KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED April 30, 2018 (REIT)(November 1, 2017 to April 30, 2018)
June 15, 2018
Kenedix Office Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
Representative:

Jiro Takeda, Executive Director

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

Masahiko Tajima, President & CEO

Inquiries:

Hiroaki Momoi, Head of Planning Division, Office REIT Department
TEL +81-3-5157-6010

Planned submission of semiannual securities report: July 30, 2018

Planned start of distribution payments: July 19, 2018

Preparing presentation material:

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

1. PERFORMANCE FOR THE FISCAL PERIOD ENDED April 30, 2018 (November 1, 2017 to April 30, 2018)(1) Business Results(Amounts are rounded down to the nearest one million yen.)(% indications are increase-decrease rate of period-over-period.)
Operating Revenues

Operating Income

Ordinary Income

Net Income

For the six months ended

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

April 30, 201814,823

6.6

6,848

21.1

5,829

27.0

5,828

27.0

October 31, 2017

13,901

(7.6)

5,657

(4.1)

4,590

(3.4)

4,588

(3.4)

Net Income per unit

Return on Unitholders’ Equity

Ordinary Income toOperating Revenues

Ordinary Income to Total Assets

For the six months ended

Yen

%

%

%

April 30, 2018

14,396

2.7

1.4

39.3

October 31, 201711,334

2.2

1.1

33.0

(2) Distribution(Total distributions are rounded down to the nearest one million yen.)
Distributions per Unit
(Excluding Excess of
Earnings)

Total Distributions(Excluding Excess of
Earnings)

Distributions in
Excess of Earnings
per Unit

For the six months ended

Yen

Millions of Yen

Yen

Millions of Yen%%

April 30, 2018

12,960

5,247

0

0

90.0

2.5

October 31, 201712,500

5,061

0

0

110.3

2.4

Total Distributions in
Excess of Earnings

Distribution Ratio to
Unitholders’ Equity

Payout Ratio

Note 1: Distributions per unit for the fiscal period ended April 30, 2018 are calculated by dividing the amount remaining after deducting the provision of reserve for reduction
entry (581 million yen) from unappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distributions
per unit and net income per unit is due to this calculation.
Note 2: Distributions per unit for the fiscal period ended October 31, 2017 are calculated by dividing the amount of the reversal of reserve for reduction entry (471 million yen)added unappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distributions per unit and net income
per unit is due to this calculation.

(3) Financial Position(Total assets and net assets are rounded down to the nearest one million yen.)
Total Assets

Net Assets

Net Assets to Total Assets

Net Assets per Unit

For the six months ended

Millions of Yen

Millions of Yen%

Yen

April 30, 2018422,993

213,64250.5

527,661

October 31, 2017414,933

212,85151.3

525,708(4) Cash Flow Situations(Amounts are rounded down to the nearest one million yen.)
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash Equivalents
at Period End

For the six months ended

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

April 30, 2018

17,311(25,388)

1,188

21,746

October 31, 2017

11,985(6,246)

227

28,635This notice is an English-language translation of the original Japanese announcement on our website released on June 15, 2018. However, no assurance or warranties are given with respect tothe accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

2. FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING October 31, 2018 (May 1, 2018 to October 31, 2018) and
April 30, 2019 (November 1, 2018 to April 30, 2019)(% indications are increase-decrease rate of period-over-period.)
Operating Revenues(Millions of Yen)

Operating Income(Millions of Yen)%

Ordinary Income(Millions of Yen)%Distributions per
Unit (Excluding
Excess of Earnings)

Distributions in
Excess of Earnings
per Unit

%

Yen

Yen

October 31, 201815,334

3.5

7,054

3.0

5,998

2.9

5,997

2.9

13,2000

April 30, 201915,086

(1.6)

7,016

(0.5)

5,957

(0.7)

5,956

(0.7)

13,2000

For the six months ending%

Net Income(Millions of Yen)

(Reference) Estimated net income per unit for the fiscal period ending October 31, 2018: 14,113 yen
Forecasted number of investment units issued and outstanding as of October 31, 2018: 428,510 units
Forecasted average number of investment units during the fiscal period ending October 31, 2018: 424,939 units
Estimated net income per unit for the fiscal period ending April 30, 2019: 13,906 yen
Forecasted number of investment units issued and outstanding as of April 30, 2019: 428,510 units
Forecasted average number of investment units during the fiscal period ending April 30, 2019: 428,510 units
Note 1: Distributions per unit for the fiscal period ending October 31, 2018 are calculated by dividing the amount remaining after deducting provision of reserve for reduction
entry (340 million yen) from net income by the number of investment units issued and outstanding.
Note 2: Distributions per unit for the fiscal period ending April 30, 2019 are calculated by dividing the amount remaining after deducting provision of reserve for reduction
entry (299 million yen) from net income by the number of investment units issued and outstanding.

*OTHER(1) Changes in Accounting Policies・Changes in Accounting Estimate・Retrospective Restatement(a) Changes concerning accounting policy accompanying amendments to accounting standards: No(b) Changes other than (a): No(c) Changes in accounting estimate: No(d) Retrospective restatement: No(2) Number of Investment Units Issued and Outstanding (including treasury units)(a) Number of investment units issued and outstanding at period end (including treasury units)
As of April 30, 2018: 404,885 units
As of October 31, 2017: 404,885 units(b) Number of treasury investment units at period end
As of April 30, 2018: 0 units
As of October 31, 2017: 0 units
Note: Please refer to page 30, “Notes on the Information per Unit” for the calculation of net income per unit.

*Details concerning actual status of auditing procedures
As of the disclosure of this financial report, auditing procedures for financial statements based on the Financial Instruments and Exchange
Act are underway.
*Explanation on the appropriate use of the forecast of results and other matters of special consideration
Readers are advised that actual operating revenues, operating income, ordinary income, net income and distributions per unit may differ
significantly from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of the forecast
distributions per unit. Please refer to page 13, “Preconditions and Assumptions for the Twenty-seventh Fiscal Period Ending October 31,
2018 and for the Twenty-eighth Fiscal Period Ending April 30, 2019” for the preconditions of forecast for the twenty-seventh fiscal period
ending October 31, 2018 and for the twenty-eighth fiscal period ending April 30, 2019.

This notice is an English-language translation of the original Japanese announcement on our website released on June 15, 2018. However, no assurance or warranties are given with respect tothe accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Index
1．Basic Structure — Related Companies of the Investment Corporation …………………………………………… P02
2．Management Policy and Operating Conditions …………………………………………………………………… P03(1) Management Policy …………………………………………………………………………………………… P03(2) Operating Conditions …………………………………………………………………………………………… P03(3) Risk Factors …………………………………………………………………………………………………… P11(4) Outlook ………………………………………………………………………………………………………… P12
3．Financial Statements ………………………………………………………………………………………………… P15(1) Balance Sheets ………………………………………………………………………………………………… P15(2) Statements of Income …………………………………………………………………………………………… P17(3) Statements of Unitholders’ Equity ……………………………………………………………………………… P18(4) Basis for Calculating Cash Distribution ………………………………………………………………………… P19(5) Statements of Cash Flows ……………………………………………………………………………………… P20(6) Notes on the Going Concern …………………………………………………………………………………… P21(7) Important Accounting Standards ………………………………………………………………………………… P21(8) Notes on the Financial Statements ……………………………………………………………………………… P23(9) Changes in the Number of Investment Units Issued and Outstanding …………………………………………… P31
4．Resignation/Appointment of the Director ……………………………………………………………………………P32(1) Resignation/Appointment of the Director of the Investment Corporation ……………………………………… P32(2) Resignation/Appointment of the Director of the Asset Management Company ………………………………… P32
5．Reference Information ……………………………………………………………………………………………… P33(1) Component of Assets …………………………………………………………………………………………… P33(2) Details of Investment Assets …………………………………………………………………………………… P33(Reference Information) Status of Income for Individual Properties …………………………………………………… P45(Reference Information) Status of Borrowings ………………………………………………………………………… P53-1-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

1. Basic Structure — Related Companies of the Investment Corporation
The “Structure of Investment Corporation” as of the date of this document is as follows.
Asset Custodian /Administrative Agent

Administrative Agent for
Investment Corporation Bond

Investment Corporation(Operating of the Administrative Instruments)④
Mizuho Trust & Banking Co., Ltd.

⑦
Kenedix Office Investment Corporation

General Meeting of Unitholders

Administrative Agent

Property Management Company(Accounting Business)

Mitsubishi UFJ Trust and Banking
Corporation

Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.

⑤

Board of Directors
Executive Director :Supervisory :Supervisory :Supervisory :Administrator for Unitholder’s Register
Administrator for Special Account②

Kenedix Property Management, Inc.
(Note 1)Jiro Takeda
Shiro Toba
Yoshihiro Morishima
Takahiro Seki③⑧⑥
Sumitomo Mitsui Trust Bank, Limited

Accounting Auditor
Ernst & Young ShinNihon LLC①

Asset Management Company

Support-Line Company

Kenedix Real Estate Fund Management, Inc.
③⑧

Kenedix, Inc. (Note 2)① Asset Management Agreement② Property Management Agreement③ Support-Line Memorandum of Understanding④ Asset Custodian Agreement / Administrative Agency Agreement (Operating of the Administrative Instruments)⑤ Administrative Agency Agreement (Accounting Business)⑥ Unitholder Register Administrative Agency Agreement / Special Account Administrative Agency Agreement⑦ Fiscal Agency Agreement⑧ Trademark License Agreement

Note 1: Kenedix Property Management, Inc. is not the property management company for some of the properties.
Note 2: 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 the year 1993, including
amendments thereafter)) is Kenedix, Inc. Kenedix, Inc. is the parent company (referring to the parent company stipulated in Article 8, paragraph 3 ofOrdinance on Terminology, Forms, and Preparation Methods of Financial Statements, etc. (Ordinance of the Ministry of Finance No.59 of the year 1963,
including amendments thereafter)) of the Asset Management Company
Note 3: As of April 16, 2018, MUFG Bank, Ltd succeeded the position of administrative agent for the Investment Corporation’s Eighth Series Unsecured
Investment Corporation Bonds and the Ninth Series Unsecured Investment Corporation Bonds from Mitsubishi UFJ Trust and Banking
Corporation due to the absorption-type demerger.

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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 registration statement (submitted on May 14, 2018), and accordingly this information has been omitted from this document.
(2) Operating Conditions① Operating Conditions for the fiscal period under review
A. The Investment Corporation
The Investment Corporation was established on May 6, 2005 in accordance with the Act on Investment Trusts and Investment
Corporations (Act No. 198 of the year 1951, including amendments thereafter) (“Investment Trust Act”). On July 21, 2005, theInvestment 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 seven global offerings. As a result, as of the end of the fiscal period
under review, the number of investment units issued and outstanding totaled 404,885 units.
The Investment Corporation entrusts the Asset Management Company with its asset management and strives to maximize unitholder
profits by securing stable earnings and sustainable growth of investment assets. To this end, the Investment Corporation adopts thebasic policy of conducting flexible and dynamic investment stance that seeks to respond to its environment and market trends, andendeavors 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, 2018), the real GDP growth of the Japanese economy fromJanuary to March 2018 (the Second Preliminary Estimates) showed an annual 0.6% decrease, a negative growth not seen for 9
quarters, or 2 years 3 months. The reasons for this include the temporary bearish tendency of capital investment that had seen acontinued mild recovery, and the leveling of personal consumption that was steadily increasing. Although the real GDP growth rate
may indicate a cessation in the recovery of the Japanese economy, the growth of the global market and the bullish trend of domestic
demand suggests otherwise.
In terms of the office leasing market, demand for relocations for expanded floor area and better location choice continued to bestrong in the five central wards of Tokyo, leading to a continuous decline in the average vacancy rate and rise in the rent level. The
average vacancy rate in Tokyo’s five central wards at the end of April 2018 announced by Miki Shoji Co., Ltd. was 2.65%: down
0.74 point year-on-year and down 0.37 point compared with the end of the previous fiscal period (ended October 31, 2017). In
addition, the average rent in Tokyo’s five central wards (including newly-built office buildings) has also been increasing for 52
consecutive months since January 2014, reaching 19,896 yen per tsubo for the first time since July 2009. The average vacancy rateof other major cities across Japan also continued to show a decrease in average vacancy rate and an increase in rent levels.
In the office building transaction market, domestic investors such as listed J-REITs, private REITs and real estate companies, andoverseas investors continued to show a strong appetite for property acquisitions. Due partially to the ongoing competitive acquisition
environment for prime properties, the cap rates continuously remain at low levels and transaction prices continue to remain high.
(b) Management Performance
As of the end of the previous fiscal period (fiscal period ended October 31, 2017), the Investment Corporation owned 98 properties(with a total acquisition price of 392,968 million yen) and equity interest in a Japanese silent partnership (tokumei kumiai) (“TK”)(acquisition price of 1,107 million yen). During the fiscal period under review (fiscal period ended April 30, 2018), the Investment
Corporation acquired two office buildings (Mitsubishijuko Yokohama Building: acquisition price of 14,720 million yen, JN
Building: acquisition price of 9,500 million yen) and sold one residential property (Residence Charmante Tsukishima: acquisition
price of 5,353 million yen), two office buildings (KDX Ikejiri-Oohashi Building: acquisition price of 2,400 million yen, KDX ShinYokohama 214 Building: acquisition price of 2,200 million yen).
As a result, the number of properties owned as of April 30, 2018 (excluding the TK interest, same applies below.) amounts to 97(with a total acquisition price of 407,235 million yen). Looking at the portfolio distribution by property types, 96.9% was comprisedof office buildings, 2.4% of central urban retail properties and 0.7% of others property on an acquisition price basis.
The occupancy rate as of the end of the fiscal period under review(ended April 30, 2018) was 99.0% and continuously maintained ahigh occupancy rate.

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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Operation and Management of Existing Properties
The Investment Corporation entrusts property management services for its entire portfolio as of the end of the fiscal period underreview (fiscal period ended April 30, 2018) (excluding ARK Mori Building and Shinjuku 6chome Building (Land)) to Kenedix
Property Management, Inc. By doing so, the Investment Corporation has strived to unify policies, specifications, procedures, pointsof contact, etc. for the provision of swift and quality services in the operation and management of properties.
In terms of leasing, in light of the trends of the economy and real estate market, the Investment Corporation proactively attracted new
tenants with its close relationships with brokers and absorbed demands to expand floor space by utilizing the close relationships withexisting tenatns. Moreover, in order to maintain and raise the competitiveness of office buildings, repair of common areas, upgradingof air conditioning systems, renewal of elevators, etc. were implemented according to plan.
Consequently, as of the end of the fiscal period under review (fiscal period ended April 30, 2018), the occupancy rate of theInvestment Corporation owned office buildings in the Tokyo Metropolitan Area stood at 99.2%, an increase of 0.2 point comparedwith the end of the previous fiscal period (fiscal period ended October 31, 2017), and increased by 0.1 point to 99.1% for theInvestment Corporation’s office buildings overall, continuously maintaining a high occupancy rate that exceeds the level of the endof the previous fiscal period (fiscal period ended October 31, 2017).
The Investment Corporation proactively negotiated with tenants that pay rents lower than market rent level among those reaching
rent revision periods for upward rent revisions, and the number of upward rent revisions increased in two consecutive periods.
Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for the Investment Corporation’s office buildings was 1,123 (Note 1) (Note 2) as of the end of the fiscal
period under review (fiscal period ended April 30, 2018), diversifying tenant’s stratum further. Furthermore, floor area leased to the
top 10 office end-tenants as a proportion of total leased floor area of the entire portfolio was 10.5%. In addition, tenants of officebuildings are in various sectors. As a result, we believe the impact by a certain end-tenant vacating the property or sluggish
performance in certain sectors would have a relatively limited effect and will be able to maintain stable revenue.
Note 1: When a tenant is leasing more than one property, it is counted as one tenant and the number of tenants is indicated accordingly.
Note 2: The number of end-tenants for the entire portfolio is 1,135 as of the end of the fiscal period (fiscal period ended April 30, 2018).

C. Capital Financing(a) Status of Borrowings
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying maturity dates for its interest-bearing debt.
During the fiscal period under review (fiscal period ended April 30, 2018), the Investment Corporation undertook new borrowings of
12,000 million yen and used 750 million yen of cash on hand for the repayment of 12,750 million yen that matured during the fiscal
period, and newly borrowed 7,000 million yen at property acquisitions. As a result, the balance of interest-bearing debt as of April 30,
2018 is 185,850 million yen, comprised of 178,050 million yen in borrowings (6,000 million yen in short-term borrowings (Note 1)
and 172,050 million yen in long-term borrowings (Note 1)) and 7,800 million yen in investment corporation bonds, and the interestbearing debt ratio (Note 2) is 43.9%.
Furthermore, as of the end of fiscal period under review (fiscal period ended April 30, 2018), interest rates for 115,300 million yen out
of 116,800 million yen of long-term borrowings with floating interest rates, have been practically fixed by utilizing interest-rate swap
agreements, etc. in order to hedge risk of rise in the interest rate. In addition, the long-term debt ratio (Note 3) was 96.8% and the longterm fixed interest debt ratio (Note 4) was 96.0%.
In addition, the Investment Corporation lengthened the average remaining term of its interest-bearing debt (Note 5), the weighted
average based on the balance of interest-bearing debt at the end of each fiscal period, from 5.0 years at the end of the twenty-fifth fiscal
period (fiscal period ended October 31, 2017) to 5.2 years at the end of the fiscal period under review (fiscal period ended April 30,2018). Furthermore, the average interest rate (Note 5) was reduced from 1.10% to 1.07% during the same period, demonstrating a
steady reduction of financial costs.
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date.
However, the borrowings whose period until repayment date have surpassed one year because the repayment date one year from thedrawdown date is not a business day and for which the repayment date has been moved to the following business day are included in
short-term borrowings. Long-term borrowings refer to borrowings with a period of more than one year from the drawdown date to therepayment date. The same classification criteria apply to other borrowings listed below.
Note 2: Interest-bearing debt ratio = Balance of Interest-bearing debt at the end of fiscal period / Total assets at the end of fiscal period ×100
Note 3: Long-term debt ratio= (Balance of long-term borrowings + Balance of investment corporation bonds) / (Total borrowings + Balance ofinvestment corporation bonds) ×100
Long-term debt ratio is rounded to the nearest first decimal place.
Note 4: Long-term fixed interest debt ratio = (Balance of long-term fixed interest rate borrowings + Balance of investment corporation bonds) /(Total borrowings + Balance of investment corporation bonds) ×100
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KENEDIX OFFICE INVESTMENT CORPORATION (8972)

The balance of long-term fixed interest rate borrowings includes long-term borrowings with floating interest rates effectively fixed byutilizing interest-rate swap agreements and excludes long-term borrowings hedged by interest-rate cap agreements. Long-term fixedinterest debt ratio is rounded to the nearest first decimal place.
Note 5: Average remaining terms and average interest rates are the weighted average of the period-end remaining terms and interest rates including
upfront fees based on the balance of interest-bearing debt. Average remaining terms are rounded to the nearest first decimal place andaverage interest rates are rounded to the nearest second decimal place respectively.

The balances of borrowings according to financial institutions as of October 31, 2017 and April 30, 2018 are as follows:
End of Twenty-fifth
End of Twenty-sixth
Ratio as of the End
Fiscal Period
Fiscal Periodof Twenty-fifth Fiscal
Lender(as of October 31, 2017) (as of April 30, 2018)
Period(Millions of Yen)
(Millions of Yen)(%) (Note 6)
Sumitomo Mitsui Banking Corporation
44,800.0
46,200.0
25.9
MUFG Bank, Ltd. (Note 7)
22,800.034,800.0
19.5
Development Bank of Japan Inc.
29,550.030,550.0
17.2
Sumitomo Mitsui Trust Bank, Limited
19,100.0
19,900.0
11.2
Aozora Bank, Ltd.
13,100.0
12,350.0
6.9Mizuho Bank, Ltd.
11,700.0
11,700.0
6.6
Resona Bank, Limited
10,250.0
11,250.0
6.3
Mizuho Trust & Banking Co., Ltd.
2,800.03,800.0
2.1
The Bank of Fukuoka, Ltd.
2,500.02,500.0
1.4
The Nishi-Nippon City Bank, Ltd.
1,700.0
1,700.0
1.0
The Hiroshima Bank, Ltd
1,000.0
1,000.0
0.6
The 77 Bank, Ltd
1,000.0
1,000.0
0.6
The Higashi-Nippon Bank, Limited
800.0
800.0
0.4
The Mie Bank, Ltd
500.0
500.0
0.3
Mitsubishi UFJ Trust and Banking Corporation
10,200.0(Note 8)
Total
171,800.0
178,050.0
100.0Note 6: Percentages as of the end of the fiscal period under review are rounded to the first decimal place.
Note 7: MUFG Bank, Ltd. has changed its company name from “The Bank of Tokyo Mitsubishi UFJ, Ltd.” on April 1, 2018.
Note 8: Due to the absorption–type demerger of Mitsubishi UFJ Trust and Banking Corporation (the splitting company) and MUFG Bank,
Ltd. (the successor company) on April 16, 2018, the loan debt of Mitsubishi UFJ Trust and Banking Corporation has beensucceeded by MUFG Bank, Ltd.

(b) Status of Credit Rating
The status of the credit ratings as of the end of fiscal period under review (April 30, 2018) is as follows:
Credit Rating Agency
Details of the Ratings
Japan Credit Rating Agency, Ltd. (JCR)

Long-Term Issuer Rating

AA- (Outlook: Stable)

Ratings on Bonds
Preliminary Rating of Shelf Registration

AA-(c) Status of Shelf Registration
The Investment Corporation filed a shelf registration statement for investment corporation bonds (excluding short-term
investment corporation bonds) on January 30, 2017. Details are as follows.
Planned Issue Amount
100,000 million yen
Planned Issuance Period
February 7, 2017 to February 6, 2019
Acquisition funds for specified assets that are meant in Article 2-1 of Investment Trust Act,
repayment of borrowings, repayment of investment corporation bonds (including shortUse of Funds
term investment corporation bonds), refund of lease and guarantee deposits, funds to pay
for repairs and maintenance, working capital, etc.
The Eighth Series Unsecured Investment Corporation Bonds of 1,000 million yen and the Ninth Series Unsecured Investment Corporation
Bonds of 2,000 million yen were issued based on the above shelf registration statement on July 19, 2017.

D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of 14,823
million yen, operating income of 6,848 million yen, ordinary income of 5,829 million yen and net income of 5,828 million yen for
the fiscal period under review (fiscal period ended April 30, 2018).
Concerning the cash distributions for the fiscal period under review, special taxation measures for investment corporations (Article-5-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of the year 1957, including amendments thereafter; “theSpecial Taxation Measures Act”)) are applied based on the cash distribution policies stipulated in the Articles of Incorporation. In
addition, the Investment Corporation has decided to use a portion of its unappropriated retained earnings booked as a reserve for
reduction entry under internal reserve based on application of the “Special Provisions for Taxation in the Event of Advance
Acquisition of Land, etc. in 2009 and 2010” (Article 66-2 of the Special Taxation Measures Act). Based on this policy, the entire
amount after deducting 581 million yen that applies within both Article 67-15 and Article 66-2 of the Special Taxation Measures
Act as a provision of reserve for reduction entry from unappropriated retained earnings was distributed. Therefore, the distributions
per unit resulted in 12,960 yen.
② Outlook for next fiscal period
A. Investment Environment
Although future Japanese economy is expected to see a slowdown in growth, the growth of the global market and the bullish trendof domestic demand suggest moderate recovery. On the other hand, careful attention should be paid to uncertainties concerning
overseas economies and politics including the rise of policy interest rate in U.S. and trends in the U.S. administration’s policy
management and such. Even in Japan, it will be necessary to pay close attention to various events such as the impact of the interest
rate hike in the U.S. on domestic interest rates, the trend of the “quantitative and qualitative monetary easing involving control overlong-and short-term interest rates” policy that accompanies negative interest rates, and concerns over geopolitical risks.
Concerning the office leasing market, the average vacancy rate in Tokyo’s five central wards at the end of April 30, 2018 announced
by Miki Shoji Co., Ltd. was 2.65%, and therefore the vacancy rate shows a downward trend and the demand remains steady. Alongwith the decline in the vacancy rate, the average rent in Tokyo’s five central wards has been on a rising trend.
In the office building transaction market, although some point out the overheated state, the generally intense acquisition market isforecasted to continue with investors such as listed J-REITs, private REITs, domestic real estate companies and foreign investors
bearing a strong appetite for acquisitions, backed by the favorable financing environment owing to the Bank of Japan’s monetaryeasing measures.
On the other hand, the outstanding bank loans for the real estate industry have reached a record high, and therefore it should benecessary to pay careful attention to changes in banks’ policies on loans. Furthermore, careful attention should also be paid to theperplexing state of the J-REIT market with positive trends such as continuing on-balance buying of J-REIT investment units byoverseas investors, but also negative trends such as the market price struggling to rise due to the deterioration in the supply anddemand balance with the frequent public offerings since the beginning of 2018.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting flexible and dynamic investment stance that seeks to respond toits environment and market trends, and endeavors to ensure a timely response to opportunities. Based on this policy, the Investment
Corporation creates a property investment strategy, management strategy for existing properties, and financial strategy as set forth
below and implements them in a flexible and dynamic manner.
(a) Management Policy
On December 1, 2017, the Asset Management Company has decided to change the definition of classification by use in “Office
Buildings”, “Central Urban Retail Properties” and “Others” that the Investment Corporation is investing in, and exclude “Residential
Properties” from investment targets and eliminate the provisions on investment in “Residential Properties” in the Company
Regulations (Management Guidelines of Office REIT Department). The definition of classification by use in “Office Buildings”,“Central Urban Retail Properties” and “Others” shall be changed as follows.
Office Buildings

Main buildings as components of properties, with floor area whose uses under the Building Standards Act include office, orassets underlying themCentral Urban

Retail properties with high tenant substitutability located in highly bustling districts (5 Central Wards of Tokyo (Chiyoda-ku,

Retail Properties

Chuo-ku, Minato-ku, Shinjuku-ku and Shibuya-ku in Tokyo 23 wards) or central parts of government-designated cities; thesame shall apply hereinafter.) that do not fall under the category of Office Buildings, or assets underlying themLand with third-party leasehold (limited proprietary right of land) or buildings that have floor area whose uses under the Building

