June 14, 2011

Summary of Earnings Results for theTenth Fiscal Period(From November 1, 2010 to April 30, 2011)
Top REIT, Inc. (listed on the Tokyo Stock Exchange with securities code 8982) hereby announces its earnings
results for the fiscal period ended April 30, 2011 (tenth fiscal period).

1. Earnings Results for the Tenth Fiscal Period
Tenth Fiscal Period:
Ninth Fiscal Period:

From November 1, 2010 to April 30, 2011
From May 1, 2010 to October 31, 2010

(1) Business Results
Tenth
Fiscal PeriodNinthFiscal Period

TenthFiscal PeriodNinthFiscal Period

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,967mn(1.5%)¥2,971mn(1.6%)¥2,194mn(0.5%)¥6,060mn

4.2%¥3,019mn

6.0%¥2,204mn

5.4%Net
IncomePeriod-on-Period
ChangeNet
Incomeper Unit¥2,157mn(2.1%)¥13,922

2.6%

1.2%

36.8%

¥2,204mn

5.5%¥14,220

2.6%

1.2%

36.4%

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)

Tenth
Fiscal PeriodNinthFiscal Period

Dividend in
Excess ofEarnings
per Unit

Total Amount of
Dividends in
Excess ofEarnings

Dividend
Payout Ratio

Ratio of
Dividends to
Net Assets¥13,922¥2,157mn¥0¥–mn

100.0%

2.6%¥14,220¥2,204mn¥0¥–mn

100.0%

2.6%(3) Financial Position

Tenth
Fiscal PeriodNinthFiscal Period

Total Assets

Net Assets

Ratio of
Unitholders’ Equity to
Total Assets

Net Assets per Unit

¥186,336mn¥84,418mn

45.3%¥544,632¥186,459mn¥84,438mn

45.3%¥544,768(Note) Net assets per unit is rounded to the nearest yen.

1(4) Cash Flows

Tenth
Fiscal PeriodNinthFiscal 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¥3,026mn(¥318mn)(¥2,271mn)¥12,448mn¥3,481mn(¥141mn)(¥2,213mn)¥12,013mn

2. Forecast of Earnings Results for the Eleventh Fiscal Period
Eleventh Fiscal Period:

Eleventh
Fiscal Period

Eleventh
Fiscal Period

From May 1, 2011 to October 31, 2011

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,806mn(2.7%)¥2,752mn(7.4%)¥1,954mn(11.0%)Net
IncomePeriod-on-Period
Change(excluding dividend in excess of earnings)

Dividend in Excess of Earnings
per Unit¥1,953mn(9.5%)¥12,600¥0

Dividend per Unit

(Note) Estimated net income per unit for the tenth fiscal period: ¥12,600*Explanation on the Appropriate Use of Earnings Results Forecasts, and Other Matters of Special Note
The earnings results forecasts and other forward-looking statements contained in this document are basedon 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.

3. Others(1) Changes in Accounting Policies
a. Changes accompanying revisions in accounting standards, etc.:
b. Changes aside from a. above:NoNo(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
Tenth Fiscal Period:
155,000 units
Ninth Fiscal Period:
155,000 units
b. Number of own investment units issued and outstanding at end of fiscal period
Tenth Fiscal Period:
0 units
Ninth Fiscal Period:
0 units
This summary of earnings results is translated from the Japanese “Kessan Tanshin” report, dated June 14,
2011, which is prepared in accordance with generally accepted accounting principles in Japan andJapanese law.
Unless otherwise stated, fractions less than the specified unit are rounded down to the nearest specified
unit for monetary amounts and rounded to the nearest specified unit for percentage figures.

24. Asset Management Performance(1) Acquisition and Selling of Assets
Top REIT began the tenth fiscal period with 15 properties (total acquisition value: ¥175,047 million), andinvestigated possible acquisition of properties based on information collected and carefully selected with afocus on office buildings located in central Tokyo through the “optimal application of sponsors’ strengths.”
However, from the turmoil and the growing sense of opaqueness in the economic situation and the real estatemarket environment due to the impact of the Great East Japan Earthquake, etc., Top REIT decided to suspend
acquisitions while it assesses the ensuing impact of the Earthquake, etc. on the economic situation and the realestate market environment. As a result, the number of properties owned by Top REIT remained unchanged
from the ninth fiscal period at 15 properties (total acquisition value: ¥175,047 million) as of the end of thetenth fiscal period.
(2) Management and Maintenance of Portfolio Assets
The basic asset management strategy of Top REIT centers on sustaining and increasing 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.
Top REIT strived to improve tenant satisfaction by sustaining relationships of trust with tenants and discerning
tenant needs via property management companies in order to maintain high occupancy rates. Moreover,solicitation of new tenants and other efforts were appropriately made. As a result of such undertakings, theoccupancy rate of Top REIT’s entire portfolio at the end of the tenth fiscal period was 99.7%.
Regarding maintenance, Top REIT followed up on ensuring an appropriate perception of the operational
management conditions and steady implementation of asset management plans for each property. Top REIT
also carried out repair work that contributes to enhancing the competitiveness of properties and maintaining
and improving the functionality of properties based on asset management plans, took steps to keep relevantcosts at an appropriate level, as well as conducted efficient management of resources.

