December 19, 2013

Summary of Earnings Results for the
Fifteenth Fiscal Period(From May 1, 2013 to October 31, 2013)
Top REIT, Inc. (listed on the Tokyo Stock Exchange with securities code 8982) hereby announces its earnings
results for the fiscal period ended October 31, 2013 (fifteenth fiscal period).

1. Earnings Results for the Fifteenth Fiscal Period
Fifteenth Fiscal Period: From May 1, 2013 to October 31, 2013
Fourteenth Fiscal Period: From November 1, 2012 to April 30, 2013
(1) Business Results

FifteenthFiscal Period
Fourteenth
Fiscal Period

FifteenthFiscal Period
Fourteenth
Fiscal Period

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,154mn(11.8%)¥2,172mn(11.2%)¥1,580mn(13.3%)¥5,844mn

3.7%¥2,447mn(9.3%)¥1,823mn(8.9%)Net
IncomePeriod-on-Period
ChangeNet
Incomeper Unit¥1,579mn(13.3%)¥10,191

1.9%

0.8%

30.7%

¥1,822mn(8.9%)¥11,759

2.2%

1.0%

31.2%

Ratio ofRatio ofRatio ofNet Income to
Ordinary Income to Ordinary Income toUnitholders’
Total Assets
Operating Revenue
Equity(Note) Net income per unit is rounded to the nearest yen.

(2) Dividends
Dividend
per Unit

Total Amount of
Dividends(excluding dividend inexcess of earnings)

FifteenthFiscal Period
Fourteenth
Fiscal Period

Dividend in
Excess ofEarnings
per Unit

Total Amount of
Dividends in
Excess ofEarnings

Dividend
Payout Ratio

Ratio of
Dividends to
Net Assets¥10,191¥1,579mn¥0¥–mn

100.0%

1.9%¥11,759¥1,822mn¥0¥–mn

100.0%

2.2%(3) Financial Position

FifteenthFiscal Period
Fourteenth
Fiscal Period

Total Assets

Net Assets

Ratio of
Unitholders’ Equity to
Total Assets

Net Assets per Unit

¥186,169mn¥83,871mn

45.1%¥541,105¥187,003mn¥84,127mn

45.0%¥542,758(Note) Net assets per unit is rounded to the nearest yen.

1(4) Cash Flows

FifteenthFiscal Period
Fourteenth
Fiscal Period

Net Cash
Provided by (Used in)Operating Activities

Net Cash
Provided by (Used in)Investing Activities

Net Cash
Provided by (Used in)
Financing Activities

Cash and
Cash Equivalents
at End of Period¥2,735mn(¥703mn)(¥1,890mn)¥4,842mn¥2,470mn(¥1,775mn)(¥2,838mn)¥4,700mn

2. Earnings Forecast Results for the Sixteenth Fiscal Period
Sixteenth Fiscal Period : From November 1, 2013 to April 30, 2014
SixteenthFiscal Period

SixteenthFiscal Period

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,586mn

8.4%¥2,466mn

13.5%¥1,840mn

16.4%

Net
IncomePeriod-on-Period
Change(excluding dividend in excess of earnings)

Dividend in Excess of Earnings
per Unit¥1,839mn

16.4%¥10,450¥0Dividend per Unit

(Reference) Estimated net income per unit for the sixteenth fiscal period: ¥10,450