OthersStandards Act are not subject to investment in accordance with the Investment Corporation’s investment policy and that do not
fall under the category of Office Buildings or Central Urban Retail Properties, or assets underlying themNote: The Investment Corporation shall not invest in residential properties, logistics and warehouse facilities, amusement parks, medical,
nursing and health care-related facilities and golf courses. However, if they are included in Office Buildings, Central Urban Retail
Properties and Others that the Investment Corporation invests in or the Investment Corporation invests in these properties pertaining tosuch assets, this shall not apply.
-6-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(b) Investment Strategy for Property Acquisitions and Sales Policy
The Investment Corporation aims for further expansion of its asset size, with the goal of “forming a firm portfolio focusing on midsized office buildings” and to become the “No. 1 J-REIT for mid-sized office buildings.” The Investment Corporation will keep midsized office buildings in the Tokyo Metropolitan Area as its focus, and with regard to central urban retail properties, invest only inthose that have rare value as an alternative to office buildings, are located in busy commercial areas and offer a certain amount ofoffice space. In addition, the Investment Corporation believes that maintaining an investment strategy which aims for a certain
degree of regional diversification, will be a foundation for constructing a superior portfolio and differentiating the Investment
Corporation from others in the business.
Moreover, when acquiring assets, the Investment Corporation will aim for the sound and stable growth of the portfolio, by securingcontinuous opportunities for acquiring properties and flexible acquisition methods by utilizing the Asset Management Company’s
own networks and the sponsor company’s support line through building multiple pipelines. Also, based on the premises of that theInvestment 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, the Investment Corporation seeks to diversify
acquisition methods (direct acquisition, equity investment and co-acquisition with the sponsor company, mutual transaction with aview of asset reshuffle, etc.) to secure tactful acquisition of properties such as investments in warehousing related TK etc. incooperation with the sponsor company with consideration to the timing of funding or the consistency of the investment principles.
In selling properties, the Investment Corporation will examine the sale of properties individually in considering the use of funds for
asset reshuffles through new property acquisition or fund-type investments. Moreover, The Investment Corporation will decide on
the sale individually by considering the revenue and profitability that take into account current and 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.
(c) Management Strategy for Existing Properties
Taking into consideration economic and real estate market trends, the Investment Corporation adopts “a tenant-oriented approach
which will lead to revenue” for its leasing activities with aims of ensuring a timely and flexible response as well as optimizing tenantsatisfaction. Accordingly, the Investment Corporation seeks to aim to maintain / increase cash flow by offering office environmentswith high tenant satisfaction. Based on the aforementioned in aim to become “the mid-sized office building of the choice,” the AssetManagement Company undertakes asset management activities as follows:・Take measures to maintain and raise competitiveness of properties
・Tailor leasing management according to the market environment
・Apply careful control of management and operating costs by taking advantage of portfolio size
・Ensure appropriate response to relevant laws and regulations
・Develop a proactive response to environmental issues
Take measures to maintain and raise competitiveness of properties
The Investment Corporation will implement operation and management in close contact with the actual properties and further
enhance the management level. Some specific examples of the operation and management are the installation of boxes of emergency
kit, automated external defibrillators (AEDs) and service delivery of public wireless LAN in consideration of business continuity
plans (BCP) and its corporate social responsibilities (CSR).
Furthermore, tenants at properties are positioned as important “customers” and the perspective of customer satisfaction (CS) is
applied to the management of properties. The Investment Corporation has conducted CS surveys targeting the tenants of its officebuildings seven times in cooperation with J.D. Power Japan, 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 and facilities 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 Seventh CS survey conductedin August 2017 are as follows.
The response of “Satisfied”, “Slightly Satisfied” surpasses the result of the Sixth CS Survey conducted in August 2015.
＜Comprehensive Satisfaction Rating＞ (Note 1) (Note 2)
Slightly
SatisfiedSatisfiedSeventh CS Survey
28%
48%
Sixth CS Survey
24%
51%

Neither
17%
18%
-7-

Slightly
Dissatisfied
5%
6%

Dissatisfied
1%
1%

Unknown
0%1%

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

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

By conducting such surveys continuously and meeting tenant needs, the Investment Corporation is aiming to improve customer
satisfaction while also maintaining and improving the competitiveness and asset value of its properties, and to further enhance
profitability.
Tailor leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary investment target of the Investment Corporation, are thattenant turnover ratios are relatively high. Therefore, in the leasing aspect, the Investment Corporation implements leasing activities ina timely and flexible manner by adopting the basic policy of endeavoring to maximize revenues for the medium- to long-term
through maintaining occupancy rate, while taking into account economic and real estate market trends.
Concerning the solicitation of new tenants, the Investment Corporation strives to shorten the period of vacancy and boost theoccupancy rate by implementing flexible and dynamic leasing activities through sharing information closely with leasing brokers,
holding of previews, marketing directly to corporations, utilizing guarantee companies and other measures while closely watchingmarket conditions and timing of changes going forward.
Apply careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation will carefully control the quality of property management and reduce building maintenance andoperating costs by taking advantage of the portfolio size through cost reductions of building maintenance, reviews of building
maintenance companies, construction bidding and procurement of facilities and equipments, etc. via bulk orders.
Ensure appropriate responses to relevant laws and regulations
The Investment Corporation will gather information on the Building Standards Act (Act No. 201 of the year 1950, including
amendments thereafter) and other relevant laws and regulations and any future revisions, in a timely manner and will respond asnecessary while considering legal regulations.
Develop a proactive response to environmental issues
The Investment Corporation has established the environmental policies, and promotes environment-friendly investment management
operations through proactively participating in GRESB Real Estate Assessment and using certification and assessment systems byexternal institutions such as DBJ Green Building Certification.
In addition, the Investment Corporation is designated as a specified corporation pursuant to the Act on Rationalizing Energy Use.
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 returnon investment and social benefits.
(d) Financial Strategy (Debt Financing)
The Investment Corporation continuously strives to improve the terms and conditions of existing borrowings, and aims for stablefinancial management by taking the following measures, etc.
・Reduce refinance risks by diversifying maturities of interest-bearing debts
・Have the procurement ratio of long-term fixed interest borrowings above a certain level・Control the interest-bearing debt ratio (Note) in a conservative manner (the Investment Corporation will aim to keep the interestbearing debt ratio to total assets (LTV) at less than 45% level as a rule. However, it will also remain open to the option ofincreasing LTV to the upper 40% level in the event of debt financing conducted for the purpose of acquiring competitive
properties or otherwise.)Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial
institutions, especially major banks, aiming for more robust financial management. In addition, the Investment Corporation aspires to
pay attention to the share of each bank and consider as appropriate the introduction of transactions with new banks based oncomparison with the conditions with currently transacting banks.
Note: Interest-bearing debt ratio = Balance of interest-bearing debt at the end of fiscal period / Total assets at the end of fiscal period×100-8-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(e) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aimof promptly providing a wide range of relevant information to investors, and make revisions to the information disclosure system
when needed. In specific terms, the Investment Corporation provides information through the Timely Disclosure Network System(TDnet), which is a system operated by the Tokyo Stock Exchange, as well as press releases and its website (URL: http://www.kdoreit.com/en/).
(f) Measures for Conflict of Interest Transactions
The Asset Management Company provides asset management services to not only the Investment Corporation but also otherinvestment corporations and real estate funds, etc. For this reason, the Asset Management Company has adopted rules on“preferential rights to study property information” when considering acquisition of properties and established a Pipeline Meetingwith Compliance Officer as a member in order to provide the asset management services according to certain rules, for the purposeof preventing arbitrary allocation of the information about the sale of real estate, etc. and preventing conflicts of interest arising
between the investment corporations and real estate funds, etc., which consign the management business to the Asset Management
Company. As mentioned the above, the Asset Management Company is taking appropriate measures for conflict of interest
transactions.
(g) Important Subsequent Events after the Closing Date
Issuance of New Investment Units
On May 14, 2018 and May 21, 2018, the Investment Corporation’s Board of Directors resolved to issue new investment units asdetailed below. The payments were completed on May 28, 2018 for issuance of new investment units through public offerings, andon June 15, 2018 for issuance of new investment units through third-party allotment. As a result, the Investment Corporation had
total unitholders’ capital of 220, 970,508,345 yen with 428,510 units outstanding as of June 15, 2018.
(Issuance of New Investment Units through Public Offering)Number of New Investment Units Issued：22,500 units
Issue Price (Offer Price)：646,425 yen per unit
Total Amount of the Issue Price (Offer Price)：14,544,562,500 yen
Paid-in Value (Issue Amount)：625,209 yen per unit
Aggregate Paid-in Value (Total Issue Amount)：14,067,202,500 yen
Payment Date：May 28, 2018
(Issuance of New Investment Units through Third-Party Allotment)
Number of New Investment Units Issued：1,125 units
Paid-in Value (Issue Amount)：625,209 yen per unit
Aggregate Paid-in Value (Total Issue Amount)：703,360,125 yen
Payment Date：June 15, 2018
Allottee：Nomura Securities Co. Ltd.
(Use of Funds)
The funds from the offering, amounting to 14,067,202,500 yen, will be allocated as a part of the funds for the acquisition of theproperty to be acquired along with the proceeds from the third-party allotment resolved on the same date as the Public Offering,amounting to 703,360,125 yen. Please refer to “(Reference Information) (a) Acquisition of Property” below for details.

-9-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Reference Information)(a) Acquisition of Property
The Investment Corporation decided to acquire the following trust beneficiary interest in real estate (hereinafter may be referred
to as the “Property to be Acquired”) on May 14, 2018.
Scheduled
Date of
Acquisition(Note 1)

July 2, 2018

Type of Specified Asset

Trust beneficiary interestin real estate

Property Name

CROSS
PLACE
Hamamatsucho

Location

SellerMinato-ku,
Tokyo

Domestic General
Business
Corporation(hereinafterreferred to as “theDomestic General
Business
Corporation”)(Note 4)

AnticipatedAcquisition Price(Millions of Yen)
(Note 2)

Appraisal Value(Millions of Yen)
(Note 3)20,70022,400Note 1: The scheduled date of acquisition is as written in the trust beneficiary interest transaction agreement.
Note 2: Acquisition costs, adjustment of property tax and city-planning tax, and consumption tax, etc. are excluded.
Note 3: The base date for appraisal is March 31, 2018.
Note 4: The name of the Domestic General Business Corporation is not disclosed because the Domestic General Business Corporation has not
given consent for disclosure.
Note 5: The Investment Corporation has entered into a trust beneficiary transaction agreement with the Domestic General BusinessCorporation regarding CROSS PLACE Hamamatsucho, the asset to be acquired, and also entered into a real estate transaction
agreement with the Domestic General Business Corporation regarding one of the assets to be sold (please refer to “(b) Sale ofProperties” for details), KDX Hamamatsucho Dai-2 Building, and entered into a trust beneficiary transaction agreement with the SPC
composed by the Domestic General Business Corporation (hereinafter referred to as “the SPC”) regarding 49.0% and 51.0% of quasi
co-ownership interest in the trust beneficiary interest of Frame Jinnan-zaka, one of the assets to be sold. Based on these transaction
agreements, the 3 properties will in effect be part of a mutual transaction with the Domestic General Business Corporation Group (thecompany group consisting of the Domestic General Business Corporation, its subsidiaries, related companies and SPCs they havecomposed or entrusted asset management to).
Note 6: The trust beneficiary interest transaction agreement regarding the acquisition of CROSS PLACE Hamamatsucho falls under the
category of forward commitment (contracts under which the parties sign a purchase and sale agreement in advance of the actual dateon which the purchase price is paid and the property transferred over a month later and other similar contracts (including manifestationof intention, advance agreement, etc. which effectively bind on the transaction.) Our internal policies define any purchase or sale
contract allowing for delivery of the property more than a month after the execution of the agreement as a forward commitment
contract. Same applies below) as stipulated in the Comprehensive Guidelines for Supervision of Financial Instruments Business
Operators, etc. provided by Financial Services Agency. If the Investment Corporation violates any of the provisions of the transaction
agreements and then the transaction agreements are cancelled for the reason that purposes of the transaction agreements cannot be
fulfilled due to such violation, the Investment Corporation shall pay a certain ratio of the transaction price from which consumption
taxes, etc. are excluded as penalty fees. Such penalty fee for the Acquired Property is set at 4% of the anticipated acquisition price (828million yen). However, under the transaction agreements, an obligation to pay the acquisition price is established only when theInvestment Corporation completes to raise funds for acquisition of the property to be acquired through the issuance of new investment
units.

- 10 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(b) Sale of Properties
The Investment Corporation concluded the following trust beneficiary interest transaction agreement regarding the sale of thefollowing real estate and trust beneficiary interests in real estate (hereinafter may be referred to as “Properties to be Sold”) on
May 14, 2018.
Scheduled
Date of Sale
(Note 1)
July 2, 2018

Type of Specified
Asset

Property Name

Real estate

KDX
Hamamatsucho
Dai-2 Building

July 2, 2018

November 1,
2018

Trust beneficiaryinterest in realestateFrame Jinnan-zaka(49.0% of quasi
co-ownershipinterest)(Note 4)
Frame Jinnan-zaka(51.0% of quasi
co-ownershipinterest)(Note 4)

Location

Buyer

Minato-ku, Tokyo

The Domestic
General BusinessCorporation(Note 3)

Shibuya-ku, Tokyo

The SPC(Note 3)

Total AnticipatedSale Price(Millions of Yen)

Appraisal Value(Millions of Yen)
(Note 2)
2,200

12,550(Note 5)(Note 6)
11,100Note 1: The scheduled date of sale is as written in the respective transaction agreements.
Note 2: The base date for appraisal is April 30, 2018.
Note 3: The names, etc. of the Domestic General Business Corporation and the SPC are not disclosed because the Domestic General
Business Corporation and the SPC have not given consent for disclosure.
Note 4: The Investment Corporation has entered into the trust beneficiary interest transaction agreement regarding 49.0% of quasi coownership interest in the trust beneficiary interest of Frame Jinnan-zaka with the SPC, the date of execution of the sale of which is
set on July 2, 2018. The Investment Corporation has also entered into the trust beneficiary interest transaction agreement regarding
51.0% of quasi co-ownership interest in the trust beneficiary interest of Frame Jinnan-zaka with the SPC, the date of execution of
the sale of which is set on November 1, 2018. In the event that 49.0% of quasi co-ownership interest in the trust beneficiary interestof Frame Jinnan-zaka is sold based on the above trust beneficiary interest transaction agreement, the Investment Corporation will
jointly own the trust beneficiary interest in this property with the SPC until the remaining 51.0% of quasi co-ownership interest in
the trust beneficiary interest is sold.
The aforementioned dates of execution of the sale may change upon agreement between the Investment Corporation and the SPC.
Note 5: Acquisition costs, adjustment of property tax and city-planning tax, and consumption tax, etc. are excluded.
Note 6: The anticipated sale price for each property is not disclosed because the Domestic General Business Corporation and the SPC havenot given consent for disclosure.
Note 7: The transaction agreements of real estate or the trust beneficiary interest in real estate regarding the sale of KDX Hamamatsucho
Dai-2 Building and Frame Jinnan-zaka concluded with the buyers fall under the category of forward commitment. If the Investment
Corporation violates any of the provisions of the transaction agreements and then the transaction agreements are cancelled for thereason that purposes of the transaction agreements cannot be fulfilled due to such violation, the Investment Corporation shall pay acertain ratio of the transaction price from which consumption taxes, etc. are excluded as penalty fees. Such penalty fees are a certain
ratio of the respective sale prices as stipulated in each of the transaction agreements ranging from 5% to 20%.

(3) Risk Factors
There are no significant changes to the “Investment Risks” as described in the latest Securities Registration Statement submitted on
May 14, 2018 and the disclosures are omitted.

- 11 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(4) Outlook
Forecasts for the twenty-seventh fiscal period (May 1, 2018 to October 31, 2018) and for the twenty-eighth fiscal period (November 1,
2018 to April 30, 2019) are presented as follows.
Twenty-seventh fiscal period (May 1, 2018 to October 31, 2018)
Operating Revenues
15,334 million yen
Operating Income
7,054 million yen
Ordinary Income
5,998 million yen
Net Income
5,997 million yen
Distributions per Unit
13,200 yen
Excess of Earnings‐yen
Twenty-eighth fiscal period (November 1, 2018 to April 30, 2019)
Operating Revenues
15,086 million yen
Operating Income
7,016 million yen
Ordinary Income
5,957 million yen
Net Income
5,956 million yen
Distributions per Unit
13,200 yen
Excess of Earnings- yen
For preconditions and assumptions of the outlook, please refer to the following “Preconditions and Assumptions for the Twentyseventh Fiscal Period Ending October 31, 2018 and for the Twenty-eighth Fiscal Period Ending April 30, 2019”.
Moreover, the Investment Corporation has issued new investment units after the fiscal period under review, and has updated thepreconditions written in the “Notice Concerning Operating Forecasts for the Fiscal Period Ending October 31, 2018 (the 27th Fiscal
Period) and for the Fiscal Period Ending April 30, 2019 (the 28th Fiscal Period)” published on May 14, 2018, as of the date of the
publication of this document, but there is no change in the forecasts.
Note: Forecast figures above are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income anddistributions per unit may differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does notguarantee payment of the forecasted distributions per unit.

- 12 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Preconditions and Assumptions for the Twenty-seventh Fiscal Period Ending October 31, 2018 and for the Twenty-eighth Fiscal PeriodEnding April 30, 2019
Item
Preconditions and Assumptions
 The twenty-seventh fiscal period: May 1, 2018 to October 31, 2018 (184 days)
Calculation Period The twenty-eighth fiscal period: November 1, 2018 to April 30, 2019 (181 days)
 It is based on the premise that in addition to 97 properties owned by the Investment Corporation as of June15, 2018, one property acquisition (CROSS PLACE Hamamatsucho, scheduled to be acquired on July 2,2018) and two property sales (KDX Hamamatsucho Dai-2 Building, scheduled to be sold on July 2, 2018
and Frame Jinnan-zaka, scheduled to be sold on July 2, 2018 and November 1, 2018 ) are made by theissuance of new investment units according to “Notice Concerning Acquisition of Property (CROSSPLACE Hamamatsucho) and Sale of Properties (KDX Hamamatsucho Dai-2 Building・Frame JinnanProperty Portfoliozaka)”.
 It is assumed that there will be no transfer of assets in the property portfolio (sale of owned properties,
acquisition of properties, etc.), other than the above, by the end of the twenty-eighth fiscal period.
 The Investment Corporation also holds the TK equity other than above. It assumes the refund of the TK
equity will not occur by the end of the twenty-eighth fiscal period.
 The actual results may fluctuate due to changes in the property portfolio.
 Rental revenues are estimated based on valid leasing agreements as of June 15, 2018 and by considering
variable factors, such as seasonal factors against the backdrop of historical performance, as well as leasing
conditions, such as the recent real estate market conditions, in addition to the difference in number ofoperating days due to movements in existing investment assets.
 Dividends received of 58 million yen for the twenty-seventh fiscal period and 42 million yen for thetwenty-eighth fiscal period have been assumed with regard to the TK equity stated in the above “Property
Portfolio”.
Operating Revenues
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments from tenants.
 The gain on sale of real estate, etc. of 527 million yen in the twenty-seventh fiscal period and 563 million
yen in the twenty-eighth fiscal period is expected to be booked due to the sale of owned assets according
to “Notice Concerning Acquisition of Property (CROSS PLACE Hamamatsucho) and Sale of Properties(KDX Hamamatsucho Dai-2 Building・Frame Jinnan-zaka)” released on May 14, 2018. The actual
results may fluctuate due to success/failure of the transactions, sale price, settlement date and other factors.
 Expenses related to rental business other than depreciation are based on the historic expenses, adjusted toreflect expense variables including seasonal factors.
 An amount of 1,388 million yen for the twenty-seventh fiscal period and 1,384 million yen for the twentyeighth fiscal period has been assumed for property and facility management fees (property management
and building maintenance fees, etc.).
 An amount of 1,230 million yen for the twenty-seventh fiscal period and 1,229 million yen for the twentyeighth fiscal period has been assumed for taxes and public dues (property tax and city planning tax, etc.).
In addition, the property tax and city planning tax, etc. of the properties acquired and to be acquired on andafter January 1, 2018 are allocated to the seller and buyer on a pro rata basis at the time of acquisition
settlement, and the amount equivalent to the portion allocated to the buyer is included in the acquisition
cost of the property. Therefore no expenses are recorded for the twenty-seventh fiscal period, and only aportion (13 million yen) is recorded as expenses for the twenty-eighth fiscal period. The amount when all
Operating Expenses
such taxes are recorded as expenses is anticipated to amount to 55 million yen per fiscal period.
 An amount of 2,372 million yen for the twenty-seventh fiscal period and 2,388 million yen for the twentyeighth fiscal period has been assumed for depreciation expense.
 An amount of 464 million yen for the twenty-seventh fiscal period and 394 million yen for the twentyeighth fiscal period has been assumed for repairs, maintenance and renovation expenses.
Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by the AssetManagement Company for each property and considered essential for the period. Actual repairs,
maintenance and renovation expenses for the fiscal period may, however, differ significantly fromestimated amounts 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 of acquisition settlement. In the case of the Investment Corporation, an amount equivalent to the
portion allocated to the purchaser is included in the acquisition price of the property.
 Total expenses for the issuance of new investment units and the secondary offering of investment units as
resolved at the Investment Corporation’s board of directors held on May 14, 2018 are assumed to be 51
Non-Operating Expenses
million yen. Such expenses will be amortized over a period of 3 years using the straight-line method.
 Interest payable (including financing related expenses etc.) of 1,012 million yen for the twenty-seventh
fiscal period and 1,021 million yen for the twenty-eighth fiscal period is assumed.
Extraordinary Profit/Loss

Extraordinary profit/loss is not assumed.

- 13 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Item
Borrowings andInvestment Corporation
Bonds






Investment Units Issued
and OutstandingDistributions per UnitDistributions in Excessof Earnings per Unit

Preconditions and Assumptions
The balance of the borrowings and the investment corporation bonds as of June 15, 2018 is 178,050 million
yen and 7,800 million yen, respectively.
Of the borrowings as of June 15, 2018, a total of 11,500 million yen in borrowings is due for repayment
during the twenty-seventh fiscal period and a total of 11,550 million yen during the twenty-eighth fiscal
period. However, it is assumed that all borrowings will be refinanced.
Of the investment corporation bonds as of June 15, 2018, a total of 1,800 million yen is due for repayment
by the end of the twenty-seventh fiscal period. It is assumed that all these investment corporation bonds will
be redeemed with funds raised by issues of investment corporation bonds or debt financing, etc.
The number of investment units issued and outstanding is assumed to total at 428,510 units, since 23,625
units, the aggregate investment units newly issued as resolved at the Investment Corporation’s board of
directors held on May 14, 2018, are added to the number of investment units issued and outstanding as of
May 14, 2018 of 404,885 units. 23,625 units are comprised of (i) issuance of 22,500 new investment units
through public offering and (ii) issuance of 1,125 new investment units through third-party allotment
associated with a secondary offering via over-allotment.
Forecasts are based on the assumption that the number of investment units issued and outstanding shallremain unchanged until the end of the 28th fiscal period, excluding the above mentioned issued 23,625
units.
Distributions per unit are calculated in accordance with the Cash Distribution Policies outlined in theInvestment Corporation’s Articles of Incorporation.
Forecasts are calculated on the assumption that the amount remaining after deducting provision of reserve
for reduction entry of 340 million yen for the twenty-seventh fiscal period and 299 million yen for thetwenty-eighth fiscal period from net income is distributed.
Actual distributions per unit may differ significantly from forecasted figures due to a variety of reasons
including movements in investment assets, rental revenues impacted by tenant movements or incidence ofmajor unforeseen renovation expense.



The Investment Corporation does not currently anticipate distributions in excess of earnings.

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 real estate and other markets.

Other


- 14 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

3. Financial Statements(1) Balance Sheets(Thousands of Yen)
Twenty- fifth Fiscal Period

Twenty-sixth Fiscal Period(As of October 31, 2017)(As of April 30, 2018)

AssetsCurrent assets
Cash and deposits

19,917,133

13,033,326

Cash and deposits in trust

9,808,743

10,444,809

Accounts receivable-trade314,766

308,217

Prepaid expenses

110,584

76,768Consumption taxes receivable

90,895

166,118

Other

15,73917,37930,257,862

24,046,619

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings

17,814,001

17,943,798

Accumulated depreciation(4,812,998)(5,111,557)

Buildings, net

13,001,003

12,832,241

Structures

32,61832,618

Accumulated depreciation(12,088)(12,973)

Structures, net

20,52919,645

Machinery and equipment

403,054411,649

Accumulated depreciation(212,345)(223,927)

Machinery and equipment, net

190,709

187,722

Tools, furniture and fixtures

83,59383,593

Accumulated depreciation(48,941)(51,767)

Tools, furniture and fixtures, net

34,651

31,825Land

29,504,025

29,504,025

Buildings in trust

116,597,709 *2

118,523,178 *2

Accumulated depreciation(25,841,684)(26,581,425)

Buildings in trust, net

90,756,024

91,941,753

373,778345,717

Accumulated depreciation(175,568)(162,368)

Structures in trust, net

198,210

183,349

Machinery and equipment in trust

1,752,248

1,592,359

Accumulated depreciation(843,233)(719,408)

Machinery and equipment in trust, net

909,014872,951

463,275

466,546

Accumulated depreciation(262,396)(278,421)

Tools, furniture and fixtures in trust, net

200,878

188,125

246,626,638

259,908,839

Structures in trust

Tools, furniture and fixtures in trust

Land in trust
Construction in progress in trust

1,142

83

381,442,828

395,670,563

Land leasehold

285,257

285,257

Land leasehold in trust

353,072

352,298

Total property, plant and equipment
Intangible assets

Other
Total intangible assets

4,114

3,501

642,444

641,057

1,096,423

1,090,336

10,00010,000Investments and other assets
Investment securities
Lease and guarantee deposits
Lease and guarantee deposits in trust

122,889

122,889

Long-term prepaid expenses

1,273,614

1,306,980

39,073

61,101Other- 15 -

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

Total investments and other assets

Twenty-fifth Fiscal Period

Twenty-sixth Fiscal Period(As of October 31, 2017)(As of April 30, 2018)

2,542,001

2,591,308

384,627,273

398,902,929

Investment corporation bond issuance costs

48,52644,019Total deferred assets

48,52644,019414,933,663

422,993,568

Accounts payable

1,231,349

1,453,036

Short-term loans payable

6,000,000

6,000,000

Current portion of investment corporation bonds

1,800,000

1,800,000

Current portion of long-term loans payable

18,250,000

17,050,000

Accounts payable-other288,179

291,560

Accrued expenses

67,417

79,639Total noncurrent assets
Deferred assets

Total assets

Liabilities
Current Liabilities

Income taxes payable

760

682

Accrued consumption taxes

153,268

118,583

Advances received

2,240,535

2,340,180

Deposits received

31,6472,568

30,063,159

29,136,251

6,000,000

6,000,000

147,550,000

155,000,000

Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits

2,026,168

2,050,835

Tenant leasehold and security deposits in trust

16,442,929

17,164,250

Total noncurrent liabilities

172,019,097

180,215,086

202,082,256

209,351,337

206,199,945

206,199,945

Reserve for reduction entry

2,024,673

1,552,849

Total voluntary reserve

2,024,673

1,552,849

Unappropriated retained earnings (undisposed loss)

4,589,238

5,828,847

Total surplus

6,613,911

7,381,696

212,813,857

213,581,642

Deferred gains or losses on hedges

37,54960,587

Total valuation and translation adjustments

37,54960,587

212,851,406 *1

213,642,230 *1

414,933,663

422,993,568

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

Total unitholders' equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets- 16 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(2) Statements of Income(Thousands of Yen)
Twenty-fifth Fiscal Period
May 1, 2017 to
October 31, 2017

Twenty-sixth Fiscal Period
November 1, 2017 toApril 30, 2018

Operating revenues
Rental revenues

11,845,464 *1

12,351,730 *1

Other rental revenues

1,995,021 *1

1,870,367 *1

Gain on sales of real estate, etc.