5. Procurement of Funds
Top REIT procures funds by adopting a financial policy that is based on stable financial management. Of thetotal borrowings, a total of ¥23,400 million in loans became due for repayment during the tenth fiscal period,
Top REIT implemented refinancing of these loans, as described below, in an effort to increase the ratio of longterm loans payable, extend the periods remaining until repayment dates of interest-bearing liabilities, and hedge
the risk of interest rate fluctuations by fixing interest rates.
First, Top REIT refinanced ¥6,700 million in short-term loans payable, which matured on February 28, 2011, byborrowing short-term loans payable as of the same date (repayment date: February 29, 2012). Later, as of March
31, 2011, the loan was refinanced with long-term loans payable (repayment date: February 29, 2016). In addition,
Top REIT refinanced the ¥16,700 million in long-term loans payable, which became due on March 3, 2011 byborrowing long-term loans payable (repayment date: February 29, 2016) as of the same date, and fixed theinterest rate through an interest rate swap deal.
As a result, at the end of the tenth fiscal period, the total amount of interest-bearing liabilities stands at ¥94,105
million and the ratio of interest-bearing liabilities to total assets at 50.5%. Of the total amount of interest-bearing
liabilities, 52.7% are interest-bearing liabilities with fixed interest rates and 100.0% are long-term interestbearing liabilities (including the current portion).

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The credit ratings of Top REIT as of April 30, 2011 are as follows:
Rating Agency

Issuer Rating [Outlook]

Moody’s Japan K.K. (Moody’s)

A3 [Negative]

Rating and Investment Information, Inc. (R&I)

AA– [Stable][Reference Information]
Top REIT decided at its Board of Directors meeting held on May 23, 2011 to convene the fourth General
Meeting of Unitholders, scheduled for July 26, 2011.

6. Outlook for the Eleventh and Twelfth Fiscal Periods
The earnings results forecasts for the eleventh fiscal period (from May 1, 2011 to October 31, 2011) and thetwelfth fiscal period (from November 1, 2011 to April 30, 2012) are as follows:
Fiscal Period

Eleventh Fiscal Period

Twelfth Fiscal Period[period of asset management][184 days][182 days]

Operating Revenue¥5,806mn¥5,320mn

Ordinary Income¥1,954mn¥1,721mn

Net Income¥1,953mn¥1,720mn

Dividend per Unit
(excluding dividend in excess of earnings)¥12,600¥11,100¥0¥0

Dividend in Excess of Earnings per Unit

(Note) The earnings results forecasts presented above are the current estimated figures calculated based on
certain assumptions. Accordingly, the actual operating revenue, 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 a guarantee of the dividend amount.

4Preconditions for Forecast of Earnings Results for the Eleventh Fiscal Period (from May 1, 2011 to
October 31, 2011) and the Twelfth Fiscal Period (from November 1, 2011 to April 30, 2012)
Item
Management
PeriodPortfolio Assets
Number ofInvestment Units
Issued andOutstanding

