KENEDIX REALTY INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2012 (REIT)(May 1, 2012 to October 31, 2012)
December 12, 2012
Kenedix Realty Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
Representative:

Naokatsu Uchida, Executive Director

Asset Management Company: Kenedix Office Partners, Inc.
Representative:

Naokatsu Uchida, CEO and President

Inquiries:

Hikaru Teramato, Director / General Manager, Financial Planning Division
TEL +81-3-3519-3491

Planned submission of semiannual securities report: January 30, 2013

Planned start of distribution payments: January 18, 2013

Preparing presentation material:

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

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED OCTOBER 31, 2012 (FIFTEENTH FISCAL PERIOD)(1) Business Results(Amounts are rounded down to the nearest ¥million)

Operating Revenues

Operating Income

Ordinary Income

Net Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

October 31, 2012

10,212(12.3%)

4,516(10.5%)

3,011(18.0%)

3,009(18.5%)

April 30, 2012

9,090

(0.5%)

4,086(-7.7)

2,551(-16.1%)

2,540(-16.8%)For the six months ended

Net Income

Return on Unitholders’ Equity

per Unit (Yen)

Ordinary Income to

Ordinary Income to Operating

Total Assets

Revenues

For the six months ended
October 31, 2012

10,503

2.0

1.0

29.5

April 30, 2012

8,865

1.7

0.9

28.1

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

Total Distribution

Excluding Excess of(Millions of Yen)

Earnings (Yen)Distributions in

Total Distributions in

Excess of Earnings

Excess of Earnings

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

Unitholders’ Equity

For the six months ended
October 31, 2012

9,557

2,738

0

0

91.0

1.8

April 30, 2012

9,364

2,683

0

0

105.6

1.8

Note 1: Distributions per unit for the fiscal period ended April 30, 2012 is calculated by dividing the amount after adding the reversal of reserve for reduction entry (¥143 million) tounappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distribution per unit and net income per unit is due to thiscalculation.
Note 2: Distribution per unit for the fiscal period ended October 31, 2012 is calculated by dividing the amount remaining after deducting the provision of reserve for reduction entry (¥271
million) from unappropriated retained earnings by the number of investment units issued and outstanding. The main difference between distribution per unit and net income per unit isdue to this calculation.
（Total assets and unitholders’ equity are rounded down to the nearest ¥million.）(3) Financial Position
Total Assets

Unitholders’ Equity

Unitholders’ Equity

Unitholders’ Equity per Share of(Millions of Yen)

(Millions of Yen)

to Total Assets

Common Stock (Yen)For the six months ended
October 31, 2012

306,734

150,38949.0

524,828

April 30, 2012

303,284

150,06349.5

523,688

This is an English-language translation of the original Japanese announcement on our Web site released on December 12, 2012. However, noassurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shallprevail in the case of discrepancies between this translation and the Japanese original.

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

Cash Flows from

Cash Flows from

Cash and Cash Equivalents

Operating Activities

Investing Activities

Financing Activities

at Period End(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

For the six months ended
October 31, 2012

8,739

-12,283526

10,501

April 30, 2012

4,144

-32,217

23,664

13,5192．FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING APRIL 30, 2013 (November 1, 2012 to April 30, 2013)
Distribution perDistribution in

Operating Revenues

Operating Income

Ordinary Income

Net Income

Unit Excluding

Excess of(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

Excess ofEarnings per Unit

Earnings (Yen)

(Yen)

8,880

0

For the six months
endingApril 30, 2013

9,365(-8.3%)

3,944(-12.7%)2,547(-15.4%)2,545(-15.4%)(Reference) Estimated net income per unit for the fiscal period ending April 30, 2013: ¥8,881
Forecasted number of investment units issued and outstanding as of April 30, 2013: 286,550 units

3．OTHER(1) Changes in Accounting Policies・Changes in Accounting Estimate・Retrospective Restatement(a) Changes concerning accounting policy accompanying amendments to accounting standards: No(b) Changes other than (a): No(c) Change in accounting estimate: No(d) Retrospective restatement: No(2) Number of Investment Units Issued and Outstanding (including treasury units)(a) Number of investment units issued and outstanding at period end (including treasury units)
As of October 31, 2012: 286,550 units
As of April 30, 2012: 286,550 units(b) Number of treasury units at period end
As of October 31, 2012: 0 units
As of April 30, 2012: 0 units
Note: Please refer to page 30 “Notes to the Information per Unit” for the calculation of net income per unit.

*Details concerning actual status of auditing procedures
As of the disclosure of this financial report, auditing procedures for financial statements based on the Financial Instruments andExchange Law are underway.
*Explanation on the appropriate use of the forecast of results and other matters of special consideration
The forecast of results for the sixteenth fiscal period ending April 30, 2013 are calculated as of December 12, 2012 based on theassumptions presented on page 9 “Preconditions and Assumptions for the Fiscal Period Ending April 30, 2013.” Readers areadvised that actual operating revenues, operating income, ordinary income, net income and distribution per unit may differ
significantly from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of
the forecast distribution per unit.

This notice is an English-language translation of the original Japanese announcement on our Web site released on December 12, 2012. However, noassurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shallprevail in the case of discrepancies between this translation and the Japanese original.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

1.

Basic Structure — Overview of Companies Related to the Investment Corporation
There were no major changes to the “Structure of the Investment Corporation” from the most recent securities report (submitted on July 30,2012) and extraordinary report (submitted on August 30, 2012), accordingly this information has been omitted from this document.

2.

Management Policy and Operating Conditions(1) Management Policy
There were no major changes to the “Investment Policy,” “Investment Strategy” and “Distribution Policy” from the most recent securities report(submitted on July 30, 2012) and extraordinary report (submitted on August 30, 2012), and accordingly this information has been omitted fromthis document.
(2) Operating Conditions(1) Operating Conditions for the Fifteenth Fiscal Period (fiscal period ended October 31, 2012)
A. The Investment Corporation
The Investment Corporation was established on May 6, 2005 in accordance with the Investment Trust and Investment Corporation Law (“theInvestment Trust Law”). On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo
Stock Exchange with a total of 75,400 investment units issued and outstanding (Securities Code: 8972). Subsequently, the Investment
Corporation raised funds through public offerings and other means including four global offerings. As a result, as of October 31, 2012, the end of
the fifteenth fiscal period, the number of investment units issued and outstanding totaled 286,550 units.
The Investment Corporation appointed Kenedix Office Partners, Inc. (Note) as its asset management company. In collaboration 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 the basic policy of conducting dynamic and flexible investment
stance that seeks to respond to its environment and market trends, and endeavors to ensure a timely response to opportunities. The Investment
Corporation has partially changed the management guidelines contained in the company regulations of the Asset Management Company as of
September 1, 2012, and raised the lower limit of the investment ratio of office buildings along with changing the upper limits, etc. of theinvestment ratio of other types of properties.
Note: As of September 1, 2012, Kenedix REIT Management, Inc. changed the company name. Same applies below.

B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review (fiscal period ended October 31, 2012) the Japanese economy had been on an ongoing gradual recovery
due to solid internal demand, but there are negative factors in future prospects such as concerns remaining for the pace of recovery of exports. On
the other hand, even with such negative factors, it is generally expected that the recovery will continue in fiscal 2012 as earthquake disasterreconstruction-related demand such as for public, residential and capital investment drives the economy. After reconstruction demand recedes
there will be a need to cover the decrease in internal demand by relying on external demand, but because a rapid recovery of overseas economies
is not likely, movements for economic recovery are also expected to slow down.
Concerning office building leasing market conditions, sizeable vacant spaces at several mainly newly built large-scale buildings have beenrelieved, and the vacancy rate is dropping again. The sense of the rent level bottoming out, which is spreading through the market, and theawareness for earthquake resistance that increased after the Great East Japan Earthquake is boosting full-fledged relocations to newly built
building and relatively new rental buildings (including temporary relocations for the purpose of rebuilding). In addition to newly built buildings
with sizeable vacancies, vacancies that increased due to the large supply and spaces vacated by tenants relocating to their newly built
own-company buildings are also serving as the recipients of large-scale relocations, and cases of large-scale relocations are becoming
increasingly prominent.
In the office building transaction market, movements for new investment by leading domestic real estate companies, real estate funds, etc. arenoticeable due to the favorable funding environment. Furthermore, with the new listing of a J-REIT that includes office buildings for investment,
etc., the demand for office buildings is increasing. Furthermore, the number of transactions where J-REITs invest in silent partnerships has
increased.
(b) Management Performance
As of the end of the fourteenth fiscal period (fiscal period ended April 30, 2012), the Investment Corporation owned 83 properties with a totalacquisition price of ¥286,866 million and preferred equity securities (investment of ¥891 million). During the fiscal period under review (fiscal
period ended October 31, 2012), the Investment Corporation acquired three office buildings (Fuchu South Building, Kasuga Business Center
Building, Nakameguro Business Center Building: total acquisition price of ¥10,800 million) located in the Tokyo Metropolitan Area and sold
KDX Omori Building (initial acquisition price of ¥3,500 million) and Gradito Kawaguchi (initial acquisition price of ¥1,038 million) (total sales-3-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

price of ¥5,060 million).
As a result, the number of properties owned as of October 31, 2012 (excluding the preferred equity securities, same applies below.) amounts to
84, with a total acquisition price of ¥293,128 million. Looking at the portfolio as a whole, 92.6% was comprised of office buildings, 4.2% ofcentral urban retail properties, 2.8% of residential properties and 0.2% of others on an acquisition price basis. The occupancy ratio as of the endof the fifteenth fiscal period was 95.5% reflecting stable investment and asset management.
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 have strived tosecure consistent policies, specifications and procedures along with ensuring swift service with a high degree of quality.
In terms of leasing, the Investment Corporation sought out potential demand by maintaining close relationships with brokers given the trendsof the economy and real estate market. Moreover, in order to maintain and increase the competitiveness of office buildings, renovation of air
conditioning, repair of common areas, etc. were implemented according to the plan.
As a result, even under a continually severe leasing environment, as of the end of the period under review the occupancy ratio of theInvestment Corporation’s owned office buildings in the Tokyo Metropolitan Area stood at 96.2% and that for the Investment Corporation’s
office buildings overall stood at 95.2%, an increase of 0.1% from the end of the previous fiscal period, and a generally stable occupancy ratio
has been maintained for office buildings overall.
Furthermore, with the termination of the leasing agreement for the major tenant at KDX Nihonbashi Kabutocho Building (Note) on
November 30, 2012, the building is now fully vacant. The Investment Corporation will focus on leasing up the building as soon as possible.
Note: As of December 1, 2012, the Investment Corporation changed the property name from “Kabutocho Nikko Building” to “KDX Nihonbashi Kabutocho
Building.” Same applies below.

Stable Management through Large Number of Tenants and Tenant Diversification by Sector
The number of end-tenants for our office buildings was 852 as of the end of the fiscal period under review (fiscal period ended October 31,2012). Floor area leased to the largest office end-tenant as a proportion of total leased floor area of the total portfolio was at 5.2% (Note) and7.9% (Note) for the top 3 office building tenants. This illustrates our diversification of tenants. Furthermore, tenants of office buildings are invarious sectors. As a result, we believe the impact by a certain end-tenant vacating the property or sluggish performance in certain sectors
would have a relatively limited effect.
Note: The largest office end-tenant is SMBC Nikko Securities Inc. When including the affiliates of SMBC Nikko Securities Inc. who are tenants of Kabutocho
Nikko Building II, the ratio for the largest office end-tenant as a proportion of total leased floor area of the total portfolio stood at 5.6% and 8.3% for the
top 3 office building tenants. Moreover, SMBC Nikko Securities Inc. has terminated the leasing agreement on November 30, 2012 concerning KDX
Nihonbashi Kabutocho Building. The ratio of the portion of termination to the portfolio total leased floor area as of the end of the fiscal period underreview is 2.3%.

C. Capital Acquisition(a) Status of Borrowings
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates and extending borrowing periods for
its interest-bearing debt. During the fiscal period under review (fiscal period ended October 31, 2012), the Investment Corporation undertook
long-term borrowings of ¥7,000 million (Note 1) to acquire additional assets and ¥17,500 million (¥13,000 million in long-term borrowings and¥4,500 million in short-term borrowings (Note 1)) to repay borrowings that matured during the fiscal period. In addition, interest rate costs havebeen reduced with repayment of ¥2,640 million of long-term borrowings before maturities. As a result, the balance of interest-bearing debt
amounted to ¥140,581 million as of October 31, 2012, comprising ¥134,581 million in borrowings (¥128,881 million in long-term borrowings and¥5,700 million in short-term borrowings) and ¥6,000 million in investment corporation bonds.
Furthermore, as of October 31, 2012, ¥35,300 million out of ¥21,500 million of long-term borrowings, which have floating interest rates, havebeen hedged and fixed by utilizing interest-rate swap agreements. In addition, the long-term debt ratio (Note 2) was 95.9% and the long-term fixedinterest debt ratio (Note 3) was 86.1%.
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date. However, theborrowings whose period until repayment date have surpassed one year because the repayment date one year from the drawdown date is not abusiness day and for which the repayment date has been moved to the following business day are included in short-term borrowings. Long-termborrowings refer to borrowings with a period of more than one year from the drawdown date to the repayment date. The same classification criteria
apply to other borrowings listed below.
Note 2: 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 to the nearest first decimal place.
Note 3: Long-term fixed interest debt ratio = (Balance of long-term fixed interest rate borrowings + Balance of investment corporation bonds) / (Total
borrowings + Balance of investment corporation bonds) The balance of long-term fixed interest rate borrowings includes borrowings with floatinginterest rates effectively fixed by utilizing interest-rate swap agreements. Long-term fixed interest debt ratio is rounded to the nearest first decimal
place.

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KENEDIX REALTY INVESTMENT CORPORATION (8972)

The balance of borrowings according to financial institutions as of April 30, 2012 and October 31, 2012 are as follows:

LenderFourteenth Fiscal Period(as of April 30, 2012)

Fifteenth Fiscal Period(as of October 31, 2012)(Millions of Yen)

(Millions of Yen)

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

Sumitomo Mitsui Banking Corporation

31,992.5

34,161.0

25.4

Development Bank of Japan Inc.

26,667.5

26,745.0

19.9

Aozora Bank, Ltd.

19,687.5

19,675.0

14.6

Sumitomo Mitsui Trust Bank, Limited

17,725.0

17,700.0

13.2

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,300.0

16,300.0

12.1

Mitsubishi UFJ Trust and Banking Corporation

9,200.0

9,200.0

6.8

Resona Bank, Ltd.

7,300.0

7,300.0

5.4

Mizuho Bank, Ltd.

1,000.0

2,000.0

1.5Mizuho Trust & Banking Co., Ltd.

1,000.0

1,000.0

0.7

The Bank of Fukuoka, Ltd.

500.0

500.0

0.4

Total
131,372.5
Note 4: Percentages are rounded down to the nearest first decimal place.

134,581.0

100.0(b) Status of Credit Rating
The status of the credit ratings as of October 31, 2012 is as follows:
Credit Rating Agency
Details of the Ratings
Rating of Long-Term Senior Debts
A (Outlook: Positive)
Japan Credit Rating Agency, Ltd.
Ratings on Bonds
A
Rating of Shelf Registration(c) Status of Shelf Registration
The Investment Corporation filed a debt shelf registration statement on February 4, 2011. Details are as follows:
Investment Corporation Bond
Planned Issue Amount¥100,000,000,000
Planned Issuance Period February 15, 2011 to February 14, 2013
Acquisition funds for specified assets, repayment of borrowings, repayment ofinvestment corporation bonds, refund of lease and guarantee deposits, funds to pay for repairs andUse of Funds
maintenance, working capital, etc.
The Investment Corporation’s Second Series Unsecured Investment Corporation Bonds of ¥3,000,000,000 were issued in March 2007
based on the debt shelf registration statement filed in February 2007. In addition, the Investment Corporation’s Third Series Unsecured
Investment Corporation Bonds of ¥1,500,000,000 and Fourth Series Unsecured Investment Corporation Bonds of ¥1,500,000,000 were
issued based on the debt shelf registration statement filed in February 2011 in September 2011 and March 2012, respectively.
On February 4, 2011, the Investment Corporation filed an equity shelf registration statement again to continue to secure opportunity for
flexible equity financing. Details are as follows:
Investment Unit Certificate
Primary Offering
Secondary Offering
Planned Issue Amount¥100,000,000,000¥15,000,000,000
February 15, 2011 to
February 15, 2011 toPlanned Issuance Period
February 14, 2013
February 14, 2013
Acquisition funds for specified assets, repayment of Not applicableborrowings, repayment of investment corporation
Use of Funds
bonds, refund of lease and guarantee deposits, funds topay for repairs and maintenance, working capital, etc.
There has not yet been any primary offering or secondary offering based on the abovementioned investment unit certificate shelfregistration.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥10,212 million,
operating income of ¥4,516 million, ordinary income of ¥3,011 million and net income of ¥3,009 million for its fifteenth fiscal period (fiscal
period ended October 31, 2012).
Cash distributions are paid out to the application of Article 67-15 of the Special Taxation Measures Law. In addition, the Investment Corporation
has decided to book a portion of its unappropriated retained earnings to internal reserve as a reserve for reduction entry based on application of
the “Special Provisions for Taxation in the Event of Advance Acquisition of Land, etc. in 2009 and 2010” (Article 66-2 of the Special Taxation
Measures Law) in the fiscal period under review. In accordance with this policy, following the posting of this reduction entry reserve, theInvestment Corporation deducted ¥271 million from net income to be set aside as a reduction reserve, the posting of which falls within the scopein application of provisions in Article 66-2 and Article 67-15 of the Special Taxation Measures Law. Subsequently, almost all the remaining net
income was distributed to unitholders, yielding ¥9,557 per unit.
(2) Outlook
A. Investment Environment
With regard to the outlook of the Japanese economy, though there are said to be continued underlying strengths, with the backdrop of theslowdown of the global economy and such, it is generally expected that weak movements may continue for the time being. It is then expectedthat the economy will again head towards recovery as earthquake disaster reconstruction-related demand continues to emerge and conditions inoverseas economies improve, but uncertainty of the economic environment in places such as Europe and China is high. Amid such conditions,further downturn of the global economy, fluctuation of financial and capital markets, etc. pose downside risks to the Japanese economy.
Furthermore, trends in revenue and income, the impact of deflation and such needs to be watched carefully.
Concerning the office building leasing market, according to figures announced by Miki Shoji Co., Ltd., as of the end of October 2012 theaverage vacancy rate of Tokyo’s five central wards (Tokyo’s business district) was 8.74%, a decrease of 0.16 points from the previous month.
Since four new buildings were completed with near full occupancy and leasing contracts were being concluded at existing buildings, overallvacant space in Tokyo’s business district decreased by approximately 10,000 tsubos in the last month. The average vacancy rate has been
improving for four consecutive months. On the other hand, average rent in Tokyo’s business district at the end of October 2012 continues to be
on a weak note and a slight decline has been ongoing since July 2012.
In the office building transaction market, there can be seen many acquisitions of properties primarily by J-REITs, funds and domestic real estatecompanies, and also by businesses, not in the real estate industry, that can procure funds at a low cost such as railroad companies, life insurancecompanies, etc. and wealthy private domestic individuals who prefer small-scale properties. In addition, there are increasing cases of formationsof private REITs and listing of new J-REITs primarily by leading domestic real estate companies.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting dynamic and flexible investment stance that seeks to respond to its
environment and market trends, and endeavors to ensure a timely response to opportunities. From this standpoint and in light of the investment
environment described above (the Japanese economy, leasing market for office buildings, real estate transaction market, etc.), the Investment
Corporation creates a property investment strategy, existing property management strategy, and financial strategy in a dynamic and flexible
manner as set forth below.
(a) New Property Investment Strategy and Sales Policy
The Investment Corporation aims for further expansion of its asset size, with the goal of “forming a firm portfolio focusing on mid-sized officebuildings” and to become the “No. 1 J-REIT for mid-sized office buildings.” The Investment Corporation believes that keeping mid-sized officebuildings in the Tokyo Metropolitan Area, as its focus while maintaining an investment strategy which aims for a certain degree of regional
diversification, will be a foundation for constructing a superior portfolio and differentiating the Investment Corporation from others in thebusiness.
Moreover, when acquiring assets, bearing in mind such matters as the securing of property pipelines in the future and revenues during the period,
the Investment Corporation is striving to diversify investment methods also taking into consideration the balance of financing sources, such as
fund-type investment through investments in silent partnerships and real estate backed securities, and is also strengthening the sourcing of
information on portfolio deals.
In selling properties, the Investment Corporation will examine the sale of properties individually in considering the use of funds for replacementof assets through property acquisition or fund-type investments. Of this, concerning central urban retail properties, residential properties andothers (Note), the Investment Corporation will not only refrain from conducting new investments in principle, 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. On the other hand,-6-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

the Investment Corporation will decide on the sale of office buildings individually by considering the current profitability, revenue projections
that take into account future market trends, building age, area and property size, among other factors, and also in light of the significance of theproperty’s presence in the portfolio.
Note: As of December 12, 2012, the Investment Corporation does not own any properties that is classified in others due to the sale of Kanazawa
Nikko Building on November 1, 2012.
(b) Existing property management strategy
The Investment Corporation has appointed the Asset Management Company as its sole property management company for the entire portfolio
as of the end of the fifteenth fiscal period (fiscal period ended October 31, 2012). In establishing a single point of contact for all matters relating toproperty management activities, the Investment Corporation strives to secure consistent policies, specifications and procedures along withensuring swift and quality service.
Taking into consideration economic and real estate market trends, the Investment Corporation adopts a tenant-oriented approach to its leasing
activities with aims of ensuring a timely and flexible response as well as optimal tenant satisfaction. Accordingly, the Investment Corporation will
aim to maintain / increase cash flow by offering office environments with high tenant satisfaction. Based on the aforementioned, the AssetManagement Company undertakes property management activities as follows:・Take measures to maintain and raise competitiveness of properties
・Tailor leasing management according to the market environment
・Apply careful control of management and operating costs by taking advantage of portfolio size
・Ensure appropriate response to relevant laws and regulations
・Develop a proactive environmental response
Take measures to maintain and raise competitiveness of properties
The Investment Corporation will implement operation and management in close contact with the actual properties and further enhance themanagement level. Some specific examples of this are the installation of public wireless LAN services (installed at 61 properties located within
NTT East’s service area as of November 30, 2012) and installation of automated external defibrillators (AEDs) (installed at 73 properties as ofNovember 30, 2012) in consideration of business continuity plans (BCP) and its corporate social responsibilities (CSR).
Furthermore, tenants at properties are positioned as important “customers” and the perspective of customer satisfaction (CS) is applied to the
management of properties. The Investment Corporation has conducted a CS survey targeting the tenants of its office buildings four times incooperation with J.D. Power Asia Pacific, Inc., an internationally recognized company that engages in customer satisfaction evaluation(requesting those in charge of general affairs and employees of tenants to complete a questionnaire on the hard aspects such as the building andfacilities as well as on the soft aspects such as management and operation, consisting of multiple items for evaluation and open-ended questions).
By conducting such surveys continuously and meeting tenant needs, the Investment Corporation is aiming to improve customer satisfaction
while also maintaining and improving the competitiveness and asset value of its properties.
Tailor leasing management according to the market environment
The characteristics of mid-sized office buildings, which are the primary target of the Investment Corporation’s investment, are that many of thetenant turnover ratios are relatively high. Therefore, in the leasing aspect, the Investment Corporation implements leasing activities in a timely
and flexible manner by adopting the basic policy of endeavoring to maximize revenues for the medium- to long-term through maintaining
occupancy ratios, while taking into account economic and real estate market trends.
Concerning the solicitation of new tenants, the Investment Corporation strives to shorten the period of vacancy and boost the occupancy ratio byimplementing dynamic and flexible leasing activities through the sharing of information closely with leasing brokers, holding of previews,
marketing directly to corporations, utilizing guarantee companies and other measures while closely watching market conditions and timing ofchanges going forward.
Apply careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation will carefully control the quality of property management and operating costs and reduce building maintenance andoperating costs by taking advantage of the portfolio size in building maintenance costs and construction bidding.
Ensure appropriate responses to relevant laws and regulations
The Investment Corporation will gather information on the Building Standards Law and other relevant laws and regulations and any futurerevisions, in a timely manner and will respond as necessary while considering compliance.
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KENEDIX REALTY INVESTMENT CORPORATION (8972)

