KENEDIX REALTY INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED APRIL 30, 2011 (REIT)(November 1, 2010 to April 30, 2011)

June 15, 2011

Kenedix Realty Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
Representative:

Taisuke Miyajima, Executive Director

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

Taisuke Miyajima, CEO and President

Inquires:

Masahiko Tajima, Director / General Manager, Financial Planning Division
TEL +81-3-3519-3491

Planned submission of semiannual securities report: July 29, 2011
Planned start of distribution payments:

July 21, 2011

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED APRIL 30, 2011 (TWELFTH FISCAL PERIOD)(1) Business Results(Amounts are rounded down to the nearest ¥million)

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

April 30, 2011

8,136(-2.7%)

3,709(-3.3%)

2,346(-10.0%)2,309(-11.4%)

October 31, 2010

8,358

(3.6%)

3,835(2.6%)

2,608(1.5%)

2,607(1.5%)For the six months ended

Net Income

Return on Unitholders’ Equity

per Unit (Yen)

Ordinary Income to

Ordinary Income toTotal Assets

Operating Revenues

For the six months endedApril 30, 2011

9,890

1.7%

0.9%

28.8%

October 31, 2010

11,162

1.9%

1.0%

31.2%

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

Distributions per Unit
Excluding Excess of

Total Distribution(Millions of Yen)

Earnings (Yen)Distributions in

Total Distributions in

Excess of Earnings

Excess of Earnings

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

to Unitholders’EquityFor the six months endedApril 30, 2011

9,891

2,310

0

-

100.0%

1.7%

October 31, 2010

10,881

2,541

0

-

97.5%

1.9%

Note: The payout ratio is round to the nearest first decimal place.

(3) Financial Position（Total assets and unitholders’ equity are rounded down to the nearest ¥million.）

Total Assets

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Share(Millions of Yen)

(Millions of Yen)

to Total Assetsof Common Stock (Yen)For the six months endedApril 30, 2011

261,928

135,505

51.7%

580,199

October 31, 2010

251,080

135,73254.1%

581,170

This is an English-language translation of the original Japanese announcement on our Web site released on June 15, 2011. However, noassurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original
shall prevail in the case of discrepencies between this translation and the Japanese original.

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

Cash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents

Operating Activities

Investing Activities

Financing Activities

at Period End(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

For the six months endedApril 30, 2011

3,546

-13,701

7,607

12,820

October 31, 2010

6,664

- 615

- 2,966

15,367

2．FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING OCTOBER 31, 2011 (May 1, 2011 to October 31, 2011)
Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)Distribution perDistribution in

Unit Excluding

Excess ofExcess ofEarnings per Unit

Earnings (Yen)

(Yen)

9,900

0

For the six months
endingOctober 31, 2011

8,647(+6.3%)

3,974(+7.1%)

2,571(+9.6%)

2,570 (+11.3%)(Reference) Estimated net income per unit for the fiscal period ending October 31, 2011: ¥11,004
Forecasted number of investment units issued and outstanding as of October 31, 2011: 233,550 units(Note)
Distribution per unit is calculated under the assumption that net profit after deduction of projected provision of reserve for reduction entry for the period ended October
31, 2011 of ¥257 million will be distributed

3．OTHER(1) Changes in Accounting Policies(a) Changes accompanying amendments to accounting standards: No(b) Changes other than (a): 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, 2011: 233,550 units
As of October 31, 2010: 233,550 units(b) Number of treasury units at period end
As of April 30, 2011: 0 units
As of October 31, 2010: 0 units
Note: Please refer to page 40 ―Notes to the Information per Unit‖ for the calculation of net income per unit.

*Explanation on the appropriate use of the forecast of results and other matters of special consideration
The forecast of results for the thirteenth fiscal period ending October 31, 2011 are calculated as of June 15, 2011 based on theassumptions presented on page 14 ―Preconditions and Assumptions for the Fiscal Period Ending October 31, 2011.‖ Readers areadvised that actual operating revenues, operating income, ordinary income, net income and distribution per unit may differ
significantly from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of theforecast distribution per unit.

This notice is an English-language translation of the original Japanese announcement on our Web site released on June 15, 2011. However,no assurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original
shall prevail in the case of discrepencies between this translation and the Japanese original.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

1.

Basic Structure — Overview of Companies Related to the Investment Corporation
There were no major changes to the ―Structure of the Investment Corporation‖ from the most recent securities report (submitted on
January 28, 2011), and accordingly this information has been omitted from this document.

2.

Management Policy and Operating Conditions(1) Management Policy
There were no major changes to the ―Investment Policy,‖ ―Investment Strategy‖ and ―Distribution Policy‖ from the most recent
securities report (submitted on January 28, 2011), and accordingly this information has been omitted from this document.
(2) Operating Conditions(1) Operating Conditions for the Twelfth Fiscal Period (fiscal period ended April 30, 2011)
A. The Investment Corporation
The Investment Corporation was established on May 6, 2005 in accordance with the Investment Trust and Investment Corporation Law(―the Investment Trust Law‖). On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of
the Tokyo Stock Exchange with a total of 75,400 investment units issued and outstanding (Securities Code: 8972). Subsequently, theInvestment Corporation raised funds through public offerings including two global offerings. The Investment Corporation also
undertook an additional issue of 33,550 investment units through a public offering in Japan on November 16, 2009. Consequently, as ofApril 30, 2011, the end of the twelfth fiscal period, the number of investment units issued and outstanding totaled 233,550 units.
The Investment Corporation appointed Kenedix REIT Management, Inc. as its asset management company. In collaboration with theAsset Management Company, the Investment Corporation strives to maximize cash distribution to investors by securing stable earnings
and sustainable investment growth. To this end, the Investment Corporation adopts a dynamic and flexible investment stance that seeks
to respond to its environment and market trends, and endeavors to ensure a timely response to opportunities. The Investment Corporation
endeavors to develop a diversified investment portfolio that it calls, ―KENEDIX Selection,‖ adopting a three-point investment
methodology based on property type, area and size.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review (fiscal period ended April 30, 2011), though some recovery of the Japanese economy was initiallyobserved, this movement weakened following the East Japan Earthquake of 2011 that lead to the disruption of supply chains,deterioration of investor and consumer confidence, and a temporary drop of corporate earnings.
Concerning real estate market conditions, official land prices (as of January 1, 2011) announced by the Ministry of Land, Infrastructure,
Transport and Tourism on March 17, 2011 show that, although land prices nationally continued to decrease throughout 2010, the degreeof decrease was lessening.
The average annual change in land prices in Japan decreased by 3.8% for commercial land and decreased by 2.7% for residential land. In
the Tokyo Area, the average decreased by 2.5% for commercial land and decreased by 1.7% for residential land. In the three major
metropolitan areas, the average decreased by 2.5% for commercial land and decreased by 1.8% for residential land. In each case, the rateof decrease was smaller when compared to the previous survey, and a turnaround from the downtrend may be visible.
Concerning the office building leasing market conditions, although there were concerns regarding the effects of the East Japan
Earthquake of 2011, there was limited direct impact.There were signs of a potential break in the drop in new rentals and the rise invacancy rates in central Tokyo.
On the other hand, in the real estate transaction market, an increasing trendin the number of transactions could be seen centering on
J-REITs as the financing environment improved and real estate prices were adjusted. Also, though transactions were temporarily
stagnant due to the impact of the East Japan Earthquake of 2011, real estate transactions have since showed signs of recovery.
(b) Management Performance
As of the end of the eleventh fiscal period (fiscal period ended October 31, 2010), the Investment Corporation owned 67 properties witha total acquisition price of ¥233,281 million. In the fiscal period under review (fiscal period ended April 30, 2011), the Investment
Corporation acquired 2 office buildings (total acquisition price of ¥8,300 million) located in the Tokyo Metropolitan Area and 2 officebuildings (total acquisition price of ¥4,875 million) located in the Other Regional Areas.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)<4 Office Buildings Acquired During the Twelfth Fiscal Period>
Property
No.
A-67
A-68
A-69
A-70

Property Name

Acquisition Price(Millions of Yen)
4,300
4,000
2,870
2,005

Location

Kyodo Building (Ginza No.8)
Kyodo Building (Honcho 1chome)
KDX Kobayashi-Doshomachi Building
Kitananajo SIA Building

Chuo ward, Tokyo
Chuo ward, Tokyo
Osaka, Osaka
Sapporo, Hokkaido

Acquisition Date
November 12, 2010
November 12, 2010
December 1, 2010
March 25, 2011

As a result, the number of properties owned as of April 30, 2011 amounts to 71, with a total acquisition price of ¥246,456 million. In
addition, the Investment Corporation decided to sell KDX Hirakawacho Building (initial acquisition price of ¥5,180 million) on April 5,
2011.
Looking at the portfolio as a whole, 91.1% was comprised of office buildings, 5.0% of central urban retail properties and 3.8% ofresidential properties on an acquisition price basis. The occupancy ratio as of the end of the twelfth fiscal period was 94.6% reflecting
stable investment and asset management.
＜Changes in Asset Size since Eighth Fiscal Period＞
Eighth Fiscal Period
Ninth Fiscal Period
Tenth Fiscal Period
Eleventh Fiscal Period
Twelfth Fiscal Period(as of April 30, 2009)(as of October 31, 2009)(as of April 30, 2010) (as of October 31, 2010) (as of April 30, 2011)
Total
Total
Total
Total
Total
Ratio
Ratio
Ratio
Ratio
Ratio
Acquisition Price
Acquisition Price
Acquisition Price
Acquisition Price
Acquisition Price
(%)
(%)
(%)
(%)
(%)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
Type of Use
Area

Office Buildings
Central Urban
Retail Properties

193,911

88.5

197,46189.6

213,07190.3

211,461 90.6

224,636

91.1

12,3795.6

12,3795.6

12,3795.2

12,3795.3

12,3795.0

Residential Properties

12,7095.8

10,3194.6

10,319

4.3

9,441

4.0

9,441

3.8

Total
Tokyo Metropolitan
Area

218,999

100.0

220,159

100.0

235,769 100.0

233,281 100.0

246,456 100.0

188,534

86.0

186,14484.5

201,75485.5

199,266 85.4

207,566

84.2

Other Regional Areas

30,46513.9

34,01515.4

34,015

14.4

34,015 14.5

38,890

15.7

Total

218,999

100.0

220,159

100.0

235,769 100.0

233,281 100.0

246,456 100.0

Notes:
1. Total acquisition price is the total of acquisition price for each property classified by type and area.
2. Total acquisition price is rounded down to the nearest million yen. Percentages are rounded down to the nearest first decimal place.

Property Acquisitions in the Tenth Fiscal Period (fiscal period ended April 30, 2010) Onwards
The Investment Corporation has built a strong asset base (portfolio) that is focused on office buildings in the Tokyo Metropolitan
Area with 71 properties amounting to ¥246,456 million in total acquisition price and an occupancy ratio of 94.6% as of the end of
the fiscal period under review (fiscal period ended April 30, 2011).
The Investment Corporation acquired four office buildings in November 2009, in advance of the pre-earthquake recovery of thereal estate transaction market, with funds procured by increasing capital through public offering and additionally acquired one
office building in February 2010 with funds procured through new borrowings. In this manner, the Investment Corporation has
been enhancing its presence in the mid-sized office building transaction market. Specifically, four properties were acquired fromthird party private placement funds and other sources by increasing capital through our public offering in November 2009
(Koishikawa TG Building, Gotanda TG Building, KDX Nihonbashi 216 Building and KDX Shin-Yokohama 381 Building
Annex Tower) and one property was acquired in a negotiated transaction with another J-REIT through new borrowings (KDX
Shinjuku Building) for a total of five properties (total acquisition price of ¥15,610 million) acquired in the tenth fiscal period(fiscal period ended April 30, 2010). Moreover, the Investment Corporation also secured funds for new acquisitions by selling
KDX Shinjuku-Gyoen Building and Court Shin-Okachimachi (total sales price: ¥2,500 million).
The Investment Corporation has drawn on the advantages of being among the first to resume property acquisitions in the form of
expansion and cultivation of its own information sourcing channels, such as private placement funds, other J-REITs, businesses,
financial institutions and brokerage firms, which is supporting external growth.
During the Twelfth Fiscal Period, the Investment Corporation acquired Kyodo Building (Ginza No. 8) and Kyodo Building(Honcho 1chome) in November 2010 and KDX Kobayashi-Doshomachi Building in December 2010 with funds procured
through new borrowings and cash on hand for a total of three properties. In addition, the Investment Corporation acquired
Kitananajo SIA Building in March 2011 mainly with funds procured through new borrowings. A total of four properties were-4-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

acquired (total acquisition price of ¥13,175 million) during this fiscal period, and as a result the Investment Corporation has
increased its presence in the mid-sized office building transaction market.
Further, in April 2011, the Investment Corporation concluded an agreement to sell the KDX Hirakawacho Building (plannedsales price: ¥5,800 million) on June 30, 2011.
As an investment corporation with an asset base (portfolio) focused on mid-sized office buildings, the Investment Corporation
pursues consistent external growth by leveraging the know-how on operating mid-sized office buildings accumulated by the AssetManagement Company.
Operation and Management of Existing Properties
The Investment Corporation has appointed the Asset Management Company as its property management company for its entire
portfolio. In establishing a single point of contact for all matters relating to property management activities, the Investment
Corporation strives to secure consistent policies, specifications and procedures along with ensuring swift service with a highdegree of quality. As of April 30, 2011, the investment portfolio is being managed generally at a high occupancy ratio and theoccupancy ratio for the portfolio as of the end of the fiscal period under review was 94.6%. The Investment Corporation issatisfied with the quality of property management.
Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for our office buildings was 691 as of the end of the fiscal period under review (fiscal period endedApril 30, 2011). Floor area leased to the largest end-tenant as a proportion of total leased floor area of the total portfolio was at
1.9%, and 5.1% for the top 3 office building tenants. This illustrates our diversification of tenants. Furthermore, 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..
Leasing Management in View of the Leasing Market Environment
The Investment Corporation believes that the mid-sized office building market tends to be less volatile in a weakening leasing
environment than the large-sized office building market. This is because the market has a broad base of potential tenants as well as
tenants with a variety of lease needs. We believe that the mid-sized office buildings market in the Tokyo Metropolitan Area,
which is a primary investment focus area for the Investment Corporation, is the largest market in terms of demand due to theeconomic scale of the Tokyo Metropolitan Area and due to the many middle-market and small- and medium-sized enterprisesthat are candidates for tenancy.
Since listing in 2005, the Investment Corporation had conducted negotiations to increase rent while maintaining favorable
relationships with tenants in cases where market rent greatly exceeded contracted rent. These activities to match contracted rents
with the market rents contributed to increases in rental revenue.
However, in view of the sudden deterioration of the economy since autumn 2008 and the accompanying trends in the leasing
market, at the beginning of the eighth fiscal period (fiscal period ended April 30, 2009), the Investment Corporation shifted to a
management policy of placing priority on maintaining occupancy ratios without, in principle, negotiating to raise rent duringforthcoming rent negotiations.
One reason why it was able to swiftly modify policies was because the Investment Corporation entrusts all its property
management duties to the Asset Management Company, and that it has an established structure that enables it to take into accountfuture trends of the leasing market in advance and swiftly respond to market changes.
Change in Occupancy Ratio
The occupancy ratio of office buildings that the Investment Corporation owns in the Tokyo Metropolitan Area was maintained atover 95% at the end of the seventh fiscal period (fiscal period ended October 31, 2008) up to the end of the tenth fiscal period(fiscal period ended April 30, 2010) through a flexible leasing policy responding promptly to the market trends mentioned above,
before declining to 94.6% as of the end of the eleventh fiscal priod.The fiscal period under review (fiscal period ended April 30,2011) continued with a difficult leasing environment and was affected by such factors as extended periods of vacancy.
Nevertheless, the occupancy ratio of the Investment Corporations’s office buildings in the Tokyo Metropolitan Area recovered tothe 95% level and the occupancy ratio of office buildings overall rose to 94.2%, an increase of 0.9% compared to the end of theprevious fiscal period. Furthermore, the occupancy ratio was 100% for 40 out of 65 office buildings that the Investment
Corporation owns..
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KENEDIX REALTY INVESTMENT CORPORATION (8972)<Changes in Occupancy Ratio (Note) for Total Office Buildings, Tokyo Metropolitan Area, Other Regional Areas and Portfolio>
Office Buildings
Total

Tokyo Metropolitan Area

Other Regional Areas

Eighth Fiscal Period
95.6％
96.5％
(As of April 30, 2009)
Ninth Fiscal Period
94.4％
97.3％
(As of October 31, 2009)
Tenth Fiscal Period
94.0％
95.7％
(As of April 30, 2010)
Eleventh Fiscal Period
93.3％
94.6％
(As of October 31, 2010)
Twelfth Fiscal Period
94.2％
95.5％
(As of April 30, 2011)
Note: Occupancy ratios are rounded to the nearest first decimal place.

Portfolio

92.4％

95.7％

85.9％

94.7％

88.2％

94.4％

89.0％

93.6％

90.4％

94.6％

C. Capital Acquisition(a) Status of Borrowings
The Investment Corporation undertook borrowings of ¥11,500 million (¥9,500 million in long-term borrowings and ¥2,000 million in
short-term borrowings (Note 1)) to acquire additional assets and borrowings of ¥21,000 million (¥16,800 million in long-term borrowingsand ¥4,200 million in short-term borrowings (Note 1)) to repay borrowings that matured during the twelfth fiscal period (fiscal period
ended April 30, 2011). Details are provided as follows:
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date.
However, the borrowings whose period until repayment date have surpassed one year because the repayment date one year from 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 the repayment date. The
same classification criteria apply to other borrowings listed below.

<Borrowings during the Twelfth Fiscal Period>
LenderClassification

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.

Term Loan 51-A

Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.
Development Bank of Japan Inc.

Term Loan 51-C
Term Loan 51-E

Resona Bank, Ltd.
Development Bank of Japan Inc.

Last Repayment Date

November 12, 2010

November 12, 2013

1,200
800

November 12, 2010

November 12, 2015

2,300

November 12, 2010

November 12, 2017

December 1, 2010

November 12, 2013

December 1, 2010

November 12, 2015

500
Term Loan 51-B

Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation

800

Drawdown
Date

400

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.

BorrowingAmount(Millions of Yen)
1,500

200
100

Term Loan 51-D

800
200

Term Loan 51-F

700

December 1, 2010

November 12, 2017

Mitsubishi UFJ Trust and Banking Corporation

Series 52-A

2,700

January 31, 2011

January 31, 2012

Sumitomo Mitsui Banking Corporation

Series 52-B

1,300

January 31, 2011

January 31, 2014

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Series 52-C

800

January 31, 2011

January 29, 2016

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Series 52-D

500

February 28, 2011

January 29, 2016

Aozora Bank, Ltd.

Series 53-A

3,000

February 28, 2011

August 31, 2015

The Chuo Mitsui Trust and Banking Co., Ltd.

Series 54

2,700March 22, 2011

September 22, 2014

Mitsubishi UFJ Trust and Banking Corporation

Series 55-T

2,000

March 25, 2011

March 23, 2012

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Series 52-E

2,000

March 31, 2011

January 29, 2016

Aozora Bank, Ltd.

Series 53-B

2,000

March 31, 2011

September 30, 2013

Resona Bank, Ltd.

Series 56

1,000March 31, 2011

March 31, 2016

The Norinchukin Bank

Series 57

1,500

April 18, 2011

November 30, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Series 52-F

1,000

April 28, 2011

January 29, 2016

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Aozora Bank, Ltd.

Series 53-C

BorrowingAmount(Millions of Yen)
1,500

April 28, 2011

October 31, 2015

Mitsubishi UFJ Trust and Banking Corporation

Series 58

1,000

April 28, 2011

April 30, 2013

Total

-

32,500--

LenderClassification

Drawdown
Date

Last Repayment Date

As of the end of the eleventh fiscal period (fiscal period ended October 31, 2010), the balance of borrowings amounted to¥90,567 million (¥84,267 million in long-term borrowings and ¥6,300 million in short-term borrowings). As a result, the balanceof interest-bearing debt amounted to ¥112,715.5 million as of April 30, 2011, comprising ¥100,715.5 million in borrowings(¥92,015.5 million in long-term borrowings and ¥8,700 million in short-term borrowings) and ¥12,000 million in investment
corporation bonds.
As of April 30, 2011, ¥10,000 million out of ¥19,800 million of long-term borrowings, which have floating interest rates, havebeen hedged and fixed by utilizing interest-rate swap agreements. In addition, the long-term debt ratio (Note 2) was 92.3% andthe long-term fixed interest debt ratio (Note 3) was 83.6%.
Note 2: Long-term debt ratio＝（Balance of long-term borrowings＋Balance of investment corporation bonds）÷（Total borrowings＋Balanceof investment corporation bonds）Long-term debt ratio is rounded to the nearest first decimal place.
Note 3: Long-term fixed interest debt ratio＝（Balance of long-term fixed interest rate borrowings＋Balance of investment corporation bonds）
÷（Total borrowings＋Balance of investment corporation bonds）The balance of long-term fixed interest rate borrowings includes
borrowings with floating interest rates effectively fixed by utilizing interest-rate swap agreements. Long-term fixed interest debt ratio isrounded to the nearest first decimal place.

The balance of borrowings according to financial institution as of October 31, 2010 and April 30, 2011are as follows:
LenderEleventh Fiscal Period(as of October 31, 2010)

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

(Millions of Yen)

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

Sumitomo Mitsui Banking Corporation

21,337.0

23,135.5

23.0

Development Bank of Japan Inc.

13,555.0

16,492.5

16.4

The Chuo Mitsui Trust and Banking Co., Ltd.

15,400.0

16,325.0

16.2

Aozora Bank, Ltd.

13,975.0

14,462.5

14.4

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

9,800.0

11,800.0

11.7

Mitsubishi UFJ Trust and Banking Corporation

7,200.0

9,200.0

9.1

Resona Bank, Ltd.

4,300.0

5,300.0

5.3

The Norinchukin Bank

4,000.0

4,000.0

4.0

Mitsui Sumitomo Insurance Co., Ltd.

1,000.0

-

-

Total

90,567.0

100,715.5

100.0Note 4: Percentages are rounded down to the nearest first decimal place.

(b) Overview of Posted Collateral
On November 12, 2010, the Investment Corporation posted collateral for 3 more properties (KDX Shin-Yokohama 381 Building,
Kyodo Building (Ginza No.8), Kyodo Building (Honcho 1chome) in addition to the 44 properties it had already posted collateral
for as of the end of the eleventh fiscal period (October 31, 2010). The status of the posted collateral as of the end of the fiscal
period under review (fiscal period ended April 30, 2011) are as follows:（Unit: Millions of Yen)
Collateralized Assets (Secured)
Uncollateralized Assets (Unsecured)
Appraisal Value at the End of
Number of
Appraisal Value at the End of
Number of Properties
Twelfth Fiscal Period
Properties
Twelfth Fiscal Period
47 properties
169,200
24 properties
52,574Moreover, the outstanding balance of secured borrowings as of the end of the fiscal period under review is ¥100,715.5 million.
(c) Diversification of Debt Maturities
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates and extending
borrowing periods for its interest-bearing debt. In addition, the total balance of interest-bearing debt as of the end of the twelfth
fiscal period (fiscal period ended April 30, 2011) maturing in each fiscal period is as follows:-7-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Balance of Interest-Bearing Debt Maturing in Each Fiscal Period of the Investment Corporation (Note)

Note: Amounts are rounded to the nearest second decimal place.