-

Dividends income

550,142 *2

61,00750,882

13,901,494

14,823,123

Property related expenses

6,720,726 *1

6,977,998 *1

Loss on sales of real estate, etc.

568,160 *2

Asset management fees

757,285

Total operating revenue
Operating expenses

802,855

Directors' compensation

8,400

8,400

Asset custody fees

22,30422,448Administrative service fees

55,16055,699Audit fees

11,80011,800

Other operating expenses

100,257

95,549Total operating expenses

8,244,096

7,974,751

5,657,398

6,848,372

Operating income
Non-operating income
Interest income

35

38

Dividends and redemption-prescription

462

481

Interest on refund

14

232

Total non-operating income

513

752

829,913818,187

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

40,49532,780Borrowing related expenses

152,051

132,774

Amortization of investment corporation bond issuance costs

5,072

4,506

Amortization of investment unit issuance expenses

19,277-

Other

20,97330,9301,067,785

1,019,178

Ordinary income

Total non-operating expenses

4,590,125

5,829,946

Income before income taxes

4,590,125

5,829,946

Income taxes-current

1,126

1,101

Income taxes-deferred

5

(3)

1,131

1,098

4,588,993

5,828,847

244-

4,589,238

5,828,847

Total income taxes
Net income
Retained earnings at the beginning of a period
Unappropriated retained earnings (undisposed loss)- 17 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(3) Statements of Unitholders’ Equity
Twenty-fifth fiscal period (May 1, 2017 to October 31, 2017)(Thousands of Yen)
Valuation and translation
adjustments

Unitholders' equity
Surplus
Voluntary reserve

Unitholders'
capitalReserve for
reduction entry
Balance at the start of current
period206,199,945

2,024,673

Unappropriatedretained earnings
Total voluntary(undisposed loss)
reserve

2,024,673

Total surplus

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

10,882

10,882

Total net assets

4,750,760

6,775,433

212,975,379

212,986,261

Distribution from surplus(4,750,515)(4,750,515)(4,750,515)(4,750,515)

Net income

4,588,993

4,588,993

4,588,993

4,588,993

Changes during the period

Items other thanunitholders' equity, net
Total changes during theperiodBalance at the end of current
period26,667

26,667

26,667---(161,521)(161,521)(161,521)

26,667

26,667(134,854)* 206,199,945

2,024,673

2,024,673

4,589,238

6,613,911

212,813,857

37,54937,549212,851,406

Twenty-sixth fiscal period (November 1, 2017 to April 30, 2018)(Thousands of Yen)
Valuation and translation
adjustments

Unitholders' equity
Surplus
Voluntary reserve

Unitholders'
capitalReserve for
reduction entry
Balance at the start of current
period206,199,945

Unappropriatedretained earnings
Total voluntary(undisposed loss)
reserve

Total surplus

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

37,54937,549Total net assets

2,024,673

2,024,673

4,589,238

6,613,911

212,813,857

212,851,406(471,824)(471,824)

471,824---

Distribution from surplus(5,061,062)(5,061,062)(5,061,062)(5,061,062)

Net income

5,828,847

5,828,847

5,828,847

5,828,847

Changes during the period
Reversal of reserve for
reduction entry

Items other thanunitholders' equity, net
Total changes during theperiodBalance at the end of current
period23,03823,03823,038-(471,824)(471,824)

1,239,609

767,785

767,785

23,03823,038790,823* 206,199,945

1,552,849

1,552,849

5,828,847

7,381,696

213,581,642

60,58760,587

213,642,230- 18 -

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

Twenty-fifth Fiscal Period(May 1, 2017 to October 31, 2017)
Unappropriated retained earnings at theend of fiscal period under review
II. Voluntary reserve (reversal)
Reversal of reserve for reduction entry
III. Total distribution amount(November 1, 2017 to April 30, 2018)

I.

4,589,238,332
471,824,168-

5,061,062,500(12,500)

5,247,309,600(12,960)-

581,538,206

In accordance with the policy stipulated in Article 35(1) of its Articles of Incorporation, the Investment
Corporation determines that the amount of
distribution shall exceed the amount equivalent to
90% of its distributable profit as stipulated in Article
67-15 of the Act on Special Measures Concerning
Taxation, and shall be up to the amount of its profits
as the ceiling. Following this policy, the Investment
Corporation decided to distribute 5,061,062,500 yen,
the maximum integral multiple amounts ofinvestment units issued and outstanding of 404,885
units, based on the amount of the reversal of reserve
for reduction entry added unappropriated retained
earnings.
In addition, the Investment Corporation decided not
to distribute cash in excess of distributable profit,
stipulated in Article 35 (2) of its Articles ofIncorporation.

In accordance with the policy stipulated in Article 35(1) of its Articles of Incorporation, the Investment
Corporation determines that the amount of
distribution shall exceed the amount equivalent to
90% of its distributable profit as stipulated in Article
67-15 of the Act on Special Measures Concerning
Taxation, and shall be up to the amount of its profits
as the ceiling. Following this policy, the Investment
Corporation has decided that, of the amountremaining after the provision of reserve for reduction
entry as stipulated in Article 66-2 of the Act on
Special Measures Concerning Taxation is deductedfrom unappropriated retained earnings, it shall
distribute the outstanding 5,247,309,600 yen as profit
distribution.
In addition, the Investment Corporation decided not
to distribute cash in excess of distributable profit,
stipulated in Article 35 (2) of its Articles ofIncorporation.

(Distributions per unit)
IV. Voluntary reserve (provision)
Provision of reserve for reduction entry
V. Retained earnings brought forward to
the next period
Method of calculating the distribution
amount5,828,847,806- 19 -

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

Twenty-fifth Fiscal Period

Twenty-sixth Fiscal Period

May 1, 2017 to October 31, 2017

November 1, 2017 to April 30, 2018

Income before income taxes

4,590,125

5,829,946

Depreciation

2,294,401

2,295,920

Amortization of long-term prepaid expenses

148,301

132,517

Interest income

(35)

(38)

Interest expenses

870,409

850,967

Amortization of investment unit issuance expenses

19,277-

Amortization of investment corporation bond issuance expenses

5,072

4,506

Decrease (increase) in accounts receivable-trade

14,663

6,548

Decrease (increase) in consumption taxes refund receivable(90,895)(75,223)

Decrease (increase) in prepaid expenses(35,797)

33,815

Increase (decrease) in accounts payable

243,171

136,298

Increase (decrease) in accounts payable-other

26,4554,491(444,631)(34,684)

70,47399,644

Net cash provided by (used in) operating activities

Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Increase (decrease) in deposits received(38,276)(29,078)

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

5,398,413

9,056,075

Decrease (increase) in long-term prepaid expenses(193,833)(165,883)

Other(13,536)

3,823

12,863,759

18,149,649

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

35

38(877,086)(837,734)

(799)

(766)

11,985,908

17,311,186

Net cash provided by (used in) investment activities(102,119)(101,142)

Purchase of property, plant and equipment in trust(6,225,422)(25,402,604)

Payments of tenant leasehold and security deposits(112,140)(14,666)

Proceeds from tenant leasehold and security deposits

114,414

29,581

Payments of tenant leasehold and security deposits in trust(664,736)(553,418)

Proceeds from tenant leasehold and security deposits in trust

669,818

1,295,016-(686,767)

73,93645,721(6,246,248)(25,388,281)

Proceeds from short-term loans payable

2,000,000

4,000,000

Repayment of short-term loans payable-(4,000,000)

Proceeds from long-term loans payable

15,500,000

15,000,000

Repayment of long-term loans payable(14,000,000)(8,750,000)

Proceeds of investment corporation bond issuance

2,977,416-

Payments of investment corporation bond redemption(1,500,000)-

Dividends paid

(4,749,942)(5,061,692)

Net cash provided by (used in) financing activities

227,473

1,188,307

Net increase (decrease) in cash and cash equivalents

5,967,133(6,888,787)

Cash and cash equivalents at the beginning of period

22,668,339

Cash and cash equivalents at the end of period

28,635,473

Purchase of property, plant and equipment

Payments of restricted bank deposits in trust
Proceeds from restricted bank deposits in trust
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities- 20 -

28,635,473*

21,746,685*

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(6) Notes on the Going Concern
Not applicable(7) Important Accounting Standards
1. Evaluation standards and evaluation method of assets

Securities
Other securitiesThose with no fair value
Cost method through moving-average method
Concerning silent partnership (tokumei kumiai) (TK) interests, the method ofincorporating the amount of equity equivalent to the portion that corresponds to the net
gain or loss of TK is added.

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

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

4. Accounting standards for revenues and expenses

Accounting method for property tax, etc.
Property-related taxes including property taxes and city planning taxes, etc. are imposed on
properties on a calendar year basis. These taxes are generally charged to rental expenses forthe said fiscal period, for the portion of such taxes corresponding to said period.
In connection with the acquisition of real estate or trust beneficiary interests in real estate
during the fiscal period under review, the Investment Corporation included it’s pro rata
property portion for the year in each property acquisition cost and not as rental expense. The
amount of property taxes included in acquisition cost for the previous fiscal period amounted to26,264 thousand yen and for the fiscal period under review amounted to 53,876 thousand yen.

5. Accounting for hedges(1) Hedge accounting method
The deferred hedge method is applied. However, the special treatment is applied for theinterest-rate swap and interest-rate cap agreements that meet the criteria.
(2) Hedging instruments and risks hedged
Hedge instruments
The Investment Corporation enters into interest-rate swap transactions.
The Investment Corporation enters into interest-rate cap transactions.
Risks hedged
Interest rates on debt.
(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its risk
management policies with the objective of hedging risks in accordance with its Articles ofIncorporation.
(4) Method of evaluating the effectiveness of hedging
During the period from the commencement of hedging to the point at which effectivenessis assessed, the Investment Corporation compares the cumulative total of market changes
in the targeted objects of hedging or cash flow changes with the cumulative total of market
changes in the hedging instruments or cash flow changes. The Investment Corporation
then makes a decision based on the changes and other factors of the two.
However, concerning the interest-rate swap and interest-rate cap agreements that meet thecriteria for special treatment, the evaluation of effectiveness are omitted.
- 21 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

6. The scope of cash and cash equivalents on statementsof cash flows

7. Other significant accounting policies utilized in the
preparation of financial statements

For the purpose of cash flow statements, cash and cash equivalents consist of cash on hand,deposits received that can be withdrawn on demand, and short-term investments withoriginal maturities of 3 months or less, that are readily convertible to known amounts of cash
and present insignificant risk of a change in value.
(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities as well as revenues and expenses of financial assets held in theform of trust beneficiary interests in real estate and other assets are recorded in full in theInvestment Corporation’s balance sheets and statements of income.
Important line items included in accounting for financial assets and liabilities in theInvestment Corporation’s balance sheet are as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools,
furniture and fixtures in trust, land in trust and construction in progress in trust
3. Land leasehold in trust
4. Lease and guarantee deposits in trust
5. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption taxes are separately recorded. Non-deductible consumption taxes applicableto the acquisition of assets are included in the cost of acquisition for each asset.

- 22 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(8) Notes on the Financial Statements(Notes on the Balance Sheets)*1. Minimum unitholders’ equity pursuant to Article 67, paragraph 4 of the Act on Investment Trusts and Investment Corporations(Thousands of Yen)
Twenty-fifth Fiscal Period(as of October 31, 2017)

Twenty-sixth Fiscal Period(as of April 30, 2018)
50,00050,000*2. The amount of advanced depreciation of property, plant and equipment acquired by government subsidy, etc.
(Thousands of Yen)
Twenty-fifth Fiscal Period(as of October 31, 2017)
Buildings in trust

Twenty-sixth Fiscal Period(as of April 30, 2018)
26,230(Notes on the Statements of Income)*1. Breakdown of real estate rental business profit and loss

26,230(Thousands of Yen)
Twenty-fifth Fiscal Period
May 1, 2017 to October 31, 2017

Twenty-sixth Fiscal Period
November 1, 2017 to April 30, 2018

A. Rental and other operating revenues
Rental revenues
Leasing income

9,997,791

10,509,225

Common area charges

1,847,673

1,842,504

Subtotal

11,845,464

12,351,730

Other rental revenues
Parking space rental revenues

520,035

513,392

Utility charge reimbursement

1,176,012

1,054,416

Miscellaneous

298,973

302,558

Subtotal

1,995,021

1,870,367

13,840,486

14,222,098

Property management fees and facility management fees

1,325,156

1,355,289

Utilities

1,176,914

1,102,668

Taxes

1,141,603

1,148,754

Repairs and maintenance costs

451,239

767,074

Insurance

18,785

19,318

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

Trust fees

33,58032,748Others279,656

256,837

Depreciation

2,293,789

2,295,308

6,720,726

6,977,998

7,119,759

7,244,099

Total rental and other operating expenses
C. Rental operating profit (A – B)

- 23 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)*2. Gain and Loss on sale of real estate, etc.
Twenty-fifth Fiscal Period (May 1, 2017 to October 31, 2017)(Thousands of Yen)KDX Shin-Yokohama 381 Building
Revenue from sale of real estate, etc.

4,900,000

Cost of real estate, etc. sold

5,419,438

Other sales expenses

48,722

Loss on sale of real estate, etc.

568,160

Twenty-sixth Fiscal Period (November 1, 2017 to April 30, 2018)(Thousands of Yen)
(1) KDX Ikejiri-Oohashi Building
Revenue from sale of real estate, etc.

2,400,000

Cost of real estate, etc. sold

2,353,314

Other sales expenses

35,467

Gain on sale of real estate, etc.

11,217(2) KDX Shin-Yokohama 214 Building
Revenue from sale of real estate, etc.

2,430,000

Cost of real estate, etc. sold2,221,555

Other sales expenses

55,614Gain on sale of real estate, etc.

152,830(3) Residence Charmante Tsukishima
Revenue from sale of real estate, etc.

4,900,000

Cost of real estate, etc. sold4,481,204

Other sales expenses

32,700Gain on sale of real estate, etc.

386,094(Notes on the Statements of Changes in Unitholders’ Equity)* Total number of authorized investment units and total number of investment units issued and outstanding
Twenty-fifth Fiscal Period
May 1, 2017 to October 31, 2017
Total number of authorized investment units
Total number of investment units issued andoutstanding

Twenty-sixth Fiscal Period
November 1, 2017 to April 30, 2018

2,000,000 units

2,000,000 units

404,885 units

404,885 units(Notes on the Statements of Cash Flow)* Reconciliation of balance sheet items to cash and cash equivalents at end of period in the cash flows statements(Thousands of Yen)
Twenty-fifth Fiscal Period
May 1, 2017 to October 31, 2017

Twenty-sixth Fiscal Period
November 1, 2017 to April 30, 2018

19,917,133

Cash and deposits

13,033,326

Cash and deposits in trust

9,808,743

10,444,809

Restricted bank deposits held in trust (Note)(1,090,403)(1,731,450)

Cash and cash equivalents

28,635,473

21,746,685

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

- 24 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on the Lease Transactions)Operating lease transactions(Lessor)(Thousands of Yen)
Twenty-fifth Fiscal Period(as of October 31, 2017)

Twenty-sixth Fiscal Period(as of April 30, 2018)

Unearned lease payments
Due within one year

1,794,970

1,446,246

Due after one year

9,036,969

5,943,183

Total

10,831,939

7,389,430(Notes on the Financial Instruments)
1. Items with Regard to the current status of Financial Instruments(1) Action Policy with Regard to Financial Instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bank loans andthe issuance of investment corporation bonds and new investment units. The Investment Corporation makes use of derivative instruments primarily as arisk hedge against interest rate fluctuations and to lessen interest-rate payments. In addition, it is company policy to not conduct speculative derivativetransactions. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate
conditions and cash flows.
(2) Financial Instruments and Respective Risks
Investment securities are TK interests, which are subject to credit risk of the issuer and risk of fluctuation of value of real estate, etc.
Loans and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption dateof a maximum of about 10 years following the closing date. Although a certain portion of said liabilities are subject to interest rate fluctuation risks, theInvestment Corporation utilizes derivative instruments (interest-rate swap transactions, etc.) in order to hedge against such risks.
Derivative instruments are interest-rate swap and interest-rate cap transactions that are used to hedge against interest rate fluctuation risks. Utilizing
interest-rate swap transactions, the Investment Corporation fixed its interest payments for funds procured on a floating interest rate basis or minimizing
the risk of interest rate increase. With regard to hedge accounting methods, hedging instruments and hedged items, hedge policy, and the method of
evaluation of hedge effectiveness, please refer to “5. Accounting for hedges in notes concerning Important Accounting Standards”.
(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in Interest Rates and Others)
The Investment Corporation uses interest-rate swap etc., in order to minimize risks associated with interest payment rate fluctuations on funds
procured.
The Investment Corporation will periodically grasp the value of real estate, etc. and financial condition, etc. of the issuer with regard to investment
securities.
B. Management of Liquidity Risk (Risk of Defaulting on Payments by the Due Date) Associated with Funds Procurement
Although loans and other liabilities are subject to liquidity risks, the Investment Corporation reduces such risks by spreading out payment due dates
and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash
reserves.
(4) Supplemental Explanation of Items with Regard to Fair Value of Financial Instruments
Included in the fair value of financial products are market prices, or, in the event market prices are not available, prices that are calculated on arational basis. Because the factors incorporated into the calculation of these prices are subject to change, differing assumptions are adopted which
may alter fair value. Moreover, the contract amounts, etc. of derivative transactions in “2. Items with Regard to Fair Value of Financial Instruments”
do not indicate the market risk of derivative transactions.

- 25 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference are as follows. Furthermore, items whose fair values are recognized to be
extremely difficult to grasp are not included in the following table (Refer to Note 2).
Twenty-fifth Fiscal Period (as of October 31, 2017)(Thousands of Yen)
Book Value(1) Cash and deposits(2) Cash and deposits in trust
Total(1) Short-term loans payable(2) Current portion of investment corporation bonds(3) Current portion of long-term loans payable(4) Investment corporation bonds(5) Long-term loans payable
Total
Derivative transaction

19,917,133
9,808,743
29,725,877
6,000,000
1,800,000
18,250,000
6,000,000
147,550,000
179,600,000
37,549Fair Value

Difference

19,917,133
9,808,743
29,725,877
6,000,000
1,810,728
18,283,972
6,048,100
148,148,063
180,290,864
37,549Twenty-sixth Fiscal Period (as of April 30, 2018)

10,72833,972
48,100598,063
690,864(Thousands of Yen)

Book Value

Fair Value

Difference(1) Cash and deposits
13,033,326
13,033,326(2) Cash and deposits in trust
10,444,809
10,444,809
Total
23,478,136
23,478,136(1) Short-term loans payable
6,000,000
6,000,000(2) Current portion of investment corporation bonds
1,800,000
1,804,644(3) Current portion of long-term loans payable
17,050,000
17,088,337(4) Investment corporation bonds
6,000,000
6,057,000(5) Long-term loans payable
155,000,000
155,280,513
Total
185,850,000
186,230,495
Derivative transaction
60,58760,587Note 1: Items with regard to the calculation method of financial instrument fair value, investment securities and derivative transactions.

4,644
38,33757,000280,513
380,495-

Assets(1) Cash and deposits, (2) Cash and deposits in trust
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used todetermine fair value.
Liabilities(1) Short-term loans payable
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used todetermine fair value.
(2) Current portion of investment corporation bonds and (4) investment corporation bonds
The fair value of investment corporation bonds is based on market prices.
(3) Current portion of long-term loans payable and (5) long-term loans payable
The fair value of long-term borrowings is calculated based on the present value that discounts the total amount of principal and interest by using theestimated interest rate in the event that the Investment Corporation conducts new borrowings of the same type. Among long-term borrowings withfloating interest rates, the said borrowings, which are subject to special treatment of interest-rate swaps or caps, are calculated by discounting the total
amount of principal and interest, which is handled together with applicable interest-rate swaps or caps, by the rationally estimated interest rate in thecase that the same type of borrowings are undertaken.
Derivative Transactions
Please refer to the following “Notes on the Derivative Transactions”.

- 26 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Note 2: Book value of financial instruments for which it is extremely difficult to determine the fair value(Thousands of Yen)
Twenty-sixth Fiscal Period(as of April 30, 2018)

Twenty-fifth Fiscal Period(as of October 31, 2017)Classification
Investment securities*

1,096,423

1,090,336*Because no quoted market price for TK interests is available and it is extremely difficult to determine the fair value, the above TK interests are notincluded in the preceding table.
Note 3: Redemption schedule of monetary claims after the closing date
Twenty-fifth Fiscal Period (as of October 31, 2017)
Due within 1 yr.

(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Cash and deposits

19,917,133

-

-

-

-

-

Cash and deposits in trust

9,808,743

-

-

-

-

-

29,725,877

-

-

-

-

-

Total

Twenty-sixth Fiscal Period (as of April 30, 2018)
Due within 1 yr.

(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Cash and deposits

13,033,326

-

-

-

-

-

Cash and deposits in trust

10,444,809

-

-

-

-

-

23,478,136

-

-

-

-

-

Total

Note 4: Redemption schedule of investment corporation bonds and repayment schedule of loans after the closing date
Twenty-fifth Fiscal Period (as of October 31, 2017)
Due within 1 yr.

(Thousands of Yen)
1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Short-term loans payable

6,000,000

-

-

-

-

-

Investment corporation bonds

1,800,000---

1,000,000

5,000,000

Long-term loans payable

18,250,000

13,750,000

18,600,000

21,300,000

17,050,000

76,850,000

26,050,000

13,750,000

18,600,000

21,300,000

18,050,000

81,850,000

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

Total

Twenty-sixth Fiscal Period (as of April 30, 2018)
Due within 1 yr.

(Thousands of Yen)
More than 5 yrs.

Short-term loans payable

6,000,000

-

-

-

-

-

Investment corporation bonds

1,800,000---

1,000,000

5,000,000

Long-term loans payable

17,050,000

14,700,000

19,600,000

21,700,000

10,950,000

88,050,000

24,850,000

14,700,000

19,600,000

21,700,000

11,950,000

93,050,000

Total(Notes on the Marketable Securities)

Twenty-fifth Fiscal Period (as of October 31, 2017) and Twenty-sixth Fiscal Period (as of April 30, 2018): Not applicable(Notes on the Derivative Transactions)
1. Items that do not apply hedge accounting
Twenty-fifth Fiscal Period (as of October 31, 2017) and Twenty-sixth Fiscal Period (as of April 30, 2018): Not applicable
2. Items that apply hedge accounting
Twenty-fifth Fiscal Period (as of October 31, 2017)
Hedge accounting
methodPrinciple method

Type of derivative transactions

Main target ofrisk hedge

Interest-rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable

Special treatment of Interest-rate swap transactions
Long-term loansinterest-rate swaps Fixed rate payable･Floating rate receivable payable
Special treatment ofInterest-rate cap transactions
interest-rate caps

Long-term loans
payableTotal- 27 -(Thousands of Yen)
Contracted amountCalculation method for
Fair value
applicable fair value
More than 1 yr.
Based on the quoted
price obtained from
12,200,000
37,54912,200,000
counterparty financial
institutions.
99,650,000

93,900,000＊-

500,000-＊-

112,350,000

106,100,000

37,549-

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Twenty-sixth Fiscal Period (as of April 30, 2018)
Hedge accounting
Type of derivative transactions
methodPrinciple method

Main target ofrisk hedge

Interest-rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable

Special treatment of Interest-rate swap transactions
Long-term loansinterest-rate swaps Fixed rate payable･Floating rate receivable payable
Special treatment ofInterest-rate cap transactions
interest-rate caps

(Thousands of Yen)
Contracted amountCalculation method for
Fair value
applicable fair value
More than 1 yr.
Based on the quoted
price obtained from17,900,000
17,900,000
60,587counterparty financial
institutions.
97,400,000

88,750,000＊-

Long-term loans
payable500,000

-

＊

-

Total

115,800,000

106,650,000

60,587-＊ Special treatment of interest-rate swaps or caps is reported at the fair value of applicable long-term loans payable. This is because such swaps or caps arehandled together with hedged long-term loans payable.
(Notes on the Retirement Payment)
Twenty-fifth Fiscal Period (as of October 31, 2017) and Twenty-sixth Fiscal Period (as of April 30, 2018): Not applicable(Notes on the Asset Retirement Obligations)Twenty-fifth Fiscal Period (as of October 31, 2017) and Twenty-sixth Fiscal Period (as of April 30, 2018): Not applicable(Notes on the Segment and Related Information)
1. Segment Information
Disclosure is omitted because the Investment Corporation has been engaged in the real estate leasing business as a sole business and it has no reportablesegment subject to disclosure.
2. Related Information
Twenty-fifth Fiscal Period (May 1, 2017 to October 31, 2017)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenues on
the statement of income.
(2) Information about each geographic area
① Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statement of income.
② Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plantand equipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenues on the statement of income.
Twenty-sixth Fiscal Period (November 1, 2017 to April 30, 2018)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenues on
the statement of income.
(2) Information about each geographic area
① Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statement of income.
② Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plantand equipment on the balance sheet.