3. Others(1) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements of Revisions
a. Changes in accounting policies due to amended accounting standards: No
b. Changes in accounting policies due to other factors from a. above:Noc. Changes in accounting estimates:
Nod. Restatements of revisions:No(2) Number of Investment Units Issued and Outstanding
a. Number of investment units (including own investment units) issued and outstanding at end of fiscal period
Fifteenth Fiscal Period:
155,000 units
Fourteenth Fiscal Period:
155,000 units
b. Number of own investment units issued and outstanding at end of fiscal period
Fifteenth Fiscal Period:
0 units
Fourteenth Fiscal Period:
0 units* Statement on Implementation Status of Audit Procedure
This Summary of Earnings Results (“Kessan Tanshin” in Japanese) report is outside the scope of theauditing procedure under the Financial Instruments and Exchange Act. As of the publication of this report,
no auditing procedure under the Financial Instruments and Exchange Act has been completed for theearnings results.
* Explanation on the Appropriate Use of Earnings Forecasts, and Other Matters of Special Note
The earnings forecasts and other forward-looking statements contained in this document are based on
information currently available to and certain assumptions deemed reasonable by Top REIT. Accordingly,
the actual results may differ materially due to a variety of factors. Moreover, the forecasts should not be
construed as a guarantee of the dividend amount.
This summary of earnings results is translated from the Japanese “Kessan Tanshin” report, dated December 19,
2013, which is prepared in accordance with generally accepted accounting principles in Japan and Japaneselaw.
Unless otherwise stated, fractions less than the specified unit are rounded down to the nearest specified unit formonetary amounts and rounded to the nearest specified unit for percentage figures.
24. Asset Management Performance
A. Brief Background of Top REIT
Top REIT, Inc. (Top REIT) was founded on November 2, 2005 based on the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951, as amended) with Top REIT Asset Management Co., Ltd.
(Asset Manager) as the incorporator, and listed on the Real Estate Investment Trust Section of the Tokyo
Stock Exchange (TSE) (Securities Code: 8982) on March 1, 2006 with the number of investment units issued
and outstanding totaling 145,500 units. Later, Top REIT issued additional investment units (9,500 units)
through a third-party allotment on March 23, 2006. As of the end of the fifteenth fiscal period (October 31,2013), the total number of investment units issued and outstanding stands at 155,000 units.
Top REIT works to conduct management with the aim of maximizing the investment value for its unitholders
by securing stable revenues over the medium to long term and achieving steady growth of its portfolio. To doso, Top REIT focuses on the two strategies of “skilled management of a diversified portfolio” and “optimal
application of the sponsors’ strengths.” As of the end of the fifteenth fiscal period, its portfolio consists of 19
properties with a total acquisition value of ¥185,555 million.
B. Investment Environment and Management Performance<Investment Environment>(a)Economy in General
With regard to the Japanese economy, following the new government taking office at the end of 2012,
drastic monetary easing and the dynamic public spending package under so called “Abenomics” effectively
brought about improvement in corporate performances in association with an increase in government
investment as well as an expansion in exports backed by the depreciating yen. The resulting improvement
in consumers’ sentiment also kept personal consumption strong.
As a result of the recovery in business sentiment and monetary easing by the Bank of Japan, the J-REIT
market saw an increase in property acquisitions, given an improved environment for fund procurement
through equity financing, among other factors.
(b)Real Estate Leasing Market[Office Buildings]
With expectations for economic growth increasing, proactive office demand has generated tenant
movement for leasing more floor areas within the same property and relocating for expanded spaces, whileconsiderations for disaster prevention have encouraged movement for relocating to office buildings
incorporating anti-disaster measures. Thus the vacancy rate of office buildings in central Tokyo shows adownward trend especially for blue-chip properties. As for the rent levels, though no definite trend forrecovery is yet to be seen at present, they are believed to take an upward turn in accordance with a progressin the recovery of the business sentiment and improvement of the employment environment.
[Retail Properties]
According to the Consumer Confidence Survey September 2013 by the Cabinet Office, the consumer
confidence index (seasonally adjusted) of general households was 45.4, up 2.4 points month-on-month.
Presumably this is a reflection of the fact that recovery in corporate performance and expectations forrecovery in employment conditions, etc., under Abenomics has led to better consumer sentiment.
Meanwhile, retail companies are working on strategies to address such environmental changes as the
anticipated decrease in population on the macro level and the expansion of the E-commerce market on the
micro level. Accordingly, demand for retail properties will become more selective.
[Residential Properties]
In the residential properties leasing market, the occupancy rate remains at a high level in the Tokyo
metropolitan area, primarily for rental apartments that meet demand, given the population inflow as well as3

