KENEDIX REALTY INVESTMENT CORPORATION (8972)

Translation Purpose Only

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2008
(May 1, 2008 to October 31, 2008)

December 11, 2008

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 security report: January 29, 2009
Planned start of distribution payments:

January 16, 2009

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2008 (SEVENTH FISCAL PERIOD)(1) Business Results(The amount is rounded down to the nearest ¥million)
SeventhFiscal Period
Sixth
Fiscal Period

Operating Revenues

Operating Income¥8,456(△1.5%)

4,144(1.9%)

3,124(△6.6%)¥8,582(19.1%)

4,065(17.1%)

3,343(19.7%)Net Income
SeventhFiscal Period
Sixth
Fiscal Period

Ordinary Income

Net Income

Return on

Ordinary Income Ordinary Income toper Unit

Unitholders’ Equity

to Total Assets

Operating Revenues

3,123(△6.5%)

15,618

2.4%

1.3%

36.9%

3,342

(19.7%)

16,711

2.6%

1.5%

39.0%

(2) Distribution（The total distribution is rounded down to the nearest ¥million.）

Distributions per
Unit (Yen)

Total Distribution

Excluding Excess(Millions of Yen)of Earnings
SeventhFiscal Period
Sixth
Fiscal Period

Distributions in

Total Distributions

Excess of Earnings

in Excess ofper Unit (Yen)

Earnings

Distribution Ratio
Payout Ratio

to Unitholders’Equity¥15,618¥3,123－－100.0%

2.4%¥16,711¥3,342－－100.0%

2.6%

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

(3) Financial Position

SeventhFiscal Period
Sixth
Fiscal Period（The 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)¥239,648¥128,087

53.4%¥640,437¥230,520¥128,31455.7%¥641,570(Reference) Total net assets
Seventh fiscal period: ¥128,087 million

Sixth fiscal period: ¥128,314 million-1-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Cash Flow Position

SeventhFiscal Period
Sixth
Fiscal Period（The amount are rounded down to the nearest ¥million.）

Cash Flows from

Cash Flows from

Cash Flows from

Cash and Cash Equivalents at

Operating Activities

Investing Activities

Financing Activities

End of Period

9,279△14,377

5,659

11,70336,143△47,793

11,46011,141

2．FORECAST OF RESULTS FOR THE EIGHTH FISCAL PERIOD (November 1, 2008 to April 30, 2009)

EighthFiscal Period

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

8,298(△1.9%)

3,941(△4.9%)

2,881(△7.8%)

2,880(△7.8%)

Distribution perUnit(Yen)Excluding
Excess of Earnings
14,400Distribution in
Excess ofEarnings per Unit
(Yen)

-

(Reference) Estimated net income per unit for the eighth fiscal period: ¥14,400

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 end of period (including treasury units)
Seventh fiscal period: 200,000 units
Sixth fiscal period: 200,000 units(b) Number of treasury units at end of period
Seventh fiscal period: 0 units
Sixth fiscal period: 0 units*Explanation on the appropriate use of the forecast of results and other matters of special consideration
The forecast of results for the eighth fiscal period ending April 30, 2009 are calculated as of December 11, 2008 based on theassumptions presented on page 12 “Preconditions and Assumptions for the Fiscal Period Ending April 30, 2009”. Readers areadvised that actual operating revenues, operating income, ordinary income, net income, distribution per unit may differ significantly
from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of the forecast
distribution per unit.

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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 July25, 2008), and so it has been omitted from this document.

2.

Management Policy and Operating Conditions(1) Management Policy
There were no major changes to the “Investment Policy”, “Investment Strategy” and “Distribution Policy” from the most recent
securities report (submitted on July 25, 2008), and so it has been omitted from this document.
(2) Operating Conditions(1) Operating Conditions for the Seventh Fiscal Period
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. (Securities Code: 8972). Subsequently, the Investment Corporation undertook an additional issue of 3,970
investment units by way of third-party allotment on August 16, 2005; 73,660 investment units through a primary offering in Japan andglobal offering on May 1, 2006; and 3,970 investment units by way of third-party allotment on May 26, 2006. The Investment
Corporation also undertook an additional issue of 40,900 investment units through a primary offering in Japan and global offering on
May 22, 2007; and 2,100 investment units by way of third-party allotment on June 19, 2007. Consequently, as of October 31, 2008, theend of the seventh fiscal period, the number of investment units issued and outstanding totaled 200,000 units.
The Investment Corporation appointed Kenedix REIT Management, Inc. as its asset management company. In concert with the AssetManagement Company, the Investment Corporation strives to maximize cash distribution to investors by securing stable earnings andsustainable investment growth. To this end, the Investment Corporation adopts a dynamic and flexible investment stance that accuratelyreflects its environment and market trends, and endeavors to ensure a timely response to each and every opportunity. The Investment
Corporation endeavors to develop a diversified investment portfolio named “KENEDIX Selection,” adopting a three-point investment
criteria based on property type, area and size.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review, as the global economy weakened due in part to concerns of increasing loss by U.S. and European
financial institutions and doubts about the outlook of the U.S. economy stemming from the subprime mortgage crisis, the sense of
uncertainty over the future of the Japanese economy grew as evident by the decrease in corporate earnings from deteriorating terms oftrade, capital expenditures being on a weak note and other factors.
As for the real estate market, according to the land price survey by prefectural governments as of July 1, 2008, an analysis of theyear-on-year change in average land prices in Japan for the one year period from July 2007 decreased by 0.8% for commercial land,changing from a year-on-year increase in the previous year to a decrease, and decreased by 1.2% for residential land, a slightly greater
degree of year-on-year decrease than the previous year. In Tokyo Area, the average increased by 4.0% for commercial land and 1.6% forresidential land, but the degree of year-on-year increase was much smaller for both commercial land and residential land. In the threemajor metropolitan areas, it was the third consecutive year that land prices increased on average, but there were many points where thedegree of increase was considerably smaller.
(b) Management Performance
As of the end of the sixth fiscal period, the Investment Corporation owned 68 properties with a total acquisition price of ¥212,848
million. In the fiscal period under review, the Investment Corporation acquired 3 office buildings (total acquisition price of ¥14,314
million) in Central Tokyo, and sold 1 office building (initial acquisition price of ¥1,430 million) and 1 central urban retail property (initialacquisition price of ¥3,680 million) in other regional areas. As a result, the number of properties owned as of October 31, 2008 stood at
69, with a total acquisition price of ¥222,053 million.
Looking at the portfolio as a whole, 88.7% was comprised of office buildings, 5.5% of central urban retail properties and 5.7% ofresidential properties on an acquisition price basis. The occupancy ratio as of the end of the seventh fiscal period was 95.6%, reflecting
stable investment and asset management.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)＜External Growth Performance after Third Fiscal Period＞
Third Fiscal Period(as of October 31, 2006)

Fourth Fiscal Period(as of April 30, 2007)

Fifth Fiscal Period(as of October 31, 2007)

Sixth Fiscal Period

Seventh Fiscal Period(as of April 30, 2008)(as of October 31, 2008)
Total
Acquisition Price

Total
Acquisition Price(Millions of Yen)

Ratio
(%)

Total
Acquisition Price(Millions of Yen)

Ratio
(%)

Total
Acquisition Price(Millions of Yen)

Ratio
(%)

Total
Acquisition Price(Millions of Yen)

Ratio
(%)

86,224

58.7

115,979

66.2

137,97970.0

184,08086.4

196,965

88.7

16,05910.9

16,0599.1

16,0598.1

16,0597.5

12,379

5.5

Residential Properties

44,45930.2

43,052

24.5

43,05221.8

12,7095.9

12,7095.7

Total

146,742100.0

175,090100.0

197,090

100.0

212,848100.0

222,053

100.0

Tokyo Metropolitan Area

123,32184.0

150,36485.8

162,51482.4

174,92382.1

189,238

85.2

Other Regional Areas

23,421

15.9

24,726

14.1

34,576

17.5

37,92517.8

32,815

14.7

Total

146,742100.0

175,090100.0

197,090

100.0

212,848100.0

222,053

100.0

Office Buildings
Type of Use

Central Urban Retail
Properties(Millions of Yen)

Ratio
(%)

Area

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.
Make Diversified Acquisitions
As of October 31, 2008, the Investment Corporation owned 69 properties for a total acquisition price of approximately ¥222,053
million with 95.6% occupancy ratio. Supported by this asset base along with the management know-how of mid-sized officebuilding accumulated by the Asset Management Company, the Investment Corporation has acquired properties based on its
diversified property acquisition strategy. The Investment Corporation has also expanded the asset size of the portfolio based on adiverse range of property acquisition strategies. Exemplary cases include how lease-up and asset value are enhanced in a shortperiod of time for properties that were acquired with a low occupancy ratio by launching leasing activities only after appropriate
renovation work is conducted following acquisition (KDX Nishi-Gotanda Building and KDX Toranomon Building which wereacquired during the fourth fiscal period) and how properties are acquired at the stage when construction of the building is yet to becompleted in order to secure superior properties early (Sakae 4-chome Office Building (Tentative Name) which was acquired
during the sixth fiscal period). In addition, during the fiscal period under review (fiscal period ended October 31, 2008), a
newly-built superior property was acquired by utilizing the right of first refusal on properties in which the Kenedix Group (theKenedix Group refers to Kenedix, Inc., Kenedix Advisors Co., Ltd. and other related companies; the same hereafter) is involvedin the development (KDX Harumi Building). Based on these and other strategies, the Investment Corporation successfullyacquired various properties.
Selling of Properties
The Investment Corporation succeeded in selling 2 residential properties during the second fiscal period, 2 residential properties
during the fourth fiscal period and 23 residential properties during the sixth fiscal period. In the fiscal period under review, theInvestment Corporation sold 1 office building (initial acquisition price of ¥1,430 million) and 1 central urban retail property(initial acquisition price of ¥3,680 million) both located in other regional areas.
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 and quality service. Asof October 31, 2008, the investment portfolio maintains a high occupancy ratio. The Investment Corporation is satisfied with thequality of property management.
The Investment Corporation leverages scale merits and the communication and negotiation skills of the Kenedix Group in aneffort to reduce operating costs, and have succeeded reductions in building maintenance costs.
Furthermore, during the fiscal period under review, the Investment Corporation consolidated the building maintenance company
for 25 office buildings in Tokyo from 18 companies to 3 companies. This involved dividing the Tokyo into three areas and, in-4-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

principle, consolidating building maintenance for each area to a single building maintenance company in view of enhancing thequality and service as well as improving the efficiency of building maintenance activities.
C. Capital Acquisition
The Investment Corporation undertook borrowings of ¥10.5 billion to support the acquisition of additional assets and refinanced ¥17.75
billion during the seventh fiscal period to total of ¥28.25 billion in borrowings (¥22.75 billion in long-term borrowings and ¥5.5 billion in
short-term borrowings (Note 1)). Details are provided as follows.
Note 1: Short-term borrowings refers to borrowings with a period of less than or equal to one year from the drawdown date to the repayment
date. Long-term borrowings refers to borrowings with a period of more than one year from the drawdown date to the repayment date.

New Borrowings
Classification
Series 25-A
Series 25-L (Note 2)
Series 26-A
Series 26-B
Series 26-C
Series 26-L (Note 2)
Series 29
Total

Borrowing Amount(¥ Billion)
10
10
10
15
30
20
10
105

Drawdown Date

Repayment Date

May 1, 2008
May 1, 2008
June 30, 2008
June 30, 2008
June 30, 2008
June 30, 2008
September 1, 2008-

November 1, 2011
November 1, 2008
February 28, 2011
June 30, 2012
December 28, 2012
September 30, 2008
September 1, 2011-

Drawdown Date

Repayment Date

July 15, 2008
July 31, 2008
July 31, 2008
July 31, 2008
September 22, 2008
September 30, 2008
October 31, 2008
October 31, 2008
October 31, 2008-

March 31, 2011
January 31, 2010
January 31, 2011
July 31, 2011
March 22, 2011
March 31, 2011
October 31, 2009
October 31, 2010
October 30, 2009-

Borrowing
Period (Year)
3.5
0.5
2.7
4.0
4.5
0.3
3.0
-

Refinanced Borrowings
Classification
Series 27
Term Loan 28-A
Term Loan 28-B
Term Loan 28-C
Series 30
Series 31-L (Note 2)
Series 32-A
Series 32-B
Series 32-L (Note 2)
Total

Borrowing Amount(¥ Billion)
20
25
35
35
12.5
20
10
5
15
177.5

Borrowing
Period (Year)
2.7
1.5
2.5
3.0
2.5
2.5
1.0
2.0
1.0
-

Note 2: Borrowing is based on the commitment line agreements.

As a result, the balance of interest-bearing debt stood at ¥98.75 billion as of October 31, 2008, comprising ¥86.75 billion in borrowings(¥81.75 billion in long-term borrowings and ¥5.0 billion in short-term borrowings) and ¥12.0 billion in investment corporation bonds.
All the floating interest rate long-term borrowings (¥81.75 billion) as of October 31, 2008 are fixed by utilizing interest-swap agreements.
In addition, the long-term debt ratio (Note 3) and the long-term fixed interest debt ratio (Note 4) was both 94.9%, respectively.
Note 3: Long-term debt ratio＝（Balance of long-term borrowings＋Balance of investment corporation bonds）÷（Total borrowings＋
Balance of investment corporation bonds）Long-term debt ratio is rounded down to the nearest first decimal place.
Note 4: Long-term fixed interest debt ratio＝（Balance of long-term fixed interest rate borrowings＋Balance of investment corporation
bonds）÷（Total borrowings＋Balance of investment corporation bonds）The balance of long-term fixed interest rate borrowings
includes borrowings with floating interest rates effectively fixed by utilizing interest-rate swap agreements. Long-term fixed interest
debt ratio is rounded down to the nearest first decimal place.

Amount of Interest-Bearng Debt Maturing in Each 6 Months (Unit: ¥Billion)-5-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

The Investment Corporation strives to diversify repayment dates for its debt financing in an effort to reduce refinancing risk.
Long-Term Borrowings

20
18
16
14
12
10
8
6
4
2
0

16
11.5

2008
2H

Short-Term Borrowings

9

2.5
2.5
6.5

Investment Corporation Bonds

6.5

2009
1H

12.25

6.5

2009
2H

6

2010
1H

2010
2H

2011
1H

2011
2H

3.5

3

3

2012
1H

2012
2H

2013
1H

5

2013
2H

2014
1H

2014
2H

2015
1H

2015
2H

2016
1H

3
2016
2H

Note 5: As of October 31, 2008
Note 6: Shows the amounts of debt maturing in each Half.
Note 7: 1H is from April 1 to September 30, 2H is from October 1 to March 31 of the following year and are not identical with the fiscal
period of the Investment Corporation (e.g. 2008, 2H is from October 1, 2008 to March 31, 2009)

Since its public listing through to the end of the seventh fiscal period, the Investment Corporation has undertaken flexible debt funding on
both an unsecured and unguaranteed basis. This is the result of the high standing in which the Investment Corporation, its investment
policies, asset quality as well as the personnel and expertise of the Asset Management Company are held among financial institutions.
The Investment Corporation acquired a credit rating of A3 (Outlook: Stable) from Moody’s Investors Services, Inc. in February 2006,
and credit rating of A+ (Outlook: Stable) from Japan Credit Rating Agency, Ltd. in December 2006. Details of the credit ratings as of
October 31, 2008 are as follows.
Credit Rating Agency
Moody’s Investors Service
Japan Credit Rating Agency, Ltd.

Details of the Ratings
Rating：A3
Outlook：Stable
Senior Debts：A+
Outlook: Stable

The Investment Corporation filed a debt shelf registration statement in February 2007, and filed an equity shelf registration statement to
conduct equity financing in April 2007. Details are as follows.