- 28 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenues on the statement of income.
(Notes on the Tax-Effect Accounting)
1. Significant components of deferred tax assets and liabilities(Thousands of Yen)
Twenty-fifth Fiscal Period(as of October 31, 2017)

Twenty-sixth Fiscal Period(as of April 30, 2018)

Deferred tax assets
Enterprise tax payable
Amortization of land leasehold in trust
Subtotal deferred tax assets
Valuation allowance

25

29

3,383

3,628

3,409

3,657

(3,383)(3,628)25

29

Total deferred tax assets

2. Significant components causing difference between statutory income tax rate and the effective tax rate after tax effect accounting(Unit: %)Twenty-fifth Fiscal Period(as of October 31, 2017)
Statutory tax rate

Twenty-sixth Fiscal Period(as of April 30, 2018)
31.74

31.74

(35.00)(28.57)(Adjustments)
Deductible cash distributions
Reversal amount of reserve for reduction entry

3.26

-

Provision amount of reserve for reduction entry-(3.17)

Others0.02

0.02

Effective tax rate

0.02

0.02

(Notes on the Gains and Losses on Equity-method, etc.)
Twenty-fifth Fiscal Period (May 1, 2017 to October 31, 2017) and Twenty-sixth Fiscal Period (November 1, 2017 to April 30, 2018): Not applicable(Notes on the Related-party Transactions)
1. Parent Company, major corporate unitholders and other
Twenty-fifth Fiscal Period (May 1, 2017 to October 31, 2017) and Twenty-sixth Fiscal Period (November 1, 2017 to April 30, 2018): Not applicable
2. Affiliated companies and other
Twenty-fifth Fiscal Period (May 1, 2017 to October 31, 2017) and Twenty-sixth Fiscal Period (November 1, 2017 to April 30, 2018): Not applicable
3. Fellow subsidiary companies and other
Twenty-fifth Fiscal Period (May 1, 2017 to October 31, 2017) and Twenty-sixth Fiscal Period (November 1, 2017 to April 30, 2018): Not applicable
4. Directors, major individual unitholders and other
Twenty-fifth Fiscal Period (May 1, 2017 to October 31, 2017) and Twenty-sixth Fiscal Period (November 1, 2017 to April 30, 2018): Not applicable(Notes on the Real Estate for Rental Purposes)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenue.
The book value per balance sheet for the fiscal period under review, changes during the period and fair value concerning the above real estate for rental
purposes are as follows.
(Thousands of Yen)
Twenty-fifth Fiscal Period
May 1, 2017 to October 31, 2017

Twenty-sixth Fiscal Period
November 1, 2017 to April 30, 2018

Book value
Balance at the beginning of the period

383,401,649

382,081,158

Changes during the period(1,320,490)

14,226,960

Balance at the end of the period

382,081,158

396,308,119

424,323,000

442,773,000

Fair value at the end of period- 29 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period is the appraisal value determined by outside appraisers. Fair value at the end of the previous fiscal
period of Residence Charmante Tsukishima that was sold on December 1, 2017 is calculated based on the sale price (4,900 million yen) in
the transaction agreement on October 30, 2017. Those of KDX Ikejiri-Oohashi Building and KDX Shin-Yokohama 214 Building that weresold on December 28, 2017are calculated based on the sale price (KDX Ikejiri-Oohashi Building: 2,400 million yen; KDX Shin-Yokohama
214 Building: 2,430 million yen) in the transaction agreements on December 14, 2017. Fair value at the end of the fiscal period underreview of KDX Hamamatsucho Dai-2 Building and Frame Jinnan-zaka that are scheduled to be sold on July 2, 2018, and July 2, 2018 andNovember 1, 2018 respectively are calculated based on the anticipated sale price (Total: 12,550 million yen) in the transaction agreements
on May 14, 2018.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the previous fiscal period, principal increase/decrease
factors were the acquisition of real estate trust beneficiary interests in 2 properties totaling 5,405,572 thousand yen, the sale of real estate
trust beneficiary interests in 1 property totaling 5,419,438 thousand yen and depreciation amounting in 2,293,789 thousand yen. For the
fiscal period under review, principal increase/decrease factors were the acquisition of real estate trust beneficiary interests in 2 properties
totaling 24,692,691 thousand yen, the sale of real estate trust beneficiary interests in 3 properties totaling 9,056,075 thousand yen anddepreciation amounting in 2,295,308 thousand yen.
Income and loss for real estate for rental purposes are listed in “Notes to the Statements of Income”.
(Notes on the Information per Unit)
Twenty-fifth Fiscal Period
May 1, 2017 to October 31, 2017
Net Assets per unit

Twenty-sixth Fiscal Period
November 1, 2017 to April 30, 2018525,708 yen

527,661 yen

Net income per unit
11,334 yen
14,396 yen
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 perunit after adjusting for diluted investment units is not included because there were no dilutive investment units.
Note 2: The basis of calculation for the net income per unit is as follow.
Twenty-fifth Fiscal Period
May 1, 2017 to October 31, 2017
Net income(Thousands of Yen)
Amount not vested in ordinary unitholders(Thousands of Yen)
Net income for ordinary investment units(Thousands of Yen)
Average number of investment units
during the period (unit)

Twenty-sixth Fiscal Period
November 1, 2017 to April 30, 2018

4,588,993

5,828,847--

4,588,993

5,828,847

404,885

404,885(Notes on the Important Subsequent Events)

Issuance of New Investment Units
On May 14, 2018 and May 21, 2018, the Investment Corporation’s Board of Directors resolved to issue new investment units as detailed
below. The payments were completed on May 28, 2018 for issuance of new investment units through public offerings, and on June 15,2018 for issuance of new investment units through third-party allotment. As a result, the Investment Corporation had total unitholders’capital of 220, 970,508,345 yen with 428,510 units outstanding as of June 15, 2018.
(Issuance of New Investment Units through Public Offering)Number of New Investment Units Issued：22,500 units
Issue Price (Offer Price)：646,425 yen per unit
Total Amount of the Issue Price (Offer Price)：14,544,562,500 yen
Paid-in Value (Issue Amount)：625,209 yen per unit
Aggregate Paid-in Value (Total Issue Amount)：14,067,202,500 yen
Payment Date：May 28, 2018
(Issuance of New Investment Units through Third-Party Allotment)
Number of New Investment Units Issued：1,125 units
Paid-in Value (Issue Amount)：625,209 yen per unit
Aggregate Paid-in Value (Total Issue Amount)：703,360,125 yen
Payment Date：June 15, 2018
Allottee：Nomura Securities Co., Ltd.
(Use of Funds)
The funds from the offering, amounting to 14,067,202,500 yen, will be allocated as a part of the funds for the acquisition of a property to
be acquired along with the proceeds from the third-party allotment resolved on the same date as the Public Offering, amounting to703,360,125 yen.
- 30 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(9) Changes in the Number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ capital in the last 5 years from the fiscal period under review aresummarized in the following table.

Settlement Date

Particulars

November 13, 2013

Public offering

December 10, 2013
May 27, 2014

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)43,800330,350

Third-party allotment

2,190

Public offering

21,400June 24, 2014

Third-party allotment

November 27, 2014
December 24, 2014

Unitholders’ Capital(Millions of Yen) (Note 7)
Increase
Balance(Decrease)

Remarks

18,198165,351(Note 1)

332,540909

166,261(Note 2)353,940

9,876

176,138(Note 3)1,070

355,010493

176,632(Note 4)

Public offering

47,685

402,695

28,269204,901(Note 5)

Third-party allotment

2,190

404,885

1,298

206,199(Note 6)Note 1: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for theacquisition of new properties and repayment of borrowings. The offer price was 430,950 yen per unit with an issue price of 415,480 yen per unit.
Note 2: The Investment Corporation undertook an additional issue of new investment units with an issue price of 415,480 yen per unit by way of thirdparty allotment because cash on hand was allocated as a portion of the funds for the acquisition of new properties, the funds from the issuance of
new Investment Units by third-party allotment are allocated as proceeds to compensate for the decrease of cash on hand.
Note 3: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for theacquisition of new properties. The offer price was 478,725 yen per unit with an issue price of 461,540 yen per unit.
Note 4: The Investment Corporation undertook an additional issue of new investment units with an issue price of 461,540 yen per unit by way of thirdparty allotment for the purpose of using as funds for the future acquisition of specified assets or a portion of funds for the repayment ofborrowings.
Note 5: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for theacquisition of new properties and a portion of funds for the repayment of borrowings. The offer price was 614,250 yen per unit with an issue
price of 592,830 yen per unit.
Note 6: The Investment Corporation undertook an additional issue of new investment units with an issue price of 592,830 yen per unit by way of thirdparty allotment for the purpose of using as funds for the future acquisition of specified assets or a portion of funds for the repayment ofborrowings.
Note 7: The amounts stated in 1 million yen unit are truncated at less than 1 million yen.

- 31 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

4. Resignation/Appointment of the Director(1) Resignation/Appointment of the Director of the Investment Corporation
Naokatsu Uchida resigned the Executive Director upon the offer of resignation as of March 31, 2018, and Jiro Takeda, the Alternate Executive Director
took up the Executive Director as of April 1, 2018.
New Executive Director Jiro Takeda (as of April 1, 2018)
Retired Executive Director Naokatsu Uchida (as of March 31, 2018)(2) Resignation/Appointment of the Director of the Asset Management Company
Naokatsu Uchida resigned the Director upon the offer of resignation as of March 31, 2018, and Tetsuo Ueda resigned the Auditor as of March 27, 2018.
Jiro Takeda was appointed the Director as of April 1, 2018, and Keizo Katayama was appointed the Auditor as of March 27, 2018 at the ordinary generalshareholders’ meeting held on March 27, 2018. Furthermore, Jiro Takeda took up the Director and COO, Head of Office REIT Department as of April 1,
2018.
New Director Jiro Takeda (as of April 1, 2018)
Retired Director Naokatsu Uchida (as of March 31, 2018)
New Auditor (part-time) Keizo Katayama (as of March 27, 2018)
Retired Auditor (part-time) Tetsuo Ueda (as of March 27, 2018)- 32 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

5. Reference Information(1) Component of Assets
Twenty-fifth Fiscal Period(as of October 31, 2017)
Asset Class

Type

Area

Office Buildings

Real Estate

Total Amount Held
(Millions of Yen)
(Note 1)
30,382

Tokyo Metropolitan Area
Other Regional Areas

Total for Office Buildings
Total for Real Estate

Twenty-sixth Fiscal Period(as of April 30, 2018)
Total Amount Held
(Millions of Yen)
(Note 1)
7.3
30,309Ratio(%) (Note 2)

Ratio(%) (Note 2)
7.2

12,6533.0

12,551

3.0

43,036

10.4

42,86010.1

43,036

10.4

42,860

10.1

Office Buildings

Tokyo Metropolitan Area

249,084

60.0

280,44166.3(Note 4)

Other Regional Areas

61,20714.8

60,853

14.4

Total for Office Buildings

310,29274.8

341,294

80.7

Tokyo Metropolitan Area

4,496

1.1

-

-

Total for Residential Property
Central Urban Retail
Properties
Tokyo Metropolitan Area
(Note 4)
Total for Central Urban Retail Properties

4,496

1.1

-

-

21,282

5.1

9,179

2.2

21,282

5.1

9,179

2.2

Tokyo Metropolitan Area

2,973

0.7

2,973

0.7

2,973

0.7

2,973

0.7

339,04481.7

353,447

83.6

Investment Securities (Note 3)

1,096

0.3

1,090

0.3

Bank Deposits and Other Assets

31,756

7.7

25,595

6.1

Total Assets

414,933

100.0

422,993

100.0

Residential Property
Trust BeneficiaryInterest in Real
EstateOthersTotal 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 fiscal period (figures are on a net book value basis after
deducting depreciation), and truncated at less than 1 million yen.
Note 2: “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets, rounded to the first decimal place.
Note 3: Interests in a silent partnership operated by G.K. KRF 43 are indicated.
Note 4: Due to the change in the Investment Corporation’s management guidelines, the “Type” of some of the owned properties has been changed from“Central Urban Retail Property” to “Office Building” since December 1, 2017. The outstanding book value in the previous fiscal period (as of
October 31, 2017) of owned properties that changed its “type” is 2,449 million yen for KDX Yoyogi Building and 9,598 million yen for Ginza 4chome Tower.
Twenty-fifth Fiscal Period(as of October 31, 2017)
Amount(Millions of Yen)

Twenty-sixth Fiscal Period(as of April 30, 2018)
AmountRatio(Millions of Yen)
(%)

Ratio
(%)

Total Liabilities

202,08248.7

209,351

49.5

Total Net Assets

212,85151.3

213,642

50.5

Total Assets

414,933

100.0

422,993

100.0(2) Details of Investment Assets① Major components of investment securities
Details of investment assets held by the Investment Corporation as of April 30, 2018 are as follows.

Name

Area

Interests in a silent partnership
operated by G.K. KRF 43(Note 3)Total

Domestic
Area

Number of
Asset Class
Units
Interests
in a silent
partnershipBook Value(Millions of Yen)

Appraisal Value(Millions of Yen)
(Note 1)

Ratio (%)
(Note 2)

Appraisal
profit/loss

Unit Price

AmountUnit Price

Amount

-

-

1,090

-

1,090

0.3

-

-

-

1,090

-

1,090

0.3

-

Note 1: Book value is stated for the evaluation value.
Note 2: “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets, rounded to the first decimal place.
Note 3: The asset under management is the trust beneficiary interest in real estate of Shinjuku Sanei Building.

- 33 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)② Properties Roster
A. The Price of the Investment Properties and the Investment Ratio(Unit: Millions of Yen)
Appraisal Value at the end of Twenty-sixth Fiscal Period

Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Amount on
Acquisition
the Balance
Price
Sheet
(Note 3)(Note 1)
(Note 2)

Direct Capitalization
MethodValue

Overall
Capitalization
Rate (%)

Discounted Cash Flow Method
Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-1

KDX Nihonbashi 313 Building

5,940

5,810

6,740

7,000

3.9

6,630

3.7

4.1

B

1.4

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,061

5,050

5,110

4.3

4,980

4.0

4.4

A

1.0

A-4

KDX Hatchobori Building

3,680

3,280

3,360

3,440

4.2

3,320

4.0

4.4

B

0.9

A-5

KDX Nakano-Sakaue Building

2,533

2,329

2,470

2,530

4.4

2,450

4.2

4.6

B

0.6

A-6

Harajuku F.F. Building

2,450

2,403

3,140

3,160

4.7

3,110

4.4

4.8

A

0.6

A-7

KDX Minami Aoyama Building

2,270

2,220

2,710

2,730

4.2

2,690

3.9

4.3

A

0.5

A-8

Kanda Kihara Building

1,950

1,775

1,680

1,740

4.2

1,660

4.0

4.4

B

0.4

A-13

KDX Kojimachi Building

5,950

5,507

4,980

5,010

3.8

4,940

3.5

3.9

A

1.4

A-14

KDX Funabashi Building

2,252

2,256

2,550

2,560

5.3

2,540

5.0

5.4

A

0.5

A-16

Toshin 24 Building

5,300

4,815

4,970

5,010

4.5

4,920

4.2

4.6

A

1.3

A-17

KDX Ebisu Building

4,640

4,382

5,080

5,100

4.1

5,060

3.7

4.2

A

1.1

A-19

KDX Hamamatsucho Building

3,460

3,059

3,400

3,510

3.9

3,350

3.7

4.1

B

0.8

A-20

KDX Kayabacho Building

2,780

2,685

2,660

2,670

4.5

2,640

4.1

4.6

A

0.6

A-21

KDX Shinbashi Building

3,728

3,737

4,750

4,800

3.8

4,700

3.5

3.9

A

0.9

A-22

KDX Shin-Yokohama Building

2,520

2,253

2,420

2,430

4.9

2,410

4.6

5.0

A

0.6

A-26

KDX Kiba Building

1,580

1,438

1,210

1,210

5.0

1,200

4.6

5.0

A

0.3

A-27

KDX Kajicho Building

2,350

2,247

2,260

2,330

4.3

2,230

4.1

4.5

B

0.5

A-29

KDX Higashi-Shinjuku Building

2,950

3,018

3,790

3,860

4.4

3,760

4.2

4.6

B

0.7

A-30

KDX Nishi-Gotanda Building

4,200

3,812

3,650

3,710

4.4

3,580

4.2

4.6

A

1.0

A-31

KDX Monzen-Nakacho Building

1,400

1,307

1,120

1,160

4.8

1,100

4.6

5.0

B

0.3

A-32

KDX Shiba-Daimon Building

6,090

5,974

5,020

5,060

4.3

4,980

4.0

4.4

A

1.4

A-33

KDX Okachimachi Building

2,000

2,027

2,020

2,070

4.3

2,000

4.1

4.5

B

0.4

A-34

KDX Hon-Atsugi Building

1,305

1,130

1,290

1,350

5.5

1,270

5.3

5.7

B

0.3

A-35

KDX Hachioji Building

1,155

1,221

1,120

1,110

5.2

1,120

5.0

5.4

B

0.2

A-37

KDX Ochanomizu Building

6,400

6,354

6,850

6,910

4.1

6,780

3.8

4.2

A

1.5

A-38

KDX Nishi-Shinjuku Building

1,500

1,517

1,450

1,460

4.5

1,440

4.2

4.6

A

0.3

A-41

KDX Shinjuku 286 Building

2,300

2,352

2,620

2,630

4.1

2,600

3.8

4.2

A

0.5

A-46

Hiei Kudan-Kita Building

7,600

7,449

7,900

8,100

3.9

7,820

3.7

4.1

B

1.8

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,512

3,100

3,110

4.9

3,090

4.4

5.0

A

0.9

A-51

KDX Hamacho Nakanohashi Building

2,310

2,248

1,970

1,980

4.5

1,950

4.2

4.6

A

0.5

A-55

Shin-toshin Maruzen Building

2,110

2,092

1,680

1,690

4.4

1,660

4.0

4.6

A

0.5

A-56

KDX Jimbocho Building

2,760

2,857

2,360

2,370

4.4

2,350

4.0

4.5

A

0.6

A-59

KDX Iwamoto-cho Building

1,864

1,648

1,510

1,520

4.5

1,500

4.2

4.6

A

0.4

A-60

KDX Harumi Building

10,250

8,804

8,470

8,530

4.2

8,400

3.8

4.2

A

2.5

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,233

2,200

2,260

3.8

2,170

3.6

4.0

B

0.5

A-62

Koishikawa TG Building

3,080

2,996

3,460

3,490

4.3

3,430

4.0

4.4

A

0.7

A-63

KDX Gotanda Building

2,620

2,701

3,210

3,230

4.5

3,180

4.2

4.6

A

0.6

A-64

KDX Nihonbashi 216 Building

2,010

1,840

2,200

2,220

4.0

2,180

3.7

4.1

A

0.4

A-66

KDX Shinjuku Building

6,800

6,860

8,810

8,890

3.7

8,720

3.4

3.8

A

1.6

A-67

KDX Ginza 1chome Building

4,300

4,180

5,710

5,860

3.6

5,640

3.4

3.8

B

1.0

A-68

KDX Nihonbashi Honcho Building

4,000

3,932

4,670

4,790

4.0

4,620

3.8

4.2

B

0.9

A-71

KDX Iidabashi Building

4,670

4,519

5,500

5,670

4.1

5,430

3.9

4.3

B

1.1

A-72

KDX Higashi-Shinagawa Building

4,590

4,721

4,490

4,600

4.2

4,440

4.0

4.4

B

1.1

A-73

KDX Hakozaki Building

2,710

2,682

3,300

3,360

4.4

3,280

4.2

4.6

B

0.6

A-74

KDX Shin-Nihonbashi Building

2,300

2,056

2,830

2,870

3.8

2,810

3.6

4.0

B

0.5

A-78

KDX Tachikawa Ekimae Building

1,267

1,326

1,650

1,650

5.1

1,640

4.8

5.2

A

0.3

- 34 -

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

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Amount on
Acquisition
the Balance
Price
Sheet
(Note 3)(Note 1)
(Note 2)

Direct Capitalization
MethodValue

Overall
Capitalization
Rate (%)

Discounted Cash Flow Method
Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-83

KDX Fuchu Building

6,120

5,875

7,930

8,010

4.8

7,890

4.6

5.0

B

1.5

A-84

KDX Kasuga Building

2,800

2,709

3,630

3,660

4.3

3,600

4.0

4.4

A

0.6

A-85

KDX Nakameguro Building

1,880

1,858

2,770

2,800

4.4

2,750

4.2

4.6

B

0.4

A-86

KDX Omiya Building

2,020

2,189

2,850

2,880

5.0

2,840

4.8

5.2

B

0.4

A-87

Itopia Nihonbashi SA Building

2,200

2,249

2,860

2,870

4.3

2,850

4.1

4.5

B

0.5

A-88

KDX Shinjuku 6-chome Building

1,900

1,881

3,030

3,090

4.3

3,000

4.1

4.5

B

0.4

A-89

KDX Takanawadai Building

5,250

5,550

6,170

6,230

4.3

6,110

4.0

4.4

A

1.2

A-90

KDX Ikebukuro Building

3,900

3,680

4,830

4,910

4.0

4,800

3.8

4.2

B

0.9

A-91

KDX Mita Building

3,180

3,139

3,460

3,480

4.2

3,430

3.9

4.3

A

0.7

A-92

KDX Akihabara Building

2,600

2,532

3,090

3,120

4.1

3,060

3.8

4.2

A

0.6

A-93

KDX Iidabashi Square

4,350

4,922

5,700

5,810

4.0

5,650

3.8

4.2

B

1.0

A-94

KDX Musashi-Kosugi Building

12,000

11,245

15,40015,5004.2

15,200

3.9

4.3

A

2.9

A-95

KDX Toyosu Grand Square

8,666

8,113

9,440

9,700

4.6

9,330

4.4

4.8

B

2.1

A-96

KDX Takadanobaba Building

3,650

3,617

4,330

4,380

4.4

4,310

4.1

4.6

B

0.8

A-99

KDX Ikebukuro West Building

1,934

2,023

2,090

2,130

4.3

2,070

4.1

4.5

B

0.4

A-101 KDX Yokohama Building

7,210

7,571

8,790

9,150

4.4

8,640

4.2

4.6

B

1.7

A-102 KDX Yokohama Nishiguchi Building

2,750

2,723

3,150

3,190

4.5

3,130

4.3

4.7

B

0.6

A-107 KDX Ginza East Building

3,600

3,617

3,740

3,760

4.2

3,710

3.9

4.3

A

0.8

A-108 Pentel Building

3,350

3,571

3,803

3,906

3.9

3,761

3.7

4.1

B

0.8

A-109 KDX Hamamatsucho Center Building

3,950

4,023

4,300

4,470

3.8

4,220

3.6

4.0

B

0.9

A-112 KDX Toranomon 1Chome Building

15,55015,528

17,10017,2003.5

16,900

3.2

3.6

A

3.8

KDX Shin-Nihonbashi Ekimae
A-113
Building

3,829

3,951

4,070

4,110

3.9

4,020

3.6

4.0

A

0.9

A-114 KDX Nihonbashi Edo-dori Building

1,350

1,379

1,440

1,460

4.3

1,420

4.0

4.4

A

0.3

A-115 ARK Mori Building

4,169

4,189

4,430

4,600

3.7

4,360

3.5

3.9

B

1.0

A-116 KDX Nishi-Shinbashi Building

8,400

8,435

9,070

9,390

3.5

8,930

3.3

3.7

B

2.0

A-117 BR Gotanda

2,200

2,313

2,400

2,440

4.4

2,350

4.0

4.6

A

0.5

KDX Shibuya Nanpeidai Building
A-119(Note 6)

3,500

3,575

3,710

3,880

3.6

3,630

3.2

3.8

B

0.8

A-120 KDX Yoyogi Building

2,479

2,442

2,210

2,210

4.7

2,210

4.2

4.8

A

0.6

A-121 Ginza 4chome Tower

9,800

9,566

13,60013,7003.3

13,400

3.0

3.4

A

2.4

A-122 Mitsubishijuko Yokohama Building

14,72014,77014,90015,2004.0

14,800

3.5

4.2

B

3.6

A-123 JN Building

9,500

9,851

9,860

10,200

4.2

9,710

4.0

4.4

B

2.3

A-12

Portus Center Building

5,570

4,016

5,080

5,130

5.6

5,060

5.4

5.8

B

1.3

A-42

KDX Karasuma Building

5,400

5,093

5,270

5,360

4.8

5,230

4.6

5.0

B

1.3

A-44

KDX Sendai Building

2,100

1,954

1,860

1,870

5.4

1,860

5.4

5.6

B

0.5

A-53

KDX Hakata-Minami Building

4,900

4,491

4,250

4,270

5.9

4,230

5.6

6.0

A

1.2

A-54

KDX Kitahama Building

2,220

2,062

1,620

1,620

5.3

1,610

4.8

5.4

A

0.5

A-58

KDX Nagoya Sakae Building

7,550

6,668

5,260

5,380

4.5

5,210

4.3

4.7

B

1.8

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,124

2,670

2,740

6.4

2,600

4.5

6.9

A

0.7

A-70

KDX Sapporo Building

2,005

1,931

2,490

2,600

4.9

2,440

4.7

5.1

B

0.4

A-79

KDX Nagoya Ekimae Building

7,327

8,013

9,420

9,490

4.2

9,350

3.9

4.3

A

1.7

A-82

KDX Higashi Umeda Building

2,770

2,467

3,660

3,740

4.4

3,630

4.2

4.6

B

0.6

A-97

KDX Utsunomiya Building

2,350

2,263

2,500

2,490

5.7

2,500

5.5

5.9

B

0.5

A-98

KDX Hiroshima Building

1,300

1,390

1,640

1,640

5.5

1,630

5.2

5.6

A

0.3

A-100 Senri Life Science Center Building

13,00012,772

13,50013,800

4.6

13,400

4.4

4.8

B

3.1

A-104 KDX Minami-Honmachi Building

2,200

2,058

2,940

2,960

4.5

2,920

4.2

4.6

A

0.5

A-106 KDX Sakura-dori Building

5,900

6,226

8,240

8,390

4.6

8,180

4.4

4.8

B

1.4

A-110 KDX Shin-Osaka Building

4,550

4,549

5,060

5,240

4.1

4,980

3.9

4.3

B

1.1

- 35 -

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

OfficeBuildings

Area

No.