(d) Status of Credit Rating
The status of the credit ratings as of April 30, 2011 is as follows:
Credit Rating Agency
Details of the Ratings
Rating of Long-Term Senior Debts
Ratings on Bonds
Japan Credit Rating Agency, Ltd.
Rating of Shelf Registration
OutlookA
Stable(e) Status of Shelf Registration
The Investment Corporation filed a debt shelf registration statement in February 2009. However, as the planned issuance period
was originally set to expire on February 14, 2011, the Investment Corporation filed a new debt shelf registration statement on
February 4, 2011. Details are as follows:

Planned Issue Amount
Planned Issuance Period
Use of Funds

Investment Corporation Bond
¥100,000,000,000
February 15, 2011 to February 14, 2013
Acquisition funds for specified assets, repayment of borrowings, repayment ofinvestment corporation bonds, refund of lease and guarantee deposits, funds to pay for repairs andmaintenance, working capital, etc.

The Investment Corporation’s First Series Unsecured Investment Corporation Bonds of ¥9,000,000,000 and Second Series
Unsecured Investment Corporation Bonds of ¥3,000,000,000 were issued in March 2007 based on the debt shelf registration
statement filed in February 2007.
On February 4, 2011, the Investment Corporation filed a notice of withdrawal related to the investment unit certificate
registration statement filed in April 2009 (Planned issuance period: May 7, 2011). Following this, on February 4, 2011, theInvestment Corporation filed an equity shelf registration statement again to continue to secure opportunity for flexible equity
financing. Details are as follows:

Planned Issue Amount
Planned Issuance Period

Use of Funds

Investment Unit Certificate
Primary Offering¥100,000,000,000
February 15, 2011 to
February 14, 2013
Acquisition funds for specified assets, repayment ofborrowings, repayment of investment corporation
bonds, refund of lease and guarantee deposits, funds topay for repairs and maintenance, working capital, etc.
-8-Secondary Offering¥15,000,000,000
February 15, 2011 to
February 14, 2013
Not applicableKENEDIX REALTY INVESTMENT CORPORATION (8972)

There has not yet been any primary offering or secondary offering based on the abovementioned investment unit certificate shelfregistration.
D. Operating Results and Cash Distribution
As a result of the aforementioned operations, the Investment Corporation reported operating revenues of ¥8,136 million, operating
income of ¥3,709 million, ordinary income of ¥2,346 million and net income of ¥2,309 million for its twelfth fiscal period (fiscal
period ended April 30, 2011). Loss on disaster of ¥35 million was recorded as extraordinary loss related to the East Japan
Earthquake of 2011.
In accordance with Article 67.15 of the Special Taxation Measures Law, the Investment Corporation distributes the total amountof its unappropriated retained earnings for each period. Cash distribution for the twelfth fiscal period was ¥9,891per unit.

-9-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Outlook
A. Investment Environment
The Japanese economy is presently at risk of a downturn due to the impacts of the East Japan Earthquake of 2011 such as the constraints
on electricity supply, the delay in rebuilding supply chains, the nuclear power plant accidents and rising fuel prices. However, if therecovery of industrial activity accompanied by an improvement in overseas economies and effective government policies can be
introduced, an economic recovery may follow.
Concerning the real estate market conditions, according to the ―Trend Report of the Prices of Intensively Used Land in Major Cities‖(survey period: January 1, 2011 to April 1, 2011) announced by the Ministry of Land, Infrastructure, Transport and Tourism on May 27,
2011, land prices fell in the majority of the heavily populated districts (commercial and residential districts) of major cities in Japan (98districts (67%) out of all 146 districts) and land prices rose or remained unchanged in 48 districts (33%). The number of districts in which
prices fell increased in comparison to the last survey.
In the office building leasing market, according to Miki Shoji Co., Ltd., the average vacancy rate of large and mid-sized buildings (100tsubo or more in floor area of a typical floor) in the central business district of Tokyo (five central wards of Tokyo) as of April 30, 2011
fell 0.27 points month-on-month. There have been forward-looking movements by tenant companies and relocations for integration,
expansion, etc.. Additionally, the number of consultations and inquiries regarding relocations increased, and it is believed that there willcontinue to be many more relocations.
In the real estate transaction market, transactions temporarily halted due to the effects of the East Japan Earthquake of 2011. However,the current situation has some positive signs such as the beginning of normalization of Japan’s post-earthquake economic activity,
expectations of a macro economic recovery accompanying future reconstruction, and the limited impact on capital liquidity, unlike thecase of the recent global financial crisis. Recently, J-REITs have resumed property transactions, and the Investment Corporations
believes that the number of office building transactions will increase over time.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting dynamic and flexible investment that accurately reflects the trends
and ensures a timely response, and developing a diversified investment portfolio focused on a three-point investment methodology basedon property type, area and size. From this standpoint and in light of the investment environment described above (the Japanese economy,
land price trends, leasing market for office buildings, real estate transaction market, etc.), the Investment Corporation creates a property
investment strategy, existing property management strategy, and financial strategy in a dynamic and flexible manner as set forth below.
(a) New Property Investment Strategy and Sales Policy
The Investment Corporation aims for further expansion of its asset size, with the goal of ―forming a firm portfolio focusing on mid-sized
office buildings‖ and to become the ―No. 1 J-REIT for mid-sized office buildings.‖ The Investment Corporation believes that keeping
office buildings in the Tokyo Metropolitan Area, as its focus while maintaining an investment strategy which aims for a certain degree ofregional diversification, will be a foundation for constructing a superior portfolio and differentiating the Investment Corporation fromothers in the business.
The Investment Corporation believes that it holds a competitive advantage over other real estate acquiring firms as it has laid afoundation for renewed external growth ahead of many other real estate firms since November 2009, has resumed property
acquisitions through public offerings and new borrowings, holds a portfolio surpassing ¥200 billion, and has a track-record in investingin and managing mid-sized office buildings and financial stability.
Moreover, in acquiring properties, the Investment Corporation is striving to diversify investment methods also taking into consideration
the balance of financing sources, such as fund-type investments through investments in silent partnership, and is also strengthening thesourcing of information on portfolio matters in order to acquire properties ahead of competitors.
The Investment Corporation aims to acquire properties that should contribute to increased profitability of its portfolio, fully considering
the rental NOI yield (Note) of the portfolio it owns, the weighted average costs and the significance and impact of the properties on its
growth strategies.
In selling properties, the Investment Corporation will examine the sale of properties individually in consdidering the use of funds for
replacement of assets throughproperty acquisition or fund-type investments. Of this, concerning central urban retail properties andresidential properties, the Investment Corporation will not only refrain from conducting new investments in principle, but will also placesuch properties on the top of the list of properties to sell while taking into consideration the market environment, asset size and otherfactors. On the other hand, the Investment Corporation will decide on the sale of office buildings individually by considering the current
profitability, revenue projections that take into account future market trends, building age, area and property size, among other factors,
and also in light of the significance of the property’s presence in the portfolio.
-10-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Note: The leasing NOI yield is a weighted-average figure of the annualized yield of leasing NOI（= Rental revenues - Rental expenses + Depreciation
expenses for the period）against the acquisition price, in accordance with the operating period.

(b) Existing property management strategy
The Investment Corporation has appointed the Asset Management Company as its sole property management company for the entire
portfolio as of the end of the twelfth fiscal period (fiscal period ended April 30, 2011). In establishing a single point of contact for all
matters relating to property management activities, the Investment Corporation strives to secure consistent policies, specifications andprocedures along with ensuring swift and quality service.
Taking into consideration economic and real estate market trends, the Investment Corporation adopts a tenant-oriented approach to its
leasing activities with aims of ensuring a timely and flexible response as well as optimal tenant satisfaction. Accordingly, the Investment
Corporation will aim to maintain / increase cash flow by offering office environments with high tenant satisfaction. Based on the
aforementioned, the Asset Management Company undertakes property management activities as follows:・Identify degree of satisfaction through use of CS surveys (customer satisfaction = tenant satisfaction)
・Take measures to maintain and raise competitiveness of properties
・Tailor leasing management according to the market environment
・Applycareful control of management and operating costs by taking advantage of portfolio size
・Ensure appropriate response to relevant laws and regulations
・Develop a proactive environmental response
・Implement electricity conservation efforts for Summer 2011
Identify degree of tenant satisfaction through use of CS surveys
The Investment Corporation recognizes each tenant as a key customer and strives to enhance customer satisfaction and raise thecompetitiveness of its properties as the means to maintain and increase earnings.
The Investment Corporation conducted a customer satisfaction survey (―CS Survey‖) through J.D. Power Asia Pacific, Inc., aninternationally recognized company that engages in customer satisfaction evaluation, to better understand the needs of its tenants and takesteps to respond to their preferences. As a part of this survey the administration officers of each tenant and tenant employees were asked torespond to many questions concerning buildings and facilities as well as operating and management services. The Investment Corporation
conducted the first CS Survey, which covered 20 of its properties, during the second fiscal period (fiscal period ended April 30, 2006), thesecond CS Survey, which covered 44 of its properties, during the fifth fiscal period (fiscal period ended October 31, 2007) and the third CS
Survey, which covers 58 properties during the ninth fiscal period (fiscal period ended October 31, 2009).
Furthermore, based on the responses of tenants up to the third survey, the Investment Corporation established guidelines on management
response centering on improvement measures to reflect issues of dissatisfaction in terms of soft services (operating and management
services), including cleaning and tenant services, in an aim to standardize and enhance service quality in relation to the portfolio. The
Investment Corporation has adopted the guidelines as a rule as of the twelfth fiscal period (fiscal period ending April 30, 2011).
The Investment Corporation will continue to listen to the voices of tenants, its customers, and will endeavor to conduct improvement
activities after grasping its strengths and problems both in terms of hardware and soft services for each property, in pursuit of maintaining
and enhancing tenant satisfaction.
By periodically conducting such surveys, the Investment Corporation will aim to increase customer satisfaction, generate improvements
in rent levels and asset values, promote enhanced earnings and aim to maintain and increase cash flow.
Take measures to maintain and raise competitiveness of properties
The Investment Corporation aims to provide attractive mid-sized office buildings in order to enhance portfolio value and rental revenues.
The Investment Corporation believes that the quality of mid-sized office buildings in Japan vary considerably depending on the nature of
the owner. For example, a building owned by an individual or small company that owns only one or a few buildings may not have theresources to provide high-quality maintenance. Furthermore, when a building is owned by a large company, property management isoften dictated by that company’s priorities and does not necessarily correspond to tenant needs or satisfaction.
The Investment Corporation will consolidate its building maintenance companies by taking utmost advantage of the portfolio size, andthen will implement operation and management in close contact with the actual properties in order to further enhance the management
quality and services. The Investment Corporation will set unified standards in regards to specifications and services that tend to differ by
property, and implement measures to enhance value by carrying out property management based on these unified standards. By doing so,
the Investment Corporation aims to maintain rent levels and asset values.
-11-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Tailor leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary target of the Investment Corporation’s investment, are that manyof the tenants generally tend to be small- and medium-sized enterprises and turnover ratios are relatively high. Therefore, in the leasing
aspect, the Investment Corporation implements leasing activities in a timely and flexible manner by adopting the basic policy ofendeavoring to maximize revenues for the medium- to long-term through maintaining occupancy ratios, while taking into accounteconomic and real estate market trends.
Concerning the solicitation of new tenants, the Investment Corporation strives to shorten the period of vacancy and boost the occupancy
ratio by implementing dynamic and flexible leasing activities through the sharing of information closely with leading brokers, holding ofpreviews, marketing directly to corporations, utilizing guarantee companies and other measures.
On the other hand, the Investment Corporation will endeavor to conduct property management so as to increase customer satisfaction by
adopting the basic policy of maintaining current conditions in serving existing tenants.
Apply careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation utilizes the scale merits of owning many properties and the negotiating strength acquired through its
management track record to reduce building maintenance costs. The Investment Corporation has managed to reduce building
maintenance expenses for office buildings, trust fees and electricity costs at some properties by reviewing the specific elements ofbuilding maintenance. In addition, the Investment Corporation has managed to improve the efficiency of content of maintenance andalso managed to reduce costs by consolidating the building maintenance company for office buildings in Tokyo.
The Investment Corporation will carefully control the quality of property management and operating costs and reduce building
maintenance and operating costs by taking advantage of the portfolio size in building maintenance costs and construction bidding.
Ensure appropriate responses to relevant laws and regulations
The Investment Corporation will swiftly collect information with regard to the laws to be revised, including the Energy Saving Act, as
well as present laws and regulations, to appropriately make the required responses.
Develop a proactive environmental response
The Investment Corporation was designated as a specified corporation pursuant to the Act on the Rational Use of Energy on October 1,
2010. The Investment Corporation will research on energy saving and environmental friendliness of mid-sized office buildings, develop
medium- to long-term energy saving plans and reduction targets, and proactively institute measures in terms of both hardware (buildings
and facilities) and soft services (operating and management services) in an aim to ensure the simultaneous pursuit of return on
investment and social benefits.
Implement electricity conservation efforts for Summer 2011
As an owner of office buildings, the Investment Corporation will implement measures for a 15% reduction in electricity consumption at
its properties located within the service areas of the Tokyo Electric Power Company and Tohoku Electric Power Company.
Further, the Investment Corporation`s utility charge reimbursements are anticipated to fall in the event that electric power consumption is
reduced.
(c) Financial Strategy (Debt Financing)
The Investment Corporation will seek to diversify its debt repayment period to reduce refinancing risk. Furthermore, the Investment
Corporation will pursue stable financial management through such measures as continuing to maintain long-term debt ratios above
prudent levels.
While all borrowings of the Investment Corporation were unsecured and unguaranteed since the first borrowing was drawn in August
2005, collateral was posted in April 2009 for a certain proportion of its assets under management for the purpose of smooth fundprocurement. Given the ongoing improvement in the financing environment since 2010, the Investment Corporation will aim to improve
present borrowing terms.
In order to pursue stable financial management, the Investment Corporation will continue to aim to keep the ratio of interest-bearing debt
to total assets (LTV) at less than 45% as a rule. However, it will also remain open to the option of increasing LTV to the upper 40% levelin the event of debt financing conducted for the purpose of acquiring competitive properties or otherwise.
Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial
institutions, especially mega-banks, trust banks and Development Bank of Japan, Inc., as well as aim for more conservative financial
management.
-12-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(d) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aim ofpromptly providing a wide range of relevant information to investors. 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 Web site (URL: http://www.kdx-reit.com/eng/ ).

(3) Important Subsequent Events
There were no important subsequent events following the close of the twelfth fiscal period (fiscal period ended April 30, 2011).

-13-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Outlook
Forecasts for the thirteenth fiscal period (May 1, 2011 to October 31, 2011) are presented as follows. Please refer to the ―Preconditions andAssumptions for the Fiscal Period Ending October 31, 2011‖ below for factors that underpin forecasts.
Operating Revenues
Operating Income
Ordinary Income
Net Income
Distribution per Unit
Distribution in Excess of Earnings per Unit

¥8,647 million¥3,974 million¥2,571 million¥2,570 million¥9,900¥0Note: Forecast figures are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income and distribution per unit
may differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does not guarantee payment of the forecast
distribution per unit.

―Preconditions and Assumptions for the Fiscal Period Ending October 31, 2011‖

Calculation Period
Property Portfolio

Operating Revenues

Operating Expenses

Non-Operating Expenses

Preconditions and Assumptions
 The thirteenth fiscal period: May 1, 2011 to October 31, 2011 (184 days)
 Forecasts are based on the 71 properties held as of June 15, 2011.
 Forecasts are based on the number of properties remaining unchanged up to and including the end of
the thirteenth fiscal period other than the sale of KDX Hirakawacho Building as of June 30, 2011.
 The property portfolio may change due to a variety of factors in the future.
 Rental revenues are estimated based on valid leasing agreements as of June 15, 2011 and byconsidering variable factors, such as seasonal factors against the backdrop of historical performance,
as well as leasing conditions, such as the recent deterioration of real estate market conditions, inaddition to the difference in number of operating days due to movements in existing investment
assets..
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments fromtenants.
 As announced in the press release ―Notice Concerning the Conclusion of Agreement of the Sale ofProperty (KDX Hirakawacho Building)‖dated April 5, 2011, KDX Hirakawacho Building will betransferred on June 30, 2011 and the capital gains from the sale is assumed to be ¥535 million.
 Property-related expenses other than depreciation are based on the difference in number of operatingdays due to movements in existing investment assets and historic expenses, adjusted to reflect
expense variables including seasonal factors.
 An amount of ¥814 million has been assumed for property management fees and facility
management fees (property management and building maintenance fees, etc.).
 An amount of ¥697 million has been assumed for taxes and public dues (property tax andcity-planning tax, etc.).
 An amount of ¥1,400 million has been assumed for depreciation expense.
 An amount of ¥189 million has been assumed for repairs, maintenance and renovation expenses.
 Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by theasset management company for each property and amounts considered essential for each period.
Actual repairs, maintenance and renovation expenses for each fiscal period may, however, differ
significantly from estimated 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 amountequivalent to the portion allocated to the purchaser is included in the acquisition price of the property.
 The Investment Corporation is amortizing unit issuance costs over a period of three years using thestraight-line method.
 Interest payable (including financing related expenses etc.) of ¥1,373 million is assumed for thethirteenth fiscal period.
-14-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Extraordinary Profit/Loss

Debt Financing and Investment
Corporation Bonds

Investment Units Issued andOutstanding
Distributions per Unit

Distributions in Excess of
Earnings per Unit
Other

 Extraordinary profit/loss is not assumed.
 Furthermore, of the expected expense as extraordinary loss for the fiscal period ending October 31,
2011 as announced in the press release “Notice Concerning Announcement of Operating Forecasts
for the Fiscal Period Ending October 31, 2011”dated April 21, 2011, ¥35 million is recorded as
extraordinary loss for the fiscal period ending April 30, 2011.
 The balance of the borrowings and the investment corporation bonds as of June 15, 2011 are¥100,715.5 million and ¥12,000 million, respectively.
 Of the borrowings as of June 15, 2011, ¥19,801.5 million (short-term borrowings: ¥2,500 million andlong-term borrowings: ¥17,301.5 million) in borrowings are due during the thirteenth fiscal period.
However, all borrowings are presupposed to be refinanced excluding ¥301.5 million of the partial
payment.
 The number of investment units issued and outstanding as of June 15, 2011 is 233,550 units.
Forecasts are based on the assumption that the number of investment units issued and outstanding
shall remain unchanged for the thirteenth fiscal period.
 Distributions per unit are calculated in accordance with the distribution policy outlined in theInvestment Corporation’s Articles of Incorporation.Forecasts are based on the assumption that of theestimated amount of ¥535 million in the capital gains from the sale of KDX Hirakawacho Building,the provision of reserve for reduction entry (estimated amount of ¥257 millions) will be the amountwhich the limit is 80% of the capital gain on sale of land and does not conflict with the conduit
requirements stipulated in Article 67-15 of the Special Taxation Measures Law, pursuant to 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 Law).
 Actual distributions per unit may differ significantly from forecasted figures due to a variety ofreasons including movements in investment assets, rental revenues impacted by tenant movements or
the incidence of major unforeseen renovation expense.
 The Investment Corporation does not currently anticipate distributions in excess of earnings per unit.
 Forecasts are based on the assumption that any revisions to regulatory requirements, taxation,accounting standards, public listing regulations or requirements of the Investment Trusts Association,
Japan will not impact forecast figures.
 Forecasts are based on the assumption that there will be no major unforeseen changes to economic
trends and in real estate and other markets.