Planned Issue Amount

Investment Corporation Bonds

Investment Unit Certificate¥100,000,000,000 (Note)¥100,000,000,000

Planned Issuance Period

February 15, 2007 to February 14, 2009
May 7, 2007 to May 6, 2009
Acquisition funds for specified assets, Acquisition funds for specified assets,
repayment of borrowings, repayment of
repayment of borrowings, repayment ofinvestment corporation bonds, refund of lease investment corporation bonds, refund of lease
Use of Funds
and guarantee deposits, funds to pay for and guarantee deposits, funds to pay forrepairs and maintenance, working capital, etc
repairs and maintenance, working capital, etc
Note: First Series Unsecured Investment Corporation Bonds of ¥9,000,000,000 and Second Series Unsecured Investment
Corporation Bonds of ¥3,000,000,000 has been issued in March 2007 based on the debt shelf registration.
The status of the commitment line agreements as of October 31, 2008 are as follows.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

LenderThe Bank of Tokyo-Mitsubishi UFJ, Ltd.
Citibank Japan, Ltd.
Borrowings Available¥2,500 million¥2,500 million
Borrowings Balance¥2,500 million¥2,500 million
Commitment Period
March 21, 2008 to March 19, 2009 (Note)
January 11, 2008 to January 8, 2009
Note: Concerning Series 31-L (¥2.0 billion), the Investment Corporation executed a memorandum of understanding on September
26, 2008 that sets March 31, 2011 as the expiration date of the commitment line agreement.
D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥8,456 million,
operating income of ¥4,144 million, ordinary income of ¥3,124 million and net income of ¥3,123 million for its seventh fiscal period. In
accordance with Article 67.15 of the Special Taxation Measures Law, the Investment Corporation distributes the total amount of its
unappropriated retained earnings for each period. Cash distribution for the seventh fiscal period was ¥15,618 per unit.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)(2) Outlook
A. Investment Environment
Looking ahead, with exports, production and corporate earnings decreasing, the Japanese economy is forecast to continue to be on aweak trend for the time being. In addition, there are signs of employment conditions deteriorating and although personal consumption
remains generally flat there are signs of weakening trend being underway. There are concerns of the spreading global financial crisis andfurther slowdown in the global economy, as well as drastic fluctuation in the stock and foreign exchange markets. Under such and othercircumstances, there is the risk of employment and other economic conditions growing more severe.
The real estate market conditions are also expected to increasingly worsen as a result of the trends as found by the Prefectural Land Price
Survey dated July 1, 2008 (slowdown in the increase in land prices in the three metropolitan areas of Tokyo, Osaka and Nagoya; andongoing drops in land prices in regional areas).
In the leasing market for office buildings, vacancy rates are on the rise throughout Japan. Vacancy rates in central Tokyo were hovering at
relatively low levels, but this has changed to an increasing trend due to the economic slowdown, financial and capital markets and otherfactors. Concerning advertised rent as well, the rate of increase is on a downward trend. On the other hand, while there is variability
depending on the region, a sense of excessive supply is seen in regional cities and the Investment Corporation believes people will
become more selective of properties based on location, environment, size, facilities and other features.
B. Future Management Policies
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 criteria based on
property type, area and size. From this standpoint and in light of the investment environment described above (the Japanese economy,
land price trends, leasing market for office buildings, etc.), the Investment Corporation creates an existing property management strategy,
property investment strategy and financial strategy in a dynamic and flexible manner as set forth below.
(a) Existing property management strategy (Internal Growth Strategies)
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 responses as well as optimal tenant satisfaction. Accordingly, the Investment
Corporation will aim to increase of the cash flow by offering office environment with high tenant satisfaction. Based on the
aforementioned, the Asset Management Company undertakes property management activities as follows:・Identify satisfaction through use of tenant surveys
・Maintain attractive properties based on KDX standards
・Leasing management according to the market environment
・Careful control of management and operating costs by taking advantage of portfolio size
Identify tenant satisfaction through use of tenant 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 through J.D. Power Asia Pacific, Inc., an internationally recognizedcompany that engages in customer satisfaction evaluation, to better understand the needs of its tenants and take steps to respond to theirpreferences. As a part of this survey the administration officers of each tenant and tenant employees were asked to respond to manyquestions concerning buildings and facilities as well as operating and management services. The Investment Corporation conducted thefirst CS survey, which covered 20 of its properties, during the second fiscal period, and the second CS survey, which covered 44 of its
properties, during the fifth fiscal period.
Through these means, the Investment Corporation is working efficiently to generate improvements in rent levels and asset values, increase
earnings and promote sustained internal growth.
Furthermore, backed by the favorable leasing market for office buildings to date, the Investment Corporation has thus far beenproactively conducting renovations to address customer satisfaction under the objective of maintaining and improving rent levels andasset values. The budget for renovations to address customer satisfaction and major construction to enhance value will be reduced
hereafter due in part to having completed the bulk of construction measures at many of our portfolio properties.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Maintain attractive properties based on KDX standards
The Investment Corporation aims to provide attractive mid-sized office buildings in order to enhance portfolio value and rental revenues.
We believe 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 the resources to provide
high-quality maintenance. Furthermore, when a building is owned by a large company, property management is often dictated by thatcompany’s priorities and does not necessarily correspond to tenant needs or satisfaction.
The Investment Corporation aims to differentiate itself by efficiently providing certain uniform standards, termed “KDX” standards, aswell as attractive office environments.
Examples of KDX standards include the followings:
・Installation of security cameras for elevators and entrance halls
・Installation of emergency devices for elevators
・Installation of modern restrooms that include western-style toilets with hot-water self-cleaning functions
In addition, the Investment Corporation enhances its brand awareness by renaming its office buildings so that “KDX” is included in the
new name.
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 that take into account economic andreal 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.
Meanwhile, in light of the economic trends and trends of the leasing market for office buildings, the Investment Corporation conducts
management by adopting the basic policy of maintaining current conditions without, in principle, negotiating to raise rent even withtenants whose contract is due for renewal.
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 of the Kenedix Group to
reduce building maintenance costs The Investment Corporation has managed to reduce building maintenance expenses for officebuildings and also electricity costs at some properties by reviewing the content of building maintenance. In addition, the Investment
Corporation has also managed to centralize the building maintenance company for office buildings in Tokyo.
The Investment Corporation will continue to carefully control management and operating costs by periodically reviewing its property
management standards to ensure that they remain relevant and appropriate for each property.
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 seventh fiscal period. 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 andquality service.
(b) New Property Investment Strategy (External Growth Strategy)
The Investment Corporation has thus far been acquiring investment properties by considering (1) the weighted average cost of capital,
which is based on the (2) level of return on distributions, which is calculated from the investment unit price and distributions per unit and(3) debt financing costs and interest-bearing debt ratio. Hereafter, in light of the recent uncertain market environment and other factors,
the Investment Corporation will no longer aim to increase asset and, in principle, will keep the acquisition of office buildings also within
the scope of replacement of assets for the time being.
Accordingly, concerning central urban retail properties and residential properties, the Investment Corporation will not only refrain fromconducting new investments, but will also place such properties on the top of the list of properties to sell while taking into consideration
the market environment, asset size and other factors. In addition, in light of the area and size of individual properties and depending on-9-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

the sales terms and conditions, the Investment Corporation will not exclude office buildings either from the list of properties that could be
sold.
The Investment Corporation seeks to continue improving the quality of its portfolio in terms of location, size and type of properties,
through various measures including replacement of assets, and will continue to aim to build a strong portfolio focusing on mid-sized
office buildings.
(c) Financial Strategy
The Investment Corporation will continue to pursue debt financing on an unsecured and unguaranteed basis and as well as makearrangements to ensure fixed interest rate debt in line with interest rate trends and other considerations.
In addition, the Investment Corporation will seek to diversify its debt repayment period to reduce refinancing risk. Furthermore, theInvestment Corporation will pursue stable financial management through such measures as continuing to maintain long-term debt ratios
above prudent levels.
The Investment Corporation will continue to maintain its conservative leverage policy by taking such measures as keeping the ratio ofinterest-bearing debt to total assets at a prudent level. Moreover, the Investment Corporation will undertake stable fund procurement
based on existing favorable relations with financial institutions, as well as aim for more conservative financial management than everbefore by increasing its cash position and other means.
(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/ ).

-10-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(3) Important Subsequent Events
There were no important events following account settlement of the seventh fiscal period.
(Reference)
Debt Financing
The Investment Corporation has executed the following debt financing on November 4, 2008.
Series 33-L (Note 1)
Lender：Citibank Japan, Ltd.
Amount：¥1,000 million
Interest Rate
：1.23833% floating rate of interest (Note 2)
Repayment Date ：November 2, 2009
Collateral：Unsecured, unguaranteed
Notes:
1. The Investment Corporation has applied the funds toward the repayment o Series 25-L (total of ¥1,000 million)
with a repayment date of November 4, 2008.
2. The interest rate covers the period commencing November 4, 2008 through February 4, 2009. Thereafter, theinterest rate shall be calculated based on the three-month yen TIBOR +0.35%. The interest rate after February 4,
2009, shall be disclosed as and when determined.
The Investment Corporation has executed the following debt financing on December 8, 2008.
Series 34 (Note 1)
Lender：(1)Aozora Bank, Ltd. (2)Resona Bank, Ltd.
Amount：(1)¥1,500 million (2)¥500 million
Interest Rate
：1.59346% floating rate of interest (Note 2)
Repayment Date ：December 8, 2009
Collateral：Unsecured, unguaranteed
Notes:
1. The Investment Corporation has applied the funds toward the repayment o Series 4 (total of ¥2,000 million) witha repayment date of December 8, 2008.
2. The interest rate covers the period commencing December 8, 2008 through February 27, 2009. Thereafter, theinterest rate shall be calculated based on the three-month yen TIBOR +0.70%. The interest rate after February 27,
2009, shall be disclosed as and when determined.

-11-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Outlook
Forecasts for the eighth fiscal period (November 1, 2008 to April 30, 2009) are presented as follows. Please refer to the “Preconditions andAssumptions for the Fiscal Period Ending April 30, 2009” below for factors that underpin forecasts.
Operating Revenues
Ordinary Income
Net Income
Distribution per Unit
Distribution in Excess of Earnings per Unit

¥8,298 million¥2,881 million¥2,880 million¥14,400¥0

Note: Forecast figures are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income anddistribution per unit may differ significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does notguarantee payment of the forecast distribution per unit.
“Preconditions and Assumptions for the Fiscal Period Ending April 30, 2009”

Calculation Period
Property Portfolio

Operating Revenues
Operating Expenses

Non-Operating Expenses

Debt Financing and Investment
Corporation Bonds

Investment Units Issued andOutstanding
Distributions per Unit

Preconditions and Assumptions● The eighth fiscal period: November 1, 2008 to April 30, 2009 (181 days)●Forecasts are based on the 69 properties held as of December 11, 2008. This will remain unchanged (nonew properties will be acquired and no existing properties will be sold) up to and including the end of
the eighth fiscal period.
● The property portfolio may change due to a variety of factors.
●Rental revenues are estimated based on historical performance and a variety of factors including leasing
market conditions.
● Property-related expenses other than depreciation are estimated based on historic expenses, adjusted toreflect the expenses variables.
● 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.
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.
● For the eighth fiscal period, an amount of ¥1,428 million has been estimated for depreciation expense.
● The Investment Corporation is amortizing unit issuance costs over a period of three years using thestraight-line method.
● Interest payable (including finance costs) of ¥1,007 million is forecasted for the eighth fiscal period.
●The balance of borrowings as of December 11, 2008 is ¥86.75 billion. Forecasts are based on theassumption that the balance of borrowings shall remain unchanged for the rest of the eighth fiscal
period.
● The balance of investment corporation bonds as of December 11, 2008 is ¥12.0 billion. Forecasts arealso based on the assumption that the balance of investment corporation bonds shall remain unchangedin the eighth fiscal period.
●The number of investment units issued and outstanding as of December 11, 2008 is 200,000 units.
Forecasts are based on the assumption that the number of investment units issued and outstanding shallremain unchanged for the eighth fiscal period.
 Distributions per unit are calculated in accordance with the distribution policy outlined in theInvestment Corporation’s Articles of Incorporation.
 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-12-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Distributions in Excess of
Earnings per Unit
Other

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.

-13-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

3. Financial Statements(1) Financial Condition①Balance Sheets(Thousands of Yen)
Sixth Fiscal Period

Seventh Fiscal Period（As of April 30, 2008）（As of October 31, 2008）

Cash and deposits

6,379,367

6,799,392

420,025

Cash and deposits in trust

6,813,393

6,230,408△582,984

Accounts receivable-trade

159,003

187,278

28,274

Prepaid expenses

34,20954,922

20,713-

180,365

180,365

11,053

12,773

1,719

13,397,027

13,465,140

68,113

Increase / Decrease

ASSETS
Current assets

Consumption tax receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment, *1
Buildings
Accumulated depreciation

9,782,177

11,004,879

1,222,702△301,382△494,742△193,360

9,480,794

10,510,137

1,029,342

Buildings, net
Structures

7,886

9,395

1,508

Accumulated depreciation△839△1,459△619

Structures, net

7,046

7,936

889

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

34,02335,4281,404△13,269△18,174△4,90420,754

17,254△3,499Tools, furniture and fixtures

13,67039,052

25,382

Accumulated depreciation△1,454△3,379△1,924Tools, furniture and fixtures, net

12,21535,67323,457

Land

25,928,590

29,093,099

3,164,509

Buildings in trust
Accumulated depreciation

59,721,096

63,333,891

3,612,794△4,333,013△5,345,618△1,012,604

Buildings in trust, net

55,388,083

57,988,273

2,600,190

152,506

198,074

45,568

Accumulated depreciation△42,510△48,445△5,934Structures in trust, net

109,995

149,629

39,633

Machinery and equipment in trust

753,629

870,276

116,646

Accumulated depreciation△185,011△222,411△37,400

568,618

647,864

79,245Tools, furniture and fixtures in trust

301,196

342,957

41,761

Accumulated depreciation△75,948△96,131△20,182

Tools, furniture and fixtures in trust, net

225,247

246,826

21,578Land in trust

124,742,605

126,813,694

2,071,089

Total property, plant and equipment

216,483,952

225,510,388

9,026,436

Leasehold right

285,350

285,350-

Total intangible assets

285,350

285,350-

Structures in trust

Machinery and equipment in trust, net

Intangible assets

Investments and other assets-14-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Lease and guarantee deposits

23,326

12,226△11,100

Long-term prepaid expenses

121,520

213,679

92,159

1,217

6,399

5,181

Deferred tax assets
Total investments and other assets

146,065

232,306

86,240216,915,367

226,028,045

9,112,677

Deferred organization expenses

20,35815,269△5,089Investment corporation bond issuance costs

57,18351,306△5,877

Investment unit issuance expenses

130,305

88,837△41,468

Total noncurrent assets
Deferred assets

Total deferred assets
Total assets

207,848

155,412△52,435

230,520,243

239,648,597

9,128,354(Thousands of Yen)
Sixth Fiscal Period

Seventh Fiscal Period（As of April 30, 2008）（As of October 31, 2008）

Accounts payables

441,418

407,070△34,347

Short-term loans payable *3

5,750,000

5,000,000△750,000

Current portion of long term loans payable

26,000,000

19,000,000△7,000,000

Accounts payable-other351,588

321,639△29,948

Accrued expenses

89,201

141,200

51,999

Income taxes payable

769

605

△164

Accrued consumption taxes

215,992

36,004△179,988

Advances received

1,172,674

1,238,194

65,520

Deposits received

4,503

6,411

1,907

34,026,147

26,151,125△7,875,021

Investment corporation bond

12,000,000

12,000,000-

Long-term loans payable

46,000,000

62,750,000

16,750,000

Tenant leasehold and security deposits

1,271,027

1,515,158

244,130

Tenant leasehold and security deposits in trust

8,905,814

9,128,464

222,649

3,091

16,271

13,179Total noncurrent liabilities

68,179,934

85,409,894

17,229,960

Total liabilities

102,206,081

111,561,020

9,354,939

124,973,750

124,973,750-

3,342,285

3,123,698△218,586

3,342,285

3,123,698△218,586

128,316,035

128,097,449△218,586

Deferred gains or losses on hedges△1,873△9,872△7,998

Total valuation and translation adjustments△1,873△9,872△7,998

Total net assets

128,314,161

128,087,577△226,584

Total liabilities and net assets

230,520,243

239,648,597

9,128,354

Increase / Decrease

LIABILITIESCurrent liabilities

Total current liabilities
Noncurrent liabilities

Derivative liabilities

Net assets *2
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments-15-

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

② Statements of Income
Sixth Fiscal Period

Seventh Fiscal Period

November 1, 2007 to

May 1, 2008 to

April 30, 2008

October 31, 2008

Increase / Decrease

Operating revenue
Rent revenue-real estate *1

6,770,710

7,111,092

340,382

Other lease business revenue *1

859,754

1,045,424

185,669

Gain on sales of real estate properties *2

952,230

299,716△652,513

Total operating revenue

8,582,695

8,456,233△126,461

Expenses related to rent business *1

3,447,634

3,678,719

231,085

Loss on sales of real estate properties *3

439,333-△439,333

Asset management fee

424,141

442,469

18,327

Directors’ compensation

5,400

5,400

-

Asset custody fee

22,46323,483

1,020

Administrative service fees

52,68450,791△1,892

Audit fee

9,300

9,300

-

Other operating expenses

116,083

101,330△14,753

Total operating expenses

4,517,040

4,311,495△205,545

4,065,654

4,144,738

79,083

Interest income

8,261

11,158

2,897

Other

451

3,144

2,693

Total non-operating income

8,712

14,3035,591Interest expenses

504,589

689,468

184,879

Interest expenses on investment corporation bonds

113,537

114,321784

Borrowing related expenses

28,471

145,680

117,208

Amortization of investment corporation bond issuance costs

5,813

5,877

63

Amortization of investment unit issuance expenses

41,46841,468-

Amortization of deferred organization expenses

5,089

5,089

-

Other

31,64032,7281,088

Operating expenses

Operating income
Non-operating income

Non-operating expenses

Total non-operating expenses

730,6101,034,635

304,025

Ordinary income

3,343,757

3,124,406△219,350

Income before income taxes

3,343,757

3,124,406△219,350

Income taxes-current

1,773

605

△1,168

Income taxes-deferred

△217

187

405

Total income taxes

1,555

792

△763

3,342,201

3,123,613△218,587

84

85

1

3,342,285

3,123,698△218,586

Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)-16-

KENEDIX REALTY INVESTMENT CORPORATION (8972)③ Statements of Unitholder’s Equity(Thousands of Yen)
Sixth Fiscal Period

Seventh Fiscal Period

November 1, 2007 to

May 1, 2008 to

April 30, 2008

October 31, 2008

Unitholder’s Equity
Unitholders’ capital *Balance at the end of previous period

124,973,750

124,973,750

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

124,973,750

124,973,750

2,792,084

3,342,285

Surplus
Unappropriated retained earnings (undisposed loss)
Balance at the end of previous period
Changes of items during the period
Dividends from surplus△2,792,000△3,342,200

Net income

3,342,201

3,123,613

Total changes of items during the period

550,201△218,586

3,342,285

3,123,698

127,765,834

128,316,035△2,792,000△3,342,200

3,342,201

3,123,6134

550,201△218,586

128,316,035

128,097,449△3,899△1,873

Net change of items other than owners` equity

2,025△7,998

Total changes of items during the period

2,025△7,998△1,873△9,872△3,899△1,873

Net change of items other than owners` equity

2,025△7,998

Total changes of items during the period

2,025△7,998△1,873△9,872

127,761,934

128,314,161△2,792,000△3,342,200

3,342,201

3,123,613

Balance at the end of current period
Total unitholders’ equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Valuation and Translation Adjustments
Deferred gains or losses on hedges
Balance at the end of previous period
Changes of items during the period

Balance at the end of currents 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
Dividends from surplus
Net income
Net change of items other than owners` equity
Total changes of items during the period
Balance at the end of current period

-17-

2,025

△7,998552,226△226,584

128,314,1610

128,087,577

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

Seventh Fiscal Period(November 1, 2007 to April 30, 2008)(May 1, 2008 to October 31, 2008)

I. Retained earnings at the end of period

3,342,285,404

3,123,698,986

II. Total Distribution

3,342,200,000

3,123,600,000(Distribution per Unit)(16,711)（15,618）

III. Retained Earnings bring to next period

85,404

98,986The Investment Corporation determines

The Investment Corporation determines

the amount of distribution in accordance withthe amount of distribution in accordance with

Article 35-1 of its Articles of Incorporation,

Article 35-1 of its Articles of Incorporation,

which must exceed 90% of its distributable

which must exceed 90% of its distributable

income as stipulated in Article 67-15 of theincome as stipulated in Article 67-15 of theSpecial Taxation Measures Law. The

Special Taxation Measures Law. The

Investment

Investment

Method of calculating the distribution
amountCorporationhas

therefore

Corporationhas

therefore

decided to distribute the maximum amountdecided to distribute the maximum amountof retained earnings at the period-end ofof retained earnings at the period-end of

period, namely totaling ¥3,342,200,000 toperiod, namely totaling ¥3,123,600,000 to

200,000 units issued and outstanding.