Other
Regional
Areas

Property Name

A-111 KDX Nagoya Nichigin-mae Building

Value

Discounted Cash Flow Method

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)

3,508

4,120

4,160

4.3

4,070

4.0

4.4

A

0.8

1,800

1,810

1,960

2,070

4.8

1,910

4.6

5.0

B

0.4

394,455

384,155

429,073436,236-

424,661

-

-

-

96.8

9,900

9,179

11,100

11,2003.7

11,000

3.4

3.8

A

2.4

9,900

9,179

11,100

11,200-11,000

-

-

-

2.4

2,880

2,973

3,350

3,380

3.7

3,340

3.6

3.7

B

0.7

Subtotal of Others Property (1 property)

2,880

2,973

3,350

3,380

-

3,340

-

-

-

0.7

Total of 97 properties

407,235

396,308

443,523450,816-

439,001

-

-

-

100.0

A-118

KDX Sapporo Kitaguchi Building(Note 6)

Tokyo
Metropolitan
Area

C-1

Frame Jinnan-zaka

Subtotal of Central Urban Retail Properties (1 properties)
OthersDirect Capitalization
Method3,500

Subtotal of Office Buildings (95 properties)
CentralUrban
RetailProperties

Amount on
Acquisition
the Balance
Price
Sheet
(Note 3)(Note 1)
(Note 2)

Tokyo
Metropolitan
Area

D-2

Shinjuku 6chome Building (Land)

Note 1: Acquisition prices are the purchase prices for trust beneficiary interests or properties acquired by the Investment Corporation (excluding
acquisition costs, property tax, city planning tax, consumption tax, etc., rounded down to the nearest million yen.).
Note 2: Figures of less than 1 million are rounded down from the amounts on the balance sheet.
Note 3: Appraisal values at the end of 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 transcribed from valuation
reports prepared by Japan Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd.
Note 4: Appraisals of the properties were entrusted to two appraisers: Japan Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd. In the table,
the appraisers are referred to as “A” for Japan Real Estate Institute and “B” for Daiwa Real Estate Appraisal Co., Ltd.
Note 5: Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest firstdecimal place. The figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices ofproperties corresponding to each subtotal and total column by the total acquisition price of the entire assets (97 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-118

KDX Sapporo Kitaguchi Building

Takeyama White Building

February 1, 2018

A-119

KDX Shibuya Nanpeidai Building

Shibuya 1717 Building

April 1, 2018

- 36 -

Change of Date

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

B. Property Distribution
Distribution by Property TypesType

Number of
Properties

Acquisition Price(Millions of Yen)

Office Buildings

95

Central Urban Retail Properties
Others
Total

Ratio (Note)(%)

394,455

96.8

1

9,900

2.4

1

2,880

0.7

97

407,235

100.0

Geographic Distribution
Area

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note)(%)

Tokyo Metropolitan Area

79

329,923

81.0

Other Regional Areas

18

77,31218.9

97407,235

100.0

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

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note)(%)

Less than 1,000

-

-

-

1,000 - 2,500

34

66,51216.3

2,500 - 5,000

38

134,52933.0

5,000 - 7,500

13

79,25719.4

7,500 - 10,000

761,41615.0

10,000 - 12,500

222,2505.4

12,500 - 15,000

2

27,7206.8

15,000 - 17,500

1

15,5503.8

97407,235

100.0

Total

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

- 37 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

C. Details of Investment Real Estate and Trust Real Estate(a) Overview of Investment Real Estate Properties and Trust Real Estate
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Site Area(m2) (Note 1)

Usage(Note 2)

Total Floor Area(m2) (Note 3)

A-1

KDX Nihonbashi 313 Building

1,047.72

Offices

8,613.09

A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48

A-4

KDX Hatchobori Building

992.20

Offices

4,800.43

A-5

KDX Nakano-Sakaue Building

1,235.16

A-6

Harajuku F.F. Building

708.35

A-7

KDX Minami Aoyama Building

369.47

A-8

Kanda Kihara Building

410.18

Offices

2,393.94

A-13

KDX Kojimachi Building

612.17

Offices, Retail Shops

5,323.81

A-14

KDX Funabashi Building

1,180.41

Offices, Retail Shops

5,970.12
8,483.17

Offices, Retail Shops
Residence, Garage
Storage
Retail Shops, Offices
Parking
Offices, Retail Shops
Residence

6,399.42
3,812.44
1,926.98

A-16

Toshin 24 Building

1,287.16

Offices, Retail Shops
Parking

A-17

KDX Ebisu Building

724.22

Offices, Retail Shops

4,394.58
3,592.38
3,804.86

A-19

KDX Hamamatsucho Building

504.26

Offices, Retail Shops
Parking

A-20

KDX Kayabacho Building

617.17

Offices, Parking

A-21

KDX Shinbashi Building

536.11A-22

KDX Shin-Yokohama Building

705.00A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
7,885.40

Offices, Retail Shops
Parking
Offices, Retail Shops
Parking

3,960.22
6,180.51

A-29

KDX Higashi-Shinjuku Building

1,340.97

Offices
Storage, Parking

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87

A-31

KDX Monzen-Nakacho Building

580.99

Offices, Retail Shops

2,668.91

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00

A-34

KDX Hon-Atsugi Building

724.62

Offices, Retail Shops

3,603.63

A-35

KDX Hachioji Building

460.62A-37

KDX Ochanomizu Building

1,515.28

A-38

KDX Nishi-Shinjuku Building

626.06A-41

KDX Shinjuku 286 Building

Offices, Parking
Retail Shops
Offices, Storage
Retail Shops, Parking
Mechanical Room

2,821.21
7,720.08

Offices, Parking

2,017.63

421.70

Offices, Parking

3,432.04
11,425.31

A-46

Hiei Kudan-Kita Building

1,844.83

Offices, Retail Shops
Office Room
Parking, Storage

A-48

KDX Kawasaki-Ekimae Hon-cho Building

1,968.13

Offices

7,420.87

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41

A-55

Shin-toshin Maruzen Building

457.64

Offices, Retail Shops
Parking

3,439.37

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
1,618.65

A-59

KDX Iwamoto-cho Building

266.86

Offices
Residential Complex

A-60

KDX Harumi Building

2,230.69

Offices, Retail Shops

12,694.32

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90

A-62

Koishikawa TG Building

1,250.42 Offices, Clinic, Parking

5,862.02

A-63

KDX Gotanda Building

582.90

Offices, Garage

4,440.61

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62
10,348.02

A-66

KDX Shinjuku Building

1,118.12

Offices, Retail Shops
Parking

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

4,724.62

A-68

KDX Nihonbashi Honcho Building

583.40

Offices, Parking

5,110.45- 38 -

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

SRC
B2F9
SRC
B1F9
SRC・RC
B1F8April 1974

7.32

January 1987

3.71

June 1993

3.74

SRC
B1F11

August 1992

3.72

November 1985

5.88

November 1988

6.34

May 1993

4.26

May 1994

2.34

April 1989

4.17

September 1984

6.05

January 1992

7.35

September 1999

4.86

October 1987

4.25

February 1992

4.44

September 1990

6.88

October 1992

4.70

March 1990

7.11

January 1990

6.03

November 1992

8.29

September 1986

3.83

July 1986

4.58

June 1988

4.00

May 1995

6.38

December 1985

7.53

August 1982

5.93

October 1992

10.39

August 1989

5.92

March 1988

4.33

February 1985

4.71

September 1988

3.71

July 1990

5.99

May 1994

5.14

March 2008

5.00

February 2008

7.12

April 1992

3.78

November 1989

6.61

April 1988

8.30

October 2006

7.86

May 1993

2.01

November 1991

6.80

January 1984

4.48

SRC
F11
SRC
B1F9
SRC・RC・S
B1F8
SRC
B2F9
SRC
B1F8
SRC
B1F8
SRC
B1F7
S
F9
SRC
F8
SRC・S
B1F8
S
B1F9
RC
F5
SRC
B1F8
SRC
B1F9
SRC
B1F8
SRC
F8
SRC
B1F9
S
F10
SRC
F8
SRC
F9
SRC
B1F7
RC
F5
SRC・RC
B1F9
SRC・S
B1F11
SRC
B1F9
SRC
F9
SRC
B1F8
SRC
B1F8
S
F9
S・SRC
B1F11
S・SRC
B1F8
SRC
B1F8
SRC
B1F9
SRC
F9
S・RC
B4F11
SRC
F9
SRC
B1F9

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Site Area(m2) (Note 1)

Usage(Note 2)

Total Floor Area(m2) (Note 3)

A-71

KDX Iidabashi Building

967.38

Offices, Parking

5,422.64

A-72

KDX Higashi-Shinagawa Building

3,115.45

Offices

10,138.65

A-73

KDX Hakozaki Building

971.83

Offices, Parking

6,332.48
3,712.25

A-74

KDX Shin-Nihonbashi Building

444.32

Offices, Retail Shops
Parking

A-78

KDX Tachikawa Ekimae Building

464.95

Offices

2,896.48

A-83

KDX Fuchu Building

2,400.00

Offices, Parking

16,647.00
6,444.31
3,455.90

A-84

KDX Kasuga Building

1,319.24

Offices, Retail Shops
Parking

A-85

KDX Nakameguro Building

730.26

Offices

A-86

KDX Omiya Building

775.67A-87

Itopia Nihonbashi SA Building

1,193.91

A-88

KDX Shinjuku 6-chome Building

1,072.03

A-89

KDX Takanawadai Building

2,547.15

Offices, Retail Shops
Parking, Residence
Offices, Residence
Parking
Offices, Retail Shops,
Parking
OfficeOffices, Retail Shops
Parking
Offices, Retail Shops
Garage5,055.50
7,362.25
5,907.00
9,265.03

A-90

KDX Ikebukuro Building

472.94

3,848.18

A-91

KDX Mita Building

548.72

A-92

KDX Akihabara Building

374.88Retail Shops, Office2,979.14

A-93

KDX Iidabashi Square

1,341.98

Offices, Parking

6,764.37

A-94

KDX Musashi-Kosugi Building

3,210.09

Offices, Retail Shops

16,094.14

A-95

KDX Toyosu Grand Square

20,403.07

Offices, Retail Shops

63,419.60

A-96

KDX Takadanobaba Building

1,511.58

Offices, Parking

6,576.07

A-99

KDX Ikebukuro West Building

603.21

Offices, Retail Shops,
Parking

3,477.86

A-101

KDX Yokohama Building

2,499.38

Offices, Parking

15,894.75

A-102

KDX Yokohama Nishiguchi Building

1,029.45

Offices

6,556.59

A-107

KDX Ginza East Building

1,216.99

Offices, Parking

6,413.60

A-108

Pentel Building

2,502.63

Offices, Bank,
Residence

18,880.89

A-109

KDX Hamamatsucho Center Building

835.83

Offices, Garage

3,981.69
11,212.05

5,007.98

A-112

KDX Toranomon 1Chome Building

1,564.12

Offices, Retail Shops
Parking

A-113

KDX Shin-Nihonbashi Ekimae Building

531.64

Offices, Parking

4,254.07

A-114

KDX Nihonbashi Edo-dori Building

252.89

Offices, Retail Shops

1,722.17

A-115

ARK Mori Building

39,602.42

Offices

177,486.95

A-116

KDX Nishi-Shinbashi Building

1,406.56

Offices, Garage

8,851.60

A-117

BR Gotanda

914.80

Offices, Parking

7,395.72

A-119

KDX Shibuya Nanpeidai Building

1,276.02

Offices

2,832.58

A-120

KDX Yoyogi Building

228.74Retail Shops, Offices

1,269.06

A-121

Ginza 4chome Tower

Retail Shops, Offices,
688.52
Parking

6,787.33

A-122

Mitsubishijuko Yokohama Building

10,100.58

A-123

JN Building

Offices, Retail Shops

109,472.69

1,687.26

Offices, Parking

15,883.21
79,827.08

A-12

Portus Center Building

13,936.63

Offices, Retail Shops
Storage, Parking

A-42

KDX Karasuma Building

1,788.67

Offices

12,632.68

A-44

KDX Sendai Building

987.78

Offices

5,918.30

Offices, Retail Shops
Parking
Offices, Storage
Parking

A-53

KDX Hakata-Minami Building

1,826.25

A-54

KDX Kitahama Building

751.92

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retail Shops

9,594.00

A-69

KDX Kobayashi-Doshomachi Building(Note 7)

1,561.04

Offices, Garage
Retail Shops

10,723.83

A-70

KDX Sapporo Building

819.44

Offices

5,503.90- 39 -

13,238.16
4,652.96

Type of Structure(Note 4)
SRC
B1F8
S・RC
B1F5
SRC
B1F10
S
B1F10
S
B1F8
SRC・S
B1F14
SRC
B1F10
SRC
F7
①S・SRC B1F8
②S F3
SRC
B1F10
SRC・RC
B2F10
SRC
B1F9
S・RC
B1F10
S・SRC
B3F11
SRC
B1F9
SRC
B1F8
S
B1F11
S
F11
SRC・RC
B2F7
SRC
F10
SRC・S
B1F11
SRC
B1F9
SRC
B1F9
S・SRC
B3F14
SRC
F7
S・SRC
B1F11
SRC
B1F10
SRC
F8
RC・SRC・S
B4F37
SRC
B1F11
SRC・S
B2F11
S
F4
SRC
F8
S
B1F13
S・SRC
B2F34
S・SRC・RC
B2F14
SRC・S
B2F25
SRC
B1F8
SRC
B1F10
SRC
B1F9
S
F10
S
F11
S・SRC
B1F12
SRC
B1F9

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

March 1990

4.49

January 1993

5.13

November 1993

4.42

November 2002

3.42

February 1990

2.19

March 1996

1.83

June 1992

7.43

October 1985

6.50

April 1993

4.40

July 1995

3.64

March 1990

6.11

October 1985

6.17

March 2009

3.78

March 1993

4.81

December 1973

4.47

January 1994

4.48

May 2013

8.11

April 2008

3.84

October 1988

6.06

July 1988

4.45

March 1994

8.44

October 1988

7.59

August 1991

5.95

November 1990

6.22

December 1985

4.21

October 2013

7.93

May 1992

7.05

March 1985

4.55

March 1986

0.78

August 1992

5.99

September 1991

6.13

December 2003

7.64

August 1991

4.55

November 2008

5.23

February 1994

1.27

September 2007

3.28

September 1993

6.70

October 1982

3.88

February 1984

2.71

June 1973

0.93

July 1994

6.32

April 2009

1.12

July 2009

10.99

October 1989

0.41

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

No.
A-79

OfficeBuildings

Other
Regional
Areas

Property NameKDX Nagoya Ekimae Building

Other

Tokyo
Metropolitan
Area

Usage
(Note 2)

1,354.10

Total Floor Area(m2) (Note 3)

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

A-82

KDX Higashi Umeda Building

804.50A-97

KDX Utsunomiya Building

1,412.00

A-98

KDX Hiroshima Building

706.78 Offices, Parking Tower
Offices, Retail Shops
Parking
Offices, Retail Shops
GarageOffices, Retail Shops
Lounge, Storage
Offices, Parking
Retail Shops

13,380.30
6,805.76
7,742.18
5,718.83

Completion Date
(Note 5)

S・SRC
B2F15
S・SRC
B1F10
S・SRC
B1F10
SRC
B1F10
SRC・S
B3F21
S・RC
B1F12
S
B1F18
SRC
B1F11
S
B1F10
SRC・RC
B1F9
-

PML
(%)
(Note 6)

April 1986

8.98

July 2009

6.11

February 1999

0.98

January 1990

6.98

June 1992

1.34

December 2009

5.31

August 1992

10.49

May 1992

10.28

September 2006

9.67

September 1992

0.39

Avg. 23.5yrs-

Senri Life Science Center Building

5,911.08

A-104

KDX Minami-Honmachi Building

882.96A-106

KDX Sakura-dori Building

2,420.43

A-110

KDX Shin-Osaka Building

1,016.54

A-111

KDX Nagoya Nichigin-mae Building

732.14

Offices

5,862.22

A-118

KDX Sapporo Kitaguchi Building

782.69

Offices

4,639.44---

1,240.51

Retail Shops, Offices

6,302.58

S・RC・SRC
B2F7March 2005

6.80

-

-

-

-

Avg. 13.0yrs-

1,355.13

-

-

-

-

-

-

-

-

-

Avg. 23.2yrs

2.27

C-1

Frame Jinnan-zaka

Subtotal of Central Urban Retail Properties (1 properties)
Tokyo
Metropolitan
D-2
Shinjuku 6chome Building (Land)
Area
Subtotal of Others Property (1 property)
Total of 97 properties

49,260.78

Type of Structure(Note 4)A-100

Subtotal of Office Buildings (95 properties)
CentralUrban
RetailProperties

Site Area(m2) (Note 1)

7,694.03
19,680.16
7,987.35

Note 1: Site area data is based on figures recorded in the land register (including relevant figures for land leasehold, if any). Data may not match with theactual current status. In the case of buildings with compartmentalized ownership, the figure indicates the site area of the entire land subject to site
rights.
Note 2: Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of exclusively-owned area
is shown.
Note 3: Total floor area is based on figures recorded in the land register and does not include related structures. The total floor area for the entire building
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 thenumber 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 the number of floors:
SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level.
For example: B2F9: Two floors below ground level and nine floors above ground level.
Note 5: Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data are calculated using theweighted-average based on acquisition prices as of April 30, 2018, and are rounded down to the first decimal place.
Note 6: Probable Maximum Loss (PML) data is based on a survey provided by Sompo Risk Management & Health Care Inc. as of April 2018.
Note 7: KDX Kobayashi Doshomachi Building includes the fixed term land leasehold with a special agreement to transfer building.

- 40 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(b) Capital Expenditure① Planned capital expenditures
Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the twenty-seventh fiscal period (May 1, 2018 to
October 31, 2018) are as follows. Planned capital expenditure may include portions classified into expenses for accounting purposes as a result.
Planned Amount of Capital Expenditure(Millions of Yen)
Property Name
Total
Schedule
PurposePaid in the(Location)
AmountTotal
Fiscal Period
Previously
under Review
Paid
KDX Sakura-dori Building
May 2018
Upgrade of common area, etc.
207
(Nagoya, Aichi)
to October 2018
KDX Nishi-Shinbashi Building
Upgrade of common area, etc.
As above
138(Minato-ku, Tokyo)
KDX Shinjuku Building
Upgrade of common area, etc.
As above
115(Shinjuku-ku, Tokyo)
KDX Karasuma Building
Upgrade of common area, etc.
As above
77(Kyoto, Kyoto)
Toshin 24 Building
Upgrade of common area, etc.
As above72(Yokohama, Kanagawa)
KDX Takadanobaba Building
Upgrade of common area, etc.
As above66(Toshima-ku, Tokyo)
Senri Life Science Center Building
Renewal of air conditioning system,
As above
55(Toyonaka, Osaka)etc.
KDX Ginza East Building
Upgrade of elevators, etc.
As above
50(Chuo-ku, Tokyo)
KDX Nakano-Sakaue Building
Upgrade of elevators, etc..
As above
49(Nakano-ku, Tokyo)
KDX Ikebukuro West Building
Renewal of air conditioning system,
As above48(Toshima-ku, Tokyo)
etc.
KDX Shin-Yokohama Building
Upgrade of common area, etc.
As above
46(Yokohama, Kanagawa)
KDX Gotanda Building
Renewal of electrical substation
As above
28(Shinagawa-ku, Tokyo)
equipment, etc.
KDX Funabashi Building(Funabashi, Chiba)
KDX Nihonbashi Edo-dori(Chuo-ku, Tokyo)
KDX Hon-Atsugi Building

Roof waterproofing renovation, etc.

As above

25--

Upgrade of elevators, etc.

As above

17--

Renovation of external wall, etc.

As above

15--

Note: The planned amounts of capital expenditure are truncated at less than 1 million yen.
② Capital Expenditures during the Fiscal Period under Review (fiscal period ended April 30, 2018)
The Investment Corporation undertook the following major capital expenditures. In the fiscal period under review (fiscal period ended April 30,2018), the Investment Corporation completed works across its entire portfolio totaling 886 million yen. The total construction cost amounted to
1,653 million yen including 767 million yen for repairs, maintenance and renovation expenses in the fiscal period under review.
Property Name
(Location)
KDX Takanawadai Building(Minato-ku, Tokyo)
Senri Life Science Center Building(Toyonaka, Osaka)
KDX Shinjuku 286 Building(Shinjuku-ku, Tokyo)
KDX Funabashi Building(Funabashi, Chiba)
KDX Omiya Building(Omiya, Saitama)
Itopia Nihonbashi SA Building(Chuo-ku, Tokyo)
KDX Hachioji(Hachioji, Tokyo)

PurposeTerm

Amount of Capital Expenditures(Millions of Yen)

Renewal of air conditioning system, etc.

November 2017
to April 2018112

Renewal of air conditioning system, etc.

As above69

Upgrade of common area, etc.

As above

54

Upgrade of common area, etc.

As above

53

Upgrade of common area, etc.

As above

34

Renovation of external wall, etc.

As above23

Upgrade of common area, etc.

As above

23

Other
Portfolio Total
Note: The amounts of the capital expenditures are truncated at less than 1 million yen.
③ Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
Not Applicable- 41 -

516
886

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

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Total Leasable
Floor Area(m2)
(Note 1)

Total Leased
Floor Area(m2)
(Note 2)

No. ofNo. ofOccupancy Rental and Other
Tenant Leasehold andLeasable
LeasedNo. ofRate
Operating Revenues
Security Deposits
Residential Residential Tenants(%)(Thousands of Yen)
(Thousands of Yen)
Units
Units
(Note 5)(Note 6)(Note 7)(Note 8)(Note 3)(Note 4)A-1

KDX Nihonbashi 313 Building

5,777.19

5,777.19

-

-

15

100.0

195,418

262,728

A-3

Higashi-Kayabacho Yuraku Building

4,379.66

4,379.66

-

-

7

100.0

139,340

217,047

A-4

KDX Hatchobori Building

3,323.14

3,323.14

-

-

4

100.0

108,335

109,783

A-5

KDX Nakano-Sakaue Building

4,386.18

4,386.18

18

18

25

100.0

90,019107,057

A-6

Harajuku F.F. Building

3,071.15

3,071.15

-

-

2

100.0

103,104

141,704

A-7

KDX Minami Aoyama Building

1,815.19

1,815.19

-

-

8

100.0

83,07293,426

A-8

Kanda Kihara Building

1,948.02

1,948.02

-

-

10

100.0

49,82485,568

A-13

KDX Kojimachi Building

3,719.18

3,719.18

-

-

9

100.0

142,977

204,348

A-14

KDX Funabashi Building

3,846.03

3,846.03

-

-

20

100.0

101,704

140,788

A-16

Toshin 24 Building

6,621.19

5,983.86

-

-

19

90.4

162,020

237,641

A-17

KDX Ebisu Building

3,072.34

3,072.34

-

-

6

100.0

148,528

261,534

A-19

KDX Hamamatsucho Building

2,724.35

2,724.35

-

-

9

100.0

98,757

132,636

A-20

KDX Kayabacho Building

3,019.93

3,019.93

-

-

7

100.0

90,240105,878

A-21

KDX Shinbashi Building

2,803.79

2,803.79

-

-

8

100.0

130,355

224,693

A-22

KDX Shin-Yokohama Building

4,776.90

4,776.90

-

-

22

100.0

92,026

126,708

A-26

KDX Kiba Building

2,455.49

2,455.49

-

-

6

100.0

42,77961,342A-27

KDX Kajicho Building

2,564.79

2,564.79

-

-

10

100.0

73,56888,135A-29

KDX Higashi-Shinjuku Building

5,859.92

5,859.92

-

-

6

100.0

138,973

125,596

A-30

KDX Nishi-Gotanda Building

3,883.04

3,883.04

-

-

12

100.0

115,280

140,325

A-31

KDX Monzen-Nakacho Building

2,008.74

2,008.74

-

-

7

100.0

44,89147,451A-32

KDX Shiba-Daimon Building

5,997.36

5,997.36

-

-

9

100.0

164,483

227,688

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

2

100.0

67,404110,237

A-34

KDX Hon-Atsugi Building

2,747.65

2,322.86

-

-

13

84.5

42,71462,196A-35

KDX Hachioji Building

2,165.20

2,165.20

-

-

10

100.0

47,67856,738A-37

KDX Ochanomizu Building

5,891.49

5,891.49

-

-

8

100.0

198,659

267,211

A-38

KDX Nishi-Shinjuku Building

1,593.59

1,593.59

-

-

9

100.0

49,443

71,119A-41

KDX Shinjuku 286 Building

2,446.12

2,446.12

-

-

7

100.0

82,061

100,498

A-46

Hiei Kudan-Kita Building

6,908.84

6,733.77

-

-

13

97.5

271,244329,284

5,126.69

5,126.69

-

-

1

100.0

104,931

155,6222,238.01

2,238.01

-

-

9

100.0

69,40393,591

A-48
A-51

KDX Kawasaki-Ekimae Hon-cho
Building
KDX Hamacho Nakanohashi
Building

A-55

Shin-toshin Maruzen Building

1,912.25

1,912.25

-

-

6

100.0

46,16470,905A-56

KDX Jimbocho Building

2,323.44

2,323.44

-

-

6

100.0

62,49899,464A-59

KDX Iwamoto-cho Building

1,529.79

1,529.79

3

3

9

100.0

46,71161,543

A-60

KDX Harumi Building

9,294.00

9,294.00

-

-

11

100.0

228,396335,265

A-61

KDX Hamamatsucho Dai-2 Building

1,954.23

1,954.23

-

-

8

100.0

64,913

102,493

A-62

Koishikawa TG Building

3,937.42

3,937.42

-

-

4

100.0

128,612

156,671

A-63

KDX Gotanda Building

3,157.04

3,157.04

-

-

10

100.0

103,655

135,551

A-64

KDX Nihonbashi 216 Building

1,615.20

1,615.20

-

-

8

100.0

57,78197,938A-66

KDX Shinjuku Building

5,836.68

5,736.09

-

-

21

98.3

242,963324,612

A-67

KDX Ginza 1chome Building

3,573.59

3,573.59

-

-

4

100.0

149,181

189,816

A-68

KDX Nihonbashi Honcho Building

3,998.39

3,998.39

-

-

8

100.0

136,518

215,187

A-71

KDX Iidabashi Building

4,429.25

4,429.25

-

-

5

100.0

161,496242,500

A-72

KDX Higashi-Shinagawa Building

7,117.97

7,117.97

-

-

5

100.0

159,690

221,558

A-73

KDX Hakozaki Building

3,992.60

3,992.60

-

-

8

100.0

114,156

157,061

A-74

KDX Shin-Nihonbashi Building

2,658.79

2,658.79

-

-

8

100.0

88,265130,266

A-78

KDX Tachikawa Ekimae Building

1,612.13

1,612.13

-

-

5

100.0

65,67090,913A-83

KDX Fuchu Building

10,151.48

10,057.90

-

-

39

99.1

303,086

373,485

A-84

KDX Kasuga Building

4,345.13

4,345.13

-

-

14

100.0

126,663

150,693

A-85

KDX Nakameguro Building

2,726.69

2,726.69

-

-

5

100.0

89,187

143,742

A-86

KDX Omiya Building

3,814.00

3,814.00

1

1

18

100.0

117,141

186,348- 42 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property NameTokyo
Metropolitan
Area