Develop a proactive environmental response
The Investment Corporation is designated as a specified corporation pursuant to the Act on the Rational Use of Energy. The Investment
Corporation will research on energy saving and environmental friendliness of mid-sized office buildings, develop medium- to long-term energy
saving plans and reduction targets, and proactively institute measures in terms of both hardware (buildings and facilities) and soft services(operating and management services) in an aim to ensure the simultaneous pursuit of return on investment and social benefits.
(c) Financial Strategy (Debt Financing)
As the environment for procuring interest-bearing debt is continuing to improve, the Investment Corporation is determined to continue to work
to improve the terms and conditions of borrowings.
In addition, by taking the following measures, etc., the Investment Corporation aims for stable financial management.
・Reduce refinance risk by diversifying maturities of interest-bearing debt
・Have the procurement ratio of long-term borrowings above a certain level・Control the rate of interest-bearing debt (Note) in a conservative manner (the Investment Corporation will continue to aim to keep the ratio ofinterest-bearing debt to total assets (LTV) at less than 45% as a rule. However, it will also remain open to the option of increasing LTV to theupper 40% level in the event of debt financing conducted for the purpose of acquiring competitive properties or otherwise.)Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial institutions,especially mega-banks, trust banks and Development Bank of Japan, Inc., as well as aim for more conservative financial management. In
addition, the Investment Corporation aspires to pay attention to the share of each bank and consider as appropriate the introduction oftransactions with new banks based on comparison with the conditions with currently transacting banks.
Note: Interest bearing debt ratio = Interest-bearing debt at end of period / Total assets(d) Information Disclosure
Consistent with its basic information disclosure policy, the Investment Corporation proactively engages in IR activities with the aim of promptly
providing a wide range of relevant information to investors. In specific terms, the Investment Corporation provides information through theTimely Disclosure Network System (TDnet), which is a system operated by the Tokyo Stock Exchange, as well as press releases and its Web site
(URL: http://www.kdx-reit.com/eng/ ).
(3) Important Subsequent Events
The important subsequent events following the close of the fifteenth fiscal period (fiscal period ended October 31, 2012) are as follows.
Sales of Property
The Investment Corporation has concluded a purchase and sales agreement and sold the following property on November 1, 2012.
Kanazawa Nikko Building
Property Name
Trust beneficiary interest in real estate
Type of Assets for Sale
Location (Address)
4-65 Minamicho, Kanazawa-shi, Ishikawa
Buyer
Not disclosed (Note)
Sales Price¥780 million
Capital gains from the sale are estimated to be ¥80 million for the sixteenth fiscal period. The aforementioned sales price excludes sales costs, adjusted amounts
for property and city-planning tax, consumption tax, regional consumption tax, etc.
Note: Name and attributes, etc. of the buyer is not shown as the buyer has not consented to such disclosure.

-8-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(4) Outlook
Forecasts for the sixteenth fiscal period (November 1, 2012 to April 30, 2013) are presented as follows. Please refer to the “Preconditions andAssumptions for the Fiscal Period Ending April 30, 2013” below for factors that underpin forecasts.
The main factors for increase and decrease from the fifteenth fiscal period (fiscal period ended October 31, 2012) are as follows.
(Operating revenues)
 Decrease of ¥595 million from gain on sale of KDX Omori Building which was sold in the fifteenth fiscal period Decrease of ¥214 million from fees for restoration to original state at KDX Nihonbashi Kabutocho Building implemented in the fifteenthfiscal period Decrease of the occupancy ratio due to move out of a key tenant at KDX Nihonbashi Kabutocho Building Estimated ¥80 million of gain on sale of properties from sale of Kanazawa Nikko Building dated November 1, 2012
(Operating expenses)
 Decrease of ¥151 million of loss on sale of Gradito Kawaguchi sold in the fifteenth fiscal period Decrease of ¥174 million from fees for restoration to original state at KDX Nihonbashi Kabutocho Building implemented in the fifteenthfiscal period
 Expenses accrued from value-up works and leasing activities for KDX Nihonbashi Kabutocho Building.
Forecasts for the sixteenth fiscal period (November 1, 2012 to April 30, 2013)
Operating Revenues¥9,365 million
Operating Income¥3,944 million
Ordinary Income¥2,547 million
Net Income¥2,545 million
Distribution per Unit
¥8,880Distribution in Excess of Earnings per Unit
¥0
Note: Forecast figures are calculated based on certain assumptions. Readers are advised that actual operating revenues, net income and distribution per unit may differ
significantly from forecasts due to a variety of reasons. Accordingly, the Investment Corporation does not guarantee payment of the forecast distribution per unit.

“Preconditions and Assumptions for the Fiscal Period Ending April 30, 2013”
Preconditions and Assumptions
Calculation Period The sixteenth fiscal period: November 1, 2012 to April 30, 2013 (181 days)
Property Portfolio
 Forecasts are based on the 83 properties held as of December 12, 2012, and the number of properties remaining
unchanged up to and including the end of the sixteenth fiscal period.
 The Investment Corporation owns TMK preferred equity securities other than the abovementioned properties.
 The property portfolio may change due to a variety of factors in the future.
Operating Revenues
 Rental revenues are estimated based on valid leasing agreements as of December 12, 2012 and by considering
variable factors, such as seasonal factors against the backdrop of historical performance, as well as leasing
conditions, such as the recent deterioration of real estate market conditions, in addition to the difference in
number of operating days due to movements in existing investment assets.
 As announced in the press release “Notice Concerning Change of Major End-Tenant” dated May 31, 2012, SMBC Nikko
Securities Inc. which was a tenant at KDX Nihonbashi Kabutocho Building, terminated its lease agreement as of November
30, 2012, and rent is not generated after December 1, 2012. Consequently, a decrease in operating revenues is expected.

 The Investment Corporation has completed settlement of the sale of Kanazawa Nikko Building on November
1, 2012, and capital gains from the sale are estimated to be ¥80 million.
 Forecasts are based on the assumption that there will be no rent in arrears or non-payments from tenants.
Operating Expenses

 Property-related expenses other than depreciation are based on the difference in number of operating days due
to movements in existing investment assets and historic expenses, adjusted to reflect expense variables
including seasonal factors.
 An amount of ¥956 million has been assumed for property management fees and facility management fees
(property management and building maintenance fees, etc.).
 An amount of ¥809 million has been assumed for taxes and public dues (property tax and city-planning tax,etc.).
 An amount of ¥1,673 million has been assumed for depreciation expense.
 An amount of ¥207 million has been assumed for repairs, maintenance and renovation expenses.
Repairs, maintenance and renovation expenses are estimated based on the amounts budgeted by the asset-9-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Operating Expenses

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 estimatedamounts due to unforeseen circumstances or emergencies.
 In general, property tax and city planning tax are allocated to the seller and purchaser on a pro rata basis at thetime of acquisition settlement. In the case of the Investment Corporation, an amount equivalent to the portion
allocated to the purchaser is included in the acquisition price of the property.

Non-Operating Expenses

 The Investment Corporation is amortizing unit issuance costs over a period of three years using the straight-line
method.
 Interest payable (including financing related expenses etc.) of ¥1,363 million is assumed for the sixteenth fiscal
period.

Extraordinary Profit/Loss
Debt Financing and Investment
Corporation Bonds

 Extraordinary profit/loss is not assumed.
 The balance of the borrowings and the investment corporation bonds as of December 12, 2012 are ¥134,581
million and ¥6,000 million, respectively.
 Of the borrowings as of December 12, 2012, a total of ¥8,411.5 million (short-term borrowings: ¥1,200 million
and long-term borrowings: ¥7,211.5 million) in borrowings are due during the sixteenth fiscal period. However,all borrowings are presupposed to be refinanced excluding ¥211.5 million of the partial payment.

Investment Units Issued andOutstanding The number of investment units issued and outstanding as of December 12, 2012 is 286,550 units. Forecasts
are based on the assumption that the number of investment units issued and outstanding shall remainunchanged for the sixteenth fiscal period.

Distributions per Unit Distributions per unit are calculated in accordance with the distribution policy outlined in the Investment
Corporation’s Articles of Incorporation.
 Actual distributions per unit may differ significantly from forecasted figures due to a variety of reasons
including movements in investment assets, rental revenues impacted by tenant movements or the incidence ofmajor unforeseen renovation expense.

Distributions in Excess of
Earnings per Unit
Other

 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 andin real estate and other markets.

-10-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

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

Fifteenth Fiscal Period(As of April 30, 2012)(As of October 31, 2012)ASSETS
Current assets
Cash and deposits

6,924,146

4,042,506

Cash and deposits in trust

7,095,792

7,471,423

Accounts receivable-trade176,474

425,745

Prepaid expenses

67,01475,637

Consumption taxes receivable

220,729

-

3,432

3,786

14,487,589

12,019,100

Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings

14,959,843

15,104,975

Accumulated depreciation-2,178,129-2,373,323

Buildings, net

12,781,714

12,731,652

Structures

23,001

23,001

Accumulated depreciation-6,447-7,149Structures, net

16,55315,851

Machinery and equipment

355,857

355,857

Accumulated depreciation-95,707-107,192

Machinery and equipment, net

260,149

248,665

Tools, furniture and fixtures

78,29578,295

Accumulated depreciation-24,669-27,834

Tools, furniture and fixtures, net

53,62550,461

29,104,205

29,104,205

81,938,473

84,820,308

Accumulated depreciation-12,252,860-13,109,892

Buildings in trust, net

69,685,613

71,710,415

245,635

240,433

Land
Buildings in trust*2

Structures in trust
Accumulated depreciation-88,670-93,545

Structures in trust, net

156,964

146,888

Machinery and equipment in trust

1,184,280

1,193,065

Accumulated depreciation-494,371-530,568

Machinery and equipment in trust, net

689,909662,496

Tools, furniture and fixtures in trust

351,383

355,008

Accumulated depreciation-185,982-198,785

Tools, furniture and fixtures in trust, net

165,401

156,222

172,834,060

176,829,277

Land in trust
Construction in progress in trust

6,894

6,699

285,755,092

291,662,835

Leasehold right

285,350

285,350

Leasehold right in trust

73,30472,530Total property, plant and equipment
Intangible assets

Right of using water facilities in trust
Total intangible assets

671

553

359,326

358,433

896,655

896,655

Investments and other assets
Investment securities-11-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
10,00010,000

Lease and guarantee deposits
Lease and guarantee deposits in trust

123,712

123,712Long-term prepaid expenses

1,528,273

1,574,533

Total investments and other assets

2,558,640

2,604,900

288,673,059

294,626,169

Investment corporation bond issuance costs

39,40532,669Investment unit issuance expenses

83,99056,709Total deffered assets

123,396

89,378303,284,044

306,734,648

Total noncurrent assets
Deferred assets

Total assets(Thousands of Yen)
Fourteenth Fiscal Period

Fifteenth Fiscal Period(As of April 30, 2012)(As of October 31, 2012)

Liabilities
Current Liabilities
Accounts payable
Short-term loans payable
Current portion of investment corporation bondCurrent portion of long-term loans payable

604,452

709,188

14,700,000

5,700,000-

1,500,000

11,880,000

14,000,000

Accounts payable-other170,672

184,972

Accrued expenses

205,540

190,825

Income taxes payable

1,385

978

Accured consumption taxes

13,372

136,343

Advances received

1,887,967

1,482,862

Deposits received

27,24918,96329,490,639

23,924,135

Investment corporation bond

6,000,000

4,500,000

Long-term loans payable

Total current liabilities
Noncurrent liabilities

104,792,500

114,881,000

Tenant leasehold and security deposits

1,541,929

1,544,989

Tenant leasehold and security deposits in trust

11,395,973

11,494,978Total noncurrent liabilities

123,730,402

132,420,968

153,221,042

156,345,104

147,153,820

147,153,820

Reserve for reduction entry

368,795

225,795

Total voluntary reserve368,795

225,795

Unappropriated retained earnings(undisposed loss)

2,540,386

3,009,927

Total surplus

2,909,182

3,235,723

150,063,002

150,389,544

150,063,002

150,389,544

303,284,044

306,734,648

Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus

Total unitholders' equity
Total net assets*1

Total liabilities and net assets-12-

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

Fifteenth Fiscal Period

November 1, 2011 to April 30, 2012

May 1, 2012 to October 31, 2012

Operating revenue
Rent revenue-real estate*1

8,071,923

8,224,059

Other lease business revenue*1

1,018,730

1,393,295

Gain on sales of real estate properties*2-595,516

9,090,653

10,212,870

4,284,756

4,822,166-

151,823

491,072

548,084

Total operating revenue
Operating expenses
Expenses related to rent business*1

Loss on sales of real estate properties*2

Asset management fee
Directors' compensation

6,669

7,800

Asset custody fee

26,373

18,614

Administrative service fees

54,352

49,924

Audit fee

10,80010,800

Other operating expenses

130,282

86,975

Total operating expenses

5,004,307

5,696,188

4,086,345

4,516,682

Interest income

674

857

Dividends and redemption-prescription

1,714

964

Operating income
Non-operating income

Interest on refund

-

1,098

Reversal of Provision for loss on disaster

2,333

-

Total non-operating income

4,723

2,919

Interest expenses

948,755

1,031,027

Interest expenses on investment corporation bonds

110,175

62,743

Borrowing related expenses

Non-operating expenses

444,046

366,755

Amortization of investment corporation bond issuance costs

9,000

6,735

Amortization of investment unit issuance expenses

27,281

27,281-

13,823

1,539,259

1,508,367

2,551,809

3,011,234

10,000-

Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Litigation settlement
Total Extraordinary loss

10,000-

Income before income taxes

2,541,809

3,011,234

1,520

1,421

Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)

-13-

6

16

1,526

1,438

2,540,282

3,009,795

103

132

2,540,386

3,009,927

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

Fifteenth Fiscal Period

November 1, 2011 to April 30, 2012

May 1, 2012 to October 31, 2012

Unitholders' equity
Unitholders' capital
Balance at the start of current period

147,153,820

147,153,820

Changes of items during the period
Total changes of items during the period--

147,153,820

147,153,820

65,795

368,795

303,000-

Reversal of reserve for reduction entry--143,000

Total changes of items during the period

303,000-143,000

368,795

225,795

65,795

368,795

Provision of reserve for reduction entry

303,000-

Reversal of reserve for reduction entry--143,000

Total changes of items during the period

303,000-143,000

368,795

225,795

3,052,837

2,540,386

Balance at the end of current period*

Surplus
Voluntary reserve
Reduction entry
Balance at the start of current period
Changes of itemes during the period
Provision of reserve for reduction entry

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

Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the start of current period
Changes of itemes during the period
Provision of reserve for reduction entry-303,000-

Reversal of reserve for reduction entry-

143,000

Distribution from surplus-2,749,733-2,683,254

Net income

2,540,282

3,009,795

Total changes of items during the period-512,451

469,541

2,540,386

3,009,927

3,118,633

2,909,182--

Balance at the end of current period
Total Surplus
Balance at the start of current period
Changes of itemes during the period
Provision of reserve for reduction entry
Reversal of reserve for reduction entry--

Distribution from surplus-2,749,733-2,683,254

Net income

2,540,282

3,009,795

Total changes of items during the period-209,451

326,5412,909,182

3,235,723

150,272,453

150,063,002

Distribution from surplus-2,749,733-2,683,254

Net income

2,540,282

3,009,795

Total changes of items during the period-209,451

326,541

150,063,002

150,389,544

Balance at the end of current period
Total unitholders' equity
Balance at the start of current period
Changes of items during the period

Balance at the end of current period-14-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Total net assets
Balance at the start of current period

150,272,453

150,063,002

Distribution from surplus-2,749,733-2,683,254

Net income

2,540,282

3,009,795

Total changes of items during the period-209,451

326,541

150,063,002

150,389,544

Changes of items during the period

Balance at the end of current period-15-

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

Fourteenth Fiscal Period(November 1, 2011 to April 30, 2012)(May 1, 2012 to October 31, 2012)

2,540,386,573

3,009,927,991

Reversal of reserve for reduction entry

143,000,000-

III. Total Distribution

I. Retained earnings at the end of period
II. Voluntary retained earnings (reversal)

2,683,254,200

2,738,558,350(Distribution per Unit)
IV. Voluntary retained earnings (provision)(9,364)(9,557)

Provision for reserve for reduction entry-

271,247,024

132,373

122,617

In accordance with the policy depicted in Article

In accordance with the policy depicted in Article

35-1 of its Articles of Incorporation, the Investment

35-1 of its Articles of Incorporation, the Investment

Corporation determines that the amount ofCorporation determines that the amount of

distribution shall exceed the amount equivalent to

distribution shall exceed the amount equivalent to

90% of its distributable profit as stipulated in Article

90% of its distributable profit as stipulated in Article

67-15 of the Special Taxation Measures Law, and67-15 of the Special Taxation Measures Law, andshall be up to the amount of its profits as the ceiling.

shall be up to the amount of its profits as the ceiling.

Following this policy, the Investment Corporation

Following this policy, the Investment Corporation has

has decided that, based on the total amount for

decided that, of the amount remaining after thewhich the reversal of reserve for reduction entry is

reserve for reduction entry as stipulated in Article

added to unappropriated retained earnings, it shall66-2 of the Special Taxation Measures Law isdistribute ¥2,683,254,200, which is the maximum

deducted from unappropriated retained earnings, it

integral multiple to 286,550 units issued andshall distribute the maximum amount of retained

outstanding as the distribution of earnings.

earnings at the period-end, namely totaling

V. Retained Earnings brought forward to thenext period
Method of calculating the distribution
amountProcedures for the distribution of amounts¥2,738,558,350 to 286,550 units issued andexceeding distributable income are outlined inoutstanding.
Procedures for the distribution of amounts

Article 35-2 of the Investment Corporation’s
Articles of Incorporation. In its fiscal period underreview, the Investment Corporation has decided not
to distribute cash in excess of distributable profit.

exceeding distributable income are outlined in Article
35-2 of the Investment Corporation’s Articles ofIncorporation. In its fiscal period under review, theInvestment Corporation has decided not to distributecash in excess of distributable profit.

