building (Note 6)

3,900

3,892

4,260

4,310

4.5

4,240

4.3

4.7

B

1.1

A-91

KDX Mita Building (Note 6)

3,180

3,186

3,470

3,540

4.7

3,400

4.5

4.9

A

0.9

A-92

KDX Akihabara Building (Note 6)

2,600

2,610

2,770

2,810

4.6

2,730

4.4

4.8

A

0.7

A-93

Aplus Tokyo Building

4,350

4,571

4,580

4,440

4.6

4,640

4.6

4.8

B

1.2

A-94

KDX Musashi-Kosugi Building (Note 6)

12,00012,043

12,50012,5005.1

12,400

4.8

5.2

A

3.5

A-12

Portus Center Building

5,570

4,396

4,760

4,780

6.2

4,750

6.0

6.4

B

1.6

A-24

KDX Minami Semba Dai-1 Building

1,610

1,486

983

993

5.8

973

5.6

6.0

A

0.4

A-25

KDX Minami Semba Dai-2 Building

1,560

1,327

978

989

5.8

967

5.6

6.0

A

0.4

A-42

Karasuma Building

5,400

5,294

5,030

5,130

5.4

4,990

5.2

5.6

B

1.6

A-44

KDX Sendai Building

2,100

2,095

1,440

1,450

6.0

1,440

6.0

6.2

B

0.6

A-53

KDX Hakata-Minami Building

4,900

4,724

3,320

3,340

6.5

3,300

6.3

6.7

A

1.4

A-54

KDX Kitahama Building

2,220

2,143

1,530

1,530

5.9

1,530

5.5

6.1

A

0.6

A-58

KDX Nagoya Sakae Building

7,550

7,220

4,840

4,930

5.0

4,800

4.8

5.2

B

2.2

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,544

2,680

2,710

7.0

2,640

5.2

7.3

A

0.8

A-70

KDX Sapporo Building (Note 6)

2,005

2,038

2,050

2,110

5.6

2,030

5.4

5.8

B

0.5

A-79

KDX Nagoya Ekimae Building

7,327

7,977

7,710

7,780

5.0

7,630

4.8

5.2

A

2.1

A-80

Nagoya Nikko Shoken Building

4,158

4,235

4,060

4,090

5.4

4,030

5.2

5.6

A

1.2

A-81

Sendai Nikko Building

950

1,046

1,030

1,030

5.8

1,020

5.6

6.0

A

0.2

A-82

KDX Higashi Umeda Building

2,770

2,749

3,400

3,480

4.9

3,370

4.7

5.1

B

0.8

303,951

301,466

284,682

288,834-

90.4

Subtotal of Office Buildings (83 properties)

Residential

Acquisition
Price（Note 1）-

281,371

-

-

Tokyo
Metropolitan
Area

B-19

Residence Charmante Tsukishima

5,353

4,801

4,710

4,760

5.0

4,660

4.8

5.2

A

1.5

Other Regional

B-18

Venus Hibarigaoka

1,800

1,724

1,570

1,580

6.3

1,560

6.1

6.5

A

0.5

-35-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Appraisal Value at the end of Eighteenth Fiscal PeriodType

Acquisition
Price（Note 1）

Amount on
the Balance
Sheet(Note 2)

7,153

6,526

Frame Jinnan-zaka

9,900

9,585

C-2

KDX Yoyogi Building

2,479

2,510

C-4

Ginza 4chome Tower

9,800

9,820

Subtotal of Central Urban Retail Properties (3 properties)

22,17921,916

22,58022,990Tokyo
Metropolitan
Area

2,880

2,973

2,900

2,920

Subtotal of Others (1 property)

2,880

2,973

2,900

2,920

-

2,890

-

Total of 89 properties

336,163

332,883

316,442

321,084-

312,641

-

Area

No.

Property Name

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

6,280

6,340

-

9,600

9,800

4.2

1,980

1,990

11,000

11,200

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)--

Appraiser(Note 4)

Ratio(%)
(Note 5)

-

2.1

Areas
Subtotal of Residential Properties (2 properties)
CentralUrban
RetailProperties

OthersC-1

Tokyo
Metropolitan
Area

D-2

Shinjuku 6-chome Building (Land)

6,220
9,390

4.0

4.4

A

2.9

5.1

1,970

4.7

5.3

A

0.7

3.8

10,800

3.6

4.0

A

2.9

-

6.5

B

0.8

-

-

0.8

-

-

100.0

-

22,160
4.3

-

2,890

4.2

4.3

Note 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.).
Note 2: Figures of less than 1 million are rounded down from the amounts on the balance sheet.
Note 3: Appraisal values (end of the eighteenth fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation’s
Articles of Incorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports
prepared by Japan Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd.
Note 4: As of the fiscal period under review, appraisals of the properties were entrusted to two appraisers: Japan Real Estate Institute and Daiwa Real EstateAppraisal Co., Ltd. In the table, the appraisers are referred to as “A” for Japan Real Estate Institute and “B” for Daiwa Real Estate Appraisal Co., Ltd.
Note 5: Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest 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 (89 properties).
Note 6: The Investment Corporation changed the property names for the following buildings. Same applies below.
No.

New Property Name

Old Property Name

A-50

KDX Ikejiri - Oohashi Building

Ikejiri-Oohashi Building

A-84

KDX Kasuga Building

Kasuga Business Center Building

A-85

KDX Nakameguro Building

Nakameguro Business Center Building

A-70

KDX Sapporo Building

Kitananajo SIA Building

A-78

KDX Tachikawa Ekimae Building

Tachikawa Ekimae Building

A-83

KDX Fuchu Building

Fuchu South Building

A-89

KDX Takanawadai Building

SIA Takanawadai Building

A-90

KDX Ikebukuro Building

Ikebukuro 261 Building

A-91

KDX Mita Building

DNI Mita Building

A-92

KDX Akihabara Building

Akihabara SF Building

A-94

KDX Musashi-Kosugi Building

TKS Musashi-Ksugi Building

Change of Date
December 1, 2013

April 1, 2014

June 1, 2014(b) Property Distribution
Property TypesType

Number of

Acquisition Price

Properties(Millions of Yen)

Ratio (Note) (%)

Office Buildings

83

303,951

90.4

Residential Properties

2

7,153

2.1

Central Urban Retail Properties

3

22,179

6.5

Others

1

2,880

0.8

89

336,163

100.0

Total

-36-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Geographic Distribution
Area

Number of

Acquisition Price

Properties(Millions of Yen)

Ratio (Note) (%)

Tokyo Metropolitan Area

74

283,373

84.2

Other Regional Areas

15

52,79015.7

89336,163

100.0

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

Number of

Acquisition Price

Properties(Millions of Yen)

Ratio (Note) (%)

Less than 1,000

1

950

0.2

1,000 - 2,500

35

67,44420.0

2,500 - 5,000

32

112,24933.3

5,000 - 7,500

1377,30022.97,500 - 10,000

544,70013.2

10,000 - 12,500

333,5209.9

89336,163

100.0

Total

Note: “Ratio” refers to the percentage of the acquisition price by each category to the acquisition prices of the entire portfolio.
Figures are rounded down to the nearest first decimal place.

-37-

KENEDIX OFFICE 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

OfficeBuildings

Area

Tokyo
Metropolitan

No.

Property Name

Site Area（㎡）(Note 1)

A-1

KDX Nihonbashi 313 Building

1,047.72

A-3

Higashi-Kayabacho Yuraku Building

A-4

PML
(%)
(Note 6)

Total Floor Area（㎡）(Note 3)

Type of Structure(Note 4)

Offices

8,613.09

SRC
B2F9

April 1974

9.50

773.43

Offices

5,916.48

SRC
B1F9

January 1987

7.01

KDX Hatchobori Building

992.20

Offices

4,800.43

SRC・RC
B1F8June 1993

6.42

A-5

KDX Nakano-Sakaue Building

1,235.16

Offices, Retail Shops
Residential, Parking
Storage

6,399.42

SRC
B1F11

August 1992

5.20

A-6

Harajuku F.F. Building

699.67Retail Shops, Offices
Parking

3,812.44

SRC
F11

November 1985

5.66

A-7

FIK Minami Aoyama

369.47

Offices, Retail Shops
Residential

1,926.98

SRC
B1F9

November 1988

4.92

A-8

Kanda Kihara Building

410.18

Offices

2,393.94

SRC・RC・S
B1F8

May 1993

7.77

A-13

KDX Kojimachi Building

612.17

Offices, Retail Shops

5,323.81

SRC
B2F9

May 1994

3.60

A-14

KDX Funabashi Building

1,180.41

Offices, Retail Shops

5,970.12

SRC
B1F8

April 1989

2.76

A-15

KDX Hamacho Building

554.80Retail Shops, Offices
Parking

4,133.47

SRC
B2F10

September 1993

6.76

A-16

Toshin 24 Building

1,287.16

Offices, Retail Shops
Parking

8,483.17

SRC
B1F8

September 1984

8.75

A-17

KDX Ebisu Building

724.22

Offices, Retail Shops

4,394.58

SRC
B1F7

January 1992

4.16

A-19

KDX Hamamatsucho Building

504.26

Offices, Retail Shops
Parking

3,592.38

S
F9

September 1999

6.13

A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86

SRC
F8

October 1987

7.90

A-21

KDX Shinbashi Building

536.11

Offices, Retail Shops
Parking

3,960.22

SRC・S
B1F8

February 1992

6.84

A-22

KDX Shin-Yokohama Building

705.00

Offices, Retail Shops
Parking

6,180.51

S
B1F9

September 1990

10.36

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64

RC
F5

October 1992

7.79

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70

SRC
B1F8

March 1990

6.05

A-28

KDX Nogizaka Building

409.36

Offices, Retail Shops
Residential

1,695.07

RC
B1F5

May 1991

9.48

A-29

KDX Higashi-Shinjuku Building

1,340.97

Offices
Storage, Parking

7,885.40

SRC
B1F9

January 1990

3.63

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87

SRC
B1F8

November 1992

8.28

A-31

KDX Monzen-Nakacho Building

580.99

Offices, Retail Shops

2,668.91

SRC
F8

September 1986

5.72

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03

SRC
B1F9

July 1986

7.60

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00

S
F10

June 1988

2.23

A-34

KDX Hon-Atsugi Building

724.62

Offices, Retail Shops

3,603.63

SRC
F8

May 1995

11.12

A-35

KDX Hachioji Building

460.62

Offices, Parking
Retail Shops

2,821.21

SRC
F9

December 1985

13.00

7,720.08

SRC
B1F7

August 1982

2.97

Usage
(Note 2)Completion Date
(Note 5)A-37

KDX Ochanomizu Building

1,515.28

Offices, Storage
Retail Shops, Parking
Mechanical Room

A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63

RC
F5

October 1992

9.02

A-39

KDX Toranomon Building

288.20

Offices, Retail Shops

2,277.38

SRC
B1F9

April 1988

8.07

-38-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Site Area（㎡）(Note 1)

Usage(Note 2)

Total Floor Area（㎡）(Note 3)

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

A-40

Toranomon Toyo Building

869.01

Bank, Offices
Retail Shops, Storage

8,346.83

RC
B2F9

August 1962

13.06

A-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04

SRC・RC
B1F9

August 1989

8.71

A-45

KDX Roppongi 228 Building

408.86

Offices, Retail Shops

2,235.30

SRC
B1F9

April 1989

8.95

A-46

Hiei Kudan-Kita Building

1,844.83

Offices, Retail Shops
Office Room
Parking, Storage

11,425.31

SRC･S
B1F11

March 1988

3.14

A-47

KDX Shin-Yokohama 381 Building (Note 7)