200,000 units issued and outstanding.

Procedures for the distribution of amounts

Procedures for the distribution of amounts

exceeding distributable income are outlined

exceeding distributable income are outlinedinin

Article

35-2

of

the

Investment

Article

35-2

of

the

Investment

Corporation’s Articles of Incorporation. In its

Corporation’s Articles of Incorporation. In its

fiscal period under review, the Investment

fiscal period under review, the Investment

Corporation has decided not to distribute

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

cash in excess of distributable income.

-18-

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

⑤ Statements of Cash Flows
Sixth Fiscal Period

Seventh Fiscal Period

November 1, 2007 to

May 1, 2008 to

April 30, 2008

October 31, 2008

Increase / Decrease

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

3,343,757

3,124,406

Depreciation and amortization△219,350

1,430,125

1,445,266

15,141

Amortization of long-term prepaid expenses

27,40038,292

10,892

Interest income△8,261△11,158△2,897

Interest expenses

618,126

803,790

185,664

Amortization of deferred organization expenses

5,089

5,089

-

Amortization of investment units issuance expenses

41,46841,468-

Amortization of investment corporation bond issuance expenses

5,813

5,877

63

Decrease (increase) in accounts receivable-trade△17,093△28,274△11,181

Decrease (increase) in consumption taxes refund receivable

47,551△180,365△227,916

Decrease (increase) in prepaid expenses

8,642△17,755△26,398

Increase (decrease) in accounts payable

83,089△34,347△117,437

Increase (decrease) in accounts payable- other

180,830△32,132△212,962

Increase (decrease) in accrued consumption taxes

215,992△179,988△395,980

Increase (decrease) in advances received

31,342

65,52034,177

Increase (decrease) in deposits received

2,518

1,907

△610

Loss on retirement of noncurrent assets

45,288

7,852△37,435

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

30,755,697

5,100,280△25,655,417

Decrease (increase) in long-term prepaid expenses△78,620△133,409△54,788

1,341△1,907△3,24836,740,101

10,020,414△26,719,687

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

8,261

11,1582,897△603,866△751,791△147,925

△658

△769

△110

36,143,837

9,279,012△26,864,824

Net cash provided by (used in) investment activities
Purchase of property, plant and equipment△22,817,847△4,418,444

18,399,403

Purchase of property, plant and equipment in trust△25,332,879△11,161,392

14,171,487

Proceeds from collection of lease and guarantee deposits

184

11,10010,915

Payments for collection of lease and guarantee deposits△11,100-

11,100

Payments of tenant leasehold and security deposits△19,216△41,251△22,035

642,847

285,381△357,465△685,950△639,474

46,476

Proceeds of tenant leasehold and security deposits
Payments of tenant leasehold and security deposits in trust
Proceeds of tenant leasehold and security deposits in trust
Payments of restricted bank deposits in trust
Proceeds from restricted bank deposits in trust
Net cash provided by (used in) investment activities

1,489,452

862,124△627,328△1,130,321△574,468

555,853

71,434

1,299,218

1,227,784△47,793,395△14,377,205

33,416,189

Net cash provided by (used in) financing activities
Increase in short-term loans payable

1,500,000

5,500,000

4,000,000

Decrease in short-term loans payable△2,250,000△6,250,000△4,000,000

Proceeds from long-term loans payable

15,000,000

22,750,000

7,750,000

Repayment of long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities

-19-

-

△13,000,000△13,000,000△2,789,908△3,340,016△550,107

11,460,091

5,659,983△5,800,107

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Net increase (decrease) in cash and cash equivalents△189,466

561,790751,257

Cash and cash equivalents at beginning of period

11,331,324

11,141,858△189,466

11,141,858

11,703,649

561,790

Cash and cash equivalents at end of period

※

-20-

KENEDIX REALTY INVESTMENT CORPORATION (8972)⑥Notes【Important Accounting Standards】

1. Depreciation of fixed assets

2. Accounting policies for deferredassetsSixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)(1) Property and equipment (includes trust assets)(1) Property and equipment (includes trust assets)

The straight-line method is applied.

The straight-line method is applied.

Useful lives of the assets ranging are as follows:

Useful lives of the assets ranging are as follows:

Buildings: 2 to 46 years

Buildings: 2 to 49 years

Structures: 2 to 25 years

Structures: 2 to 45 years

Machinery and equipment: 3 to 17 years

Machinery and equipment: 3 to 17 years

Tools, furniture and fixtures: 3 to 20 years

Tools, furniture and fixtures: 3 to 20 years(2) Long-term prepaid expenses
The straight-line method is applied.

(2) Long-term prepaid expenses
Same applies as left.

(1) Deferred organization expenses(1) Deferred organization expenses

Organization costs are amortized over a period of 5 years.

Same applies as left.

(2) New unit issuance costs(2) New unit issuance costs

Unit issuance costs are amortized over a period of threeSame applies as left.

years.
(3) Bond issuance costs
Bond issuance costs are amortized by applying the(3) Bond issuance costs
Same applies as left.

straight-line method for the entire redemption period.
3. Accounting standards for revenues
and expenses

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 which the payment was madeduring the said period.

In connection with the acquisition of real estate including

In connection with the acquisition of real estate including

trust beneficiary interests in real estate during the fiscal

trust beneficiary interests in real estate during the fiscal

period under review, the Investment Corporation

period under review, the Investment Corporation

included its pro rata property portion for the year in each

included its pro rata property portion for the year in each

property acquisition price and not as rental expense. The

property acquisition price and not as rental expense. The

amount of property taxes included in acquisition prices

amount of property taxes included in acquisition prices

for the fiscal period under review amounted to ¥10,840

for the fiscal period under review amounted to ¥173,954

thousand.

thousand.
4. 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

Same applies as left.

swap transactions.

Risks hedged

Risks hedged

Same applies as left.

Interest rates on debt.
(3) Hedging policy(3) Hedging policy-21-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)
The Investment Corporation enters into derivative

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)
Same applies as left.

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

During the period from the commencement of hedging

Same applies as left.

to the point at which effectiveness is assessed, theInvestment Corporation compares the cumulative total ofmarket changes in the targeted objects of hedging or cash
flow changes with the cumulative total of market
changes in the hedging instruments or cash flow changes.
The Investment Corporation then makes a decision basedon the changes and other factors of the two.
However, the interest-rate swap agreements that meet thecriteria for special treatment, the evaluation ofeffectiveness are omitted.
5. 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

cash flowsthat 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(1) Accounting method for trust beneficiary interests in(1) Accounting method for trust beneficiary interests inpolicies utilized in the preparation

real estate and other assets

real estate and other assetsof financial statements

The assets and liabilities as well as revenues andSame applies as left.

6. Other significant accounting

expenses of financial assets held in the form of trust
beneficiary interests in real estate and other assets arerecorded 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
2. Buildings in trust, structures in trust, machinery andequipment in trust, tools, furniture and fixtures in trust,and land in trust
3. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax(2) Accounting method for consumption tax
Consumption

taxes

are

separately

recorded.

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

-22-

Same applies as left.

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

Seventh Fiscal Period(As of October 31, 2008)

Sixth Fiscal Period(As of April 30, 2008)*1. Minimum unitholders’ equity pursuant to Article*1. Minimum unitholders’ equity pursuant to Article¥50,000

67-4 of the Law Concerning Investment Trusts

67-4 of the Law Concerning Investment Trusts

and Investment Corporations Law¥50,000

and Investment Corporations Law*2. Balance of undrawn credit facility*2. Balance of undrawn credit facility

The Investment Corporation established credit facilities with financial

The Investment Corporation established credit facilities with financial

institutions.

institutions.

Total credit facility

5,000,000

Total credit facility

5,000,000

Drawn credit facility

500,000

Drawn credit facility

5,000,000

Balance of Undrawn credit facility

4,500,000

Balance of Undrawn credit facility－(Thousands of Yen)

【Notes to the Statements of Income】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)*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

5,626,514

Leasing income

5,847,509

Common area charges

1,144,195

Common area charges

1,263,582

Total

6,770,710

Total

7,111,092

OthersOthersParking space rental revenues

240,631

Parking space rental revenues

Utility charge reimbursement458,128

Utility charge reimbursement

668,718

Miscellaneous

160,994

Miscellaneous

126,699

Subtotal

859,754

Subtotal

1,045,424

Total rental and operating revenues

7,630,464

Total rental and operating revenues

8,156,516

B. Rental and other operating expenses

B. Rental and other operating expenses

Rental expenses

Rental expenses

250,005

Property management fees and facility management fees

750,333

Property management fees and facility management fees

792,076

Utilities

450,236

Utilities

611,721Taxes

395,277

Taxes

406,438

Repairs and maintenance costs

149,230

Repairs and maintenance costs

188,400

Insurance

16,806

Insurance

17,035

Trust fees

57,312Trust fees

46,904

Others149,083

Others163,023

Depreciation

1,430,125

Depreciation

1,445,266

Loss on retirement of fixed assets

49,228Loss on retirement of fixed assets

Total property-related expenses

3,447,634

Total property-related expenses

3,678,719

C. Rental business profit (A – B)

4,182,830

C. Rental business profit (A – B)

4,477,796*2. Profit on sale of real estate (Sale of 13 residential properties)

7,852*2. Profit on sale of real estate

Revenue from sale of investment properties

18,788,000

Costs of investment properties

17,705,425

Hakata Ekimae Dai-2 Building
Revenue from sale of the investment property

1,470,000

Other sales’ expenses

130,344

Costs of the investment property

1,434,889

Profit on sale of real estate952,230

Other sales’ expenses

28,101

Profit on sale of real estate

7,008

-23-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)*3. Loss on sale of real estate (Sale of 10 residential properties)

ZARA Tenjin Nishi-dori

Revenue from sale of investment properties

12,702,000

Revenue from sale of the investment property

4,108,810

Costs of investment properties

13,050,272

Costs of the investment property

3,665,390

Other sales’ expenses

91,061Other sales’ expenses

150,711

Loss on sale of real estate

439,333

Profit on sale of real estate

292,708【Notes to the Statements of Changes in Unitholders’ Equity】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

・Total number of authorized investment units

2,000,000 units

2,000,000 units

・Total number of investment units issued and outstanding

200,000 units

200,000 units

Total number of authorized investment units and total number ofinvestment units issued and outstanding【Notes to the Statements of Cash Flow】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)*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 April 30, 2008 )(Thousands of Yen)

(As of October 31, 2008 )(Thousands of Yen)

Cash and bank deposits

6,379,367

Cash and bank deposits

6,799,392

Cash and deposits in trust

6,813,393

Cash and deposits in trust

6,230,408

Restricted bank deposits held in trust (Note)△2,050,902

Restricted bank deposits held in trust (Note)△1,326,152

Cash and cash equivalents

11,141,858

Cash and cash equivalents

11,703,649

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

leasehold and security deposits held in trust.

【Notes to the Lease Transactions】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)
Operating lease transactions

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)(Thousands of Yen)

Operating lease transactions(Lessor)(Lessor)

Unearned lease payments

Unearned lease payments(Thousands of Yen)

Due within one year

1,689,845

Due within one year

1,493,056

Due after one year

9,711,097

Due after one year

8,487,580

Total

11,400,942

Total

9,980,636【Notes to the Marketable Securities】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

The Investment Corporation has not undertaken transactions in marketable

Same applies as left.

securities. Accordingly, there is no information to report.

-24-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Derivative Transactions】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)(1) Details of the transaction(1) Details of the transaction

The Investment Corporation entering into interest-rate swap transactions uses

Same applies as left.

derivatives as hedging instruments(2) Transaction policies(2) Transaction policies

Derivatives are used by the Investment Corporation to manage its exposure toSame applies as left.

the risk of future interest rate fluctuation. Derivative transactions are not used
for speculative purposes.
(3) Purpose of the transaction(3) Purpose of the transaction

In interest-related transactions, derivative transaction is used to maintain

Same applies as left.

earnings stability by managing exposure to the risk of interest rate hikes in theinterest rate market on borrowings. Hedge accounting is applied to the use ofderivative transactions.
① Hedge accounting method① Hedge accounting method

The deferred hedge method is applied. However, the special treatment isSame applies as left.

applied for the interest-rate swap agreements that meet the criteria.
② Hedging instruments and risks hedged② Hedging instruments and risks hedged

Same applies as left.

・Hedge instruments
The Investment Corporation enters into interest-rate swap transactions.
・Risks hedged
Interest rates on debt
③ Hedging policy③ Hedging policy

The Investment Corporation enters into derivative transactions based on its risk

Same applies as left.

management policies with the objective of hedging risks in accordance with its
Articles of Incorporation.
④ Method of evaluating the effectiveness of hedging④ Method of evaluating the effectiveness of hedging

During the period from the commencement of hedging to the point at which

Same applies as left.

effectiveness is assessed, the Investment Corporation compares the cumulative
total of market changes in the targeted objects of hedging or cash flow changes
with the cumulative total of market changes in the hedging instruments or cash
flow changes. The Investment Corporation then makes a decision based on thechanges and other factors of the two.
However, the interest-rate swap agreements that meet the criteria for special
treatment, the evaluation of effectiveness are omitted.
(4) Risks related to derivative transaction(4) Risks related to derivative transaction

Interest-rate swap transactions are subject to risks stemming from fluctuations

Same applies as left.

in the interest rate market.
(5) Risks management system for derivative transaction(5) Risks management system for derivative transaction

Risks management is based on the management procedures of the AssetSame applies as left.

Management Company.

-25-

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Notes to the Retirement Payment】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

The Investment Corporation does not maintain a retirement payment system.

Same applies as left.

Accordingly, there is no information to report.
【Tax-Effect Accounting】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)
1.Principal deferred tax assets and liabilities

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)(Thousands of Yen)

(Deferred tax assets)

1.Principal deferred tax assets and liabilities(Deferred tax assets)

Enterprise tax payable not included in expenses

64

Bad debts loss

Bad debts loss

500

Unrealized loss from deferred hedge transactions

Unrealized loss from deferred hedge transactions

1,217

Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets(Thousands of Yen)
50

Subtotal deferred tax assets

6,399
6,449

1,782
△326
1,456

2. Significant difference between statutory income tax rate and the effective tax

2. Significant difference between statutory income tax rate and the effective

rate

(%)

tax rate(%)

Normal effective statutory tax rate

39.39

Normal effective statutory tax rate

39.39

(Adjustments)(Adjustments)

Deductible cash distributions△39.37

Deductible cash distributions△39.38Others0.03

Others0.02

Actual effective tax rate

0.05

Actual effective tax rate

0.03

【Equity-Method Income and Retained Earnings】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

The Investment Corporation has no affiliated companies accounted for under theequity-method. Accordingly, there is no information to report.

-26-

Same applies as left.

KENEDIX REALTY INVESTMENT CORPORATION (8972)【Related-Party Transactions】
Sixth Fiscal Period (November 1, 2007 to April 30, 2008)
1．Parent Company, corporate shareholders and other:

None

2．Directors, individual shareholders and other
Ratio of Possession of
Attributes

NameBusiness Activities / Position

Voting Rights

Details of Business(%)
Executive Director for the
Board of Directors

TaisukeInvestment Corporation and CEO

Possession of Right

and Close Relatives

Miyajima

and President of Kenedix REIT

Direct 0.0％

Management, Inc.
As above

As above

As above

Accounts

to Kenedix REIT Management,(Note 2)

PayableInc. (Note 1)(Note 4)-otherfee to Kenedix REIT
Payment of property management

As above

As above

As aboveTerm

732,146

Management, Inc. (Note 3)
As above(¥thousands)

Payment of asset management fee

Payment of business consignment
As above

Deal Amount Accounting

1,500(Note 4)
129,756

fee to Kenedix REIT

Balance of
Period End(¥thousands)
128,549(Note 4)－－

Accounts

65,116

PayableManagement, Inc. (Note 3)
Notes:
1. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of the Investment
Corporation.
2. Asset management fee include ¥157,450 thousand sales fee related to the sale of property and ¥150,555 thousand management fee related to the acquisition of property thatcount in book value for individual real estate.
3. Taisuke Miyajima performed 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 a deal amount, and are included in the balance of the end of period.
5. Taisuke Miyajima performed 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 ¥39,675 thousand related to the acquisition ofproperty that count in book value for individual real estate.