-15-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

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

Twelfth Fiscal Period(As of October 31, 2010)(As of April 30, 2011)ASSETS
Current assets
Cash and deposits

10,416,712

7,925,308

Cash and deposits in trust *3*35,828,961

5,869,654

Accounts receivable-trade

208,479

186,412Prepaid expenses

66,53054,913-

310,485

Consumption taxes receivable
Other
Total current assets

8,187

5,475

16,528,870

14,352,250

14,743,175

14,792,636

Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation-1,439,687-1,686,763

Buildings, net

13,303,487

13,105,873

19,08622,260

Structures
Accumulated depreciation-4,379-5,055Structures, net

14,707

17,204

341,632

345,675

Machinery and equipment
Accumulated depreciation-60,538-72,198

Machinery and equipment, net

281,094

273,476

Tools, furniture and fixtures

75,74077,350

Accumulated depreciation-14,341-17,888

Tools, furniture and fixtures, net

61,39959,461

Land

29,104,205

29,104,205

Buildings in trust *4

65,118,690

70,624,524

Accumulated depreciation-9,200,374-10,215,088

Buildings in trust, net

55,918,316

60,409,436

Structures in trust

186,595

218,908

Accumulated depreciation-69,189-75,935

Structures in trust, net

117,406

142,972

Machinery and equipment in trust

934,428

963,183

Accumulated depreciation-391,706-425,123

Machinery and equipment in trust, net

542,721538,060

Tools, furniture and fixtures in trust

290,955

324,187

Accumulated depreciation-138,638-155,485

Tools, furniture and fixtures in trust, net

152,316

168,701

133,943,076

142,006,875

233,438,730

245,826,267

285,350

285,350-

74,853

Land in trust
Total property, plant and equipment *3
Intangible assets
Leasehold rightLeasehold rights in trust
Right of using water facilities in trust *3
Total intangible assets

1,027

908

286,377

361,112Investments and other assets
Lease and guarantee deposits
Lease and guarantee deposits in trust-16-

11,652

10,000-124,361

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Long-term prepaid expenses

752,924

1,207,565

Total investments and other assets

764,576

1,341,926

234,489,684

247,529,306

Investment corporation bond issuance costs

27,987

22,205Investment unit issuance expenses

33,51425,136

Total deferred assets

61,502

47,342251,080,057

261,928,899

Total noncurrent assets
Deferred assets

Total assets(Thousands of Yen)
Eleventh Fiscal Period

Twelveth Fiscal Period(As of October 31, 2010)(As of April 30, 2011)

Liabilities
Current Liabilities
Accounts payable499,242

409,413

Short-term loans payable*3

6,300,000

8,700,000-

9,000,000

Current portion of investment corporation bondCurrent portion of long-term loans payable *2 *3

35,250,000

27,460,000

Accounts payable-other

212,243

208,083

Accrued expenses

155,398

192,370

Income taxes payable

632

1,171

Accured consumption taxes

282,12151,280

Advances received

1,166,896

1,872,708

Deposits received

7,158

16,243

Derivatives liabilities

7,420

-

-

30,932

43,881,112

47,942,202

Investment corporation bond

12,000,000

3,000,000

Long-term loans payable *3

49,017,000

64,555,500

Tenant leasehold and security deposits

1,547,030

1,521,762

Tenant leasehold and security deposits in trust

8,902,539

9,403,820

Total noncurrent liabilities

71,466,569

78,481,082

115,347,682

126,423,284

133,129,755

133,129,755

Reserve for reduction entry-

65,795

Total voluntary reserve-

65,7952,607,121

2,310,063

Provision for loss on disaster
Total current liabilities
Noncurrent liabilities

Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus

Unappropriated retained earnings(undisposed loss)
Total surplus

2,607,121

2,375,859

135,736,876

135,505,614

Deferred gains or losses on hedges-4,502-

Total valuation and translation adjustments-4,502-

135,732,374

135,505,614

251,080,057

261,928,899

Total unitholders' equity
Valuation and translation adjustments

Total net assets *1
Total liabilities and net assets-17-

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

Twelveth Fiscal Period

May 1, 2010 toNovember 1, 2010 to

October 31, 2010

April 30, 2011

Operating revenue
Rent revenue-real estate *1

7,159,361

7,208,235

Other lease business revenue *1

1,082,839

928,681Gain on sales of real estate properties

116,396-

Total operating revenue

8,358,596

8,136,917

3,817,751

3,767,177

Operating expenses
Expenses related to rent business *1
Loss on sales of real estate properties *2

64,348-Asset management fee

458,033

448,106

Directors' compensation

5,400

5,850

Asset custody fee

24,851

24,820Administrative service fees

55,20954,771

Audit fee

10,80010,800

Other operating expenses

86,547

115,482

Total operating expenses

4,522,943

4,427,007

3,835,653

3,709,909

Interest income

1,916

1,205

Dividends and redemption-prescription

346

1,143

Other

1,812

999

Total non-operating income

4,075

3,348

Interest expenses

879,628

935,345

Interest expenses on investment corporation bonds

114,321

113,378

Borrowing related expenses

211,796

303,479

Amortization of investment corporation bond issuance costs

5,877

5,781

Amortization of investment unit issuance expenses

8,378

8,378

Operating income
Non-operating income

Non-operating expenses

Other

11,671155

1,231,673

1,366,519

2,608,055

2,346,738

Subsidy-

26,230Total Extraordinary income-

26,230Loss on disaster-

35,360Loss on reduction of noncurrent assets-

26,230Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

Total Extraordinary loss-

61,590

Income before income taxes

2,608,055

2,311,378

Income taxes-current

826

1,412

Income taxes-deferred

171

-28

Total income taxes

998

1,383

2,607,056

2,309,995

64

68

2,607,121

2,310,063

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

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

Twelveth Fiscal Period

May 1, 2010 toNovember 1, 2010 to

October 31, 2010

April 30, 2011

Unitholders' equity
Unitholders' capital *Balance at the end of previous period

133,129,755

133,129,755--

133,129,755

133,129,755--

Provision of reserve for reduction entry-

65,795

Total changes of items during the period-

65,795-65,795--

Provision of reserve for reduction entry-

65,795

Total changes of items during the period-

65,795-65,7952,567,479

2,607,121

Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Surplus
Voluntary reserve
Reduction entry
Balance at the end of previous period
Changes of itemes during the period

Balance at the end of current period
Total Voluntary reserve
Balance at the end of previous period
Changes of itemes during the period

Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the end of previous period
Changes of itemes during the period--65,795

Distribution from surplus-2,567,415-2,541,257

Net income

2,607,056

2,309,995

Provision of reserve for reduction entry

39,641-297,058

2,607,121

2,310,063

2,567,479

2,607,121

Distribution from surplus-2,567,415-2,541,257

Net income

2,607,056

2,309,995

39,641-231,262

2,607,121

2,375,859

135,697,235

135,736,876-2,567,415-2,541,257

Total changes of items during the period
Balance at the end of current period
Total Surplus
Balance at the end of previous period
Changes of itemes during the period

Total changes of items during the period
Balance at the end of current period
Total unitholders' equity
Balance at the end of previous period
Changes of items during the period
Distribution from surplus
Net income

2,309,995
2,607,056

Total changes of items during the period
Balance at the end of current period

39,641-231,262

135,736,876

135,505,614-7,596-4,502

Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at the end of previous period-19-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(Thousands of Yen）
Eleventh Fiscal Period

Twelveth Fiscal Period

May 1, 2010 toNovember 1, 2010 to

October 31, 2010

April 30, 2011

Changes of items during the period
Net change of items other than owners' equity

3,093

4,502

Total changes of itemes during the period

3,093

4,502

-4,502--7,596-4,502

Net change of items other than owners' equity

3,093

4,502

Total changes of items during the period

3,093

4,502

-4,502-

135,689,639

135,732,374

Distribution from surplus-2,567,415-2,541,257

Net income

Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period

2,607,056

2,309,995

Net change of items other than owners' equity

3,093

4,502

Total changes of items during the period

42,735-226,760

135,732,374

135,505,614

Balance at the end of current period-20-

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

Eleventh Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

I. Retained earnings at the end of period

2,607,121,406

2,310,063,344

II. Total Distribution

2,541,257,550

2,310,043,050(10,881)(9,891)65,795,848-

68,00820,294

In accordance with the policy depicted in

In accordance with the policy depicted in

Article 35-1 of its Articles of Incorporation,

Article 35-1 of its Articles of Incorporation,

the Investment Corporation determines that

the Investment Corporation determines thatthe amount of distribution shall exceed thethe amount of distribution shall exceed theamount equivalent to 90% of its distributableamount equivalent to 90% of its distributableprofit as stipulated in Article 67-15 of the

profit as stipulated in Article 67-15 of theSpecial Taxation Measures Law, and shall beSpecial Taxation Measures Law, and shall be

up to the amount of its profits as the ceiling.

up to the amount of its profits as the ceiling.

Following this policy, the Investment

Following this policy, the Investment

Corporation has decided that, of the amountCorporation has decided to distribute theremaining after the reserve for reduction

maximum amount of retained earnings at theentry as stipulated in Article 66-2 of theperiod-end, namely totaling ¥2,310,043,050

Special Taxation Measures Law is deducted

to 233,550 units issued and outstanding.

(Distribution per Unit)
III. Voluntary retained earnings
Provision for reserve for reduction entry
IV. Retained Earnings brought forward to the next
periodMethod of calculating the distribution amountfrom unappropriated retained earnings, it

Procedures for the distribution of amounts

shall distribute the maximum amount ofexceeding distributable income are outlined

retained earnings at the period-end, namely

in

totaling ¥2,541,257,550 to 233,550 units

Corporation’s Articles of Incorporation. In its

issued and outstanding.

fiscal period under review, the Investment

Procedures for the distribution of amounts
exceeding distributable income are outlinedin

Article

35-2

of

the

Investment

Corporation’s Articles of Incorporation. In its
fiscal period under review, the Investment
Corporation has decided not to distributecash in excess of distributable profit.

-21-

Article

35-2

of

the

Investment

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

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

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

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

2,608,055

2,311,378

Depreciation and amortization

1,440,311

1,406,895

Amortization of long-term prepaid expenses

191,122

213,368

Interest income-1,916-1,205Interest expenses

993,950

1,048,723

Amortization of investment unit issuance expenses

8,378

8,378

Amortization of investment corporation bond issuance expenses

5,877

5,781

Loss on disaster-

35,360Subsidy--26,230

Loss on reduction of noncurrent assets-

26,230Decrease (increase) in accounts receivable-trade-57,116

22,066

Decrease (increase) in consumption taxes refund receivable

48,308-310,485

Decrease (increase) in prepaid expenses-14,437

11,616

Increase (decrease) in accounts payable

37,913-12,251

Increase (decrease) in accounts payable-other

35,586-21,496

Increase (decrease) in accrued consumption taxes

264,790-230,840

Increase (decrease) in advances received-78,506

705,811

Increase (decrease) in deposits received-9,894

9,084

Loss on retirement of noncurrent assets

1,143

5,402

Changes in net property, plant and equipment held in trust from sale2,406,185-

Decrease (increase) in long-term prepaid expenses-234,386-668,009

4,702

18,596

Other, net

7,650,069

4,558,174

Interest income received

Subtotal

1,916

1,205

Interest expenses paid

-987,325-1,011,751

-639

-632

6,664,020

3,546,997

Purchase of property, plant and equipment-55,081-57,818

Purchase of property, plant and equipment in trust-311,836-13,745,779--75,498

Payments for lease and guarantee deposits in trust--122,709

Payments of tenant leasehold and security deposits-108,141-85,045

Proceeds from tenant leasehold and security deposits

73,20751,353

Payments of tenant leasehold and security deposits in trust-611,265-530,111

Proceeds from tenant leasehold and security deposits in trust

263,920

960,494--74,000

Payments of restricted bank deposits in trust-13,667-134,899

Proceeds from restricted bank deposits in trust

146,977

112,587

Net cash provided by (used in) investment activities-615,886-13,701,425

Increase in short-term loans payable

2,500,000

6,200,000

Decrease in short-term loans payable-5,000,000-3,800,000

Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investment activities

Purchase of intangible assets in trust

Payments of term deposits in trust

Net cash provided by (used in) financing activities-22-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Proceeds from long-term loans payable

12,400,000

26,300,000

Repayment of long-term loans payable-10,301,500-18,551,500

Dividends paid

-2,565,441-2,541,093

Net cash provided by (used in) financing activities-2,966,941

7,607,406

Net increase (decrease) in cash and cash equivalents

3,081,192-2,547,022

Cash and cash equivalents at beginning of period

12,285,856

15,367,049

15,367,049

12,820,027

Cash and cash equivalents at end of period

*

-23-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(6) Notes【Going Concern】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

None

Same applies as left.

【Important Accounting Standards】

1. Depreciation of fixed assets

Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)(1) Property, plant and equipment (includes trust assets)(1) Property, plant and equipment (includes trust assets)

The straight-line method is applied.

Same applies as left.

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)(2) Intangible assets (includes trust assets)

The straight-line method is applied.

Same applies as left.

Right of using water facilities: 6 years
Leasehold rights
Fixed term leasehold is amortized over a contractual
period of forty-eight years and nine months under thestraight-line method.
(3) Long-term prepaid expenses
Same applies as left.

(3) Long-term prepaid expenses
The straight-line method is applied.
2. Accounting policies for deferredassets(1) Investment unit issuance costs(1) Investment unit issuance costs

Unit issuance costs are amortized over a period of 3 years.

Same applies as left.

(2) Investment corporation bond issuance costs(2) Investment corporation bond issuance costs
Same applies as left.

Bond issuance costs are amortized by applying thestraight-line method for the entire redemption period.
3.Accounting standards for provision

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

-24-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

4. Accounting standards for revenues
and expenses

Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

Accounting method for property tax

Accounting method for property tax

Property-related taxes including property taxes and city

Same applies as left.

planning taxes, etc. are imposed on properties on a calendar
year basis. These taxes are generally charged to rental
expenses for the period, for the portion of such taxes
corresponding to said period.
In connection with the acquisition of real estate including

In connection with the acquisition of real estate

trust beneficiary interests in real estate during the fiscal

including trust beneficiary interests in real estate

period under review, the Investment Corporation included

during the fiscal period under review, the Investment

its pro rata property portion for the year in each property

Corporation included its pro rata property portion for

acquisition price and not as rental expense. The amount of

the year in each property acquisition price and not as

property taxes included in acquisition prices for the fiscal

rental expense. The amount of property taxes

period under review amounted to ¥52,547 thousand.

included in acquisition prices for the fiscal period
under review amounted to ¥23,704 thousand.

5. Accounting for hedges(1) Hedge accounting method(1) Hedge accounting method

The deferred hedge method is applied. However, theSame applies as left.

special treatment is applied for the interest-rate swap
agreements that meet the criteria.
(2) Hedging instruments and risks hedged(2) Hedging instruments and risks hedged

Hedge instruments

Hedge instruments

The Investment Corporation enters into interest-rate swap

Same applies as left.

transactions.
Risks hedged

Risks hedged

Interest rates on debt.

Same applies as left.

(3) Hedging policy(3) Hedging policy

The Investment Corporation enters into derivative

Same applies as left.

transactions based on its risk management policies with theobjective of hedging risks in accordance with its Articles ofIncorporation.
(4) Method of evaluating the effectiveness of hedging(4) Method of evaluating the effectiveness of hedging

During the period from the commencement of hedging toSame applies as left.

the point at which effectiveness is assessed, the Investment
Corporation compares the cumulative total of market
changes in the targeted objects of hedging or cash flowchanges with the cumulative total of market changes in thehedging instruments or cash flow changes. The Investment
Corporation then makes a decision based on the changes
and other factors of the two.
However, the interest-rate swap agreements that meet thecriteria for special treatment, the evaluation of effectivenessare omitted.

-25-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

6. The scope of cash and cash

For the purpose of cash flow statements, cash and cash

equivalents on statements ofequivalents consist of cash on hand, deposits received thatcash flows

can be withdrawn on demand, and short-termSame applies as left.

investments with original maturities of three months or
less, that are readily convertible to known amounts ofcash and present insignificant risk of a change in value.
7. Other significant accounting(1) Accounting method for trust beneficiary interests in real

(1) Accounting method for trust beneficiary interests

policies utilized in the preparation

estate and other assets

in real estate and other assetsof financial statements

The assets and liabilities as well as revenues and expenses

Same applies as left.

of financial assets held in the form of trust beneficiaryinterests in real estate and other assets are recorded in full in
the Investment Corporation’s balance sheets and statements
of income.
Important line items included in accounting for financial
assets in the Investment Corporation’s balance sheet are as
follows:
1. Cash and deposits in trust

1. Same applies as left.

2. Buildings in trust, structures in trust, machinery and2. Same applies as left.

equipment in trust, tools, furniture and fixtures in trust,and land in trust
3. Right of using water facilities in trust

3. Leasehold rights in trust and right of using water

4. Tenant leasehold and security deposits in trust

facilities in trust
4. Lease and guarantee deposits in trust
5. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption

taxes

are

separately(2) Accounting method for consumption tax
recorded.

Non-deductible consumption taxes applicable to theacquisition of assets are included in the cost of acquisition
for each asset.

-26-

Same applies as left.

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Changes in Accounting Policy】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)①Accounting Standard for Asset Retirement Obligations
From the fiscal period under review, the Investment Corporation has
applied ―Accounting Standard for Asset Retirement Obligations‖(Accounting Standards Board of Japan (ASBJ) Statement No. 18; March
31, 2008) and ―Guidance on Accounting Standard for Asset Retirement
Obligations‖ (ASBJ Guidance No. 21; March 31, 2008). This does not
impact profit/loss.
②Accounting Method for Property Tax
Under the accounting method adopted for property-related taxes,
including property taxes, city planning taxes and depreciable property
taxes, for owned real estate, of the tax amount determined to be imposed,
the amount of taxes to be paid in the fiscal period under review used to be
charged to rental expenses (expenses related to rent business). As of the
fiscal period under review, the Investment Corporation changed theaccounting method to one under which, of the tax amount determined to
be imposed, the amount of taxes corresponding to the fiscal period underreview is charged to rental expenses (expenses related to rent business).
The recent increase in real estate and other acquisitions has increased thefinancial significance of the amount of property taxes, etc. charged to
expenses. The change in accounting method is thus being made to more
appropriately allocate expenses because the described circumstances are
expected to persist.
As a result, compared to the accounting method adopted prior to thechange, operating expenses increase by ¥67,895 thousand and operating
income, ordinary income and income before income taxes each decreaseby said amount.
【Additional Information】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)
The Investment Corporation concluded an agreement dated June 30, 2011 to sell
the KDX Hirakawacho Building on April 5, 2011.
Property Name

KDX Hirakawacho Building

Type of Specified Asset

Trust beneficiary interest in real estate

Location

1-4-12 Hirakawacho, Chiyoda-ku, Tokyo

SellerSanshin Co., Ltd.

Planned Sales Price¥5,800,000 thousand

The aforementioned planned sales price excludes sales costs, adjusted amounts
for property and city-planning tax, consumption tax, regional consumption tax,
etc.
Capital gains from the sale are estimated to be ¥535 million for the thirteenthfiscal period.

-27-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Balance Sheets】(Thousands of Yen)

Eleventh Fiscal Period

Twelfth Fiscal Period(October 31, 2010)(April 30, 2010)*1. Minimum unitholders’ equity pursuant to Article 67-4 of the Law*1. Minimum unitholders’ equity pursuant to Article 67-4 of the Law

Concerning Investment Trusts and Investment Corporations Law

Concerning Investment Trusts and Investment Corporations Law¥50,000

Same applies as left.

*2. Balance of undrawn credit facility
The Investment Corporation established credit facilities with financial
institutions. (Note)
Total credit facility

2,000,000

Drawn credit facility

2,000,000

Balance of Undrawn credit facility

－

Note:
The commitment period of the commitment line agreement (total commitmentline amount ¥2,000,000 thousand) concluded with The Bank ofTokyo-Mitsubishi UFJ, Ltd. has already expired. Furthermore, the expiration
date of the commitment line agreement is March 31, 2011, set in thememorandum of understanding executed on September 26, 2008. However,since the commitment period already expired, the Investment Corporation
can not undertake new borrowings.
*3. Assets pledged as collateral and secured loans payable*3. Assets pledged as collateral and secured loans payable
Assets pledged as collateral

Assets pledged as collateral

Cash and deposits

390,000

Cash and deposits

464,000

Cash and deposits in trust

4,694,003

Cash and deposits in trust

4,626,463

Buildings

7,040,275

Buildings

6,947,263

Structures

2,288

Structures

5,337

Machinery and equipment

12,160Machinery and equipment

14,164

7,891

Tools, furniture and fixtures

7,507

Tools, furniture and fixtures
Land
Buildings in trust
Structures in trust

12,547,562

Land

12,547,562

43,638,595

Buildings in trust

47,260,160

91,714Structures in trust

97,080Machinery and equipment in trust

506,717

Machinery and equipment in trust

493,645

Tools, furniture and fixtures in trust

124,371

Tools, furniture and fixtures in trust

127,528

Land in trust

104,993,667

Right of using water facilities in trust
Total

1,027

115,133,177

Right of using water facilities in trust

908

Total

174,050,274

Secured loans payable
Short-term loans payable

Land in trust

187,724,799

Secured loans payable
6,300,000

Short-term loans payable

8,700,000

Current portion of long-term loans payable

35,250,000

Current portion of long-term loans payable

27,460,000

Long-term loans payable

49,017,000

Long-term loans payable

64,555,500

90,567,000

Total

100,715,500

Total*4 The amount of advanced depreciation of property, plant and equipment
acquired by government subsidy
Building in trust-28-¥26,230

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Statements of Income】
Eleventh Fiscal Period(Thousands of Yen)
Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)*1. Breakdown of real estate rental business profit and loss

*1. Breakdown of real estate rental business profit and loss

A. Rental and other operating revenues

A. Rental and other operating revenues

Rental revenues

Rental revenues

Leasing income

5,861,093

Leasing income

5,908,063

Common area charges

1,298,267

Common area charges

1,300,172

Total

7,159,361

Total

7,208,235

OthersOthersParking space rental revenues

242,536

Parking space rental revenues

250,324

Utility charge reimbursement

742,082

Utility charge reimbursement

583,965

Miscellaneous

98,219Miscellaneous

94,391

Subtotal

1,082,839

Subtotal

928,681

Total rental and operating revenues

8,242,200

Total rental and operating revenues

8,136,917

B. Rental and other operating expenses

B. Rental and other operating expenses

Rental expenses

Rental expenses

Property management fees and facility management fees

804,754

Property management fees and facility management fees

811,786

Utilities

634,220

Utilities

561,061Taxes

648,652

Taxes

643,178

Repairs and maintenance costs

149,673

Repairs and maintenance costs

123,949

Insurance

16,134

Insurance

16,209Trust fees

41,817

Trust fees

42,317

Others81,042Others156,377

Depreciation

1,406,895

Depreciation
Loss on retirement of fixed assets

1,440,311
1,143

Loss on retirement of fixed assets

5,402

Total property-related expenses

3,817,751

Total property-related expenses

3,767,177

C. Rental business profit (A – B)

4,424,448

C. Rental business profit (A – B)

4,369,739*2. Gain and Loss on sale of real estate①KDX Shinjuku-Gyoen Building
Revenue from sale of the investment property

1,710,000

Costs of the investment property

1,569,750

Other sales’ expenses

23,852Gain on sale of real estate

116,396②Court Shin-Okachimachi
Revenue from sale of the investment property

790,000

Costs of the investment property

836,434

Other sales’ expenses

17,914

Loss on sale of real estate

64,348-29-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Statements of Changes in Unitholders’ Equity】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

Total number of authorized investment units and total number ofinvestment units issued and outstanding・Total number of authorized investment units

2,000,000 units

2,000,000 units

・Total number of investment units issued and outstanding

233,550 units

233,550 units【Notes to the Statements of Cash Flow】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)*Reconciliation of balance sheet items to cash and cash equivalents at end of*Reconciliation of balance sheet items to cash and cash equivalents at end of

period in the cash flows statements.

period in the cash flows statements.

(As of October 31, 2010)(Thousands of Yen)

(As of April 30, 2011)(Thousands of Yen)

Cash and bank deposits

10,416,712

Cash and bank deposits

7,925,308

Cash and deposits in trust

5,828,961

Cash and deposits in trust

5,869,654

Restricted bank deposits held in trust (Note 1)- 488,624

Restricted bank deposits held in trust (Note 1)-510,936

Longer than 3 months fixed deposits (Note 2)- 390,000

Longer than 3 months fixed deposits (Note 2)-464,000

Cash and cash equivalents

15,367,049

Cash and cash equivalents

Note 1: Restricted bank deposits held in trust are retained for repayment ofNote 1: Restricted bank deposits held in trust are retained for repayment of

tenant leasehold and security deposits held in trust.

tenant leasehold and security deposits held in trust.

Note 2: Longer than 3 months fixed deposits are fixed deposit which have a

Note 2: Longerr than 3 months fixed deposits are fixed deposit which have adeposit term longer than 3 months.

deposit term longer than 3 months.