1,229.24

Offices, Retail Shops
Parking, Garbage Room

10,290.30

SRC・RC
B1F10

March 1988
(Note 8)

12.02

A-48

KDX Kawasaki-Ekimae Hon-cho Building

1,968.13

Offices

7,420.87

SRC
B1F9

February 1985

8.34

A-49

Nissou Dai-17 Building

629.00

Offices, Parking

4,016.61

SRC
B1F8

July 1991

13.23

A-50

KDX Ikejiri-Oohashi Building

834.79

Offices

3,482.96

RC
B2F9

September 1988

3.02

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41

SRC
F9September 1988

6.17

A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60

SRC
B1F7

October 1992

9.41

A-55

Shin-toshin Maruzen Building

457.64

Offices, Retail Shops
Parking

3,439.37

SRC
B1F8

July 1990

4.87

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13

SRC
B1F8

May 1994

7.25

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11

S
F8

August 2000

9.06

A-59

KDX Iwamoto-cho Building

266.86

Offices
Residential Complex

1,618.65

S
F9March 2008

7.15

A-60

KDX Harumi Building

2,230.69

Offices, Retail Shops

12,694.32

S・SRC
B1F11

February 2008

5.60

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90

S・SRC
B1F8

April 1992

2.01

A-62

Koishikawa TG Building

1,250.42

Offices, Parking

5,862.02

SRC
B1F8

November 1989

7.54

A-63

Gotanda TG Building

582.90

Offices, Parking

4,440.61

SRC
B1F9

April 1988

8.37

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62

SRC
F9October 2006

6.99

A-66

KDX Shinjuku Building

1,118.12

Offices, Retail Shops
Parking

10,348.02

S・RC
B4F11

May 1993

1.78

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

4,724.62

SRC
F9

November 1991

8.41

A-68

KDX Nihonbashi Honcho Building

583.40

Offices, Parking

5,110.45

SRC
B1F9

January 1984

7.92

A-71

KDX Iidabashi Building

967.38

Offices, Parking

5,422.64

SRC
B1F8

March 1990

8.37

A-72

KDX Higashi-Shinagawa Building

3,115.45

Offices

10,138.65

S・RC
B1F5

January 1993

10.40

A-73

KDX Hakozaki Building

971.83

Offices, Parking

6,332.48

SRC
B1F10

November 1993

7.29

A-74

KDX Shin-Nihonbashi Building

444.32

Offices, Retail Shops
Parking

3,712.25

S
B1F10

November 2002

5.51

A-75

KDX Nihonbashi Kabutocho Building

1,920.79

Offices, Parking

11,705.49

S・SRC
B1F8

November 1998

4.23

A-78

KDX Tachikawa Ekimae Building

464.95

Offices

2,896.48

S
B1F8

February 1990

3.34

A-83

KDX Fuchu Building

2,400.00

Offices, Parking

16,647.00

SRC・S
B1F14

March 1996

2.97

A-84

KDX Kasuga Building

1,319.24

Offices, Retail Shops
Parking

6,444.31

SRC
B1F10

June 1992

7.19

A-85

KDX Nakameguro Building

730.26

Offices

3,455.90

SRC
F7

October 1985

3.44

-39-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other Regional
Areas

No.

Property Name

Site Area（㎡）(Note 1)

Usage(Note 2)

Total Floor Area（㎡）(Note 3)

Type of Structure(Note 4)Completion Date
(Note 5)A-86

KDX Omiya Building

775.67

Offices, Retail Shops,
Parking, Residential

5,055.50①S・SRC B1F8
②S F3April 1993

6.97

A-87

Itopia Nihonbashi SA Building

1,193.91

Offices, Residential,
Parking

7,362.25

SRC
B1F10

July 1995

5.30

A-88

Welship Higashi-Shinjuku

1,072.03

Offices, Retail Shops,
Parking

5,907.00

SRC・RC
B2F10March 1990

3.48

A-89

KDX Takanawadai Building

2,547.15

Office9,265.03

SRC
B1F9

October 1985

6.03

A-90

KDX Ikebukuro Building

472.94

Offices, Retail Shops,
Parking

3,848.18

S・RC
B1F10

March 2009

5.74

A-91

KDX Mita Building

548.72

Offices, Retail Shops,
Parking

5,007.98

S・SRC
B3F11

March 1993

7.60

A-92

KDX Akihabara Building

374.88Retail Shops, Office2,979.14

SRC
B1F9

December 1973

9.37

A-93

Aplus Tokyo Building

1,341.98

Offices, Parking

6,764.37

SRC
B1F8

January 1994

7.67

A-94

KDX Musashi-Kosugi Building

3,210.09

Offices, Retail Shops

16,094.14

S
B1F11

May 2013

5.72

A-12

Portus Center Building

13,936.63

Offices, Retail Shops
Storage, Parking

79,827.08

SRC・S
B2F25

September 1993

3.48

A-24

KDX Minami Semba Dai-1 Building

715.44

Offices, Parking

4,236.59

SRC・RC・S
B1F9March 1993

9.04

A-25

KDX Minami Semba Dai-2 Building

606.45Parking, Retail Shops
Offices, Residential

3,315.93

SRC・S
B1F9

September 1993

10.59

A-42

Karasuma Building

1,788.67

Offices

12,632.68

SRC
B1F8

October 1982

8.37

A-44

KDX Sendai Building

987.78

Offices

5,918.30

SRC
B1F10

February 1984

1.93

A-53

KDX Hakata-Minami Building

1,826.25

Offices, Retail Shops
Parking

13,238.16

SRC
B1F9

June 1973

1.48

A-54

KDX Kitahama Building

751.92

Offices, Storage
Parking

4,652.96

S
F10

July 1994

9.79

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retail Shops

9,594.00

S
F11

April 2009

2.87

A-69

KDX Kobayashi-Doshomachi Building (Note 9)

1,561.04

Offices, Parking
Retail Shops

10,723.83

S・SRC
B1F12

July 2009

13.79

A-70

KDX Sapporo Building

819.44

Offices

5,503.90

SRC
B1F9

October 1989

0.51

A-79

KDX Nagoya Ekimae Building

1,354.10

Offices, Retail Shops

13,380.30

S・SRC
B2F15

April 1986

12.13

A-80

Nagoya Nikko Shoken Building

1,403.93

Offices, Retail Shops
Parking

14,308.76

SRC
B3F11

August 1974

14.36

A-81

Sendai Nikko Building

522.14

Offices

3,598.01

SRC・S
B1F8

March 1989

3.48

A-82

KDX Higashi Umeda Building

804.50

Offices, Retail Shops
Parking

6,805.76

S・SRC
B1F10

July 2009

8.78

-

-

-

-

Avg. 22.7yrs (Note 8)-

Subtotal of Office Buildings (83 properties)
Tokyo
Metropolitan
Area

B-19

Residence Charmante Tsukishima

4,252.86

Residential Complex

18,115.39

SRC
B1F10

January 2004

9.88

Other Regional
Areas

B-18

Venus Hibarigaoka

8,595.00

Residential Complex

14,976.25①RC F6②RC F5③RC F6

March 1989

5.20

-

-

-

-

Avg. 14.0 yrs-

Residential

Subtotal of Residential Properties (2 properties)

CentralUrban
RetailProperties

PML(%)(Note 6)

Tokyo
Metropolitan
Area

C-1

Frame Jinnan-zaka

1,240.51

Retail Shops

6,302.58

S・RC・SRC
B2F7March 2005

8.02

C-2

KDX Yoyogi Building

228.74Retail Shops, Offices

1,269.06

SRC
F8

August 1991

8.17

C-4

Ginza 4chome Tower

688.52Retail Shops, Offices,
Parking

6,787.33

S
B1F13

November 2008

1.16

-

-

-

-

Avg. 8.9 yrs-

Subtotal of Central Urban Retail Properties (3 properties)-40-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note 1)

Total Floor Area（㎡）(Note 3)

Other

Tokyo
Metropolitan
Area

D-2

Shinjuku 6-chome Building (Land)

1,355.13

-

-

-

-

-

-

-

-

Avg. 21.6 yrs (Note 8)

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

Subtotal of Others (1 property)
Total of 89 properties

4.94(Note 6)Note 1: Site area data is based on figures recorded in the land register (including relevant figures for leasehold land, if any). Data may not match with 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.
Note 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.
Note 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.
Note 4: Type of structure data is based on data recorded in the land register. For buildings with compartmentalized ownership, the structure and the number 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.
Note 5: Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data are is calculated using theweighted-average based on acquisition prices as of April 30, 2014, and is rounded down to the nearest first decimal place.
Note 6: Probable Maximum Loss (PML) data is based on a survey provided by Sompo Japan Nipponkoa Risk Management, Inc. as of March 2014.
Note 7: KDX Shin-Yokohama 381 Building is comprised from two compartmentalized buildings within a single building. By consolidating them together, they
become a property that comprises the entire building (total ownership ratio: 100%).
Note 8: 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 and Shinjuku 6-chome Building (Land) are notconsidered.
Note 9: KDX Kobayashi Doshomachi Building includes the term leasehold interest with a special agreement to transfer building.

-41-

KENEDIX OFFICE 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 nineteenth fiscal period (May 1, 2014 to October
31, 2014) are as follows. Planned capital expenditure may include portions classified into expenses for accounting purposes.

Property Name

Schedule

Purpose(Location)

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

Toranomon Toyo Building

Air conditioning system

May 2014 to(Minato-ku, Tokyo)

construction, other

October 2014

Frame Jinnan-zaka

Change usage construction to(Shibuya-ku, Tokyo)

office, other

Itopia Nihonbashi SA Building

Air conditioning system(Chuo-ku, Tokyo)

construction

KDX Jimbocho Building(Chiyoda-ku, Tokyo)

Renovate external wall

143

-

1

As above87--

As above79--

As above53--② Capital Expenditures during the Fiscal Period Under Review (fiscal period ended April 30, 2014)
The Investment Corporation undertook the following major capital expenditures. In the fiscal period under review (fiscal period ended April 30, 2014), theInvestment Corporation completed works across its entire portfolio totaling ¥905 million. This total comprised of ¥711 million in capital expenditures and ¥193
million for repairs, maintenance and renovation expenses.
Property Name
(Location)
KDX Nagoya Ekimae Building(Nagoya, Aichi)
KDX Omiya Building(Omiya, Omiya)
KDX Hon-Atsugi Building(Atsugi, Kanagawa)

Schedule

PurposeAir conditioning system construction, other183

As above119

Air conditioning system construction, other

As above93

As above92

As above

63

Upgrade of common areas, OA floor(Minato-ku, Tokyo)

construction, other(Hachioji, Tokyo)

to April 2014

(Millions of Yen)

Air conditioning system construction, other

KDX Shinbashi Building
KDX Shinjuku Building

November 2013

Amount of Capital Expenditures

Air conditioning system construction, other
Others159

Portfolio Total

711

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

-42-

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

Fourteenth Fiscal Period Fifteenth Fiscal Period

Sixteenth Fiscal Period

Seventeenth Fiscal Period Eighteenth Fiscal Period(November 1, 2011 to(May 1, 2012 to(November 1, 2012 to(May 1, 2013 to October(November 1, 2013 toApril 30, 2012)

October 31, 2012)

April 30, 2013)31, 2013)

April 30, 2014)

Reserve for the end of theprevious period

517

643

503

523

502

Reserve for the fiscal
period under review

296

224

30

12

3

Reversal of reserve for the
fiscal period under review

170

364

10

34

11

Reserve brought forward to
the next period

643

503

523

502

493

-43-

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

Area

No.