3．Subsidiary companies and other:

None

4．Fellow subsidiary companies and other: None
Seventh Fiscal Period (May 1, 2008 to October 31, 2008)
1．Parent Company, corporate shareholders and other:

None

2．Directors, individual shareholders and other
Ratio of Possession of
Attributes

NameBusiness Activities / Position

Voting Rights

Details of Business(%)
Executive Director for the
Board of Directors

TaisukeInvestment Corporation and CEO

Possession of Right

and Close Relatives

Miyajima

and President of Kenedix REIT

Direct 0.0％

Management, Inc.
As above

As above

As above

516,312

Accounts(Note 2)

PayableInc. (Note 1)(Note 4)-otherfee to Kenedix REIT
Payment of property management

As above

As above

As aboveTerm

to Kenedix REIT Management,

Management, Inc. (Note 3)
As above(¥thousands)

Payment of asset management fee

Payment of business consignment
As above

Deal Amount Accounting

fee to Kenedix REIT

1,500
(Note4)
338,918

Balance of
Period End(¥thousands)
101,523(Note 4)－

Accounts－

89,284

PayableManagement, Inc. (Note 3)
Notes:
1.

Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of the Investment
Corporation.

-27-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
2.

Asset management fee include ¥27,894 thousand sales fee related to the sale of property and ¥45,949 thousand management fee related to the acquisition of property that countin book value for individual real estate.

3.

Taisuke Miyajima performed 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 a deal amount, and are included in the balance of the end of period.

5.

Taisuke Miyajima performed 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 ¥44,425 thousand related to the acquisition ofproperty that count in book value for individual real estate.

3．Subsidiary companies and other:

None

4．Fellow subsidiary companies and other: None

【Notes to the Information per Unit】

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

Unitholders’ Equity per Unit

¥641,570

Unitholders’ Equity per Unit

¥640,437

Net Income per Unit

¥16,711Net Income per Unit

¥ 15,618

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.
Sixth Fiscal Period(November 1, 2007 to April 30, 2008)
Net Income (¥ thousand)Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

3,342,201

3,123,613－－

Net income for ordinary units (¥ thousand)

3,342,201

3,123,613

Average number of units during the period (unit)

200,000

200,000

Amount vested in ordinary investors (¥ thousand）【Important Subsequent Events】

Seventh Fiscal Period(May 1, 2008 to October 31, 2008)

Sixth Fiscal Period(November 1, 2007 to April 30, 2008)
Acquisition of Property

None

On May 15, 2008, the Board of Directors of the Asset Management Company
resolved to acquire the following property on June 30, 2008.
Property Name: KDX Harumi Building
Type of Acquisition: Trust beneficiary interest in real estate
Location (Address): 3-12-1 Harumi, Chuo-ku, Tokyo
Acquisition Price:¥10,250,000,000 (excluding acquisition costs, property tax,
city-planning tax and consumption tax, etc.)
Date of Contract: May 15, 2008
Seller: Y.K. KW Property 11
Usage: Offices, Retail shops
Site Area: 12,694.32㎡
Completion Date: February 22, 2008

-28-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（2）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
the following 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

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

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)400
75,0003,970
73,6603,970
40,9002,100Unitholders’ Capital(Millions of Yen)
Increase
Balance(Decrease)400
75,40079,370153,030
157,000
197,900
200,000

200
41,8682,216
42,171
2,272
34,4741,770

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

Remarks(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

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 acquisitionof 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 forthe acquisition 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 acquisitionof 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 forthe acquisition 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 acquisitionof 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 forthe acquisition of investment properties and repayment of borrowings. The issue price was ¥842,886 per unit.

4. Transfer of the Directors
During the seventh fiscal period, there was no transfer for the Directors.

-29-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Reference Information（1）Component of Assets
Sixth Fiscal Period(As of April 30, 2008)

Type of

Type

Specified Asset

Real Estate

Office Buildings

Area

Total Amount Held

Ratio

Total Amount Held

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

Tokyo Metropolitan Area

26,628

11.6

30,845

12.9

Other Regional Areas

9,105

4.0

9,103

3.8

35,734

15.5

39,949

16.7

Tokyo Metropolitan Area

128,22155.6

138,290

57.7

Other Regional Areas

23,537

10.2

22,133

9.2

151,75865.8

160,423

66.9

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

Seventh Fiscal Period(As of October 31, 2008)

Tokyo Metropolitan Area

10,9394.7

10,844

4.5

Other Regional Areas

1,921

0.8

1,898

0.8

12,8605.6

12,742

5.3

Total for Residential Properties
Central Urban RetailTokyo Metropolitan Area

12,746

5.5

12,6795.3

Properties

Other Regional Areas

3,668

1.6

-

-

16,415

7.1

12,679

5.3

Total of Trust Beneficiary Interests in Real Estate

181,034

78.5

185,846

77.5

Bank Deposits and Other Assets

13,7506.0

13,852

5.8

Total Assets

230,520100.0

239,648

100.0

Total for Central Urban Retail Properties

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

Sixth Fiscal Period(As of April 30, 2008)
Price (Millions of Yen)
Ratio (%)
Total of Liabilities
Total Unitholders’ Equity
Total of Assets

Seventh Fiscal Period(As of October 31, 2008)
Price (Millions of Yen)
Ratio (%)

102,206

44.3

111,561

46.6

128,31455.7

128,08753.4

230,520100.0

239,648

100.0

-30-

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 Seventh Fiscal Period

Acquisition
Type

Area

No.

Property Name

Price
（Note 1）

Amount on

Direct Capilization

the Balance

MethodSheet(Note 3)(Note 2)

Discounted Cash Flow Method

Overall
Value

Capitalization

Value

Discount
Rate (%)

Rate (%)

Buildings

Tokyo

(%)
（Note5）

Capitalization
Rate (%)

10,250

10,22810,70010,800

4.6

10,500

4.4

4.8

A

4.6

A-40

Toranomon Toyo Building

9,850

9,912

11,100

11,200

4.5

10,900

4.2

4.7

A

4.4

A-46

Hiei Kudan-Kita Building

7,600

7,650

8,150

8,350

4.6

8,060

4.4

4.8

B

3.4

A-37

KDX Ochanomizu Building

6,400

6,522

7,320

7,410

4.6

7,230

4.4

4.8

A

2.8

A-32

KDX Shiba-Daimon Building

6,090

6,350

6,770

6,910

5.2

6,710

5.0

5.3

C

2.7

A-13

KDX Kojimachi Building

5,950

5,844

6,400

6,480

4.8

6,360

4.6

4.9

C

2.6

A-1

KDX Nihonbashi 313 Building

5,940

6,281

7,680

7,900

4.8

7,590

4.6

5.0

B

2.6

A-16

Toshin-24 Building

5,300

5,255

5,440

5,490

5.4

5,390

5.2

5.6

A

2.3

A-2

KDX Hirakawacho Building

5,180

5,235

5,780

5,950

4.6

5,700

4.4

4.8

B

2.3

A-47

KDX Shin-Yokohama 381 Building

4,700

4,704

4,100

4,150

5.4

4,040

5.2

5.6

A

2.1

A-17

Ebisu East 438 Building

4,640

4,586

5,380

5,420

4.9

5,340

4.6

5.1

A

2.0

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,497

6,380

6,480

4.8

6,280

4.6

5.0

A

2.0

A-39

KDX Toranomon Building

4,400

4,877

4,640

4,710

4.4

4,570

4.2

4.6

A

1.9

A-30

KDX Nishi-Gotanda Building

4,200

4,253

4,920

4,960

5.2

4,900

5.0

5.3

C

1.8

A-48

KDX Kawasaki-Ekimae Hon-cho Building

3,760

3,780

3,480

3,480

5.8

3,470

5.4

6.0

A

1.6

A-4

KDX Hatchobori Building

3,680

3,527

3,980

4,080

4.8

3,930

4.6

5.0

B

1.6

A-18

KDX Omori Building

3,500

3,499

4,090

4,120

5.1

4,050

4.9

5.3

A

1.5

A-19

KDX Hamamatsucho Building

3,460

3,386

3,950

4,060

4.6

3,900

4.4

4.8

B

1.5

A-45

KDX Roppongi 228 Building

3,300

3,451

2,800

2,850

4.8

2,750

4.6

5.0

A

1.4

KDX Higashi-Shinjuku Building

2,950

3,195

3,370

3,500

5.3

3,310

5.1

5.5

B

1.3

A-20

KDX Kayabacho Building

2,780

2,903

3,220

3,240

5.2

3,210

5.0

5.3

C

1.2

A-56

KDX Jimbocho Building

2,760

2,982

2,660

2,660

5.3

2,650

5.0

5.5

A

1.2

A-49

Nissou Dai-17 Building

2,710

2,720

2,090

2,100

5.4

2,070

5.2

5.6

A

1.2

A-21

KDX Shinbashi Building

2,690

2,690

3,020

3,040

4.5

3,000

4.1

4.7

A

1.2

A-5

KDX Nakano Sakaue Building

2,533

2,553

2,680

2,690

5.1

2,670

4.9

5.3

B

1.1

A-22

KDX Shin-Yokohama Building

2,520

2,509

2,790

2,830

5.5

2,750

5.3

5.7

A

1.1

A-6

Harajuku F.F. Building

2,450

2,498

3,260

3,290

5.4

3,220

5.2

5.6

A

1.1

A-50

Ikejiri-Oohashi Building

2,400

2,457

2,180

2,180

5.7

2,170

5.4

5.8

A

1.0

A-27

KDX Kajicho Building

2,350

2,397

2,550

2,560

4.8

2,540

4.6

5.0

B

1.0

A-51

KDX Hamacho Nakanohashi Building

2,310

2,370

2,140

2,160

5.2

2,120

5.0

5.4

A

1.0

A-15

KDX Hamacho Building

2,300

2,350

3,010

3,060

5.3

2,990

5.1

5.4

C

1.0

A-41

KDX Shinjuku 286 Building

2,300

2,346

2,500

2,520

4.9

2,470

4.7

5.1

A

1.0

A-7

FIK Minami Aoyama

2,270

2,285

3,140

3,190

4.7

3,090

4.5

4.9

A

1.0

A-14

KDX Funabashi Building

2,252

2,488

2,390

2,420

5.7

2,370

5.5

5.9

C

1.0

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,259

2,240

2,320

4.5

2,200

4.3

4.7

Ｂ

0.9

A-55

Shin-toshin Maruzen Building

2,110

2,185

2,060

2,070

5.1

2,040

4.7

5.3

A

0.9

A-33

KDX Okachimachi Building

2,000

2,149

2,010

2,060

4.8

1,990

4.7

5.0

B

0.9

A-57

KDX Gobancho Building

1,951

2,036

1,870

1,880

5.0

1,850

4.7

5.1

A

0.8

A-8

Kanda Kihara Building

1,950

1,882

2,030

2,060

4.8

2,010

4.6

5.0

B

0.8

Metropolitan A-29
Area

(Note 4)Ratio

KDX Harumi Building

A-60

OfficeTerminalAppraiser-31-

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

Area

No.

Property Name

Price
（Note 1）

Amount on

Direct Capilization

the Balance

MethodSheet(Note 3)(Note 2)

Discounted Cash Flow Method

Overall
Value

Capitalization

Discount

Value

Rate (%)

Rate (%)

Tokyo

Terminal(Note 4)

Ratio(%)
（Note5）

Capitalization
Rate (%)

A-2

KDX Yotsuya Building

1,950

1,972

2,440

2,470

5.2

2,410

5.0

5.4

A

0.8

A-59

KDX Iwamoto-cho Building

1,864

1,882

1,810

1,830

5.3

1,790

5.1

5.5

A

0.8

A-9

KDX Shinjuku-Gyoen Building

1,610

1,608

2,140

2,160

4.9

2,120

4.7

5.1

A

0.7

A-26

KDX Kiba Building

1,580

1,672

1,800

1,830

5.5

1,790

5.3

5.6

C

0.7

A-38

KDX Nishi-Shinjuku Building

1,500

1,564

1,540

1,550

5.1

1,530

4.9

5.2

C

0.6

KDX Monzen-Nakacho Building

1,400

1,462

1,430

1,460

5.2

1,410

5.0

5.4

B

0.6

A-52

KDX Kanda Misaki-cho Building

1,380

1,400

1,160

1,170

5.2

1,140

5.0

5.4

A

0.6

A-34

KDX Hon-Atsugi Building

1,305

1,310

1,220

1,210

6.0

1,220

5.8

6.2

B

0.5

A-35

KDX Hachioji Building

1,155

1,341

1,010

1,060

5.5

993

5.3

5.7

B

0.5

A-28

KDX Nogizaka Building

1,065

1,134

1,060

1,080

5.0

1,050

4.8

5.1

C

0.4

Metropolitan A-31
Area

Appraiser

OfficeA-10

KDX Koishikawa Building

704

676

795

798

6.0

792

5.8

6.2

A

0.3

Buildings

A-12

Portus Center Building

5,570

5,147

5,500

5,570

6.0

5,470

5.8

6.2

B

2.5

A-42

Karasuma Building

5,400

5,541

5,820

5,920

5.3

5,780

5.1

5.5

B

2.4

A-53

KDX Hakata-Minami Building

4,900

4,938

4,720

4,750

6.3

4,680

6.1

6.5

A

2.2

4,000

4,165

4,180

-

-

-

-

-

B

1.8

A-58
Other

(Tentative Name) (Note 6)

Regional

A-43

KDX Hakata Building

2,350

2,441

2,200

2,200

6.1

2,190

5.9

6.3

A

1.0

Areas

A-54

KDX Kitahama Building

2,220

2,256

2,020

2,020

5.7

2,010

5.3

5.9

A

0.9

A-44

KDX Sendai Building

2,100

2,218

1,910

1,900

5.7

1,910

5.5

5.9

B

0.9

A-24

KDX Minami Semba Dai-1 Building

1,610

1,559

1,540

1,570

5.5

1,520

4.8

5.2

C

0.7

A-25

KDX Minami Semba Dai-2 Building

1,560

1,478

1,570

1,640

5.5

1,540

4.8

5.2

C

0.7

A-36

KDX Niigata Building

1,305

1,489

971

975

7.0

966

6.8

7.2

A

0.5

Subtotal of Office Buildings (60 properties)

196,965

200,372

211,106

-

88.7

Tokyo
Metropolitan
Residential

Sakae 4-chome Office Building

209,793(Note 7)204,701-(Note 7)

-

-

B-19

Residence Charmante Tsukishima

5,353

5,292

4,970

5,050

5.2

4,930

5.0

5.4

C

2.4

B-3

Court Mejiro

1,250

1,236

1,110

1,110

5.2

1,100

5.0

5.4

A

0.5

B-4

Apartments Motoazabu

1,210

1,213

1,250

1,260

4.9

1,240

4.7

5.1

A

0.5

B-5

Apartments Wakamatsu Kawada

1,180

1,163

1,200

1,210

5.0

1,190

4.8

5.2

A

0.5

B-34

Gradito Kawaguchi

1,038

1,064

1,030

1,040

5.4

1,020

5.1

5.7

C

0.4

B-25

Court Shin-Okachimachi

878

874

870

884

5.0

864

4.8

5.2

B

0.3

B-18

Venus Hibarigaoka

1,800

1,898

1,660

1,670

6.1

1,660

5.7

6.3

C

0.8

Subtotal of Residential Properties(7 properties)

12,70912,742

12,09012,224

-

5.7

Tokyo

Area

Properties
Other
Regional
Areas

CentralUrban
RetailProperties-

12,004--

C-1

Frame Jinnan-zaka

9,900

10,12811,80011,8004.3

11,700

4.0

4.4

A

4.4

C-2

KDX Yoyogi Building

2,479

2,550

2,410

2,440

4.9

2,400

4.7

5.0

C

1.1

12,37912,67914,210Metropolitan
Area

Subtotal of Central Urban Retail Properties (2 properties)
Total of 69 properties

222,053

225,795-32-

237,406

14,240236,257(Note 7)-

14,100230,805(Note 7)

-

-

-

5.5

-

-

-

100.0

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Notes:
1. Acquisition price is the purchase price for trust beneficiary interests or properties acquired by the Investment Corporation exclusive of taxes, 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 seventh fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation’s
Articles of Incorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports
prepared by the Japan Real Estate Institute, Daiwa Real Estate Appraisal Corporation, and Nippon Tochi-Tatemono Limited.
4. The appraisers for the properties are Japan Real Estate Institute (A), Daiwa Real Estate Appraisal Corporation (B) and Nippon Tochi-Tatemono
Limited (C).
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.
6. Notes for Sakae 4-chome Office Building (Tentative Name) are as follows.
“Acquisition Price”, “Amount on the Balance Sheet”, “Appraisal Value at the end of Seventh Fiscal Period”: The values concerning land are shown.
The value of “Direct Capitalization Method” and “Discounted Cash Flow Method” are shown as “-“ since the building is not yet completed.
7. The value calculated using the “Direct Capitalization Method” and the value calculated using the “Discount Cash Flow Method” for the Sakae
4-chome Office Building (Tentative Name) are not included in either the subtotal for the office buildings or the total for the entire property portfolio,
60 and 69, respectively. Accordingly, the subtotal and total are for 59 office buildings and 68 properties, respectively.