an increase in single-person households and small households. As for rent levels, rents have remained stablefor properties with actual consumer demand and are anticipated to stay strong, while the unit rent for highrent properties has probably come to stop decreasing.
(c) Real Estate Transaction Market
Property acquisitions by J-REITs became active against the backdrop of the favorable environment forfund procurement through equity financing, driving the real estate transaction market. In addition to
fundraising by J-REITs continuing in the future, foreign capital is anticipated to flow in, helping to further
activate the real estate transaction market. On the other hand, market prices appear to be somewhat
overheated for all property types, which will cause to further strengthen buyers’ attitude of being selective
for properties.
<Asset Management Performance >(a)Acquisition and Disposition of Assets
Top REIT began the fifteenth fiscal period with 19 properties (total acquisition value: ¥185,555 million).
With an aim to acquire highly-competitive and highly-profitable properties, Top REIT considered possible
acquisition of properties through not only the “optimal application of the sponsors’ strengths” but also by
utilizing established information channels to collect and carefully select from property sale information,with excellent office buildings located in central Tokyo at the core, as well as other asset classes, bydrawing on the characteristics of being a diversified REIT.
Furthermore, after the account was settled for the fifteenth fiscal period, Top REIT concluded property
sales agreements for three properties (Ginza Oji Building, Shinjuku EAST Building and Kojima×Bic
Camera Kashiwa Store) as of November 7, 2013 and completed their acquisition as of November 28, 2013.
In order to partly fund the acquisition of these three properties, and also fund the acquisition of specified
assets or the repayment of loans in the future, Top REIT resolved the issuance of new investment units
through public offering and third-party allotment at its board of directors meetings held on November 7 andNovember 18, 2013. Payment for the new investment units was completed on November 25 and December
13, 2013, respectively. Moreover, Top REIT conducted new borrowings as of November 28, 2013 to partly
fund the acquisition.
(b)Management and Maintenance of Portfolio Assets
The basic asset management strategy of Top REIT is sustaining and increasing revenue over the medium tolong term by maintaining and improving tenant satisfaction (the “Tenants First” policy) and keeping
operational management costs at an appropriate level. Top REIT strived to improve tenant satisfaction andmaintain and improve high occupancy rates while sustaining trusted relationships with tenants anddiscerning tenant needs via property management companies.
Particularly in the fifteenth fiscal period, positioning solicitation of successor tenants to Harumi Island
Triton Square Office Tower Y as a top priority issue, Top REIT focused on tenant solicitation activities. As
a result, the occupancy rate increased to 68.9% by the end of October 2013. Top REIT continues to pursue
further increase of occupancy rate for portfolio as a whole, including Harumi Island Triton Square OfficeTower Y.
Regarding maintenance, Top REIT followed up on ensuring that it had an appropriate grasp of theoperational management conditions and steady implementation of asset management plans for each
property. Top REIT also carried out renewal construction and repair work that contributed to enhancing thecompetitiveness of properties and maintaining and improving the functionality of properties based on asset
management plans, took steps to keep relevant costs at an appropriate level, and conducted efficientmanagement of resources.
C. Procurement of Funds
Top REIT procures funds under a financial policy based on stable financial management. In the fifteenthfiscal period, Top REIT conducted no fund procurement or repayment of borrowings except for agreed4

upon repayment, as it had no property acquisitions or no borrowings that became due for repayment during
the period.
As a result, at the end of the fifteenth fiscal period, the total amount of interest-bearing liabilities stands at
95,997 million (¥87,497 million in long-term loans (including the current portion) and ¥8,500 million in
investment corporation bonds), and the ratio of interest-bearing liabilities to total assets is 51.6%. Moreover,
the ratio of long-term interest-bearing liabilities (including the current portion) is 100%, while interestbearing liabilities with fixed interest rates account for 44.0%.
The credit ratings of Top REIT as of October 31, 2013 are as follows:
Credit Rating Agency
Rating [Outlook]
Issuer rating: Baa1 [Negative]
Moody’s Japan K.K.
Senior unsecured long-term rating (No. 1 Unsecured(Moody’s)
Investment Corporation Bonds): Baa1 [Negative]
Issuer rating: A+ [Stable]
Rating and Investment Information, Inc.
Unsecured investment corporation bond rating (No. 1(R&I)
Unsecured Investment Corporation Bonds): A+
Moreover, Top REIT conducted shelf registration for investment corporation bonds, as indicated below, inorder to secure flexible procurement of long-term funds.
[Overview of Shelf Registration]
Object of Shelf Registration
Investment corporation bonds(excluding short-term corporation bonds)

Amount to be Issued

Scheduled Period of Issue¥100,000 million

From May 20, 2012 to May 19, 2014

D. Business Results and Dividends
As a result of the asset management and operations described above, Top REIT recorded asset management
performance during the fifteenth fiscal period of ¥5,154 million in operating revenue, ¥2,172 million in
operating income and ¥1,580 million in ordinary income after deducting expenses concerning borrowings,
etc., and net income was ¥1,579 million.
As for dividends, with the aim of having an amount equivalent to profit dividends deducted as expenses
based on the application of the special provision on taxation of investment corporations (Article 67-15 of the
Act on Special Measures Concerning Taxation [Act No. 26 of 1957, as amended; hereinafter, the “Special
Taxation Measures Act”]), Top REIT decided that the entire amount of unappropriated retained earnings ofthe fifteenth fiscal period, excluding fractions of the dividend per investment unit that are less than ¥1, would
be paid out. Consequently, Top REIT declared a dividend per investment unit of ¥10,191.