Interest-Bearing
Liabilities

Operating
Revenue

OperatingExpenses

Non-Operating
Expenses

Preconditions and Assumptions
 Eleventh fiscal period: May 1, 2011 – October 31, 2011 (184 days) Twelfth fiscal period: November 1, 2011 – April 30, 2012 (182 days) The forecast is based on the 15 properties Top REIT owns as of June 14, 2011. The
actual circumstances may change due to the acquisition or disposal of properties andother factors.
 Top REIT does not have any forward commitments, etc. indicated in the supervision
guidelines of the Financial Services Agency (FSA) as of June 14, 2011.
 The number of investment units issued and outstanding is based on the number as ofApril 30, 2011, which is 155,000 units, and assumes that no issuance of new investment
units will be made through to April 30, 2012.
 It is assumed that the total amount of interest-bearing liabilities will be ¥94,105 million,
which is the amount as of April 30, 2011.
 For the eleventh fiscal period, it is assumed that ¥67.5 million in long-term loans
payable will be repaid on June 30, 2011 as agreed upon.
 For the twelfth fiscal period, it is assumed that ¥67.5 million in long-term loans payable
will be repaid on December 30, 2011 as agreed upon. Moreover, it is assumed that the¥19,040 million loans payable due for repayment on November 30, 2011 will be fullyrefinanced.
 For real estate rent revenue for existing properties, Top REIT takes into consideration
execution of new agreements, early termination of agreements, etc. that have been
finalized as of June 14, 2011, along with current real estate leasing market conditions,and also takes into account factors that may cause fluctuations in such aspects as risks of
reductions in revenue due to decreased amounts of rent of tenants when they reach theirrent revision period hereafter.
 It is assumed that the amount of ¥142 million will be accrued in the eleventh fiscal
period as income equivalent to expenses for restoring the property to its original state inaccordance with the relocation of a major tenant from Akasaka Oji Building.
 Top REIT adopts a method 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.
 It is assumed that the amount of property tax, etc. will be ¥611 million for the eleventh
fiscal period and ¥611 million for the twelfth fiscal period.
 It is assumed that depreciation and amortization will be ¥1,050 million for the eleventh
fiscal period and ¥1,029 million for the twelfth 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 to
unexpected factors causing building damage, etc. Another reason is that repair expenses
are expenses that do not accrue periodically and, rather, the variation in the amount islarge depending on the fiscal period.
 It is assumed that the amount of ¥142 million will accrue in the eleventh fiscal period as
expenses for restoring the property to its original state in accordance with the relocationof a major tenant from Akasaka Oji Building.
 Management operation fees are assumed by reflecting historical data, among otherfactors.
 It is assumed that non-operating expenses for the eleventh fiscal period will be ¥801
million, of which interest on loans and interest expenses on investment corporation
bonds (including related expenses) will be ¥798 million.
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Dividend per
Unit
Dividend in
Excess ofEarnings per Unit
Other

 It is assumed that non-operating expenses for the twelfth fiscal period will be ¥746
million, of which interest on loans and interest expenses on investment corporation
bonds (including related expenses) will be ¥740 million.
 Dividends (dividend per unit) are calculated based on the dividend policy stipulated in
Top REIT’s Articles of Incorporation.
 Top REIT does not currently anticipate dividends in excess of earnings (dividend inexcess of earnings per unit).
 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.

6

7. Financial Statements(1) Balance Sheets(Unit: thousand yen)
Ninth Fiscal Period(as of October 31, 2010)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Income taxes receivable
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
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

7

Tenth Fiscal Period(as of April 30, 2011)

7,343,741
4,769,415
42,947
250,570
16,379511
2,859
12,426,425

8,244,212
4,204,759
28,260259,065
18
267
2,333
12,738,917

1,116,573(110,360)
1,006,212
4,452(2,283)
2,168
11,436(8,116)
3,320
1,004
(448)
555
4,888,525
57,717,230(8,942,395)
48,774,834
657,339(179,227)
478,112
212,861(71,141)
141,720
156,580(67,501)
89,079118,234,009
173,618,539

1,116,573(129,310)
987,262
4,452(2,596)
1,855
11,436(9,210)
2,226
1,370
(560)
810
4,888,525
58,107,314(9,962,605)
48,144,709
680,914(199,312)
481,601
212,861(81,959)
130,902204,392(81,894)
122,498
118,234,009
172,994,401

212
212

191
191

10,000
198,549
154,660
363,210
173,981,962

10,000389,548
157,734
557,282
173,551,875

51,44451,444
186,459,832

45,93245,932
186,336,725

(Unit: thousand yen)
Ninth Fiscal Period(as of October 31, 2010)

Tenth Fiscal Period(as of April 30, 2011)

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Provision for loss on disaster
Other
Total current liabilities

187,056
6,700,000
16,835,000
271,228
239,784445
134,143
810,715
62,972―
2,670

210,849―
19,175,000
262,699
254,237528
49,858868,261―
26,742
2,425

25,244,017

20,850,602

8,500,000
62,137,500
146,592
5,992,614
122

8,500,000
66,430,000
144,487
5,993,537
79

76,776,829
102,020,847

81,068,104
101,918,707

82,260,100

82,260,100

2,204,126

2,157,918

2,204,126

2,157,918

84,464,226

84,418,018(25,241)―(25,241)
84,438,984
186,459,832―
84,418,018
186,336,725

Noncurrent liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Long-term advances received
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets8(2) Statements of Income(Unit: thousand yen)
Ninth Fiscal Period(May 1, 2010 –October 31, 2010)

Tenth Fiscal Period(November 1, 2010 –April 30, 2011)