OthersNo. ofNo. ofOccupancy Rental and Other
Tenant Leasehold andLeasable
LeasedNo. ofRate
Operating Revenues
Security Deposits
Residential Residential Tenants(%)(Thousands of Yen)
(Thousands of Yen)
Units
Units
(Note 5)(Note 6)(Note 7)(Note 8)(Note 3)(Note 4)Itopia Nihonbashi SA Building

3,106.42

3,106.42

8

8

14

100.0

99,821

121,990

A-88

KDX Shinjuku 6-chome Building

4,037.44

4,037.44

-

-

7

100.0

104,41288,091A-89

KDX Takanawadai Building

6,968.12

6,553.36

-

-

7

94.0

196,300

253,653

A-90

KDX Ikebukuro Building

3,110.71

3,110.71

-

-

10

100.0

139,549

208,888

A-91

KDX Mita Building

3,331.61

3,331.61

-

-

12

100.0

112,217

154,258

A-92

KDX Akihabara Building

2,289.27

2,289.27

-

-

7

100.0

84,66397,438A-93

KDX Iidabashi Square

4,571.92

4,571.92

-

-

7

100.0

186,170

288,839

A-94

KDX Musashi-Kosugi Building

12,978.52

12,978.52

-

-

9

100.0

438,998

661,244

A-95

KDX Toyosu Grand Square

11,797.85

11,557.40

-

-

13

98.0

314,842462,936

A-96

KDX Takadanobaba Building

4,595.34

4,595.34

-

-

11

100.0

141,198

166,457

A-99

KDX Ikebukuro West Building

2,553.96

2,553.96

-

-

7

100.0

73,17860,667

A-101 KDX Yokohama Building

10,932.45

10,932.45

-

-

26

100.0

285,912

337,929

A-102 KDX Yokohama Nishiguchi Building

4,981.07

4,981.07

-

-

14

100.0

123,307

163,381

A-107 KDX Ginza East Building

4,400.92

4,400.92

-

-

12

100.0

122,477

146,470

A-108 Pentel Building

4,346.66

4,346.66

5

5

9

100.0

125,296

170,435

A-109 KDX Hamamatsucho Center Building

3,052.73

3,052.73

-

-

8

100.0

107,446

132,946

A-112 KDX Toranomon 1Chome Building

8,179.00

8,179.00

-

-

4

100.0

413,292

664,950

KDX Shin-Nihonbashi Ekimae
A-113
Building

3,284.79

3,284.79

-

-

11

100.0

120,156

146,526

A-114 KDX Nihonbashi Edo-dori Building

1,505.28

1,505.28

-

-

8

100.0

37,48847,124100.0

N / A (Note 10)

N / A (Note 10)

A-115 ARK Mori Building

2,442.60

2,442.60-

1(Note 9)A-116 KDX Nishi-Shinbashi Building

5,734.79

5,734.79

-

-

9

100.0

216,243

289,766

A-117 BR Gotanda

3,504.75

3,504.75

-

-

6

100.0

100,244

116,830

A-119 KDX Shibuya Nanpeidai Building

2,205.16

2,205.16

-

-

1

100.0

87,571

68,607A-120 KDX Yoyogi Building

1,162.60

1,162.60

-

-

10

100.0

69,448105,715

A-121 Ginza 4chome Tower

5,624.23

5,624.23

-

-

4

100.0

302,036

349,198

A-122 Mitsubishijuko Yokohama Building

13,495.34

13,495.34

-

-

22

100.0

346,249

686,767

A-123 JN Building

10,074.79

9,344.46

-

-

5

92.8

141,712

195,277

A-12

Portus Center Building

11,582.42

11,582.42

-

-

30

100.0

296,821366,134

A-42

KDX Karasuma Building

8,743.96

8,743.96

-

-

40

100.0

209,872

297,017

A-44

KDX Sendai Building

3,962.23

3,962.23

-

-

32

100.0

95,504

180,397

A-53

KDX Hakata-Minami Building

10,082.71

10,035.06

-

-

52

99.5

191,489

256,708

A-54

KDX Kitahama Building

4,001.87

3,568.10

-

-

12

89.2

66,21585,814A-58

KDX Nagoya Sakae Building

6,923.12

6,923.12

-

-

16

100.0

184,977

223,746

A-69

KDX Kobayashi-Doshomachi
Building

7,072.23

7,072.23

-

-

11

100.0

188,850

253,052

A-70

KDX Sapporo Building

3,788.51

3,705.79

-

-

20

97.8

96,271

117,580

A-79

KDX Nagoya Ekimae Building

7,903.84

7,903.84

-

-

18

100.0

334,425

515,796

A-82

KDX Higashi Umeda Building

4,994.88

4,994.88

-

-

5

100.0

132,442

117,577

A-97

KDX Utsunomiya Building

5,306.77

4,720.55

-

-

23

89.0

125,704

128,370

A-98

KDX Hiroshima Building

3,994.52

3,994.52

-

-

22

100.0

76,429105,478

A-100 Senri Life Science Center Building

17,204.09

17,161.81

-

-

61

99.8

716,981

896,965

A-104 KDX Minami-Honmachi Building

5,285.95

5,220.29

-

-

20

98.8

106,551

157,224

A-106 KDX Sakura-dori Building

12,318.09

12,318.09

-

-

34

100.0

336,681454,341

A-110 KDX Shin-Osaka Building

5,979.39

5,979.39

-

-

17

100.0

149,628

165,780

A-111 KDX Nagoya Nichigin-mae Building

4,361.33

4,197.35

-

-

14

96.2

111,037

155,141

A-118 KDX Sapporo Kitaguchi Building

3,319.16

3,319.16

-

-

12

100.0

69,00773,042460,037.17

455,797.99

35

35

1,188

99.1

13,828,846

18,826,614

4,639.03

4,415.89

-

-

11

95.2

251,446

331,701

4,639.03

4,415.89

-

-

11

95.2

251,446

331,701

1,355.13

1,355.13

-

-

1

100.0

68,12856,770

C-1

Frame Jinnan-zaka

Subtotal of Central Urban Retail Properties (1 properties)
Tokyo
Metropolitan
Area

Total Leased
Floor Area(m2)
(Note 2)

A-87

Subtotal of Office Buildings (95 properties)
CentralUrban Retail
Properties

Total Leasable
Floor Area(m2)
(Note 1)

D-2

Shinjuku 6Chome Building (Land)- 43 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

No.

Total Leasable
Floor Area(m2)
(Note 1)

Property Name

Subtotal of Others Property (1 property)

Total Leased
Floor Area(m2)
(Note 2)

1,355.13

Total of 97 properties

466,0.31.33

1,355.13
461,569.01

No. ofNo. ofOccupancy Rental and Other
Tenant Leasehold andLeasable
LeasedNo. ofRate
Operating Revenues
Security Deposits
Residential Residential Tenants(%)(Thousands of Yen)
(Thousands of Yen)
Units
Units
(Note 5)(Note 6)(Note 7)(Note 8)(Note 3)(Note 4)

-

-

1

100.0

68,12856,770

35

1,200
35
(Note 11)99.0

14,148,421

19,215,086

Occupancy Rate over the Past Five Years
October 31, 2013
April 30, 2014
October 31, 2014
April 30, 2015
October 31, 2015
April 30, 2016
October 31, 2016
April 30, 2017
October 31, 2017
April 30, 2018

95.8%
96.0%
95.6%
96.5%
94.9%
96.9%
96.9%
97.9%
99.1%
99.0%

Note 1: Total leasable floor area refers to the leasable floor area for a building (aggregate total of the leasable floor area of each building in the case of
more than one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans,
etc. However, the indicated figure of rentable area for Pentel Building includes rentable area for land stated in the lease agreement. The indicatedfigure of rentable area for Shinjuku 6chome Building (Land) is rentable area stated in the land lease agreement.
Note 2: Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
Note 3: The number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential
purposes.
Note 4: The number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements withend tenants or sub-lease agreements are signed.
Note 5: The number of tenants refers to the actual number of end tenants for each property.
Note 6: Occupancy rate is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place.
Note 7: Rental and other operating revenues refers to the total amount of revenues generated during the fiscal period under review from real estate rental
operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
(Reference)
The Current Rental and Other Operating Revenues of the Properties Sold During the Fiscal Period Under Review
Rental and Other Operating Revenues
Type
No.
Property Name
(Thousands of Yen)
A-50
KDX Ikejiri-Oohashi Building
21,266
Office Buildings
A-103
KDX Shin-Yokohama 214 Building
28,052
Residence
B-19
Residence Charmante Tsukishima
24,358Note 8: Tenant leasehold and security deposits refer to the total of the balances of security deposits held (including net security deposits in the case of
discount) and guarantee deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest
thousand yen.
Note 9: We have concluded a rental guarantee (fixed-rent period: until December 1, 2018) building lease agreement and a property managementagreement (term of contract: to December 28, 2026) with Mori Building Co., Ltd., a master lessee, the total number of tenants is indicated as 1.
Note 10: Figures are not disclosed because the company that is a master lessee and a property manager has not given consent.
Note 11: The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.
(d) Information concerning major real estate properties
There were no major real estate properties with rental and other operating revenues exceeding 10% of total rental and other operating revenues for the
fiscal period under review (fiscal period ended April 30, 2018).
(e) Information concerning major tenants① Tenant which holds more than 10% of the total leased area: Not applicable② Reference: Major end tenants
Name of End Tenant

Property Name(As of April 30, 2018)
Leased Floor Percentage of Total Leased
Area (m2)
Floor Area (Note 1)
11,267.43
2.4%

1

Mitsubishi Heavy Industries, Ltd.

Mitsubishijuko Yokohama Building

2

N / A (Note 2)

KDX Kawasaki-Ekimae Hon-cho Building

5,126.69

1.1%

3

N / A (Note 2)

KDX Musashi-Kosugi Building, KDX Hiroshima Building

4,856.75

1.1%

4

ADK Arts Inc.

KDX Toranomon 1Chome Building

4,719.91

1.0%

5

JASTEC Co., Ltd.

KDX Takanawadai Building

4,312.83

0.9%

Subtotal

30,283.61

6.6%

Total Portfolio

461,569.01

100.0%

Note 1: Percentage of total leased floor area refers to the floor area leased to each end tenant as a proportion of total leased floor area. Figures arerounded to the nearest first decimal place.
Note 2: Not disclosed because the tenants have not given consents.

- 44 -

【Reference】

Earnings Performance for the Individual Properties for the 26th Fiscal Period (November 1, 2017 to April 30, 2018)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A001

Property NameKDX Nihonbashi
313 Building

Acquisition Date
Price Information

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

A003

A004

HigashiKDX Hatchobori
Kayabacho
Building
Yuraku Building※As of April 30, 2018

A005

A006

A007

A008

A013

A014

A016

A017

A019

A020

A021

KDX NakanoSakaue Building

Harajuku F.F.
Building

KDX Minami
Aoyama Building

Kanda Kihara
Building

KDX Kojimachi
Building

KDX Funabashi
Building

Toshin 24
Building

KDX Ebisu
Building

KDX
Hamamatsucho
Building

KDX Kayabacho
Building

KDX Shinbashi
Building

August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 November 1, 2005 March 1, 2006 May 1, 2006 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
5,300
4,640
3,460
2,780
3,728
1.5%
1.1%
0.9%
0.6%
0.6%
0.6%
0.5%
1.5%
0.6%
1.3%
1.1%
0.8%
0.7%
0.9%
5,810
4,061
3,280
2,329
2,403
2,220
1,775
5,507
2,256
4,815
4,382
3,059
2,685
3,737
6,740
5,050
3,360
2,470
3,140
2,710
1,680
4,980
2,550
4,970
5,080
3,400
2,660
4,750
1.5%
1.1%
0.8%
0.6%
0.7%
0.6%
0.4%
1.1%
0.6%
1.1%
1.1%
0.8%
0.6%
1.1%
15
7
4
25
2
8
10
9
20
19
6
9
7
8
5,777.19
4,379.66
3,323.14
4,386.18
3,071.15
1,815.19
1,948.02
3,719.18
3,846.03
6,621.19
3,072.34
2,724.35
3,019.93
2,803.79
5,777.19
4,379.66
3,323.14
4,386.18
3,071.15
1,815.19
1,948.02
3,719.18
3,846.03
5,983.86
3,072.34
2,724.35
3,019.93
2,803.79

Occupancy rate
Lease Information

As of April 30, 2018
As of October 31, 2017
As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
Operating periods

Profit and Loss Information for the 26th Fiscal Period①Rental and other operating revenues (thousands of yen)
Rental revenues
Other operating revenues②Property-related expenses (thousands of yen)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③NOI （＝①-②） (thousands of yen)
④Depreciation (thousands of yen)
⑤Rental operating income （＝③-④） (thousands of yen)
⑥Capital expenditures (thousands of yen)
⑦NCF （＝③-⑥） (thousands of yen)
Expense ratio （＝②／①）
Property tax for the year 2017 (thousands of yen)

Reference

Property management fee (Leasing management fees) of ② (thousands of yen)

Reference： Percentage of rental and other operating revenues

100.0%
100.0%
82.5%
94.6%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
195,418
177,666
17,75154,36915,912
20,786
12,413
4,079
223
953
141,048
28,361
112,686860
140,18827.8%
41,5726,866
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
139,340
122,958
16,382
34,794
12,633
9,017
9,073
2,382
153
1,533
104,545
26,97477,57010,05094,49525.0%
18,0354,977
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
93.1%
100.0%
100.0%
100.0%
181days
108,335
93,814
14,52032,342
10,983
8,663
6,905
4,877
136
777
75,992
19,65856,334
11,30564,68729.9%
17,3183,761
3.5%

100.0%
96.5%
98.3%
94.8%
91.7%
94.8%
96.5%
95.2%
100.0%
100.0%
181days
90,01975,644
14,374
36,104
9,160
7,617
7,409
8,960
169
2,787
53,914
16,62037,294
1,206
52,70840.1%
15,2342,937
3.3%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
103,104
96,080
7,023
28,128
6,535
8,079
4,720
6,669
103
2,020
74,975
10,986
63,9881,180
73,79527.3%
16,156
3,634
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
83,072
76,076
6,996
23,119
5,406
5,745
5,312
5,881
56
716
59,953
7,349
52,603
10,822
49,131
27.8%
11,491
2,918
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.2%
76.2%
88.0%
76.2%
181days
49,82445,338
4,485
16,526
4,973
4,057
3,777
1,835
60
1,822
33,297
8,442
24,854
3,524
29,773
33.2%
8,115
1,696
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
142,977
126,019
16,95840,3359,737
17,141
9,471
3,154
155
674
102,642
19,76882,873
102,64228.2%
34,2835,012
3.5%

100.0%
91.1%
100.0%
100.0%
100.0%
95.6%
99.8%
96.5%
100.0%
100.0%
181days
101,704
88,06013,643
55,83912,505
7,348
8,414
25,783170
1,617
45,86420,20425,65953,533△7,66954.9%
14,604
3,011
3.0%

90.4%
94.1%
97.1%
100.0%
100.0%
100.0%
97.4%
94.1%
94.4%
91.1%
181days
162,020
136,944
25,07558,691
13,845
12,621
14,176
16,864259
923
103,328
37,90265,426
10,481
92,84736.2%
24,6725,415
3.3%

100.0%
100.0%
100.0%
100.0%
83.4%
100.0%
100.0%
100.0%
100.0%
83.4%
181days
148,528
134,214
14,314
31,451
10,200
11,102
8,204
941
137
864
117,077
19,85897,218117,077
21.2%
22,2045,420
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
98,757
91,128
7,628
24,563
7,360
9,024
4,942
778
102
2,355
74,194
9,698
64,496
6,247
67,94624.9%
18,0493,529
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
84.9%
84.9%
84.9%
100.0%
181days
90,24081,4378,802
22,301
7,394
6,375
6,741
1,127
106
557
67,93817,411
50,526
67,93824.7%
12,7503,228
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
86.8%
100.0%
181days
130,355
122,032
8,322
39,5589,270
15,886
5,374
3,692
113
5,221
90,796
10,48080,3162,520
88,27630.3%
31,7724,513
3.5%

318,440
26,536

159,300
13,275

141,890
11,824

164,530
13,710204,340
17,02897,6708,139

79,020
6,585

161,000
13,416180,238
15,019309,328
25,777232,159
19,346

163,222
13,601

198,294
16,524

133,340
11,111Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yrs (thousands of yen)
Reference：Amount of yearly avg.

Properties are shown in order of property number with respect to each type and location.

- 45 -

【Reference】

Earnings Performance for the Individual Properties for the 26th Fiscal Period (November 1, 2017 to April 30, 2018)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A022

A026

A027

Property NameKDX ShinYokohama
Building

KDX Kiba
Building

KDX Kajicho
Building

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

July 3, 2006

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

Acquisition Date

May 1, 2006 June 20, 2006

Price Information

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

A029

A030

A031

A032

※As of April 30, 2018

A033

A034

A035

A037

A038

A041

A046

KDX
Okachimachi
Building

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX
Ochanomizu
Building

KDX NishiShinjuku Building

KDX Shinjuku
286 Building

Hiei Kudan-Kita
Building

April 2, 2007 April 2, 2007

June 1, 2007 February 1, 2008

2,520
0.6%
2,253
2,420
0.5%
22
4,776.90
4,776.90

1,580
0.4%
1,438
1,210
0.3%
6
2,455.49
2,455.49

2,350
0.6%
2,247
2,260
0.5%
10
2,564.79
2,564.79

2,950
0.7%
3,018
3,790
0.9%
6
5,859.92
5,859.92

4,200
1.0%
3,812
3,650
0.8%
12
3,883.04
3,883.04

1,400
0.3%
1,307
1,120
0.3%
7
2,008.74
2,008.74

6,090
1.5%
5,974
5,020
1.1%
9
5,997.36
5,997.36

2,000
0.5%
2,027
2,020
0.5%
2
1,792.54
1,792.54

1,305
0.3%
1,130
1,290
0.3%
13
2,747.65
2,322.86

1,155
0.3%
1,221
1,120
0.3%
10
2,165.20
2,165.20

6,400
1.6%
6,354
6,850
1.5%
8
5,891.49
5,891.49

1,500
0.4%
1,517
1,450
0.3%
9
1,593.59
1,593.59

2,300
0.6%
2,352
2,620
0.6%
7
2,446.12
2,446.12

7,600
1.9%
7,449
7,900
1.8%
13
6,908.84
6,733.77

100.0%
100.0%
99.6%
89.1%
78.7%
83.3%
87.2%
97.5%
94.1%
92.9%
181days
92,026
79,601
12,42529,310
8,494
6,356
8,120
5,445
165
726
62,71623,38839,32862,71631.8%
12,8423,158
3.4%

100.0%
100.0%
100.0%
88.1%
88.1%
76.1%
76.1%
88.1%
88.1%
100.0%
181days
42,77935,4287,350
19,363
4,626
4,720
4,653
3,995
77
1,289
23,415
11,973
11,441
23,415
45.3%
9,438
1,350
3.2%

100.0%
100.0%
100.0%
100.0%
100.0%
93.5%
97.5%
100.0%
100.0%
100.0%
181days
73,56865,4808,088
19,991
6,809
5,351
5,491
1,736
85
516
53,577
12,61440,963
1,680
51,89727.2%
10,7032,594
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
87.3%
87.3%
100.0%
100.0%
100.0%
181days
138,973
123,279
15,69353,54013,086
13,66912,821
10,840223
2,900
85,433
20,94364,48923,47961,95338.5%
27,3054,579
3.3%

100.0%
100.0%
100.0%
74.8%
47.4%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
115,280
96,70918,57031,877
9,128
9,038
9,999
3,172
164
375
83,402
29,26654,136
2,310
81,092
27.7%
18,0784,054
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
84.3%
100.0%
100.0%
100.0%
100.0%
181days
44,89136,147
8,744
14,420
4,273
3,107
5,506
1,361
72
99
30,4709,680
20,7896,961
23,509
32.1%
6,215
1,538
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
92.9%
181days
164,483
151,008
13,47549,782
13,965
11,482
12,442
8,977
191
2,723
114,701
31,351
83,34930,331
84,36930.3%
22,9655,697
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
67,40458,613
8,791
19,323
6,049
2,870
4,269
4,491
55
1,587
48,081
8,089
39,99248,081
28.7%
5,742
2,356
3.5%

84.5%
77.9%
100.0%
96.7%
96.7%
96.7%
94.3%
100.0%
100.0%
89.0%
181days
42,71435,3407,373
20,516
5,825
3,617
4,443
6,001
107
521
22,197
13,0679,129
22,197
48.0%
7,235
1,324
3.1%

100.0%
100.0%
90.1%
85.5%
85.5%
72.7%
72.7%
72.7%
100.0%
100.0%
181days
47,67838,871
8,807
29,451
4,526
4,048
4,321
15,86379612
18,226
11,272
6,954
23,164△4,938
61.8%
8,097
1,345
2.8%

100.0%
100.0%
90.2%
100.0%
96.4%
96.4%
100.0%
100.0%
100.0%
100.0%
181days
198,659
183,910
14,74854,43012,09215,013
12,195
12,647212
2,269
144,229
28,308
115,920
6,956
137,272
27.4%
30,0246,997
3.5%

100.0%
100.0%
87.8%
100.0%
100.0%
100.0%
100.0%
77.8%
100.0%
100.0%
181days
49,44344,316
5,126
14,246
4,850
4,311
3,486
1,359
62
177
35,196
7,052
28,144
3,349
31,846
28.8%
8,623
1,727
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
82,061
68,94913,11251,315
6,619
8,225
7,128
28,446
119776
30,745
10,092
20,652
54,101△23,356
62.5%
16,451
2,302
2.8%

97.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
271,244
232,112
39,132
96,392
31,88625,34815,941
15,306262
7,647
174,851
17,522
157,329
6,069
168,782
35.5%
50,696
9,104
3.4%

111,671
9,305

127,183
10,598

133,761
11,146

93,342
7,778

129,945
10,828136,390
11,365

323,620
26,96890,133
7,511

65,934
5,494

85,771
7,147

355,880
29,65645,5303,794

94,622
7,885

368,772
30,731

Occupancy rate
Lease Information

As of April 30, 2018
As of October 31, 2017
As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
Operating periods

Profit and Loss Information for the 26th Fiscal Period①Rental and other operating revenues (thousands of yen)
Rental revenues
Other operating revenues②Property-related expenses (thousands of yen)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③NOI （＝①-②） (thousands of yen)
④Depreciation (thousands of yen)
⑤Rental operating income （＝③-④） (thousands of yen)
⑥Capital expenditures (thousands of yen)
⑦NCF （＝③-⑥） (thousands of yen)
Expense ratio （＝②／①）
Property tax for the year 2017 (thousands of yen)

Reference

Property management fee (Leasing management fees) of ② (thousands of yen)

Reference： Percentage of rental and other operating revenues

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

- 46 -

【Reference】

Earnings Performance for the Individual Properties for the 26th Fiscal Period (November 1, 2017 to April 30, 2018)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A048

A051

A055

A056

A059

A060

Property NameKDX KawasakiEkimae Hon-cho
Building

KDX Hamacho
Nakanohashi
Building

Shin-toshin
Maruzen Building

KDX Jimbocho
Building

KDX Iwamotocho Building

KDX Harumi
Building

Acquisition Date

February 1, 2008 February 1, 2008 February 29, 2008 March 31, 2008 May 1, 2008

Price Information

Acquisition price (millions of yen)
Percentage of total portfolio
Net book value (millions of yen)Appraisal value at the end of period (millions of yen)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)June 30, 2008

A061

A062

A063

※As of April 30, 2018

A064

A066

A067

A068

KDX
Koishikawa TG
KDX Gotanda KDX Nihonbashi KDX Shinjuku
KDX Ginza
KDX Nihonbashi
Hamamatsucho
Building
Building
216 Building
Building
1chome Building Honcho Building
Dai-2 Building
September 1, 2008 November 18, 2009 November 18, 2009 December 1, 2009 February 18, 2010 November 12, 2010 November 12, 2010

A071
KDX Iidabashi
Building

July 22, 2011

3,760
0.9%
3,512
3,100
0.7%
1
5,126.69
5,126.69

2,310
0.6%
2,248
1,970
0.4%
9
2,238.01
2,238.01

2,110
0.5%
2,092
1,680
0.4%
6
1,912.25
1,912.25

2,760
0.7%
2,857
2,360
0.5%
6
2,323.44
2,323.44

1,864
0.5%
1,648
1,510
0.3%
9
1,529.79
1,529.79

10,250
2.5%
8,804
8,470
1.9%
11
9,294.00
9,294.00

2,200
0.5%
2,233
2,200
0.5%
8
1,954.23
1,954.23

3,080
0.8%
2,996
3,460
0.8%
4
3,937.42
3,937.42

2,620
0.6%
2,701
3,210
0.7%
10
3,157.04
3,157.04

2,010
0.5%
1,840
2,200
0.5%
8
1,615.20
1,615.20

6,800
1.7%
6,860
8,810
2.0%
21
5,836.68
5,736.09

4,300
1.1%
4,180
5,710
1.3%
4
3,573.59
3,573.59

4,000
1.0%
3,932
4,670
1.1%
8
3,998.39
3,998.39

4,670
1.1%
4,519
5,500
1.2%
5
4,429.25
4,429.25

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
104,931
93,427
11,50341,097
13,100
7,323
10,116
9,391
167
997
63,83434,066
29,767
63,83439.2%
14,5273,444
3.3%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.3%
88.3%
100.0%
100.0%
181days
69,40356,496
12,906
18,600
7,148
5,474
5,065
246
89
575
50,803
13,10937,693
19,72031,08326.8%
10,9492,453
3.5%