②Property Distribution
Property TypesType

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio
(Note) (%)
88.7
5.7

Office Buildings
Residential Properties
Central Urban Retail Properties

60
7
2

196,965
12,70912,379Others--69

222,053

100.0

Acquisition Price（Millions of Yen）

Ratio
(Note) (%)

58
11

189,238
32,815

85.2
14.7

69

222,053

100.0

Acquisition Price（Millions of Yen）

Ratio
(Note) (%)

1,582
63,75567,93351,18327,350
10,250

0.7
28.7
30.5
23.0
12.3
4.6

Total

5.5

Geographic Distribution
Area
Tokyo Metropolitan Area
Other Regional Areas
Total
Property Distribution by Acquisition Price
Acquisition Price(Millions of Yen)
Less than 1,000
1,000 - 2,500
2,500 - 5,000
5,000 - 7,500
7,500 - 10,000
10,000 – 12,500

Number of
Properties

Number of
Properties
2
35
19
9
3
1

Total
69
222,053100.0
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.

-33-

KENEDIX REALTY INVESTMENT CORPORATION (8972)① Details of Investment Real Estate and Trust Real Estate
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)

(%)

A-60

KDX Harumi Building

2,230.69

A-40

Toranomon Toyo Building

869.01

A-46

Hiei Kudan-Kita Building

1,844.83

A-37

KDX Ochanomizu Building

1,515.28

Offices,
Retail Shops
Bank, Offices
Retail Shops, Storage
Retail Shops, Office Room
Parking, Storage, Offices

12,694.32

8,346.83

11,425.31

Offices, Storage
Retail Shops, Parking

7,720.08

Mechanical Room

OfficeBuildings

A-32

KDX Shiba-Daimon Building

1,182.40

A-13

KDX Kojimachi Building

612.17A-1

KDX Nihonbashi 313 Building

1,047.72

A-16

Toshin-24 Building

1,287.16

A-2

KDX Hirakawacho Building

1,013.85

A-47

KDX Shin-Yokohama 381 Building

911.24A-17

Ebisu East 438 Building

724.22

A-3

Higashi-Kayabacho Yuraku Building

773.43

A-39

KDX Toranomon Building

288.20A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87

1,968.13

Offices

7,420.87

Offices

4,800.43

Tokyo
Metropolitan

Offices
Offices
Retail Shops
Offices
Offices, Retail Shops
Parking
Offices, Retail Shops
Residential Complex
Offices, Parking,Retail Shops
Offices
Retail Shops

7,824.03

5,323.81

8,613.09

8,483.17

8,002.97

7,673.67

4,394.58

Area

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

Offices
Retail Shops
Offices

5,916.48

2,277.38

A-4

KDX Hatchobori Building

992.20A-18

KDX Omori Building

1,123.93

A-19

KDX Hamamatsucho Building

504.26A-45

KDX Roppongi 228 Building

408.86A-29

KDX Higashi-Shinjuku Building

1,340.97

A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13-34-

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

7,334.77

3,592.38

2,235.30

7,885.40

S・SRC
B1F11
RC
B2F9
SRC･S
B1F11
SRC
B1F7
SRC
B1F9
SRC
B2F9
SRC
B2F9
SRC
B1F8
SRC
B3F10
SRC
B1F10
SRC
B1F7
SRC
B1F9
SRC
B1F9
SRC
B1F8
SRC
B1F9
SRC・RC
B1F8
RC・SRC
B1F9
S
F9
SRC
B1F9
SRC
B1F9
SRC
F8
SRC
B1F8

February 2008

5.60

August 1962

13.06

March 1988

3.14

August1982

2.97

July 1986

7.60

May 1994

3.60

April 1974

9.50

September 1984

8.75

March 1988

7.25

March 1988

11.64

January 1992

4.16

January 1987

7.01

April 1988

8.07

November 1992

8.28

February 1985

8.34

June 1993

6.42

October 1990

0.71

September 1999

6.13

September 1999

8.95

January 1990

3.63

October 1987

7.90

May 1994

7.25

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)

(%)

A-49

Nissou Dai-17 Building

629.00A-21

KDX Shinbashi Building

536.11

A-5

KDX Nakano Sakaue Building

1,235.16

Offices, Parking
Offices, Retail Shops
Parking

4,016.61

3,960.22

Offices, Retail Shop,
Residential, Parking

6,399.42

Storage

OfficeBuildings

Tokyo

A-22

KDX Shin-Yokohama Building

705.00

A-6

Harajuku F.F. Building

699.67

A-50

Ikejiri-Oohashi Building

834.79

Offices

3,482.96

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41

A-15

KDX Hamacho Building

554.80A-41

KDX Shinjuku 286 Building

421.70

A-7

FIK Minami Aoyama

369.47

A-14

KDX Funabashi Building

1,180.41

A-61

KDX Hamamatsucho Dai-2 Building

368.28

A-55

Shin-toshin Maruzen Building

457.64A-33

KDX Okachimachi Building

239.72

Offices

1,882.00

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11

A-8

Kanda Kihara Building

410.18

Offices

2,393.94

A-23

KDX Yotsuya Building

996.65A-59

KDX Iwamoto-cho Building

266.86

A-9

KDX Shinjuku-Gyoen Building

383.63

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64

A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63

A-31

KDX Monzen-Nakacho Building

580.99Metropolitan
Area

Offices, Retail Shops-35-

Parking
Retail Shops
Offices, Parking

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

Offices, Retail Shops
Parking
Offices
Residential Complex
Offices, Retail Shops
Residential

Offices
Retail Shops

6,180.51

3,812.44

4,133.47

3,432.04

1,926.98

5,970.12

2,478.90

3,439.37

3,329.68

1,618.65

2,594.88

2,668.91

SRC
B1F8
SRC・S
B1F8
SRC
B1F11
S
B1F9
SRC
F11
RC
B2F9
SRC
B1F8
SRC
F9
SRC
B2F10
SRC・RC
B1F9
SRC
B1F9
SRC
B1F8
S・SRC
B1F8
SRC
B1F8
S
F10
S
F8
SRC・RC・S
B1F8
RC
B2F4
S
F9
S・SRC
F9
RC
F5
RC
F5
SRC
F8

July 1991

13.23

February 1992

6.84

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

June 1988

2.23

August 2000

9.06

May 1993

7.77

October 1989

9.79

March 2008

7.15

June 1992

6.05

October 1992

7.79

October 1992

9.02

September 1986

5.72

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)

(%)

A-52

KDX Kanda Misaki-cho Building

314.54A-34

KDX Hon-Atsugi Building

724.62A-35

KDX Hachioji Building

460.62A-28

KDX Nogizaka Building

409.36

A-10

KDX Koishikawa Building

404.89Tokyo
Metropolitan
Area

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

1,536.60

3,603.63

2,821.21

1,695.07

1,866.58

Offices
A-12

Portus Center Building

13,936.63

Retail Shops, Storage

79,827.08

Parking
A-42

Karasuma Building

1,788.67

A-53

KDX Hakata-Minami Building

1,826.25

OfficeBuildings

A-58

Other
Regional

Sakae 4-chome Office Building(Tentative Name) (Note 6)

1,192.22

A-43

KDX Hakata Building

Properties

Parking
Offices, Retails Shops(Restaurant)

13,238.16

10,848.45

1,130.86

Mechanical Room

6,537.33

Multilevel Parking
A-54

KDX Kitahama Building

751.92

Offices, Storage, Parking

4,652.96

A-44

KDX Sendai Building

987.78

Offices

5,918.30

A-24

KDX Minami Semba Dai-1 Building

715.44

Offices, Parking

4,236.59

A-25

KDX Minami Semba Dai-2 Building

606.45

A-36

KDX Niigata Building

1,110.56

Subtotal of Office Buildings (60 properties)

Tokyo

Offices, Retail Shops,

12,632.68

Offices

Areas

Residential

Offices

62,510.17

Parking, Retail Shops
Offices, Residential
Offices
Retail Shops
Residential Complex

3,315.93

6,810.29
380,676.18

B-19

Residence Charmante Tsukishima

4,252.86

B-3

Court Mejiro

1,581.91

Residential Complex

3,326.07

B-4

Apartments Motoazabu

639.41

Residential Complex

1,685.14

B-5

Apartments Wakamatsu Kawada

412.42

Residential Complex

1,858.51

B-34

Gradito Kawaguchi

423.94B-25

Court Shin-Okachimachi

311.22

Offices

18,115.39

Metropolitan
Area

-36-

Residential Complex
Retail Shops
Residential Complex

1,705.38

1,494.55

SRC
B1F7
SRC
F8
SRC
F9
RC
B1F5
SRC
B1F9
SRC・S
B2F25
SRC
B1F8
SRC
B1F9
S (portion RC)
F11
SRC
F9
S
F10
SRC
B1F10
SRC・RC・S
B1F9
SRC・S
B1F9
RC
B2F13
SRC
B1F10
RC
B1F3
RC
F11
RC
F12
RC
F12
RC
F11

October 1992

9.41

May 1995

11.12

December 1985

13.00

May 1991

9.48

October 1992

9.32

September 1993

3.48

October 1982

8.37

June 1973

1.48

June 2009

3.39

July 1982

1.84

July 1994

9.79

February 1984

1.93

March 1993

9.04

September 1993

10.59

July 1983

4.39

Average of 20.1 yrs-

January 2004

9.88

March 1997

7.11

January 2004

8.84

February 2004

7.61

February 2006

6.46

October 2005

4.09

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)

(%)

Other

Residential

Regional

Properties①RC F6B-18

Venus Hibarigaoka

8,595.00

Residential Complex

14,976.25

Areas

Tokyo

Urban

16,216.76

C-1

Frame Jinnan-zaka

1,240.51

C-2

KDX Yoyogi Building

228.74

Metropolitan

RetailArea

Properties

5.20

Average of 7.2 yrs-

March 2005

8.02

August 1991

8.17-

③RC F6

Subtotal of Residential Properties (7 properties)
CentralMarch 1989

②RC F5-

43,161.29

Retail Shops

6,302.58

Retail Shops

1,269.06

Offices

S・RC・SRC
B2F7
SRC
F8

Subtotal of Central Urban Retail Properties (2 properties)

1,469.25-

7,571.64-

Average of 6.2 yrs

Total of 69 properties

80,196.18-

431,409.11-

Average of 18.6 yrs

5.3(Note 7)

Notes:
1.

Site area data is based on figures recorded in the land register and includes relevant figures in the case of leasehold land. Data may not match withthe actual current status. Property that includes land leasehold encompass the site area applicable to leasehold portions. Compartmentalizedbuilding ownership includes the site area relating to site rights and the total floor area for the entire building, structure and number of floors.

2.

Usage is based on data recorded in the land register. All types of use are reported in the case of multi-purpose application.

3.

Total floor space is based on figures recorded in the land register and does not include related structures. The total floor area for the entire
buildings is reported for compartmentalized ownership.

4.

Type of structure data is based on data recorded in the land register. 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 October 31, 2008. Sakae 4-chome Office Building (Tentative Name) is not included in theweighted-average age.

6.

Notes for the Sakae 4-chome Office Building (Tentative Name) are as follows.
“Total Floor Area”, “Type of Structure”: The figure is entered based on what is written in the building certificate pursuant to the provisions ofArticle 6-2-1 of the Building Standards Law, as the building has not been completed or registered. The current design content may be changed in
the future in accordance with the status of construction and other factors.
“Completion Date”: The completion date in the construction contract agreement is shown.
“PML Percentage”: The figure is based on the present design and specifications as of April 2008.

7.

Probable Maximum Loss (PML) data is based on a survey provided by Sompo Japan Risk Management, Inc. as of June 2008. Sakae 4-chome
Office Building (Tentative Name) is not included in the Portfolio PML.

-37-

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 eighth fiscal period(November 1, 2008 to April 30, 2009) are as follows. Planned capital expenditure includes portions classified into expenses foraccounting purposes.
Property Name

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

Schedule(Location)
KDX Shin-Yokohama 381 Building

November 2008 to

Upgrade of restrooms other(Yokohama-shi, Kanagawa)
KDX Kawasaki-Ekimae Hon-cho Building(Kawasaki-shi, Kanagawa)
KDX Ochonomizu Building(Chiyoda-ku, Tokyo)
KDX Kajicho Building(Chiyoda-ku, Tokyo)
Ikejiri-Oohashi Building(Meguro-ku, Tokyo)

April 2009

214

-

-

Upgrade of air conditioning system,other

As above

190

-

-

Upgrade of air conditioning system,other

As above

113

-

-

Upgrade of air conditioning system,other

As above82--

Upgrade of air conditioning system for
4F-9F, other

As above54--(b) Capital Expenditures During the Fiscal Period Under Review
The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review, theInvestment Corporation completed work across its entire portfolio totaling ¥1,294 million. This total comprised of ¥1,105 million incapital expenditures and ¥188 million for repairs, maintenance and renovation expenses.
Property Name

Purpose(Location)
Karasuma Building(Kyoto-shi, Kyoto)
KDX Jimbocho Building(Chiyoda-ku, Tokyo)

Schedule
May 2008 to

Renovation for 8F, others

October 2008

Renovation for all the floors, others

As above76

Upgrade of air conditioning system, other

As above

66

Upgrade of restrooms other

As above

65

Upgrade of air conditioning system, other

As above

52

Upgrade of air conditioning system, other

As above51

Upgrade of elevators, other

As above

51(Nakano-ku, Tokyo)(residential portion), others

KDX Ochonomizu Building(Chiyoda-ku, Tokyo)
KDX Kayabacho Building(Chuo-ku, Tokyo)
KDX Funabashi Building(Funabashi-shi, Chiba)
KDX Sendai Building(Sendai-shi, Miyagi)

130
113

Upgrade of air conditioning system, full renovation for the 11F(Koto-ku, Tokyo)(Millions of Yen)As above

KDX Nakano –Sakaue Building
KDX Kiba Building

Amount of Capital Expenditures

Others498

Portfolio Total

1,105

Note: The money amount of the capital expenditures are rounded to the nearest ¥1 million.

-38-

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 meetlarge-scale renovation over the medium- to long-terms. The following amount has been transferred to the reserve from period cash
flows.
( Millions of Yen)
Fourth Fiscal
PeriodFifth Fiscal

Sixth Fiscal

Seventh Fiscal

PeriodPeriodPeriodReserve for the end of the previous period

165

288

406

777

432

Reserve for the fiscal period under review

148

118

370

14

128

Reversal of reserve for the fiscal period under review

26

0

－

359

8

Reserve bring to the next period

288

406

777

432

552

Fiscal period

Third Fiscal
Period-39-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

C.

Details of the Tenants(As of October 31, 2008)
Total Rental

Type

Area

No.

Property Name

Total Leasable

Total Leased

Total No. of Leased

No. ofOccupancy and Other Operating

Floor Area

Floor Area Leasable Residential Residential units

Tenants

Ratio (%）

Revenues(㎡)(Note 1)(㎡)(Note 2)(Note 5)(Note 6)(¥thousands)

Total No. ofunits (Note 3)(Note 4)(Note 7)

OfficeBuildings

Leasehold andSecurity Deposits(¥thousands)(Note 8)A-60

KDX Harumi Building

9,294.00

9,294.00-- 6 (Note9)

100.0

172,904

574,468

A-40

Toranomon Toyo Building

6,339.73

6,339.73

-

-

13

100.0

324,782

526,206

A-46

Hiei Kudan-Kita Building

6,902.72

6,902.72

-

-

16

100.0

305,494435,676

A-37

KDX Ochanomizu Building

5,875.88

5,297.71

-

-

4

90.2

206,233

221,705

A-32

KDX Shiba-Daimon Building

6,030.01

6,030.01

-

-

9

100.0

223,871

276,414

A-13

KDX Kojimachi Building

3,809.74

3,739.88

-

-

9

98.2

200,707

301,179

A-1

KDX Nihonbashi 313 Building

5,901.12

5,901.12

-

-

9

100.0

265,635

345,354

A-16

Toshin-24 Building

6,610.22

6,610.22

-

-

14

100.0

219,072

259,948

A-2

KDX Hirakawacho Building

4,447.08

4,447.08

4

4

19

100.0

184,032

252,308

A-47

KDX Shin-Yokohama 381 Building

5,793.44

5,647.32

-

-

23

97.5

161,054244,812

A-17

Ebisu East 438 Building

3,079.74

3,079.74

-

-

7

100.0

166,715

271,557

A-3

Higashi-Kayabacho Yuraku Building

4,413.17

4,413.17

-

-

7

100.0

185,322

246,519

A-39

KDX Toranomon Building

1,966.56

1,545.30

-

-

5

78.6

129,438

225,844

A-30

KDX Nishi-Gotanda Building

3,881.90

3,881.90

-

-

5

100.0

173,814

241,461

A-48

KDX Kawasaki-Ekimae Hon-cho Building

5,124.98

5,124.98

-

-

1

100.0

193,323

155,091

A-4

KDX Hatchobori Building

3,325.04

3,325.04

-

-

6

100.0

139,087

151,562

A-18

KDX Omori Building

4,949.46

4,949.46

-

-

11

100.0

175,233

228,727

A-19

KDX Hamamatsucho Building

2,727.68

2,057.47

-

-

7

75.4

122,752

193,575

A-45

KDX Roppongi 228 Building

1,910.95

1,489.86

-

-

7

78.0

67,35976,920A-29

KDX Higashi-Shinjuku Building

5,950.36

5,131.15

-

-

8

86.2

139,088

146,843

A-20

KDX Kayabacho Building

3,019.94

3,019.94

-

-

6

100.0

115,820

218,471

Metropolitan A-56

KDX Jimbocho Building

2,320.69

1,387.88

-

-

1

59.8

9,235

93,082

A-49

Nissou Dai-17 Building

2,740.07

2,740.07

-

-

7

100.0

85,95586,698A-21

KDX Shinbashi Building

1,704.65

1,704.65

-

-

4

100.0

97,074

127,604

A-5

KDX Nakano Sakaue Building

4,391.37

4,238.85

17

16

25

96.5

103,729

99,553A-22

KDX Shin-Yokohama Building

4,810.89

4,003.51

-

-

18

83.2

116,363

163,760

Tokyo

Area

A-6

Harajuku F.F. Building

3,068.36

3,068.36

-

-

3

100.0

116,347

169,223

A-50

Ikejiri-Oohashi Building

2,449.11

2,449.11

-

-

8

100.0

87,354

117,767

A-27

KDX Kajicho Building

2,562.32

2,562.32

-

-

9

100.0

94,161

121,379

A-51

KDX Hamacho Nakanohashi Building

2,245.69

2,245.69

-

-

7

100.0

84,252

100,798

A-15

KDX Hamacho Building

3,102.43

3,102.43

-

-

8

100.0

107,429

137,651

A-41

KDX Shinjuku 286 Building

2,447.80

2,447.80

-

-

9

100.0

91,489108,838

A-7

FIK Minami Aoyama

1,823.64

1,823.64

-

-

5

100.0

91,813

114,502

A-14

KDX Funabashi Building

3,885.53

3,822.53

-

-

17

98.4

109,945

137,602

A-61

KDX Hamamatsucho Dai-2 Building

1,953.50

1,953.50

-

-

8

100.0

26,037

105,524

A-55

Shin-toshin Maruzen Building

1,949.62

1,577.40

-

-

5

80.9

65,546

97,064A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

4

100.0

72,351

114,836

A-57

KDX Gobancho Building

1,651.72

1,415.76

-

-

6

85.7

49,00550,316

A-8

Kanda Kihara Building

1,945.55

1,945.55

-

-

8

100.0

72,208137,482

A-23

KDX Yotsuya Building

2,536.53

2,536.53

-

-

3

100.0

98,444

147,548

A-59

KDX Iwamoto-cho Building

1,524.68

1,413.96

3

3

8

92.7

53,702

61,085

A-9

KDX Shinjuku-Gyoen Building

2,105.18

2,105.18

-

-

1

100.0

74,940109,676

A-26

KDX Kiba Building

2,448.97

2,448.97

-

-

7

100.0

62,21880,358-40-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Total Rental

Type

Area

No.