【Notes to the Lease Transactions】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)
Operating lease transactions

12,820,027(November 1, 2010 to April 30, 2011)(Thousands of Yen)

Operating lease transactions(Lessor)(Lessor)

Unearned lease payments

Unearned lease payments(Thousands of Yen)

Due within one year

1,178,139

Due within one year

1,008,045

Due after one year

7,068,297 Due after one year

5,892,331

8,246,436

6,900,376

Total

-30-

Total

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Financial Instruments】
Eleventh Fiscal Period (May 1, 2010 to October 31, 2010)
1. Items with Regard to the current status of Financial Instruments(1) Action Policy with Regard to Financial Instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bank loans and the issuanceof corporate bonds and new investment accounts. The Investment Corporation makes use of derivative instruments primarily as a risk hedge against interest rate
fluctuations and to lessen interest rate payments. In addition, it is company policy to not conduct speculative derivative transactions. Management of surplus funds isundertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Financial Instruments and Respective Risks
Loans and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a maximumof seven years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risks, the Investment Corporation
utilizes derivative instruments (interest-rate swap transactions) in order to hedge against such risks.
Derivative instruments are interest-rate swap transactions that are used to hedge against interest rate fluctuation risks. Utilizing interest-rate swap transactions, theInvestment Corporation fixed its interest payments for funds procured on a floating interest rate basis. With regard to hedge accounting methods, hedging instruments
and hedged items, hedge policy, and the method of evaluation of hedge effectiveness, please see 4. Hedge Accounting Method in notes concerning ImportantAccounting Standards.
(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in Interest Rates and Others)
The Investment Corporation uses interest-rate swap transactions in order to minimize risks associated with interest payment rate fluctuations on funds procured.
B. Management of Liquidity Risk (Risk of Defaulting on Payments by the Due Date) Associated with Funds Procurement
Although loans and other liabilities are subject to liquidity risks, the Investment Corporation reduces such risks by spreading out payment due dates and byusing diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplemental Explanation of Items with Regard to Fair Value of Financial Instruments
Included in the fair value of financial products are market prices, or, in the event market prices are not available, prices that are calculated on a rational basis. Because
the factors incorporated into the calculation of these prices are subject to change, differing assumptions are adopted which may alter fair value.

2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference as of October 31, 2010 are as follows:Book Value
Fair Value(Thousands of Yen)
(Thousands of Yen)
(1) Cash and deposits
10,416,712
10,416,712(2) Cash and deposits in trust
5,828,961
5,828,961
Total assets
16,245,673
16,245,673(1) Short-term loans payable
6,300,000
6,300,000(2) Investment corporation bonds
12,000,000
11,700,300(3) Long-term loans payable
84,267,000
83,766,880
Total liabilities
102,567,000
101,767,180
Derivative Transaction
Items that do not apply hedge accounting
Items that apply hedge accounting- 7,420- 7,420
Total derivative transactions- 7,420- 7,420

Difference(Thousands of Yen)
- 299,700- 500,120- 799,820

Note 1: Items with regard to the calculation method of financial instrument fair value together with investment securities and derivative transactions
Assets(1) Cash and deposits (2) Cash and deposits in trust
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used to determine fair value.
Liabilities(1) Short-term loans payable
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used to determine fair value.

-31-

-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Investment corporation bonds
The fair value of investment corporation bonds is based on market prices.
(3) Long-term loans payable
The fair value of long-term borrowings is calculated based on the present value that discounts the total amount of principal and interest by using the estimated interest
rate in the event that the Investment Corporation conducts new borrowings of the same type. Among interest rate fluctuations on long-term borrowings, saidborrowings—which are subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps—are calculated by discounting thetotal amount of principal and interest, which is handled together with applicable interest-rate swaps, by the rationally estimated interest rate in the case that the same typeof borrowings are undertaken.
Derivative Transaction
Please refer to the aforementioned ―Derivative Transaction.‖
Note 2: Amount of redemption of monetary claims
Less than or equal to 1 year
(Thousands of Yen)
Cash and deposits
10,416,712
Cash and deposits in trust
5,828,961
Total
16,245,673
Note 3: Investment corporation bonds, repayment of loans, planned repayment amountLess than or Equal to 1 yr.
1-2 yrs.
(Thousands of Yen)
(Thousands of Yen)
Short-term loans payable
6,300,000
Investment corporation bonds
9,000,000
Long-term loans payable
35,250,000
15,410,000
3-4 yrs.
(Thousands of Yen)
Short-term loans payable
Investment corporation bonds
Long-term loans payable

4-5 yrs.
(Thousands of Yen)

7,400,000

8,327,000

2-3 yrs.
(Thousands of Yen)
12,880,000
More than 5 yrs.
(Thousands of Yen)
3,000,000
5,000,000

Twelfth Fiscal Period (November 1, 2010 to April 30, 2011)
1. Items with Regard to the current status of Financial Instruments(1) Action Policy with Regard to Financial Instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bank loans and the issuanceof corporate bonds and new investment accounts. The Investment Corporation makes use of derivative instruments primarily as a risk hedge against interest rate
fluctuations and to lessen interest-rate payments. In addition, it is company policy to not conduct speculative derivative transactions. Management of surplus funds isundertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Financial Instruments and Respective Risks
Loans and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a maximumof seven years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risks, the Investment Corporation
utilizes derivative instruments (interest-rate swap transactions) in order to hedge against such risks.
Derivative instruments are interest-rate swap transactions that are used to hedge against interest rate fluctuation risks. Utilizing interest-rate swap transactions, theInvestment Corporation fixed its interest payments for funds procured on a floating interest rate basis. With regard to hedge accounting methods, hedging instruments
and hedged items, hedge policy, and the method of evaluation of hedge effectiveness, please see 4. Hedge Accounting Method in notes concerning ImportantAccounting Standards.
(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in Interest Rates and Others)
The Investment Corporation uses interest-rate swap transactions in order to minimize risks associated with interest payment rate fluctuations on funds procured.

-32-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

B. Management of Liquidity Risk (Risk of Defaulting on Payments by the Due Date) Associated with Funds Procurement
Although loans and other liabilities are subject to liquidity risks, the Investment Corporation reduces such risks by spreading out payment due dates and byusing diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplemental Explanation of Items with Regard to Fair Value of Financial Instruments
Included in the fair value of financial products are market prices, or, in the event market prices are not available, prices that are calculated on a rational basis. Because
the factors incorporated into the calculation of these prices are subject to change, differing assumptions are adopted which may alter fair value.

2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference as of April 30, 2011 are as follows:Book Value
Fair Value(Thousands of Yen)
(Thousands of Yen)
(1) Cash and deposits
7,925,308
7,925,308(2) Cash and deposits in trust
5,869,654
5,869,654
Total assets
13,794,963
13,794,963(1) Short-term loans payable
8,700,000
8,700,000(2) Investment corporation bonds
12,000,000
11,737,200(3) Long-term loans payable
92,015,500
91,186,358
Total liabilities
112,715,500
111,623,558
Derivative Transaction-

Difference(Thousands of Yen)
-262,800-829,142-1,091,942-

Note 1: Items with regard to the calculation method of financial instrument fair value together with investment securities and derivative transactions.
Assets(1) Cash and deposits, (2) Cash and deposits in trust
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used to determine fair value.
Liabilities(1) Short-term loans payable
Because these are settled in the short-term, the fair value can be considered as equivalent to the book value; therefore, the book value is used to determine fair value.

(2) Investment corporation bonds
The fair value of investment corporation bonds is based on market prices.
(3) Long-term loans payable
The fair value of long-term borrowings is calculated based on the present value that discounts the total amount of principal and interest by using the estimated interest
rate in the event that the Investment Corporation conducts new borrowings of the same type. Among interest rate fluctuations on long-term borrowings, saidborrowings—which are subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps—are calculated by discounting thetotal amount of principal and interest, which is handled together with applicable interest-rate swaps, by the rationally estimated interest rate in the case that the same typeof borrowings are undertaken.
Derivative Transaction
Please refer to the aforementioned ―Derivative Transaction.‖
Note 2: Amount of redemption of monetary claims
Less than or equal to 1 year
(Thousands of Yen)
Cash and deposits
7,925,308
Cash and deposits in trust

5,869,654

Total

13,794,962-33-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Note 3: Investment corporation bonds, repayment of loans, planned repayment amountLess than or Equal to 1 yr.
1-2 yrs.
(Thousands of Yen)
(Thousands of Yen)
Short-term loans payable
8,700,000
Investment corporation bonds
9,000,000
Long-term loans payable
27,460,000
11,920,000
3-4 yrs.
(Thousands of Yen)
Short-term loans payable
Investment corporation bonds
Long-term loans payable

4-5 yrs.
(Thousands of Yen)

14,515,500

2-3 yrs.
(Thousands of Yen)
17,320,000
More than 5 yrs.
(Thousands of Yen)

17,800,000【Notes to the Marketable Securities】
Eleventh Fiscal Period

3,000,000
3,000,000

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

The Investment Corporation has not undertaken transactions in marketable

Same applies as left.

securities. Accordingly, there is no information to disclose.
【Notes to the Derivative Transactions】
Eleventh Fiscal Period (May 1, 2010 to October 31, 2010)(1) Items that do not apply hedge accounting
Not applicable(2) Items that apply hedge accounting
Hedge accounting
methodAccounting method, in principle
Special treatment of interest-rate
swaps

Type of Derivative Transactions
Interest-rate swap transaction
Fixed rate payable
Floating rate receivable
Interest-rate swap transaction
Fixed rate payable
Floating rate receivable

Long-term loans payable

Long-term loans payable

Contracted amount(Thousands of Yen)
More than 1 yr.
1,500,000
14,000,000

Hedge accounting
methodMain target risk hedge

Fair value
Calculation method for applicable(Thousands
fair valueof Yen)- 7,420*1

Accounting method, in principle
Special treatment of interest rate
4,500,000
*2
swaps
Total
15,500,000
4,500,000- 7,420*1 In accordance with the amount provided by counterparty financial institutions.
*2 Special treatment of interest-rate swaps are reported at the fair value of applicable long-term loans payable. This is because such swaps are handled together
with hedged long-term loans payable.
Twelfth Fiscal Period (November 1, 2010 to April 30, 2011)(1) Items that do not apply hedge accounting
Not applicable(2) Items that apply hedge accounting
Hedge accounting
methodSpecial treatment of interest-rate
swaps

Type of Derivative Transactions
Interest-rate swap transaction
Fixed rate payable
Floating rate receivable

Main target risk hedge
Long-term loans payable-34-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Hedge accounting
methodContracted amount(Thousands of Yen)
More than 1 yr.
10,000,000

Fair value(Thousandsof Yen)Calculation method for applicablefair value

Special treatment of interest-rate
1,000,000
*
swaps
Total
10,000,000
1,000,000* Special treatment of interest-rate swaps are reported at the fair value of applicable long-term loans payable. This is because such swaps are handled together withhedged long-term loans payable.

【Notes to the Retirement Payment】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

The Investment Corporation does not maintain a retirement payment system.

Same applies as left.

Accordingly, there is no information to disclose.
【Asset Retirement Obligations】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

Not applicable

Same applies as left.

-35-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Segment and Related Information】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

1. Segment Information

1. Segment Information

Disclosure is omitted because the real estate leasing business is the Investment

Same applies as left.

Corporation’s sole business and it has no reportable segment subject todisclosure.
2. Related Information

2. Related Information(1) Information about each product and service(1) Information about each product and service

Disclosure is omitted because net sales to external customers for a single

Same applies as left.

product/service category account for over 90% of the operating revenue on thestatement of income.
(2) Information about each geographic area(2) Information about each geographic area

A. Net sales

A. Net sales

Disclosure is omitted because net sales to external customers in Japan accountSame applies as left.

for over 90% of the operating revenue on the statement of income.
B. Property, plant and equipment

B. Property, plant and equipment

Disclosure is omitted because the amount of property, plant and equipment

Same applies as left.

located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
(3) Information about each major customer(3) Information about each major customer

Disclosure is omitted because net sales to a single external customer account forSame applies as left.

less than 10% of the operating revenue on the statement of income.
(Additional Information)
From the fiscal period under review, the Investment Corporation has applied―Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information‖ (ASBJ Statement No. 17; March 27, 2009) and―Guidance on Accounting Standard for Disclosures about Segments of anEnterprise and Related Information‖ (ASBJ Guidance No. 20; March 21,2008).
Disclosure of segment information for the previous fiscal period in accordancewith the Accounting Standard, etc. is omitted because the real estate leasing
business is the Investment Corporation’s only segment.

-36-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Tax-Effect Accounting】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

1.Principal deferred tax assets and liabilities(Thousands of Yen)

1.Principal deferred tax assets and liabilities(Deferred tax assets)(Thousands of Yen)

(Deferred tax assets)

Enterprise tax payable not included in expenses

10

Unrealized loss from deferred hedge transactions

2,918

Total deferred tax assets

2,929Enterprise tax payable not included in expenses

39

Amortization of leasehold rights in trust

253

Subtotal deferred tax assets
Valuation Allowance-253

Total deferred tax assets
2. Significant difference between statutory
income tax rate and the effective tax rate
Statutory tax rate

293

39

2. Significant difference between statutory
(%)
39.33

(Adjustments)

income tax rate and the effective tax rate
Statutory tax rate

(%)
39.33

(Adjustments)

Deductible cash distributions-38.32

Deductible cash distributions

Others- 0.97

Others0.04

Effective tax rate

0.04

Effective tax rate

0.06

【Equity-Method Income and Retained Earnings】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2009 to April 30, 2011)

The Investment Corporation has no affiliated companies accounted for underthe equity-method. Accordingly, there is no information to disclose.

-37-

Same applies as left.

- 39.31KENEDIX REALTY INVESTMENT CORPORATION (8972)【Related-Party Transactions】
Eleventh Fiscal Period (May 1, 2010 to October 31, 2010)
1．Parent Company, corporate shareholders and other:None

2. Affiliated companies and other: None
3. Fellow subsidiary companies and other: None
4. Directors, individual shareholders and other
Ratio of Possession
Attributes

NameBusiness Activities / Positionof Voting Rights

Details of Business(%)
Board ofDirectors andClose Relatives

Executive Director for the
TaisukeInvestment Corporation and

Miyajima

CEO and President of Kenedix
REIT Management, Inc.

Deal Amount Accounting(¥Thousands)

Term

Possession ofPayment of asset management

470,533 Accounts

Right

fee to Kenedix REIT

(Note 2)

PayableDirect 0.0％

Management, Inc. (Note 1)(Note 4)-otherBalance of
Period End(¥Thousands)
84,718(Note 4)

Payment of business
As above

As above

As above

As aboveconsignment fee to Kenedix

1,500

REIT Management, Inc.

(Note4)－－(Note 3)As above

As above

As above

As above

Payment of property

304,690 Accounts

54,543management fee to Kenedix(Note 4)(Note 4)

PayableREIT Management, Inc.
(Note 5)

Notes:
1.Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
2.Asset management fee include ¥12,500 thousand management fee related to the acquisition of property are accounted for in the book value for the individual
real estate.
3.Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, ―Operating Agency
Agreement‖ between the Investment Corporation and Kenedix REIT Management, Inc.
4.Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5.Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, ―Property
Management Agreement‖ between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥11,324 thousand
related to the acquisition of property are accounted for in the book value, and ¥3,800 thousand related to the sale of properties are accounted for in sales
expense for the individual real estate.

Twelfth Fiscal Period (November 1, 2010 to April 30, 2011)
1．Parent Company, corporate shareholders and other:None

2. Affiliated companies and other: None
3. Fellow subsidiary companies and other: None
4. Directors, individual shareholders and other
Ratio of Possession
Attributes

NameBusiness Activities / Positionof Voting Rights

Details of Business(%)
Board ofDirectors andClose Relatives

Executive Director for the
TaisukeInvestment Corporation and

Miyajima

CEO and President of Kenedix
REIT Management, Inc.

Deal Amount Accounting(¥Thousands)

Term

Possession ofPayment of asset management

500,806 Accounts

Right

fee to Kenedix REIT

(Note 2)

PayableDirect 0.0％

Management, Inc. (Note 1)(Note 4)-otherBalance of
Period End(¥Thousands)
75,060(Note 4)

Payment of business
As above

As above

As above

As aboveconsignment fee to Kenedix

6,500

REIT Management, Inc.

(Note4)(Note 3)

-38-

－

－

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Ratio of Possession
Attributes

NameBusiness Activities / Positionof Voting Rights

Details of Business(%)

As above

As above

As above

As above

Deal Amount Accounting(¥Thousands)

Term

Payment of property

313,752 Accounts

management fee to Kenedix(Note 4)

PayableBalance of
Period End(¥Thousands)
65,086(Note 4)REIT Management, Inc.
(Note 5)

Notes:
1. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
2. Asset management fee include ¥58,700 thousand sales fee related to the sale of property are accounted for in the sales expense for the individual real estate.
3. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, ―Operating Agency
Agreement‖ between the Investment Corporation and Kenedix REIT Management, Inc.
4. Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5. Taisuke Miyajima served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, ―Property
Management Agreement‖ between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥28,522 thousand
related to the acquisition of property are accounted in book value for the individual real estate..
【Fair Value of Real Estate for Rental Purposes】
Eleventh Fiscal Period (May 1, 2010 to October 31, 2010)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenue.
The book value per balance sheet for the fiscal period under review and fair value concerning the above real estate for rental purposes are as follows:Book Value (Thousands of Yen)
Fair value at the end of current period(Thousands of Yen)
Balance at the end of previous period
Changes during the period
Balance at the end of current period
237,204,249- 3,479,142
233,725,107
209,597,000
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period under review is the appraisal value determined by outside appraisers.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increases were the sales of realestate trust beneficiary interests to two properties totaling ¥2,406,185 thousand, and depreciation amounting to ¥1,440,311 thousand.
Income and loss in the fiscal period ended October 31, 2010 for real estate for rental purposes is listed in Notes Concerning Statements of Income.
Twelfth Fiscal Period (November 1, 2010 to April 30, 2011)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenue.
The book value per balance sheet for the fiscal period under review and fair value concerning the above real estate for rental purposes are as follows.
Book Value (Thousands of Yen)
Fair value at the end of current period(Thousands of Yen)
Balance at the end of previous period
Changes during the period
Balance at the end of current period
233,725,107
12,462,272
246,187,379
222,664,000
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period under review is the appraisal value determined by outside appraisers. KDX Hirakawacho Building is calculated
based on the sales price of ¥5,800 million under the sales and purchase agreement dated April 5, 2011.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increases were the sales of realestate trust beneficiary interests to four properties totaling ¥13,298,226 thousand, and depreciation amounting to ¥1,406,895 thousand.
Income and loss in the fiscal period ended October 31, 2010 for real estate for rental purposes is listed in Notes Concerning Statements of Income.

-39-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Information per Unit】
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

Unitholders’ Equity per Unit

¥581,170

Unitholders’ Equity per Unit

¥580,199

Net Income per Unit

¥ 11,162

Net Income per Unit

¥ 9,890

Net Income per Unit is calculated by dividing Net Income by the weighted

Net Income per Unit is calculated by dividing Net Income by the weighted

average (based on number of days) number of units.

average (based on number of days) number of units.

Net income per unit after adjusting for residual units is not included because

Net income per unit after adjusting for residual units is not included because

there were no residual investment units.

there were no residual investment units.

Note: The calculation for the net income per unit is as follow.
Eleventh Fiscal Period

Twelfth Fiscal Period(May 1, 2010 to October 31, 2010)(November 1, 2010 to April 30, 2011)

Net Income (¥ thousand)

2,607,056

2,309,995－－

Net income for ordinary units (¥ thousand)

2,607,056

2,309,995

Average number of units during the period (unit)

233,550

233,550

Amount not vested in ordinary investors (¥ thousand）【Important Subsequent Events】
Eleventh Fiscal Period(May 1, 2010 to October 31, 2010)

Not applicable

Twelfth Fiscal Period(November 1, 2010 to April 30, 2011)
Same applies as left.

-40-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（7）Movements in Investment Units Issued and Outstanding
Movements in unitholders’ capital and the number of investment units issued and outstanding since first fiscal periods are summarized in thefollowing table.
Settlement Date

Particulars

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

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

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)400
75,0003,970
73,6603,970
40,9002,100
33,550Unitholders’ Capital(Millions of Yen)
Increase
Balance(Decrease)400
75,40079,370153,030
157,000
197,900
200,000
233,550200
41,8682,216
42,171
2,272
34,474
1,770
8,156

200
42,06844,28586,45688,729123,203
124,973
133,129

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

4. Resignation/Appointment of the Directors
During the twelfth fiscal period (fiscal period ended April 30, 2011), there was no resignation/appointment of Directors.

-41-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Reference Information（1）Component of Assets
Eleventh Fiscal Period(As of October 31, 2010)

Type of

Type

Specified Asset

Real Estate

Area

Office Buildings

Total Amount Held

Ratio

Total Amount Held

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

Tokyo Metropolitan Area

30,51012.2

30,394

11.6

Other Regional Areas

12,5395.0

12,4504.8

43,05017.1

42,845

16.4

Tokyo Metropolitan Area

150,075

59.8

158,143

60.4

Other Regional Areas

18,9507.5

23,7009.0

169,02667.3

181,843

69.4

Tokyo Metropolitan Area

7,329

2.9

7,262

2.8

Other Regional Areas

1,875

0.7

1,852

0.7

9,204

3.7

9,114

3.5

Total for Real Estate
Office Buildings
Trust
BeneficiaryInterest in Real
EstateTotal for Office Buildings
Residential Properties
Total for Residential Properties
Central Urban Retail Properties

Twelfth Fiscal Period(As of April 30, 2011)

12,443

5.0

12,383

4.7

Total of Trust Beneficiary Interests in Real EstateTokyo Metropolitan Area

190,67475.9

203,341

77.6

Bank Deposits and Other Assets

17,354

6.9

15,741

6.0

Total Assets

251,080100.0

261,928

100.0

Notes:
1. ―Total Amount Held‖ is the amount allocated in the balance sheets at the end of the period (figures are on a net book value basis after deducting depreciation), andis rounded down to the nearest ¥1 million.
2. ―Ratio‖ is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.