A-1
A-3

OfficeBuildings

Tokyo
Metropolitan
Area

Property NameKDX Nihonbashi 313
Building
Higashi-Kayabacho Yuraku
Building

Total Leasable
Floor Area (㎡)(Note 1)

Total Leased
Floor Area(㎡)(Note 2)

Total No. of
Leasehold andTotal No. of
Total Rental
LeasedNo. of Occupancy
Leasableand Other Operating Security Deposits
Residential Tenants Ratio (%）(¥thousands)
Residential
Revenues
units(Note 5) (Note 6)(Note 8)(¥thousands)(Note 7)
units (Note 3)(Note 4)

5,889.32

5,889.32-

4,379.66

4,379.66

-

-

10

100.0

196,833

232,1238

100.0

111,758

216,322A-4

KDX Hatchobori Building

3,323.73

3,323.73

-

-

5

100.0

119,385

134,559

A-5

KDX Nakano-Sakaue
Building

4,390.27

4,390.27

18

18

25

100.0

88,96688,505

A-6

Harajuku F.F. Building

3,068.36

3,068.36

-

-

3

100.0

106,871

169,343

A-7

FIK Minami Aoyama

1,814.56

1,814.56

-

-

7

100.0

75,482

107,055

A-8

Kanda Kihara Building

1,947.84

1,713.85

-

-

10

88.0

48,42095,108

A-13

KDX Kojimachi Building

3,793.02

3,793.02

-

-

10

100.0

141,010

228,450

A-14

KDX Funabashi Building

3,833.19

3,833.19

-

-

23

100.0

103,854

127,138

A-15

KDX Hamacho Building

3,100.22

3,100.22

-

-

10

100.0

78,862

100,485

A-16

Toshin 24 Building

6,623.33

6,255.35

-

-

18

94.4

170,919

255,131

A-17

KDX Ebisu Building

3,074.47

3,074.47

-

-

6

100.0

125,601

229,205

A-19

KDX Hamamatsucho
Building

2,724.35

2,724.35

-

-

9

100.0

91,445

126,185

A-20

KDX Kayabacho Building

3,019.93

2,564.52

-

-

6

84.9

80,776

77,961A-21

KDX Shinbashi Building

2,805.35

2,434.22

-

-

7

86.8

50,263

149,391

A-22

KDX Shin-Yokohama
Building

4,788.04

4,505.86

-

-

18

94.1

94,962

153,914

A-26

KDX Kiba Building

2,455.43

2,162.48

-

-

6

88.1

41,02858,746

A-27

KDX Kajicho Building

2,564.65

2,564.65

-

-

10

100.0

77,07088,245

A-28

KDX Nogizaka Building

1,251.40

1,251.40

1

1

6

100.0

23,51525,834A-29

KDX Higashi-Shinjuku
Building

5,930.96

5,930.96

-

-

6

100.0

137,080

124,758

A-30

KDX Nishi-Gotanda Building

3,881.58

3,881.58

-

-

5

100.0

142,563

203,523

A-31

KDX Monzen-Nakacho
Building

2,008.74

2,008.74

-

-

7

100.0

48,33643,788A-32

KDX Shiba-Daimon Building

5,997.36

5,997.36

-

-

10

100.0

117,260

190,943

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

2

100.0

67,152110,237

A-34

KDX Hon-Atsugi Building

2,746.89

2,746.89

-

-

11

100.0

48,712

71,349A-35

KDX Hachioji Building

2,178.61

2,178.61

-

-

8

100.0

50,57344,998A-37

KDX Ochanomizu Building

5,880.71

5,880.71

-

-

7

100.0

187,164

227,261

A-38

KDX Nishi-Shinjuku
Building

1,593.60

1,593.60

-

-

9

100.0

45,72657,517

A-39

KDX Toranomon Building

1,966.56

1,966.56

-

-

7

100.0

102,949

179,712

A-40

Toranomon Toyo Building

6,499.63

6,299.81

-

-

9

96.9

302,935

507,244

A-41

KDX Shinjuku 286 Building

2,444.89

2,444.89

-

-

8

100.0

83,698102,108

A-45

KDX Roppongi 228 Building

1,910.88

1,409.84

-

-

7

73.8

39,67873,552

Hiei Kudan-Kita Building

6,897.59

6,897.59

-

-

14

100.0

243,638

319,283

8,131.47

8,131.47

-

-

43

100.0

169,358

237,573

5,124.98

5,124.98

-

-

1

100.0

101,567

155,571

Nissou Dai-17 Building

2,730.85

2,730.85

-

-

9

100.0

50,496

68,274KDX Ikejiri-Oohashi Building

2,456.72

2,244.16

-

-

7

91.3

60,97470,6002,239.13

2,239.13

-

-

9

100.0

67,421

86,4951,330.06

809.19

-

-

5

60.8

22,624

28,632

A-46
A-47
A-48
A-49
A-50
A-51
A-52

KDX Shin-Yokohama 381
Building
KDX Kawasaki-Ekimae
Hon-cho Building

KDX Hamacho Nakanohashi
Building
KDX Kanda Misaki-cho
Building

A-55

Shin-toshin Maruzen Building

1,912.28

1,912.28

-

-

5

100.0

57,59972,273A-56

KDX Jimbocho Building

2,321.80

2,321.80

-

-

3

100.0

67,65396,451A-57

KDX Gobancho Building

1,649.47

1,649.47

-

-

7

100.0

42,261

52,840A-59

KDX Iwamoto-cho Building

1,529.91

1,529.91

3

3

10

100.0

45,72256,592

A-60

KDX Harumi Building

9,294.00

6,709.44

-

-

8

72.2

162,881

286,059

A-61

KDX Hamamatsucho Dai-2
Building

1,954.23

1,954.23

-

-

8

100.0

56,553

95,821-44-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

No.

A-62

3,945.54

-

-

5

100.0

129,653

157,041

A-63

Gotanda TG Building

3,161.80

3,161.80

-

-

10

100.0

94,985

123,146

A-64

KDX Nihonbashi 216
Building

1,615.20

1,615.20

-

-

8

100.0

53,03490,758A-66

KDX Shinjuku Building

5,836.69

5,160.28

-

-

18

88.4

218,050275,062

A-67

KDX Ginza 1chome Building

3,573.59

3,573.59

-

-

4

100.0

147,283

169,724

A-68

KDX Nihonbashi Honcho
Building

3,998.39

3,998.39

-

-

8

100.0

126,684

212,323

A-71

KDX Iidabashi Building

4,429.25

4,429.25

-

-

5

100.0

164,955

227,405

A-72

KDX Higashi-Shinagawa
Building

7,110.62

5,456.15

-

-

4

76.7

166,704

183,482

KDX Hakozaki Building

3,992.60

3,137.88

-

-

7

78.6

92,621

117,7932,658.79

2,658.79

-

-

9

100.0

79,075

124,455

7,562.93

7,562.93

-

-

7

100.0

190,897

330,311

A-74
A-75

KDX Shin-Nihonbashi
Building
KDX Nihonbashi Kabutocho
Building
KDX Tachikawa Ekimae
Building

1,612.13

1,612.13

-

-

5

100.0

63,55486,432A-83

KDX Fuchu Building

10,151.48

9,907.27

-

-

34

97.6

296,887

339,565

A-84

KDX Kasuga Building

4,344.41

4,344.41

-

-

14

100.0

123,615

144,836

A-85

KDX Nakameguro Building

2,681.29

2,681.29

-

-

6

100.0

82,092

109,271

A-86

KDX Omiya Building

3,816.33

3,816.33

1

1

18

100.0

109,505

183,283

3,106.42

2,518.07

8

7

12

81.1

99,756

95,673

4,037.44

4,037.44

-

-

7

100.0

88,99074,597

A-87
A-88

Itopia Nihonbashi SA
Building
Welship Higashi-Shinjuku
Building

A-89

KDX Takanawadai Building

6,952.41

6,655.14

-

-

7

95.7

148,772

236,346

A-90

KDX Ikebukuro Building

3,110.56

3,110.56

-

-

10

100.0

116,193

196,987

A-91

KDX Mita Building

3,416.30

3,021.57

-

-

9

88.4

100,529

132,876

A-92

KDX Akihabara Building

2,288.93

2,288.93

-

-

7

100.0

70,711

95,038A-93

Aplus Tokyo Building

4,487.22

4,487.22

-

-

1

100.0

103,305

325,771

A-94

KDX Musashi-Kosugi
Building

12,978.52

12,442.16

-

-

4

95.9

85,860592,887

Portus Center Building

11,533.14

11,127.20

-

-

28

96.5

289,199

356,106

3,106.73

2,834.08

-

-

13

91.2

48,02462,572

2,697.65

1,904.19

-

-

18

70.6

43,27434,006

Karasuma Building

8,744.01

8,744.01

-

-

38

100.0

201,179

276,998

A-44

KDX Sendai Building

3,958.39

3,636.75

-

-

30

91.9

84,478143,184

A-53

KDX Hakata-Minami
Building

9,917.35

9,496.09

-

-

51

95.8

169,109

221,186

A-54

KDX Kitahama Building

3,995.50

3,708.71

-

-

11

92.8

76,65083,417

A-58

KDX Nagoya Sakae Building

6,923.12

6,923.12

-

-

15

100.0

186,615

206,317A-69

KDX Kobayashi-Doshomachi
Building

7,072.23

7,072.23

-

-

13

100.0

174,599

251,198

A-70

KDX Sapporo Building

3,788.51

3,703.78

-

-

20

97.8

85,892

111,552

7,932.43

7,932.43

-

-

19

100.0

317,871497,522

7,993.37

7,635.37

-

-

10

95.5

196,960

264,092

A-12
A-24
A-25
A-42

Other
Regional
Areas

A-79
A-80

KDX Minami Semba Dai-1
Building
KDX Minami Semba Dai-2
Building

KDX Nagoya Ekimae
Building
Nagoya Nikko Shoken
Building

A-81

Sendai Nikko Building

2,538.40

2,226.50

-

-

5

87.7

57,04876,448A-82

KDX Higashi Umeda
Building

4,986.24

4,986.24

-

-

11

100.0

130,598

109,260

353,308.47

338,783.09

31

30

923

95.9

9,364,836

13,546,111

Subtotal of Office Buildings (83 properties)

Residential

CentralUrban Retail
Properties

Tokyo
Metropolitan
Area
Other
Regional
Areas

Total Leased
Floor Area(㎡)(Note 2)

3,945.54

A-78

OfficeBuildings

Total Leasable
Floor Area (㎡)(Note 1)

Koishikawa TG Building

A-73
Tokyo
Metropolitan
Area

Property Name

Total No. of
Total No. of
Total Rental
Leasehold andLeasedNo. of Occupancy
Leasableand Other Operating Security Deposits
Residential Tenants Ratio (%）
Residential
Revenues(¥thousands)
units(Note 5) (Note 6)
units (Note 3)(¥thousands)(Note 7)(Note 8)(Note 4)

B-19

Residence Charmante
Tsukishima

7,711.14

7,711.14

140

140

1
(Note 9)100.0

149,844

50,580B-18

Venus Hibarigaoka

12,829.64

12,084.74

159

150

113

93.7

90,03824,018Subtotal of Residential Properties (2 properties)

20,540.78

19,730.59

299

289

114

96.1

239,883

74,598

Tokyo
Metropolitan
Area

C-1

Frame Jinnan-zaka

4,653.40

4,479.62

-

-

11

96.3

269,625

215,764

C-2

KDX Yoyogi Building

1,177.00

1,177.00

-

-

11

100.0

69,075

108,150-45-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

OthersTotal Leased
Floor Area(㎡)(Note 2)

Total No. of
Total No. of
Total Rental
Leasehold andLeasedNo. of Occupancy
Leasableand Other Operating Security Deposits
Residential Tenants Ratio (%）
Residential
Revenues(¥thousands)
units(Note 5) (Note 6)
units (Note 3)(¥thousands)(Note 7)(Note 8)(Note 4)No.