-16-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(5) Statements of Cash Flows
Fourteenth Fiscal Period

Fifteenth Fiscal Period

November 1, 2011 to April 30, 2012

May 1, 2012 to October 31, 2012

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

2,541,809

3,011,234

Depreciation and amortization

1,578,845

1,621,150

Amortization of long-term prepaid expenses

257,129

310,365Interest income

-674

-857

Interest expenses

1,058,930

1,093,770

Amortization of investment unit issuance expenses

27,281

27,281

Amortization of investment corporation bond issuance expenses

9,000

6,735

Litigation settlement

10,000-Decrease (increase) in accounts receivable-trade-2,701-249,271-220,729

220,729

Decrease (increase) in prepaid expenses

7,189-8,623

Increase (decrease) in accounts payable-79

78,583

Decrease (increase) in consumption taxes refund receivable

Increase (decrease) in accounts payable-other-30,285

19,628

Increase (decrease) in accrued consumption taxes-66,863

122,971

Increase (decrease) in advances received

606,160-405,104

Increase (decrease) in deposits received

24,435-8,285

Loss on retirement of noncurrent assets

3,719

17,688-4,349,376-599,460-356,625-4,261-1,335

5,199,445

9,849,413

Changes in net property, plant and equipment held in trust from sale
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest income received

674

857

Interest expenses paid

-1,044,715-1,108,485

Litigation settlement paid

-10,000-

Income taxes paid

-1,352-1,8294,144,051

8,739,955-123,516-207,114-32,707,120-11,702,103

Purchase of investment securities-891,000-5,655

Payments of tenant leasehold and security deposits-52,281-77,920

Proceeds from tenant leasehold and security deposits

51,43898,806

Payments of tenant leasehold and security deposits in trust-848,057-934,940

Proceeds from tenant leasehold and security deposits in trust

2,443,258

1,056,424

Payments of restricted bank deposits in trust-131,124-597,874

Proceeds from restricted bank deposits in trust

40,72986,628-20--32,217,695-12,283,748

Net cash provided by (used in)operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust

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

8,700,000

4,500,000

Decrease in short-term loans payable-4,200,000-13,500,000

Proceeds from long-term loans payable

38,700,000

20,000,000

Repayment of long-term loans payable-9,241,500-7,791,500

Proceeds from issuance of investment corporation bonds

1,481,582-

Redemption of investment corporation bonds-9,000,000-

Payment of investment units issuance costs-28,321--17-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Dividends paid

-2,747,108-2,681,962

Net cash provided by (used in) financing activities

23,664,651

526,537

Net increase (decrease) in cash and cash equivalents-4,408,992-3,017,255

Cash and cash equivalents at beginning of period

17,928,003

13,519,010

13,519,010

10,501,755

Cash and cash equivalents at end of period

*

-18-

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

Securities
Other securitiesThose with no fair value
Cost method through moving-average method

2. Depreciation of fixed assets(1) Property, plant and equipment (includes trust assets)
The straight-line method is applied.
Useful lives of the assets ranging are as follows:
Buildings: 2 to 49 years
Structures: 2 to 45 years
Machinery and equipment: 3 to 17 years
Tools, furniture and fixtures: 3 to 20 years(2) Intangible assets (includes trust assets)
The straight-line method is applied.
Right of using water facilities: 6 years
Leasehold rights
Fixed term leasehold is amortized over a contractual period of 48 years and 9 months under thestraight-line method.
(3) Long-term prepaid expenses
The straight-line method is applied.

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

4. Accounting standards for revenues and expenses

Accounting method for property tax
Property-related taxes including property taxes and city planning taxes, etc. are imposed on
properties on a calendar year basis. These taxes are generally charged to rental expenses for theperiod, for the portion of such taxes corresponding to said period.
In connection with the acquisition of real estate including trust beneficiary interests in real estate during
the fiscal period under review, the Investment Corporation included its pro rata property portion for theyear in each property acquisition price and not as rental expense. The amount of property taxes
included in acquisition prices for the previous fiscal period amounted to ¥23,880 thousand and for the
fiscal period under review amounted to ¥23,008 thousand.

5. Accounting for hedges(1) Hedge accounting method
The deferred hedge method is applied. However, the special treatment is applied for the interest-rate
swap agreements that meet the criteria.
(2) Hedging instruments and risks hedged
Hedge instruments
The Investment Corporation enters into interest-rate swap transactions.
Risks hedged
Interest rates on debt.
(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its risk management-19-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

policies with the objective of hedging risks in accordance with its Articles of Incorporation.
(4) Method of evaluating the effectiveness of hedging
During the period from the commencement of hedging to the point at which effectiveness is
assessed, the Investment Corporation compares the cumulative total of market changes in thetargeted objects of hedging or cash flow changes with the cumulative total of market changes in thehedging 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 the criteria for special treatment, the evaluationof effectiveness are omitted.
6. The scope of cash and cash equivalents on statements ofcash flows

For the purpose of cash flow statements, cash and cash equivalents consist of cash on hand, deposits
received that can be withdrawn on demand, and short-term investments with original maturities of 3
months or less, that are readily convertible to known amounts of cash and present insignificant riskof a change in value.

7. Other significant accounting policies utilized in the
preparation of financial statements(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities as well as revenues and expenses of financial assets held in the form of trust
beneficiary interests in real estate and other assets are recorded in full in the Investment
Corporation’s balance sheets and statements of income.
Important line items included in accounting for financial assets and liabilities in the Investment
Corporation’s balance sheet are as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixturesin trust, land in trust and construction in progress in trust
3. Leasehold rights in trust, right of using water facilities in trust
4. Lease and guarantee deposits in trust
5. Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption taxes are separately recorded. Non-deductible consumption taxes applicable to theacquisition of assets are included in the cost of acquisition for each asset.

-20-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(8)【Notes to the Financial Statements】（Notes to the Balance Sheets）※1.

Minimum unitholders’ equity pursuant to Article 67-4 of the Law Concerning Investment Trusts and Investment Corporations Law(Thousands of Yen)
Fourteenth Fiscal Period

Fifteenth Fiscal Period(as of April 30, 2012)(as of October 31, 2012)
50,000※2.

50,000

The amount of advanced depreciation of property, plant and equipment acquired by government subsidy(Thousands of Yen)
Fourteenth Fiscal Period

Fifteenth Fiscal Period(as of April 30, 2012)(as of October 31, 2012)

Building in trust

26,230-21-

26,230KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Statements of Income）※1. Breakdown of real estate rental business profit and loss

(Thousands of Yen)
Fourteenth Fiscal Period(November 1, 2011 to April 30, 2012)

Fifteenth Fiscal Period(May 1, 2012 to October 31, 2012)

A. Rental and other operating revenues
Rental revenues
Leasing income

6,581,677

6,664,509

Common area charges

1,490,245

1,559,549

8,071,923

8,224,059

Parking space rental revenues

271,259

286,631

Utility charge reimbursement621,581769,330

Miscellaneous

125,888

337,333

Subtotal

1,018,730

1,393,295

9,090,653

9,617,354

Property management fees and facility management fees

911,939

937,542

Utilities

663,799

790,093

Taxes

724,628

823,223

Repairs and maintenance costs

165,367

400,959

Insurance

14,083

14,672

Total
Other rental revenues

Total rental and other operating revenues
B. Rental and other operating expenses
Rental expenses

Trust fees

47,276

42,681Others175,097

174,152

Depreciation
Loss on retirement of fixed assets

1,578,845

1,621,150

3,719

17,688

Total rental and other operating expenses

4,284,756

4,822,166

4,805,896

4,795,188

C. Rental business profit (A – B)
※2. Gain and Loss on sale of real estate
Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012)
Not applicable
Fifteenth Fiscal Period (May 1, 2012 to October 31, 2012)(Thousands of Yen)
(1) KDX Omori Building
Revenue from sale of the investment property

4,200,000

Costs of the investment property

3,355,390

Other sales’ expenses

249,093

Gain on sale of real estate properties

595,516(2) Gradito Kawaguchi
Revenue from sale of the investment property

860,000

Costs of the investment property

992,112

Other sales’ expenses

19,710Loss on sale of real estate properties

151,823-22-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Statements of Changes in Unitholders’ Equity）※ Total number of authorized investment units and total number of investment units issued and outstanding
Fourteenth Fiscal Period(November 1, 2011 to April 30, 2012)

Fifteenth Fiscal Period(May 1, 2012 to October 31, 2012)

Total number of authorized investment units

2,000,000 units

2,000,000 units

Total number of investment units issued and outstanding

286,550 units

286,550 units（Notes to the Statements of Cash Flow）※ Reconciliation of balance sheet items to cash and cash equivalents at end of period in the cash flows statements(Thousands of Yen)
Fourteenth Fiscal Period(November 1, 2011 to April 30, 2012)

Fifteenth Fiscal Period(May 1, 2012 to October 31, 2012)

Cash and deposits

6,924,146

Cash and deposits in trust

7,095,792

7,471,423

Restricted bank deposits held in trust (Note)-500,927-1,012,174

13,519,010

10,501,755

Cash and cash equivalents

4,042,506

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

（Notes to the Lease Transactions）
Operating lease transactions(Lessor)(Thousands of Yen)
Fourteenth Fiscal Period

Fifteenth Fiscal Period(as of April 30, 2012)(as of October 31, 2012)

Unearned lease payments
Due within one year

1,019,239

1,066,247

Due after one year

5,069,698

4,792,716

Total

6,088,938

5,858,964-23-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Financial Instruments）
1. Items with Regard to the current status of Financial Instruments(1) Action Policy with Regard to Financial Instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bank loans and theissuance of corporate bonds and new investment accounts. The Investment Corporation makes use of derivative instruments primarily as a risk hedge againstinterest rate fluctuations and to lessen interest-rate payments. In addition, it is company policy to not conduct speculative derivative transactions. Managementof surplus funds is undertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Financial Instruments and Respective Risks

Investment securities are preferred equity securities of TMK as set forth by the Act on Securitization of Assets and are exposed to credit
risk of the issuer and risk of fluctuation of value of real estate, etc.
Loans and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties and have a redemption date of a
maximum of 7 years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risks, the Investment
Corporation utilizes derivative instruments (interest-rate swap transactions) in order to hedge against such risks.
Derivative instruments are interest-rate swap transactions that are used to hedge against interest rate fluctuation risks. Utilizing interest-rate swap
transactions, the Investment Corporation fixed its interest payments for funds procured on a floating interest rate basis. With regard to hedge accounting
methods, hedging instruments and hedged items, hedge policy, and the method of evaluation of hedge effectiveness, please see 5. Hedge Accounting Method
in notes concerning Important Accounting Standards.
(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in Interest Rates and Others)
The Investment Corporation uses interest-rate swap transactions in order to minimize risks associated with interest payment rate fluctuations on funds procured.

The Investment Corporation will periodically grasp the value of real estate, etc. and financial condition, etc. of the issuer with regard toinvestment securities.
B. Management of Liquidity Risk (Risk of Defaulting on Payments by the Due Date) Associated with Funds Procurement
Although loans and other liabilities are subject to liquidity risks, the Investment Corporation reduces such risks by spreading out payment due dates and byusing diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplemental Explanation of Items with Regard to Fair Value of Financial Instruments
Included in the fair value of financial products are market prices, or, in the event market prices are not available, prices that are calculated on a rational basis.
Because the factors incorporated into the calculation of these prices are subject to change, differing assumptions are adopted which may alter fair value.
2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference are as follows. Furthermore, items whose fair values are recognized to be extremely
difficult to grasp are not included in the following table (Refer to Note 2).
Fourteenth Fiscal Period (as of April 30, 2012)
Book Value(Thousands of Yen)
Difference

Fair Value(1) Cash and deposits

6,924,146

6,924,146-(2) Cash and deposits in trust

7,095,792

7,095,792-

Total assets

14,019,938

14,019,938-(1) Short-term loans payable

14,700,000

14,700,000-(2) Investment corporation bonds

6,000,000

5,874,300-125,700

116,672,500

117,265,101

592,601

137,372,500

137,839,401

466,901---(3) Long-term loans payable
Total liabilities
Derivative Transaction-24-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Fifteenth Fiscal Period (as of October 31, 2012)(Thousands of Yen)
Book Value(1) Cash and deposits

Fair Value
4,042,506

Difference
4,042,506-(2) Cash and deposits in trust

7,471,423

7,471,423-

Total assets

11,513,929

11,513,929-(3) Short-term loans payable

5,700,000

5,700,000-(4) Investment corporation bonds(5) Long-term loans payable
Total liabilities

6,000,000

5,916,450-83,550

128,881,000

129,110,083

229,083

140,581,000

140,726,533

145,533---

Derivative Transaction

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

(2) Investment corporation bonds
The fair value of investment corporation bonds is based on market prices.
(3) Long-term loans payable
The fair value of long-term borrowings is calculated based on the present value that discounts the total amount of principal and interest by using the estimated interest rate in
the event that the Investment Corporation conducts new borrowings of the same type. Among interest rate fluctuations on long-term borrowings, said borrowings—which
are subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps—are calculated by discounting the total amount of principal
and interest, which is handled together with applicable interest-rate swaps, by the rationally estimated interest rate in the case that the same type of borrowings areundertaken.
Derivative Transaction
Please refer to the following “Derivative Transaction.”
Note 2: Financial instruments whose fair values are recognized to be extremely difficult to grasp(Thousands of Yen)
Fifteenth Fiscal Period

Fourteenth Fiscal Period(as of April 30, 2012)

Classification
Preferred equity securities(as of October 31, 2012)
896,655

896,655

Fair values of preferred equity securities are not subject to disclosure of fair value as they have no market value and their fair values are recognized to
be extremely difficult to grasp.
Note 3: Redemption schedule of monetary claims after the closing date
Fourteenth Fiscal Period (as of April 30, 2012)(Thousands of Yen)

Less than or Equal
to 1 yr.
Cash and deposits

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

6,924,146

-

-

-

-

-

7,095,792

-

-

-

-

-

14,019,938

-

-

-

-

-

Cash and deposits in trust
Total

1-2 yrs.

Fifteenth Fiscal Period (as of October 31, 2012)(Thousands of Yen)

Less than or Equal
to 1 yr.

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

More than 5 yrs.

Cash and deposits

4,042,506

-

-

-

-

-

Cash and deposits in trust

7,471,423

-

-

-

-

-

11,513,929

-

-

-

-

-

Total

-25-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Note 4: Investment corporation bonds, repayment of loans after the closing date, planned repayment amountFourteenth Fiscal Period (as of April 30, 2012）
Less than or Equal
to 1 yr.
Short-term loans payable

2-3 yrs.

3-4 yrs.

4-5 yrs.

14,700,000

-

-

-

-

-

-

1,500,000--

3,000,000

1,500,000

11,880,000

27,846,000

33,746,500

30,300,000

7,500,000

5,400,000

Investment corporation bonds
Long-term loans payable

1-2 yrs.

(Thousands of Yen)
More than 5
yrs.

Fifteenth Fiscal Period (as of October 31, 2012)(Thousands of Yen)

Less than or Equal
to 1 yr.

1-2 yrs.

2-3 yrs.

3-4 yrs.

More than 5yrs.

4-5 yrs.

Short-term loans payable

5,700,000

-

-

-

-

-

Investment corporation bonds

1,500,000---

4,500,000-

Long-term loans payable

14,000,000

38,546,000

30,135,000

26,800,000

11,500,000

7,900,000（Notes to the Marketable Securities）
Fourteenth Fiscal Period (as of April 30, 2012) and Fifteenth Fiscal Period (as of October 31, 2012)
Not applicable（Notes to the Derivative Transactions）(1) Items that do not apply hedge accounting
Fourteenth Fiscal Period (as of April 30, 2012) and Fifteenth Fiscal Period (as of October 31, 2012) : Not applicable(2) Items that apply hedge accounting
Fourteenth Fiscal Period (as of April 30, 2012）
Hedge accounting
methodSpecial treatment ofinterest-rate swaps

Type of Derivative Transactions
Interest-rate swap transaction
Fixed rate payable･Floating rate receivable(Thousands of Yen)
Main target riskhedgeLong-term loans
payableContracted amountMore than 1 yr.
17,500,000

16,500,000

Fair Calculation method forvalue applicable fair value※

Fifteenth Fiscal Period (as of October 31, 2012)
Hedge accounting
methodSpecial treatment ofinterest-rate swaps

Type of Derivative Transactions
Interest-rate swap transaction
Fixed rate payable･Floating rate receivable(Thousands of Yen)
Main target riskhedgeLong-term loans
payableContracted amountMore than 1 yr.
21,500,000

20,500,000

Fair Calculation method forvalue applicable fair value※※Special treatment of interest-rate swaps are reported at the fair value of applicable long-term loans payable. This is because such swaps are handled together withhedged long-term loans payable.
（Notes to the Retirement Payment）
Fourteenth Fiscal Period (as of April 30, 2012) and Fifteenth Fiscal Period (as of October 31, 2012): Not applicable（Notes to the Asset Retirement Obligations）
Fourteenth Fiscal Period (as of April 30, 2012) and Fifteenth Fiscal Period (as of October 31, 2012): Not applicable-26-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Segment and Related Information）
1. Segment Information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment subject to disclosure.
2. Related Information
Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue on thestatement of income.
(2) Information about each geographic area
A. Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
B. Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.
Fifteenth Fiscal Period (May 1, 2012 to October 31, 2012)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue on thestatement of income.
(2) Information about each geographic area
A. Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income.
B. Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant andequipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income.

-27-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Tax-Effect Accounting）
1. The significant components of deferred tax assets and liabilities(Thousands of Yen)
Fifteenth Fiscal Period

Fourteenth Fiscal Period(as of April 30, 2012)(as of October 31, 2012)

Deferred tax assets
Enterprise tax payable not included in expenses

43

26

Amortization of leasehold rights in trust

749

1,013

792

1,040

- 749

-1,01343

26

Subtotal deferred tax assets
Valuation Allowance
Total deferred tax assets
2. Significant difference between statutory income tax rate and the effective tax rate

(Unit: %)Fifteenth Fiscal Period

Fourteenth Fiscal Period(as of April 30, 2012)
Statutory tax rate

(as of October 31, 2012)
39.33

36.59

- 41.52-33.28(Adjustments)
Deductible cash distributions
Provision of reserve for reduction entry

-

-3.30

Others2.25

0.03

Effective tax rate

0.06

0.05

(Notes to the Equity-Method Income and Retained Earnings)
Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012) and Fifteenth Fiscal Period (May 1, 2012 to October 31, 2012): Not applicable-28-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（Notes to the Related-Party Transactions）
1．Parent Company, corporate unitholders and other
Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012) and Fifteenth Fiscal Period (May 1, 2012 to October 31, 2012): Not applicable
2．Affiliated companies and other
Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012) and Fifteenth Fiscal Period (May 1, 2012 to October 31, 2012): Not applicable
3．Fellow subsidiary companies and other
Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012) and Fifteenth Fiscal Period (May 1, 2012 to October 31, 2012): Not applicable
4．Directors, individual unitholders and other
Fourteenth Fiscal Period (November 1, 2011 to April 30, 2012)
Attributes

Name

Board of Directors Naokatsu
and Close Relatives UchidaBusiness Activities / Position
Executive Director for theInvestment Corporation and CEO
and President of Kenedix REITManagement, Inc.