5. Management Policy and Future Issues(a)Management Strategy for Existing Properties
Top REIT will continue to follow its basic asset management strategy that centers on sustaining andincreasing revenue over the medium to long term by maintaining and improving tenant satisfaction (the“Tenants First” policy) and keeping operational management costs at an appropriate level. Under thisstrategy, Top REIT will focus on sustaining relationships of trust with tenants, leasing vacant spaces andsuch, as well as striving to maintain stable occupancy rates over the medium to long term.
Furthermore, Top REIT will also work to ensure an appropriate perception of the operational management
conditions for each property while steadily implementing such measures as to sustain and improve revenues
and keep operational management costs at an appropriate level. In addition, Top REIT will carry out
systematic repair work and such to enhance the competitiveness of properties and to maintain and improve
the functionality of properties, in an aim to secure stable revenues over the medium to long term.
(b)Investment Strategy for New Properties
5Top REIT aims to increase its dividends over the medium to long term by realizing external growth throughacquisition of new properties. Top REIT will continue to not only further utilize pipeline support functions
from sponsor companies, but also utilize various established information channels to collect information on
new properties based on detailed analysis of market environment of each asset classes, while placingemphasis on primarily highly competitive office buildings. By doing so, Top REIT aims to expand theportfolio size while improving its quality.
Furthermore, Top REIT makes it a management policy to keep the ratio of the investment amount perproperty at less than 20% of the entire portfolio as a target over the medium to long term. For reference, theacquisition value of the NEC Head Office Building accounts for 22.6% of the total acquisition value of Top
REIT’s properties as of the end of the fifteenth fiscal period. Going forward, Top REIT will work to reduce
the risk of concentration on specific properties by steadily advancing further external growth.
(c)Financial Strategy
Top REIT will continue to implement diversified and flexible fund procurement operations in preparation
for acquisition of new properties and refinancing of existing loans, etc. While securing mobility andflexibility in fund procurement, Top REIT will work to reduce the risk involved in fund procurement byextending borrowing periods and spreading out the repayment dates. At the same time, Top REIT will
manage the risk of interest rate fluctuations by taking into account the balance of borrowings at floating andfixed interest rates, as it discerns the interest rate trends. Moreover, financial soundness will be maintainedby keeping the leverage at an appropriate level.
(d)Compliance and Risk Management, etc.
In addition to the supervision of the Executive Officer by Supervisory Directors at the Board of Directors
meetings and other occasions, Top REIT will continue its direction and supervision on the Asset Manager
that it can conduct management operations with full care given to market risks, including rent decreases,
and credit risks as well as with a focus on the protection of unitholders’ interests in conducting transactions
with interested parties and on other compliance issues.

6. Significant Subsequent Events
Issuance of new investment units
Top REIT resolved the issuance of new investment units, as described below, at its board of
directors meetings held on November 7 and November 18, 2013. Payment was completed on
November 25, 2013 for issuance of new investment units through public offering, and on December
13, 2013 for third-party allotment, respectively.
(Issuance of New Investment Units through Public Offering)Number of investment units to be offered:
Issue price (offer price):
Total issue price (total offer price):
Amount to be paid in (purchase price):
Total amount to be paid in (total purchase price):
Payment date:

20,000 units
438,750 yen per unit
8,775,000,000 yen
423,000 yen per unit
8,460,000,000 yen
November 25, 2013

(Third-Party Allotment)
Number of investment units to be offered:Amount to be paid in (purchase price):
Total amount to be paid in (total purchase price):
Payment date:
Allottee:

1,000 units
423,000 yen per unit
423,000,000 yen
December 13, 2013
Daiwa Securities, Co. Ltd.

(Use of funds)
Top REIT allocated the proceeds from the public offering to part of the funds for the acquisitionof specified assets. The proceeds from the issuance of new investment units by way of thirdparty allotment will be allocated to funds for the future acquisition of specified assets or for the
repayment of loans.
6[Reference Information]① Property acquisition
Top REIT acquired the following properties as of November 28, 2013. Overview of theproperties is described below.
Acquisition
Price
Name of Property
Asset Type(millions
Addressof yen)(Note 1)
Ginza Oji Building
2,000 Chuo-ku, Tokyo
Ownershipoftrust
Shinjuku EAST
5,800 Shinjuku-ku, Tokyo
beneficiary interest in
Building
real estate in Japan
Kojima×Bic Camera
4,500 Kashiwa-shi, Chiba
Kashiwa Store
Total

12,300(Note 1) “Acquisition Price” of each property is the price for sale specified in the respective sales
agreement (excluding consumption tax and equivalents) which does not include
acquisition expenses, real property tax, city planning tax, etc.

② New borrowings
Top REIT entered into a loan agreement as described below on November 26, 2013 to partiallyfund the property acquisition in ① above and related expenses.
Short-term loan (Term Loan No. 22)
Sumitomo Mitsui Trust Bank, Limited.
LenderAmount of loan
JPY 4,500 million
Interest rate
0.49818% (for the period from November 28, 2013 to
December 30, 2013)
Execution dateNovember 28, 2013
Borrowing method
Borrowing based on the loan agreement concluded on
November 26, 2013
Principal repayment
April 30, 2014
date
Principal repayment
Bullet repayment on the principal repayment datemethodCollateral, etc.
Unsecured and unguaranteed

77. Outlook for the Sixteenth and Seventeenth Fiscal Periods
The earnings forecasts for the sixteenth fiscal period (from November 1, 2013 to April 30, 2014) and theseventeenth fiscal period (from May 1, 2014 to October 31, 2014) are as follows:
Please refer to the page 9 for the preconditions of earnings forecasts. Top REIT has announced the revision of
its earnings forecasts in the “Notice concerning Revision of Forecast on Business Result and Dividend for the
Fifteenth Fiscal Period (ended Oct.31, 2013), the Sixteenth Fiscal Period (ending Apr.30, 2014) and theSeventeenth Fiscal Period (ending Oct.31, 2014)” dated December 16, 2014. Major factor for this revision is1) to 3) mentioned below.