Property Name

Total Leasable
Floor Area (㎡)(Note 1)

C-4

Ginza 4chome Tower

5,624.23

5,624.23

-

-

4

100.0

275,484

346,121

Subtotal of Central Urban Retail Properties (3 properties)

11,454.63

11,280.85

-

-

26

98.5

614,186

670,036

1,355.13

1,355.13

-

-

1

100.0

4,911

56,6701,355.13

1,355.13

-

-

1

100.0

4,911

56,67096.0

10,223,818

14,347,417

Area

Tokyo
Metropolitan
Area

D-2

Shinjuku 6-Chome Building

Subtotal of Others (1 property)
Total of 89 properties

386,659.01

Occupancy Ratio over the Past Five Years

October31, 2009

94.7%

April30, 2010

94.4%

October 31, 2010

93.6%

April30, 2011

94.6%

October 31, 2011

94.7%

April 30, 2012

95.4%

October 31, 2012

95.5%

April 30, 2013

93.9%

October 31, 2013

95.8%

April 30, 2014

96.0%

371,149.66

330

319

1,064
(Note 10)Notes:
Note 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 buildingin the case of more than one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion
plans. However, the indicated figure of rentable area for Shinjuku 6-chome Building (Land) is rentable area stated in the land lease agreement.
Note 2: Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
Note 3: The total number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential purposes.
Note 4: The total number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end
tenants or sub-lease agreements are signed.
Note 5: The total number of tenants refers to the actual number of end tenants for each property. However, for Residence Charmante Tsukishima, please refer toNote 9.
Note 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.
Note 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 thousandyen.
(Reference) Total operating rental and other revenues for properties sold during the Eighteenth Fiscal Period
Type of Property

No.

Total Rental and Other Operating Revenues (¥thousands)

Property Name

Office Building

A-36

KDX Niigata Building

32,343

Office Building

A-77

Kabutocho Nikko Building II

42,558Residential

B-3

Court Mejiro

31,616Note 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) andguarantee deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest thousand yen.
Note 9: Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-term lease: until January 30, 2016) fixed-term building lease
contract (term of contract: to January 30, 2029) with Sekiwa Real Estate, Ltd., a master lessor, the total number of tenants is indicated as 1.
Note 10: The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.
(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 sixteenthfiscal period (fiscal period ended April 30, 2014).
(v) Information concerning major tenants①Tenant which holds more than 10% of the total leased area: Not applicable-46-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)②Reference: Major end tenants

Property Name

Leased Floor
Area(As of April 30, 2014)
Percentage of Total Leased
Floor Area (Note 1)

1 Kenedix, Inc.

KDX Nihonbashi Kabutocho Building,
KDX Musashi-Kosugi Building

13,444.18 m2

3.6%

2 Sekiwa Real Estate, Ltd.

Residence Charmante Tsukishima

7,711.14 m2

2.1%

3 SMBC Nikko Securities, Inc.

KDX Tachikawa Ekimae Building,
KDX Nagoya Ekimae Building, Nagoya Nikko Shoken
Building, Sendai Nikko Building,

7,537.14 m2

2.0%

4 N / A (Note 3)

KDX Kawasaki-Ekimae Hon-cho Building

5,124.98 m2

1.4%

2

4,487.22 m

1.2%

2

38,304.66 m

10.3%

2

100.0%Name of End Tenant

5 APLUS Co., Ltd.

Aplus Tokyo Building
Subtotal
Total Portfolio

371,149.66 m

Note 1: Percentage of total leased floor area refers to the floor area leased to each end tenant as a proportion of total leased floor area. Figures are rounded to thenearest first decimal place.
Note 2: Kenedix Inc. sub-leases part of properties leased from the Investment Corporation, its master lease company, to third parties. The ratio of leased floorarea for KDX Nihonbashi Kabutocho Building and KDX Musashi-Kosugi Building is 0.7% and 2.9% respectively.
Note 3: Not disclosed due to the tenants’ request.

-47-

a0011

a0031

a0041

a0051

a0061

a0071

a0081

a0131

a0141

a0151

【Reference】

Earnings Performance for the Individual Properties for the 18th Fiscal Period (November 1, 2013 to April 30, 2014)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0161

a0171

a0191

a0201

a0211

※As of April 30, 2014
Office Buildings

Property No.

A001

A003

A004

A005

A006

A007

A008

A013

A014

A015

A016

A017

A019

A020

A021

Property NameKDX Nihonbashi
313 Building

HigashiKayabacho
Yuraku Building

KDX Hatchobori
Building

KDX NakanoSakaue Building

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
Hamamatsucho
Building

KDX Kayabacho
Building

KDX Shinbashi
Building

Acquisition Date
Price Information

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)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
5,940
4,450
3,680
2,533
2,450
2,270
1,950
5,950
2,252
2,300
5,300
4,640
3,460
2,780
3,728
1.8%
1.3%
1.1%
0.8%
0.7%
0.7%
0.6%
1.8%
0.7%
0.7%
1.6%
1.4%
1.0%
0.8%
1.1%
6,006
4,255
3,401
2,410
2,415
2,231
1,831
5,654
2,330
2,197
4,998
4,521
3,164
2,816
3,811
6,520
4,880
3,220
2,270
3,030
2,330
1,670
4,350
1,950
2,230
4,020
4,300
3,130
2,450
3,820
2.1%
1.5%
1.0%
0.7%
1.0%
0.7%
0.5%
1.4%
0.6%
0.7%
1.3%
1.4%
1.0%
0.8%
1.2%
10
8
5
25
3
7
10
10
23
10
18
6
9
6
7
5,889.32
4,379.66
3,323.73
4,390.27
3,068.36
1,814.56
1,947.84
3,793.02
3,833.19
3,100.22
6,623.33
3,074.47
2,724.35
3,019.93
2,805.35
5,889.32
4,379.66
3,323.73
4,390.27
3,068.36
1,814.56
1,713.85
3,793.02
3,833.19
3,100.22
6,255.35
3,074.47
2,724.35
2,564.52
2,434.22

Occupancy ratio
Lease Information

As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
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

Income and Retained Earnings Information for the 18th Fiscal Period

Operating periods①Rental and other operating revenues (\ Thousands)
Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)⑦ＮＣＦ （＝③-⑥） (\ Thousands)
Expense ratio （＝②／①）
Ｐroperty tax for the year 2014 or 2013 (\ Thousands)

Reference

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

Reference： Percentage of rental and other operating revenues

100.0%
100.0%
99.7%
100.0%
94.6%
85.2%
71.8%
100.0%
100.0%
100.0%
181days
196,833
179,719
17,11455,055
15,923
20,57915,751
1,158
214
1,427
141,777
27,436
114,340
2,494
139,282
28.0%
41,1276,910
3.51%

100.0%
100.0%
89.1%
89.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
111,758
100,504
11,25331,797
11,028
8,932
9,390
666
143
1,636
79,961
26,90853,053
1,417
78,543
28.5%
17,8643,912
3.50%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
93.1%
181days
119,385
103,225
16,16033,561
11,504
8,658
9,772
2,309
132
1,185
85,824
19,124
66,69985,82428.1%
17,3164,187
3.51%

100.0%
100.0%
100.0%
100.0%
98.3%
84.1%
100.0%
96.5%
100.0%
91.3%
181days
88,96673,042
15,92328,086
9,279
7,553
9,303
685
161
1,103
60,87915,44145,43760,87931.6%
15,1083,058
3.44%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
106,871
97,5509,321
24,543
6,757
7,977
6,361
1,127
99
2,220
82,3289,364
72,96382,32823.0%
15,9553,861
3.61%

100.0%
100.0%
100.0%
88.4%
100.0%
100.0%
100.0%
100.0%
77.1%
100.0%
181days
75,48268,3007,182
18,132
5,201
5,722
5,323
736
54
1,093
57,3506,414
50,935530
56,82024.0%
11,445
2,710
3.59%

88.0%
76.2%
86.5%
100.0%
100.0%
100.0%
93.5%
100.0%
100.0%
100.0%
181days
48,42044,133
4,286
15,191
4,932
4,062
4,300
1,241
57
597
33,2288,227
25,001
1,963
31,265
31.4%
8,109
1,666
3.44%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
91.9%
97.1%
86.7%
181days
141,010
121,078
19,931
40,23010,022
16,87011,801
414
149
972
100,780
19,655
81,124
3,832
96,94728.5%
33,7404,934
3.50%

100.0%
100.0%
100.0%
100.0%
100.0%
98.7%
100.0%
98.5%
100.0%
100.0%
181days
103,854
89,201
14,652
33,176
13,115
7,336
10,489
1,580
141
513
70,677
19,37551,302
240
70,43731.9%
14,6623,561
3.43%

100.0%
88.7%
100.0%
100.0%
95.0%
95.0%
100.0%
93.9%
100.0%
100.0%
181days
78,862
68,37010,491
26,664
8,276
7,026
6,696
2,688
105
1,871
52,197
17,801
34,395
1,070
51,12733.8%
14,011
2,674
3.39%

94.4%
91.1%
100.0%
100.0%
100.0%
96.2%
84.7%
72.7%
84.1%
93.3%
181days
170,919
139,523
31,396
61,656
16,74912,297
19,244787
221
12,356109,263
35,76373,49910,301
98,961
36.1%
24,226
5,718
3.35%

100.0%
83.4%
100.0%
100.0%
100.0%
100.0%
100.0%
83.4%
100.0%
100.0%
181days
125,601
109,940
15,661
34,8549,183
11,00910,146
633
111
3,771
90,747
19,113
71,633
6,688
84,05827.8%
22,0174,415
3.52%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
91,44582,9298,515
26,888
6,997
8,928
6,429
131
86
4,315
64,55622,87841,677690
63,86629.4%
17,857
3,183
3.48%

84.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
80,776
71,556
9,219
22,438
6,989
6,265
7,396
875
95
815
58,337
17,41940,917
6,805
51,531
27.8%
12,531
2,839
3.51%

86.8%
100.0%
100.0%
100.0%
99.5%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
50,26343,3506,913
37,698
5,549
9,417
4,907
9,361
105
8,357
12,564
8,898
3,665
92,137△79,57375.0%
18,8091,282
2.55%

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
12,328135,060
11,255120,000
10,000133,340
11,111Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yr (\ Thousands)
Reference：Amount of yearly avg.