Operating revenue
Rent revenue – real estate

6,047,097

5,947,270

Other lease business revenue

13,728

20,165

Total operating revenue

6,060,826

5,967,436

2,451,121

2,414,304

455,280

450,347

Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee

8,367

8,367

Administrative service fees

63,093

63,117

Directors’ compensations

6,900

6,900

Audit fee

10,00010,000

Other operating expenses
Total operating expenses
Operating income

46,61342,8083,041,377

2,995,845

3,019,449

2,971,591

6,225

3,373

Non-operating income
Interest income
Reversal of dividends payable

728

795

Insurance income

―

2,235

Other

678

144

7,633

6,549

Interest expenses

665,835

615,788

Interest expense on investment corporation bonds

34,69842,034

Total non-operating income
Non-operating expenses

Amortization of investment corporation bond issuance costs
Borrowing related expenses

4,593

5,511

108,153

115,568

Amortization of deferred organization expenses

5,670

―

Other

3,144

4,702

Total non-operating expenses

822,095

783,605

2,204,986

2,194,535

―

1,361

―

1,361

Loss on disaster―

10,277

Provision for loss on disaster―

26,742

Total extraordinary loss―

37,019

Income before income taxes

2,204,986

2,158,876

950

986

Ordinary income
Extraordinary income
Refunded Property taxes
Total extraordinary income
Extraordinary loss

Income taxes – current
Income taxes – deferred2(1)

Total income taxes

953

985

2,204,033

2,157,891

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

9

92

26

2,204,126

2,157,918

(3) Statements of Cash Flows(Unit: thousand yen)
Ninth Fiscal Period(May 1, 2010 –October 31, 2010)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of deferred organization expenses
Amortization of right of trademark
Amortization of investment corporation bond issuance costs
Interest income and interest on securities
Interest expenses
Provision for loss on disaster
Decrease (increase) in operating accounts receivable
Decrease (increase) in income taxes receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in other current assets
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

Tenth Fiscal Period(November 1, 2010 –April 30, 2011)

2,204,986
1,081,984
5,670
21
4,593
(6,225)700,534―(6,205)19
17,430(3,803)9635,191
17,047
134,143(98,403)102,210(23,850)
4,165,440

2,158,876
1,086,104
―
21
5,511
(3,373)657,823
26,742
14,206243―(8,494)―(5,169)(8,528)(84,285)
57,546(190,999)(17,961)3,688,263

5,391(688,296)(945)
3,481,589

3,757(664,738)(904)
3,026,378(400,000)
300,000(196)(87,610)(1,301)
82,322(34,721)(141,507)(300,000)
400,000(366)(417,894)(2,105)646,653(645,250)(318,962)

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
Proceeds from issuance of investment corporation bonds
Payments for investment corporation bond issuance costs
Dividends paid
Net cash provided by (used in) financing activities―――(8,567,500)
8,500,000(55,667)(2,090,020)(2,213,187)

6,700,000(13,400,000)
23,400,000(16,767,500)――(2,204,100)(2,271,600)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

1,126,894
10,886,261
12,013,156

435,816
12,013,156
12,448,972

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

108. Portfolio Data
Asset
Class

Acquisition
Value

Appraisal
Investment
Value atBreakdown
End of Period(Note)(million yen)(million yen)

NEC Head Office Building

41,95047,950

28.1

Harumi Island Triton Square OfficeTower Y

33,00038,70022.7

Akasaka Oji Building

9,660

9,570

5.6

Kanda Park Plaza

5,156

4,970

2.9

Shiba-Koen Building

5,770

3,410

2.0

20,00014,3008.4

12,70014,0008.2

AreaCentral Tokyo
OfficeBuilding

Property Name

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

Faret East Building

2,091

2,430

1.4

KansaiNittetsu Honmachi Building

1,100

1,430

0.8

131,427

136,760

80.1

Sagamihara Shopping Center

12,00010,300

6.0

Ito-Yokado Higashi-Narashino Store

8,900

5,560

3.3

Musashiurawa Shopping Square

4,335

3,810

2.2

25,235

19,670

11.5

Fukasawa House Towers H&I

10,6356,990

4.1

Ecology Toyosu Procentury

5,160

4,590

2.7

Subtotal (2 properties)

15,795

11,580

6.8

Central Tokyo

2,590

2,660

1.6

2,590

2,660

1.6

175,047

170,670

100.0

Subtotal (9 properties)

RetailPropertyTokyo
Metropolitan
Area

Subtotal (3 properties)Tokyo
Residential Metropolitan
Area
Property

Other
PropertyOAK PLAZA

Subtotal (1 property)

Total (15 properties)(Note)(%)

The investment breakdown is the ratio of the appraisal value at end of period for the applicableproperty or the applicable asset class to the sum total of the appraisal value at end of period for allproperties in the portfolio and is rounded to the first decimal place.

11

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)
Koji Murata, 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.

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