1) Increase in rent revenue from existing properties, including Harumi Island Triton Square Office Tower Y,
due to execution of lease agreement with new tenants and the revised rent with existing tenants, etc.

2) Decrease in operating and non-operating expenses resulting from the revision of property-related taxes
and dues, repair expenses and interest expenses and so on.

3) Revision of financial assumption from estimated loan amount to actual loan amount (¥4,500 million) usedas part of the funds to acquire three assets.
Fiscal Period

Sixteenth Fiscal Period

Seventeenth Fiscal Period[period of asset management][ 181 days][ 184days]

Operating Revenue¥5,586mn¥5,729mn

Operating Income¥2,466mn¥2,481mn

Ordinary Income¥1,840mn¥1,849mn

Net Income¥1,839mn¥1,848mn

Dividend per Unit
(excluding dividend in excess of earnings)¥10,450 (Note 2)¥10,500 (Note 2)

Dividend in Excess of Earnings per Unit
(Note 1)

(Note 2)¥0¥0The earnings forecasts represented above are the current estimated figures calculated based on
certain assumptions. Accordingly, the actual operating revenue, operating income, ordinary
income, net income, dividend per unit and dividend in excess of earnings per unit may vary
due to changes in the circumstances. Moreover, the forecasts should not be construed as aguarantee of the dividend amount.
With regard to the ¥78 million of internal reserves, Top REIT will not reverse all or part of theinternal reserves for dividend of the sixteenth and seventeenth fiscal period.

8Preconditions for Forecast of Earnings Results for the Sixteenth Fiscal Period (from November 1, 2013 toApril 30, 2014) and the Seventeenth Fiscal Period (from May 1, 2014 to October 31, 2014)
Item
Preconditions and Assumptions
Management
 Sixteenth fiscal period: November 1, 2013 – April 30, 2014 (181 days)
Period Seventeenth fiscal period: May 1, 2014 – October 31, 2014 (184 days)

Portfolio Assets

 It is assumed that the portfolio is comprised of 22 properties with the addition of thefollowing three assets acquired on November 28, 2013 to 19 properties Top REIT owns asof the end of October, 2013. It is also assumed that there is no other transfer (acquisition of
new properties or sale of existing properties, etc.) of properties until the end of Seventeenth
Fiscal Period.
 <Acquired assets>

Name of Property
Ginza Oji Building
Shinjuku EAST Building
Kojima×Bic Camera
Kashiwa Store
Number ofInvestment Units
Issued andOutstanding

Interest-Bearing
Liabilities

Operating
Revenue

OperatingExpensesAcquisition Date
November 28, 2013

 The number of investment units issued and outstanding is based on the number as ofDecember 19, 2013, which is 176,000 units, and assumes that no issuance of new
investment units will be made through October 31, 2014.
 It is assumed that the total balance of interest-bearing liabilities is ¥100,497 million withthe addition of ¥4,500 million of loan used as part of the funds to acquire three assets
mentioned above to ¥95,997 million as of October 31, 2013. It is also assumed that theabove loan will be fully repaid before maturity and refinanced to a long-term borrowing at
the end of March, 2014.
 For the sixteenth fiscal period, it is assumed that the ¥67 million in long-term loans payable
will be repaid on December 30, 2013 as agreed upon.
 For the seventeenth fiscal period, it is assumed that the ¥67 million in long-term loans
payable will be repaid on June 30, 2014 as agreed upon.
 For real estate rent revenue related to existing properties, Top REIT takes into
consideration execution of new lease agreements and cancellation of lease agreements thathave been finalized, along with current real estate leasing market conditions, as well asfactors that may cause fluctuations in such aspects as risks associated with rent revision due
to fluctuations in rent of tenants reaching their rent revision period or contract renewal
period.
 Top REIT adopts a method of treating property, city planning and depreciable asset taxes,
etc. on real estate, etc. it owns, as expenses related to the rent business in the amountcorresponding to the management period out of the assessed and determined taxation
amount. In addition, as for the acquisition of real estate or beneficiary interests in trust inreal estate, the adjustments equivalent to property tax for the acquired fiscal year paid to
the transferor will be included in acquisition costs, and thus will not be recorded as
expenses in the corresponding period.
 Accordingly, Top REIT will record the relevant determined taxation amount as rent
business expenses from 2014 onward with regard to property tax, etc. of the three assets
acquired on November 28, 2013. The amount equivalent to property taxes which isincluded in acquisition costs is assumed to be ¥9 million.
 It is assumed that the amount of property tax, etc. will be ¥580 million for the sixteenthfiscal period and ¥638 million for the seventeenth fiscal period.
 It is assumed that the depreciation and amortization will be ¥1,200 million for the sixteenthfiscal period and ¥1,210 million for the seventeenth fiscal period.
 Repair expenses for buildings, etc. may vary greatly from the forecasted amount due tovarious reasons. For example, emergency repair expenses may possibly arise due to9unexpected factors causing building damage, etc. Another reason is that repair expenses are
expenses that are not accrued periodically and, rather, the variation in the amount largely
depends on the fiscal period.
 Management operation fees are assumed by considering historical data and the detail ofmanagement contracts, as well as revision of related fees.