-48-

a0221

a0261

a0271

a0281

a0291

a0301

a0311

a0321

a0331

a0341

【Reference】

Earnings Performance for the Individual Properties for the 18th Fiscal Period (November 1, 2013 to April 30, 2014)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0351

a0371

A022

A026

A027

A028

Property NameKDX ShinYokohama
Building

KDX Kiba
Building

KDX Kajicho
Building

KDX Nogizaka
Building

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

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

May 1, 2006 June 20, 2006

Price Information

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

a0391

a0401

Office Buildings

Property No.

Acquisition Date

a0381

※As of April 30, 2014

A029

A030

A031

A032

A033

A034

A035

KDX
Okachimachi
Building

KDX Hon-Atsugi
Building

KDX Hachioji
Building

A037

A038

A039

A040

KDX Ochanomizu
KDX NishiKDX Toranomon Toranomon Toyo
Building
Shinjuku Building
Building
Building

July 3, 2006

July 14, 2006

2,520
0.7%
2,375
2,160
0.7%
18
4,788.04
4,505.86

1,580
0.5%
1,520
1,380
0.4%
6
2,455.43
2,162.48

2,350
0.7%
2,342
2,280
0.7%
10
2,564.65
2,564.65

1,065
0.3%
1,106
683
0.2%
6
1,251.40
1,251.40

2,950
0.9%
3,127
3,370
1.1%
6
5,930.96
5,930.96

4,200
1.2%
4,019
3,810
1.2%
5
3,881.58
3,881.58

1,400
0.4%
1,369
1,140
0.4%
7
2,008.74
2,008.74

6,090
1.8%
6,164
4,570
1.4%
10
5,997.36
5,997.36

2,000
0.6%
2,092
1,880
0.6%
2
1,792.54
1,792.54

1,305
0.4%
1,225
1,070
0.3%
11
2,746.89
2,746.89

1,155
0.3%
1,262
979
0.3%
8
2,178.61
2,178.61

April 2, 2007 April 2, 2007 April 17, 2007 June 1, 2007
6,400
1.9%
6,544
6,320
2.0%
7
5,880.71
5,880.71

1,500
0.4%
1,560
1,140
0.4%
9
1,593.60
1,593.60

4,400
1.3%
4,741
3,440
1.1%
7
1,966.56
1,966.56

9,850
2.9%
9,811
10,5003.3%
96,499.63
6,299.81

94.1%
92.9%
92.9%
95.4%
97.9%
93.1%
93.1%
74.0%
86.3%
93.1%
181days
94,962
81,675
13,286
28,628
10,581
6,560
9,014
391
143
1,937
66,334
22,27944,054
66,33430.1%
12,792
3,291
3.47%

88.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
41,02835,064
5,963
17,150
4,533
4,745
4,291
1,549
70
1,960
23,877
12,007
11,8703,351
20,525
41.8%
9,491
1,324
3.23%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
84.2%
75.1%
94.3%
181days
77,07069,5297,541
20,568
7,048
5,333
5,777
261
79
2,069
56,501
12,805
43,69656,501
26.7%
10,6502,725
3.54%

100.0%
100.0%
100.0%
78.1%
100.0%
100.0%
56.2%
78.1%
78.1%
100.0%
181days
23,515
19,683
3,831
10,314
3,053
3,536
2,966
585
39
133
13,201
5,683
7,517
252
12,949
43.9%
7,065
749
3.19%

100.0%
100.0%
100.0%
100.0%
99.7%
83.3%
100.0%
100.0%
100.0%
100.0%
181days
137,080
114,448
22,63245,006
13,172
13,445
15,264
636
200
2,287
92,074
19,957
72,117
1,732
90,34232.8%
26,8904,676
3.41%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
142,563
122,007
20,55533,12911,244
9,064
9,351
2,990
135
343
109,433
28,96480,468109,433
23.2%
18,1305,142
3.61%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
84.3%
100.0%
100.0%
100.0%
181days
48,33638,4709,865
15,077
4,361
3,136
6,916
452
68
143
33,2589,474
23,78433,258
31.2%
6,275
1,665
3.45%

100.0%
92.9%
79.1%
82.8%
100.0%
100.0%
100.0%
100.0%
97.3%
100.0%
181days
117,260
106,685
10,574
39,59012,217
11,300
9,952
771
170
5,177
77,66930,66147,008665
77,00433.8%
22,602
3,978
3.39%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
67,15258,613
8,538
16,000
5,730
2,920
4,708
969
48
1,624
51,151
8,114
43,037778
50,373
23.8%
5,841
2,414
3.60%

100.0%
89.0%
95.7%
86.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
48,71242,012
6,700
19,797
6,073
3,629
5,165
1,772
95
3,062
28,91514,14814,767
93,418△64,503
40.6%
7,110
1,584
3.25%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
96.4%
100.0%
85.6%
181days
50,57343,383
7,190
16,280
4,836
4,071
5,543
828
66
933
34,292
10,552
23,740630
33,662
32.2%
7,941
1,731
3.42%

100.0%
100.0%
100.0%
90.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
187,164
175,355
11,80841,675
11,708
14,662
13,73036
198
1,339
145,489
27,278118,211
145,489
22.3%
29,324
6,788
3.63%

100.0%
100.0%
100.0%
100.0%
88.6%
100.0%
87.6%
87.6%
100.0%
100.0%
181days
45,72640,292
5,434
14,123
4,640
4,278
4,436
328
55
384
31,603
6,810
24,793
1,249
30,353
30.9%
8,558
1,578
3.45%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.3%
181days
102,949
96,6296,319
23,309
6,523
9,174
4,374
1,623
61
1,552
79,64013,01966,62179,64022.6%
18,324
3,726
3.62%

96.9%
96.9%
96.9%
96.9%
95.1%
100.0%
100.0%
95.4%
93.9%
95.4%
181days
302,935
290,780
12,155
67,13020,052
27,374
14,670
3,317
224
1,490
235,805
12,284
223,5213,147
232,658
22.2%
54,748
10,994
3.63%

152,030
12,66993,6507,804

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

75,6806,306

286,720
23,893

Occupancy ratio
Lease Information

As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
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

Income and Retained Earnings Information for the 18th Fiscal Period

Operating periods①Rental and other operating revenues (\ Thousands)
Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)⑦ＮＣＦ （＝③-⑥） (\ Thousands)
Expense ratio （＝②／①）
Ｐroperty tax for the year 2014 or 2013 (\ 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.

-49-

a0411

a0451

a0461

a0471

a0481

a0491

a0501

a0511

a0521

a0551

【Reference】

Earnings Performance for the Individual Properties for the 18th Fiscal Period (November 1, 2013 to April 30, 2014)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0561

a0571

a0591

a0601

a0611

a0621

※As of April 30, 2014
Office Buildings

Property No.

A041

A045

A046

A047

A048

A049

A050

A051

A052

A055

A056

A057

A059

A060

A061

A062

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

Shin-toshin
Maruzen Building

KDX Jimbocho
Building

KDX Gobancho
Building

KDX Iwamotocho Building

KDX Harumi
Building

KDX
Hamamatsucho
Dai-2 Building

Koishikawa TG
Building

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

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（㎡)

2,300
0.7%
2,359
2,300
0.7%
8
2,444.89
2,444.89

3,300
1.0%
3,423
2,120
0.7%
7
1,910.88
1,409.84

7,600
2.3%
7,581
7,560
2.4%
14
6,897.59
6,897.59

5,800
1.7%
5,724
4,010
1.3%
43
8,131.47
8,131.47

3,760
1.1%
3,686
2,990
0.9%
1
5,124.98
5,124.98

2,710
0.8%
2,567
1,570
0.5%
9
2,730.85
2,730.85

2,400
0.7%
2,420
1,510
0.5%
7
2,456.72
2,244.16

2,310
0.7%
2,305
1,800
0.6%
9
2,239.13
2,239.13

1,380
0.4%
1,364
959
0.3%
5
1,330.06
809.19

2,110
0.6%
2,130
1,570
0.5%
5
1,912.28
1,912.28

2,760
0.8%
2,870
1,980
0.6%
3
2,321.80
2,321.80

1,951
0.6%
1,949
1,380
0.4%
7
1,649.47
1,649.47

1,864
0.6%
1,751
1,350
0.4%
10
1,529.91
1,529.91

10,250
3.0%
9,409
8,470
2.7%
8
9,294.00
6,709.44

2,200
0.7%
2,269
1,890
0.6%
8
1,954.23
1,954.23

3,080
0.9%
3,084
3,250
1.0%
5
3,945.54
3,945.54

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
83,69870,252
13,44524,712
7,201
8,000
7,570
382
93
1,465
58,985
9,631
49,35458,98529.5%
16,000
2,911
3.48%

73.8%
63.1%
54.4%
54.4%
65.1%
65.1%
65.1%
65.1%
65.1%
52.4%
181days
39,67834,963
4,715
22,500
4,436
7,137
5,112
400
54
5,359
17,177
5,272
11,9052,510
14,66756.7%
14,2591,160
2.92%

100.0%
100.0%
100.0%
100.0%
91.4%
98.8%
95.9%
85.3%
91.9%
100.0%
181days
243,638
219,023
24,61490,07530,88824,70819,312
4,917
266
9,983
153,562
17,360136,202160
153,40237.0%
49,4158,106
3.33%

100.0%
99.2%
100.0%
91.7%
91.5%
93.0%
89.5%
100.0%
100.0%
100.0%
181days
169,358
142,837
26,52047,97912,983
12,86818,831
1,039
245
2,011
121,378
48,59572,783
1,760
119,61828.3%
24,9375,933
3.50%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
101,567
93,138
8,429
33,10012,754
7,238
11,802317
168
818
68,46731,04237,424
12,62355,84432.6%
14,4883,470
3.42%

100.0%
81.7%
46.7%
86.4%
86.4%
86.4%
86.4%
94.9%
94.9%
100.0%
181days
50,49640,556
9,940
23,985
6,647
5,183
6,141
2,131
97
3,784
26,511
15,836
10,674
2,656
23,854
47.5%
10,264
1,571
3.11%

91.3%
91.3%
91.3%
100.0%
100.0%
54.9%
74.4%
91.3%
100.0%
91.3%
181days
60,974
48,12012,854
19,138
5,816
6,220
5,481
734
85
801
41,835
11,44230,393840
40,99531.4%
12,441
2,098
3.44%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
93.0%
100.0%
100.0%
181days
67,42155,43911,981
18,786
6,993
5,503
5,295
84
89
820
48,635
12,32236,312
48,63527.9%
11,007
2,368
3.51%

60.8%
73.7%
100.0%
100.0%
100.0%
100.0%
86.9%
86.9%
100.0%
100.0%
181days
22,624
20,6202,004
10,376
3,181
2,480
2,069
928
40
1,678
12,247
4,264
7,982
595
11,652
45.9%
4,961
711
3.15%

100.0%
100.0%
100.0%
100.0%
100.0%
81.2%
100.0%
100.0%
100.0%
100.0%
181days
57,59949,3248,275
16,450
6,371
4,590
4,635
139
63
650
41,148
7,919
33,22941,148
28.6%
9,757
2,015
3.50%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
74.8%
94.4%
85.0%
100.0%
181days
67,65360,9496,704
22,201
5,021
6,783
5,505
4,589
73
228
45,451
9,302
36,1481,019
44,43232.8%
13,5692,308
3.41%