Property Name

Total Leasable

Total Leased

Total No. of Leased

No. ofOccupancy and Other Operating

Floor Area

Floor Area Leasable Residential Residential units

Tenants

Ratio (%）

Revenues(㎡)(Note 1)(㎡)(Note 2)(Note 5)(Note 6)(¥thousands)

Total No. ofunits (Note 3)(Note 4)(Note 7)

Tokyo

Security Deposits(¥thousands)(Note 8)A-38

KDX Nishi-Shinjuku Building

1,605.72

1,605.72

-

-

9

100.0

55,571

68,584A-31

KDX Monzen-Nakacho Building

2,012.22

2,012.22

-

-

5

100.0

54,361

57,045A-52

KDX Kanda Misaki-cho Building

1,339.46

1,339.46

-

-

8

100.0

37,912

48,985KDX Hon-Atsugi Building

2,747.27

2,434.43

-

-

8

88.6

65,86287,542A-35

KDX Hachioji Building

2,179.88

1,866.07

-

-

6

85.6

46,562

43,392A-28

KDX Nogizaka Building

1,236.39

1,236.39

1

1

4

100.0

42,04550,550A-10

KDX Koishikawa Building

1,594.18

1,594.18

-

-

4

100.0

39,79052,604

Metropolitan A-34
Area

Leasehold and

A-12

Portus Center Building

11,569.19

11,569.19

-

-

30

100.0

334,993425,658

OfficeA-42

Karasuma Building

7,778.43

7,628.18

-

-

28

98.1

219,432

247,153

Buildings

A-53

KDX Hakata-Minami Building

10,187.70

9,723.97

-

-

43

95.4

206,724

254,072

-

-

-

-

-

-

49,998-KDX Hakata Building

4,934.53

4,934.53

-

-

33

100.0

112,596

134,229

Other

A-58

(Tentative Name)

Regional

A-43

Areas

A-54

KDX Kitahama Building

3,993.00

3,516.40

-

-

9

88.1

88,37077,692A-44

KDX Sendai Building

3,955.02

3,409.95

-

-

24

86.2

95,405

224,144

A-24

KDX Minami Semba Dai-1 Building

3,108.18

2,847.25

-

-

9

91.6

64,10883,254

A-25

KDX Minami Semba Dai-2 Building

2,699.27

2,461.82

-

-

22

91.2

60,90743,185

A-36

KDX Niigata Building

4,085.26

3,112.92

-

-

25

76.2

57,371

70,463

Subtotal of Office Buildings (60 properties)

221,840.26

212,306.71

25

24

630

95.7

,273,365

10,045,564

7,711.14

7,711.141401401(Note10)100.0

167,586

50,580

B-19
Tokyo
Metropolitan
Residential

Sakae 4-chome Office Building

Area

Residence Charmante Tsukishima

B-3

Court Mejiro

2,046.79

2,046.79

20

20

20

100.0

44,561

17,522

B-4

Apartments Motoazabu

1,350.74

1,277.15

22

21

21

94.6

37,136

12,817

B-5

Apartments Wakamatsu Kawada

1,607.43

1,607.43

33

33

33

100.0

38,522

12,665

B-34

Gradito Kawaguchi

1,619.34

1,619.34

66

66

2(Note11)

100.0

32,96810,028B-25

Court Shin-Okachimachi

1,377.87

1,377.87

41

41

41

100.0

28,808

9,446

B-18

Venus Hibarigaoka

12,829.64

11,383.55

159

141

99

88.7

88,301

24,462

Subtotal of Residential Properties (7 properties)

28,542.95

27,023.27

481

462

217

94.7

437,885

137,520

Tokyo

Properties
Other
Regional
Areas

CentralUrban
RetailProperties

C-1

Frame Jinnan-zaka

4,655.71

4,558.23

-

-

14

97.9

299,978

343,772

C-2

KDX Yoyogi Building

1,175.38

1,078.26

-

-

9

91.7

69,768116,765

Subtotal of Central Urban Retail Properties (2 properties)

5,831.09

5,636.49

-

-

23

96.7

369,746

460,538

Total of 69 properties

256,214.30

244,966.47

506

486

95.6

8,080,997

10,643,623

Metropolitan
Area

Occupancy Ratio over the Past Five Years
October 31, 2005

96.6%

April 30, 2006

94.9%

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%

-41-

870
(Note12)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 eachbuilding 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 withend 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 toNote 10, and for Gradito Kawaguchi, please refer to Note 11.
6. The occupancy ratio is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place.
7. Total rental and other operating revenues cover all income, including that from rental revenue, common charges, and parking space rental revenues,
rounded to the nearest one thousand yen. Total real estate business rental revenues refers to the total amount of revenues generated during the fiscal
period under review from real estate rental operations including leasing revenues, common charges and parking revenues rounded down to the nearest
thousand yen.
8. Guarantee and security deposits refers to the balance of security deposits held (including net security deposits in the case of discount) and the balance ofguarantee deposits rounded down to the nearest thousand yen.
9. Because the Investment Corporation has concluded a pass-through type of master lease contract based on partially fixed rent (fixed-term lease: until
June 30, 2009) with the property’s trustee and Kenedix, Inc., which is the property’s master lessor, the total number of end tenants is indicated.
10. Because we have concluded a rental guarantee (fixed-term lease: until January 31, 2009) fixed-term building lease contract (term of contract: toJanuary 31, 2029) with Sekiwa Real Estate, Ltd., a master lessor, the total number of tenants is indicated 1.
11. Because the master lessor and Haseko Livenet Inc. have concluded a rental guarantee (fixed-term lease: until March 31, 2010) building lease contractfor dwelling units (excluding first-floor shops), the total number of tenants is indicated as 2.
12. The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.
(Reference) Total rental and other revenues for the office building and central urban retail property sold during the Seventh Fiscal Period
A-11 Hakata Ekimae Dai-2 Building¥43,119 thousands

C-3

ZARA Tenjin Nishi-dori¥32,400 thousands

Total¥75,519 thousands

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 for the seventh fiscal period.
E. Information concerning major tenants(a) Tenant which holds more than 10% of the total leased area: None(b) Reference: Major end tenants

Name of End Tenant
1

Sekiwa Real Estate, Ltd.

2

NTT Data Corporation

3
4

N / A (Note 2)
Five Foxes Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ,
5
Ltd.
Subtotal

Property Name
Residence Charamante Tsukishima
KDX Harumi Building
KDX Higashi-Shinjuku Building
KDX Kawasaki-Ekimae Hon-cho Building
Harajuku F.F. Building
Toranomon Toyo Building, Harajuku F.F.
Building, KDX Yoyogi Building

Portfolio Total(As of October 31, 2008)
Leased Floor Percentage of Total Leased
Area
Floor Area (Note 1)
7,711.14 ㎡

3.2％

5,185.96 ㎡

2.1％

5,124.98 ㎡
2,855.05 ㎡

2.1％
1.2％

2,768.80 ㎡

1.1％

23,645.93 ㎡

9.7％

244,966.47 ㎡

100.0％

Notes:
1.

Percentage of total leased floor area refers to the floor area leased to each end tenant as a proportion of total leased floor area. Figures are rounded to thenearest first decimal place.

2.

Not disclosed due to the tenants’ request.

-42-

a0131

a0011

a0161

a0021

Price Information

Lease Information

As of April 30, 2006

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 7th Fiscal Period

Reference

Reference：Amount of yearly avg.

Estimated amount of 12 yrs after the acquisition \( Thousands)

Long-term repairs, maintenance and renovation

Reference： Percentage of rental and other operating revenues

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

Property tax for the year 2008 (or the year 2007) (\ Thousands)

Expense ratio （＝②／①）⑦ＮＣＦ （＝③-⑥） (\ Thousands)⑥Capital expenditures (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)④Depreciation (\ Thousands)③ＮＯＩ （＝①-②） (\ Thousands)

Trust fees and other expenses

Insurance

Repairs and maintenance costs

Utilities

Taxes

Property management fees

②Property-related expenses (\ Thousands)

Other operating revenues

Rental revenues①Rental and other operating revenues (\ Thousands)

Operating periods

Occupancy ratio

Leased floor area（㎡)Leasable floor area (㎡)Total of end tenants

Percentage of total appraisal value

Appraisal value at the end of period (\ Millions)

Net book value (\ Millions)

Percentage of total portfolio

Acquisition price (\ Millions)

Acquisition Date

Property Name

480

417

2,715

251,519

11,607

239,9113,500

248,01922.6%
55,874
11,761
3.62%

260,050
21,67050

31,28399,29864,03735,261

1,260

98,038

42.6%
9,041
5,555
3.21%

110,320
9,193

19,917

19,170383

21,78973,26373,60627,943

19,70820,404-305,073

152,500

22,718184days

324,782

124days100.0%
99.1%
97.5%
-

100.0%-

172,904

9,850
4.4%
9,912
11,1004.7%
136,339.73
6,339.73

June 1, 2007

June 30, 2008

10,250
4.6%
10,22810,7004.5%
69,294.00
9,294.00

Toranomon Toyo
Building

KDX Harumi
Building

347,270
28,93925.4%
46,662
10,883
3.56%

227,816-

213,496

14,320227,816

15,481

534

4,766

24,348-32,547

77,67738,362

267,131305,494

184days100.0%
100.0%-

February 1, 2008
7,600
3.4%
7,650
8,150
3.4%
16
6,902.72
6,902.72

Hiei Kudan-Kita
Building

323,470
26,95524.1%
29,1007,401
3.59%

91,26965,191

138,864

17,596

156,461

6,995

342

1,474

13,455

14,665

12,837

49,771

15,317

190,915

206,233

184days90.2%
100.0%
100.0%
100.0%
-

6,400
2.9%
6,522
7,320
3.1%
4
5,875.88
5,297.71

April 2, 2007

KDX Ochanomizu
Building

KDX Kojimachi
Building

KDX Nihonbashi
313 Building

242,590
20,21523.5%
22,4758,208
3.67%

145,364

25,985

143,782

27,567

171,349

3,261

325

3,405

16,032

11,286

18,21052,521

21,362

202,508

223,871

184days100.0%
100.0%
100.0%
93.0%
-

6,090
2.7%
6,350
6,770
2.9%
9
6,030.01
6,030.01

117,280
9,773

31.4%
31,7206,906
3.44%

116,783

20,925

97,83739,870137,708

1,012

269

21,363

12,05815,912

12,38362,99823,910176,796

200,707

184days

98.2%
98.2%
97.1%
97.1%
97.1%
80.5%

5,950
2.7%
5,844
6,400
2.7%
9
3,809.74
3,739.88

292,110
24,34222.8%
35,106
9,828
3.70%

196,634

8,557

170,149

35,042

205,191

1,386

383

5,186

15,932

17,246

20,30760,443

18,295247,339

265,635

184days100.0%
100.0%
100.0%
98.9%
100.0%
100.0%

5,940
2.7%
6,281
7,680
3.2%
9
5,901.12
5,901.12

March 1, 2007 November 1, 2005 August 1, 2005

KDX ShibaDaimon Building

176,760
14,73022.9%
23,6608,047
3.67%

158,679

10,192

136,156

32,715

168,872

1,116

402

3,078

17,322

5,953

22,32750,20030,900188,171

219,072

184days100.0%
100.0%
100.0%
100.0%
100.0%
-

5,300
2.4%
5,255
5,440
2.3%
14
6,610.22
6,610.22

May 1, 2006

Toshin 24 Building

a0471

a0171

203,540
16,961

29.7%
29,391
6,646
3.61%

124,071

5,302

95,214

34,159129,373

4,058

346

5,716

12,431

14,74017,36454,65820,485

163,546

184,032

184days100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

5,180
2.3%
5,235
5,780
2.4%
19
4,447.08
4,447.08

192,390
16,032

18.7%
19,6635,957
3.70%

125,696

5,188

101,569

29,315130,885

785

348

858

15,497-

12,67730,16829,307

131,746

161,054

184days

97.5%
94.6%
-

4,700
2.1%
4,704
4,100
1.7%
23
5,793.44
5,647.32

August 1, 2005 February 1, 2008

KDX ShinYokohama 381
Building

144,400
12,03323.7%
20,218
5,999
3.60%

126,772500

99,882

27,389127,272

2,557

208

3,011

11,058

10,151

12,45539,442

20,411

146,303

166,715184days100.0%
100.0%
100.0%
100.0%
100.0%
-

4,640
2.1%
4,586
5,380
2.3%
7
3,079.74
3,079.74

May 1, 2006

Ebisu East 438
Building※As of October 31, 2008

KDX Hirakawacho
Building

Tokyo Metropolitan Area

a0321

Location

a0371

Office Buildings

a0461

Type

a0401

Earnings Performance for the Individual Properties for the 7th Fiscal Period (May 1, 2008 to October 31, 2008)：184days

a0601【Reference】

-43-

a0391

KDX NishiGotanda Building

a0301

157,780
13,14821.5%
18,2776,750
3.64%

132,085

13,385

104,769

40,701

145,470

2,469

261

2,958

10,2109,161

14,78939,851

18,741

166,580

185,322184days100.0%
100.0%
100.0%
89.1%
100.0%
100.0%

4,450
2.0%
4,497
6,380
2.7%
7
4,413.17
4,413.17

70,4005,866

18.0%
19,0844,807
3.71%

105,879250

93,027

13,101

106,129

1,795

107

88

4,309

9,583

7,425

23,3097,810

121,627

129,438

184days

78.6%
100.0%
100.0%
-

4,400
2.0%
4,877
4,640
2.0%
5
1,966.56
1,545.30

136,230
11,352

21.6%
17,5036,329
3.64%

134,146

2,193

86,77149,568136,339

1,817

241

1,908

10,508

9,452

13,54637,47527,354146,460

173,814184days100.0%
100.0%
100.0%
73.7%
-

4,200
1.9%
4,253
4,920
2.1%
5
3,881.90
3,881.90

August 1, 2005 April 17, 2007 December 1, 2006

Higashi-Kayabacho KDX Toranomon
Yuraku Building
Buildinga0031

a0291

a0201

a0561

a0491

Lease Information

As of April 30, 2006

As of October 31, 2006

As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Income and Retained Earnings Information for the 7th Fiscal Period

Reference

Reference：Amount of yearly avg.