Eleventh Fiscal Period(As of October 31, 2010)
Price (Millions of Yen)
Ratio (%)
Total of Liabilities
Total Unitholders’ Equity
Total of Assets

Twelfth Fiscal Period(As of April 30, 2011)
Price (Millions of Yen)
Ratio (%)

115,34745.9

126,42348.3

135,73254.1

135,505

51.7

251,080100.0

261,928

100.0

-42-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（2） Properties Roster①The Price of the Investment Properties and the Investment Ratio(Millions of Yen)
Appraisal Value at the end of Twelfth Fiscal Period

Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

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

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
（Note5）A-60

KDX Harumi Building

10,250

9,845

10,000

10,200

4.9

9,800

4.6

5.0

A

4.1

A-40

Toranomon Toyo Building

9,850

9,867

9,690

9,890

4.7

9,480

4.5

5.0

A

3.9

A-46

Hiei Kudan-Kita Building

7,600

7,594

7,560

7,890

4.8

7,420

4.6

5.0

B

3.0

A-66

KDX Shinjuku Building

6,800

6,872

6,560

6,620

4.7

6,500

4.5

4.9

A

2.7

A-37

KDX Ochanomizu Building

6,400

6,690

6,460

6,550

4.9

6,360

4.7

5.1

A

2.5

A-32

KDX Shiba-Daimon Building

6,090

6,234

4,880

4,910

5.1

4,850

4.9

5.3

A

2.4

A-13

KDX Kojimachi Building

5,950

5,665

4,230

4,270

4.6

4,190

4.4

4.8

A

2.4

A-1

KDX Nihonbashi 313 Building

5,940

6,147

7,170

7,340

4.9

7,090

4.7

5.1

B

2.4

A-47

KDX Shin-Yokohama 381 Building(Note 6)

5,800

5,899

4,210

4,240

5.8

4,170

5.6

6.0

A

2.3

A-16

Toshin-24 Building

5,300

5,148

4,240

4,300

5.7

4,180

5.5

5.9

A

2.1

A-2

KDX Hirakawacho Building (Note 7)

5,180

5,130

4,910

5,090

4.8

4,830

4.6

5.0

B

2.1

A-17

Ebisu East 438 Building

4,640

4,564

4,150

4,170

5.2

4,130

4.9

5.4

A

1.8

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,399

5,180

5,240

5.1

5,110

4.9

5.3

A

1.8

A-39

KDX Toranomon Building

4,400

4,816

3,540

3,570

4.5

3,500

4.3

4.7

A

1.7

A-67

Kyodo Building (Ginza No.8)

4,300

4,323

4,590

4,700

4.6

4,540

4.4

4.8

B

1.7

A-30

KDX Nishi-Gotanda Building

4,200

4,092

3,750

3,780

5.2

3,710

5.1

5.5

A

1.7

A-68

Kyodo Building (Honcho 1chome)

4,000

4,024

4,330

4,380

4.9

4,310

4.7

5.1

B

1.6

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,843

3,410

3,410

6.3

3,410

5.9

6.5

A

1.5

A-4

KDX Hatchobori Building

3,680

3,371

3,380

3,400

5.1

3,370

4.9

5.3

B

1.4

A-18

KDX Omori Building

3,500

3,393

3,650

3,680

5.5

3,620

5.3

5.7

A

1.4

A-19

KDX Hamamatsucho Building

3,460

3,285

3,180

3,290

4.8

3,130

4.6

5.0

B

1.4

A-45

KDX Roppongi 228 Building

3,300

3,440

2,130

2,160

4.9

2,100

4.6

5.0

A

1.3

A-62

Koishikawa TG Building

3,080

3,153

3,200

3,230

5.2

3,170

5.0

5.4

A

1.2

A-29

KDX Higashi-Shinjuku Building

2,950

3,175

3,320

3,400

5.3

3,290

5.1

5.5

B

1.1

A-20

KDX Kayabacho Building

2,780

2,838

3,180

3,180

5.4

3,170

5.1

5.6

A

1.1

A-56

KDX Jimbocho Building

2,760

2,914

1,790

1,800

5.6

1,770

5.2

5.7

A

1.1

A-49

Nissou Dai-17 Building

2,710

2,645

1,600

1,620

5.8

1,570

5.6

6.0

A

1.0

A-21

KDX Shinbashi Building

2,690

2,657

2,840

2,850

4.7

2,820

4.3

4.9

A

1.0

A-63

Gotanda TG Building

2,620

2,812

2,520

2,530

5.5

2,500

5.2

5.6

A

1.0

A-5

KDX Nakano-Sakaue Building

2,533

2,451

2,350

2,370

5.5

2,340

5.3

5.7

B

1.0

A-22

KDX Shin-Yokohama Building

2,520

2,483

2,340

2,360

5.9

2,310

5.7

6.1

A

1.0

A-6

Harajuku F.F. Building

2,450

2,446

2,910

2,930

5.7

2,880

5.5

5.9

A

0.9

A-50

Ikejiri-Oohashi Building

2,400

2,471

1,620

1,640

6.0

1,600

5.8

6.2

A

0.9

A-27

KDX Kajicho Building

2,350

2,403

2,280

2,340

5.2

2,260

5.0

5.4

B

0.9

A-51

KDX Hamacho Nakanohashi Building

2,310

2,365

1,680

1,700

5.5

1,660

5.3

5.7

A

0.9

A-15

KDX Hamacho Building

2,300

2,273

2,390

2,400

5.4

2,370

5.2

5.6

A

0.9

A-41

KDX Shinjuku 286 Building

2,300

2,340

2,100

2,120

5.2

2,070

5.0

5.4

A

0.9

A-7

FIK Minami Aoyama

2,270

2,257

2,110

2,140

4.9

2,080

4.7

5.1

A

0.9

A-14

KDX Funabashi Building

2,252

2,430

1,980

1,980

6.1

1,970

5.9

6.3

A

0.9

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,261

1,920

1,960

4.7

1,900

4.5

4.9

B

0.8

-43-

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

Type

Area

No.

Property Name

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
（Note5）

A-55

Shin-toshin Maruzen Building

2,110

2,160

1,570

1,570

5.5

1,560

5.1

5.7

A

0.8

A-64

KDX Nihonbashi 216 Building

2,010

1,992

1,850

1,870

4.9

1,820

4.7

5.1

A

0.8

A-33

KDX Okachimachi Building

2,000

2,134

1,790

1,830

5.2

1,770

5.1

5.4

B

0.8

A-57

KDX Gobancho Building

1,951

1,997

1,480

1,500

5.1

1,460

4.9

5.3

A

0.7

A-8

Kanda Kihara Building

1,950

1,863

1,870

1,910

5.1

1,850

4.9

5.3

B

0.7

A-23

KDX Yotsuya Building

1,950

1,998

2,360

2,380

5.5

2,340

5.3

5.7

A

0.7

Tokyo
A-59
Metropolitan
Area
A-26

KDX Iwamoto-cho Building

1,864

1,821

1,330

1,340

5.5

1,320

5.3

5.7

A

0.7

KDX Kiba Building

1,580

1,580

1,550

1,560

5.8

1,540

5.6

6.0

A

0.6

A-38

KDX Nishi-Shinjuku Building

1,500

1,530

1,220

1,230

5.3

1,210

5.1

5.5

A

0.6

A-31

KDX Monzen-Nakacho Building

1,400

1,420

1,270

1,300

5.6

1,260

5.4

5.8

B

0.5

A-52

KDX Kanda Misaki-cho Building

1,380

1,381

990

1,000

5.4

980

5.2

5.6

A

0.5

A-34

KDX Hon-Atsugi Building

1,305

1,202

1,070

1,060

6.3

1,070

6.1

6.5

B

0.5

A-35

KDX Hachioji Building

1,155

1,294

821

821

5.9

821

5.7

6.1

B

0.4

A-28

KDX Nogizaka Building

1,065

1,125

833

841

5.5

825

5.3

5.7

A

0.4

A-58

KDX Nagoya Sakae Building

7,550

7,630

4,710

4,840

5.2

4,660

5.0

5.4

B

3.0

A-12

Portus Center Building

5,570

4,682

4,590

4,600

6.4

4,580

6.2

6.6

B

2.2

A-42

Karasuma Building

5,400

5,431

5,020

5,120

5.6

4,970

5.4

5.8

B

2.1

A-53

KDX Hakata-Minami Building

4,900

4,819

3,690

3,730

6.5

3,650

6.3

6.7

A

1.9

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,847

2,970

3,000

6.9

2,940

5.3

7.3

A

1.1

A-54

KDX Kitahama Building

2,220

2,224

1,670

1,670

6.0

1,670

5.6

6.2

A

0.9

A-44

KDX Sendai Building

2,100

2,167

1,440

1,430

6.1

1,450

6.1

6.3

B

0.8

A-70

Kitananajo SIA Building

2,005

2,034

2,050

2,100

5.8

2,030

5.6

6.0

B

0.8

A-24

KDX Minami Semba Dai-1 Building

1,610

1,476

1,060

1,060

5.8

1,050

5.6

6.0

A

0.6

A-25

KDX Minami Semba Dai-2 Building

1,560

1,379

1,130

1,140

5.8

1,120

5.6

6.0

A

0.6

A-36

KDX Niigata Building

1,305

1,455

872

885

7.3

859

7.1

7.5

A

0.5

Subtotal of Office Buildings (65 properties)

224,636-

91.1

OfficeBuildings

Other
Regional
Areas

Other
Regional
Areas-

200,335

-

-

5,064

4,480

4,520

5.3

4,440

5.1

5.5

A

2.1

1,250

1,182

951

955

5.5

946

5.3

5.7

A

0.5

1,038

1,014

937

944

5.8

929

5.6

6.0

A

0.4

1,800

1,852

1,400

1,400

7.1

1,400

6.9

7.3

A

0.7

9,441

9,114

7,768

7,819

7,715

-

-

3.8

C-1 Frame Jinnan-zaka

9,900

9,853

9,550

9,600

4.7

9,490

4.4

4.8

A

4.0

C-2 KDX Yoyogi Building

2,479

2,530

1,920

1,920

5.3

1,910

4.9

5.5

A

1.0

11,470

B-18 Venus Hibarigaoka

Subtotal of Residential Properties (4 properties)
Tokyo
Metropolitan
Area224,688 202,536 205,417

5,353

B-19 Residence Charmante Tsukishima
Tokyo
Metropolitan B-3 Court Mejiro
Area
Residential
B-34 Gradito Kawaguchi
Properties

CentralUrban
RetailProperties

Acquisition
Price（Note 1）--

Subtotal of Central Urban Retail Properties (2 properties)

12,37912,383

11,520-11,400

-

-

-

5.0

Total of 71 properties

246,456

246,187 221,774 224,756-

219,450

-

-

-

100.0

Notes:
1. Acquisition price is the purchase price for trust beneficiary interests or properties acquired by the Investment Corporation (excluding acquisition costs,
property tax, city-planning tax, and consumption tax, etc., rounded down to the nearest million yen.).
2. Figures of less than1 million are rounded down from the amounts on the balance sheet.
3. Appraisal values (end of the twelfth fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation’s Articles ofIncorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports prepared by Japan
Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd.

-44-KENEDIX REALTY INVESTMENT CORPORATION (8972)

4. As of the fiscal period under review, appraisals of the properties are entrusted to two appraisers: Japan Real Estate Institute and Daiwa Real Estate Appraisal
Co., Ltd. In the table, the appraisers are referred to as ―A‖ for Japan Real Estate Institute and ―B‖ for Daiwa Real Estate Appraisal Co., Ltd.
5. Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest first decimal place.
The figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices of properties corresponding toeach subtotal and total column by the total acquisition price of the entire assets (71 properties).
6. KDX Shin-Yokohama 381 Building: Starting from disclosures pertaining to the fiscal period ended October 2010, A-47 KDX Shin-Yokohama 381 Building(existing tower) (acquisition price: ¥4,700 million) and A-65 KDX Shin-Yokohama 381 Building Annex Tower (acquisition price: ¥1,100 million) areindicated collectively as one property. Same applies below.
7. The Investment Corporation plans to sell KDX Hirakawacho Building on June 30, 2011. Same applies below.

② Property Distribution
Property TypesType

Number of Properties

Office Buildings
Residential Properties
Central Urban Retail Properties
Total

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

65
4
2

224,636
9,441
12,379

91.1
3.8
5.0

71

246,456

100.0

Geographic Distribution
Area

Number of Properties

Tokyo Metropolitan Area
Other Regional Areas
Total

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

59
12

207,566
38,890

84.2
15.7

71

246,456100.0

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

Number of Properties

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

Acquisition Price（Millions of Yen）

Ratio (Note) (%)

33
22
11
4
1

61,42076,10363,78334,900
10,250

24.9
30.8
25.8
14.1
4.1

71

246,456100.0

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

-45-

KENEDIX REALTY INVESTMENT CORPORATION (8972)③ Details of Investment Real Estate and Trust Real Estate
A. Overview of Investment Real Estate Properties and Trust Real Estate
Type

Area

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

PML（㎡）(Note1)(Note 2)（㎡）(Note 3)(Note 4)(Note 5)(%) (Note 6)

Offices,A-60

KDX Harumi Building

2,230.69

S・SRC
12,694.32

Retail Shops
Bank, Offices
A-40

Toranomon Toyo Building

869.01

1,844.83

1,118.12

1,515.28

May 1993

1.78

August1982

2.97

July 1986

7.60

May 1994

3.60

April 1974

9.50

B4F11

Offices, Storage, Retail Shops
KDX Ochanomizu Building

3.14

SRC
10,348.02

Parking

A-37

March 1988
B1F11

Offices, Retails Shops
KDX Shinjuku Building

13.06

SRC･S
11,425.31

Parking, Storage, Offices

A-66

August 1962
B2F9

Retail Shops, Office Room
Hiei Kudan-Kita Building

5.60

RC
8,346.83

Retail Shops, Storage
A-46

February 2008
B1F11

SRC
7,720.08

Parking, Mechanical Room

B1F7
SRC

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03
B1F9

OfficesA-13

KDX Kojimachi Building

612.17SRC
5,323.81

Retail Shops

B2F9
SRC

A-1

KDX Nihonbashi 313 Building

1,047.72

Offices

8,613.09
B2F9

KDX Shin-Yokohama 381 Building
A-47

Offices, Retail Shops,
1,229.24
Garbage Room, Parking
Offices, Retail Shops

A-16

Toshin-24 Building

1,287.16

A-2

KDX Hirakawacho Building

1,013.85

724.22September 1984

8.75

March 1988

7.25

January 1992

4.16

January 1987

7.01

April 1988

8.07

March 1991

8.41

November 1992

8.28

January 1984

7.92

February 1985

8.34

June 1993

6.42

October 1990

0.71

September 1999

6.13

April 1989

8.95

SRC
8,002.97
B3F10

Offices
Ebisu East 438 Building

12.02
SRC

Residential Complex
A-17(Note 8)B1F8Offices, Retail Shops
Tokyo
Metropolitan
Area

March 1988

B1F10
8,483.17

Parking

OfficeBuildings

SRC･RC
10,290.30(Note 7)SRC
4,394.58

Retail Shops

B1F7
SRC

A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48
B1F9

Offices
A-39

KDX Toranomon Building

288.20SRC
2,277.38

Retail Shops

B1F9
SRC

A-67

Kyodo Building (Ginza No.8)

678.24

Offices, Bank

4,724.62
F9
SRC

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87
B1F8
SRC

A-68

Kyodo Building (Honcho 1chome)583.40

Offices, Parking

5,110.45
B1F9

A-48

SRC

KDX Kawasaki-Ekimae Hon-cho
Building

1,968.13

KDX Hatchobori Building

992.20

Offices

7,420.87
B1F9
SRC・RC

A-4

Offices

4,800.43
B1F8

Offices, Retail Shops
A-18

KDX Omori Building

1,123.93

RC・SRC
7,334.77

Parking

B1F9

Offices, Retail Shops
A-19

KDX Hamamatsucho Building

504.26

S3,592.38

Parking

F9
SRC

A-45

KDX Roppongi 228 Building

408.86

Offices, Retail Shops

2,235.30
B1F9

-46-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

PML（㎡）(Note1)(Note 2)（㎡）(Note 3)(Note 4)(Note 5)(%) (Note 6)

SRC
A-62

Koishikawa TG Building

1,250.42

Offices, Parking

5,862.02

November 1989

7.54

January 1990

3.63

October 1987

7.90

May 1994

7.25

July 1991

13.23

February 1992

6.84

April 1988

8.37

August 1992

5.20

September 1990

10.36

November 1985

5.66

September 1988

3.02

March 1990

6.05

September 1988

6.17

September 1993

6.76

August 1989

8.71

November 1988

4.92

April 1989

2.76

April 1992

2.01

July 1990

4.87

October 2006

6.99

June 1988

2.23

August 2000

9.06

May 1993

7.77

B1F8
Offices, Storage
A-29

KDX Higashi-Shinjuku Building

1,340.97

SRC
7,885.40

Parking

B1F9
SRC

A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86
F8
SRC

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
B1F8
SRC

A-49

Nissou Dai-17 Building

629.00

Offices, Parking

4,016.61
B1F8

Offices, Retail Shops
A-21

KDX Shinbashi Building

536.11

SRC・S
3,960.22

Parking

B1F8
SRC

A-63

Gotanda TG Building

582.90

Offices, Parking Storage

4,440.61
B1F9

Offices, Retail Shop
A-5

KDX Nakano-Sakaue Building

1,235.16

SRC
6,399.42

Residential, Parking. Storage

B1F11

Offices, Retail Shops
A-22

KDX Shin-Yokohama Building

705.00S
6,180.51

Parking

B1F9

Retail Shops
A-6

Harajuku F.F. Building

699.67SRC
3,812.44

Offices, Parking

F11
RC

A-50

Ikejiri-Oohashi Building

834.79

Offices

3,482.96
B2F9

OfficeBuildings

Tokyo
Metropolitan
Area

SRC
A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
B1F8
SRC

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41
F9

Retail Shops, Offices
A-15

KDX Hamacho Building

554.80SRC
4,133.47

Parking

B2F10
SRC・RCA-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04
B1F9

Offices, Retail Shops
A-7

FIK Minami Aoyama

369.47SRC
1,926.98

Residential

B1F9

Offices
A-14

KDX Funabashi Building

1,180.41

SRC
5,970.12

Retail Shops

B1F8
S・SRC

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90
B1F8

Offices, Retail Shops
A-55

Shin-toshin Maruzen Building

457.64SRC
3,439.37

Parking

B1F8
SRC

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62
F9
S

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00
F10
S

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11
F8
SRC・RC・S

A-8

Kanda Kihara Building

410.18

Offices

2,393.94
B1F8

-47-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

PML（㎡）(Note1)(Note 2)（㎡）(Note 3)(Note 4)(Note 5)(%) (Note 6)

Offices, Retail Shops
A-23

KDX Yotsuya Building

996.65RC
3,329.68

Parking
OfficesA-59

KDX Iwamoto-cho Building

266.86

October 1989

9.79

March 2008

7.15

October 1992

7.79

October 1992

9.02

September 1986

5.72

October 1992

9.41

May 1995

11.12

December 1985

13.00

May 1991

9.48

April 20092.87

September 1993

3.48

October 1982

8.37

June 1973

1.48

July 2009

13.79

July 1994

9.79

February 1984

1.93

October 1989

0.51

March 1993

9.04

September 1993

10.59

July 1983

4.39

Average of 21.4 yrs(Note 8)-January 2004

9.88

March 1997

7.11

February 2006

6.46

B2F4
S
1,618.65

Residential Complex

F9
RC

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64
F5
RC

A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63
F5

Tokyo
Metropolitan
Area

Offices
A-31

KDX Monzen-Nakacho Building

580.99SRC
2,668.91

Retail Shops

F8
SRC

A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60
B1F7

OfficesA-34

KDX Hon-Atsugi Building

724.62SRC
3,603.63

Retail Shops

F8

Offices, Parking
A-35

KDX Hachioji Building

460.62SRC
2,821.21

Retail Shops

F9

Offices, Retail Shops
A-28

KDX Nogizaka Building

409.36RC
1,695.07

Residential

B1F5
S

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retails Shops

9,594.00
F11

OfficeBuildings

Offices, Retail Shops,
A-12

Portus Center Building

13,936.63

SRC・S
79,827.08

Storage, Parking

B2F25
SRC

A-42

Karasuma Building

1,788.67

Offices

12,632.68
B1F8
SRC

A-53

KDX Hakata-Minami Building

1,826.25

Offices, Retail Shops, Parking

13,238.16
B1F9

KDX Kobayashi-Doshomachi Building
A-69

Offices, Parking
1,561.04

Other
Regional
Areas

S・SRC
10,723.83(Note 9)Retail Shops

B1F12
S

A-54

KDX Kitahama Building

751.92

Offices, Storage, Parking

4,652.96
F10
SRC

A-44

KDX Sendai Building

987.78

Offices

5,918.30
B1F10
SRC

A-70

Kitananajo SIABuilding

819.44

Offices

5,503.90
B1F9
SRC・RC・S

A-24

KDX Minami Semba Dai-1 Building

715.44

Offices, Parking

4,236.59
B1F9

Parking, Retail Shops
A-25

KDX Minami Semba Dai-2 Building

606.45SRC・S3,315.93

Offices, Residential

B1F9

OfficesA-36

KDX Niigata Building

1,110.56

RC
6,810.29

Retail Shops
Subtotal of Office Buildings (65 properties)

-

-

B2F13
-

Residential Complex
B-19

Residence Charmante Tsukishima

4,252.86

SRC
18,115.39

Offices
Residential
Properties

Tokyo
Metropolitan
Area

-

B1F10
RC

B-3

Court Mejiro

1,581.91

Residential Complex

3,326.07
B1F3

Residential Complex
B-34

Gradito Kawaguchi

423.94RC
1,705.38

Retail Shops

-48-

F12

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area
Other
Regional
Areas

Residential
Properties

No.

B-18

Property Name

Venus Hibarigaoka

Subtotal of Residential Properties (4 properties)

Site Area

Usage

Total Floor Area

Type of Structure

Completion Date

PML（㎡）(Note1)(Note 2)（㎡）(Note 3)(Note 4)(Note 5)(%) (Note 6)

8,595.00

Residential Complex

14,976.25①RC F6②RC F5③RC F6----

1,240.51

Retail Shops

6,302.58

March 1989

5.20

Average of 10.8 yrs-

March 2005

8.02

August 1991

8.17

S・RC・SRC
CentralUrban
RetailProperties

C-1

Frame Jinnan-zaka

Tokyo
Metropolitan
Area

B2F7
Retail Shops
C-2

KDX Yoyogi Building

228.74SRC
1,269.06

Offices
Subtotal of Central Urban Retail Properties (2 properties)
Total of 71 properties

-

-

-

-

F8
-

-

Average of 8.8 yrs-

Average of 20.4 yrs(Note 8)

5.15
(Note 6)

Notes:
1. Site area data is based on figures recorded in the land register (including relevant figures for leasehold land, if any). Data may not match with the actual
current status. In the case of buildings with compartmentalized ownership, the figure indicates the site area of the entire land subject to site rights.
2. Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of areas covered by the relevant
ownership is shown.
3. Total floor space is based on figures recorded in the land register and does not include related structures. The total floor area for the entire buildings isreported for compartmentalized ownership.
4. Type of structure data is based on data recorded in the land register. For buildings with compartmentalized ownership, the structure and the number of floorsof the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating to structure andthe 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.
5. Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data is calculated using theweighted-average based on acquisition prices as of April 30, 2011, and is rounded down to the nearest first decimal place.
6. Probable Maximum Loss (PML) data is based on a survey provided by NKSJ Risk Management, Inc. as of February 2011. The Portfolio PML is the data
based on 71 properties.
7. KDX Shin-Yokohama 381 Building is comprised from two compartmentalized buildings within a single building. By consolidating them together, they
become a property that comprises the entire building (total ownership ratio: 100%).
8. The completion date of the existing tower is shown for the completion date of KDX Shin-Yokohama 381 Building. Upon calculating the weighted-average
portfolio age, the completion date (April 2009) for the KDX Shin-Yokohama 381 Building Annex Tower is not considered.
9. KDX Kobayashi Doshomachi Building includes the term leasehold interest with a special agreement to transfer building. In addition, the rent for land to theland owner (Kobayashi Pharmaceutical Co., Ltd.) is stipulated according to specific terms under the land lease agreement and the annual rent to be paid is¥80.7 million until August 2014.