100.0%
100.0%
85.7%
100.0%
100.0%
100.0%
100.0%
85.7%
85.7%
85.7%
181days
42,261
38,127
4,133
12,619
4,181
4,114
3,171
1,001
46
103
29,641
10,626
19,01429,641
29.9%
8,230
1,467
3.47%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
75.0%
181days
45,722
42,530
3,192
10,092
3,784
3,019
2,720
289
40
237
35,62913,25922,370780
34,849
22.1%
6,041
1,660
3.63%

72.2%
71.2%
72.2%
70.3%
70.3%
88.9%
98.2%
98.2%
98.2%
100.0%
181days
162,881
141,704
21,176
79,372
29,622
18,11324,495
3,651
312
3,177
83,50877,7455,763
180
83,32848.7%
36,2255,028
3.09%

100.0%
87.5%
100.0%
87.6%
87.6%
100.0%
100.0%
100.0%
87.5%
100.0%
181days
56,55350,944
5,609
18,251
4,429
7,970
4,441
1,092
60
257
38,302
5,049
33,25338,302
32.3%
15,942
1,935
3.42%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
129,653
107,782
21,87043,947
14,134
9,898
15,166
3,566
155
1,027
85,705
14,76370,94185,70533.9%
19,7824,395
3.39%

143,300
11,94180,070
6,672

328,200
27,350204,910
17,075

157,210
13,10096,6408,053

120,300
10,02598,8208,235

51,4804,290

92,5407,711

93,8607,821

61,4805,123

26,0502,170

114,460
9,538

75,2206,268

230,330
19,194

Occupancy ratio
Lease Information

As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
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

Income and Retained Earnings Information for the 18th Fiscal Period

Operating periods①Rental and other operating revenues (\ Thousands)
Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)⑦ＮＣＦ （＝③-⑥） (\ Thousands)
Expense ratio （＝②／①）
Ｐroperty tax for the year 2014 or 2013 (\ 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.

-50-

a0631

a0641

a0661

a0671

a0681

a0711

a0721

a0731

a0741

a0751

【Reference】

Earnings Performance for the Individual Properties for the 18th Fiscal Period (November 1, 2013 to April 30, 2014)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area
A063

A064

A066

Property Name

Gotanda TG
Building

KDX Nihonbashi
216 Building

KDX Shinjuku
Building

A067

A068

KDX Ginza
KDX Nihonbashi
1chome Building Honcho Building

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

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（㎡)

a0831

a0841

a0851

a0861

a0871

a0881

Office Buildi

Property No.

Acquisition Date

a0781

※As of April 30, 2014

A071

A072

A073

A074

KDX Iidabashi
Building

KDX HigashiShinagawa
Building

KDX Hakozaki
Building

KDX ShinNihonbashi
Building

A075

A078

KDX Nihonbashi
KDX Tachikawa
Kabutocho
Ekimae Building
Building

A083

A084

A085

A086

KDX Fuchu
Building

KDX Kasuga
Building

KDX
Nakameguro
Building

KDX Omiya
Building

A087

A088

Itopia Nihonbashi Welship HigashiSA Building
Shinjuku

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

2,620
0.8%
2,767
2,620
0.8%
10
3,161.80
3,161.80

2,010
0.6%
1,928
1,890
0.6%
8
1,615.20
1,615.20

6,800
2.0%
6,897
6,710
2.1%
18
5,836.69
5,160.28

4,300
1.3%
4,265
5,080
1.6%
4
3,573.59
3,573.59

4,000
1.2%
3,988
4,330
1.4%
8
3,998.39
3,998.39

4,670
1.4%
4,638
5,140
1.6%
5
4,429.25
4,429.25

4,590
1.4%
4,853
4,770
1.5%
4
7,110.62
5,456.15

2,710
0.8%
2,831
2,890
0.9%
7
3,992.60
3,137.88

2,300
0.7%
2,219
2,520
0.8%
9
2,658.79
2,658.79

11,2703.4%
11,435
11,7003.7%
77,562.93
7,562.93

1,267
0.4%
1,311
1,390
0.4%
5
1,612.13
1,612.13

6,120
1.8%
6,123
6,700
2.1%
34
10,151.48
9,907.27

2,800
0.8%
2,846
3,390
1.1%
14
4,344.41
4,344.41

1,880
0.6%
1,895
2,260
0.7%
6
2,681.29
2,681.29

2,020
0.6%
2,245
2,430
0.8%
18
3,816.33
3,816.33

2,200
0.7%
2,218
2,280
0.7%
12
3,106.42
2,518.07

1,900
0.6%
1,912
2,160
0.7%
7
4,037.44
4,037.44

100.0%
100.0%
100.0%
100.0%
100.0%
80.0%
80.0%
77.1%
57.8%
181days
94,98585,866
9,118
26,825
7,769
8,498
7,869
632
119
1,936
68,16013,22954,9301,180
66,98028.2%
16,9963,329
3.51%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
75.0%
87.5%
181days
53,034
48,5334,500
15,244
5,000
4,504
3,462
299
53
1,923
37,79011,34626,44337,790
28.7%
9,009
1,853
3.50%

88.4%
88.3%
96.5%
100.0%
97.7%
100.0%
100.0%
93.7%
93.8%
181days
218,050
183,801
34,24878,004
21,357
27,83823,016
1,942
273
3,576
140,046
16,936
123,10963,601
76,44435.8%
55,676
7,308
3.35%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
147,283
139,489
7,793
34,785
9,690
12,437
8,518
488
125
3,525
112,497
11,622
100,875
112,497
23.6%
24,8405,301
3.60%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
126,684
118,020
8,663
34,584
9,080
14,721
7,306
170
125
3,181
92,1009,742
82,357630
91,47027.3%
29,4414,464
3.52%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
164,955
148,303
16,652
41,743
11,291
10,558
17,848956
146
942
123,21215,859107,352
870
122,342
25.3%
21,116
5,880
3.57%

76.7%
100.0%
100.0%
100.0%
89.2%
100.0%
181days
166,704
143,240
23,46453,953
15,46816,122
19,811
1,020
232
1,299
112,751
25,76886,983
5,598
107,153
32.4%
32,203
5,703
3.42%

78.6%
100.0%
100.0%
100.0%
100.0%
83.3%
181days
92,621
83,701
8,919
30,841
7,010
11,914
8,472
2,045
167
1,230
61,78022,087
39,692
2,931
58,84833.3%
23,8293,151
3.40%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
79,07572,296
6,779
23,451
6,734
7,214
7,094
1,518
96
794
55,623
22,13833,48455,62329.7%
14,4282,748
3.48%

100.0%
99.8%
13.4%
100.0%
100.0%
181days
190,897
160,873
30,024
83,19821,762
31,07425,144
3,899
312
1,005
107,698
71,93935,75910,831
96,86743.6%
62,1496,093
3.19%

100.0%
100.0%
100.0%
100.0%
100.0%
181days
63,55454,697
8,857
18,967
5,111
7,015
4,762
1,230
72
774
44,587
3,629
40,9583,874
40,71229.8%
13,757
2,206
3.47%

97.6%
100.0%
97.2%
98.2%
181days
296,887
265,662
31,22588,847
29,054
24,69831,573
1,896
417
1,207
208,040
44,076
163,963
11,031
197,00929.9%
49,167
10,3043.47%

100.0%
97.4%
92.4%
95.7%
181days
123,615
112,598
11,017
34,682
11,432
11,211
8,217
1,880
159
1,781
88,932
18,76670,166
198
88,73428.1%
22,4234,337
3.51%

100.0%
100.0%
100.0%
100.0%
181days
82,092
71,234
10,857
23,529
6,772
5,323
5,979
4,606
92
755
58,5638,680
49,883
3,195
55,36828.7%
10,6462,870
3.50%

100.0%
95.1%
95.1%
181days109,505
94,641
14,86439,4309,313
812,394
16,274140
1,298
70,074
11,38558,688
119,022△48,947
36.0%
13,459
3,664
3.35%

81.1%
100.0%
181days
99,756
88,261
11,494
20,915
10,499
5
7,210
2,429
142
628
78,841
8,010
70,830579
78,261
21.0%
13,5603,644
3.65%

100.0%
100.0%
181days
88,99072,35916,63021,802
9,260
10,105
1,345
141
949
67,1878,434
58,753
4,769
62,41824.5%
21,0433,187
3.58%

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

121,540
10,128442,330
36,860204,470
17,039173,340
14,445

210,300
17,525337,220
28,101

214,340
17,861

Occupancy ratio
Lease Information

As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
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

Income and Retained Earnings Information for the 18th Fiscal Period

Operating periods①Rental and other operating revenues (\ Thousands)
Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)⑦ＮＣＦ （＝③-⑥） (\ Thousands)
Expense ratio （＝②／①）
Ｐroperty tax for the year 2014 or 2013 (\ 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.

-51-

a0891

a0901

a0911

a0921

a0931

a0941

a0121

a0241

a0251

a0421

【Reference】

Earnings Performance for the Individual Properties for the 18th Fiscal Period (November 1, 2013 to April 30, 2014)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0441

a0531

a0541

a0581

a0691

Other Regional Areas

A089

A090

A091

A092

A093

A094

A012

A024

A025

A042

A044

A053

A054

A058

Property Name

KDX
Takanawadai
Building

KDX Ikebukuro
Building

KDX Mita
Building

KDX Akihabara
Building

Aplus Tokyo
Building

KDX MusashiKosugi Building

Portus Center
Building

KDX Minami
Semba Dai-1
Building

KDX Minami
Semba Dai-2
Building

Karasuma
Building

KDX Sendai
Building

KDX HakataMinami Building

KDX Kitahama
Building

KDX Nagoya
Sakae Building

March 20, 2014 September 21, 2005 May 1, 2006 May 1, 2006 June 1, 2007 June 1, 2007 February 1, 2008 February 1, 2008
12,000
5,570
1,610
1,560
5,400
2,100
4,900
2,220
3.6%
1.7%
0.5%
0.5%
1.6%
0.6%
1.5%
0.7%
12,043
4,396
1,486
1,327
5,294
2,095
4,724
2,143
12,500
4,760
983
978
5,030
1,440
3,320
1,530
4.0%
1.5%
0.3%
0.3%
1.6%
0.5%
1.0%
0.5%
4
28
13
18
38
30
51
11
12,978.52
11,533.14
3,106.73
2,697.65
8,744.01
3,958.39
9,917.35
3,995.50
12,442.16
11,127.20
2,834.08
1,904.19
8,744.01
3,636.75
9,496.09
3,708.71

July 1, 2009

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

Price Information

Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)a0791

Office Buildi

Property No.