Estimated amount of 12 yrs after the acquisition \( Thousands)

Long-term repairs, maintenance and renovation

Reference： Percentage of rental and other operating revenues

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

Property tax for the year 2008 (or the year 2007) (\ Thousands)

Expense ratio （＝②／①）⑦ＮＣＦ （＝③-⑥） (\ Thousands)⑥Capital expenditures (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)④Depreciation (\ Thousands)③ＮＯＩ （＝①-②） (\ Thousands)

Trust fees and other expenses

Insurance

Repairs and maintenance costs

Utilities

Taxes

Property management fees

②Property-related expenses (\ Thousands)

Other operating revenues

Rental revenues①Rental and other operating revenues (\ Thousands)

Operating periods

Occupancy ratio

Leased floor area（㎡)Leasable floor area (㎡)Total of end tenants

Percentage of total appraisal value

Appraisal value at the end of period (\ Millions)

Net book value (\ Millions)

Percentage of total portfolio

Acquisition price (\ Millions)

Acquisition Date

Property Name

KDX Hatchobori
Building

65,975103,034

88,4907,374

36,98824,474446,967
37,247

102,964

127,50926.0%
17,975
4,939
3.55%

1,038

668

34.0%
15,153
6,547
3.39%

229

674

1,969

351

288

102,290

10,69236,257

1,060

9,013

-

126,449

36,123

13,17921,172

59,25765,814

117,915

134,066

28,248184days

139,087

184days

193,323100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%-

February 1, 2008 August 1, 2005
3,760
3,680
1.7%
1.7%
3,780
3,527
3,480
3,980
1.5%
1.7%
1
6
5,124.98
3,325.04
5,124.98
3,325.04

KDX KawasakiEkimae Hon-cho
Building

276,530
23,04430.8%
24,197
6,052
3.45%

115,085

6,255

95,66925,670121,340

1,318

340

2,794

19,24912,17018,01853,892

24,996150,236

175,233

184days100.0%
100.0%
100.0%
100.0%
100.0%
-

3,500
1.6%
3,499
4,090
1.7%
11
4,949.46
4,949.46

May 1, 2006

KDX Omori
Building

68,1805,681

29.0%
17,0884,284
3.49%

86,560650

65,14822,062

87,210

8,881

158

2,237

7,090

8,602

8,570

35,541

11,955

110,796

122,752

184days75.4%
100.0%
100.0%
100.0%
100.0%
-

3,460
1.6%
3,386
3,950
1.7%
7
2,727.68
2,057.47

May 1, 2006

KDX
Hamamatsucho
Building

54,680
4,556

26.5%
13,4352,455
3.65%

48,2291,250

44,7594,719

49,479

1,584

104

2,857

7,314

-

6,020

17,8807,438

59,921

67,359184days

78.0%
80.4%
-

200,740
16,72832.7%
27,3784,750
3.42%

78,096

15,571

76,124

17,543

93,668

2,556

350

2,030

12,936

13,68813,85845,42039,63599,452139,088

184days

86.2%
82.2%
92.6%
100.0%
100.0%-

January 10, 2008 September 1, 2006
3,300
2,950
1.5%
1.3%
3,451
3,195
2,800
3,370
1.2%
1.4%
7
8
1,910.95
5,950.36
1,489.86
5,131.15

KDX Roppongi 228 KDX HigashiBuilding
Shinjuku Building

114,840
9,570

27.4%
13,5504,079
3.52%

31,51352,56968,795

15,28784,082

6,839

171

1,341

7,324

6,848

9,212

31,737

12,455

103,364

115,820

184days100.0%
100.0%
100.0%
84.9%
100.0%
-

2,780
1.3%
2,903
3,220
1.4%
6
3,019.94
3,019.94

May 1, 2006

KDX Kayabacho
Building

Nissou Dai-17
Building

22.7%
29,8783,109
3.62%
88,4807,373

571.0%
9,367
184
2.00%
112,870
9,405

7,291
59,134

113,096

50,612△57,225△156,594

15,813

66,426△43,497
13,728

1,300

182

545

9,323

-

8,176

19,52813,471

72,48385,955184days100.0%
100.0%
-

2,710
1.2%
2,720
2,090
0.9%
7
2,740.07
2,740.07

9,255

121

39,267

2,427

-

1,661

52,733

-

9,235

9,235

184days

59.8%
0.0%
-

2,760
1.2%
2,982
2,660
1.1%
1
2,320.69
1,387.88

a0211

a0051

102,789
8,565

27.3%
20,035
3,421
3.53%

66,942

3,654

60,378

10,21870,597

3,095

132

798

5,135

10,037

7,277

26,476

7,116

89,957

97,074184days100.0%
100.0%
100.0%
100.0%
100.0%
-

2,690
1.2%
2,690
3,020
1.3%
4
1,704.65
1,704.65

May 1, 2006

KDX Shinbashi
Building

a0221

128,140
10,67833.3%
15,445
3,659
3.53%△7,53776,72136,86732,316

69,184

4,086

299

4,516

6,980

7,897

10,76634,545

12,94090,789103,729

184days

96.5%
100.0%
100.0%
100.0%
97.0%
98.8%

2,533
1.1%
2,553
2,680
1.1%
25
4,391.37
4,238.85

August 1, 2005

194,390
16,19926.0%
13,811
4,133
3.55%

77,5988,568

65,00621,16086,166

1,218

254

1,574

9,656

3,461

14,03330,197

13,993102,369

116,363

184days

83.2%
100.0%
99.6%
100.0%
99.6%
-

2,520
1.1%
2,509
2,790
1.2%
18
4,810.89
4,003.51

May 1, 2006

KDX NakanoKDX ShinSakaue Building Yokohama Building※As of October 31, 2008

March 31, 2008 February 1, 2008

KDX Jimbocho
Building

Tokyo Metropolitan Area

a0451

Location

a0191

Office Buildings

a0181

Type

a0041

Earnings Performance for the Individual Properties for the 7th Fiscal Period (May 1, 2008 to October 31, 2008)：184days

a0481【Reference】

Price Information-44-

Ikejiri-Oohashi
Building

a0501

123,270
10,272

25.9%
15,7994,134
3.55%

81,857

4,402

68,882

17,377

86,260

2,710

173

877

8,533

7,539

10,25330,087

12,060104,287

116,347

184days100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

2,450
1.1%
2,498
3,260
1.4%
3
3,068.36
3,068.36

158,270
13,18918.3%
11,751
3,239
3.71%

27,89943,49363,434

7,958

71,393

1,959

157

165

6,267

-

7,412

15,961

15,276

72,07787,354184days100.0%
91.3%
-

2,400
1.1%
2,457
2,180
0.9%
8
2,449.11
2,449.11

August 1, 2005 February 1, 2008

Harajuku F.F.
Buildinga0061

a0141

a0611

a0551

a0331

Price Information

Lease Information

As of April 30, 2006

As of October 31, 2006

As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Income and Retained Earnings Information for the 7th Fiscal Period

Reference

Reference：Amount of yearly avg.

Estimated amount of 12 yrs after the acquisition \( Thousands)

Long-term repairs, maintenance and renovation

Reference： Percentage of rental and other operating revenues

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

Property tax for the year 2008 (or the year 2007) (\ Thousands)

Expense ratio （＝②／①）⑦ＮＣＦ （＝③-⑥） (\ Thousands)⑥Capital expenditures (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)④Depreciation (\ Thousands)③ＮＯＩ （＝①-②） (\ Thousands)

Trust fees and other expenses

Insurance

Repairs and maintenance costs

Utilities

Taxes

Property management fees

②Property-related expenses (\ Thousands)

Other operating revenues

Rental revenues①Rental and other operating revenues (\ Thousands)

Operating periods

Occupancy ratio

Leased floor area（㎡)Leasable floor area (㎡)Total of end tenants

Percentage of total appraisal value

Appraisal value at the end of period (\ Millions)

Net book value (\ Millions)

Percentage of total portfolio

Acquisition price (\ Millions)

Acquisition Date

Property Name

KDX Hamacho
Building

9,293

56,952

49,86916,376

21.4%
10,5853,071
3.65%

130,030
10,835

1,861

71,73921.8%
11,0333,423
3.64%

96,4508,037

66,24673,60062,652

3,648

2,065

10,947

889

5,364

5,262

160

-

141

7,942

7,418

5,511

162

18,204

66,04885,50218,00584,252

94,161

8,659

184days184days

20,561100.0%
100.0%-

133,950
11,162

25.8%
14,584
3,819
3.56%

72,193

7,515

41,90037,80879,708

1,605

200

1,619

7,421

7,118

9,754

27,721

12,056

95,372

107,429

184days100.0%
100.0%
100.0%
100.0%
65.3%
87.3%

February 1, 2008 March 16, 2006
2,310
2,300
1.0%
1.0%
2,370
2,350
2,140
3,010
0.9%
1.3%
7
8
2,245.69
3,102.43
2,245.69
3,102.43

KDX Hamacho
Nakanohashi
Building

100.0%
100.0%
85.8%
100.0%
100.0%
-

2,350
1.1%
2,397
2,550
1.1%
9
2,562.32
2,562.32

July 3, 2006

KDX Kajicho
Building

169,080
14,09028.6%
16,8133,200
3.50%

57,223

8,104

58,397

6,929

65,327

1,200

165

845

7,949

8,430

7,570

26,161

16,15775,331

91,489184days100.0%
100.0%
100.0%
-

2,300
1.0%
2,346
2,500
1.1%
9
2,447.80
2,447.80

June 1, 2007

KDX Shinjuku 286
Building

KDX Funabashi
Building

66,7705,564

21.6%
10,631
3,342
3.64%

70,862

1,096

60,997

10,96071,958

3,184

98

100

4,991

5,142

6,338

19,8558,135

83,677

91,813184days100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

2,270
1.0%
2,285
3,140
1.3%
5
1,823.64
1,823.64

173,340
14,44527.0%
16,806
3,881
3.53%

28,272

51,96962,522

17,71980,241

1,008

249

593

10,132

3,802

13,917

29,703

15,334

94,611

109,945

184days

98.4%
100.0%
100.0%
100.0%
97.9%
91.9%

2,252
1.0%
2,488
2,390
1.0%
17
3,885.53
3,822.53

August 1, 2005 March 1, 2006

FIK Minami
Aoyamaa0571

81,7106,809

13.9%
15,411988
3.80%

22,412-

21,191

1,220

22,412

32

34

80

1,622

-

1,855

3,624

4,193

21,843

26,037

61days100.0%
-

2,200
1.0%
2,259
2,240
0.9%
8
1,953.50
1,953.50

98,710
8,225

43.4%
9,319
2,094
3.20%

64,400
5,366

22.6%
5,697
2,619
3.62%

4,725
51,277

48,27548,601

7,400

56,002

1,597

86

676

4,685

3,155

6,149

16,3499,363

62,98772,351184days100.0%
89.7%
100.0%
100.0%
-

2,000
0.9%
2,149
2,010
0.8%
4
1,792.54
1,792.54△11,20230,776

6,295

37,072

16,278

113

366

5,535

-

6,180

28,474

11,63053,91665,546

184days80.9%
100.0%
-

2,110
1.0%
2,185
2,060
0.9%
5
1,949.62
1,577.40

a0081

55,230
4,602

17.1%
8,052
1,829
3.73%

35,3085,310

30,855

9,762

40,618

1

85

220

2,947

-

5,133

8,387

5,315

43,69049,005184days85.7%
100.0%
-

1,951
0.9%
2,036
1,870
0.8%
6
1,651.72
1,415.76

58,870
4,905

25.6%
8,509
2,570
3.56%

52,3881,350

37,82815,91053,738

830

103

951

5,590

4,274

6,718

18,4696,299

65,90872,208184days100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

1,950
0.9%
1,882
2,030
0.9%
8
1,945.55
1,945.55

August 1, 2005

Kanda Kihara
Building※As of October 31, 2008

KDX
Shin-toshin
KDX Okachimachi KDX Gobancho
Hamamatsucho
Maruzen Building
Building
Building
Dai-2 Building
September 1, 2008 February 29, 2008 March 1, 2007 March 31, 2008

Tokyo Metropolitan Area

a0071

Location

a0411

Office Buildings

a0151

Type

a0511

Earnings Performance for the Individual Properties for the 7th Fiscal Period (May 1, 2008 to October 31, 2008)：184days

a0271【Reference】-45-

106,330
8,860

24.0%
12,315
3,535
3.59%

71,717

3,081

65,9008,897

74,798

808

147

436

6,249

6,168

9,835

23,645

9,669

88,77498,444184days100.0%
100.0%
100.0%
100.0%
100.0%
-

1,950
0.9%
1,972
2,440
1.0%
3
2,536.53
2,536.53

May 1, 2006

KDX Yotsuya
Building

a0231

19,680
1,640

35.1%
1,133
1,806
3.36%

30,8903,938

21,81713,011

34,82912,816

74

36

2,135

-

3,810

18,873

2,741

50,96053,702184days

92.7%
-

1,864
0.8%
1,882
1,810
0.8%
8
1,524.68
1,413.96

May 1, 2008

KDX Iwamoto-cho
Building

a0591

110,680
9,223

23.0%
11,531
2,707
3.61%

57,706-

43,95813,74857,706

613

113

1,028

4,055

5,784

5,639

17,234

5,912

69,02874,940184days100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

1,610
0.7%
1,608
2,140
0.9%
1
2,105.18
2,105.18

August 1, 2005

KDX ShinjukuGyoen Building

a0091

a0101a0121

Price Information

Lease Information

As of April 30, 2006

As of October 31, 2006

As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Income and Retained Earnings Information for the 7th Fiscal Period

Reference

Reference：Amount of yearly avg.

Estimated amount of 12 yrs after the acquisition \( Thousands)

Long-term repairs, maintenance and renovation

Reference： Percentage of rental and other operating revenues

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

Property tax for the year 2008 (or the year 2007) (\ Thousands)

Expense ratio （＝②／①）⑦ＮＣＦ （＝③-⑥） (\ Thousands)⑥Capital expenditures (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)④Depreciation (\ Thousands)③ＮＯＩ （＝①-②） (\ Thousands)

Trust fees and other expenses

Insurance

Repairs and maintenance costs

Utilities

Taxes

Property management fees

②Property-related expenses (\ Thousands)

Other operating revenues

Rental revenues①Rental and other operating revenues (\ Thousands)

Operating periods

Occupancy ratio

Leased floor area（㎡)Leasable floor area (㎡)Total of end tenants

Percentage of total appraisal value

Appraisal value at the end of period (\ Millions)

Net book value (\ Millions)

Percentage of total portfolio

Acquisition price (\ Millions)

Acquisition Date

KDX Hon-Atsugi
Building

KDX Hachioji
Building

30,302

21,40469,950
5,829

8,723

21,75485,8507,154

39,02643,158

29.8%
8,570
1,934
3.48%

436

1,551

30.6%
9,707
2,150
3.46%

96

128

7,799

2,416

1,490

31,226

4,048

4,920

66,055

4,412

4,938

△22,896

5,134

6,030

49,76654,718

5,805

55,571

62,21816,544184days184days

7,499

100.0%
100.0%
100.0%
100.0%-

100.0%
88.0%
100.0%
100.0%
69.1%-

19,059

1,500
0.7%
1,564
1,540
0.6%
9
1,605.72
1,605.72

61,470
5,122

29.1%
6,676
1,896
3.49%

25,551

13,01629,3599,207

38,567

114

123

1,442

5,485

3,157

5,470

15,794

8,377

45,98454,361184days100.0%
100.0%
84.4%
100.0%
-

1,400
0.6%
1,462
1,430
0.6%
5
2,012.22
2,012.22

46,140
3,845

22.2%
5,114
1,375
3.63%

25,2394,270

25,254

4,254

29,509

919

74

678

2,746

-

3,984

8,402

3,080

34,831

37,912184days100.0%
86.9%
-

1,380
0.6%
1,400
1,160
0.5%
8
1,339.46
1,339.46

141,590
11,799

29.3%
7,736
2,304
3.50%

34,698

11,893

22,94523,646

46,591

1,386

172

1,667

5,257

4,018

6,767

19,2708,376

57,48665,862184days88.6%
100.0%
100.0%
100.0%
-

1,305
0.6%
1,310
1,220
0.5%
8
2,747.27
2,434.43

109,860
9,155

43.5%
7,956
1,487
3.19%

26,302-

16,3089,994

26,302

1,001

118

786

4,183

4,110

10,05920,2597,248

39,313

46,562184days

85.6%
85.6%
85.6%
96.4%
-

1,155
0.5%
1,341
1,010
0.4%
6
2,179.88
1,866.07

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

1,580
0.7%
1,672
1,800
0.8%
7
2,448.97
2,448.97

June 20, 2006

KDX Kanda
Misaki-cho
Building

43.6%
6,610
1,270
3.19%
43,5503,629

50,8704,239

22,444-

12,622

9,822

22,444

1,682

87

3,305

4,919

3,331

4,018

17,345

5,411

34,37839,790184days100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

704
0.3%
676
795
0.3%
4
1,594.18
1,594.18

a0421

a0531

Portus Center
Building

343,420
28,61841.1%
52,195
10,863
3.24%

196,369

950

92,874

104,445

197,319

1,245

2,516

4,796

25,47026,151

77,492

137,673

65,980269,012334,993

184days100.0%
100.0%
94.6%
97.1%
100.0%
100.0%

5,570
2.5%
5,147
5,500
2.3%
30
11,569.19
11,569.19

229,180
19,09827.2%
38,842
7,777
3.54%

29,079130,574

132,858

26,795

159,654

3,716

497

1,848

20,952

9,720

23,042

59,77836,322

183,109219,432

184days

98.1%
98.6%
100.0%
-

5,400
2.4%
5,541
5,820
2.5%
28
7,778.43
7,628.18

June 1, 2007

Karasuma Building

Other Regional Areas
Sakae 4-chome
Office Building(Tentative Name)

a0581

140,450
11,704

21.5%
18,9227,539
3.65%

136,647

25,596130,264

31,979162,244

966

549

811

23,24515

18,891

44,48027,360179,363

206,724184days

95.4%
95.4%
-

-

0.0%
8,979
-

49,995-49,995-49,995

-

2

-

-

-

-

2

-

49,99849,998184days-February 1, 2008 April 25, 2008
4,900
4,000
2.2%
1.8%
4,938
4,165
4,720
4,180
2.0%
1.8%
43
10,187.70
9,723.97-

KDX HakataMinami Building※As of October 31, 2008

August 1, 2005 September 21, 2005

KDX Koishikawa
Building

29.8%
6,320
1,460
3.47%

28,421

1,083

23,495

6,009

29,504

74

74

570

4,440

3,160

4,220

12,5405,949

36,09542,045184days100.0%
100.0%
87.7%
100.0%
100.0%
-

1,065
0.5%
1,134
1,060
0.4%
4
1,236.39
1,236.39

July 14, 2006

KDX Nogizaka
Building

Property Name

a0281

KDX NishiKDX MonzenKDX Kiba Building
Shinjuku Building Nakacho Building

a0351Tokyo Metropolitan Area

a0341

Location

a0521

Office Buildings

a0311

Type

a0381

Earnings Performance for the Individual Properties for the 7th Fiscal Period (May 1, 2008 to October 31, 2008)：184days

a0261【Reference】-46-

158,710
13,22526.1%
13,2004,114
3.65%

66,97916,28070,392

12,866

83,259

1,438

277

2,874

8,977

3,294

12,47429,336

11,384

101,211

112,596184days100.0%
100.0%
100.0%
-

2,350
1.1%
2,441
2,200
0.9%
33
4,934.53
4,934.53

June 1, 2007

KDX Hakata
Building

a0431

167,760
13,98032.1%
10,402
3,071
3.48%

20,12539,881

41,21818,78860,007

6,048

209

2,199

11,739-8,165

28,363

20,394

67,97588,370184days

88.1%
88.1%
-

February 1, 2008
2,220
1.0%
2,256
2,020
0.9%
9
3,993.00
3,516.40

KDX Kitahama
Building

a0541

b0051b0341

Price Information

Lease Information

As of April 30, 2006

As of October 31, 2006

As of October 31, 2008
As of April 30, 2008
As of October 31, 2007
As of April 30, 2007

Income and Retained Earnings Information for the 7th Fiscal Period

Reference

Reference：Amount of yearly avg.