100.0%
83.1%
64.2%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
46,16439,744
6,419
31,209
5,607
4,641
3,558
14,40462
2,934
14,954
8,242
6,712
14,961
△6
67.6%
9,276
1,247
2.7%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
62,49854,857
7,640
18,417
5,080
6,820
5,063
1,184
71
196
44,08010,17033,90944,08029.5%
13,6432,175
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
46,711
43,591
3,120
9,960
3,758
2,991
2,332
599
40
237
36,751
13,164
23,58736,751
21.3%
5,985
1,703
3.6%

100.0%
100.0%
94.0%
93.2%
93.2%
100.0%
100.0%
90.7%
72.2%
71.2%
181days
228,396
194,268
34,127
88,11532,997
17,93031,143
3,734
314
1,995
140,280
78,20462,076
1,325
138,955
38.6%
35,861
7,524
3.3%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
87.5%
181days
64,91357,066
7,847
18,007
4,784
7,994
3,784
971
59
412
46,906
5,182
41,723
46,90627.7%
15,9882,282
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
128,612
107,662
20,95038,917
14,194
9,973
13,278420
158
891
89,695
15,322
74,372
11,36578,33030.3%
19,9394,455
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
88.5%
100.0%
100.0%
100.0%
100.0%
181days
103,655
93,7989,856
34,318
8,563
8,631
7,310
6,757
121
2,934
69,336
14,62254,714
4,632
64,70433.1%
17,2633,530
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
57,78153,3694,412
14,664
5,222
4,520
2,888
637
55
1,340
43,116
11,421
31,694
43,116
25.4%
9,040
2,059
3.6%

98.3%
96.4%
95.5%
100.0%
98.3%
100.0%
88.3%
91.8%
88.4%
88.3%
181days
242,963
209,679
33,284
103,177
21,82527,62018,64332,406281
2,401
139,785
20,411
119,374
13,277
126,50742.5%
55,2337,811
3.2%

100.0%
100.0%
100.0%
98.2%
98.2%
65.4%
100.0%
100.0%
100.0%
100.0%
181days
149,181
140,984
8,196
36,200
9,697
12,682
7,119
3,057
132
3,510
112,980
11,946
101,033
112,980
24.3%
25,3655,350
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
136,518
128,100
8,417
34,107
9,619
14,558
6,658
1,870
130
1,269
102,410
10,69591,715
8,987
93,42325.0%
29,1144,876
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
86.6%
86.6%
100.0%
100.0%
181days
161,496
143,990
17,50545,212
11,023
10,573
16,206
6,346
152
910
116,283
16,29999,984116,283
28.0%
21,147
5,668
3.5%

109,804
9,150

132,997
11,08353,352
4,446

51,1294,260

45,665
3,805

242,493
20,20775,2206,268

297,050
24,754140,280
11,69075,9506,329

347,300
28,941

103,230
8,602

172,940
14,411

204,780
17,065

Occupancy rate
Lease Information

As of April 30, 2018
As of October 31, 2017
As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
Operating periods

Profit and Loss Information for the 26th Fiscal Period①Rental and other operating revenues (thousands of yen)
Rental revenues
Other operating revenues②Property-related expenses (thousands of yen)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③NOI （＝①-②） (thousands of yen)
④Depreciation (thousands of yen)
⑤Rental operating income （＝③-④） (thousands of yen)
⑥Capital expenditures (thousands of yen)
⑦NCF （＝③-⑥） (thousands of yen)
Expense ratio （＝②／①）
Property tax for the year 2017 (thousands of yen)

Reference

Property management fee (Leasing management fees) of ② (thousands of yen)

Reference： Percentage of rental and other operating revenues

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

- 47 -

【Reference】

Earnings Performance for the Individual Properties for the 26th Fiscal Period (November 1, 2017 to April 30, 2018)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A072

A073

A074

A078

A083

A084

A085

A086

Property Name

KDX HigashiShinagawa
Building

KDX Hakozaki
Building

KDX ShinNihonbashi
Building

KDX Tachikawa
Ekimae Building

KDX Fuchu
Building

KDX Kasuga
Building

KDX
Nakameguro
Building

KDX Omiya
Building

Acquisition Date

July 22, 2011 July 22, 2011 July 22, 2011

Price Information

Acquisition price (millions of yen)
Percentage of total portfolio
Net book value (millions of yen)Appraisal value at the end of period (millions of yen)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)A087※As of April 30, 2018

A088

Itopia Nihonbashi KDX Shinjuku
SA Building
6-chome Building

A089

A090

A091

A092

KDX
Takanawadai
Building

KDX Ikebukuro
Building

KDX Mita
Building

KDX Akihabara
Building

December 26, 2011 September 21, 2012 September 21, 2012 September 21, 2012 March 26, 2013 August 19, 2013 September 13, 2013 November 19, 2013 November 18, 2013 November 18, 2013 November 19, 2013

4,590
1.1%
4,721
4,490
1.0%
5
7,117.97
7,117.97

2,710
0.7%
2,682
3,300
0.7%
8
3,992.60
3,992.60

2,300
0.6%
2,056
2,830
0.6%
8
2,658.79
2,658.79

1,267
0.3%
1,326
1,650
0.4%
5
1,612.13
1,612.13

6,120
1.5%
5,875
7,930
1.8%
39
10,151.48
10,057.90

2,800
0.7%
2,709
3,630
0.8%
14
4,345.13
4,345.13

1,880
0.5%
1,858
2,770
0.6%
5
2,726.69
2,726.69

2,020
0.5%
2,189
2,850
0.6%
18
3,814.00
3,814.00

2,200
0.5%
2,249
2,860
0.6%
14
3,106.42
3,106.42

1,900
0.5%
1,881
3,030
0.7%
7
4,037.44
4,037.44

5,250
1.3%
5,550
6,170
1.4%
7
6,968.12
6,553.36

3,900
1.0%
3,680
4,830
1.1%
10
3,110.71
3,110.71

3,180
0.8%
3,139
3,460
0.8%
12
3,331.61
3,331.61

2,600
0.6%
2,532
3,090
0.7%
7
2,289.27
2,289.27

100.0%
100.0%
100.0%
100.0%
88.4%
51.0%
73.5%
56.7%
76.7%
100.0%
181days
159,690
137,823
21,86650,20615,30016,12215,016
2,167
238
1,360
109,483
27,314
82,1697,226
102,257
31.4%
32,245
5,493
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.3%
78.6%
100.0%
181days
114,156
104,171
9,985
37,095
8,068
12,122
9,018
6,683
174
1,027
77,06023,50853,552
77,06032.5%
24,2453,902
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
88,26580,012
8,253
23,795
7,327
7,163
6,437
1,748
100
1,018
64,47022,22042,24964,47027.0%
14,3273,117
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
65,67056,592
9,077
19,006
5,232
7,215
4,342
1,363
75
777
46,663
4,983
41,6791,806
44,85728.9%
14,431
2,292
3.5%

99.1%
99.1%
88.6%
85.2%
98.6%
99.1%
99.1%
97.6%
97.6%
100.0%
181days
303,086
270,082
33,00496,001
29,237
24,82625,607
14,286515
1,528
207,085
43,653
163,431207,085
31.7%
49,652
10,411
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
97.4%
181days
126,663
113,806
12,85733,402
11,718
11,414
8,168
1,189
206
706
93,26019,422
73,837
93,26026.4%
22,8284,488
3.5%

100.0%
100.0%
100.0%
100.0%
85.5%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
89,18779,5639,624
29,552
6,951
5,595
3,841
9,969
125
3,070
59,635
9,835
49,7997,854
51,781
33.1%
11,191
3,037
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
93.8%
100.0%
100.0%
95.1%
181days
117,141
103,271
13,86958,2899,406
6,758
10,226
31,457139
301
58,851
14,521
44,32934,42324,42749.8%
13,521
3,591
3.1%

100.0%
100.0%
81.9%
97.0%
100.0%
100.0%
100.0%
98.0%
81.1%
100.0%
181days
99,82190,827
8,994
34,495
10,239
6,865
6,819
9,841
126
603
65,325
10,89254,43323,373
41,952
34.6%
13,7313,370
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
90.2%
100.0%
100.0%
100.0%
100.0%
181days
104,41287,631
16,78044,466
8,571
10,5099,256
14,909157
1,062
59,945
10,02049,925
5,691
54,25442.6%
21,018
3,354
3.2%

94.0%
94.0%
94.0%
94.0%
94.0%
100.0%
100.0%
100.0%
95.7%
181days
196,300
175,132
21,168108,061
14,343
18,476
13,31653,603254
8,067
88,23914,68273,556112,487△24,24855.0%
36,9525,806
3.0%

100.0%
100.0%
100.0%
90.3%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
139,549
126,901
12,64732,211
10,231
7,484
9,446
3,728
99
1,221
107,337
27,25880,079450
106,887
23.1%
14,9685,038
3.6%

100.0%
100.0%
100.0%
100.0%
90.6%
87.5%
95.6%
95.6%
88.4%
181days
112,217
93,25418,962
38,794
9,185
9,772
9,730
9,171
141
794
73,422
12,05661,36573,422
34.6%
19,5443,788
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
84,66379,351
5,312
24,095
5,424
3,448
5,120
9,088
85
928
60,568
11,26649,30160,568
28.5%
6,896
2,963
3.5%

216,520
18,043

169,820
14,151

151,090
12,59099,6108,300

415,708
34,642

246,516
20,543

177,359
14,779226,566
18,880113,555
9,462

148,568
12,380551,21345,93472,362
6,030

180,220
15,018117,070
9,755

Occupancy rate
Lease Information

As of April 30, 2018
As of October 31, 2017
As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
Operating periods

Profit and Loss Information for the 26th Fiscal Period①Rental and other operating revenues (thousands of yen)
Rental revenues
Other operating revenues②Property-related expenses (thousands of yen)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③NOI （＝①-②） (thousands of yen)
④Depreciation (thousands of yen)
⑤Rental operating income （＝③-④） (thousands of yen)
⑥Capital expenditures (thousands of yen)
⑦NCF （＝③-⑥） (thousands of yen)
Expense ratio （＝②／①）
Property tax for the year 2017 (thousands of yen)

Reference

Property management fee (Leasing management fees) of ② (thousands of yen)

Reference： Percentage of rental and other operating revenues

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

- 48 -

【Reference】

Earnings Performance for the Individual Properties for the 26th Fiscal Period (November 1, 2017 to April 30, 2018)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A093

A094

A095

A096

Property NameKDX Iidabashi
SquareKDX MusashiKosugi Building

KDX Toyosu
Grand Square

KDX
Takadanobaba
Building

Acquisition Date

January 10, 2014 March 20, 2014 May 30, 2014 May 30, 2014

Price Information

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

A099

A101

A102

A107

A108

※As of April 30, 2018

A109

A112

A113

A114

A115

KDX Yokohama
KDX
KDX
KDX
KDX
KDX
ARK Mori
Nishiguchi
Ginza East
Pentel Building
Hamamatsucho
Toranomon
Shin-Nihonbashi
Nihonbashi
Building
Building
Building
Center Building 1chome Building Ekimae Building Edo-dori Building
September 3, 2014 October 29, 2014 December 2, 2014 March 13, 2015 March 26, 2015 September 1, 2015 March 30, 2016 August 2, 2016 August 2, 2016 December 1, 2016
KDX Ikebukuro KDX YokohamaWest Building
Building

4,350
1.1%
4,922
5,700
1.3%
7
4,571.92
4,571.92

12,0002.9%
11,245
15,4003.5%
912,978.52
12,978.52

8,666
2.1%
8,113
9,440
2.1%
13
11,797.85
11,557.40

3,650
0.9%
3,617
4,330
1.0%
11
4,595.34
4,595.34

1,934
0.5%
2,023
2,090
0.5%
7
2,553.96
2,553.96

7,210
1.8%
7,571
8,790
2.0%
26
10,932.45
10,932.45

2,750
0.7%
2,723
3,150
0.7%
14
4,981.07
4,981.07

3,600
0.9%
3,617
3,740
0.8%
12
4,400.92
4,400.92

3,350
0.8%
3,571
3,803
0.9%
9
4,346.66
4,346.66

3,950
1.0%
4,023
4,300
1.0%
8
3,052.73
3,052.73

15,5503.8%
15,528
17,1003.9%
48,179.00
8,179.00

3,829
0.9%
3,951
4,070
0.9%
11
3,284.79
3,284.79

1,350
0.3%
1,379
1,440
0.3%
8
1,505.28
1,505.28

4,169
1.0%
4,189
4,430
1.0%
1
2,442.60
2,442.60

100.0%
100.0%
100.0%
93.6%
47.7%
0.0%
100.0%
100.0%
100.0%
181days
186,170
171,264
14,90541,93912,777
14,001
11,936
2,673
192
357
144,230
26,766
117,464
2,100
142,130
22.5%
27,9796,742
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
95.9%
181days
438,998
399,586
39,412
94,51736,346
27,64524,568
2,127
464
3,365
344,481
102,034
242,446
9,558
334,92321.5%
54,50015,989
3.6%

98.0%
98.0%
95.9%
98.0%
100.0%
80.8%
87.0%
87.0%
181days
314,842
265,488
49,35490,281
21,884
21,33028,142
6,954
415
11,554
224,560
78,392
146,168
7,904
216,65628.7%
42,6553,248
1.0%

100.0%
92.0%
100.0%
93.1%
93.1%
100.0%
100.0%
100.0%
181days
141,198
114,127
27,07040,41010,092
9,737
10,206
9,287
150
935
100,788
15,971
84,816
100,78828.6%
19,4744,938
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
81.2%
100.0%
181days
73,17862,747
10,43017,862
6,520
5,113
4,478
857
102
790
55,315
11,78743,52813,56841,74624.4%
10,1132,622
3.6%

100.0%
100.0%
97.5%
95.0%
98.5%
98.2%
100.0%
100.0%
181days
285,912
246,873
39,03981,00828,517
19,236
21,825
7,530
432
3,466
204,904
48,937
155,966
17,105
187,798
28.3%
38,04910,0163.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
123,307
106,568
16,73943,97011,837
10,38912,040
7,419
189
2,095
79,336
15,60863,72815,34963,98735.7%
20,6074,135
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
96.4%
181days
122,477
104,861
17,615
46,9709,128
10,437
9,990
16,564188
661
75,50613,99461,512
25,63149,87538.4%
20,8744,040
3.3%

100.0%
100.0%
100.0%
100.0%
94.9%
88.9%
100.0%
181days
125,296
121,096
4,200
53,34430,105
13,249
9,465
223
300
71,952
14,06657,886
17,45054,501
42.6%
26,5004,025
3.2%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
107,446
96,691
10,75527,077
9,424
7,816
5,082
1,344
120
3,288
80,3699,472
70,896
1,575
78,79425.2%
15,395
3,832
3.6%

100.0%
100.0%
100.0%
100.0%
100.0%
181days
413,292
390,864
22,42898,69432,61645,621
16,119
3,153
341
841
314,597
47,398267,199
3,675
310,92223.9%
91,243
14,8543.6%

100.0%
100.0%
100.0%
67.2%
181days
120,156
109,017
11,13931,978
8,755
12,737
7,471
2,363
101
549
88,178
11,10877,0695,247
82,931
26.6%
25,4744,251
3.5%

100.0%
100.0%
65.8%
73.7%
181days
37,48835,483
2,004
13,170
2,884
3,310
2,420
3,323
39
1,193
24,317
3,404
20,913
7,050
17,267
35.1%
6,620
1,261
3.4%

100.0%
100.0%
100.0%
181days

384,169
32,014140,030
11,669708,370
59,030213,71117,809187,542
15,628647,152
53,929213,177
17,764

242,059
20,171

288,245
24,020169,148
14,095

118,382
9,865

231,210
19,267

92,9607,746

Occupancy rate
Lease Information

As of April 30, 2018
As of October 31, 2017
As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
Operating periods

Profit and Loss Information for the 26th Fiscal Period①Rental and other operating revenues (thousands of yen)
Rental revenues
Other operating revenues②Property-related expenses (thousands of yen)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③NOI （＝①-②） (thousands of yen)
④Depreciation (thousands of yen)
⑤Rental operating income （＝③-④） (thousands of yen)
⑥Capital expenditures (thousands of yen)
⑦NCF （＝③-⑥） (thousands of yen)
Expense ratio （＝②／①）
Property tax for the year 2017 (thousands of yen)

Reference

Property management fee (Leasing management fees) of ② (thousands of yen)

Reference： Percentage of rental and other operating revenues（Note）（Note）

76,206
4,309
71,897
2,812
73,394（Note）
16,301（Note）

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

Note： Figures are not disclosed because the company that is the master lessee and the property manager has not given consent.

- 49 -

137,750
11,479【Reference】

Earnings Performance for the Individual Properties for the 26th Fiscal Period (November 1, 2017 to April 30, 2018)：181days

Type

Office Buildings

Location

Tokyo Metropolitan Area

Other Regional Areas

Property No.

A116

A117

A119

A120

Property Name

KDX
Nishi-Shinbashi
Building

BR Gotanda

KDX Shibuya
Nanpeidai
Building

KDX Yoyogi
Building

Acquisition Date

February 1, 2017 April 5, 2017

Price Information

Acquisition price (millions of yen)
Percentage of total portfolio
Net book value (millions of yen)Appraisal value at the end of period (millions of yen)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)※As of April 30, 2018

A121

A122

A123

A012

A042

Mitsubishijuko
JN
Portus Center
KDX Karasuma
Yokohama
Building
Building
Building
Building
August 10, 2017 September 30, 2005 August 19, 2013 December 7, 2017 January 31, 2018 September 21, 2005 June 1, 2007
Ginza 4chome
Tower

A044

A053

A054

A058

KDX Sendai
Building

KDX HakataMinami Building

KDX Kitahama
Building

KDX Nagoya
Sakae Building

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

A069
KDX KobayashiDoshomachi
Building
December 1, 2010

8,400
2.1%
8,435
9,070
2.0%
9
5,734.79
5,734.79

2,200
0.5%
2,313
2,400
0.5%
6
3,504.75
3,504.75

3,500
0.9%
3,575
3,710
0.8%
1
2,205.16
2,205.16

2,479
0.6%
2,442
2,210
0.5%
10
1,162.60
1,162.60

9,800
2.4%
9,566
13,6003.1%
45,624.23
5,624.23

14,7203.6%
14,77014,9003.4%
22
13,495.34
13,495.34

9,500
2.3%
9,851
9,860
2.2%
5
10,074.79
9,344.46

5,570
1.4%
4,016
5,080
1.1%
30
11,582.42
11,582.42

5,400
1.3%
5,093
5,270
1.2%
40
8,743.96
8,743.96

2,100
0.5%
1,954
1,860
0.4%
32
3,962.23
3,962.23

4,900
1.2%
4,491
4,250
1.0%
52
10,082.71
10,035.06

2,220
0.5%
2,062
1,620
0.4%
12
4,001.87
3,568.10

7,550
1.9%
6,668
5,260
1.2%
16
6,923.12
6,923.12

2,870
0.7%
2,124
2,670
0.6%
11
7,072.23
7,072.23

100.0%
100.0%
100.0%
181days
216,243
194,024
22,21843,04815,772
2
12,954
13,362
240
716
173,195
13,181160,013
2,782
170,41219.9%
34,2227,947
3.7%

100.0%
100.0%
100.0%
181days
100,244
76,521
23,72330,452
19,221
4,277
3,249
141
3,562
69,792
9,708
60,083
69,79230.4%
18,8563,470
3.5%

100.0%
100.0%
181days
87,571
72,842
14,72817,892
7,495
9,370
297
65
664
69,678
7,741
61,937
4,055
65,623
20.4%
16,4823,209
3.7%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
91.7%
100.0%
100.0%
100.0%
181days
69,44860,091
9,357
14,132
4,150
4,260
4,292
589
37
801
55,316
9,322
45,994
1,620
53,696
20.3%
8,521
2,546
3.7%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
302,036
267,453
34,58270,883
19,951
20,41822,318
7,266
201
727
231,152
35,418
195,733
3,148
228,003
23.5%
40,837
10,881
3.6%

100.0%
145days
346,249
321,697
24,552
95,482
31,02018,69543,461
542
568
1,192
250,767
33,066
217,700
250,767
27.6%
76,584
2,275
0.7%

92.8%
90days141,712125,585
16,127
26,973
14,822
6
9,293
1,674
216
961
114,739
37,38677,352
114,739
19.0%
53,4115,233
3.7%

100.0%
100.0%
100.0%
96.7%
97.3%
95.9%
94.9%
97.5%
96.5%
95.8%
181days
296,821250,455
46,365
117,708
69,561
22,30017,685
6,422
1,109
629
179,11252,442
126,670
179,11239.7%
43,852
9,712
3.3%

100.0%
96.7%
97.8%
100.0%
99.3%
99.2%
100.0%
100.0%
100.0%
94.3%
181days
209,872
183,536
26,33566,753
20,27822,116
17,304
4,391
377
2,284
143,118
31,145111,972
11,922
131,19631.8%
43,1177,203
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
96.4%
94.4%
91.9%
91.5%
181days
95,50480,41915,08432,995
11,310
6,792
9,681
3,166
173
1,872
62,50819,78442,723
5,487
57,021
34.5%
13,420
3,224
3.4%

99.5%
99.5%
95.2%
97.6%
97.5%
88.7%
94.7%
98.5%
95.8%
93.9%
181days
191,489
163,663
27,82655,917
15,268
10,32823,514
2,889
300
3,616
135,571
37,79097,781
10,655
124,916
29.2%
20,198
6,674
3.5%

89.2%
89.2%
89.2%
89.3%
89.3%
92.8%
92.8%
92.8%
92.8%
92.8%
181days
66,21554,774
11,44037,255
6,842
4,398
8,143
12,398113
5,359
28,95913,736
15,223
7,297
21,662
56.3%
8,866
1,942
2.9%

100.0%
100.0%
100.0%
96.6%
100.0%
100.0%
100.0%
99.3%
100.0%
100.0%
181days
184,977
166,105
18,87154,537
18,126
19,97914,925993
246
266
130,439
72,37058,06911,010
119,42929.5%
39,4016,437
3.5%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
91.3%
100.0%
100.0%
181days
188,850
170,702
18,14894,906
15,682
11,372
14,482
4,417
273
48,67893,94453,59140,352
93,94450.3%
22,8135,771
3.1%

305,494
25,457

180,148
15,01257,2094,767

47,5203,960

197,767
16,480750,371
62,530124,369
10,364856,430
71,369375,354
31,279128,121
10,676

291,937
24,328

131,582
10,965

202,897
16,908

170,520
14,210Occupancy rate
Lease Information

As of April 30, 2018
As of October 31, 2017
As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
Operating periods

Profit and Loss Information for the 26th Fiscal Period①Rental and other operating revenues (thousands of yen)
Rental revenues
Other operating revenues②Property-related expenses (thousands of yen)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③NOI （＝①-②） (thousands of yen)
④Depreciation (thousands of yen)
⑤Rental operating income （＝③-④） (thousands of yen)
⑥Capital expenditures (thousands of yen)
⑦NCF （＝③-⑥） (thousands of yen)
Expense ratio （＝②／①）
Property tax for the year 2017 (thousands of yen)

Reference

Property management fee (Leasing management fees) of ② (thousands of yen)

Reference： Percentage of rental and other operating revenues

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

A058 KDX Nagoya Sakae Building: The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.
A069 KDX Kobayashi-Doshomachi Building: The rent for land to the land owner (Kobayashi Pharmaceutical Co., Ltd.) is stipulated according to specific terms
under the land lease agreement and the annual rent to be paid is 94.3 million yen until the end of August 2019.

- 50 -

【Reference】

Earnings Performance for the Individual Properties for the 26th Fiscal Period (November 1, 2017 to April 30, 2018)：181days

Type

Office Buildings

Location

Other Regional Areas

Central Urban
Other
RetailProperties

Property No.