Acquisition Date

a0701

※As of April 30, 2014

5,250
1.6%
5,292
5,430
1.7%
7
6,952.41
6,655.14

3,900
1.2%
3,892
4,260
1.3%
10
3,110.56
3,110.56

3,180
0.9%
3,186
3,470
1.1%
9
3,416.30
3,021.57

2,600
0.8%
2,610
2,770
0.9%
7
2,288.93
2,288.93

4,350
1.3%
4,571
4,580
1.4%
1
4,487.22
4,487.22

95.7%
163days
148,772
133,165
15,607
31,214
13,63819
15,337
1,376
202
640
117,558
7,392
110,165
11,542106,01621.0%
36,5525,435
3.65%

100.0%
164days
116,193
103,817
12,376
21,5309,904
18
10,145299
92
1,070
94,662
27,037
67,625850
93,812
18.5%
15,022
4,303
3.70%

88.4%
164days
100,529
78,14322,385
18,918
8,643
7
7,582
403
108
2,173
81,61010,464
71,146300
81,31018.8%
19,7553,717
3.70%

100.0%
163days
70,71164,552
6,159
12,466
4,883
36
6,488
472
68
518
58,244
10,88247,362400
57,844
17.6%
6,791
2,631
3.72%

100.0%
111days
103,305
100,708
2,596
10,580
9,483
42
794
117
141
92,725
9,483
83,241
92,725
10.2%
26,239
4,000
3.87%

95.9%
42days
85,86083,6152,244
14,728
7,112
1
2,573
72
4,969
71,131
33,91337,21871,131
17.2%
47,374
3,203
3.73%

96.5%
95.8%
98.6%
89.5%
89.5%
90.1%
95.8%
93.9%
88.5%
88.5%
181days
289,199
239,70749,491130,838
76,02822,816
21,687
6,692
1,923
1,690
158,361
51,548106,812324
158,03645.2%
45,117
9,133
3.16%

91.2%
90.4%
82.9%
77.7%
86.0%
94.7%
95.6%
83.1%
83.1%
84.4%
181days
48,02437,481
10,542
20,678
6,198
6,560
6,319
452
105
1,043
27,345
13,83913,505
1,680
25,66543.1%
12,850
1,538
3.20%

70.6%
82.2%
94.1%
100.0%
90.4%
94.3%
100.0%
100.0%
94.1%
82.1%
181days
43,27432,716
10,557
16,933
5,138
5,311
5,193
460
91
738
26,34011,61914,72026,34039.1%
10,1871,420
3.28%

100.0%
94.3%
98.3%
99.2%
100.0%
99.2%
94.2%
93.2%
93.9%
86.1%
181days
201,179
174,978
26,20064,07919,95920,81318,710
950
288
3,357
137,099
30,070107,029
3,535
133,56431.9%
41,418
6,903
3.43%

91.9%
91.5%
96.8%
93.8%
96.7%
87.4%
99.1%
98.7%
92.8%
96.6%
181days
84,47871,43013,04728,39011,347
6,787
8,364
472
141
1,277
56,087
19,57536,512
2,229
53,85833.6%
13,221
2,868
3.40%

95.8%
93.9%
94.9%
93.3%
86.0%
79.3%
75.4%
80.6%
86.2%
94.4%
181days
169,109145,782
23,32653,997
14,383
10,07322,927
909
299
5,403
115,11136,261
78,8498,063
107,047
31.9%
20,2065,800
3.43%

551,21345,93472,362
6,030

180,220
15,018117,070
9,755

384,169
32,014140,030
11,669527,651
43,970140,130
11,677

122,820
10,235262,560
21,880223,960
18,663

185,690
15,474

A069

A070

A079

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

7,550
2.2%
7,220
4,840
1.5%
15
6,923.12
6,923.12

2,870
0.9%
2,544
2,680
0.8%
13
7,072.23
7,072.23

2,005
0.6%
2,038
2,050
0.6%
20
3,788.51
3,703.78

7,327
2.2%
7,977
7,710
2.4%
19
7,932.43
7,932.43

92.8%
92.8%
92.8%
92.8%
89.2%
84.4%
92.8%
96.4%
96.4%
96.4%
181days
76,65061,675
14,97428,173
7,609
4,609
9,750
343
114
5,745
48,476
14,65633,820160
48,316
36.8%
9,115
2,553
3.33%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
93.7%
90.3%
90.3%
72.3%
181days
186,615
163,875
22,73959,586
17,96820,43815,362
4,863
252
701
127,028
71,73255,296
2,915
124,11331.9%
40,6336,400
3.43%

100.0%
100.0%
93.5%
91.3%
95.6%
95.6%
91.0%
181days
174,599
158,650
15,94886,08915,257
11,64815,46218
263
43,43988,50953,33135,1781,434
87,07549.3%
22,609
5,369
3.08%

97.8%
89.8%
94.4%
100.0%
100.0%
100.0%
100.0%
181days
85,892
70,62815,26434,144
9,252
8,673
13,183
887
148
1,999
51,748
16,67035,077
4,224
47,52439.8%
16,9292,809
3.27%

100.0%
100.0%
100.0%
93.8%
92.8%
181days
317,871
274,490
43,380130,196
31,25635,98328,15632,908368
1,522
187,674
32,997
154,676
183,732
3,941
41.0%
71,244
10,3173.25%

136,270
11,35595,4507,954

87,3407,278

202,790
16,899737,870
61,489

Occupancy ratio
Lease Information

As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
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

Income and Retained Earnings Information for the 18th Fiscal Period

Operating periods①Rental and other operating revenues (\ Thousands)
Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)⑦ＮＣＦ （＝③-⑥） (\ Thousands)
Expense ratio （＝②／①）
Ｐroperty tax for the year 2014 or 2013 (\ 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.

-52-

A058 KDX Nagoya Sakae Building: The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.
A069 KDX Kobayashi Doshomachi Building: The rent for land to the land owner (Kobayashi Pharmaceutical Co., Ltd.) is stipulated according to specific terms under the land lease agreement and the annual renta0801

a0811

a0821

b0191

b0181

c0011

c0021

c0041

d0021

89

【Reference】

Earnings Performance for the Individual Properties for the 18th Fiscal Period (November 1, 2013 to April 30, 2014)：181days

Type

Office Buildings

Location

Other Regional Areas

Property No.

A080

A081

A082

Property Name

Nagoya Nikko
Shoken Building

Sendai Nikko
Building

KDX Higashi
Umeda Building

Acquisition Date

December 26, 2011 December 26, 2011 March 28, 2012

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（㎡)Residential Properties

Central Urban Retail Properties

Other

Tokyo
Metropolitan
Area
B019

Tokyo
Metropolitan
Area
C001

C002

C004

Tokyo
Metropolitan
Area
D002

Frame Jinnanzaka

KDX Yoyogi
Building

Ginza 4chome
Tower

Shinjuku 6chome
Building (Land)

Residence
Charmante
Tsukishima

May 1, 2006

Other
Regional
Areas
B018
Venus
Hibarigaoka※As of April 30, 2014

Total of 89
Properties

December 8, 2005 August 1, 2005 September 30, 2005 August 19, 2013 April 18, 2014

4,158
1.2%
4,235
4,060
1.3%
10
7,993.37
7,635.37

950
0.3%
1,046
1,030
0.3%
5
2,538.40
2,226.50

2,770
0.8%
2,749
3,400
1.1%
11
4,986.24
4,986.24

5,353
1.6%
4,801
4,710
1.5%
1
7,711.14
7,711.14

1,800
0.5%
1,724
1,570
0.5%
113
12,829.64
12,019.45

9,900
2.9%
9,585
9,600
3.0%
11
4,653.40
4,479.62

2,479
0.7%
2,510
1,980
0.6%
11
1,177.00
1,177.00

9,800
2.9%
9,820
11,0003.5%
45,624.23
5,624.23

2,880
0.9%
2,973
2,900
0.9%
1
1,355.13
1,355.13

336,163100.0%
332,883
316,442100.0%
1,064
386,659.01
371,149.66

95.5%
98.0%
98.0%
98.0%
92.7%
181days
196,960
172,857
24,102
77,77426,80326,80919,809
2,819
363
1,170
119,185
13,333
105,851
138
119,047
39.5%
52,828
6,451
3.28%

87.7%
87.7%
75.4%
75.4%
75.4%
181days
57,04848,321
8,726
20,334
6,343
6,710
5,383
1,192
100
603
36,713
6,536
30,176
1,155
35,55835.6%
13,5931,913
3.35%

100.0%
100.0%
100.0%
95.5%
95.5%
181days
130,598
111,559
19,03937,413
9,581
12,40913,921500
194804
93,18535,37457,811
93,185
28.6%
23,1604,567
3.50%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
149,844
132,064
17,78040,826
18,662
10,010
1,875
2,085
275
7,916
109,018
45,881
63,137
380
108,63827.2%
20,021
4,557
3.04%

93.7%
94.2%
96.3%
96.1%
95.0%
99.5%
96.7%
92.4%
96.3%
96.5%
181days
90,03879,304
10,734
41,881
7,957
7,621
2,647
13,602296
9,757
48,15721,451
26,705519
47,63846.5%
14,923
2,820
3.13%

96.3%
100.0%
100.0%
100.0%
100.0%
89.5%
100.0%
100.0%
100.0%
93.6%
181days
269,625
242,172
27,45363,547
18,787
15,722
19,790
6,980
148
2,119
206,078
58,635
147,443510
205,568
23.6%
31,4279,708
3.60%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
94.8%
87.2%
100.0%
181days
69,07560,231
8,844
14,744
4,504
4,278
4,804
36
1,121
54,331
9,230
45,10054,331
21.3%
8,557
2,518
3.65%

100.0%
100.0%
181days
275,484
245,603
29,881
52,552
19,72427,481
2,420
191
2,734
222,932
34,753
188,178300
222,632
19.1%
41,836
10,171
3.69%

100.0%
13days
4,911
4,911
1
1
4,910
4,910
4,910
0.0%
11,596
0.00%

96.0%
95.8%
93.9%
95.5%
95.4%
94.7%
94.6%
93.6%
94.4%
94.7%
173days *Total: Cost-weighted average management period (days)
10,223,818
8,979,406
1,244,412
3,173,788
1,002,782
830,255
906,976
190,703
14,514
228,556
7,050,030
1,802,626
5,247,404
709,226
6,340,803
31.0%
1,904,824
351,601
3.44%

413,140
34,428

181,590
15,132

107,610
8,967

301,520
25,126

339,440
28,28682,3306,860

39,1603,263

161,290
13,440-Occupancy ratio
Lease Information

As of April 30, 2014
As of October 31, 2013
As of April 30, 2013
As of October 31, 2012
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

Income and Retained Earnings Information for the 18th Fiscal Period

Operating periods①Rental and other operating revenues (\ Thousands)
Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)⑦ＮＣＦ （＝③-⑥） (\ Thousands)
Expense ratio （＝②／①）
Ｐroperty tax for the year 2014 or 2013 (\ 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.