Ratio of Possessionof Voting Rights
Details of Business(%)

Deal Amount Accounting(¥Thousands)
Term
652,127－

Payment of asset management
fee to Kenedix REITManagement, Inc. (Note 1)(Note 2)
(Note 4)(Note 6)As above

As above

As above

As above

As above

As above

As above

As above

Payment of businessconsignment fee to Kenedix
REIT Management, Inc.
(Note3)
Payment of property
management fee to Kenedix
REIT Management, Inc.
(Note5)

Balance of
Period End(¥Thousands)
87,221

Accounts(Note 4)

Payable-other6,500－(Note 4)－(Note 6)368,339(Note 4)

115,960

Accounts
Payable(Note 4)(Note 6)

Notes:
1. Naokatsu Uchida served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
2. Asset management fee include ¥161,055 thousand fee related to the acquisition of property are accounted in book value for the individual real estate.
3. Naokatsu Uchida served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Operating Agency
Agreement” between the Investment Corporation and Kenedix REIT Management, Inc.
4. Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5. Naokatsu Uchida served as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, “Property Management
Agreement” between the Investment Corporation and Kenedix REIT Management, Inc. Property management fee include ¥50,361 thousand related to theacquisition of property are accounted in book value for the individual real estate.
6. At the Board of Directors meeting of Kenedix REIT Management, Inc. held on February 2, 2012, Taisuke Miyajima resigned as CEO and President, andNaokatsu Uchida was appointed as new CEO and President in his place. Also, at the Investment Corporation’s General Meeting of Unitholders held on March
15, 2012, the resignation of Taisuke Miyajima as executive director and the new appointment of Naokatsu Uchida as executive director were approved. In thedeal amount, the deal amount of the fiscal period under review including the period for which Taisuke Miyajima held office is indicated.
Fifteenth Fiscal Period (May 1, 2012 to October 31, 2012)
Attributes

Name

Board of Directors Naokatsu
and Close Relatives Uchida

As above

As above

As above

As above

Business Activities / Position
Executive Director for theInvestment Corporation and CEO
and President of Kenedix OfficePartners, Inc.
As above

As above

Ratio of Possessionof Voting Rights
Details of Business(%)－

As above

As above-29-

Payment of asset management
fee to Kenedix Office Partners,
Inc. (Note 1)
Payment of businessconsignment fee to Kenedix
Office Partners, Inc. (Note 3)
Payment of property
management fee to Kenedix
Office Partners, Inc. (Note 5)

Deal Amount Accounting(¥Thousands)
Term

Balance of
Period End(¥Thousands)

627,384

Accounts

97,816(Note 2)

Payable(Note 4)(Note 4)-other1,500－(Note 4)
373,016(Note 4)

Accounts
Payable－86,980(Note 4)

KENEDIX REALTY INVESTMENT CORPORATION (8972)

Notes:
1. Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the articles of incorporation of theInvestment Corporation.
2. Asset management fee include ¥54,000 thousand fee related to the acquisition of property are accounted in book value for the individual real estate and ¥25,300
thousand sales fee related to the sale of property are accounted for in the sales expense for the individual real estate.
3. Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the agreement, “Operating Agency
Agreement” between the Investment Corporation and Kenedix Office Partners, Inc.
4. Consumption taxes are not included in the deal amount, and are included in the balance of the end of period.
5. Naokatsu Uchida served as a representative of the third party (Kenedix Office Partners, Inc.), and the fee is set up in the agreement, “Property Management
Agreement” between the Investment Corporation and Kenedix Office Partners, Inc. Property management fee include ¥38,157 thousand related to theacquisition of property are accounted in book value for the individual real estate and ¥4,000 thousand sales fee related to the sale of property are accounted for in
the sales expense for the individual real estate.
（Notes to the Fair Value of Real Estate for Rental Purposes）
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenue.
The book value per balance sheet for the fiscal period under review and fair value concerning the above real estate for rental purposes are as follows.
(Thousands of Yen)
Fifteenth Fiscal Period

Fourteenth Fiscal Period(November 1, 2011 to April 30, 2012)(May 1, 2012 to October 31, 2012)

Book Value (Thousands of Yen)
Balance at the beginning of period

254,921,755

286,114,419

Changes during the period

31,192,663

5,906,850

Balance at the end of current period

286,114,419

292,021,269

Fair value at the end of current period
263,867,000
266,252,000
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period under review is the appraisal value determined by outside appraisers. KDX Omori Building is calculated based on
the sales price of ¥4,200 million under the sales and purchase agreement dated February 23, 2012 and Kanazawa Nikko Building is calculated based on thesales price of ¥780 million under the sales and purchase agreement dated November 1, 2012.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the fourteenth fiscal period, principal increases were the acquisition ofreal estate trust beneficiary interests to 9 properties totaling ¥31,851,608 thousand and depreciation amounting to ¥1,578,845 thousand and principal increases
were the acquisition of real estate trust beneficiary interests to 3 properties totaling ¥10,988,507 thousand, the sale of real estate trust beneficiary interests to 2
properties amounting ¥4,347,502 thousand and depreciation amounting to ¥1,621,150 thousand and for the fiscal period under review.
Income and loss for real estate for rental purposes is listed in Notes to the Statements of Income.
(Notes to the Information per Unit)
Fifteenth Fiscal Period

Fourteenth Fiscal Period(November 1, 2011 to April 30, 2012)
Unitholders’ Equity per Unit
Net Income per Unit

(May 1, 2012 to October 31, 2012)¥523,688¥524,828¥8,865¥10,503

Note 1: Net Income per Unit is calculated by dividing Net Income by the weighted average (based on number of days) number of units. Net income per unit after
adjusting for residual units is not included because there were no residual investment units.
Note 2: The calculation for the net income per unit is as follow.
Fifteenth Fiscal Period

Fourteenth Fiscal Period(November 1, 2011 to April 30, 2012)
Net Income (Thousands of Yen)
Amount not vested in ordinary investors(Thousands of Yen）
Net income for ordinary units(Thousands of Yen)
Average number of units during the period(unit)(May 1, 2012 to October 31, 2012)

2,540,282

3,009,795--

2,540,282

3,009,795

286,550

286,550（Important Subsequent Events）

There were no important events following account settlement of the fifteenth fiscal period (fiscal period ended October 31, 2012).
-30-

KENEDIX REALTY INVESTMENT CORPORATION (8972)（9）Movements in Investment Units Issued and Outstanding
Movements in the number of investment units issued and outstanding and unitholders’ capital since first fiscal periods are summarized in thefollowing table.
Settlement Date

Particulars

May 6, 2005
July 20, 2005
August 16, 2005
May 1, 2006
May 26, 2006
May 22, 2007
June 19, 2007
November 16, 2009
July 20, 2011
August 8, 2011

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

Investment Units Issued andOutstanding (Units)
Increase
Balance(Decrease)400
75,0003,970
73,6603,970
40,9002,100
33,55051,4001,600

Unitholders’ Capital(Millions of Yen)
Increase
Balance(Decrease)400
75,40079,370153,030
157,000
197,900
200,000
233,550
284,950
286,550200
41,8682,216
42,171
2,272
34,474
1,770
8,156
13,600423

200
42,06844,28586,45688,729123,203
124,973
133,129
146,730
147,153

Remarks(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)Notes:
1. The Investment Corporation was established with an offer price of ¥500,000 per unit.
2. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥580,000 per unit with an underwritten price of ¥558,250 per unit.
3. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥558,250 per unit.
4. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥593,096 per unit with an issue price of ¥572,519 per unit.
5. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties. The issue price was ¥572,519 per unit.
6. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties and repayment of borrowings. The offer price was ¥873,180 per unit with an issue price of ¥842,886 per unit.
7. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for theacquisition of investment properties and repayment of borrowings. The issue price was ¥842,886 per unit.
8. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥252,200 per unit with an issue price of ¥243,100 per unit.
9. The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring funds for the acquisition of
investment properties. The offer price was ¥274,510 per unit with an issue price of ¥264,605 per unit.
10. The Investment Corporation undertook an additional issue of new investment units by way of third-party allotment with the aim of procuring funds for the
repayment of borrowings. The issue price was ¥264,605 per unit.

4. Resignation/Appointment of the Directors(1) Resignation/Appointment of the Investment Corporation Directors
Not applicable(2) Resignation/Appointment of the Asset Management Company
Change of Directors
Appointed: Director
Fumihiko Shimodomae (Date of change: July 1, 2012)
Director
Keisuke Sato (Date of change: August 1, 2012)
Director
Hikaru Teramoto (Date of change: August 1, 2012)Retired : Director
Masashi Ohwa (Date of change: June 30, 2012)
Director
Koju Komatsu (Date of change: July 31, 2012)-31-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

5. Reference Information（1）Component of Assets
Fourteenth Fiscal Period(As of April 30, 2012)

Type of

Type

Specified Asset

Office Buildings

Real Estate

Area

Total Amount Held

Ratio

Total Amount Held

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

Tokyo Metropolitan Area

30,21310.0

30,221Other Regional Areas

12,288

4.1

12,2144.0

42,501

14.0

42,43613.8

42,501

14.0

42,436

13.8

Tokyo Metropolitan Area

182,695

60.2

189,851

61.9

Other Regional Areas

38,93912.8

38,863

12.7

221,63473.1

228,715

74.6

Tokyo Metropolitan Area

7,153

2.4

6,105

2.0

Other Regional Areas

1,807

0.6

1,788

0.6

8,960

3.0

7,893

2.6

12,330

4.1

12,296

4.0

12,330

4.1

12,296

4.0

686

0.2

679

0.2

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

Total for Residential Properties
Central Urban Retail
Properties

Tokyo Metropolitan Area

Total for Central Urban Retail Properties
OthersFifteenth Fiscal Period(As of October 31, 2012)

Other Regional Areas

Total for Others
Total of Trust Beneficiary Interests in Real Estate
Investment Securities (Note 3)

9.9

686

0.2

679

0.2

243,61280.3

249,585

81.4

896

0.3

896

0.3

Bank Deposits and Other Assets

16,272

5.4

13,816

4.5

Total Assets

303,284

100.0

306,734

100.0

Notes:
1. “Total Amount Held” is the amount allocated in the balance sheets at the end of the period (figures are on a net book value basis after deducting depreciation), and isrounded down to the nearest ¥1 million.
2. “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
3. The preferred equity securities issued by Senri Property TMK.

Fourteenth Fiscal Period(As of April 30, 2012)
Price (Millions of Yen)
Ratio (%)
Total of Liabilities
Total Unitholders’ Equity
Total of Assets

Fifteenth Fiscal Period(As of October 31, 2012)
Price (Millions of Yen)
Ratio (%)

153,22150.5

156,34551.0

150,06349.5

150,38949.0

303,284

100.0

306,734

100.0(2) Details of Investment Assets
A. Major components of investment securities
Type of Assets

Name

Preferred Equity

Senri Property TMK Preferred Securities

Securities(Note 3)

Number ofBook Value

Evaluation Value (Note 1)

Ratio (%)

Units

(Millions of Yen)

(Millions of Yen)

(Note 2)

17,820896

Notes:
1. Book value is stated for the evaluation value.
2. “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
3. Type of specified asset is the trust beneficiary interest in real estate of Senri Life Science Center Building

-32-

896

0.3

KENEDIX REALTY INVESTMENT CORPORATION (8972)

B. Properties Roster(a) The Price of the Investment Properties and the Investment Ratio(Unit: Millions of Yen)
Appraisal Value at the end of Fifteenth Fiscal Period

Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Acquisition
Price（Note 1）

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-1

KDX Nihonbashi 313 Building

5,940

6,082

6,380

6,700

4.7

6,240

4.5

4.9

B

2.0

A-3

Higashi-Kayabacho Yuraku Building

4,450

4,328

5,010

5,070

4.9

4,940

4.7

5.1

A

1.5

A-4

KDX Hatchobori Building

3,680

3,340

3,440

3,500

5.0

3,410

4.8

5.2

B

1.2

A-5

KDX Nakano-Sakaue Building

2,533

2,443

2,250

2,350

5.3

2,210

5.1

5.5

B

0.8

A-6

Harajuku F.F. Building

2,450

2,443

2,980

3,010

5.6

2,950

5.4

5.8

A

0.8

A-7

FIK Minami Aoyama

2,270

2,247

2,190

2,210

4.8

2,160

4.6

5.0

A

0.7

A-8

Kanda Kihara Building

1,950

1,842

1,800

1,850

5.0

1,780

4.8

5.2

B

0.6

A-13

KDX Kojimachi Building

5,950

5,619

4,400

4,460

4.4

4,330

4.2

4.6

A

2.0

A-14

KDX Funabashi Building

2,252

2,383

1,950

1,950

6.1

1,940

5.9

6.3

A

0.7

A-15

KDX Hamacho Building

2,300

2,249

2,280

2,300

5.2

2,250

5.0

5.4

A

0.7

A-16

Toshin 24 Building

5,300

5,087

4,010

4,030

5.7

3,980

5.5

5.9

A

1.8

A-17

KDX Ebisu Building

4,640

4,546

4,150

4,190

4.9

4,110

4.6

5.1

A

1.5

A-19

KDX Hamamatsucho Building

3,460

3,227

3,170

3,280

4.6

3,120

4.4

4.8

B

1.1

A-20

KDX Kayabacho Building

2,780

2,861

2,420

2,430

5.3

2,400

4.9

5.4

A

0.9

A-21

KDX Shinbashi Building

2,690

2,689

2,640

2,670

4.6

2,600

4.2

4.8

A

0.9

A-22

KDX Shin-Yokohama Building

2,520

2,435

2,240

2,260

5.9

2,210

5.7

6.1

A

0.8

A-23

KDX Yotsuya Building

1,950

1,971

2,460

2,480

5.3

2,440

5.1

5.5

A

0.6

A-26

KDX Kiba Building

1,580

1,551

1,410

1,420

5.7

1,390

5.5

5.9

A

0.5

A-27

KDX Kajicho Building

2,350

2,378

2,360

2,430

5.0

2,330

4.8

5.2

B

0.8

A-28

KDX Nogizaka Building

1,065

1,122

696

701

5.6

691

5.2

5.6

A

0.3

A-29

KDX Higashi-Shinjuku Building

2,950

3,180

3,320

3,470

5.1

3,250

4.9

5.3

B

1.0

A-30

KDX Nishi-Gotanda Building

4,200

4,104

3,730

3,780

5.1

3,670

5.0

5.4

A

1.4

A-31

KDX Monzen-Nakacho Building

1,400

1,398

1,130

1,180

5.5

1,110

5.3

5.7

B

0.4

A-32

KDX Shiba-Daimon Building

6,090

6,170

4,510

4,560

4.9

4,460

4.7

5.1

A

2.0

A-33

KDX Okachimachi Building

2,000

2,114

1,800

1,850

5.0

1,780

4.9

5.2

B

0.6

A-34

KDX Hon-Atsugi Building

1,305

1,163

1,070

1,060

6.3

1,070

6.1

6.5

B

0.4

A-35

KDX Hachioji Building

1,155

1,277

831

832

5.9

831

5.7

6.1

B

0.3

A-37

KDX Ochanomizu Building

6,400

6,624

6,230

6,330

4.7

6,130

4.5

4.9

A

2.1

A-38

KDX Nishi-Shinjuku Building

1,500

1,577

1,130

1,140

5.2

1,110

5.0

5.4

A

0.5

A-39

KDX Toranomon Building

4,400

4,780

3,380

3,430

4.4

3,330

4.2

4.6

A

1.5

A-40

Toranomon Toyo Building

9,850

9,844

10,30010,500

4.5

10,000

4.3

4.8

A

3.3

A-41

KDX Shinjuku 286 Building

2,300

2,387

2,190

2,210

5.0

2,160

4.8

5.2

A

0.7

A-45

KDX Roppongi 228 Building

3,300

3,433

2,160

2,180

4.8

2,140

4.5

4.9

A

1.1

A-46

Hiei Kudan-Kita Building

7,600

7,633

7,400

7,780

4.6

7,230

4.4

4.8

B

2.5

A-47

KDX Shin-Yokohama 381 Building

5,800

5,864

3,990

4,020

5.8

3,950

5.6

6.0

A

1.9

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

3,760

3,762

2,990

3,030

6.1

2,950

5.7

6.3

A

1.2

A-49

Nissou Dai-17 Building

2,710

2,606

1,570

1,600

5.8

1,540

5.6

6.0

A

0.9

A-50

Ikejiri-Oohashi Building

2,400

2,443

1,460

1,470

5.8

1,440

5.6

6.0

A

0.8

A-51

KDX Hamacho Nakanohashi Building

2,310

2,341

1,700

1,720

5.3

1,670

5.1

5.5

A

0.7

A-52

KDX Kanda Misaki-cho Building

1,380

1,373

940

950

5.3

930

5.1

5.5

A

0.4

A-55

Shin-toshin Maruzen Building

2,110

2,154

1,550

1,550

5.3

1,540

4.9

5.5

A

0.7

A-56

KDX Jimbocho Building

2,760

2,897

1,860

1,870

5.3

1,850

5.0

5.5

A

0.9

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

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other Regional
Areas

No.

Property NameTokyo
Metropolitan
Area
Other Regional
Areas

Tokyo
Metropolitan
Area

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)KDX Gobancho Building

1,951

1,979

1,440

1,460

4.9

1,420

4.7

5.1

A

0.6

A-59

KDX Iwamoto-cho Building

1,864

1,789

1,310

1,320

5.3

1,290

5.1

5.5

A

0.6

A-60

KDX Harumi Building

10,250

9,624

8,240

8,400

4.8

8,070

4.5

4.9

A

3.4

A-61

KDX Hamamatsucho Dai-2 Building

2,200

2,284

1,860

1,920

4.6

1,830

4.4

4.8

B

0.7

A-62

Koishikawa TG Building

3,080

3,125

3,040

3,080

5.0

3,000

4.8

5.2

A

1.0

A-63

Gotanda TG Building

2,620

2,804

2,580

2,600

5.3

2,550

5.1

5.5

A

0.8

A-64

KDX Nihonbashi 216 Building

2,010

1,962

1,790

1,810

4.7

1,770

4.5

4.9

A

0.6

A-66

KDX Shinjuku Building

6,800

6,875

6,400

6,490

4.5

6,300

4.3

4.7

A

2.3

A-67

KDX Ginza 1chome Building

4,300

4,298

4,850

4,960

4.4

4,800

4.2

4.6

B

1.4

A-68

KDX Nihonbashi Honcho Building

4,000

4,015

4,300

4,470

4.8

4,230

4.6

5.0

B

1.3

A-71

KDX Iidabashi Building

4,670

4,682

4,910

5,060

4.8

4,840

4.6

5.0

B

1.5

A-72

KDX Higashi-Shinagawa Building

4,590

4,917

4,800

4,950

5.0

4,730

4.8

5.2

B

1.5

A-73

KDX Hakozaki Building

2,710

2,891

2,850

2,950

5.2

2,810

5.0

5.4

B

0.9

A-74

KDX Shin-Nihonbashi Building

2,300

2,285

2,440

2,500

4.6

2,420

4.4

4.8

B

0.7

A-75

KDX Nihonbashi Kabutocho Building

11,27011,311

12,10012,2004.8

11,900

4.2

4.6

A

3.8

A-76

Ikebukuro Nikko Building

1,653

1,672

1,700

1,710

5.5

1,680

5.3

5.7

A

0.5

A-77

Kabutocho Nikko Building II

1,280

1,285

1,550

1,570

5.0

1,520

4.8

5.2

A

0.4

A-78

Tachikawa Ekimae Building

1,267

1,312

1,330

1,340

5.9

1,320

5.7

6.1

A

0.4

A-83

Fuchu South Building

6,120

6,208

6,560

6,650

5.5

6,460

5.2

5.8

C

2.0

A-84

Kasuga Business Center Building

2,800

2,845

2,980

3,040

5.2

2,920

4.9

5.5

C

0.9

A-85

Nakameguro Business Center Building

1,880

1,911

2,230

2,260

5.3

2,200

5.0

5.6

C

0.6

A-12

Portus Center Building

5,570

4,532

4,610

4,640

6.4

4,600

6.2

6.6

B

1.9

A-24

KDX Minami Semba Dai-1 Building

1,610

1,451

1,000

1,010

5.8

998

5.6

6.0

A

0.5

A-25

KDX Minami Semba Dai-2 Building

1,560

1,362

1,010

1,020

5.8

994

5.6

6.0

A

0.5

A-36

KDX Niigata Building

1,305

1,459

889

908

7.3

869

7.1

7.5

A

0.4

A-42

Karasuma Building

5,400

5,374

4,960

5,100

5.6

4,900

5.4

5.8

B

1.8

A-44

KDX Sendai Building

2,100

2,149

1,410

1,400

6.1

1,410

6.1

6.3

B

0.7

A-53

KDX Hakata-Minami Building

4,900

4,792

3,470

3,490

6.6

3,440

6.4

6.8

A

1.6

A-54

KDX Kitahama Building

2,220

2,185

1,520

1,520

6.0

1,520

5.6

6.2

A

0.7

A-58

KDX Nagoya Sakae Building

7,550

7,421

4,760

4,890

5.2

4,710

5.0

5.4

B

2.5

A-69

KDX Kobayashi-Doshomachi Building

2,870

2,702

2,760

2,790

7.0

2,730

5.3

7.3

A

0.9

A-70

Kitananajo SIA Building

2,005

2,081

2,050

2,100

5.7

2,030

5.5

5.9

B

0.6

A-79

Nagoya Ekimae Sakura-dori Building

7,327

7,432

7,800

7,890

5.1

7,710

4.9

5.3

A

2.4

A-80

Nagoya Nikko Shoken Building

4,158

4,222

4,050

4,080

5.5

4,020

5.3

5.7

A

1.4

A-81

Sendai Nikko Building

950

1,060

1,030

1,030

5.9

1,020

5.6

6.0

A

0.3

A-82

View Flex Umeda Building

2,770

2,847

3,250

3,280

5.1

3,240

4.9

5.3

B

0.9

271,701

271,151

247,306

251,691

-

92.6

-

243,873--

B-3

Court Mejiro

1,250

1,166

956

962

5.4

950

5.2

5.6

A

0.4

B-19

Residence Charmante Tsukishima

5,353

4,939

4,520

4,560

5.2

4,470

5.0

5.4

A

1.8

B-18

Venus Hibarigaoka

1,800

1,788

1,540

1,540

6.5

1,530

6.3

6.7

A

0.6

8,403

7,893

7,016

7,062

-

2.8

Subtotal of Residential Properties (3 properties)
CentralUrban
RetailProperties

Amount on
the Balance
Sheet(Note 2)

A-57

Subtotal of Office Buildings (78 properties)

Residential
Properties

Acquisition
Price（Note 1）

-

6,950

-

-

C-1

Frame Jinnan-zaka

9,900

9,759

9,230

9,370

4.4

9,090

4.2

4.6

A

3.3

C-2

KDX Yoyogi Building

2,479

2,537

1,920

1,920

5.3

1,910

4.9

5.5

A

0.8

12,37912,296

11,15011,290-4.2

Subtotal of Central Urban Retail Properties (2 properties)

-34-

-

11,000--KENEDIX REALTY INVESTMENT CORPORATION (8972)
Appraisal Value at the end of Fifteenth Fiscal Period
Type

Area

OthersNo.