-49-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

B. Capital Expenditure(a) Planned capital expenditures
Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the thirteenth fiscal period (May1, 2011 to October 31, 2011) are as follows. Planned capital expenditure may include portions classified into expenses for accounting
purposes.

Property Name

PurposeSchedule

KDX Higashi-Shinjuku Building

Upgrade of restrooms･common areas,

May 2011 to(Shinjuku-ku, Tokyo)

other

October 2011

Kitananajo SIA Building

Air conditioning system construction,(Sapporo, Hokkaido)

other(Location)

KDX Nakano-Sakaue Building(Nakano-ku, Tokyo)
Harajuku F.F. Building(Shibuya-ku, Tokyo)
Shin-toshin Maruzen Building(Shinjuku-ku, Tokyo)

Planned Amount of Capital Expenditure(Millions of Yen)
Paid in the Fiscal Total Amount
Total
Period Under
Previously
Review
Paid
78

-

-

As above59--

Upgrade of external walls, other

As above

58--

Upgrade of external walls, other

As above48--

Upgrade of external walls, other

As above34--(b) Capital Expenditures during the Fiscal Period Under Review (fiscal period ended April 30, 2011)
The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review (fiscal period
ended April 30, 2011), the Investment Corporation completed work across its entire portfolio totaling ¥698 million. This total comprised of¥574 million in capital expenditures and ¥123 million for repairs, maintenance and renovation expenses.
Property Name

Purpose(Location)

Schedule

Amount of Capital Expenditures(Millions of Yen)

Gotanda TG Building

Air conditioning system construction,(Shinagawa-ku, Tokyo)

upgrade of restrooms･common areas, other

April 2011

Air conditioning system construction, other

As above71

Air conditioning system construction, other

As above71

Air conditioning system construction, other

As above66

Air conditioning system construction, other

As above

52

KDX Shin-Yokohama Building(Yokohama-shi, Kanagawa)Ebisu East 438 Building(Shibuya-ku, Tokyo)
KDX Hamacho Building(Chuo-ku, Tokyo)
KDX Yotsuya Building(Shinjuku-ku, Tokyo)

November 2010 to108

Others205

Portfolio Total

574

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

-50-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(c) Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
The Investment Corporation formulates long-term repairs, maintenance and renovation plans on an individual investment property basis
and allocates a portion of its cash flows generated during the period to a reserve for repairs, maintenance and renovation to meet large-scalerenovation over the medium- to long-terms. The following amount has been transferred to the reserve from period cash flows.
( Millions of Yen)
Eighth Fiscal Period
Fiscal period
Reserve for the end of theprevious period
Reserve for the fiscal period
under review
Reversal of reserve for the
fiscal period under review
Reserve brought forward to thenext period

Ninth Fiscal Period

Tenth Fiscal Period Eleventh Fiscal Period

Twelfth Fiscal Period(November 1, 2008

(May 1, 2009 to(November 1, 2009

(May 1, 2010 to(November 1, 2010 toto April 30, 2009)

October 31, 2009)

to April 30, 2010)

October 31, 2010)

April 30, 2011)

552

477

469

444

93

71

29

167

79

54

14

-

477

469

444

430

440

-51-

-

430
10

KENEDIX REALTY INVESTMENT CORPORATION (8972)

C.
Type

OfficeBuildings

Details of the Tenants
Area

Tokyo
Metropolitan
Area

No.

(As of April 30, 2011)
Property Name

Total Leasable
Floor Area(㎡)(Note 1)

Total No. of
Total No. of
Total Leased
No. ofLeasable
LeasedFloor Area
Tenants
Residential units Residential units(Note 5)(㎡)(Note 2)(Note 3)(Note 4)

Total Rental
Leasehold andOccupancyand Other Operating Security Deposits
Ratio (%）
Revenues(¥thousands) (¥thousands)(Note 6)(Note 7)(Note 8)A-60

KDX Harumi Building

9,294.00

9,122.60

-

-

6

98.2

352,822496,959

A-40

Toranomon Toyo Building

6,362.78

6,362.78

-

-

12

100.0

301,171534,705

A-46

Hiei Kudan-Kita Building

6,903.94

6,622.37

-

-

14

95.9

238,101

330,638

A-66

KDX Shinjuku Building

5,887.37

5,887.37

-

-

22

100.0

264,048

365,009

A-37

KDX Ochanomizu Building

5,880.885,880.88

-

-

5

100.0

211,315

242,639

A-32

KDX Shiba-Daimon Building

5,984.71

5,984.71

-

-

9

100.0

196,310

256,990

A-13

KDX Kojimachi Building

3,792.64

3,792.64

-

-

10

100.0

140,911

231,525

A-1

KDX Nihonbashi 313 Building

5,899.56

4,233.77

-

-

8

71.8

196,910

224,481A-47

KDX Shin-Yokohama 381 Building

8,131.94

7,281.74

-

-

35

89.5

158,218

242,894

A-16

Toshin-24 Building

6,618.37

5,607.45

-

-

15

84.7

154,708

227,542

A-2

KDX Hirakawacho Building

4,457.97

4,457.97

4

4

18

100.0

167,316

207,610

A-17

Ebisu East 438 Building

3,077.61

3,077.61

-

-

7

100.0

132,781

243,015

A-3

Higashi-Kayabacho Yuraku Building

4,413.17

4,413.17

-

-

7

100.0

173,778

246,519

A-39

KDX Toranomon Building

1,966.56

1,966.56

-

-

7

100.0

109,725

183,786

A-67

Kyodo Building (Ginza No.8)

3,573.59

3,573.59

-

-

5

100.0

57,471

182,026

A-30

KDX Nishi-Gotanda Building

3,881.58

3,881.58

-

-

5

100.0

153,837

211,542

A-68

Kyodo Building (Honcho 1chome)

3,998.39

3,998.39

-

-

6

100.0

124,104

160,331

A-48

KDX Kawasaki-Ekimae Hon-cho Building

5,124.98

5,124.98

-

-

1

100.0

165,491

155,091

A-4

KDX Hatchobori Building

3,323.83

3,323.83

-

-

6

100.0

136,137

148,343

A-18

KDX Omori Building

4,945.03

4,945.03

-

-

10

100.0

164,556

227,454

A-19

KDX Hamamatsucho Building

2,724.35

2,724.35

-

-

8

100.0

101,171

137,148

A-45

KDX Roppongi 228 Building

1,909.08

1,242.01

-

-

6

65.1

41,58058,188

A-62

Koishikawa TG Building

3,944.26

3,944.26

-

-

5

100.0

135,979

165,511A-29

KDX Higashi-Shinjuku Building

5,927.09

5,927.09

-

-

8

100.0

144,365

162,535

A-20

KDX Kayabacho Building

3,019.95

3,019.95

-

-

5

100.0

121,654

190,438

A-56

KDX Jimbocho Building

2,321.10

1,735.26

-

-

2

74.8

60,71076,050A-49

Nissou Dai-17 Building

2,739.62

2,366.99

-

-

5

86.4

65,17965,318A-21

KDX Shinbashi Building

1,696.62

1,696.62

-

-

6

100.0

97,627129,117

A-63

Gotanda TG Building

3,169.57

2,535.34

-

-

8

80.0

68,978

119,027

A-5

KDX Nakano-Sakaue Building

4,389.65

4,389.65

18

18

25

100.0

100,946

98,765A-22

KDX Shin-Yokohama Building

4,802.64

4,472.68

-

-

18

93.1

80,334

154,064

A-6

Harajuku F.F. Building

3,068.36

3,068.36

-

-

3

100.0

112,771

169,103

A-50

Ikejiri-Oohashi Building

2,449.11

1,821.51

-

-

6

74.4

80,142

81,271A-27

KDX Kajicho Building

2,564.11

2,564.11

-

-

10

100.0

74,680100,026

A-51

KDX Hamacho Nakanohashi Building

2,240.08

2,240.08

-

-

9

100.0

52,25980,006

A-15

KDX Hamacho Building

3,106.00

3,106.00

-

-

9

100.0

94,142

137,548

A-41

KDX Shinjuku 286 Building

2,447.80

2,447.80

-

-

9

100.0

86,888104,287

A-7

FIK Minami Aoyama

1,814.56

1,814.56

-

-

8

100.0

71,439109,093

A-14

KDX Funabashi Building

3,861.69

3,861.69

-

-

19

100.0

105,303

127,312A-61

KDX Hamamatsucho Dai-2 Building

1,953.50

1,953.50

-

-

8

100.0

64,382

99,097

A-55

Shin-toshin Maruzen Building

1,922.79

1,922.79

-

-

5

100.0

64,276

92,798A-64

KDX Nihonbashi 216 Building

1,615.20

1,615.20

-

-

7

100.0

56,749115,142

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

4

100.0

69,031

109,239

A-57

KDX Gobancho Building

1,650.58

1,650.58

-

-

7

100.0

41,89554,598A-8

Kanda Kihara Building

1,946.89

1,820.25

-

-

8

93.5

68,941

136,064-52-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Type

Area

Property Name

Total No. of
Total No. of
Total Leased
LeasedLeasable
Floor Area
Residential
Residential units
units(㎡)(Note 2)(Note 3)(Note 4)

No. ofTenants(Note 5)

Total Rental
Leasehold andOccupancyand Other Operating Security Deposits
Ratio (%）
Revenues(¥thousands) (¥thousands)(Note 6)(Note 7)(Note 8)A-23

KDX Yotsuya Building

2,530.71

2,530.71

-

-

4

100.0

93,289142,123

A-59

KDX Iwamoto-cho Building

1,524.68

1,524.68

3

3

9

100.0

57,256

66,687

A-26

KDX Kiba Building

2,450.90

2,450.90

-

-

7

100.0

67,81180,731A-38

KDX Nishi-Shinjuku Building

1,599.71

1,401.10

-

-

6

87.6

43,841

55,738A-31

KDX Monzen-Nakacho Building

2,010.55

1,695.65

-

-

4

84.3

51,66658,559A-52

KDX Kanda Misaki-cho Building

1,339.46

1,164.27

-

-

7

86.9

34,266

41,567A-34

KDX Hon-Atsugi Building

2,747.28

2,747.28

-

-

10

100.0

60,99087,259A-35

KDX Hachioji Building

2,178.61

2,178.61

-

-

8

100.0

48,59547,383

A-28

KDX Nogizaka Building

1,250.12

702.52

1

1

4

56.2

28,90325,177

A-58

KDX Nagoya Sakae Building

6,923.12

6,485.98

-

-

14

93.7

163,313203,511

A-12

Portus Center Building

11,569.15

11,082.10

-

-

27

95.8

290,351

374,814

A-42

Karasuma Building

8,736.10

8,229.62

-

-

38

94.2

204,408

270,068

A-53

KDX Hakata-Minami Building

10,062.83

7,584.72

-

-

43

75.4

159,151

179,399

A-69

KDX Kobayashi-Doshomachi Building

7,071.53

6,438.47

-

-

10

91.0

143,858

234,477

A-54

KDX Kitahama Building

3,993.67

3,706.88

-

-

8

92.8

80,28180,642A-44

KDX Sendai Building

3,957.62

3,921.90

-

-

30

99.1

92,180190,659

A-70

Kitananajo SIA Building

3,788.73

3,788.73

-

-

20

100.0

20,304

109,314

A-24

KDX Minami Semba Dai-1 Building

3,108.17

2,971.84

-

-

11

95.6

54,592

74,090A-25

KDX Minami Semba Dai-2 Building

2,693.72

2,693.72

-

-

24

100.0

57,374

46,372

A-36

KDX Niigata Building

4,060.47

2,708.19

-

-

20

66.7

51,36551,600Subtotal of Office Buildings (65 properties)

256,193.17

241,280.06

26

26

720

94.2

7,464,961

10,411,047

100.0

157,198

50,580Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

Residential
Properties

No.

Total Leasable
Floor Area(㎡)(Note 1)Tokyo
Metropolitan
Area
Other
Regional
Areas

B-19

Residence Charmante Tsukishima

7,711.14

7,711.14

140

140

1
(Note 9)B-3

Court Mejiro

2,046.79

1,868.74

20

18

18

91.3

40,58816,491

100.0

32,88910,028

B-34

Gradito Kawaguchi

1,619.34

1,619.34

66

66

2(Note 10)B-18

Venus Hibarigaoka

12,829.64

12,406.81

159

154

120

96.7

93,184

26,49024,206.91

23,606.03

385

378

141

97.5

323,861

103,590

Subtotal of Residential Properties (4 properties)
CentralTokyo
Urban
Metropolitan
RetailArea
Properties

C-1

Frame Jinnan-zaka

4,655.71

4,655.71

-

-

11

100.0

283,774

302,794

C-2

KDX Yoyogi Building

1,182.14

1,182.14

-

-

11

100.0

64,320108,150

5,837.85

5,837.85

-

-

22

100.0

348,094410,944404

883(Note 11 )94.6

8,136,917

10,925,582

Subtotal of Central Urban Retail Properties (2 properties)
Total of 71 properties

286,237.93

270,723.94

Occupancy Ratio over the Past Five Years
October 31, 2006

95.3%

April 30, 2007

95.9%

October 31, 2007

96.9%

April 30, 2008

95.9%

October 31, 2008

95.6%

April 30, 2009

95.7%

October 31, 2009

94.7%

April 30, 2010

94.4%

October 31, 2010

93.6%

April 30, 2011

94.6%

-53-

411

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Notes:
1. Total leasable floor area refers to the leasable floor area for each Property including the building (aggregate total of the leasable floor area of each building in
the case of more than one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans.
2. Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
3. The total number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential purposes.
4. The total number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end
tenants or sub-lease agreements are singed.
5. The total number of tenants refers to the actual number of end tenants for each property. However, for Residence Charmante Tsukishima, please refer to Note9, and for Gradito Kawaguchi, please refer to Note 10.
6. The occupancy ratio is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place.
7. Total rental and other operating revenues cover all income, including that from rental revenue, common charges, and parking space rental revenues, rounded
to the nearest one thousand yen. Total real estate business rental revenues refers to the total amount of revenues generated during the fiscal period underreview from real estate rental operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
8. Guarantee and security deposits refers to the total of the balances of security deposits held (including net security deposits in the case of discount) andguarantee deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest thousand yen.
9. Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-term lease: until January 30, 2014) fixed-term building lease
contract (term of contract: to January 30, 2029) with Sekiwa Real Estate, Ltd., a master lessor, the total number of tenants is indicated as 1.
10. Gradito Kawaguchi: Because the master lessor and Haseko Livenet Inc. have concluded a rental guarantee (fixed-term lease: until March 31, 2012) building
lease contract for dwelling units (excluding first-floor shops), the total number of tenants is indicated as 2.
11. The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.

D. Information concerning major real estate properties
There were no major real estate properties with real estate business rental revenues exceeding 10% of total real estate business rental revenues forthe twelfth fiscal period (fiscal period ended April 30, 2011).
E. Information concerning major tenants(a) Tenant which holds more than 10% of the total leased area: None(b) Reference: Major end tenants(As of April 30, 2011)
Name of End Tenant

Property Name

1

Sekiwa Real Estate, Ltd.

Residence Charmante Tsukishima

2

NTT Data Corporation (Note 2)

KDX Harumi Building, KDX Higashi-Shinjuku Building

3

N / A (Note 3)

4

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5

Kodak Japan Ltd.

KDX Kawasaki-Ekimae Hon-cho Building
Toranomon Toyo Building, Harajuku F.F. Building,
KDX Yoyogi Building
KDX Monzen Nakacho Building,
KDX Ochanomizu Building

Subtotal

Leased Floor
Area

Percentage of Total Leased Floor
Area (Note 1)

7,711.14 ㎡

2.8％

5,185.96 ㎡(Note 2)

1.9％

5,124.98 ㎡

1.9％

3,419.54 ㎡

1.3％

3,121.83 ㎡

1.2％

24,563.45 ㎡

9.1％

Portfolio Total
270,723.94 ㎡
100.0％
Notes:
1. Percentage of total leased floor area refers to the floor area leased to each end tenant as a proportion of total leased floor area. Figures are rounded to the nearest
first decimal place.
2. We received a ―Notice of the termination of a lease agreement‖ for KDX Harumi Building (4,307.60 ㎡) out of 5,185.96 ㎡ on April 27, 2011.
3. Not disclosed due to the tenants’ request.

-54-

KENEDIX REALTY INVESTMENT CORPORATION (8972)④ Status of the Posted CollateralNo.

Property Name

Status of Collateral(Secured・Unsecured)Type of
CollateralAppraisal Value at the End of Twelfth
Fiscal Period (Millions of Yen)
Collateralized

Uncollateralized

A-60

KDX Harumi Building

SecuredFixed pledge

10,000-A-40

Toranomon Toyo Building

SecuredFixed pledge

9,690

-

A-46

Hiei Kudan-Kita Building

SecuredFixed pledge

7,560

-

A-66

KDX Shinjuku Building

SecuredFixed pledge

6,560

-

A-37

KDX Ochanomizu Building

SecuredFixed pledge

6,460

-

A-32

KDX Shiba-Daimon Building

SecuredFixed pledge

4,880

-

A-13

KDX Kojimachi Building

-

4,230

A-1

KDX Nihonbashi 313 Building

SecuredFixed pledge

7,170

-

A-47

KDX Shin-Yokohama 381 Building (Note 1)

SecuredFixed pledge

4,210

-

A-16

Toshin-24 Building

SecuredFixed pledge

4,240

-

A-2

KDX Hirakawacho Building

Unsecured

-

-

4,910

A-17

Ebisu East 438 Building

Unsecured

-

-

4,150

Unsecured-

A-3

Higashi-Kayabacho Yuraku Building

SecuredFixed pledge

5,180

-

A-39

KDX Toranomon Building

SecuredFixed pledge

3,540

-

A-67

Kyodo Building (Ginza No.8)

SecuredFixed pledge

4,590

A-30

KDX Nishi-Gotanda Building

SecuredFixed mortgage

3,750

A-68

Kyodo Building (Honcho 1chome)

SecuredFixed pledge

4,330

A-48

KDX Kawasaki-Ekimae Hon-cho Building

SecuredFixed mortgage

3,410

-

A-4

KDX Hatchobori Building

-

3,380

A-18

KDX Omori Building

SecuredFixed pledge

3,650

-

A-19

KDX Hamamatsucho Building

SecuredFixed pledge

3,180

-

A-45

KDX Roppongi 228 Building

-

2,130

A-62

Koishikawa TG Building

SecuredFixed pledge

3,200

-

A-29

KDX Higashi-Shinjuku Building

SecuredFixed pledge

3,320

-

A-20

KDX Kayabacho Building

SecuredFixed pledge

3,180

-

A-56

KDX Jimbocho Building

SecuredFixed mortgage

1,790

-

A-49

Nissou Dai-17 Building

SecuredFixed pledge

1,600

-

A-21

KDX Shinbashi Building

-

2,840

A-63

Gotanda TG Building

SecuredFixed pledge

2,520

-

Unsecured

Unsecured

Unsecured

-

-

-

-

A-5

KDX Nakano-Sakaue Building

SecuredFixed pledge

2,350

-

A-22

KDX Shin-Yokohama Building

SecuredFixed pledge

2,340

-

A-6

Harajuku F.F. Building

SecuredFixed pledge

2,910

-

A-50

Ikejiri-Oohashi Building

SecuredFixed pledge

1,620

-

A-27

KDX Kajicho Building

SecuredFixed pledge

2,280

-

A-51

KDX Hamacho Nakanohashi Building

SecuredFixed pledge

1,680

-

A-15

KDX Hamacho Building

SecuredFixed pledge

2,390

-

A-41

KDX Shinjuku 286 Building

SecuredFixed pledge

2,100

-

A-7

FIK Minami Aoyama

-

2,110

A-14

KDX Funabashi Building

1,980

-

A-61

KDX Hamamatsucho Dai-2 Building

-

1,920

A-55

Shin-toshin Maruzen Building

SecuredFixed pledge

1,570

-

A-64

KDX Nihonbashi 216 Building

SecuredFixed pledge

1,850

-

A-33

KDX Okachimachi Building

Unsecured

-

-

1,790

A-57

KDX Gobancho Building

Unsecured

-

-

1,480

A-8

Kanda Kihara Building

1,870

-

Unsecured
SecuredFixed mortgage
Unsecured

Secured-55--

Fixed pledge

KENEDIX REALTY INVESTMENT CORPORATION (8972)

No.

Status of Collateral(Secured・Unsecured)

Property Name

Type of

Appraisal Value at the End of Twelfth
Fiscal Period (Millions of Yen)

CollateralCollateralized

Uncollateralized

A-23

KDX Yotsuya Building

Unsecured

-

-

2,360

A-59

KDX Iwamoto-cho Building

Unsecured

-

-

1,330

A-26

KDX Kiba Building

1,550

-

A-38

KDX Nishi-Shinjuku Building

A-31

KDX Monzen-Nakacho Building

A-52

KDX Kanda Misaki-cho Building

A-34

KDX Hon-Atsugi Building

A-35

KDX Hachioji Building

Unsecured

A-28

KDX Nogizaka Building

Unsecured

A-58

KDX Nagoya Sakae Building

Unsecured

A-12

Portus Center Building

Secured

A-42

Karasuma Building

SecuredA-53

KDX Hakata-Minami Building

SecuredA-69

KDX Kobayashi-Doshomachi Building

Unsecured

A-54

KDX Kitahama Building

Unsecured

A-44

KDX Sendai Building

A-70

Kitananajo SIA Building

A-24

KDX Minami Semba Dai-1 Building

SecuredA-25

KDX Minami Semba Dai-2 Building

SecuredA-36

KDX Niigata Building

B-19

Residence Charmante Tsukishima

4,480

-

B-3

Court Mejiro

Unsecured

-

-

951

B-34

Gradito Kawaguchi

Unsecured

-

-

937

B-18

Venus Hibarigaoka

SecuredFixed pledge

1,400

-

C-1

Frame Jinnan-zaka

SecuredFixed pledge

9,550

-

C-2

KDX Yoyogi Building

-

1,920

169,200

52,574

SecuredFixed pledge
Unsecured

Secured

-

-

1,220

1,270

-

-

990

1,070

-

-

-

821

-

-

833

-

-

4,710

Fixed pledge

4,590

-

Fixed pledge

5,020

-

Fixed mortgage

3,690

-

-

-

2,970

-

-

1,670

1,440

-

-

2,050

Fixed pledge

1,060

-

Fixed pledge

1,130

-

-

872

Fixed mortgage
Unsecured

SecuredFixed pledge

SecuredFixed pledge
Unsecured

Unsecured
Secured-Fixed pledge

Unsecured-

Total
Notes:

1. Starting from the end of the fiscal period October 2010, A-47 KDX Shin-Yokohama 381 Building (existing tower) and A-65 KDX Shin-Yokohama
381Building Annex Tower are indicated collectively as one property. However, assets that are to be pledged as additional collateral are in the form of separate
trust beneficiary interests in real estate for the existing tower and the annex tower.
2. Collateral right holders (including fixed pledge holders and fixed mortgage holders) for all of the collateralized properties are as follows:
Sumitomo Mitsui Banking Corporation, Development Bank of Japan Inc.,The Chuo Mitsui Trust and Banking Co., Ltd., Aozora Bank, Ltd., The Bank ofTokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Resona Bank, Ltd., The Norinchukin Bank and Mitsui Sumitomo InsuranceCo., Ltd.
3. The outstanding balance of secured borrowings as of the end of the fiscal period under review is ¥100,715 .5million.