Non-Operating
Expenses Expenses for the issuance of new investment units and secondary offering resolved on
November 7, 2013 are estimated to be ¥40 million. It is assumed that these costs will beamortized over three years with the straight-line method.
 It is assumed that non-operating expenses for the sixteenth fiscal period will be ¥626
million, of which interest on loans and interest expenses on investment corporation bonds(including related expenses) will be ¥613 million.
 It is assumed that non-operating expenses for the seventeenth fiscal period will be ¥633
million, of which interest on loans and interest expenses on investment corporation bonds(including related expenses) will be ¥620 million.

Dividend per
Unit Dividends (dividend per unit) are calculated based on the dividend policy stipulated in Top
REIT’s Articles of Incorporation.
 It is assumed that net income will be fully distributed as dividend (excluding fractions) in
the Sixteenth Fiscal Period and the Seventeenth fiscal Period.
 Top REIT will not reverse the amount of internal reserves for the sixteenth and seventeenthfiscal period.

Dividend in
Excess ofEarnings per Unit Top REIT does not currently anticipate dividends in excess of earnings (dividend in excessof earnings per unit).

Other It is assumed that there will be no changes in legislation, taxation, accounting standards,
Tokyo Stock Exchange’s listing regulations, rules and requirements imposed by The
Investment Trusts Association, Japan that would impact the aforementioned forecasts.
 It is assumed that there will be no unpredictable material changes in general economic
trends and real estate market conditions, etc.

10

8. Financial Statements(1) Balance Sheets(Unit: thousand yen)
Fourteenth Fiscal Period(as of April 30, 2013)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Other intangible assets in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

11

Fifteenth Fiscal Period(as of October 31, 2013)

520,404
4,180,585
27,442
317,24916
1,830
5,047,529

903,3143,939,421
103,255
329,13617
6,586
5,281,731

1,150,996(194,278)
956,718
5,559(3,153)
2,406
17,235(10,927)
6,308
5,013
(1,341)
3,671
4,888,525
62,648,114(13,869,346)
48,778,767
697,808(280,312)
417,496
255,258(118,488)
136,770
250,945(126,500)
124,444
125,686,918
181,002,027

1,150,996(210,309)
940,687
5,559(3,280)2,278
20,309(11,393)
8,915
5,717
(1,724)
3,992
4,888,525
62,810,594(14,921,677)
47,888,916
697,890(298,860)
399,030
256,518(131,514)
125,003
260,147(141,218)
118,928
125,686,918
180,063,196

1,603
106
1,709

1,356
85
1,441

10,000706,676
211,855
928,531
181,932,269

10,000562,703
231,780
804,484
180,869,122

23,88423,884
187,003,684

18,372
18,372
186,169,227

(Unit: thousand yen)
Fourteenth Fiscal Period(as of April 30, 2013)

Fifteenth Fiscal Period(as of October 31, 2013)

Liabilities
Current liabilities
259,047

Operating accounts payable
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Deferred tax liabilities
Long-term advances received
Derivatives liabilities
Total noncurrent liabilities
Total liabilities

135,000
247,216
130,623702
20,742
726,380
4,693
1,524,405

136,532
4,135,000
239,584
131,320859
61,670705,8422,821
5,413,630

101,351,746
102,876,152

8,500,000
83,362,500
101,016
4,873,415
19,293
122
27,94996,884,297
102,297,927

Unitholders’ capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total Voluntary retained earnings

82,260,100

82,260,100

49,95849,95849,95849,958Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments

1,822,649
1,872,608
84,132,708

1,579,617
1,629,576
83,889,676(5,177)(5,177)(18,376)(18,376)