Other Regional
Areas

D-1

Property Name

Kanazawa Nikko Building (Note 6)

Subtotal of Others (1 property)
Total of 84 properties

Acquisition
Price（Note 1）

Amount on
the Balance
Sheet(Note 2)

Direct Capitalization
Method(Note 3)

Discounted Cash Flow Method

Value

Overall
Capitalization
Rate (%)
7.4

Value

Discount
Rate (%)

Terminal
Capitalization
Rate (%)

7.2

7.6

1,080

Appraiser(Note 4)

Ratio(%)
(Note 5)

A

0.2

645

679

1,090

1,090

645

679

1,090

1,090

-

1,080

-

-

-

0.2

293,128

292,021266,562

271,133-

262,903

-

-

-

100.0

Notes:
1. Acquisition price is the purchase price for trust beneficiary interests or properties acquired by the Investment Corporation (excluding acquisition costs,
property tax, city-planning tax, and consumption tax, etc., rounded down to the nearest million yen.).
2. Figures of less than 1 million are rounded down from the amounts on the balance sheet.
3. Appraisal values (end of the fifteenth fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation’s Articles ofIncorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports prepared by Japan
Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd. and Morii Appraisal & Investment Consulting, Inc.
4. As of the fiscal period under review, appraisals of the properties are entrusted to three appraisers: Japan Real Estate Institute, Daiwa Real Estate Appraisal Co.,
Ltd. and Morii Appraisal & Investment Consulting., Inc. In the table, the appraisers are referred to as “A” for Japan Real Estate Institute, “B” for Daiwa Real
Estate Appraisal Co., Ltd. and “C” for Morii Appraisal & Investment Consulting, Inc.
5. Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest first decimal place.
The figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices of properties corresponding to each
subtotal and total column by the total acquisition price of the entire assets (84 properties).
6. The Investment Corporation has sold Kanazawa Nikko Building on November 1, 2012. Same applies below.

-35-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(b) Property Distribution
Property TypesType

Number of
Properties

Office Buildings
Residential Properties
Central Urban Retail Properties
Other
Total

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

78
3
2
1

271,701
8,403
12,379
645

92.6
2.8
4.2
0.2

84

293,128

100.0

Geographic Distribution
Area

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

Tokyo Metropolitan Area
Other Regional Areas

67
17

238,388
54,740

81.3
18.6

Total

84

293,128100.0

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

Number of
Properties

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

Acquisition Price(Millions of Yen)

Ratio (Note) (%)

2
37
27
12
4
2

1,595
68,762
94,301
72,05034,90021,520

0.5
23.4
32.1
24.5
11.9
7.3

84

293,128100.0

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.

-36-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(c) Details of Investment Real Estate and Trust Real Estate(i) Overview of Investment Real Estate Properties and Trust Real Estate
Type

Area

No.

Property Name

Site Area（㎡）(Note 1)

A-1

KDX Nihonbashi 313 Building

1,047.72

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)SRC
Offices

8,613.09

April 1974

9.50

January 1987

7.01

June 1993

6.42

August 1992

5.20

November 1985

5.66

November 1988

4.92

May 1993

7.77

May 1994

3.60

April 1989

2.76

September 1993

6.76

September 1984

8.75

January 1992

4.16

September 1999

6.13

October 1987

7.90

February 1992

6.84

September 1990

10.36

October 1989

9.79

October 1992

7.79

March 1990

6.05

May 1991

9.48

January 1990

3.63

November 1992

8.28

September 1986

5.72

B2F9
SRC
A-3

Higashi-Kayabacho Yuraku Building

773.43

Offices

5,916.48
B1F9
SRC・RCA-4

KDX Hatchobori Building

992.20

Offices

4,800.43
B1F8

A-5

KDX Nakano-Sakaue Building

1,235.16

Offices, Retail Shops
Residential, Parking
Storage

SRC
6,399.42
B1F11

Retail Shops, Offices
A-6

Harajuku F.F. Building

699.67SRC
3,812.44

Parking

F11

Offices, Retail Shops
A-7

FIK Minami Aoyama

369.47SRC
1,926.98

Residential

B1F9
SRC・RC・S

A-8

Kanda Kihara Building

410.18

Offices

2,393.94
B1F8
SRC

A-13

KDX Kojimachi Building

612.17

Offices, Retail Shops

5,323.81
B2F9
SRC

A-14

KDX Funabashi Building

1,180.41

Offices, Retail Shops

5,970.12
B1F8

Retail Shops, Offices
A-15

KDX Hamacho Building

554.80SRC
4,133.47

Parking

B2F10

Offices, Retail Shops
A-16

Toshin 24 Building

1,287.16

SRC
8,483.17

Parking
OfficeBuildings

Tokyo
Metropolitan
Area

B1F8
SRC

A-17

KDX Ebisu Building

724.22

Offices, Retail Shops

4,394.58
B1F7

Offices, Retail Shops
A-19

KDX Hamamatsucho Building

504.26

S3,592.38

Parking

F9
SRC

A-20

KDX Kayabacho Building

617.17

Offices, Parking

3,804.86
F8

Offices, Retail Shops
A-21

KDX Shinbashi Building

536.11

SRC・S
3,960.22

Parking

B1F8

Offices, Retail Shops
A-22

KDX Shin-Yokohama Building

705.00S
6,180.51

Parking

B1F9

Offices, Retail Shops
A-23

KDX Yotsuya Building

996.65RC
3,329.68

Parking

B2F4
RC

A-26

KDX Kiba Building

922.77

Offices, Parking

2,820.64
F5
SRC

A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
B1F8

Offices, Retail Shops
A-28

KDX Nogizaka Building

409.36RC
1,695.07

Residential

B1F5

Offices,A-29

KDX Higashi-Shinjuku Building

1,340.97

SRC
7,885.40

Storage, Parking

B1F9
SRC

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87
B1F8

Offices
A-31

KDX Monzen-Nakacho Building

580.99Retail Shops

-37-

SRC
2,668.91
F8

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note 1)

A-32

KDX Shiba-Daimon Building

1,188.28

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)SRC
Offices

7,824.03

July 1986

7.60

June 1988

2.23

May 1995

11.12

December 1985

13.00

August 1982

2.97

October 1992

9.02

April 1988

8.07

August 1962

13.06

August 1989

8.71

April 1989

8.95

March 1988

3.14

B1F9
S
A-33

KDX Okachimachi Building

239.72

Offices

1,882.00
F10

OfficesA-34

KDX Hon-Atsugi Building

724.62SRC
3,603.63

Retail Shops

F8

Offices, Parking
A-35

KDX Hachioji Building

460.62SRC
2,821.21

Retail Shops

F9

Offices, Storage
SRC
A-37

KDX Ochanomizu Building

1,515.28

Retail Shops, Parking

7,720.08
B1F7

Mechanical RoomRC
A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63
F5
SRC

A-39

KDX Toranomon Building

288.20

Offices, Retail Shops

2,277.38
B1F9Bank, Offices
A-40

Toranomon Toyo Building

869.01

RC
8,346.83

Retail Shops, Storage

B2F9
SRC・RCA-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04
B1F9

OfficesA-45

KDX Roppongi 228 Building

408.86SRC
2,235.30

Retail Shops

B1F9

Offices, Retail Shops
SRC･S
A-46

Hiei Kudan-Kita Building

1,844.83

Office Room

11,425.31
B1F11

OfficeBuildings

Tokyo
Metropolitan
Area

Parking, Storage
Offices, Retail Shops
A-47

KDX Shin-Yokohama 381 Building (Note 7)

1,229.24

SRC・RCMarch 1988

B1F10

(Note 8)

10,290.30
Parking, Garbage Room

12.02
SRC

A-48

KDX Kawasaki-Ekimae Hon-cho Building

1,968.13

Offices

7,420.87

February 1985

8.34

July 1991

13.23

September 1988

3.02

September 1988

6.17

October 1992

9.41

July 1990

4.87

May 1994

7.25

August 2000

9.06

March 2008

7.15

February 2008

5.60

April 1992

2.01

B1F9
SRC
A-49

Nissou Dai-17 Building

629.00

Offices, Parking

4,016.61
B1F8
RC

A-50

Ikejiri-Oohashi Building

834.79

Offices

3,482.96
B2F9
SRC

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41
F9
SRC

A-52

KDX Kanda Misaki-cho Building

314.54

Offices

1,536.60
B1F7

Offices, Retail Shops
A-55

Shin-toshin Maruzen Building

457.64SRC
3,439.37

Parking

B1F8
SRC

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
B1F8
S

A-57

KDX Gobancho Building

335.70

Offices, Parking

1,893.11
F8

OfficesA-59

KDX Iwamoto-cho Building

266.86

S
1,618.65

Residential Complex

F9

OfficesA-60

KDX Harumi Building

2,230.69

S・SRC
12,694.32

Retail Shops

B1F11
S・SRC

A-61

KDX Hamamatsucho Dai-2 Building

368.28

Offices

2,478.90
B1F8

-38-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note 1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)

November 1989

7.54

April 1988

8.37

October 2006

6.99

May 1993

1.78

November 1991

8.41

January 1984

7.92

March 1990

8.37

January 1993

10.40

November 1993

7.29

November 2002

5.51

November 1998

4.23

March 1986

8.67

October 2001

6.15

February 1990

3.34

March 1996

2.97

June 1992

7.19

October 1985

3.44

September 1993

3.48

March 1993

9.04

September 1993

10.59

July 1983

4.39

October 1982

8.37

February 1984

1.93

June 1973

1.48

SRC
A-62

Koishikawa TG Building

1,250.42

Offices, Parking

5,862.02
B1F8
SRC

A-63

Gotanda TG Building

582.90

Offices, Parking

4,440.61
B1F9
SRC

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62
F9

Offices, Retail Shops
A-66

KDX Shinjuku Building

1,118.12

S・RC
10,348.02

Parking

B4F11
SRC

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

4,724.62
F9
SRC

A-68

KDX Nihonbashi Honcho Building

583.40

Offices, Parking

5,110.45
B1F9
SRC

A-71

KDX Iidabashi Building

967.38

Offices, Parking

5,422.64
B1F8
S・RC

A-72

KDX Higashi-Shinagawa Building

3,115.45

Offices

10,138.65
B1F5

Tokyo
Metropolitan
Area

SRC
A-73

KDX Hakozaki Building

971.83

Offices, Parking

6,332.48
B1F10

Offices, Retail Shops
A-74

KDX Shin-Nihonbashi Building

444.32

S
3,712.25

Parking

B1F10
S・RC

A-75

KDX Nihonbashi Kabutocho Building

1,920.79

Offices, Parking

11,705.49
B1F8
SRC

A-76

Ikebukuro Nikko Building

560.42

Offices

3,223.75
B1F8

OfficeBuildings

RC
A-77

Kabutocho Nikko Building II

350.63

Offices

2,016.03
F8
S

A-78

Tachikawa Ekimae Building

464.95

Offices

2,896.48
B1F8
SRC・S

A-83

Fuchu South Building

2,400.00

Offices, Parking

16,647.00
B1F14

Offices, Retail Shops
A-84

Kasuga Business Center Building

1,319.24

SRC
6,444.31

Parking

B1F10
SRC

A-85

Nakameguro Business Center Building

730.26

Offices

3,455.90
F7

Offices, Retail Shops
A-12

Portus Center Building

13,936.63

SRC・S
79,827.08

Storage, Parking

B2F25
SRC・RC・S

A-24

KDX Minami Semba Dai-1 Building

715.44

Offices, Parking

4,236.59
B1F9

Parking, Retail Shops
A-25

KDX Minami Semba Dai-2 Building

606.45SRC・S3,315.93

Offices, Residential
Other Regional
Areas

B1F9
RC

A-36

KDX Niigata Building

1,110.56

Offices, Retail Shops

6,810.29
B2F13
SRC

A-42

Karasuma Building

1,788.67

Offices

12,632.68
B1F8
SRC

A-44

KDX Sendai Building

987.78

Offices

5,918.30
B1F10

Offices, Retail Shops
A-53

KDX Hakata-Minami Building

1,826.25
Parking-39-

SRC
13,238.16
B1F9

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

Site Area（㎡）(Note 1)

Total Floor Area（㎡）(Note 3)

Usage(Note 2)Type of Structure(Note 4)

Offices, Storage
A-54

KDX Kitahama Building

751.92Completion Date
(Note 5)PML(%)
(Note 6)

S
4,652.96

Parking

July 1994

9.79

April 2009

2.87

July 2009

13.79

October 1989

0.51

April 1986

12.13

August 1974

14.36

March 1989

3.48

July 2009

8.78

Avg. 22.3 yrs (Note 8)-

March 1997

7.11

January 2004

9.88

March 1989

5.20

Avg. 13.0 yrs-

March 2005

8.02

August 1991

8.17

Avg. 10.3 yrs-

March 1989

2.61

F10
S

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retail Shops

9,594.00
F11

Offices, Parking
A-69

KDX Kobayashi-Doshomachi Building (Note 9)

1,561.04

S・SRC
10,723.83

Retail Shops

B1F12
SRC

A-70
OfficeBuildings

Kitananajo SIA Building

819.44

Offices

5,503.90
B1F9

Other Regional
Areas

S・RC
A-79

Nagoya Ekimae Sakura-dori Building

1,354.10

Offices, Retail Shops

13,380.30
B2F15

Offices, Retail Shops
A-80

Nagoya Nikko Shoken Building

1,403.93

SRC
14,308.76

Parking

B3F11
SRC・S

A-81

Sendai Nikko Building

522.14

Offices

3,598.01
B1F8

Offices, Retail Shops
A-82

View Flex Umeda Building

804.50

S・SRC
6,805.76

Parking
Subtotal of Office Buildings (78 properties)

B1F10

-

-

-

1,581.91

Residential Complex

3,326.07

RC

B-3

Court Mejiro

Tokyo
Metropolitan
Area

B1F3
SRC
B-19

Residential
Properties

Residence Charmante Tsukishima

4,252.86

Residential Complex

18,115.39
B1F10①RC F6

Other Regional
Areas

B-18

Venus Hibarigaoka

8,595.00

Residential Complex

14,976.25②RC F5③RC F6

Subtotal of Residential Properties (3 properties)

-

-

-

1,240.51

Retail Shops

6,302.58

S・RC・SRC

CentralUrban
RetailProperties

C-1

Frame Jinnan-zaka

Tokyo
Metropolitan
Area

B2F7
SRC
C-2

KDX Yoyogi Building

228.74Retail Shops, Offices

1,269.06
F8

Subtotal of Central Urban Retail Properties (2 properties)

OthersOther Regional
Areas

-

-

-

751.16

Offices, Hotel

4,497.22

SRC

D-1

Kanazawa Nikko Building

B1F7
Subtotal of Others (1 property)
Total of 84 properties

-

-

-

-

Avg. 23.6 yrs
Avg. 21.5 yrs (Note 8)

4.89(Note 6)

Notes:
1. Site area data is based on figures recorded in the land register (including relevant figures for leasehold land, if any). Data may not match with the actual current
status. In the case of buildings with compartmentalized ownership, the figure indicates the site area of the entire land subject to site rights.
2. Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of areas covered by the relevant
ownership is shown.
3. Total floor space is based on figures recorded in the land register and does not include related structures. The total floor area for the entire buildings is reported
for compartmentalized ownership.
4. Type of structure data is based on data recorded in the land register. For buildings with compartmentalized ownership, the structure and the number of floors of
the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating to structure and thenumber 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.

-40-

KENEDIX REALTY INVESTMENT CORPORATION (8972)

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, 2012, and is rounded down to the nearest first decimal place.
6. Probable Maximum Loss (PML) data is based on a survey provided by NKSJ Risk Management, Inc. as of September 2012. Also, when excluding
Kanazawa Nikko Building which was sold on November 1, 2012, the Portfolio PML based on 83 properties (as of October 2012) is 4.92%.
7. KDX Shin-Yokohama 381 Building is comprised from two compartmentalized buildings within a single building. By consolidating them together, they
become a property that comprises the entire building (total ownership ratio: 100%).
8. The completion date of the existing tower is shown for the completion date of KDX Shin-Yokohama 381 Building. Upon calculating the weighted-average
portfolio age, the completion date (April 2009) for the KDX Shin-Yokohama 381 Building Annex Tower is not considered.
9. KDX Kobayashi Doshomachi Building includes the term leasehold interest with a special agreement to transfer building.

-41-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(ii) Capital Expenditure① Planned capital expenditures
Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the sixteenth fiscal period(November 1, 2012 to April 30, 2013) are as follows. Planned capital expenditure may include portions classified into expenses for accounting
purposes.

Property Name
(Location)
KDX Nihonbashi Kabutocho Building(Chuo-ku, Tokyo)--

As above

287

-

3

Upgrade of common areas, other

As above77--

Upgrade elevators, other

As above

45--

Upgrade of external walls, other

As above27--

Air conditioning system(Nagoya, Aichi)

construction, other(Minato-ku, Tokyo)
Nagoya Nikko Shoken Building(Nagoya, Aichi)
Sendai Nikko Building(Sendai, Miyagi)

November 2012 to379

Nagoya Ekimae Sakura-dori Building
KDX Shiba-Daimon Building

Schedule

PurposeRestitution construction, other

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

April 2013

② Capital Expenditures during the Fiscal Period Under Review (fiscal period ended October 31, 2012)
The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review (fiscal period
ended October 31, 2012), the Investment Corporation completed work across its entire portfolio totaling ¥1,305 million. This total comprised of¥904 million in capital expenditures and ¥400 million for repairs, maintenance and renovation expenses.
Property Name
(Location)
KDX Higashi-Shinagawa Building(Shinagawa-ku, Tokyo)
KDX Nishi-Gotanda Building(Shinagawa-ku, Tokyo)
Sendai Nikko Building(Sendai, Miyagi)
KDX Kayabacho Building(Chuo-ku, Tokyo)
KDX Nishi-Shinjuku Building(Shinjuku-ku, Tokyo)
KDX Yoyogi Building(Shibuya-ku, Tokyo)
Tachikawa Ekimae Building(Tachikawa, Tokyo)
KDX Niigata Building(Niigata, Niigata)

Schedule

PurposeAir conditioning system construction, otherMay 2012
to October 2012

Amount of Capital Expenditures(Millions of Yen)122

Air conditioning system construction, other

As above94

Air conditioning system construction, other

As above90

Upgrade of common areas, other

As above40

Air conditioning system construction, other

As above39

Air conditioning system construction, other

As above35

Air conditioning system construction, other

As above25

Air conditioning system construction, other

As above

19

Others436

Portfolio Total

904

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

-42-

KENEDIX REALTY INVESTMENT CORPORATION (8972)③ 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 andallocates a portion of its cash flows generated during the period to a reserve for repairs, maintenance and renovation to meet large-scalerenovation over the medium- to long-terms. The following amount has been transferred to the reserve from period cash flows.
(Millions of Yen)
Fiscal period
Reserve for the end of theprevious period
Reserve for the fiscal
period under review
Reversal of reserve for the
fiscal period under review
Reserve brought forward to
the next period

Eleventh Fiscal Period

Twelfth Fiscal Period

Thirteenth Fiscal Period

Fourteenth Fiscal Period(May 1, 2010 to
October 31, 2010)

Fifteenth Fiscal Period(November 1, 2010 to(May 1, 2011 to(November 1, 2011 to(May 1, 2012 toApril 30, 2011)

October 31, 2011)

April 30, 2012)

October 31, 2012)

444

430

440

517

643

-

10

96

296

224

14

-

19

170

364

430

440

517

643

503

-43-

KENEDIX REALTY INVESTMENT CORPORATION (8972)(iii) Details of the Tenants
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Total Leasable
Floor Area(㎡)(Note 1)

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

No. ofTenants(Note 5)A-1

KDX Nihonbashi 313 Building

5,892.63

5,892.63

-

-

10

A-3

Higashi-Kayabacho Yuraku Building

4,413.17

3,930.86

-

-

A-4

KDX Hatchobori Building

3,323.73

3,323.73

-

-

A-5

KDX Nakano-Sakaue Building

4,390.27

4,390.27

18

A-6

Harajuku F.F. Building

3,068.36

3,068.36

A-7

FIK Minami Aoyama

1,814.56

1,604.94

A-8

Kanda Kihara Building

1,947.40

A-13

KDX Kojimachi Building

A-14
A-15

Total Rental
Leasehold andOccupancyand Other Operating Security Deposits
Ratio (%）
Revenues(¥thousands)(Note 6)(¥thousands)(Note 7)(Note 8)100.0