-56-

a0601

a0401

a0461

a0661

a0371

a0321

a0131

a0011

a0471

a0161

a0021

䛆Reference䛇

Earnings Performance for the Individual Properties for the 12th Fiscal Period (November 1, 2010 to April 30, 2011)㸸181daysࠉࠉͤAs of April 30, 2011

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property Name

KDX Harumi
Building

Toranomon Toyo
Building

Acquisition Date

Hiei Kudan-Kita
Building

KDX Shinjuku
Building

KDX Kojimachi
Building

KDX Nihonbashi
313 Building

KDX ShinYokohama 381
Building

KDX Ochanomizu
Building

KDX ShibaDaimon Building

March 1, 2007 November 1, 2005 August 1, 2005 February 1, 2008

a0171

a0031

a0391

a0671

a0301

a0681

a0481

a0041

KDX Toranomon
Building

Kyodo䚷Building䠄Ginza䚷No.8䠅

KDX NishiGotanda Building

Kyodo䚷Building䠄Honcho 1chome䠅

KDX KawasakiEkimae Hon-cho
Building

KDX Hatchobori
Building

Toshin 24 Building

KDX Hirakawacho
Building

Ebisu East 438
Building

Higashi-Kayabacho
Yuraku Building

August 1, 2005 April 17, 2007 November 12, 2010 December 1, 2006 November 12, 2010 February 1, 2008 August 1, 2005

Price Information

June 30, 2008

June 1, 2007

April 2, 2007

May 1, 2006

August 1, 2005

May 1, 2006

Acquisition price (\ Millions)

10,250

9,850

6,400

6,090

5,950

5,940

5,800

5,300

5,180

4,640

4,450

4,400

4,300

4,200

4,000

3,760

Percentage of total portfolio

4.2%

4.0%

2.6%

2.5%

2.4%

2.4%

2.4%

2.2%

2.1%

1.9%

1.8%

1.8%

1.7%

1.7%

1.6%

1.5%

1.5%

Net book value (\ Millions)

9,845

6,690

6,234

5,665

6,147

5,899

5,148

5,130

4,564

4,399

4,816

4,323

4,092

4,024

3,843

3,371

Appraisal value at the end of period (\ Millions)

10,000

6,460

4,880

4,230

7,170

4,210

4,240

4,910

4,150

5,180

3,540

4,590

3,750

4,330

3,410

3,380

2.9%

2.2%

1.9%

3.2%

1.9%

1.9%

2.2%

1.9%

2.3%

1.6%

2.1%

1.7%

2.0%

1.5%

Leasable floor area (䟝)9,294.00

Leased floor area䠄䟝)9,122.60

February 1, 2008 February 18, 2010
7,600
6,800
3.1%
2.8%
9,867
7,594
6,872
9,690
7,560
6,560
4.4%
3.4%
3.0%
12
14
22
6,362.78
6,903.94
5,887.37
6,362.78
6,622.37
5,887.37

98.2%
98.2%
98.2%
100.0%
100.0%
100.0%-

100.0%
95.4%
93.9%
95.4%
100.0%
100.0%
99.1%
97.5%
-

4.5%

Percentage of total appraisal value

6

Number of tenants

3,680

1.5%

5

9

10

8

35

15

18

7

7

7

5

5

6

1

6

5,880.88

5,984.71

3,792.64

5,899.56

8,131.94

6,618.37

4,457.97

3,077.61

4,413.17

1,966.56

3,573.59

3,881.58

3,998.39

5,124.98

3,323.83

5,880.88

5,984.71

3,792.64

4,233.77

7,281.74

5,607.45

4,457.97

3,077.61

4,413.17

1,966.56

3,573.59

3,881.58

3,998.39

5,124.98

3,323.83

100.0%
100.0%
100.0%
100.0%
100.0%
90.2%
100.0%
100.0%
100.0%-

100.0%
100.0%
97.3%
100.0%
100.0%
100.0%
100.0%
100.0%
93.0%-

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

71.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
98.9%
100.0%

89.5%
100.0%
100.0%
100.0%
92.1%
97.5%
94.6%
-

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

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

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

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.1%
100.0%

100.0%
100.0%
100.0%
89.3%
78.6%
78.6%
100.0%
100.0%
0.0%-

100.0%-

100.0%
100.0%
100.0%
100.0%
91.9%
100.0%
100.0%
100.0%
73.7%-

100.0%-

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

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

Occupancy ratio
Lease Information

As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006

95.9%
85.3%
91.9%
100.0%
100.0%
100.0%
100.0%-

100.0%
93.7%
93.8%
-

Income and Retained Earnings Information for the 12th Fiscal Period

Operating periods

181days181days181days181days181days181days181days181days181days181days181days181days181days181days170days181days170days181days181days䐟Rental and other operating revenues (\ Thousands)

352,822

301,171

238,101

264,048

211,315

196,310140,911

196,910

158,218

154,708

167,316

132,781

173,778

109,725

57,471

153,837

124,104

165,491

136,137

Rental revenues

313,473

287,140

216,685229,693203,230

180,736

121,442

185,126

132,804

133,181

150,484

114,864

157,613102,923

46,911

131,910118,078

134,066

118,680

Other operating revenues

39,34914,031

21,41634,355

8,085

15,573

19,46911,78425,414

21,526

16,832

17,916

16,165

6,802

10,56021,926

6,026

31,425

17,457

93,911

71,12390,27150,402

41,442

44,561

41,69449,577

46,406

51,96347,356

38,58733,65323,187

17,802

31,832

14,56561,02236,381

Property management fees

38,353

20,89929,63824,117

12,881

16,224

10,257

16,083

13,23817,580

16,247

9,999

13,594

6,637

6,229

12,1359,306

14,725

12,655Taxes

19,857

31,377

26,422

1

16,03812,075

17,90519,88013,81912,893

15,782

10,9009,807

10,579

6

9,568

1

7,745

9,503

Utilities

28,627

13,904

15,702

19,057

10,13012,782

9,342

10,88814,057

12,947

11,606

9,560

7,982

4,122

7,485

8,226

4,050

22,5458,616

Repairs and maintenance costs

3,705

1,322

5,078

1,575

445

1,795

493

1,119

1,392

2,683

1,270

1,105

407

459

25

1,347

240

15,036

4,187

498

329

450

415

305

270

218

322

369

336

293

170

219

92

167

204

176

244

195

Trust fees and other expenses

2,868

3,289

12,978

5,236

1,641

1,413

3,477

1,283

3,528

5,521

2,156

6,851

1,642

1,296

3,888

351

791

724

1,222

䐡䠪䠫䠥䚷䠄䠙䐟-䐠䠅 (\ Thousands)

258,910230,048

147,830

213,645

169,872

151,748

99,217

147,333

111,812102,744

119,960

94,193140,125

86,53839,669122,004

109,539

104,469

99,756

䐢Depreciation (\ Thousands)

76,974

11,98814,784

14,78026,72528,65531,701

28,562

46,02734,402

24,515

17,85627,146

13,176

11,237

29,4099,093

30,311

18,125

䐣Rental operating income 䠄䠙䐡-䐢䠅 (\ Thousands)

181,936

218,060

133,045

198,865

143,147

123,092

67,516

118,770

65,78568,342

95,44576,337112,979

73,361

28,431

92,594100,446

74,157

81,630䐠Property-related expenses (\ Thousands)

Insurance

䐤Capital expenditures (\ Thousands)䐥䠪䠟䠢 䠄䠙䐡-䐤䠅 (\ Thousands)

-

5,845

1,575

6,743

-

140

550

1,016

17,377

13,233

1,365

71,469

990

-

-

3,045

-

19,495

3,835

258,910224,202146,255

206,902

169,872

151,608

98,667

146,317

94,43589,511

118,595

22,724

139,135

86,53839,669118,959

109,539

84,973

95,921

Reference

Expense ratio 䠄䠙䐠䠋䐟䠅

26.6%

23.6%

37.9%

19.1%

19.6%

22.7%

29.6%

25.2%

29.3%

33.6%

28.3%

29.1%

19.4%

21.1%

31.0%

20.7%

11.7%

36.9%

26.7%

Property tax for the year 2011or 2010(\ Thousands)

39,71562,754

52,84560,50432,07624,14735,80939,76027,16525,731

31,56521,80019,624

21,15826,274

19,13928,77815,46919,006Among 䐠 of property management fee (Leasing management fees) (\ Thousands)

12,646

10,841

7,876

9,748

7,779

7,163

4,900

7,025

5,510

5,307

5,862

4,632

6,406

4,005

1,982

5,629

4,768

6,028

4,896

3.58%

3.60%

3.31%

3.69%

3.68%

3.65%

3.48%

3.57%

3.48%

3.43%

3.50%

3.49%

3.69%

3.65%

3.45%

3.66%

3.84%

3.64%

3.60%

110,320

260,050

296,707362,230

323,470

169,180

180,970

214,470

216,990

217,670

210,660

147,940

107,050

70,40080,690133,200

82,180446,967

158,190

9,193

21,67024,72530,185

26,955

14,09815,08017,872

18,082

18,13917,555

12,328

8,920

5,866

6,724

11,1006,848

37,247

Reference䠖 Percentage of rental and other operating revenues

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

‫ی‬Assets pledged as collateral

‫ی‬

‫ی‬

‫ی‬

‫ی‬

‫ی‬

-

‫ی‬

‫ی‬

‫ی‬

-

-

‫ی‬

‫ی‬

‫ی‬

‫ی‬

‫ی‬

‫ی‬

13,182--57-

a0181

a0191

a0451

a0621

a0291

a0201

a0561

a0491

a0211

a0631

a0051

䛆Reference䛇㸸181daysࠉࠉͤAs of April 30, 2011
Earnings Performance for the Individual Properties for the 12th Fiscal Period (November 1, 2010 to April 30, 2011)㸸

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property NameKDX Omori
Building

KDX
Hamamatsucho
Building

Acquisition Date

KDX Roppongi
228 Building

Koishikawa TG
Building

KDX HigashiShinjuku Building

KDX Kayabacho
Building

KDX Jimbocho
Building

Nissou Dai-17
Building

KDX Shinbashi
Building

Ikejiri-Oohashi
Building

Price Information

May 1, 2006

May 1, 2006

3,460

2,780

2,760

2,710

2,690

2,620

2,533

2,520

2,450

2,400

1.4%

1.4%

1.1%

1.1%

1.1%

1.1%

1.1%

1.0%

1.0%

1.0%

1.0%

Net book value (\ Millions)

3,393

2,838

2,914

2,645

2,657

2,812

2,451

2,483

2,446

2,471

Appraisal value at the end of period (\ Millions)

3,650

3,180

1,790

1,600

2,840

2,520

2,350

2,340

2,910

1,620

Percentage of total appraisal value

1.6%

1.4%

0.8%

0.7%

1.3%

1.1%

1.1%

1.1%

1.3%

0.7%

Leased floor area䠄䟝)4,945.03
100.0%
100.0%
100.0%
100.0%
94.5%
100.0%
100.0%
100.0%
100.0%
100.0%

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

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

10

a0511

KDX Kajicho
Building

3,500

4,945.03

May 1, 2006

Harajuku F.F.
Building

a0271

May 1, 2006

Leasable floor area (䟝)November 18, 2009 August 1, 2005

KDX ShinYokohama Building

a0501

Percentage of total portfolio

Number of tenants

May 1, 2006

KDX NakanoSakaue Buildinga0061

Acquisition price (\ Millions)January 10, 2008 November 18, 2009 September 1, 2006
3,300
3,080
2,950
1.3%
1.2%
1.2%
3,285
3,440
3,153
3,175
3,180
2,130
3,200
3,320
1.4%
1.0%
1.4%
1.5%
8
6
5
8
2,724.35
1,909.08
3,944.26
5,927.09
2,724.35
1,242.01
3,944.26
5,927.09

March 31, 2008 February 1, 2008

Gotanda TG
Building

a0221

August 1, 2005 February 1, 2008

a0151

KDX Hamacho
Nakanohashi
Building

a0411

KDX Hamacho
Building

a0071

KDX Shinjuku 286
Building

FIK Minami
AoyamaJuly 3, 2006

June 1, 2007

August 1, 2005

2,350

2,300

2,270

1.0%

0.9%

0.9%

2,340

2,257

2,100

2,110

5

2

5

6

8

25

18

3

6

3,019.95

2,321.10

2,739.62

1,696.62

3,169.57

4,389.65

4,802.64

3,068.36

2,449.11

3,019.95

1,735.26

2,366.99

1,696.62

2,535.34

4,389.65

4,472.68

3,068.36

1,821.51

February 1, 2008 March 16, 2006
2,310
2,300
0.9%
0.9%
2,403
2,365
2,273
2,280
1,680
2,390
1.0%
0.8%
1.1%
10
9
9
2,564.11
2,240.08
3,106.00
2,564.11
2,240.08
3,106.00

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
84.9%
100.0%

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

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

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

80.0%
77.1%
57.8%
-

100.0%
96.5%
100.0%
91.3%
92.3%
96.5%
100.0%
100.0%
100.0%
97.0%

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

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

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

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

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

0.9%

1.0%

9

8

2,447.80

1,814.56

2,447.80

1,814.56

100.0%
93.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
65.3%

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

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

Occupancy ratio
Lease Information

As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006

100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
97.0%
86.2%
82.2%
92.6%
100.0%
100.0%

Income and Retained Earnings Information for the 12th Fiscal Period

Operating periods

181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days䐟Rental and other operating revenues (\ Thousands)

164,556

101,171

41,580135,979

144,365

121,654

60,71065,17997,627

68,978100,946

80,334

112,771

80,142

74,68052,25994,142

86,88871,439Rental revenues

145,572

92,45637,816

119,121

128,765

110,804

52,561

57,26690,47663,421

88,423

71,466102,21457,28966,752

42,66084,57572,78361,641Other operating revenues

18,983

8,715

3,763

16,857

15,59910,850

8,148

7,912

7,150

5,557

12,522

8,868

10,55622,852

7,927

9,599

9,567

14,104

9,797

48,97926,24916,832

38,69945,11523,392

17,302

21,47625,13833,22729,732

36,73828,091

36,166

22,56420,022

27,65524,185

17,732

Property management fees

16,948

7,532

4,765

15,19913,999

9,042

5,081

7,706

7,157

10,584

9,748

11,933

10,015

6,936

7,145

6,392

8,988

7,342

5,276

Taxes

12,810

9,486

7,493

10,684

14,748

7,004

7,427

5,544

11,428

8,768

8,145

7,060

8,394

6,429

5,826

5,787

7,446

8,871

5,757

Utilities

15,370

5,393

4,140

10,887

13,438

6,151

4,126

5,636

5,235

5,904

6,388

6,164

6,300

4,276

4,468

3,815

5,690

6,626

3,986

Repairs and maintenance costs

2,720

1,377

198

420

1,045

91

398

1,128

345

1,779

3,247

4,280

951

17,591

1,150

1,877

660

108

741

Insurance

290

129

83

234

304

148

111

154

114

177

245

215

148

131

119

134

162

140

80

Trust fees and other expenses

840

2,330

151

1,273

1,578

954

157

1,305

856

6,013

1,956

7,083

2,282

799

3,853

2,016

4,707

1,095

1,891
53,706

䐠Property-related expenses (\ Thousands)䐡䠪䠫䠥䚷䠄䠙䐟-䐠䠅 (\ Thousands)

115,576

74,922

24,747

97,27999,25098,262

43,40743,703

72,48935,751

71,213

43,596

84,67943,975

52,11532,237

66,48662,703

䐢Depreciation (\ Thousands)

25,14022,492

4,895

14,02418,896

16,113

13,302

15,8985,940

10,461

17,431

21,086

10,77910,835

12,433

11,934

20,186

7,667

6,398

䐣Rental operating income 䠄䠙䐡-䐢䠅 (\ Thousands)

90,43552,42919,852

83,25580,35382,14830,10427,80466,54825,28953,78222,50973,89933,14039,681

20,30346,30055,03547,308

䐤Capital expenditures (\ Thousands)

7,772

200

-

2,170

-

1,475

2,100

2,211

-

108,508

8,932

71,519

560

7,446

1,110

180

66,0833,465

200

䐥䠪䠟䠢 䠄䠙䐡-䐤䠅 (\ Thousands)

107,804

74,722

24,747

95,10999,25096,78741,30741,492

72,489△72,757

62,280△27,923

84,11936,52951,00532,057403

59,23853,506

Reference

Expense ratio 䠄䠙䐠䠋䐟䠅

29.8%

25.9%

40.5%

28.5%

31.3%

19.2%

28.5%

32.9%

25.7%

48.2%

29.5%

45.7%

24.9%

45.1%

30.2%

38.3%

29.4%

27.8%

24.8%

Property tax for the year 2011or 2010(\ Thousands)

25,61918,935

14,98921,23029,49414,016

14,856

11,10322,85917,604

16,291

14,114

16,78812,858

11,652

11,573

14,893

17,743

11,514

5,717

3,593

1,353

4,760

4,971

4,488

2,124

2,222

3,471

2,175

3,635

2,680

4,029

3,138

2,587

1,724

3,278

3,052

2,553

3.47%

3.55%

3.26%

3.50%

3.44%

3.69%

3.50%

3.41%

3.56%

3.15%

3.60%

3.34%

3.57%

3.92%

3.47%

3.30%

3.48%

3.51%

3.58%

317,870

135,060

54,680230,330

149,280

120,000

98,39988,480111,266

207,750

141,400

152,030

160,510

158,270

87,590130,030

134,170

169,080

71,79026,48911,255

4,556

19,194

12,44010,000

8,199

7,373

9,272

17,312

11,783

12,66913,375

13,1897,299

10,835

11,18014,090Among 䐠 of property management fee (Leasing management fees) (\ Thousands)

Reference䠖 Percentage of rental and other operating revenues

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

‫ی‬Assets pledged as collateral

‫ی‬

-

‫ی‬

‫ی‬

‫ی‬

‫ی‬

‫ی‬

-

‫ی‬

‫ی‬

‫ی‬

‫ی‬

‫ی‬

‫ی‬

‫ی‬

‫ی‬

‫ی‬

5,982

-

-58-

a0141

a0611

a0551

a0641

a0331

a0571

a0081

a0231

a0591

a0261

a0381

䛆Reference䛇㸸181daysࠉࠉͤAs of April 30, 2011
Earnings Performance for the Individual Properties for the 12th Fiscal Period (November 1, 2010 to April 30, 2011)㸸

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0311

a0521

a0341

a0351

a0281

a0581

a0121

a0421

Other Regional Areas

KDX
Hamamatsucho
Dai-2 Building

Property NameKDX Funabashi
Building

Shin-toshin
Maruzen Building

KDX Nihonbashi
216 Building

KDX Okachimachi
Building

KDX Gobancho
Building

Kanda Kihara
Building

KDX Yotsuya
Building

Acquisition Date

March 1, 2006 September 1, 2008 February 29, 2008 December 1, 2009 March 1, 2007 March 31, 2008 August 1, 2005

KDX Iwamoto-cho
KDX NishiKDX Kiba Building
Building
Shinjuku Building

KDX MonzenNakacho Building

KDX Kanda
Misaki-cho
Building

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX Nogizaka
Building

KDX Nagoya
Sakae Building

Portus Center
Building

Karasuma Building

April 2, 2007 January 19, 2007 February 1, 2008 March 1, 2007 March 1, 2007

Price Information

May 1, 2006

May 1, 2008

June 20, 2006

July 14, 2006

July 1, 2009

September 21, 2005

June 1, 2007

Acquisition price (\ Millions)

2,252

2,200

2,110

2,010

2,000

1,951

1,950

1,950

1,864

1,580

1,500

1,400

1,380

1,305

1,155

1,065

7,550

5,570

5,400

Percentage of total portfolio

0.9%

0.9%

0.9%

0.8%

0.8%

0.8%

0.8%

0.8%

0.8%

0.6%

0.6%

0.6%

0.6%

0.5%

0.5%

0.4%

3.1%

2.3%

2.2%

Net book value (\ Millions)

2,430

2,261

2,160

1,992

2,134

1,997

1,863

1,998

1,821

1,580

1,530

1,420

1,381

1,202

1,294

1,125

7,630

4,682

5,431

Appraisal value at the end of period (\ Millions)

1,980

1,920

1,570

1,850

1,790

1,480

1,870

2,360

1,330

1,550

1,220

1,270

990

1,070

821

833

4,710

4,590

5,020

Percentage of total appraisal value

0.9%

0.9%

0.7%

0.8%

0.8%

0.7%

0.8%

1.1%

0.6%

0.7%

0.6%

0.6%

0.4%

0.5%

0.4%

0.4%

2.1%

2.1%

2.3%

19

8

5

7

4

7

8

4

9

7

6

4

7

10

8

4

14

27

38

Leasable floor area (䟝)3,861.69

1,953.50

1,922.79

1,615.20

1,792.54

1,650.58

1,946.89

2,530.71

1,524.68

2,450.90

1,599.71

2,010.55

1,339.46

2,747.28

2,178.61

1,250.12

6,923.12

11,569.15

8,736.10

Leased floor area䠄䟝)

3,861.69

1,953.50

1,922.79

1,615.20

1,792.54

1,650.58

1,820.25

2,530.71

1,524.68

2,450.90

1,401.10

1,695.65

1,164.27

2,747.28

2,178.61

702.52

6,485.98

11,082.10

8,229.62

100.0%
98.5%
100.0%
100.0%
100.0%
98.4%
100.0%
100.0%
100.0%
97.9%

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

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

100.0%
75.0%
87.5%
-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.7%
100.0%
100.0%-

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

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

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

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

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.0%
100.0%
100.0%
69.1%

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

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

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

100.0%
100.0%
100.0%
100.0%
100.0%
88.6%
100.0%
100.0%
100.0%-

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

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

93.7%
90.3%
90.3%
72.3%
-

95.8%
93.9%
88.5%
88.5%
93.4%
100.0%
100.0%
94.6%
97.1%
100.0%

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

Operating periods

181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days181days䐟Rental and other operating revenues (\ Thousands)