84,127,531
187,003,684

83,871,299
186,169,227

8,500,000
87,430,000
101,016
5,286,521
26,141
166
7,901

Net Assets
Unitholders’ equity

Total net assets
Total liabilities and net assets

12(2) Statements of Income(Unit: thousand yen)
Fourteenth Fiscal Period(November 1, 2012 –April 30, 2013)

Fifteenth Fiscal Period(May 1, 2013 –October 31, 2013)

Operating revenue
5,370,000

Rent revenue – real estate

5,125,553

Other lease business revenue

474,649

28,748

Total operating revenue

5,844,649

5,154,302

2,848,597

2,438,852

Operating expenses
Expenses related to rent business

416,586

406,366

Asset custody fee

8,443

8,385

Administrative service fees

64,41364,806

Directors’ compensations

6,300

6,300

Audit fee

10,00010,000Asset management fee

42,77946,9403,397,120

2,981,651

2,447,529

2,172,650

Interest income

1,346

641

Reversal of dividends payable

1,093

825

Insurance income

234

10,304

Other

798

71

3,472

11,842

Interest expenses

438,278

406,843

Interest expense on investment corporation bonds

42,03442,965

Amortization of investment corporation bond issuance costs

5,511

5,511

136,221

143,961

5,377

4,639

Other operating expenses
Total operating expenses
Operating income
Non-operating income

Total non-operating income
Non-operating expenses

Borrowing related expenses
Other

627,423

603,922

Ordinary income

1,823,578

1,580,570

Income before income taxes

1,823,578

1,580,570

Income taxes – current

945

958

Income taxes – deferred

0(0)Total non-operating expenses

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

13

946

957

1,822,632

1,579,612

17

4

1,822,649

1,579,617

(3) Statements of Changes in Net Assets (Unitholders’ Equity)(Unit: thousand yen)
Fourteenth Fiscal Period(November 1, 2012 –April 30, 2013)
Unitholders’ equity
Unitholders’ capital
Balance at the beginning of the period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Surplus
Voluntary retained earnings
Reserve for reduction entry
Balance at the beginning of the period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Total Voluntary retained earnings
Balance at the beginning of the period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the beginning of the 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
Total surplus
Balance at the beginning of the 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
Total unitholders’ equity
Balance at the beginning of the 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 beginning of the period
Changes of items during the period
Net changes of items other than unitholders’ equity (net)Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the beginning of current period
Changes of items during the period

14

Fifteenth Fiscal Period(May 1, 2013 –October 31, 2013)82,260,100

82,260,100－
82,260,100

82,260,100

49,95849,958－49,958－49,95849,95849,958－49,958－49,9582,001,377

1,822,649(2,001,360)
1,822,632(178,727)
1,822,649(1,822,645)
1,579,612(243,032)
1,579,617

2,051,336

1,872,608(2,001,360)
1,822,632(178,727)
1,872,608(1,822,645)
1,579,612(243,032)
1,629,576

84,311 ,436

84,132,708(2,001,360)
1,822,632(178,727)
84,132 ,708

(1,822,645)
1,579,612(243,032)
83,889,676(6,909)(5,177)

1,732
1,732
(5,177)(13,199)(13,199)(18,376)(6,909)(5,177)―

Net changes of items other than unitholders’ equity (net)Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of the period
Changes of items during the period
Dividends from surplus
Net income
Net changes of items other than unitholders’ equity (net)Total changes of items during the period
Balance at the end of current period

1,732
1,732
(5,177)(13,199)(13,199)(18,376)

84,304,526

84,127,531(2,001,360)
1,822,632
1,732(176,995)
84,127,531(1,822,645)
1,579,612(13,199)(256,231)
83,871,299(4) Statements of Cash Dividend Distributions
For the period
from November 1, 2012
to April 30, 2013

For the period
from May 1, 2013
to October 31, 2013

Amount(yen) (Note 1)

Amount(yen) (Note 2)

I. Unappropriated retained earnings

1,822,649,910

1,579,617,747

II. Total Amount of Dividends

1,822,645,000

1,579,605,000(11,759)(10,191)

4,910

12,747(Dividend per unit)
III. Retained earnings brought forward(Note1)

In accordance with the “cash distribution policy” stipulated in Article 34 of the Articles of Incorporation, the amountsof dividends are limited to the amounts of income. The article also stipulates the policy that “Top REIT shall
distribute amount in excess of the amount equivalent to 90% of its distributable profits as stipulated in Article 67-15
of the Special Taxation Measures Act.” Based on these policies, Top REIT decided on a total distribution of
1,822,645,000 yen as distribution of income for the period. This is the maximum value arrived at when the number ofunits issued and outstanding (155,000 units) is multiplied by an integer, within the limit of unappropriated retained
earnings for the fiscal period.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the
Articles of Incorporation.