180,046

231,708

6

89.1

157,130

209,6565

100.0

138,476

144,341

17

24

100.0

78,16887,481

-

-

3

100.0

109,500

169,343

-

-

7

88.4

75,687

101,221

1,947.40

-

-

9

100.0

68,951

123,204

3,793.02

3,793.02

-

-

10

100.0

138,765

225,859

KDX Funabashi Building

3,835.77

3,835.77

-

-

22

100.0

100,697

125,210KDX Hamacho Building

3,101.38

3,101.38

-

-

10

100.0

85,694

107,536

A-16

Toshin 24 Building

6,618.81

6,618.81

-

-

19

100.0

196,783

245,332

A-17

KDX Ebisu Building

3,077.60

3,077.60

-

-

6

100.0

134,370

227,664

A-19

KDX Hamamatsucho Building

2,724.35

2,724.35

-

-

8

100.0

107,583

147,918

A-20

KDX Kayabacho Building

3,019.93

3,019.93

-

-

7

100.0

54,614

107,732

A-21

KDX Shinbashi Building

1,698.08

1,698.08

-

-

7

100.0

77,525

116,631

A-22

KDX Shin-Yokohama Building

4,799.71

4,580.91

-

-

18

95.4

100,626

166,103

A-23

KDX Yotsuya Building

2,530.71

2,530.71

-

-

4

100.0

94,174142,123

A-26

KDX Kiba Building

2,452.94

2,452.94

-

-

6

100.0

53,69775,777

A-27

KDX Kajicho Building

2,564.11

2,564.11

-

-

10

100.0

82,66398,540A-28

KDX Nogizaka Building

1,250.76

977.28

1

1

5

78.1

23,343

17,575A-29

KDX Higashi-Shinjuku Building

5,930.96

5,930.96

-

-

6

100.0

113,629

120,647

A-30

KDX Nishi-Gotanda Building

3,881.58

3,881.58

-

-

5

100.0

147,425

211,227

A-31

KDX Monzen-Nakacho Building

2,010.41

2,010.41

-

-

6

100.0

50,452

43,788A-32

KDX Shiba-Daimon Building

5,984.71

4,954.42

-

-

8

82.8

185,265

160,675

A-33

KDX Okachimachi Building

1,792.54

1,792.54

-

-

2

100.0

69,080110,237

A-34

KDX Hon-Atsugi Building

2,747.27

2,362.29

-

-

9

86.0

57,70975,091A-35

KDX Hachioji Building

2,178.61

2,178.61

-

-

8

100.0

50,96247,023A-37

KDX Ochanomizu Building

5,880.71

5,301.16

-

-

5

90.1

190,890

202,750

A-38

KDX Nishi-Shinjuku Building

1,593.60

1,593.60

-

-

8

100.0

39,08456,835

A-39

KDX Toranomon Building

1,966.56

1,966.56

-

-

7

100.0

97,088

179,712

A-40

Toranomon Toyo Building

6,499.63

6,299.81

-

-

9

96.9

286,921507,244

A-41

KDX Shinjuku 286 Building

2,444.43

2,444.43

-

-

9

100.0

85,240103,339

A-45

KDX Roppongi 228 Building

1,909.08

1,039.19

-

-

5

54.4

44,24549,292

A-46

Hiei Kudan-Kita Building

6,897.59

6,897.59

-

-

14

100.0

232,336

300,638

A-47

KDX Shin-Yokohama 381 Building

8,126.69

7,448.51

-

-

39

91.7

151,939

225,304

A-48

KDX Kawasaki-Ekimae Hon-cho
Building

5,124.98

5,124.98

-

-

1

100.0

103,020

155,091

A-49

Nissou Dai-17 Building

2,739.62

2,366.99

-

-

5

86.4

60,48464,860A-50

Ikejiri-Oohashi Building

2,454.80

2,454.80

-

-

7

100.0

55,61382,381A-51

KDX Hamacho Nakanohashi
Building

2,239.13

2,239.13

-

-

9

100.0

64,60986,475A-52

KDX Kanda Misaki-cho Building

1,334.76

1,334.76

-

-

8

100.0

37,99545,898

A-55

Shin-toshin Maruzen Building

1,912.28

1,912.28

-

-

5

100.0

78,586

72,273A-56

KDX Jimbocho Building

2,321.80

2,321.80

-

-

3

100.0

72,02596,451A-57

KDX Gobancho Building

1,650.37

1,650.37

-

-

7

100.0

48,33856,309A-59

KDX Iwamoto-cho Building

1,530.15

1,530.15

3

3

10

100.0

46,60859,138A-60

KDX Harumi Building

9,294.00

6,538.04

-

-

6

70.3

130,325

279,551

A-61

KDX Hamamatsucho Dai-2 Building

1,953.50

1,712.08

-

-

7

87.6

59,696

84,910A-62

Koishikawa TG Building

3,945.54

3,945.54

-

-

5

100.0

126,636

157,041-44-

KENEDIX REALTY INVESTMENT CORPORATION (8972)
Type

Area

No.

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

Property Name

Residential
Properties

No. ofTenants(Note 5)

3,166.56

3,166.56

-

-

10

100.0

95,579130,319

A-64

KDX Nihonbashi 216 Building

1,615.20

1,615.20

-

-

8

100.0

61,31094,736A-66

KDX Shinjuku Building

5,868.40

5,868.40

-

-

23

100.0

241,254

315,662

A-67

KDX Ginza 1chome Building

3,573.59

3,573.59

-

-

5

100.0

143,637

178,693

A-68

KDX Nihonbashi Honcho Building

3,998.39

3,998.39

-

-

8

100.0

131,174

204,126

A-71

KDX Iidabashi Building

4,429.25

4,429.25

-

-

5

100.0

148,366

227,405

A-72

KDX Higashi-Shinagawa Building

7,110.62

7,110.62

-

-

6

100.0

151,774

224,869

A-73

KDX Hakozaki Building

3,992.60

3,992.60

-

-

8

100.0

105,734

164,334

A-74

KDX Shin-Nihonbashi Building

2,658.79

2,658.79

-

-

10

100.0

89,171

114,941

A-75

KDX Nihonbashi Kabutocho
Building

7,833.19

7,833.19

-

-

1

100.0

565,493

600,127

A-76

Ikebukuro Nikko Building

1,984.47

1,984.47

-

-

2

100.0

72,674105,144

A-77

Kabutocho Nikko Building II

1,395.78

1,395.78

-

-

4

100.0

54,20382,526

A-78

Tachikawa Ekimae Building

1,612.13

1,612.13

-

-

5

100.0

64,27586,432

A-83

Fuchu South Building

10,151.48

9,964.32

-

-

32

98.2

66,516

344,763

A-84

Kasuga Business Center Building

4,349.05

4,162.79

-

-

12

95.7

27,338139,329

A-85

Nakameguro Business Center
Building

2,675.97

2,675.97

-

-

5

100.0

21,189113,839

A-12

Portus Center Building

11,581.92

10,362.22

-

-

27

89.5

290,465

353,767

A-24

KDX Minami Semba Dai-1 Building

3,108.16

2,414.46

-

-

9

77.7

50,84961,480A-25

KDX Minami Semba Dai-2 Building

2,697.65

2,697.65

-

-

24

100.0

47,70647,072

A-36

KDX Niigata Building

4,064.93

2,741.87

-

-

21

67.5

51,44555,446

A-42

Karasuma Building

8,745.02

8,673.80

-

-

38

99.2

216,965

277,484

A-44

KDX Sendai Building

3,958.64

3,713.76

-

-

30

93.8

85,366

179,360

A-53

KDX Hakata-Minami Building

9,924.22

9,256.08

-

-

51

93.3

151,664

219,226

A-54

KDX Kitahama Building

3,995.50

3,708.71

-

-

11

92.8

74,366

83,327

A-58

KDX Nagoya Sakae Building

6,923.12

6,923.12

-

-

16

100.0

192,295

213,796

A-69

KDX Kobayashi-Doshomachi Building

7,072.23

6,454.51

-

-

12

91.3

187,155

256,332

A-70

Kitananajo SIA Building

3,788.73

3,788.73

-

-

19

100.0

98,944

108,492

A-79

Nagoya Ekimae Sakura-dori Building

7,933.82

7,443.06

-

-

18

93.8

313,888496,515

A-80

Nagoya Nikko Shoken Building

7,994.75

7,834.12

-

-

9

98.0

197,353

275,852

A-81

Sendai Nikko Building

2,539.01

1,915.21

-

-

4

75.4

52,12070,303

A-82

View Flex Umeda Building

4,986.24

4,762.89

-

-

10

95.5

127,122

99,956318,392.00

303,097.90

22

21

852

95.2

8,922,121

12,430,826

2,046.79

2,046.79

20

20

20

100.0

40,414

15,212100.0

149,559

50,58096.1

91,321

25,163B-3Court Mejiro

B-19

Residence Charmante Tsukishima

7,711.14

7,711.14

140

140

B-18

Venus Hibarigaoka

12,829.64

12,327.61

159

153

116

Subtotal of Residential Properties (3 properties)

Other
Regional
Areas

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

Gotanda TG Building

1(Note 9)22,587.57

22,085.54

319

313

137

97.8

281,294

90,955

C-1

Frame Jinnan-zaka

4,653.40

4,653.40

-

-

12

100.0

265,460

279,259

C-2

KDX Yoyogi Building

1,182.14

1,182.14

-

-

11

100.0

68,549108,150

Subtotal of Central Urban Retail Properties (2 properties)

5,835.54

5,835.54

-

-

23

100.0

334,010

387,410

4,338.61

4,338.61

-

-

2

100.0

62,423130,776

4,338.61

4,338.61

-

-

2

100.0

62,423130,776334

1,014(Note 10)95.5

9,599,850

13,039,968

CentralTokyo
Urban Retail Metropolitan
Properties
Area

OthersTotal No. of
Total No. of
Total Leased
Leasable
LeasedFloor Area
Residential units Residential units(㎡)(Note 2)(Note 3)(Note 4)

A-63

Subtotal of Office Buildings (78 properties)
Tokyo
Metropolitan
Area

Total Leasable
Floor Area(㎡)(Note 1)

Other
Regional
Areas

D-1

Kanazawa Nikko Building

Subtotal of Others (1 property)
Total of 84 properties
Occupancy Ratio over the Past Five Years

351,153.72
April 30, 2008

95.9%

October 31, 2008

95.6%

April 30, 2009

95.7%

October 31, 2009

94.7%

335,357.59

-45-

341

KENEDIX REALTY INVESTMENT CORPORATION (8972)
April 30, 2010

94.4%

October 31, 2010

93.6%

April 30, 2011

94.6%

October 31, 2011

94.7%

April 30, 2012

95.4%

October 31, 2012

95.5%

Notes:
1. Total leasable floor area refers to the leasable floor area for each Property including the building (aggregate total of the leasable floor area of each building in thecase of more than one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans.
2. Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
3. The total number of leasable residential units and the number of leased residential units refers to the portion of the building used for residential purposes.
4. The total number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end tenantsor sub-lease agreements are singed.
5. The total number of tenants refers to the actual number of end tenants for each property. However, for Residence Charmante Tsukishima, please refer to Note 9.
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.
(Reference) Total operating rental and other revenues for one office building sold during the Fifteenth Fiscal Period
Total Rental and Other Operating Revenues (¥thousands)

Type of Property

No.

Property Name

Office Building

A-18

KDX Omori Building

7,742

Residential Property

B-34

Gradito Kawaguchi

9,761

8. Guarantee and security deposits refers to the total of the balances of security deposits held (including net security deposits in the case of discount) and guarantee
deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest thousand yen.
9. Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-term lease: until January 30, 2014) fixed-term building lease contract(term of contract: to January 30, 2029) with Sekiwa Real Estate, Ltd., a master lessor, the total number of tenants is indicated as 1.
10. The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.

(iv) 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 fifteenth fiscal period (fiscal period ended October 31, 2012).
(v) Information concerning major tenants①Tenant which holds more than 10% of the total leased area: Not applicable②Reference: Major end tenants
Leased Floor
Area(As of October 31, 2012)
Percentage of Total Leased
Floor Area (Note 1)

18,984.14 ㎡

5.7%

7,711.14 ㎡

2.3%

5,124.98 ㎡

1.5%

3,955.36 ㎡

1.2%

3,381.01 ㎡

1.0%

Subtotal

39,156.63 ㎡

11.7%

Total Portfolio

335,357.59 ㎡

100.0%Name of End Tenant

Property Name

1

SMBC Nikko Securities, Inc.
(Note 2)

2

Sekiwa Real Estate, Ltd.

KDX Nihonbashi Kabutocho Building, Ikebukuro Nikko Building,
Kabutocho Nikko Building II, Tachikawa Ekimae Building, Nagoya
Ekimae Sakura-dori Building, Nagoya Nikko Shoken Building,Sendai Nikko Building, Kanazawa Nikko Building
Residence Charmante Tsukishima

3

N / A (Note 3)
The Bank of Tokyo-Mitsubishi
UFJ, Ltd.
Kodak Japan Ltd.

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

45Notes:
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. SMBC Nikko Securities Inc. terminated its lease agreement on November 30, 2012 for KDX Nihonbashi Kabutocho Building (7,833.19 ㎡).
3. Not disclosed due to the tenants’ request.

-46-

【Reference】

a0011
a0031
a0041
a0051
a0061
a0071
a0081
a0131
a0141
a0151
a0161
a0171
Earnings Performance for the Individual Properties for the 15th Fiscal Period (May 1, 2012 to October 31, 2012)：184days※As of October 31, 2012

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A01

Property NameKDX Nihonbashi
313 Building

Acquisition Date

A03

A04

A05

HigashiKDX Hatchobori KDX NakanoKayabacho
Building
Sakaue Building
Yuraku Building

a0191

a0201

A06

A07

A08

A13

A14

A15

A16

A17

A19

Harajuku F.F.
Building

FIK Minami
AoyamaKanda Kihara
Building

KDX Kojimachi
Building

KDX Funabashi
Building

KDX Hamacho
Building

Toshin 24
Building

KDX Ebisu
Building

KDX
Hamamatsucho
Building

a0211

A20

a0221

A21

A22

KDX Kayabacho KDX Shinbashi
Building
Building

KDX ShinYokohama
Building

Price Information

August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 August 1, 2005 November 1, 2005 March 1, 2006 March 16, 2006 May 1, 2006 May 1, 2006 May 1, 2006 May 1, 2006 May 1, 2006 May 1, 2006
5,940
4,450
3,680
2,533
2,450
2,270
1,950
5,950
2,252
2,300
5,300
4,640
3,460
2,780
2,690
2,520
2.0%
1.5%
1.3%
0.9%
0.8%
0.8%
0.7%
2.0%
0.8%
0.8%
1.8%
1.6%
1.2%
0.9%
0.9%
0.9%
6,082
4,328
3,340
2,443
2,443
2,247
1,842
5,619
2,383
2,249
5,087
4,546
3,227
2,861
2,689
2,435
6,380
5,010
3,440
2,250
2,980
2,190
1,800
4,400
1,950
2,280
4,010
4,150
3,170
2,420
2,640
2,240
2.4%
1.9%
1.3%
0.8%
1.1%
0.8%
0.7%
1.7%
0.7%
0.9%
1.5%
1.6%
1.2%
0.9%
1.0%
0.8%
10
6
5
24
3
7
9
10
22
10
19
6
8
7
7
18
5,892.63
4,413.17
3,323.73
4,390.27
3,068.36
1,814.56
1,947.40
3,793.02
3,835.77
3,101.38
6,618.81
3,077.60
2,724.35
3,019.93
1,698.08
4,799.71
5,892.63
3,930.86
3,323.73
4,390.27
3,068.36
1,604.94
1,947.40
3,793.02
3,835.77
3,101.38
6,618.81
3,077.60
2,724.35
3,019.93
1,698.08
4,580.91

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

100.0%
94.6%
85.2%
71.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Lease Information

As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008

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

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

100.0%
98.3%
84.1%
100.0%
96.5%
100.0%
91.3%
92.3%
96.5%
100.0%

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

88.4%
100.0%
100.0%
100.0%
100.0%
77.1%
100.0%
100.0%
100.0%
100.0%

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

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

100.0%
100.0%
98.7%
100.0%
98.5%
100.0%
100.0%
100.0%
98.4%
100.0%

100.0%
95.0%
95.0%
100.0%
93.9%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
96.2%
84.7%
72.7%
84.1%
93.3%
100.0%
100.0%
100.0%

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

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

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

100.0%
99.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

95.4%
97.9%
93.1%
93.1%
74.0%
86.3%
93.1%
93.1%
83.2%
100.0%

Income and Retained Earnings Information for the 15th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

180,046

157,130

138,476

78,168109,500

75,687

68,951

138,765

100,697

85,694

196,783

134,370

107,583

54,614

77,525

100,626

Rental revenues

161,515

143,743

118,576

67,437

99,10467,08962,477

115,438

86,96874,326160,637

115,685

97,43045,70970,096

86,043

Other operating revenues

18,53013,386

19,89910,731

10,395

8,597

6,473

23,327

13,72911,36736,146

18,685

10,153

8,905

7,428

14,58357,62333,34135,47431,512

24,84020,36917,00644,001

31,48427,27853,20637,33926,90544,893

22,571

34,438Property management fees

15,252

12,744

12,759

8,691

6,841

5,323

6,214

10,17012,9598,727

18,151

9,582

7,712

5,798

6,305

12,657

Taxes

20,680

8,998

8,669

7,556

8,042

5,727

4,065

17,023

7,350

7,040

12,34010,998

9,057

6,322

9,454

6,564

Utilities

14,403

9,211

11,241

6,733

6,552

5,434

5,863

12,535

9,390

6,887

21,103

11,184

6,240

6,446

5,508

9,691

Repairs and maintenance costs

1,204

838

1,130

2,342

804

1,362

189

1,602

1,402

1,008

479

574

407

18,548

398

855

230

160

143

177

107

57

64

162

153

115

241

123

93

106

84

155

Trust fees and other expenses

5,853

1,386

1,530

6,010

2,492

2,463

608

2,507

228

3,498

890

4,876

3,393

7,671

821

4,514

③ＮＯＩ （＝①-②） (\ Thousands)

122,423

123,788

103,00246,65684,65955,31851,94594,764

69,21358,415

143,577

97,03180,6789,720

54,953

66,187④Depreciation (\ Thousands)

27,382

26,951

17,26915,225

9,381

6,415

8,903

18,964

19,221

19,65535,60018,72422,744

17,194

6,710

22,124⑤Rental operating income （＝③-④） (\ Thousands)

95,04096,83785,732

31,431

75,277

48,90243,04275,80049,991

38,760107,976

78,30657,933

ᇞ7,47348,24344,063-

6,409

12,634

11,404

10,128

6,295

2,385

10,789

4,596

7,833

1,627

7,146

4,912

40,298

3,010

5,965

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

122,423

117,379

90,36835,251

74,531

49,02249,55983,97564,61750,582

141,949

89,88475,765

ᇞ30,577

51,94360,222

Expense ratio （＝②／①）

32.0%
41,345
6,172
3.43%

21.2%
17,997
5,733
3.65%

25.6%
17,339
4,928
3.56%

40.3%
15,104
2,547
3.26%

22.7%
16,085
3,962
3.62%

26.9%
11,454
2,673
3.53%

24.7%
8,131
2,467
3.58%

31.7%
34,046
4,765
3.43%

31.3%
14,703
3,467
3.44%

31.8%
14,070
2,941
3.43%

27.0%
24,637
6,946
3.53%

27.8%
21,998
4,722
3.51%

25.0%
18,115
3,842
3.57%

82.2%
12,642
1,312
2.40%

29.1%
18,911
2,703
3.49%

34.2%
13,1233,404
3.38%

214,470
17,872

107,050
8,920

158,190
13,182

141,400
11,783

160,510
13,37571,7905,982

80,4306,702

180,970
15,080160,670
13,389134,170
11,180217,670
18,139147,940
12,328135,060
11,255120,000
10,000111,266
9,272

152,030
12,669②Property-related expenses (\ Thousands)

Insurance⑥Capital expenditures (\ Thousands)

Property tax for the year 2012(\ Thousands)
Reference

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

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

-47-

【Reference】

a0231
a0261
a0271
a0281
a0291
a0301
a0311
a0321
a0331
a0341
a0351
a0371
Earnings Performance for the Individual Properties for the 15th Fiscal Period (May 1, 2012 to October 31, 2012)：184days※As of October 31, 2012

Type

Office Buildings

Location

Tokyo Metropolitan Area
A30

A31

A32

a0381

a0391

A33

A34

A35

A37

A38

KDX Hon-Atsugi
Building

KDX Hachioji
Building

KDX
Ochanomizu
Building

KDX NishiShinjuku
Building

A39

a0411

Property No.