Estimated amount of 12 yrs after the acquisition \( Thousands)

Long-term repairs, maintenance and renovation

Reference： Percentage of rental and other operating revenues

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

Property tax for the year 2008 (or the year 2007) (\ Thousands)

Expense ratio （＝②／①）⑦ＮＣＦ （＝③-⑥） (\ Thousands)⑥Capital expenditures (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)④Depreciation (\ Thousands)③ＮＯＩ （＝①-②） (\ Thousands)

Trust fees and other expenses

Insurance

Repairs and maintenance costs

Utilities

Taxes

Property management fees

②Property-related expenses (\ Thousands)

Other operating revenues

Rental revenues①Rental and other operating revenues (\ Thousands)

Operating periods

Occupancy ratio

Leased floor area（㎡)Leasable floor area (㎡)Total of end tenants

Percentage of total appraisal value

Appraisal value at the end of period (\ Millions)

Net book value (\ Millions)

Percentage of total portfolio

Acquisition price (\ Millions)

Acquisition Date

Property Name

49,067

15,041

21,145

7,273

3,466

7,756

1,045

83,064

12,34041,392

12,901

7,176

7,295

11,012

42,12818,0852,030

40,93333.0%
13,6092,185
3.41%

139,600
11,63337,15751,055

2,957

43.4%
14,3003,518
3.69%

192,400
16,033

104,160
8,680

30.8%
11,3232,102
3.45%

12,73229,39642,96324,87854,012

42,128

1,362

169

2,041

6,277

2,862

6,066

18,77916,48644,42160,907

184days

91.2%
94.1%
93.6%
93.6%
90.0%
-

1,560
0.7%
1,478
1,570
0.7%
22
2,699.27
2,461.82

May 1, 2006

KDX Minami
Semba Dai-2
Building

16,855

190

64,10895,405

1,412

184days184days

246

91.6%
87.2%
100.0%
100.0%
100.0%
-

86.2%
93.7%
97.1%
-

2,759

1,610
0.7%
1,559
1,540
0.6%
9
3,108.18
2,847.25

May 1, 2006

June 1, 2007

2,100
0.9%
2,218
1,910
0.8%
24
3,955.02
3,409.95

KDX Minami
Semba Dai-1
Building

KDX Sendai
Building

249,590
20,799126,753
10,562

18.7%
7,765
5,354
3.20%

136,212△16,70849.1%
16,813
1,767
3.08%

-

90,69045,522

136,212

1,417

484

2,824

1,561

7,746

17,34031,37320,703

146,882

167,586

184days100.0%
100.0%
100.0%
100.0%
100.0%
-

5,353
2.4%
5,292
4,970
2.1%
1
7,711.14
7,711.14

May 1, 2006

Residence
Charmante
Tsukishima

45,92918,221

10,99829,220

2,833

291

2,292

5,451

4,214

13,06728,151

7,652

49,71957,371184days

76.2%
61.0%
71.2%
83.9%
-

1,305
0.6%
1,489
971
0.4%
25
4,085.26
3,112.92

March 1, 2007

KDX Niigata
Building

Apartments
Motoazabu

Apartments
WakamatsuKawada

44,180
3,681

22.6%
6,201
1,613
3.62%

34,503-23,282

11,22034,503

2,415

116

598

771

3,101

3,056

10,0584,165

40,39644,561184days100.0%
95.1%
100.0%
95.0%
100.0%
85.1%

1,250
0.6%
1,236
1,110
0.5%
20
2,046.79
2,046.79

23,570
1,964

20.3%
1,503
1,361
3.67%

29,590-22,9396,651

29,590

1,679

74

745

542

1,651

2,852

7,545

1,384

35,75137,136

184days

94.6%
90.5%
97.4%
91.7%
94.6%
97.1%

1,210
0.5%
1,213
1,250
0.5%
21
1,350.74
1,277.15

27,500
2,291

20.2%
1,060
1,413
3.67%

30,724-

19,187

11,53730,724

1,957

78

1,075

388

1,420

2,877

7,798

4,035

34,48738,522184days100.0%
92.0%
94.6%
97.8%
96.3%
97.8%

1,180
0.5%
1,163
1,200
0.5%
33
1,607.43
1,607.43

b0251

b0181

Gradito Kawaguchi

24,690
2,057

18.0%
949
1,224
3.71%

27,030-17,003

10,02627,030

826

74

499

398

1,701

2,438

5,937

151

32,81732,968184days100.0%
100.0%
100.0%
100.0%
100.0%
-

1,038
0.5%
1,064
1,030
0.4%
2
1,619.34
1,619.34

22,120
1,843

16.6%
756
1,078
3.74%

24,029-14,597

9,431

24,029

1,452

62

303

372

408

2,179

4,778

1,976

26,83228,808184days100.0%
95.4%
90.7%
91.6%
100.0%
-

878
0.4%
874
870
0.4%
41
1,377.87
1,377.87

May 1, 2006

Court ShinOkachimachi

c0021

Central Urban Retail Properties

c0011

KDX Yoyogi
Building

247,200
20,60042.7%
17,6593,247
3.68%

50,571-

27,59822,97350,5716,805

512

10,972

2,067

8,576

8,797

37,7299,412

78,88988,301184days

88.7%
93.0%
94.4%
98.7%
84.6%
82.7%

1,800
0.8%
1,898
1,660
0.7%
99
12,829.64
11,383.55

53,8904,490

20.2%
31,599
11,1703.72%

239,064300

182,625

56,739239,364

1,813

282

3,900

19,113

15,47520,02960,61327,228272,749

299,978

184days

97.9%
97.9%
100.0%
91.7%
100.0%
100.0%

9,900
4.5%
10,12811,8005.0%
144,655.71
4,558.23

43,450
3,620

23.1%
7,598
2,518
3.61%

49,456

4,170

39,107

14,51853,626

1,218

74

1,558

4,757

4,087

4,446

16,142

8,948

60,82069,768184days

91.7%
100.0%
100.0%
100.0%
100.0%
87.1%

2,479
1.1%
2,550
2,410
1.0%
9
1,175.38
1,078.26

December 8, 2005 August 1, 2005 September 30, 2005

Venus Hibarigaoka Frame Jinnan-zaka

Other Regional
Tokyo Metropolitan Area
Areas

※As of October 31, 2008

August 1, 2005 August 1, 2005 August 1, 2005 June 30, 2006

Court Mejiro

Tokyo Metropolitan Areab0041

Other Regional Areasb0031

Location

b0191
Residential Properties

a0361

Office Buildings

a0251

Type

a0241

Earnings Performance for the Individual Properties for the 7th Fiscal Period (May 1, 2008 to October 31, 2008)：184days

a0441【Reference】-47-

9,246,359
770,52927.5%
1,107,419
284,769
3.52%

4,756,633

1,105,668

4,431,039

1,431,262

5,862,302

217,480

16,898

187,430

608,525

402,944785,415

2,218,695

1,040,542

7,040,454

8,080,997

180days

95.6%
95.9%
96.9%
95.9%
95.3%
94.9%

222,053
100.0%
225,795
237,406
100.0%
870
256,214.30
244,966.47

Total of 69
Properties69

c0031

Lease Information

As of April 30, 2006

As of October 31, 2006

As of April 30, 2007

As of October 31, 2007

As of April 30, 2008

As of October 31, 2008

Income and Retained Earnings Information for the 6th Fiscal Period

Reference

Reference：Amount of yearly avg.

Estimated amount of 12 yrs after the acquisition \( Thousands)

Long-term repairs, maintenance and renovation

Reference： Percentage of rental and other operating revenues

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

Property tax for the year 2008 (or the year 2007) (\ Thousands)

Expense ratio （＝②／①）⑦ＮＣＦ （＝③-⑥） (\ Thousands)⑥Capital expenditures (\ Thousands)⑤Rental operating income（＝③-④） (\ Thousands)④Depreciation (\ Thousands)③ＮＯＩ （＝①-②） (\ Thousands)

Trust fees and other expenses

Insurance

Repairs and maintenance costs

Utilities

Taxes

Property management fees

②Property-related expenses (\ Thousands)

Other operating revenues

Rental revenues①Rental and other operating revenues (\ Thousands)

Operating periods

Occupancy ratio

Leased floor area（㎡)Leasable floor area (㎡)Total of end tenantsProfit on sale of real estate (\ Millions)Appraisal value at the end of period (\ Millions)

Net book value (\ Millions)

Percentage of total portfolio

1,326
1,295
31
31,073
3,285
27,78831,073
4.1%
1,295
4.00%
-

13,430

5,365

3,493

3,195

970

105

299

29,688

10,71818,969-29,688

31.1%

1,485

3.45%

-

-

-

-

3.68%

-

-

3.53%

287,550

-

2,781

27.4%

-

4,817,395

1,105,668

4,477,797

1,445,266

5,923,064

217,780

17,035

188,400

611,721406,438

792,076

2,233,452

1,045,424

7,111,092

8,156,516

177days

-

-

-

-

-

-

-

-

-

19.5%

60,761-46,757

14,00460,761

299

137

970

3,195

3,493

6,661

14,757

4,881

70,63775,51965days

-

-

-

-

299

5,100

5,578

100.0%

5,110

Total of 71
Total of 2 sold properties
Properties including soldproperties

Note: The Investment Corporation has sold Hakata Ekimae Dai-2 Building on July 30, 2008,and ZARA Tenjin Nishi-dori on June 25, 2008.

-

100.0%
100.0%
100.0%
100.0%
-

99.3%
94.4%
95.8%
99.2%
96.7%

32,400

-

-

4,881

-

-

38,237--55days292

732,400

3,665

1,434

90days

4,108

1,470

43,119

3,680
72.0%

28.0%

May 1, 2006

August 1, 2005

Acquisition Date

1,430

ZARA Tenjin Nishi-doriHakata Ekimae Dai-2 Building

Other Regional Areas

LocationCentral Urban Retail
Property （sold）

Property Name

Office Building (sold）

Acquisition price (\ Millions)71

Earnings Performance for the Individual Properties for the 7th Fiscal Period (May 1, 2008 to October 31, 2008)：184days

a0111

Type

【Reference】

Price Information-48-※As of October 31, 2008

(Reference)Borrowings
Borrowings on a financial institution basis as of October 31, 2008 are as follows.
ClassificationLenderDrawndown Date

Short-Term Payable
Current Potion of Long-Term Payable

Aozora Bank, Ltd.
July 31, 2007
The Chuo Mitsui Trust and Banking Co., Ltd.
September 20, 2007
Mitsubishi UFJ Trust and Banking Corporation
October 31, 2007
The Chuo Mitsui Trust and Banking Co., Ltd.
January 10, 2008
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
February 29, 2008
Citibank Japan, Ltd.
May 1, 2008
Citibank Japan, Ltd.
October 31, 2008
Mitsubishi UFJ Trust and Banking Corporation
October 31, 2008
Sub Total
Mitsubishi UFJ Trust and Banking Corporation
The Norinchukin BankThe Chiba Bank, Ltd.
August 1, 2005
The Chuo Mitsui Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Ltd.
The Norinchukin Bank
November 1, 2005
Resona Bank, Ltd.
Aozora Bank, Ltd.
December 8, 2005
Resona Bank, Ltd.
The Chiba Bank, Ltd.
March 1, 2006
Aozora Bank, Ltd.
Mitsui Sumitomo Insurance Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
March 16, 2006
Aozora Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
May 1, 2006
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
Sumitomo Mitsui Banking Corporation(Note 3) October 31, 2007
Sumitomo Mitsui Banking Corporation(Note 3)
April 25, 2008
Aozora Bank, Ltd.
(Note 3)Long-Term Payable

The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Note 3)
Sub Total
The Chuo Mitsui Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
August 1, 2005
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
Aozora Bank, Ltd.
May 1, 2006
Mitsui Sumitomo Insurance Co., Ltd.
Development Bank of Japan Inc.
(Note 4)
July 14, 2006
Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.
(Note 4) September 1, 2006
The Norinchukin Bank
December 1, 2006
Sumitomo Mitsui Banking Corporation
April 2, 2007
The Chuo Mitsui Trust and Banking Co., Ltd.
The Norinchukin Bank
April 17, 2007
Sumitomo Mitsui Banking Corporation
January 10, 2008
Aozora Bank, Ltd.
February 29, 2008
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
March 31, 2008
The Chuo Mitsui Trust and Banking Co., Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
May 1, 2008
Aozora Bank, Ltd.
June 30, 2008
Resona Bank, Ltd.
Development Bank of Japan Inc.
(Note 4)
Aozora Bank, Ltd.
July 15, 2008
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
July 31, 2008
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Chuo Mitsui Trust and Banking Co., Ltd.
Resona Bank, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
September 1, 2008
The Chuo Mitsui Trust and Banking Co., Ltd.
September 22, 2008
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
September 30, 2008
Resona Bank, Ltd.
October 31, 2008
Sub Total
Total
Notes:

Balance atBalance at Average
the End of
Payment
the End of Interest
Repayment Date
Usage
Remarks
Previous
PeriodRate
MethodPeriod(\Millions) (Note 1)(\Millions)
2,000
1.117
July 31, 2008
1,250
1.075 September 20, 2008
1,000
1.096 October 31, 2008
1,000
1,000
1.146 January 10, 2009 Full on
Unsecured/(Note 2)
Unguaranteed
500
500
1.198 February 28, 2009 maturity
1,000
1.196 November 1, 2008
1,500
1.236 October 30, 2009
1,000
1.518 October 31, 2009
5,750
5,000
2,700
2,500
1,200
July 31, 2008
0.869
1,000
1,000
800
300
3,000
1.090 October 31, 2008
500
1,500
1,500
1.098 December 7, 2008
500
500
800
800
Unsecured/
Full on(Note 2)
Unguaranteed
1.449 February 28, 2009 maturity
500
500
700
700
2,500
2,500
1.476 March 16, 2009
2,000
2,000
1,500
1,500
1.629 April 30, 2009
1,000
1,000
1,000
1,000
1,000
1,000
2,000
2,000
1.339 October 31, 2009
1,000
1,000
1.563
October 25, 2009
1,500
1,500
1.463
1,500
1,500
32,00019,000
3,750
3,750
3,750
3,750
1.288
July 31, 2010
1,500
1,500
500
500
1,500
1,500
2.199 April 30, 2011
1,000
1,000
5,000
5,000
2.731 April 30, 2016
1,000
1,000
2.149
July 13, 2011
3,000
3,000
2.124 August 31, 2013
2,500
2,500
1.964 November 30, 2011
2,000
2,000
1.574
April 2, 2010
2,000
2,000
1.875
April 2, 2012
1,500
1,500
1.646 April 16, 2011
2,500
2,500
1.503 January 10, 2012
2,000
2,000
1.366 February 28, 2011
1,500
1,500
1.429 August 31, 2011
3,000
3,000
1.609
September 30, 2011 Full on
Unsecured/
2,000
2,000
1.559
(Note 2)maturity
Unguaranteed
1,000
1.905 November 1, 2011
1,000
1.987 February 28, 2011
1,500
2.150
June 30, 2012
3,000
2.263 December 28, 2012
2,000
1.867 March 31, 2011
1,200
1.681 January 31, 2010
1,300
1,300
1.870 January 31, 2011
1,400
800
2,200
July 31, 2011
1.992
1,000
300
1,000
1.775 September 1, 2011
1,250
1.713 March 22, 2011
2,000
1.818 March 31, 2011500
1.565 October 31, 2010
40,00062,75077,75086,7501. 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 of minimizing 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. Borrowings listed in the current potion of long-term payable were listed in long-term payable in the previous fiscal period.
4. Development Bank of Japan has changed the company name to Development Bank of Japan Inc. on October 1, 2008, due to the privatization of the company.
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