(Note2)

In accordance with the “cash distribution policy” stipulated in Article 34 of the Articles of Incorporation, the amountsof dividends are limited to the amounts of income. The article also stipulates the policy that “Top REIT shall
distribute amount in excess of the amount equivalent to 90% of its distributable profits as stipulated in Article 67-15
of the Special Taxation Measures Act.” Based on these policies, Top REIT decided on a total distribution of
1,579,605,000 yen as distribution of income for the period. This is the maximum value arrived at when the number ofunits issued and outstanding (155,000 units) is multiplied by an integer, within the limit of unappropriated retained
earnings for the fiscal period.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the
Articles of Incorporation.

15

(5) Statements of Cash Flows(Unit: thousand yen)
Fourteenth Fiscal Period(November 1, 2012 –April 30, 2013)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of trademark
Amortization of investment corporation bond issuance costs
Interest income and interest on securities
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
Subtotal

Fifteenth Fiscal Period(May 1, 2013 –October 31, 2013)

1,823,578
1,121,794
21
5,511(1,346)
480,3128,398(55,845)
32,816(7,612)(81,983)(219,570)(93,389)(19,154)
2,993,532

1,580,570
1,115,879
21
5,511
(641)
449,809(75,812)(11,887)(9,835)(1,280)40,927(20,537)
143,973(31,711)
3,184,987

1,346(523,755)(931)
2,470,191

641(449,111)(801)
2,735,714

Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities(192,000)
192,000(4,642)(1,519,956)(24,885)
251,829(477,907)(1,775,561)

－
－
(549)
(290,168)―
95,109(508,214)(703,823)

Net cash provided by (used in) financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities

2,800,000(2,800,000)
18,330,000(19,167,500)(2,001,360)(2,838,860)－－－(67,500)(1,822,645)(1,890,145)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(2,144,229)
6,845,219
4,700,990

141,745
4,700,990
4,842,736

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

169. Portfolio Data
Asset
Class

Area

Property Name

AcquisitionPrice

As of October 31, 2013
Appraisal
Investment
Value atBreakdown
End of Period(Note)(million yen)(million yen)(%)

NEC Head Office Building

41,95050,100

29.4

Harumi Island Triton Square OfficeTower Y

33,00029,500

17.3

Akasaka Oji Building

9,660

8,540

5.0

Kanda Park Plaza

5,156

4,910

2.9

Shiba-Koen Building

5,770

3,540

2.1

20,00012,6007.4

12,70014,2008.3

Shinkawa Chuo Building

5,610

5,790

3.4

Faret East Building

2,091

2,450

1.4

135,937

131,630

77.2

Sagamihara Shopping Center

12,0008,330

4.9

Ito-Yokado Higashi-Narashino Store

8,900

5,620

3.3

Musashiurawa Shopping Square

4,335

3,880

2.3

MEL Building

1,210

1,280

0.8

26,445

19,110

11.2

Top Residence Nihonbashi
Kayabacho

2,400

2,580

1.5

Fukasawa House Towers H&I

10,6357,120

4.2

Ecology Toyosu Procentury

5,160

5,080

3.0

Impress Musashi-Koganei

1,223

1,270

0.7

Top Residence Yoga

1,165

1,180

0.7

Subtotal (5 properties)

20,583

17,230

10.1

Central Tokyo

2,590

2,500

1.5

2,590

2,500

1.5

185,555

170,470

100.0

Central Tokyo
OfficeBuilding

Harumi Island Triton Square OfficeTower Z
Kanda Nishiki-cho 3-chome
Building
Tokyo
Metropolitan
Area

Subtotal (9 properties)

RetailPropertyTokyo
Metropolitan
Area
Other
Major Cities

Subtotal (4 properties)
Central Tokyo

Residential Tokyo
Metropolitan
Property
Area

Other
PropertyOAK PLAZA

Subtotal (1 property)

Total (19 properties)(Note) The investment breakdown is the ratio of the appraisal value at end of period for the applicable property
or the applicable asset class to the sum total of the appraisal value at end of period for all properties in theportfolio and is rounded to the first decimal place.
17

For more information, please visit our website http://www.top-reit.co.jp/english/
Contact for inquiries in Japanese:
Top REIT Asset Management Co., Ltd. (Asset Manager)
Shusaku Ohashi, Director, General Manager, Finance Department+81-3-3243-2181
Contact for inquiries in English:
Top REIT Asset Management Co., Ltd. (Asset Manager)
E-mail address: info-top@top-reit-am.co.jp

DISCLAIMER:
Top REIT, Inc. makes no assurance or warranty with respect to the completeness or accuracy of this English
translation. In the event of any discrepancy between the Japanese original and this English translation, theJapanese original shall prevail. For complete and accurate information, please refer to the Japanese original.

18