105,303

64,38264,27656,74969,031

41,89568,941

93,28957,256

67,811

43,841

51,66634,26660,99048,59528,903

163,313290,351

204,408

Rental revenues

90,78258,29553,32152,022

61,10738,04863,90585,49653,26260,26838,79643,80431,81153,66341,756

19,217144,025

241,402178,597

Other operating revenues

14,520

6,087

10,955

4,727

7,924

3,847

5,035

7,793

3,994

7,543

5,045

7,861

2,455

7,326

6,839

9,685

19,28848,94825,811

32,42017,95915,962

17,655

15,906

16,644

17,25023,197

14,272

16,323

13,27013,2208,776

19,657

20,592

10,27354,788127,083

64,400Property management fees

13,193

4,797

6,438

5,505

5,929

4,164

6,330

9,152

4,163

5,937

4,650

4,943

3,767

6,714

10,1183,351

16,93774,43220,801

Taxes

7,864

8,410

4,883

5,027

3,322

4,317

4,497

6,594

3,176

5,030

4,720

3,314

2,755

3,946

4,242

3,375

22,74625,51821,443

Utilities

8,069

4,239

3,651

2,740

3,509

2,304

4,545

5,036

2,624

4,415

3,265

4,550

1,903

4,879

4,173

2,274

13,204

18,696

15,831

Repairs and maintenance costs

2,734

184

143

391

1,545

1,815

1,078

1,497

40

63

263

307

177

2,104

578

1,112

242

3,060

3,045

Insurance

215

90

96

81

71

71

87

126

62

110

81

105

63

146

100

62

370

2,372

431

Trust fees and other expenses

343

236

750

3,910

1,527

3,971

711

790

4,205

765

289

-

109

1,866

1,378

96

1,287

3,004

2,846

䐡䠪䠫䠥䚷䠄䠙䐟-䐠䠅 (\ Thousands)

72,882

46,42348,31339,094

53,12525,25051,69070,092

42,98451,48830,57038,44525,49041,33228,002

18,629108,525

163,267

140,008

䐢Depreciation (\ Thousands)

19,249

4,397

7,453

11,225

7,944

10,160

9,541

9,177

13,076

13,209

6,268

9,457

4,485

24,492

9,843

5,624

71,23365,28329,246

䐣Rental operating income 䠄䠙䐡-䐢䠅 (\ Thousands)

53,63342,02640,86027,86845,18015,09042,14960,91429,907

38,27824,301

28,98821,004

16,84018,15913,00537,292

97,983

110,761

Number of tenants

Occupancy ratio
Lease Information

As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006

Income and Retained Earnings Information for the 12th Fiscal Period

䐠Property-related expenses (\ Thousands)

䐤Capital expenditures (\ Thousands)

5,240

945

6,756

-

600

6,744

1,475

52,003

-

2,996

1,000

970

560

1,833

300

1,907

-

6,920

9,397

䐥䠪䠟䠢 䠄䠙䐡-䐤䠅 (\ Thousands)

67,64245,47841,55739,09452,52518,50650,21518,08842,984

48,492

29,57037,47524,93039,49927,702

16,722

108,525

156,347

130,611

23.0%

39.7%

30.3%

25.6%

25.6%

32.2%

Reference

Expense ratio 䠄䠙䐠䠋䐟䠅

30.8%

27.9%

24.8%

31.1%

25.0%

24.9%

24.9%

24.1%

42.4%

35.5%

33.5%

43.8%

31.5%

Property tax for the year 2011or 2010(\ Thousands)

15,70916,843

10,386

10,053

6,648

8,634

8,995

13,188

6,353

10,061

9,444

6,633

5,511

7,892

8,484

6,754

45,09551,041

43,638

3,636

2,261

2,297

1,955

2,493

1,370

2,470

3,365

2,045

2,434

1,518

1,839

1,219

2,164

1,563

994

5,547

9,257

7,090

3.45%

3.51%

3.57%

3.45%

3.61%

3.27%

3.58%

3.61%

3.57%

3.59%

3.46%

3.56%

3.56%

3.55%

3.22%

3.44%

3.40%

3.19%

3.47%

160,670

81,71070,90031,19064,40055,23080,43090,02019,68093,65069,95061,47046,140141,590

109,860

49,95094,270527,651

229,180

13,389

6,809

5,908

2,599

5,366

4,602

6,702

7,501

1,640

7,804

5,829

5,122

3,845

11,799

9,155

4,162

7,855

43,970Among 䐠 of property management fee (Leasing management fees) (\ Thousands)

Reference䠖 Percentage of rental and other operating revenues

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

‫ی‬Assets pledged as collateral

-

‫ی‬

‫ی‬

-

-

‫ی‬

-

-

‫ی‬

-

‫ی‬

-

‫ی‬

-

-

-

‫ی‬

19,098‫ی‬Note:The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.

-59-

a0531

a0691

a0541

a0441

a0701

a0241

a0251

a0361

b0191

b0031

b0341

【Reference】

Earnings Performance for the Individual Properties for the 12th Fiscal Period (November 1, 2010 to April 30, 2011)：181days

Type

Office Buildings

Residential Properties

Location

Other Regional Areas

Tokyo Metropolitan Area

Property Name

KDX HakataMinami Building

Acquisition Date

February 1, 2008 December 1, 2010 February 1, 2008

Price Information

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

c0021

71

Central Urban Retail Properties
Other Regional
Tokyo Metropolitan AreaAreas

KDX Sendai
Building

Kitananajo SIA
Building

KDX Minami
Semba Dai-1
Building

KDX Minami
Semba Dai-2
Building

KDX Niigata
Building

Residence
Charmante
Tsukishima

Court Mejiro

GraditoKawaguchi

Venus
Hibarigaoka

Frame
Jinnan-zakaJune 30, 2006 December 8, 2005 August 1, 2005

KDX Yoyogi
Building

Total of 71
Properties

June 1, 2007

March 25, 2011

May 1, 2006

May 1, 2006

March 1, 2007

May 1, 2006

August 1, 2005

2,870
1.2%

2,220
0.9%

2,100
0.9%

2,005
0.8%

1,610
0.7%

1,560
0.6%

1,305
0.5%

5,353
2.2%

1,250
0.5%

1,038
0.4%

1,800
0.7%

9,900
4.0%

2,479
1.0%

246,456
100.0%

4,819
3,690
1.7%
43
10,062.83

2,847
2,970
1.3%
10
7,071.53

2,224
1,670
0.8%
8
3,993.67

2,167
1,440
0.6%
30
3,957.62

2,034
2,050
0.9%
20
3,788.73

1,476
1,060
0.5%
11
3,108.17

1,379
1,130
0.5%
24
2,693.72

1,455
872
0.4%
20
4,060.47

5,064
4,480
2.0%
1
7,711.14

1,182
951
0.4%
18
2,046.79

1,014
937
0.4%
2
1,619.34

1,852
1,400
0.6%
120
12,829.64

9,853
9,550
4.3%
11
4,655.71

2,530
1,920
0.9%
11
1,182.14

246,187
221,774
100.0%
883
286,237.93

7,584.72

6,438.47

3,706.88

3,921.90

3,788.73

2,971.84

2,693.72

2,708.19

7,711.14

1,868.74

1,619.34

12,406.81

4,655.71

1,182.14

270,723.94

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

91.0%
-

92.8%
96.4%
96.4%
96.4%
100.0%
88.1%
88.1%
-

99.1%
98.7%
92.8%
96.6%
91.2%
86.2%
93.7%
97.1%
-

100.0%
-

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

100.0%
100.0%
94.1%
82.1%
88.1%
91.2%
94.1%
93.6%
93.6%
90.0%

66.7%
65.4%
64.3%
62.2%
73.2%
76.2%
61.0%
71.2%
83.9%
-

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

91.3%
95.2%
95.2%
85.3%
96.1%
100.0%
95.1%
100.0%
95.0%
100.0%

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

96.7%
92.4%
96.3%
96.5%
98.9%
88.7%
93.0%
94.4%
98.7%
84.6%

100.0%
100.0%
100.0%
93.6%
96.0%
97.9%
97.9%
100.0%
91.7%
100.0%

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

94.6%
93.6%
94.4%
94.7%
95.7%
95.6%
95.9%
96.9%
95.9%
95.3%

Percentage of total portfolio
Appraisal value at the end of period (\ Millions)

KDX Kitahama
Building

c0011

4,900
2.0%

Acquisition price (\ Millions)
Net book value (\ Millions)

KDX KobayashiDoshomachi
Building

b0181※As of April 30, 2011

September 30, 2005

Occupancy ratio
Lease Information

As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007
As of October 31, 2006

Income and Retained Earnings Information for the 12th Fiscal Period

Operating periods

181days151days181days181days

37days181days181days181days181days181days181days181days181days181days①Rental and other operating revenues (\ Thousands)

159,151

143,858

80,281

92,18020,30454,592

57,37451,365

157,198

40,58832,88993,184

283,774

64,3208,136,917

Rental revenues

135,141

129,836

68,05079,925

17,25543,01943,96644,677

139,393

37,62832,75982,208262,186

57,482

7,208,235

Other operating revenues

24,00914,021

12,231

12,255

3,048

11,573

13,407

6,687

17,8042,959

130

10,976

21,587

6,837

928,681

50,65865,44927,66532,483

4,698

23,84818,32428,24941,982

10,777

6,599

36,052

54,166

14,6212,360,282

Property management fees

15,191

13,142

7,894

12,069

2,112

6,881

5,890

10,954

16,796

2,921

2,473

8,204

19,008

4,312

811,786

Taxes

10,065

6,363

5,234

7,476

-

7,150

5,850

8,479

10,776

3,144

1,577

8,331

15,9094,351

643,178

Utilities

20,603

11,121

7,974

10,484

2,339

6,353

5,193

7,035

1,228

734

376

2,085

16,4603,513

561,061

Repairs and maintenance costs

1,261

-

574

878

30

552

378

574

4,890

1,410

1,289

6,664

836

421

123,949

453

323

175

212

40

161

142

244

417

96

63

448

218

52

16,209Trust fees and other expenses

3,083

34,499

5,811

1,361

175

2,749

868

960

7,872

2,470

818

10,318

1,732

1,970

204,097③ＮＯＩ （＝①-②） (\ Thousands)

108,492

78,40852,616

59,697

15,60630,74339,05023,116115,215

29,81026,29057,132

229,607

49,6995,776,634④Depreciation (\ Thousands)

33,14344,027

19,47818,1104,557

13,652

13,365

12,37445,522

11,206

10,02623,09756,9198,646

1,406,895⑤Rental operating income （＝③-④） (\ Thousands)

75,34934,38133,137

41,587

11,04817,091

25,684

10,741

69,69318,604

16,26334,034

172,688

41,0534,369,739⑥Capital expenditures (\ Thousands)

15,680

-

5,029

2,795

-

2,656

9,182

3,036

-

-

-

-

600

5,458

574,700⑦ＮＣＦ （＝③-⑥） (\ Thousands)

92,81278,40847,58756,902

15,60628,087

29,86720,080115,215

29,81026,29057,132

229,00744,2415,201,934

Expense ratio （＝②／①）

31.8%
20,14345.5%
33,742

34.5%
10,45835.2%
14,95323.1%
18,09743.7%
14,265

31.9%
11,67655.0%
16,501

26.7%
21,551

26.6%
6,288

20.1%
3,176

38.7%
16,72519.1%
31,822

22.7%
8,701

29.0%
1,440,950

5,471
3.44%

4,536
3.15%

2,712
3.38%

3,099
3.36%

732
3.61%

1,741
3.19%

1,967
3.43%

1,520
2.96%

4,832
3.07%

1,436
3.54%

1,207
3.67%

3,067
3.29%

10,477
3.69%

2,326
3.62%

285,230
3.51%

140,450
11,70487,3407,278

167,760
13,980

192,400
16,033

202,790
16,899140,130
11,677

122,820
10,235249,590
20,799170,810
14,23474,6506,220

30,4802,540

339,440
28,28682,3306,860

39,1603,263

10,625,410
885,451

-

◆

-

◆

◆

-

◆

②Property-related expenses (\ Thousands)

Insurance

Property tax for the year 2011or 2010(\ Thousands)
Reference

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

Reference： Percentage of rental and other operating revenues

179days *Total: Cost-weighted average management period (days)

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

◆

Assets pledged as collateral

-

-

-

◆

◆

-

-60-

(Reference)Borrowings
Borrowings on a financial institution basis as of April 30, 2011 are as follows.

Last Repayment
Date

Mitsubishi UFJ Trust and Banking Corporation

January 29, 2010

1,300,000

-

1.240

January 29, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

February 26, 2010

500,000-

1.548 February 28, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

April 30, 2010

1,000,000

-

1.340

April 28, 2011

1,000,000

-

1.340

April 30, 2011

Classification

Balance at the
AverageEnd ofBalance at theInterest
Drawndown Date
Previous
End of Period
Rate
Period(\Thousands)(Note 1)(\Thousands)

LenderShort-Term Payable

Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation

July 30, 2010

1,500,000

1,500,000

1.140

July 31, 2011

Mitsubishi UFJ Trust and Banking Corporation

October 29, 2010

1,000,000

1,000,000

1.140

October 31, 2011

Mitsubishi UFJ Trust and Banking Corporation

January 31, 2011-

2,700,000

1.090

January 31, 2012

Mitsubishi UFJ Trust and Banking Corporation

March 25, 2011-

2,000,000

1.430

March 23, 2012

The Norinchukin Bank

April 18, 2011

1.380 November 30, 2011

Sub Total
Mitsubishi UFJ Trust and Banking Corporation

July 31, 2008

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
Aozora Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
Aozora Bank, Ltd.

-1,500,000

6,300,000

8,700,000

1,400,000

-

1.870

1,300,000

-

1.870

800,000-

1.870

February 29, 2008

2,000,000-

1.366 February 28, 2011

June 30, 2008

1,000,000

-

1.987

September 22, 2008

1,250,000

-

1.713

March 22, 2011

July 15, 2008

2,000,000

-

1.867

March 31, 2011

2,000,000

-

1.818

March 31, 2011

The Norinchukin Bank

April 17, 2007

1,500,000

-

1.646

April 16, 2011

The Chuo Mitsui Trust and Banking Co., Ltd.(Note3)

April 30, 2009

1,500,000

-

2.225

April 28, 2011

Aozora Bank, Ltd.

May 1, 2006

1,500,000

-

2.199

April 30, 2011

1,000,000

-

2.199

Current Potion of Long-Term Payable

Mitsui Sumitomo Insurance Co., Ltd.
Resona Bank, Ltd.

(Note4)

April 30, 2009

1,000,000

-

2.230

Mitsubishi UFJ Trust and Banking Corporation

July 14, 2006

1,000,000

1,000,000

2.149

July 13, 2011

Sumitomo Mitsui Banking Corporation

July 31, 2008

2,200,000

2,200,000

1.992

July 31, 2011

1,000,000

1,000,000

1.992

300,000

300,000

1.992

The Chuo Mitsui Trust and Banking Co., Ltd.
Resona Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

February 29, 2008

1,500,000

1,500,000

1.429

The Chuo Mitsui Trust and Banking Co., Ltd.

September 1, 2008

1,000,000

1,000,000

1.775 September 1, 2011

Sumitomo Mitsui Banking Corporation

March 31, 2008

The Chuo Mitsui Trust and Banking Co., Ltd.

3,000,000

3,000,000

1.609 September 30, 2011

2,000,000

1.559

April 30, 2009

3,500,000

3,500,000

2.240

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

October 26, 2010

1,500,000

1,500,000

1.243

The Chuo Mitsui Trust and Banking Co., Ltd.(Note5)

May 1, 2008

1,000,000

1,000,000

1.905 November 1, 2011

2,500,000

2,500,000

1.964 November 30, 2011

(Note5)January 10, 2008

2,500,000

2,500,000

1.503(Note5)February 27, 2009

470,000

460,000(Note5)

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation

January 10, 2012
(Note 6)
Full onmaturity

April 2, 2007

2,000,000

2,000,000

1.875

April 2, 2012

Aozora Bank, Ltd.

April 30, 2009

2,000,000

2,000,000

2.240

April 27, 2012

45,720,000

27,460,000

Sub Total-61-(Note 2)2.071 February 29, 2012

The Chuo Mitsui Trust and Banking Co., Ltd.(Note5)(Note5)Full onmaturity

October 31, 2011

December 1, 2006

The Norinchukin Bank

Remarks

Full onSecured/(Note 2)maturity
Unguaranteed

August 31, 2011

2,000,000

Aozora Bank, Ltd.

Usage

January 31, 2011

September 30, 2008

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Payment
MethodSecured/
UnguaranteedClassification

LenderBalance at the
AverageEnd ofBalance at theInterest
Drawndown Date
Previous
End of Period
Rate
Period(\Thousands)(Note 1)(\Thousands)

Last Repayment
Date

Payment
MethodDevelopment Bank of Japan Inc.

May 1, 2006

5,000,000

5,000,000

2.731

April 30, 2016

Development Bank of Japan Inc.

September 1, 2006

3,000,000

3,000,000

2.124

August 31, 2013

June 30, 2008

1,500,000

1,500,000

2.150

June 30, 2012

3,000,000

3,000,000

2.263 December 28, 2012

940,000

920,000

2.040

August 31, 2012

(Note 7)

Resona Bank, Ltd.
Development Bank of Japan Inc.

February 27, 2009

Sumitomo Mitsui Banking Corporation

October 26, 2009

960,000

940,000

2.424

October 26, 2013

(Note 8)

Sumitomo Mitsui Banking Corporation

October 30, 2009

1,920,000

1,880,000

2.445

October 30, 2013

(Note 9)Resona Bank, Ltd.

December 8, 2009

500,000

500,000

1.671 December 8, 2012

The Chuo Mitsui Trust and Banking Co., Ltd.

January 13, 2010

1,000,000

1,000,000

Full onmaturity

January 15, 2013
January 30, 2015

Sumitomo Mitsui Banking Corporation

January 29, 2010

1,152,000

1,128,000

2.173

Aozora Bank, Ltd.

February 18, 2010

1,500,000

1,500,000

1.899 February 18, 2013

Sumitomo Mitsui Banking Corporation

2,185,000

2,127,500

2.190 February 18, 2015

Development Bank of Japan Inc.

1,615,000

1,572,500

2.190

950,000

925,000

2.190
2.190

The Chuo Mitsui Trust and Banking Co., Ltd.
Aozora Bank, Ltd.

Long-Term Payable

475,000

462,500

1,950,000

1,900,000

2.220

April 2, 2015

Resona Bank, Ltd.

July 30, 2010

500,000

500,000

1.488

July 31, 2013

The Chuo Mitsui Trust and Banking Co., Ltd.

3,700,000

3,700,000

1.660

January 31, 2014

Sumitomo Mitsui Banking Corporation

3,700,000

3,700,000

1.731

July 31, 2014

2,500,000

2,500,000

1.450

October 31, 2012

500,000

500,000

1.463

October 31, 2013-

1,500,000

The Chuo Mitsui Trust and Banking Co., Ltd.

-

800,000

1.584

Aozora Bank, Ltd.

-

400,000

1.584

Sumitomo Mitsui Banking Corporation-

1,200,000

Resona Bank, Ltd.

-

800,000-

2,300,000

2.023 November 12, 2017-

500,000

1.372 November 12, 2013

The Chuo Mitsui Trust and Banking Co., Ltd.

-

200,000

1.372

Aozora Bank, Ltd.

-

100,000

1.372

Sumitomo Mitsui Banking Corporation-

800,000

Full on1.472 November 12, 2015 maturity

Resona Bank, Ltd.

-

200,000

1.472

Development Bank of Japan Inc.

-

700,000

2.206 November 12, 2017-

1,300,000

1.570

January 31, 2014-

800,000

1.939

January 29, 2016-

3,000,000

1.912

August 31, 2015-

500,000

1.952

January 29, 2016

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

November 12, 2010

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

Sumitomo Mitsui Banking Corporation

December 1, 2010

January 31, 2011

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

February 28, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1.789 November 12, 2015
1.789

March 22, 2011-

2,700,000

1.630 September 22, 2014

Aozora Bank, Ltd.

March 31, 2011-

2,000,000

1.525 September 30, 2013

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

March 31, 2011-

2,000,000

1.905January 29, 2016

Resona Bank, Ltd.

March 31, 2011-

1,000,000

1.390

March 31, 2016

Mitsubishi UFJ Trust and Banking Corporation

April 28, 2011-

1,000,000

1.496

April 30, 2013-

1,500,000

1.859

October 31, 2015

1.886

January 29, 2016

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

1,000,000

Sub Total

38,547,000

64,555,500

Total

90,567,000

100,715,500(Note12)1.584 November 12, 2013

The Chuo Mitsui Trust and Banking Co., Ltd.

Aozora Bank, Ltd.

Secured/
Unguaranteed(Note11)

April 2, 2010

October 29, 2010

(Note 2)

(Note10)Full onmaturity

Sumitomo Mitsui Banking Corporation

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Remarks

Full onmaturity

Development Bank of Japan Inc.

1.901

Usage

Notes:
1. The average interest rate is the weighted-average interest rate for the fiscal period. The Investment Corporation entered into interest-rate swap transactions with the aim ofminimizing the risk of future increase in interest rates. The effect of interest-rate swap transactions has been incorporated into calculations for the weighted-average interest
rate.
2. Funds procured through borrowings were used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings.
3. The Investment Corporation undertook prepayment on March 22, 2011.
4. The Investment Corporation undertook prepayment on March 31, 2011.
5. Borrowings listed in the current potion of long-term payable were listed in long-term payable in the previous fiscal period.
6. Repayment Method: August 31, 2009 to August 31, 2011: repayment of 10,000 thousand yen every 6 months, and February 29, 2012: repayment of 450,000 thousand yen
7. Repayment Method: August 31, 2009 to February 29, 2012: repayment of 20,000 thousand yen every 6 months, and August 31, 2012: repayment of 880,000 thousand yen
8. Repayment Method: February 26, 2010 to August 31, 2013: repayment of 20,000 thousand yen every 6 months, and October 26, 2013: repayment of 840,000 thousand yen
9. Repayment Method: January 29, 2010 to July 31, 2013: repayment of 40,000 thousand yen every 6 months, and October 30, 2013: repayment of 1,680,000 thousand yen
10. Repayment Method: April 30, 2010 to October 31, 2014: repayment of 24,000 thousand yen every 6 months, and January 30, 2015: repayment of 960,000 thousand yen
11. Repayment Method: February 26, 2010 to August 31, 2014: repayment of 137,500 thousand yen every 6 months, and February 18, 2015: repayment of 4,125,000 thousandyen
12. Repayment Method: August 31, 2010 to February 28, 2015: repayment of 50,000 thousand yen every 6 months, and April 2, 2015: repayment of 1,500,000 thousand yen-62-