15,620,745
1,301,728-53-

(Reference) Borrowings
Borrowings on a financial institution basis as of April 30, 2014 are as follows.
Classification

LenderDrawndown Date

Short-Term Payable
Current Potion of Long-Term Payable

Mitsubishi UFJ Trust and Banking Corporation
Mizuho Bank, Ltd.
Mizuho Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation (Note 3)
The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Note 4)
Aozora Bank, Ltd. (Note 4)
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation
Sub Total
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Mizuho Trust and Banking Co., Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation (Note 5・6)

January 31, 2013
August 19, 2013
August 19, 2013
August 19, 2013
September 13, 2013
September 13, 2013
October 31, 2013
January 10, 2014

Balance at the
Beginning of
Period(\Thousands)

Average
Balance at the Interest
End of Period
Rate(\Thousands) (Note 1)(%)

Last Repayment
Date

Long-Term Payable

3,000,000
3,000,000
6,000,000
1,000,000
3,700,000
2,200,000
1,000,000
300,000
1,000,000
2,700,000
1,000,000
2,500,000
2,000,000
2,000,000
1,000,000
984,000

0.646 January 31, 2014
0.548 November 29, 2013
0.598 November 29, 2013
0.694 February 19, 2014
0.568
March 13, 2014
0.568
March 13, 2014
0.548 October 31, 2014
0.577
July 10, 2014

July 30, 2010
November 12, 2010
November 12, 2010
November 12, 2010
December 1, 2010
December 1, 2010
December 1, 2010
January 31, 2011
September 30, 2011
March 12, 2012
March 12, 2012
March 12, 2012
March 12, 2012
July 13, 2011
July 30, 2010
July 29, 2011
July 29, 2011
July 29, 2011
September 1, 2011
March 22, 2011
September 30, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
January 29, 2010

1,200,000
1,000,000
1,000,000
1,000,000
1,000,000
900,000
3,000,000
9,100,000
3,700,000
1,500,000
800,000
400,000
500,000
200,000
100,000
1,300,000
2,500,000
2,250,000
1,800,000
1,800,000
450,000
1,000,000
3,700,000
2,200,000
1,000,000
300,000
1,000,000
2,700,000
1,000,000
2,500,000
2,000,000
2,000,000
1,000,000
1,008,000

1.660
1.584
1.584
1.584
1.242
1.242
1.242
1.570
1.161
0.925
0.925
0.925
0.925
1.535
1.731
1.021
1.021
1.398
1.149
1.630
1.270
1.239
1.261
1.261
1.261
2.173

January 31, 2014
November 12, 2013
November 12, 2013
November 12, 2013
November 12, 2013
November 12, 2013
November 12, 2013
January 31, 2014
March 31, 2014
March 12, 2014
March 12, 2014
March 12, 2014
March 12, 2014
July 14, 2014
July 31, 2014
July 31, 2014
July 31, 2014
July 31, 2014
August 29, 2014
September 22, 2014
September 30, 2014
October 31, 2014
October 31, 2014
October 31, 2014
October 31, 2014
January 30, 2015

Mitsubishi UFJ Trust and Banking Corporation (Note 6)

January 31, 2012

1,500,000

1,500,000

1.190

January 30, 2015

Sumitomo Mitsui Banking Corporation (Note 6・7)
Development Bank of Japan Inc. (Note 6・7)
Sumitomo Mitsui Trust Bank, Limited (Note 6・7)
Aozora Bank, Ltd. (Note 6・7)
The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Note 6)
Mizuho Bank, Ltd. (Note 6)
Sumitomo Mitsui Banking Corporation (Note 6)
Sumitomo Mitsui Banking Corporation (Note 6・8)

February 18, 2010
February 18, 2010
February 18, 2010
February 18, 2010
August 31, 2011
March 12, 2012
September 30, 2011
April 2, 2010

1,840,000
1,360,000
800,000
400,000
1,500,000
1,000,000
2,500,000
1,650,000

1,782,500
1,317,500
775,000
387,500
1,500,000
1,000,000
2,500,000
1,600,000

2.190
2.190
2.190
2.190
0.969
1.075
1.289
2.220

February 18, 2015
February 18, 2015
February 18, 2015
February 18, 2015
February 17, 2015
March 12, 2015
March 31, 2015
April 2, 2015

Aozora Bank, Ltd. (Note 6)

October 31, 2012

2,500,000

2,500,000

1.008

April 30, 2015

Sub Total
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.
Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Fukuoka, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
Resona Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

May 1, 2006
November 12, 2010
November 12, 2010
November 12, 2010
December 1, 2010
December 1, 2010
December 1, 2010
January 31, 2011
February 28, 2011
February 28, 2011
March 31, 2011
March 31, 2011
April 28, 2011
April 28, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
December 26, 2011
January 10, 2012
March 28, 2012
March 28, 2012
March 28, 2012
March 30, 2012
April 27, 2012
June 29, 2012
September 21, 2012
September 21, 2012
September 21, 2012
October 31, 2012
October 31, 2012
October 31, 2012

53,758,000
5,000,000
1,200,000
800,000
2,300,000
800,000
200,000
700,000
800,000
3,000,000
500,000
2,000,000
1,000,000
1,500,000
1,000,000
2,500,000
2,500,000
2,000,000
2,500,000
2,500,000
2,000,000
2,500,000
500,000
1,400,000
1,000,000
2,000,000
1,000,000
1,500,000
5,000,000
1,000,000
1,000,000
2,500,000
1,500,000
2,500,000

36,246,500
5,000,000
1,200,000
800,000
2,300,000
800,000
200,000
700,000
800,000
3,000,000
500,000
2,000,000
1,000,000
1,500,000
1,000,000
2,500,000
2,500,000
2,000,000
2,500,000
2,500,000
2,000,000
2,500,000
500,000
1,400,000
1,000,000
2,000,000
1,000,000
1,500,000
5,000,000
1,000,000
1,000,000
2,500,000
1,500,000
2,500,000

2.731
1.789
1.789
2.023
1.423
1.423
2.206
1.939
1.912
1.952
1.905
1.272
1.859
1.886
1.338
1.315
1.338
1.439
1.415
1.439
1.269
1.364
1.770
1.770
1.211
1.271
1.286
1.158
1.158
1.158
1.061
1.045
1.096

April 30, 2016
November 12, 2015
November 12, 2015
November 12, 2017
November 12, 2015
November 12, 2015
November 12, 2017
January 29, 2016
August 31, 2015
January 29, 2016
January 29, 2016
March 31, 2016
October 31, 2015
January 29, 2016
October 31, 2015
October 31, 2015
October 31, 2015
October 31, 2016
October 31, 2016
October 31, 2016
January 29, 2016
March 28, 2017
March 28, 2019
March 28, 2019
September 30, 2015
October 30, 2015
June 30, 2017
September 21, 2017
September 21, 2017
September 21, 2017
October 31, 2016
October 31, 2016
October 31, 2017

-54-

Payment
MethodUsage

Remarks

Full on
Unsecured/(Note 2)maturity
Unguaranteed

Full onmaturity(Note 2)

Unsecured/
Unguaranteed(Note 5)Full onmaturity(Note 7)Full onmaturity(Note 8)Full onmaturity

Full on
Unsecured/(Note 2)maturity
UnguaranteedClassification

LenderDrawndown Date

Balance at the
Beginning of
Period(\Thousands)

Average
Balance at the Interest
End of Period
Rate(\Thousands) (Note 1)(%)
2,500,000
1.253
500,000
0.983
2,000,000
1.013
500,000
1.086
500,000
1.086
1,000,000
0.974
1,500,000
0.840
1,000,000
1.036
1,000,000
1.036
1,000,000
0.721
1,500,000
0.621
500,000
0.721
1,000,000
0.950
1,000,000
0.950
500,000
0.950
500,000
0.969
500,000
0.950
700,000
1.080
500,000
1.080
300,000
1.080
1,500,000
1.420
1,800,000
1.059
900,000
1.059
500,000
0.887
1,000,000
0.820
2,000,000
1.074
500,000
1.074
200,000
0.844
1,000,000
1.122
900,000
1.122
1,300,000
1.205
1,200,000
0.667
3,700,000
0.932
2,300,000
1.130
2,250,000
0.751
450,000
0.781
1,800,000
0.916
1,800,000
1.358
3,000,000
0.912
4,000,000
1.013
3,000,000
1.199
2,000,000
1.349
2,500,000
0.762
2,900,000
0.954
119,200,000
161,446,500

Last Repayment
Date

Payment
MethodUsage

Remarks

Long-Term Payable

Aozora Bank, Ltd.
October 31, 2012
2,500,000
October 31, 2018
Resona Bank, Ltd.
December 10, 2012
500,000
December 12, 2016
Development Bank of Japan Inc.
December 28, 2012
2,000,000
December 28, 2016
The Bank of Fukuoka, Ltd.
December 28, 2012
500,000
December 28, 2017
Mizuho Trust and Banking Co., Ltd.
December 28, 2012
500,000
December 29, 2017
Sumitomo Mitsui Trust Bank, Limited
January 15, 2013
1,000,000
January 15, 2017
Aozora Bank, Ltd.
February 18, 2013
1,500,000
February 18, 2016
Resona Bank, Ltd.
March 26, 2013
1,000,000
March 26, 2018
Sumitomo Mitsui Banking Corporation
March 26, 2013
1,000,000
March 26, 2018
Mitsubishi UFJ Trust and Banking Corporation
April 30, 2013
1,000,000
April 30, 2016
Mitsubishi UFJ Trust and Banking Corporation
July 31, 2013
1,500,000
July 29, 2016
Resona Bank, Ltd.
July 31, 2013
500,000
July 31, 2018
Sumitomo Mitsui Banking Corporation
August 19, 2013
1,000,000
August 19, 2018
Aozora Bank, Ltd.
August 19, 2013
1,000,000
August 19, 2018
Mizuho Trust and Banking Co., Ltd.
August 19, 2013
500,000
August 19, 2018
Hiroshima Bank, Ltd.
August 19, 2013
500,000
August 19, 2018
The Bank of Fukuoka, Ltd.
August 19, 2013
500,000
August 19, 2018
The Nishi-Nippon City Bank, Ltd.
August 30, 2013
700,000
August 31, 2018
The 77 Bank, Ltd.
August 30, 2013
500,000
August 31, 2018
The Higashi-Nippon Bank, Limited
August 30, 2013
300,000
August 31, 2018
Development Bank of Japan Inc.
August 30, 2013
1,500,000
August 31, 2020
Full on
Unsecured/
Aozora Bank, Ltd.
September 30, 2013
1,800,000
September 30, 2019
(Note 2)The Bank of Tokyo-Mitsubishi UFJ, Ltd.
September 30, 2013
Unguaranteed
900,000
September 30, 2019 maturity
Resona Bank, Ltd.
October 31, 2013
500,000
October 31, 2018
Sumitomo Mitsui Trust Bank, Limited
November 12, 2013
November 12, 2018
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
November 12, 2013
November 12, 2020
Aozora Bank, Ltd.
November 12, 2013
November 12, 2020
Mizuho Bank, Ltd.
November 29, 2013
November 30, 2018
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
November 29, 2013
November 30, 2020
Aozora Bank, Ltd.
November 29, 2013
November 30, 2020
Sumitomo Mitsui Banking Corporation
January 10, 2014
January 31, 2021
Mitsubishi UFJ Trust and Banking Corporation
January 31, 2014
January 31, 2017
Sumitomo Mitsui Trust Bank, Limited
January 31, 2014
January 31, 2020
Sumitomo Mitsui Banking Corporation
January 31, 2014
January 31, 2021
Aozora Bank, Ltd.
March 12, 2014
March 12, 2018
Sumitomo Mitsui Trust Bank, Limited
March 12, 20142019/3/31
Sumitomo Mitsui Banking Corporation
March 12, 2014
March 12, 2020
Development Bank of Japan Inc.
March 12, 2014
March 12, 2023
Sumitomo Mitsui Banking Corporation
March 20, 2014
March 12, 2020
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
March 20, 2014
September 20, 2021
Development Bank of Japan Inc.
March 20, 2014
March 20, 2022
Development Bank of Japan Inc.
March 20, 2014
March 12, 2023
Sumitomo Mitsui Trust Bank, Limited
March 31, 2014
March 31, 2019
Sumitomo Mitsui Banking Corporation
April 22, 2014
October 31, 2020
Sub Total
81,400,000
Total
144,258,000
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. Early repayment was made on January 13, 2014.
4. Early repayment was made on November 29, 2013.
5. 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
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, 2014: repayment of 137,500 thousand yen every 6 months, and February 18, 2015: repayment of 4,125,000 thousand yen
8. 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-55-