A23

A26

A27

A28

A29

Property NameKDX Yotsuya
Building

KDX Kiba
Building

KDX Kajicho
Building

KDX Nogizaka
Building

KDX HigashiShinjuku
Building

KDX Toranomon Toranomon Toyo
Building
Building

KDX Shinjuku
286 Building

Acquisition Date

May 1, 2006 June 20, 2006

July 3, 2006

July 14, 2006 September 1, 2006 December 1, 2006 January 19, 2007 March 1, 2007 March 1, 2007 March 1, 2007 March 1, 2007 April 2, 2007 April 2, 2007 April 17, 2007 June 1, 2007

June 1, 2007

KDX NishiKDX MonzenKDX ShibaGotanda Building Nakacho Building Daimon Building

KDX
Okachimachi
Building

a0401

A40

A41

Price Information

1,950
0.7%
1,971
2,460
0.9%
4
2,530.71
2,530.71

1,580
0.5%
1,551
1,410
0.5%
6
2,452.94
2,452.94

2,350
0.8%
2,378
2,360
0.9%
10
2,564.11
2,564.11

1,065
0.4%
1,122
696
0.3%
5
1,250.76
977.28

2,950
1.0%
3,180
3,320
1.2%
6
5,930.96
5,930.96

4,200
1.4%
4,104
3,730
1.4%
5
3,881.58
3,881.58

1,400
0.5%
1,398
1,130
0.4%
6
2,010.41
2,010.41

6,090
2.1%
6,170
4,510
1.7%
8
5,984.71
4,954.42

2,000
0.7%
2,114
1,800
0.7%
2
1,792.54
1,792.54

1,305
0.4%
1,163
1,070
0.4%
9
2,747.27
2,362.29

1,155
0.4%
1,277
831
0.3%
8
2,178.61
2,178.61

6,400
2.2%
6,624
6,230
2.3%
5
5,880.71
5,301.16

1,500
0.5%
1,577
1,130
0.4%
8
1,593.60
1,593.60

4,400
1.5%
4,780
3,380
1.3%
7
1,966.56
1,966.56

9,850
3.4%
9,844
10,3003.9%
96,499.63
6,299.81

2,300
0.8%
2,387
2,190
0.8%
9
2,444.43
2,444.43

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

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.0%

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

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

100.0%
99.7%
83.3%
100.0%
100.0%
100.0%
100.0%
97.0%
86.2%
82.2%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
91.9%
100.0%
100.0%

100.0%
100.0%
100.0%
84.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

82.8%
100.0%
100.0%
100.0%
100.0%
97.3%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.7%

86.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.6%
100.0%

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

90.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
90.2%
100.0%

100.0%
88.6%
100.0%
87.6%
87.6%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
89.3%
78.6%
78.6%
100.0%

96.9%
95.1%
100.0%
100.0%
95.4%
93.9%
95.4%
100.0%
100.0%
99.1%

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

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

94,17453,697

82,663

23,343

113,629

147,425

50,452

185,265

69,08057,70950,962

190,890

39,08497,088286,921

85,240Rental revenues

84,54346,48273,517

19,766

97,336

124,862

41,767

168,801

60,421

49,16943,257

179,917

32,012

90,836274,234

71,991Other operating revenues

9,630

7,215

9,146

3,576

16,292

22,563

8,685

16,464

8,659

8,540

7,704

10,972

7,072

6,251

12,686

13,24826,180Acquisition price (\ Millions)
Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)Occupancy ratio

Lease Information

As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008

Income and Retained Earnings Information for the 15th Fiscal Period②Property-related expenses (\ Thousands)

22,687

17,19819,974

10,04743,80542,062

21,112

44,133

16,582

17,40021,95744,95817,90222,00967,409Property management fees

9,226

5,240

7,257

3,059

12,728

11,665

4,527

15,712

5,872

6,519

10,23011,851

4,330

6,113

20,283

7,276

Taxes

6,351

4,752

5,359

3,459

13,448

9,093

3,147

11,384

2,929

3,675

4,057

14,773

4,314

9,276

27,7598,066

Utilities

6,074

4,909

5,838

2,770

15,471

10,022

5,895

14,037

5,000

5,340

5,205

12,315

4,675

4,027

15,1697,453

Repairs and maintenance costs

264

741

619

595

639

5,517

4,185

1,416

901

347

600

3,868

3,081

693

1,053

2,342

Insurance

88

78

86

43

216

147

75

192

51

105

71

218

58

67

239

101

Trust fees and other expenses

681

1,476

813

120

1,301

5,616

3,280

1,389

1,826

1,412

1,792

1,931

1,442

1,832

2,904

939
59,060③ＮＯＩ （＝①-②） (\ Thousands)

71,48736,49962,68813,296

69,823

105,363

29,340141,132

52,49840,30829,004145,931

21,18275,078219,512④Depreciation (\ Thousands)

10,12013,071

12,811

5,626

19,76329,784

9,578

29,0998,090

14,961

10,05327,161

6,340

13,283

12,471

9,810⑤Rental operating income （＝③-④） (\ Thousands)

61,36623,42849,877

7,669

50,06075,57919,761

112,033

44,40725,347

18,950118,770

14,842

61,795207,040

49,249⑥Capital expenditures (\ Thousands)

1,674

1,992

4,384

3,422

4,087

94,948

5,409

418

701

5,828

5,746

9,666

39,441

2,951

1,704

5,038

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

69,81234,50758,304

9,873

65,736

10,41523,930140,714

51,79734,48023,257

136,265

ᇞ18,259

72,127

217,80754,021

Expense ratio （＝②／①）

24.1%
12,645
3,380
3.59%

32.0%
9,485
1,840
3.43%

24.2%
10,718
2,966
3.59%

43.0%
6,917
747
3.20%

38.6%
26,898
3,743
3.29%

28.5%
18,179
5,158
3.50%

41.8%
6,289
1,628
3.23%

23.8%
22,766
6,661
3.60%

24.0%
5,855
2,481
3.59%

30.2%
7,349
2,000
3.47%

43.1%
8,113
1,631
3.20%

23.6%
29,545
6,873
3.60%

45.8%
8,626
1,229
3.15%

22.7%
18,552
3,513
3.62%

23.5%
55,518
10,335
3.60%

30.7%
16,132
2,944
3.45%

90,0207,501

93,6507,804

87,5907,299

49,9504,162

149,280
12,440133,200
11,100113,920
9,493

169,180
14,09855,4304,619

147,990
12,332

100,3808,365

249,810
20,81774,5606,213

75,6806,306

286,720
23,893

143,300
11,941

Property tax for the year 2012(\ Thousands)
Reference

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

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

-48-

【Reference】

a0451
a0461
a0471
a0481
a0491
a0501
a0511
a0521
a0551
a0561
a0571
a0591
Earnings Performance for the Individual Properties for the 15th Fiscal Period (May 1, 2012 to October 31, 2012)：184days※As of October 31, 2012

Type

Office Buildings

Location

Tokyo Metropolitan Area

a0601

A45

A46

A47

A48

A49

A50

A51

A52

Property NameKDX Roppongi
228 Building

Hiei Kudan-Kita
Building

KDX ShinYokohama 381
Building

KDX KawasakiEkimae Hon-cho
Building

Nissou Dai-17
Building

Ikejiri-Oohashi
Building

KDX Hamacho
Nakanohashi
Building

KDX Kanda
Misaki-cho
Building

Acquisition Date

January 10, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 1, 2008 February 29, 2008 March 31, 2008 March 31, 2008 May 1, 2008

Price Information

Percentage of total portfolio
Net book value (\ Millions)Appraisal value at the end of period (\ Millions)
Percentage of total appraisal value
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)

a0621

a0631
O

Property No.

Acquisition price (\ Millions)

a0611

A55

A56

Shin-toshin
KDX Jimbocho
Maruzen Building
Building

A57

A59

A60

A61

A62

A63

KDX Gobancho
Building

KDX Iwamotocho Building

KDX Harumi
Building

KDX
Hamamatsucho
Dai-2 Building

Koishikawa TG
Building

Gotanda TG
Building

June 30, 2008 September 1, 2008 November 18, 2009 November 18, 2009

3,300
1.1%
3,433
2,160
0.8%
5
1,909.08
1,039.19

7,600
2.6%
7,633
7,400
2.8%
14
6,897.59
6,897.59

5,800
2.0%
5,864
3,990
1.5%
39
8,126.69
7,448.51

3,760
1.3%
3,762
2,990
1.1%
1
5,124.98
5,124.98

2,710
0.9%
2,606
1,570
0.6%
5
2,739.62
2,366.99

2,400
0.8%
2,443
1,460
0.5%
7
2,454.80
2,454.80

2,310
0.8%
2,341
1,700
0.6%
9
2,239.13
2,239.13

1,380
0.5%
1,373
940
0.4%
8
1,334.76
1,334.76

2,110
0.7%
2,154
1,550
0.6%
5
1,912.28
1,912.28

2,760
0.9%
2,897
1,860
0.7%
3
2,321.80
2,321.80

1,951
0.7%
1,979
1,440
0.5%
7
1,650.37
1,650.37

1,864
0.6%
1,789
1,310
0.5%
10
1,530.15
1,530.15

10,250
3.5%
9,624
8,240
3.1%
6
9,294.00
6,538.04

2,200
0.8%
2,284
1,860
0.7%
7
1,953.50
1,712.08

3,080
1.1%
3,125
3,040
1.1%
5
3,945.54
3,945.54

2,620
0.9%
2,804
2,580
1.0%
10
3,166.56
3,166.56

54.4%
65.1%
65.1%
65.1%
65.1%
65.1%
52.4%
65.2%
78.0%
80.4%

100.0%
91.4%
98.8%
95.9%
85.3%
91.9%
100.0%
100.0%
100.0%
100.0%

91.7%
91.5%
93.0%
89.5%
100.0%
100.0%
100.0%
92.1%
97.5%
94.6%

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

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

100.0%
100.0%
54.9%
74.4%
91.3%
100.0%
91.3%
82.6%
100.0%
91.3%

100.0%
100.0%
100.0%
100.0%
93.0%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
86.9%
86.9%
100.0%
100.0%
100.0%
100.0%
86.9%

100.0%
100.0%
81.2%
100.0%
100.0%
100.0%
100.0%
64.3%
80.9%
100.0%

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

100.0%
100.0%
100.0%
100.0%
85.7%
85.7%
85.7%
100.0%
85.7%
100.0%

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

70.3%
70.3%
88.9%
98.2%
98.2%
98.2%
100.0%
100.0%
100.0%
-

87.6%
87.6%
100.0%
100.0%
100.0%
87.5%
100.0%
100.0%
100.0%-

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

100.0%
100.0%
80.0%
80.0%
77.1%
57.8%
184daysOccupancy ratio
Lease Information

As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008

Income and Retained Earnings Information for the 15th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

44,245

232,336

151,939

103,020

60,48455,61364,60937,99578,58672,02548,33846,608130,325

59,696

126,636

95,57938,700207,025

126,018

93,13851,58542,412

53,18435,14349,421

65,772

43,73343,710104,991

49,540108,249

85,905

5,545

25,311

25,921

9,882

8,899

13,201

11,424

2,851

29,165

6,252

4,605

2,898

25,334

10,156

18,386

9,674

19,281

86,82463,90034,902

21,731

22,027

18,665

9,532

22,074

17,733

14,437

12,65475,42919,341

42,12025,920Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees

4,795

29,473

12,625

12,782

7,499

5,569

6,856

3,940

6,843

5,471

4,571

3,740

28,9204,561

14,684

8,155

Taxes

7,289

24,927

12,930

7,216

5,208

6,256

5,547

2,494

4,620

6,846

4,119

3,048

18,284

8,061

9,941

8,552

Utilities

5,354

18,985

16,262

11,756

7,076

5,155

4,813

2,675

4,418

4,799

3,389

2,211

25,6903,961

13,714

7,779

Repairs and maintenance costs

1,600

4,767

18,087

1,958

683

4,125

493

243

4,941

322

363

860

196

94

1,370

427

Insurance

59

286

269

182

109

93

98

44

68

79

51

44

352

65

169

127

Trust fees and other expenses

181

8,384

3,725

1,006

1,154

827

856

134

1,182

214

1,941

2,749

1,983

2,595

2,240

877

③ＮＯＩ （＝①-②） (\ Thousands)

24,964

145,51288,038

68,11738,75333,58645,94328,46356,51154,29133,901

33,95454,89640,35484,51569,659④Depreciation (\ Thousands)

5,084

17,35048,23330,777

15,71811,017

12,230

4,177

7,885

10,446

10,59013,18277,286

5,120

14,547

13,122⑤Rental operating income （＝③-④） (\ Thousands)

19,880128,161

39,80537,33923,03522,56933,71324,286

48,626

43,84523,31020,771

ᇞ22,389

35,23469,96756,536⑥Capital expenditures (\ Thousands)

4,097

928

23,817

510

3,660

2,111

6,763

664

1,410

8,107

1,810

6,908

-

1,553

6,850

2,030

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

20,866

144,584

64,22067,60735,092

31,47539,18027,79955,101

46,18332,09027,04554,89638,801

77,66567,629

Expense ratio （＝②／①）

43.6%
14,577
1,412
3.19%

37.4%
49,854
7,711
3.32%

42.1%
25,861
4,897
3.22%

33.9%
14,435
3,492
3.39%

35.9%
10,415
2,025
3.35%

39.6%
12,512
1,820
3.27%

28.9%
11,095
2,256
3.49%

25.1%
4,987
1,356
3.57%

28.1%
9,816
2,757
3.51%

24.6%
13,676
2,577
3.58%

29.9%
8,239
1,678
3.47%

27.2%
6,094
1,644
3.53%

57.9%
36,568
3,780
2.90%

32.4%
16,122
2,041
3.42%

33.3%
19,881
4,309
3.40%

27.1%
17,106
3,372
3.53%

54,6804,556

296,707
24,725

216,990
18,082

157,210
13,10088,480
7,373

158,270
13,189130,030
10,835

46,1403,845

70,9005,908

98,3998,199

55,2304,602

19,6801,640

110,320
9,193

81,7106,809

230,330
19,194

207,750
17,312

Property tax for the year 2012(\ Thousands)
Reference

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

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

-49-

【Reference】

a0641
a0661
a0671
a0681
a0711
a0721
a0731
a0741
a0751
a0761
a0771
a0781
Earnings Performance for the Individual Properties for the 15th Fiscal Period (May 1, 2012 to October 31, 2012)：184days※As of October 31, 2012

Type

Office Buildings

Location

Tokyo Metropolitan Area

Property No.

A64

A66

Property NameKDX Nihonbashi
216 Building

KDX Shinjuku
Building

Acquisition Date

December 1, 2009 February 18, 2010 November 12, 2010 November 12, 2010

Price Information

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

A67

A68

KDX Ginza
KDX Nihonbashi
1chome Building Honcho Building

A71

A72

A73

A74

KDX Iidabashi
Building

KDX HigashiShinagawa
Building

KDX Hakozaki
Building

KDX ShinNihonbashi
Building

A75

A76

A77

a0831

A78

KDX Nihonbashi
Ikebukuro Nikko Kabutocho Nikko
Tachikawa
Kabutocho
Building
Building Ⅱ
Ekimae Building
Building

a0841

a0851

a0121

Other
Regional
Areas
A12

A83

A84

A85

Fuchu South
Building

Kasuga BusinessCenter Building

Nakameguro
Business Center
Building

Portus Center
Building

July 22, 2011 July 22, 2011 July 22, 2011 July 22, 2011 December 26, 2011 December 26, 2011 December 26, 2011 December 26, 2011 September 21, 2012 September 21, 2012 September 21, 2012 September 21, 2005

2,010
0.7%
1,962
1,790
0.7%
8
1,615.20
1,615.20

6,800
2.3%
6,875
6,400
2.4%
23
5,868.40
5,868.40

4,300
1.5%
4,298
4,850
1.8%
5
3,573.59
3,573.59

4,000
1.4%
4,015
4,300
1.6%
8
3,998.39
3,998.39

4,670
1.6%
4,682
4,910
1.8%
5
4,429.25
4,429.25

4,590
1.6%
4,917
4,800
1.8%
6
7,110.62
7,110.62

2,710
0.9%
2,891
2,850
1.1%
8
3,992.60
3,992.60

2,300
0.8%
2,285
2,440
0.9%
10
2,658.79
2,658.79

11,2703.8%
11,311
12,1004.5%
17,833.19
7,833.19

1,653
0.6%
1,672
1,700
0.6%
2
1,984.47
1,984.47

1,280
0.4%
1,285
1,550
0.6%
4
1,395.78
1,395.78

1,267
0.4%
1,312
1,330
0.5%
5
1,612.13
1,612.13

6,120
2.1%
6,208
6,560
2.5%
32
10,151.48
9,964.32

2,800
1.0%
2,845
2,980
1.1%
12
4,349.05
4,162.79

1,880
0.6%
1,911
2,230
0.8%
5
2,675.97
2,675.97

5,570
1.9%
4,532
4,610
1.7%
27
11,581.92
10,362.22

100.0%
100.0%
100.0%
100.0%
75.0%
87.5%
-

100.0%
97.7%
100.0%
100.0%
93.7%
93.8%
-

100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%-

100.0%
89.2%
100.0%-

100.0%
100.0%
83.3%-

100.0%
100.0%
100.0%-

100.0%
100.0%-

100.0%
100.0%-

100.0%
100.0%-

100.0%
100.0%
-

98.2%
-

95.7%
-

100.0%
-

89.5%
89.5%
90.1%
95.8%
93.9%
88.5%
88.5%
93.4%
100.0%
100.0%

Occupancy ratio
Lease Information

As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008

Income and Retained Earnings Information for the 15th Fiscal Period

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days

41days

41days

41days184days①Rental and other operating revenues (\ Thousands)

61,310241,254

143,637

131,174

148,366

151,774

105,734

89,171

565,493

72,67454,20364,27566,51627,33821,189290,465

Rental revenues

54,994

195,228

132,895

120,514132,774

130,215

96,50179,649339,733

64,23948,412

54,697

58,79324,067

18,545232,078

Other operating revenues

6,316

46,026

10,741

10,66015,591

21,558

9,233

9,522

225,760

8,434

5,790

9,578

7,723

3,271

2,644

58,387

16,26081,99635,97536,163

41,18657,331

32,55927,432

239,238

21,826

17,39422,73815,916

4,889

3,212

125,947②Property-related expenses (\ Thousands)
Property management fees

5,505

22,335

9,410

9,360

10,85015,756

7,603

7,687

31,214

5,682

6,173

5,817

7,319

2,921

1,760

73,070

Taxes

4,573

28,293

12,52914,724

10,61516,09011,9507,310

31,300

7,833

4,505

7,029

1

-

-

22,893

Utilities

24,1183,816

25,850

8,970

8,013

15,94819,064

9,970

6,435

-

5,530

4,386

5,181

8,205

1,753

1,295

Repairs and maintenance costs

414

1,453

1,219

3,008

1,086

1,979

1,518

2,856

175,710

1,975

1,762

3,807

-

-

17

2,792

Insurance

59

299

137

137

160

250

181

106

386

105

64

80

79

30

17

2,136

Trust fees and other expenses

1,890

3,763

3,708

919

2,524

4,190

1,335

3,035

626

698

502

820

310

184

121

936

③ＮＯＩ （＝①-②） (\ Thousands)

45,049159,257

107,661

95,011

107,180

94,442

73,174

61,738326,254

50,84736,80841,53750,59922,44817,977

164,518④Depreciation (\ Thousands)

11,29916,318

11,441

9,484

15,68522,40821,81021,844

63,597

4,887

9,709

3,348

14,226

5,752

2,795

54,221⑤Rental operating income （＝③-④） (\ Thousands)

33,750142,939

96,21985,52791,49472,03451,36439,894

262,656

45,95927,09938,18836,373

16,69615,181

110,296⑥Capital expenditures (\ Thousands)

3,446

8,393

8,002

12,419682

122,730

2,838

12,231

11,227

1,569

605

25,706

-

980

-

2,266

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

41,603150,864

99,65882,592

106,498

ᇞ28,287

70,33649,507315,026

49,27736,203

15,83050,59921,46817,977

162,251

Expense ratio （＝②／①）

26.5%
9,146
2,170
3.54%

34.0%
56,585
8,173
3.39%

25.0%
25,061
5,128
3.57%

27.6%
29,445
4,616
3.52%

27.8%
21,231
5,215
3.52%

37.8%
32,180
5,024
3.31%

30.8%
23,901
3,651
3.45%

30.8%
14,621
3,079
3.45%

42.3%
62,60018,1983.22%

30.0%
15,666
2,520
3.47%

32.1%
9,010
1,857
3.43%

35.4%
14,059
2,159
3.36%

23.9%
49,450
2,390
3.59%

17.9%
22,536
1,016
3.72%

15.2%
10,572
799
3.77%

43.4%
45,7749,285
3.20%

31,1902,599

362,230
30,18580,6906,724

82,1806,848

117,560
9,796

256,450
21,370255,430
21,285102,390
8,532

549,760
45,813

170,320
14,193

69,160
5,763

121,540
10,128442,330
36,860204,470
17,039173,340
14,445

527,651
43,970Property tax for the year 2012(\ Thousands)
Reference

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

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

-50-

【Reference】

a0241
a0251
a0361
a0421
a0441
a0531
a0541
a0581
a0691
a0701
a0791
a0801
Earnings Performance for the Individual Properties for the 15th Fiscal Period (May 1, 2012 to October 31, 2012)：184days※As of October 31, 2012

Type

Office Buildings

Residential Properties

Location

Other Regional Areas

Tokyo Metropolitan Area

Property No.