A070

A079

Property NameKDX Sapporo
Building

KDX Nagoya
Ekimae Building

Acquisition Date
Price Information

Acquisition price (millions of yen)
Percentage of total portfolio
Net book value (millions of yen)Appraisal value at the end of period (millions of yen)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)※As of April 30, 2018

A082

A097

A098

A100

A104

A106

A110

A111

KDX MinamiKDXKDXKDX Nagoya
Honmachi
Sakura-doriShin-Osaka
Nichigin-mae
Building
Building
Building
Building
September 1, 2014 October 15, 2014 December 2, 2014 January 9, 2015 September 1, 2015 March 15, 2016

KDX Higashi KDX Utsunomiya KDX Hiroshima Senri Life Science
Umeda Building
Building
Building
Center Building

March 25, 2011 December 26, 2011 March 28, 2012 May 30, 2014
2,005
7,327
2,770
2,350
0.5%
1.8%
0.7%
0.6%
1,931
8,013
2,467
2,263
2,490
9,420
3,660
2,500
0.6%
2.1%
0.8%
0.6%
20
18
5
23
3,788.51
7,903.84
4,994.88
5,306.77
3,705.79
7,903.84
4,994.88
4,720.55

A118
KDX Sapporo
Kitaguchi
Building

Tokyo
Metropolitan
Area
C001

Tokyo
Metropolitan
Area
D002

Frame
Jinnan-zaka

Shinjuku 6chome
Building (Land)

Total of 97
Properties

July 20, 2017 August 1, 2005 April 18, 2014

1,300
0.3%
1,390
1,640
0.4%
22
3,994.52
3,994.52

13,0003.2%
12,772
13,5003.0%
61
17,204.09
17,161.81

2,200
0.5%
2,058
2,940
0.7%
20
5,285.95
5,220.29

5,900
1.4%
6,226
8,240
1.9%
34
12,318.09
12,318.09

4,550
1.1%
4,549
5,060
1.1%
17
5,979.39
5,979.39

3,500
0.9%
3,508
4,120
0.9%
14
4,361.33
4,197.35

1,800
0.4%
1,810
1,960
0.4%
12
3,319.16
3,319.16

9,900
2.4%
9,179
11,1002.5%
114,639.03
4,415.89

2,880
0.7%
2,973
3,350
0.8%
1
1,355.13
1,355.13

407,235
100.0%
396,308
443,523100.0%
1,200
466,031.33
461,569.01
99.0%
99.1%
97.9%
96.9%
96.9%
94.9%
96.5%
95.6%
96.0%
95.8%
178days ※14,148,421
12,288,653
1,859,768
4,645,875
1,348,300
1,131,361
1,098,795
760,010
19,081
288,326
9,502,545
2,271,398
7,231,147
886,7128,615,833
32.8%
2,420,573
457,788
3.2%

Occupancy rate
Lease Information

As of April 30, 2018
As of October 31, 2017
As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
Operating periods

Profit and Loss Information for the 26th Fiscal Period①Rental and other operating revenues (thousands of yen)
Rental revenues
Other operating revenues②Property-related expenses (thousands of yen)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③NOI （＝①-②） (thousands of yen)
④Depreciation (thousands of yen)
⑤Rental operating income （＝③-④） (thousands of yen)
⑥Capital expenditures (thousands of yen)
⑦NCF （＝③-⑥） (thousands of yen)
Expense ratio （＝②／①）
Property tax for the year 2017 (thousands of yen)

Reference

Property management fee (Leasing management fees) of ② (thousands of yen)

Reference： Percentage of rental and other operating revenues

97.8%
100.0%
92.9%
100.0%
100.0%
100.0%
100.0%
95.6%
97.8%
89.8%
181days
96,271
78,831
17,44046,4889,439
8,949
15,396
10,216155
2,331
49,783
17,43932,343690
49,09348.3%
17,6112,980
3.1%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.0%
99.0%
100.0%
100.0%
181days
334,425
287,326
47,098117,463
31,45239,515
26,207
18,696384
1,207
216,961
45,510171,451
31,479185,48235.1%
76,482
11,2523.4%

100.0%
95.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
132,442
111,253
21,18849,608
9,485
12,07816,128
8,820
198
2,897
82,83335,40647,427
82,833
37.5%
23,863
4,393
3.3%

89.0%
100.0%
100.0%
100.0%
100.0%
100.0%
98.5%
97.0%
181days
125,704
109,847
15,85742,434
15,293
8,598
10,289
6,519
206
1,526
83,27028,051
55,21883,27033.8%
17,2274,264
3.4%

100.0%
100.0%
100.0%
90.5%
90.5%
82.3%
74.0%
73.3%
181days
76,42962,51813,91024,663
8,456
6,766
6,810
2,247
147
235
51,765
13,73638,028480
51,28532.3%
13,533
2,616
3.4%

99.8%
99.8%
99.8%
83.3%
95.7%
97.3%
99.0%
99.3%
181days
716,981437,141
279,839
364,364
82,28860,66887,76865,986
1,306
66,346352,617
123,471229,145
69,142
283,47450.8%
121,326
20,5422.9%

98.8%
100.0%
93.5%
92.5%
100.0%
100.0%
98.8%
181days
106,551
90,053
16,49736,718
10,602
12,571
11,181
1,071
199
1,092
69,832
23,95445,878
1,984
67,84834.5%
24,7933,599
3.4%

100.0%
100.0%
98.3%
99.1%
98.2%
94.6%
89.9%
181days
336,681
287,523
49,158125,215
49,02736,67526,016
10,519542
2,434
211,465
39,168172,297
42,901
168,56337.2%
72,377
11,1863.3%

100.0%
100.0%
100.0%
100.0%
100.0%
96.6%
181days
149,628
130,532
19,09555,656
12,83012,412
10,456
15,484221
4,251
93,971
21,036
72,934
3,885
90,08637.2%
24,474
4,971
3.3%

96.2%
100.0%
94.6%
92.2%
89.5%
181days
111,037
97,633
13,404
33,123
9,017
8,959
6,890
3,095
145
5,016
77,913
26,772
51,1409,085
68,82829.8%
17,5463,856
3.5%

100.0%
100.0%
181days
69,00759,314
9,693
25,722
9,031
3,258
11,646
334
112
1,338
43,285
7,445
35,839980
42,30537.3%
12,744
2,291
3.3%

95.2%
96.5%
96.5%
100.0%
95.5%
95.2%
98.0%
93.6%
96.3%
100.0%
181days
251,446
215,641
35,804
83,045
17,447
15,402
16,733
22,917155
10,389168,401
56,620111,780
1,360
167,04033.0%
30,8058,568
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
181days
68,12868,124
4
6,116
5,916
200
62,01162,01162,011
9.0%
11,8330.0%

202,570
16,880527,61043,967

219,680
18,306

312,190
26,015

195,898
16,324

1,489,569
124,130

111,951
9,329

580,570
48,380274,671
22,889132,296
11,024

120,720
10,060141,540
11,795-Long-term repairs, maintenance and renovation
Estimated amount of 1st yr to 12th yrs (thousands of yen)
Reference：Amount of yearly avg.

21,546,581
1,795,548*Total: Cost-weighted average management period (days)- 51 -

【Reference】

Earnings Performance for the Individual Properties for the 26th Fiscal Period (November 1, 2017 to April 30, 2018)：181days

Type

Office Buildings

Residential
PropertyTokyo
Metropolitan
Area
B019

Tokyo Metropolitan Area

Location
Property No.

A050

A103

KDX ShinYokohama 214
Building
February 1, 2008 December 2, 2014
KDX IkejiriOohashi Building

Property Name
Acquisition Date
Price Information

Acquisition price (millions of yen)
Percentage of total portfolio
Revenue from sale of the investment property (millions of yen)

Costs of the investment property (millions of yen)
Gain / Loss on sale of real estate (millions of yen)
Number of tenants
Leasable floor area (㎡)Leased floor area （㎡)Total 3
Properties
Sold

Total of 100
Properties

Residence
Charmante
Tsukishima

May 1, 2006

2,400
24.1%
2,400
2,353
11
-

2,200
22.1%
2,430
2,221
152
-

5,353
53.8%
4,900
4,481
386
-

9,953
100.0%
9,730
9,056
550
-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
63.6%
91.3%
91.3%
57days21,266
17,224
4,041
11,370
1,805
6,126
1,475
1,685
38
239
9,895
3,965
5,929
9,895
53.5%
635
3.0%

100.0%
96.3%
95.6%
95.6%
83.0%
96.3%
57days
28,052
23,842
4,210
9,818
2,604
2,863
2,250
1,713
92
294
18,234
4,479
13,754
18,234
35.0%
944
3.4%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
30days
24,35822,0102,347
15,625
2,579
8,403
147
3,664
106
724
8,733
15,465△6,732
8,733
64.1%
579
2.4%

42days73,677
63,077
10,59936,814
6,989
17,393
3,873
7,063
236
1,258
36,862
23,91012,95236,862
50.0%
2,160
2.9%

-

-

-

-

417,188-

Occupancy rate
Lease Information

As of April 30, 2018
As of October 31, 2017
As of April 30, 2017
As of October 31, 2016
As of April 30, 2016
As of October 31, 2015
As of April 30, 2015
As of October 31, 2014
As of April 30, 2014
As of October 31, 2013
Operating periods

Profit and Loss Information for the 26th Fiscal Period①Rental and other operating revenues (thousands of yen)
Rental revenues
Other operating revenues②Property-related expenses (thousands of yen)
Property management fees
Taxes
Utilities
Repairs and maintenance costs
Insurance
Trust fees and other expenses③NOI （＝①-②） (thousands of yen)
④Depreciation (thousands of yen)
⑤Rental operating income （＝③-④） (thousands of yen)
⑥Capital expenditures (thousands of yen)
⑦NCF （＝③-⑥） (thousands of yen)
Expense ratio （＝②／①）
Property tax for the year 2017 (thousands of yen)

Reference

Property management fee (Leasing management fees ) of ② (thousands of yen)

Reference： Percentage of rental and other operating revenues

174days *Total: Cost-weighted average management period (days)
14,222,098
12,351,730
1,870,367
4,682,689
1,355,289
1,148,754
1,102,668
767,074
19,318289,585
9,539,408
2,295,308
7,244,099
886,7128,652,695
32.9%
459,948
3.2%

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

KDX Ikejiri-Oohashi Building (A057) and KDX Shin-Yokohama 214 Building(A103) were sold on December 28, 2017.
Residence Charmante Tsukishima (B019) was sold on December 1, 2017.

- 52 --※As of April 30, 2018

(Reference) Status of Borrowings
Borrowings as of April 30, 2018 are as follows.
Classification
Short-Term Loans Payable
Current Portion of Long-Term Loans Payable
Long-Term Loans Payable

Drawndown Date

Balance at the
Beginning of
Period(Thousands of
Yen)

Balance at theEnd of Period(Thousands of
Yen)

Sumitomo Mitsui Banking Corporation
November 30, 2016
Development Bank of Japan Inc.
December 28, 2016
Mitsubishi UFJ Trust and Banking Corporation
January 31, 2017
Sumitomo Mitsui Banking Corporation
March 31, 2017
Sumitomo Mitsui Banking Corporation
July 31, 2017
Mizuho Bank, Ltd.
August 31, 2017
Sumitomo Mitsui Banking Corporation
November 30, 2017
Sumitomo Mitsui Trust Bank, Limited
January 31, 2018
MUFG Bank, Ltd(Note 4) January 31, 2018
Sumitomo Mitsui Banking Corporation
March 30, 2018
Sub Total
Development Bank of Japan Inc.
November 12, 2010
Development Bank of Japan Inc.
December 1, 2010
The Bank of Fukuoka, Ltd.
December 28, 2012
Mizuho Trust & Banking Co., Ltd.
(Note 6) December 28, 2012
Resona Bank, Limited
March 26, 2013
Sumitomo Mitsui Banking Corporation
March 26, 2013
Aozora Bank, Ltd.
March 12, 2014
Sumitomo Mitsui Trust Bank, Limited
January 16, 2017
Resona Bank, Limited
July 31, 2013
Sumitomo Mitsui Banking Corporation
August 19, 2013
Aozora Bank, Ltd.
August 19, 2013
Mizuho Trust & Banking Co., Ltd.
August 19, 2013
The Bank of Fukuoka, Ltd.
August 19, 2013
The Hiroshima Bank, Ltd.
August 19, 2013
The Nishi-Nippon City Bank, Ltd.
August 30, 2013
The 77 Bank, Ltd.
August 30, 2013
The Higashi-Nippon Bank, Limited
August 30, 2013
Aozora Bank, Ltd.
October 31, 2012
Resona Bank, Limited
October 31, 2013
MUFG Bank, Ltd(Note 4) October 31, 2016
Sumitomo Mitsui Trust Bank, Limited(Note 3) November 12, 2013
Mizuho Bank, Ltd.
(Note 3) November 29, 2013
Sumitomo Mitsui Banking Corporation(Note 3)
March 28, 2012
Development Bank of Japan Inc.
(Note 3)
March 28, 2012
Sumitomo Mitsui Trust Bank, Limited(Note 3)
March 12, 2014
Sumitomo Mitsui Trust Bank, Limited(Note 3)
March 31, 2014
Resona Bank, Limited(Note 3)
March 30, 2016
Sub Total
Development Bank of Japan Inc.
August 30, 2013
Aozora Bank, Ltd.
September 30, 2013
MUFG Bank, Ltd(Note 4) September 30, 2013
MUFG Bank, Ltd(Note 4) November 12, 2013
Aozora Bank, Ltd.
November 12, 2013
MUFG Bank, Ltd(Note 4) November 29, 2013
Aozora Bank, Ltd.
November 29, 2013
Sumitomo Mitsui Banking Corporation
January 10, 2014
Sumitomo Mitsui Banking Corporation
January 31, 2014
Sumitomo Mitsui Trust Bank, Limited
January 31, 2014
Sumitomo Mitsui Banking Corporation
March 12, 2014
Development Bank of Japan Inc.
March 12, 2014
Sumitomo Mitsui Banking Corporation
March 20, 2014
MUFG Bank, Ltd(Note 4)
March 20, 2014
Development Bank of Japan Inc.
March 20, 2014
Development Bank of Japan Inc.
March 20, 2014
Sumitomo Mitsui Banking Corporation
April 22, 2014
The Hiroshima Bank, Ltd.
July 10, 2014
Mizuho Bank, Ltd.
July 10, 2014
The Nishi-Nippon City Bank, Ltd.
July 10, 2014
MUFG Bank, Ltd(Note 5)
July 14, 2014
Sumitomo Mitsui Trust Bank, Limited
July 31, 2014
Sumitomo Mitsui Banking Corporation
July 31, 2014
Resona Bank, Limited
July 31, 2014
Sumitomo Mitsui Banking Corporation
July 31, 2014
Sumitomo Mitsui Trust Bank, Limited
August 29, 2014
Mizuho Trust & Banking Co., Ltd.
September 1, 2014
The Bank of Fukuoka, Ltd.
September 1, 2014
MUFG Bank, Ltd(Note 4) September 3, 2014
Resona Bank, Limited
September 3, 2014
Sumitomo Mitsui Trust Bank, Limited
September 22, 2014
Mizuho Trust & Banking Co., Ltd.
September 30, 2014
MUFG Bank, Ltd(Note 5) October 31, 2014
Resona Bank, Limited
October 31, 2014
Development Bank of Japan Inc.
October 31, 2014
MUFG Bank, Ltd(Note 4) October 31, 2014
Sumitomo Mitsui Banking Corporation
October 31, 2014
Development Bank of Japan Inc.
October 31, 2014
MUFG Bank, Ltd(Note 5) January 30, 2015
Sumitomo Mitsui Banking Corporation
January 30, 2015
Sumitomo Mitsui Trust Bank, Limited
February 18, 2015
Aozora Bank, Ltd.
February 18, 2015
Sumitomo Mitsui Banking Corporation
February 18, 2015
Development Bank of Japan Inc.
February 18, 2015
MUFG Bank, Ltd(Note 4) February 27, 2015
Mizuho Bank, Ltd.
March 12, 2015
Sumitomo Mitsui Banking Corporation
March 31, 2015
Aozora Bank, Ltd.
April 30, 2015
Mizuho Bank, Ltd.
August 31, 2015
The Bank of Fukuoka, Ltd.
August 31, 2015
The Nishi-Nippon City Bank, Ltd.
August 31, 2015
The 77 Bank, Ltd.
August 31, 2015

2,000,000
500,000
500,000
1,000,000
1,000,000
1,000,000
6,000,000
2,300,000
700,000
500,000
500,000
1,000,000
1,000,000
2,250,000
500,000
500,000
1,000,000
1,000,000
500,000
500,000
500,000
700,000
500,000
300,000
2,500,000
500,000
1,000,000
1,000,000
200,000
1,400,000
1,000,000
450,000
2,500,000
1,000,000
25,800,000
1,500,000
1,800,000
900,000
2,000,000
500,000
1,000,000
900,000
1,300,000
2,300,000
3,700,000
1,800,000
1,800,000
3,000,000
4,000,000
3,000,000
2,000,000
2,900,000
500,000
2,000,000
500,000
1,000,000
1,000,000
2,700,000
300,000
2,200,000
1,000,000
800,000
500,000
1,000,000
950,000
2,700,000
1,000,000
3,000,000
2,000,000
1,500,000
1,000,000
2,000,000
1,000,000
1,500,000
1,500,000
1,250,000
350,000
1,700,000
1,250,000
2,100,000
1,000,000
2,500,000
2,300,000
500,000
500,000
500,000
500,000

1,000,000
1,000,000
2,000,000
500,000
500,000
1,000,000
6,000,000
500,000
1,000,000
1,000,000
500,000
500,000
500,000
700,000
500,000
300,000
2,500,000
500,000
1,000,000
1,000,000
200,000
1,400,000
1,000,000
450,000
2,500,000
1,000,000
17,050,000
1,500,000
1,800,000
900,000
2,000,000
500,000
1,000,000
900,000
1,300,000
2,300,000
3,700,000
1,800,000
1,800,000
3,000,000
4,000,000
3,000,000
2,000,000
2,900,000
500,000
2,000,000
500,000
1,000,000
1,000,000
2,700,000
300,000
2,200,000
1,000,000
800,000
500,000
1,000,000
950,000
2,700,000
1,000,000
3,000,000
2,000,000
1,500,000
1,000,000
2,000,000
1,000,000
1,500,000
1,500,000
1,250,000
350,000
1,700,000
1,250,000
2,100,000
1,000,000
2,500,000
2,300,000
500,000
500,000
500,000
500,000

Lender- 53 -

Average
Interest Rate
(Note 1)(%)

Last Repayment Date

Payment
MethodUsage

Remarks

0.344 November 30, 20170.344 December 28, 2017
January 31, 2018
0.344
March 31, 2018
0.349
July 31, 2018
0.350
August 31, 2018
0.300
0.351 November 30, 2018
January 31, 2019
0.305
January 31, 2019
0.355
March 29, 2019
0.355

Full onmaturity(Note 2)

Unsecured/
Unguaranteed

2.023
2.206
1.086
1.086
1.036
1.036
0.751
0.294
0.568
0.950
0.950
0.950
0.950
0.969
1.080
1.080
1.080
1.253
0.887
0.350
0.820
0.844
1.770
1.770
0.781
0.762
0.169

November 12, 2017
November 12, 2017
December 28, 2017
December 29, 2017
March 26, 2018
March 26, 2018
March 12, 2018
January 31, 2018
July 31, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 19, 2018
August 31, 2018
August 31, 2018
August 31, 2018
October 31, 2018
October 31, 2018
October 31, 2018
November 12, 2018
November 30, 2018
March 28, 2019
March 28, 2019
March 31, 2019
March 31, 2019
March 31, 2019

Full onmaturity(Note 2)

Unsecured/
Unguaranteed

1.420
1.059
1.059
1.074
1.074
1.122
1.122
1.205
1.130
0.932
0.916
1.358
0.912
1.013
1.199
1.349
0.954
0.640
0.903
0.903
0.682
0.616
0.736
0.756
1.014
0.650
0.885
0.885
0.979
0.979
0.798
0.893
0.802
1.071
1.126
1.071
1.257
1.259
0.710
1.161
0.907
0.907
1.157
1.314
1.153
1.218
1.266
0.825
0.872
0.872
0.872
0.872

August 31, 2020
September 30, 2019
September 30, 2019
November 12, 2020
November 12, 2020
November 30, 2020
November 30, 2020
January 31, 2021
January 31, 2021
January 31, 2020
March 12, 2020
March 12, 2023
March 12, 2020
September 20, 2021
March 20, 2022
March 12, 2023
October 31, 2020
July 10, 2019
July 10, 2021
July 10, 2021
July 31, 2019
July 31, 2019
July 31, 2020
October 31, 2020
July 31, 2022
July 31, 2019
August 31, 2021
August 31, 2021
August 31, 2022
August 31, 2022
September 30, 2020
September 30, 2021
October 31, 2021
October 31, 2023
October 31, 2023
October 31, 2023
October 31, 2024
October 31, 2024
January 31, 2021
January 31, 2025
February 28, 2022
February 28, 2022
February 29, 2024
February 28, 2025
February 28, 2025
February 28, 2025
March 31, 2025
April 30, 2022
August 31, 2022
August 31, 2022
August 31, 2022
August 31, 2022

Full onmaturity(Note 2)

Unsecured/
UnguaranteedClassification

LenderDrawndown Date

Balance at the
Beginning of
Period(Thousands of
Yen)

Balance at theEnd of Period(Thousands of
Yen)

Average
Interest Rate
(Note 1)(%)

Last Repayment Date

Payment
MethodUsage

Remarks

Long-Term Loans Payable

The Higashi-Nippon Bank, Limited
August 31, 2015
August 31, 2022
500,000
500,000
0.872
The Mie Bank, Ltd.
August 31, 2015
August 31, 2022
500,000
500,000
0.872
Sumitomo Mitsui Trust Bank, Limited
September 30, 2015
2,000,000
2,000,000
1.065 September 30, 2024
MUFG Bank, Ltd(Note 5) October 30, 2015
1,000,000
1,000,000
0.989 October 31, 2024
Mizuho Bank, Ltd.
October 30, 2015
1,500,000
1,500,000
1.114 October 30, 2025
MUFG Bank, Ltd(Note 4) October 30, 2015
2,000,000
2,000,000
1.114 October 30, 2025
Sumitomo Mitsui Banking Corporation
October 30, 2015
2,500,000
2,500,000
1.114 October 30, 2025
Development Bank of Japan Inc.
October 30, 2015
2,500,000
2,500,000
1.121 October 30, 2025
Resona Bank, Limited
November 12, 2015
1,000,000
1,000,000
1.173 November 30, 2025
MUFG Bank, Ltd(Note 4) January 29, 2016
January 31, 2022
2,500,000
2,500,000
0.590
Sumitomo Mitsui Banking Corporation
January 29, 2016
January 31, 2022
500,000
500,000
0.640
Sumitomo Mitsui Banking Corporation
January 29, 2016
January 29, 2026
2,000,000
2,000,000
1.074
MUFG Bank, Ltd(Note 4) January 29, 2016
January 29, 2026
1,800,000
1,800,000
1.024
Sumitomo Mitsui Trust Bank, Limited
February 18, 2016
1,000,000
1,000,000
0.998 February 18, 2026
Aozora Bank, Ltd.
February 18, 2016
500,000
500,000
0.998 February 18, 2026
Resona Bank, Limited
March 31, 2016
March 31, 2026
1,000,000
1,000,000
0.898
Development Bank of Japan Inc.
April 28, 2016
April 30, 2024
2,000,000
2,000,000
0.654
Development Bank of Japan Inc.
April 28, 2016
April 30, 2026
2,000,000
2,000,000
0.835
MUFG Bank, Ltd(Note 5)
April 28, 2016
April 30, 2026
1,000,000
1,000,000
0.865
MUFG Bank, Ltd(Note 5)
July 29, 2016
July 31, 2026
1,500,000
1,500,000
0.613
Mizuho Bank, Ltd.
August 2, 2016
July 31, 2026
1,000,000
1,000,000
0.544
Aozora Bank, Ltd.
October 31, 2016
1,000,000
1,000,000
0.668 October 31, 2024
Sumitomo Mitsui Banking Corporation
October 31, 2016
2,500,000
2,500,000
0.876 October 31, 2026
MUFG Bank, Ltd(Note 4) October 31, 2016
1,000,000
1,000,000
0.760 October 31, 2026
Development Bank of Japan Inc.
October 31, 2016
4,000,000
4,000,000
0.734 October 31, 2026
Sumitomo Mitsui Trust Bank, Limited
October 31, 2016
1,500,000
1,500,000
0.826 October 31, 2026
Full on
Unsecured/Resona Bank, Limited
December 12, 2016
500,000
500,000
0.982 November 30, 2026
(Note 2)maturity
Unguaranteed
Development Bank of Japan Inc.
December 28, 2016
1,500,000
1,500,000
0.950 December 28, 2026
Sumitomo Mitsui Trust Bank, Limited
January 16, 2017
January 31, 2027
500,000
500,000
0.860
MUFG Bank, Ltd(Note 5) January 31, 2017
January 31, 2027
700,000
700,000
0.853
The Bank of Fukuoka, Ltd.
March 28, 2017
March 31, 2027
500,000
500,000
0.850
Resona Bank, Limited
June 30, 2017
June 30, 2027
1,500,000
1,500,000
0.849
Mizuho Bank, Ltd.
August 10, 2017
July 28, 2027
3,500,000
3,500,000
0.800
Sumitomo Mitsui Banking Corporation
August 31, 2017
August 31, 2023
1,000,000
1,000,000
0.544
Sumitomo Mitsui Banking Corporation
September 21, 2017
March 31, 2024
1,000,000
1,000,000
0.555
Sumitomo Mitsui Banking Corporation
September 21, 2017
1,500,000
1,500,000
0.680 September 30, 2025
Mizuho Bank, Ltd.
September 21, 2017
March 31, 2027
1,000,000
1,000,000
0.732
Development Bank of Japan Inc.
September 21, 2017
1,000,000
1,000,000
0.873 September 21, 2027
Sumitomo Mitsui Banking Corporation
September 21, 2017
2,500,000
2,500,000
0.851 September 30, 2027
MUFG Bank, Ltd(Note 4) October 31, 2017
2,500,000
2,500,000
0.810 October 31, 2027
Development Bank of Japan Inc.
November 13, 2017
3,000,000
0.931 November 13, 2027
Sumitomo Mitsui Banking Corporation
December 7, 2017
1,400,000
0.899 November 30, 2027
MUFG Bank, Ltd(Note 4) December 7, 2017
1,200,000
0.820 November 30, 2027
Development Bank of Japan Inc.
December 7, 2017
1,000,000
0.969 November 30, 2027
Resona Bank, Limited
December 7, 2017
1,000,000
0.939 November 30, 2027
Mizuho Trust & Banking Co., Ltd.
December 7, 2017
1,000,000
0.869 November 30, 2027
Sumitomo Mitsui Trust Bank, Limited
December 7, 2017
800,000
0.899 November 30, 2027
MUFG Bank, Ltd(Note 5) December 7, 2017
600,000
0.869 November 30, 2027
Mizuho Trust & Banking Co., Ltd.
December 28, 2017
500,000
0.864 December 28, 2027
The Bank of Fukuoka, Ltd.
December 28, 2017
500,000
0.744 December 28, 2025
Development Bank of Japan Inc.
December 28, 2017
500,000
0.878 December 28, 2026
Aozora Bank, Ltd.
March 12, 2018
March 31, 2028
1,500,000
0.914
Sumitomo Mitsui Banking Corporation
March 26, 2018
March 31, 2027
1,000,000
0.808
Resona Bank, Limited
March 26, 2018
March 31, 2028
1,000,000
0.902
Sub Total
140,000,000
155,000,000
Total
171,800,000
178,050,000
Note 1: The average interest rate is the weighted-average interest rate during the fiscal period. Figures for borrowings, for which interest-rate swap transactions were contracted with the aim of minimizing
the risk of future increase in interest rates, are listed as weighted-average interest rates considering the effect of interest-rate swap.
Note 2: Funds procured through borrowings are used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings, etc.
Note 3: Borrowings are listed in the current portion of long-term loans payable from the fiscal period under review, listed in long-term loans payable in the previous fiscal period.
Note 4: The Bank of Tokyo-Mitsubishi UFJ, Ltd. changed its corporate name to MUFG Bank, Ltd. on April 1, 2018.
Note 5: MUFG Bank, Ltd. succeeded to the status of lender from Mitsubishi UFJ Trust and Banking Corporation due to the absorption-type demerger of Mitsubishi UFJ Trust and Banking Corporation(the splitting company) and MUFG Bank, Ltd. (the successor company) on April 16, 2018.
Note 6: Prepayment of borrowings was made on December 28, 2017.

- 54 -