A24

A25

A36

A42

A44

Property Name

KDX Minami
Semba Dai-1
Building

KDX Minami
Semba Dai-2
Building

KDX Niigata
Building

Karasuma
Building

KDX Sendai
Building

A53

Acquisition Date

May 1, 2006

May 1, 2006 March 1, 2007 June 1, 2007

A54

A58

KDX HakataKDX Kitahama
Minami Building
Building

A69

KDX Nagoya
Sakae Building

A70

KDX KobayashiKitananajo SIA
Doshomachi
Building
Building

a0811

a0821

b0031

A79

A80

A81

A82

Nagoya Ekimae
Sakura-dori
Building

Nagoya Nikko
Shoken Building

Sendai Nikko
Building

View Flex Umeda
Building

b0191

B03

B19

Court Mejiro

Residence
Charmante
TsukishimaJune 1, 2007 February 1, 2008 February 1, 2008 July 1, 2009 December 1, 2010 March 25, 2011 December 26, 2011 December 26, 2011 December 26, 2011 March 28, 2012 August 1, 2005 May 1, 2006

Price Information

1,610
0.5%
1,451
1,000
0.4%
9
3,108.16
2,414.46

1,560
0.5%
1,362
1,010
0.4%
24
2,697.65
2,697.65

1,305
0.4%
1,459
889
0.3%
21
4,064.93
2,741.87

5,400
1.8%
5,374
4,960
1.9%
38
8,745.02
8,673.80

2,100
0.7%
2,149
1,410
0.5%
30
3,958.64
3,713.76

4,900
1.7%
4,792
3,470
1.3%
51
9,924.22
9,256.08

2,220
0.8%
2,185
1,520
0.6%
11
3,995.50
3,708.71

7,550
2.6%
7,421
4,760
1.8%
16
6,923.12
6,923.12

2,870
1.0%
2,702
2,760
1.0%
12
7,072.23
6,454.51

2,005
0.7%
2,081
2,050
0.8%
19
3,788.73
3,788.73

7,327
2.5%
7,432
7,800
2.9%
18
7,933.82
7,443.06

4,158
1.4%
4,222
4,050
1.5%
9
7,994.75
7,834.12

950
0.3%
1,060
1,030
0.4%
4
2,539.01
1,915.21

2,770
0.9%
2,847
3,250
1.2%
10
4,986.24
4,762.89

1,250
0.4%
1,166
956
0.4%
20
2,046.79
2,046.79

5,353
1.8%
4,939
4,520
1.7%
1
7,711.14
7,711.14

77.7%
86.0%
94.7%
95.6%
83.1%
83.1%
84.4%
96.9%
91.6%
87.2%

100.0%
90.4%
94.3%
100.0%
100.0%
94.1%
82.1%
88.1%
91.2%
94.1%

67.5%
64.1%
64.6%
66.7%
65.4%
64.3%
62.2%
73.2%
76.2%
61.0%

99.2%
100.0%
99.2%
94.2%
93.2%
93.9%
86.1%
93.0%
98.1%
98.6%

93.8%
96.7%
87.4%
99.1%
98.7%
92.8%
96.6%
91.2%
86.2%
93.7%

93.3%
86.0%
79.3%
75.4%
80.6%
86.2%
94.4%
95.8%
95.4%
95.4%

92.8%
89.2%
84.4%
92.8%
96.4%
96.4%
96.4%
100.0%
88.1%
88.1%

100.0%
100.0%
100.0%
93.7%
90.3%
90.3%
72.3%
-

91.3%
95.6%
95.6%
91.0%
-

100.0%
100.0%
100.0%
100.0%
-

93.8%
92.8%
-

98.0%
92.7%
-

75.4%
75.4%
-

95.5%
95.5%
-

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

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

Operating periods

184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days184days①Rental and other operating revenues (\ Thousands)

50,84947,70651,445

216,965

85,366

151,664

74,366

192,295

187,155

98,944

313,888

197,353

52,120127,122

40,414

149,559

Rental revenues

38,84038,29944,774

185,372

73,437

131,776

58,466

169,586

168,936

84,181

270,488

174,22144,346

104,891

36,100132,064

Other operating revenues

12,009

9,407

6,671

31,592

11,92919,887

15,89922,70818,21914,762

43,39923,132

7,773

22,231

4,313

17,49521,097

19,68927,07566,54431,511

56,76929,59556,96990,09032,128140,111

86,69633,34025,35912,61440,474

6,684

5,303

10,912

21,105

11,72013,685

7,513

18,055

16,127

10,172

31,864

26,819

5,836

9,840

2,841

16,594

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

Lease Information

As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008

Income and Retained Earnings Information for the 15th Fiscal Period②Property-related expenses (\ Thousands)
Property management fees
Taxes

6,538

5,366

7,795

20,8506,435

10,060

4,634

20,912

11,728

8,521

34,153

26,784

6,722

4

2,989

9,950

Utilities

6,608

5,720

4,999

19,7397,373

20,201

9,249

16,998

14,972

10,38335,76322,9244,560

14,168

865

1,526
5,639

Repairs and maintenance costs

373

951

1,904

2,160

4,367

4,102

1,465

231

508

1,939

36,5307,729

15,483195

2,856

Insurance

116

101

175

316

153

325

126

272

287

161

409

404

110

216

70

303

Trust fees and other expenses

776

2,246

1,287

2,371

1,460

8,394

6,605

498

46,465

949

1,389

2,035

626

934

2,990

6,460
109,084③ＮＯＩ （＝①-②） (\ Thousands)

29,75228,017

24,370150,42053,85594,89544,771

135,325

97,064

66,816

173,776

110,657

18,779101,762

27,800④Depreciation (\ Thousands)

13,34012,95013,31429,957

19,417

34,835

14,58471,36353,267

16,401

17,457

11,4004,267

35,145

11,46645,906⑤Rental operating income （＝③-④） (\ Thousands)

16,411

15,067

11,056

120,463

34,43760,05930,186

63,961

43,79750,414

156,319

99,256

14,512

66,617

16,33363,178⑥Capital expenditures (\ Thousands)

8,539

6,672

19,131

9,750

6,492

32,036

9,162

420

7,627

8,385

29,431

23,76390,660

-

4,042

178

⑦ＮＣＦ （＝③-⑥） (\ Thousands)

21,212

21,345

5,238

140,670

47,36362,85835,608

134,905

89,43758,430144,345

86,893

ᇞ71,880

101,762

23,757

108,906

Expense ratio （＝②／①）

41.5%
13,078
1,644
3.23%

41.3%
10,734
1,545
3.24%

52.6%
15,239
1,547
3.01%

30.7%
41,628
7,497
3.46%

36.9%
13,547
2,841
3.33%

37.4%
20,121
5,031
3.32%

39.8%
9,268
2,431
3.27%

29.6%
41,827
6,686
3.48%

48.1%
23,460
5,800
3.10%

32.5%
17,042
3,382
3.42%

44.6%
68,308
9,952
3.17%

43.9%
53,567
6,285
3.19%

64.0%
14,007
1,446
2.78%

19.9%
23,241
4,671
3.67%

31.2%
5,979
1,392
3.44%

27.1%
19,897
4,564
3.05%

140,130
11,677

122,820
10,235219,160
18,263

262,560
21,880223,960
18,663

140,450
11,704

167,760
13,98094,2707,855

87,3407,278

202,790
16,899737,870
61,489413,140
34,428

181,590
15,132

107,610
8,967

74,6506,220

170,810
14,234

Property tax for the year 2012(\ Thousands)
Reference

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

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

A-58 KDX Nagoya Sakae Building: The land portion of KDX Nagoya Sakae Building was acquired on April 25, 2008.
A-69 KDX Kobayashi Doshomachi Building: The rent for land to the land owner (Kobayashi Pharmaceutical Co., Ltd.) is stipulated according to specific terms under the land lease agreement and the annual rent to be paid is \80.7 million until August-51-b0181
c0011
c0021
d0011
84
Earnings Performance for the Individual Properties for the 15th Fiscal Period (May 1, 2012 to October 31, 2012)：184days【Reference】

Residential
Properties
Other
Regional
Areas
B18

Type
Location
Property No.

Venus
Hibarigaoka

Property Name
Acquisition DateCentral Urban Retail Properties

Other

C01

C02

Other
Regional
Areas
D01

Frame Jinnanzaka

KDX Yoyogi
Building

Kanazawa Nikko
Building

Tokyo Metropolitan Area

Total of 84
Properties

December 8, 2005 August 1, 2005 September 30, 2005 December 26, 2011

Price Information

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

1,800
0.6%
1,788
1,540
0.6%
116
12,829.64
12,327.61

9,900
3.4%
9,759
9,230
3.5%
12
4,653.40
4,653.40

2,479
0.8%
2,537
1,920
0.7%
11
1,182.14
1,182.14

645
0.2%
679
1,090
0.4%
2
4,338.61
4,338.61

293,128100.0%
292,021266,562100.0%
1,014
351,153.72
335,357.59

96.1%
95.0%
99.5%
96.7%
92.4%
96.3%
96.5%
98.9%
88.7%
93.0%

100.0%
100.0%
89.5%
100.0%
100.0%
100.0%
93.6%
96.0%
97.9%
97.9%

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

100.0%
100.0%
-

95.5%
95.4%
94.7%
94.6%
93.6%
94.4%
94.7%
95.7%
95.6%
95.9%

Occupancy ratio
Lease Information

As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008

Income and Retained Earnings Information for the 15th Fiscal Period

Operating periods

184days184days184days184days①Rental and other operating revenues (\ Thousands)

91,321

265,460

68,54962,423

Rental revenues

80,942

241,881

60,231

54,9208,206,830

Other operating revenues

10,37823,579

8,317

7,502

1,393,019
3,187,714②Property-related expenses (\ Thousands)

179days *Total: Cost-weighted average management period (days)
9,599,850

36,07859,185

19,72918,297

Property management fees

8,169

18,132

4,381

5,549

936,062

Taxes

7,622

15,988

4,287

4,927

813,007

Utilities

2,049

21,912

4,634

5,375

789,254

Repairs and maintenance costs

9,982

847

2,370

718

400,507

323

161

38

211

14,648

7,930

2,142

4,018

1,514

234,233③ＮＯＩ （＝①-②） (\ Thousands)

55,242

206,275

48,81944,125

6,412,135④Depreciation (\ Thousands)

23,12458,598

9,419

7,210

1,613,530⑤Rental operating income （＝③-④） (\ Thousands)

32,117

147,676

39,39936,915

4,798,605⑥Capital expenditures (\ Thousands)

4,383

1,160

35,735

129904,880⑦ＮＣＦ （＝③-⑥） (\ Thousands)

50,859205,115

13,08343,996

5,507,255

Expense ratio （＝②／①）

39.5%
15,245
2,991
3.28%

22.3%
31,977
9,627
3.63%

28.8%
8,574
2,395
3.49%

29.3%
9,855
2,174
3.48%

33.2%
1,732,999
326,061
3.40%

339,440
28,28682,3306,860

39,1603,263

134,540
11,211

13,826,173
1,152,181

Insurance
Trust fees and other expenses

Property tax for the year 2012(\ Thousands)
Reference

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

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

※As of October 31, 2012-52-

a0181b0341
85
86
Earnings Performance for the Individual Properties for the 15th Fiscal Period (May 1, 2012 to October 31, 2012)：184days【Reference】

OfficeBuildings
Tokyo
Metropolitan
Area
A18

Type
Location
Property No.

Residential
Properties
Tokyo
Metropolitan
Area
B34
Total of 2sold
Properties

Property NameKDX Omori
Building

Graditokawaguchi

Acquisition Date

May 1, 2006 June 30, 2006

Total of 86
Properties

Price Information

3,500
77.1%
4,200
3,355
595
-

1,038
22.9%
860
992
ᇞ 151
-

4,538
100.0%
5,060
4,347
443
-

-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
94.5%
100.0%
100.0%

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

Operating periods

11days57days

22days①Rental and other operating revenues (\ Thousands)

7,742

9,761

17,504

7,515

9,713

17,2288,224,059

227

48

275

1,393,295

10,3972,904

13,3013,201,015

761

718

1,480

937,542

Taxes

8,779

1,436

10,215823,223

Utilities

724

114

839

790,093

Repairs and maintenance costs

84

367

452

400,959

Insurance

10

13

24

14,672Trust fees and other expenses

35

254

289

234,523

Acquisition price (\ Millions)
Percentage of total portfolio
Revenue from sale of in the investment property(\ Millions)
Costs of the investment property (\ Millions)
Gain / Loss on sale of real estate(\ Millions)
Number of tenants
Leasable floor area (㎡)Leased floor area（㎡)Occupancy ratio

Lease Information

As of October 31, 2012
As of April 30, 2012
As of October 31, 2011
As of April 30, 2011
As of October 31, 2010
As of April 30, 2010
As of October 31, 2009
As of April 30, 2009
As of October 31, 2008
As of April 30, 2008

Income and Retained Earnings Information for the 15th Fiscal Period

Rental revenues
Other operating revenues②Property-related expenses (\ Thousands)
Property management fees

176days *Total: Cost-weighted average management period (days)
9,617,354

ᇞ2,654

6,857

4,203

6,416,338

4,270

3,349

7,619

1,621,150

ᇞ6,9243,507

ᇞ3,416

4,795,188---904,880⑦ＮＣＦ （＝③-⑥） (\ Thousands)

ᇞ2,654

6,857

4,203

5,511,458

Expense ratio （＝②／①）

134.3%
154
2.00%

29.8%
339
3.47%

76.0%
494
2.82%

33.3%
326,555
3.40%

-

-

-

-

③ＮＯＩ （＝①-②） (\ Thousands)④Depreciation (\ Thousands)⑤Rental operating income （＝③-④） (\ Thousands)⑥Capital expenditures (\ Thousands)

Property tax for the year 2012(\ Thousands)
Reference

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

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

Note:The Investment Corporation has sold KDX Omori building(A18) on May 11, 2012 and Gradito Kawaguchi(B34) on June 26, 2012.

※As of October 31, 2012

-53-

(Reference) Borrowings
Borrowings on a financial institution basis as of October 31, 2012 are as follows.
Classification

Balance at the
Beginning of
Period(\Thousands)

Balance at theEnd of Period(\Thousands)

1,500,000
3,500,000
1,000,000
4,000,000
2,000,000
1,500,000
1,200,000
14,700,000

June 30, 2008

Development Bank of Japan Inc.

February 27, 2009

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

October 29, 2010

Resona Bank, Ltd.

December 8, 2009

LenderDrawndown Date

Mitsubishi UFJ Trust and Banking Corporation

July 29, 2011

Aozora Bank, Ltd.
Short-Term Payable

Mitsubishi UFJ Trust and Banking Corporation

October 31, 2011

Aozora Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation

December 26, 2011

Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation

January 31, 2012

Mitsubishi UFJ Trust and Banking Corporation

July 31, 2012

Mitsubishi UFJ Trust and Banking Corporation

October 31, 2012

Sub Total
Resona Bank, Ltd.

Current Potion of Long-Term Payable

Average
Interest
Rate(Note 1)

Last Repayment
Date

1,200,000
1,500,000
3,000,000
5,700,000

1.036

July 31, 2012

1,500,000

-

2.150

500,000
3,000,000
1,000,000
1,500,000
1,000,000
500,000
3,000,000
2,000,000
1,000,000-

Full on
Unsecured/(Note 2)maturity
Unguaranteed

0.832 January 31, 2013
July 31, 2013
0.828
0.778 October 31, 2013
June 30, 2012

October 29, 2009

Sumitomo Mitsui Banking Corporation (Note 4)

October 29, 2009

Resona Bank, Ltd. (Note 4)

October 29, 2010

500,000

500,000

21,580,000

14,000,000

May 1, 2006

5,000,000

5,000,000

2.731

January 29, 2010

1,080,000
2,012,500
1,487,500
875,000
437,500
1,800,000
3,700,000
3,700,000
1,500,000
800,000
400,000
1,200,000
800,000
2,300,000
500,000
200,000
100,000
800,000
200,000
700,000
1,300,000
800,000
3,000,000
500,000-54-

1,056,000
1,955,000
1,445,000
850,000
425,000
1,750,000
3,700,000
3,700,000
1,500,000
800,000
400,000
1,200,000
800,000
2,300,000
500,000
200,000
100,000
800,000
200,000
700,000
1,300,000
800,000
3,000,000
500,000

2.173 January 30, 2015

January 13, 2010

Aozora Bank, Ltd.

February 18, 2010

Mitsubishi UFJ Trust and Banking Corporation

April 28, 2011

Resona Bank, Ltd. (Note 4)

July 30, 2010

Development Bank of Japan Inc. (Note 4)

September 1, 2006

Aozora Bank, Ltd. (Note 4)

March 31, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Note 4) September 30, 2011

Sub Total
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited

February 18, 2010

Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation

April 2, 2010
July 30, 2010

Long-Term Payable

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation

November 12, 2010

Resona Bank, Ltd.
Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation

December 1, 2010

Resona Bank, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

January 31, 2011
February 28, 2011

Remarks

October 31, 2012

0.859

Sumitomo Mitsui Banking Corporation (Note 4)

June 30, 2008

Sumitomo Mitsui Trust Bank, Limited

Usage

0.982

880,000
2,500,000
500,000
3,000,000
1,000,000
1,500,000
1,000,000
500,000
3,000,000
2,000,000
1,000,000
900,000
1,800,000

Development Bank of Japan Inc.

Payment
MethodFull onmaturity(Note 3)2.040 August 31, 2012
1.450 October 31, 2012
1.671 December 8, 2012
2.263 December 28, 2012
1.901 January 15, 2013
1.899 February 18, 2013 Full on
maturity (Note 2) Unsecured/
1.496 April 30, 2013
Unguaranteed
July 31, 2013
1.488
2.124 August 31, 2013
1.525
September 30, 2013
1.151
2.424 October 26, 2013 (Note 5)2.445 October 30, 2013 (Note 6)
1.463 October 31, 2013

April 30, 2016

Full onmaturity
Full onmaturity(Note 7)2.190 February 18, 2015 (Note 8)

April 2, 2015
2.220
1.660 January 31, 2014
July 31, 2014
1.731

(Note 9)1.584 November 12, 2013
(Note 2)

1.789 November 12, 2015
2.023 November 12, 2017
Full on1.435 November 12, 2013 maturity

1.535 November 12, 2015
2.206 November 12, 2017
1.570 January 31, 2014
1.939 January 29, 2016
1.912 August 31, 2015
1.952 January 29, 2016

Unsecured/
UnguaranteedClassification

LenderSumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
The Mizuho Trust and Banking Co., Limited
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Long-Term Payable

Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
Aozora Bank, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
The Bank of Fukuoka, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
Resona Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
Sub Total
Total

Drawndown Date

Balance at the
Beginning of
Period(\Thousands)

Balance at theEnd of Period(\Thousands)

2,700,000
2,700,000
2,000,000
2,000,000
March 31, 2011
1,000,000
1,000,000
1,500,000
1,500,000
April 28, 2011
1,000,000
1,000,000
July 13, 2011
1,000,000
1,000,000
2,200,000
2,200,000
July 29, 2011
1,000,000
1,000,000
300,000
300,000
August 31, 2011
1,500,000
1,500,000
September 1, 2011
1,000,000
1,000,000
2,500,000
2,500,000
September 30, 2011
1,000,000
1,000,000
2,500,000
2,500,000
2,500,000
2,500,000
2,000,000
2,000,000
2,000,000
2,000,000
1,000,000
1,000,000
2,500,000
2,500,000
December 26, 2011
2,000,000
2,000,000
2,500,000
2,500,000
2,500,000
2,500,000
2,000,000
2,000,000
2,500,000
2,500,000
January 10, 2012
2,500,000
2,500,000
January 31, 2012
1,500,000
1,500,000
2,250,000
2,250,000
1,800,000
1,800,000
March 12, 2012
1,800,000
1,800,000
450,000
450,000
1,000,000
1,000,000
500,000
500,000
March 28, 2012
1,400,000
1,400,000
1,000,000
1,000,000
March 30, 2012
2,000,000
2,000,000
April 27, 2012
1,000,000
1,000,000
June 29, 2012
1,500,000
5,000,000
September 21, 2012
1,000,000
1,000,000
2,500,000
2,500,000
October 31, 2012
1,500,000
2,500,000
2,500,000
95,092,500 114,881,000
131,372,500 134,581,000
March 22, 2011

Average
Interest
Rate(Note 1)

Last Repayment
Date

Payment
MethodUsage

Remarks

1.630 September 22, 2014
1.905 January 29, 2016
1.385 March 31, 2016
1.859 October 31, 2015
1.886 January 29, 2016
July 14, 2014
1.535
1.132

July 31, 2014

1.398
1.084 February 27, 2015
1.149 August 29, 20141.161 March 31, 2014
1.270 September 30, 2014
1.289 March 31, 2015
1.239
1.261

1.338

October 31, 2014

October 31, 2015

1.315
1.439

October 31, 2016

Full on
Unsecured/(Note 2)maturity
Unguaranteed

1.415
1.269 January 29, 2016
1.190 January 30, 2015

1.035

March 12, 2014

1.075
1.364

March 12, 2015

1.770

March 28, 2019

March 28, 2017

1.211 September 30, 2015
1.271 October 30, 2015
June 30, 2017
1.286
1.158 September 21, 2017
1.008 April 30, 2015
1.061
October 31, 2016
1.045
1.096 October 31, 20171.253 October 31, 2018

Notes:
1. The average interest rate is the weighted-average interest rate for the fiscal period. The Investment Corporation entered into interest-rate swap transactions with the aim ofminimizing the risk of future increase in interest rates. The effect of interest-rate swap transactions has been incorporated into calculations for the weighted-average interest rate.
2. Funds procured through borrowings were used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings.
3. Repayment Method: August 31, 2009 to February 29, 2012: repayment of 20,000 thousand yen every 6 months, and August 31, 2012: repayment of 880,000 thousand yen
4. Borrowings listed in the current potion of long-term payable were listed in long-term payable in the previous fiscal period.
5. Repayment Method: February 26, 2010 to August 31, 2013: repayment of 20,000 thousand yen every 6 months, and October 31, 2012: prepayment of 880,000 thousand yen
6. Repayment Method: January 29, 2010 to July 31, 2013: repayment of 40,000 thousand yen every 6 months, and October 31, 2012: prepayment of 1,760,000 thousand yen
7. Repayment Method: April 30, 2010 to October 31, 2014: repayment of 24,000 thousand yen every 6 months, and January 30, 2015: repayment of 960,000 thousand yen
8. Repayment Method: February 26, 2010 to August 31, 2014: repayment of 137,500 thousand yen every 6 months, and February 18, 2015: repayment of 4,125,000 thousand yen
9. Repayment Method: August 31, 2010 to February 28, 2015: repayment of 50,000 thousand yen every 6 months, and April 2, 2015: repayment of 1,500,000 thousand yen-55-