Office Investment Corporation November 1, 2016-April 30, 2017 TSE 8972
3  About KDO 4  At a Glance 6  Message from Management 10  External Growth 14  Internal Growth 18  Financial Strategy 20 Portfolio 22  Management Team 24  Financial Section 44  Unitholders' Information 2
Kenedix Office Investment Corporation (KDO) is a dynamic and proven J-REIT focusing on investments in mid-sized office buildings in the Tokyo Metropolitan Area. Since listing on the Tokyo Stock Exchange (8972), KDO has deployed tactful property acquisition strategies in accordance with the real estate market environment. Through steady expansion, KDO's portfolio has grown from 31 properties with a total acquisition price of 69.1 billion yen to 97 properties with a total acquisition price of 393.4 billion yen in April 2017. As the No.1 J-REIT focusing on mid-sized office buildings, we will continue raising portfolio quality through asset reshuffle and other initiatives, while advancing performance with internal growth, backed by sound financial management.
Characteristics of mid-sized office building market
Office market by GFA (proportion of number of buildings) (Note 1) # of office building transactions by transaction price Business office by the number of employees (Tokyo) on "the number of office building transactions by transaction size (FY2006-FY2015)" from "Real Estate Transactions Study" by Urban Research Institute Corporation, a think tank of Mizuho Trust & Banking Co., Ltd. Source: Compiled by the Asset Management Company based on "2014 Economic Census for Business Frame Tokyo (revised results) (as of March 27, 2017)". Note 1:  The above data is the proportion of number of buildings based on the size. It covers rental office buildings located in Tokyo Central 5 wards that were surveyed by the end of Sep. 2016). Note 2: The transaction prices of mid-sized office buildings are generally around 1.0 bn yen to 10.0 bn yen. At a Glance *Percent figures in brackets indicate period over period rate.
External growth
Portfolio NOI yield End of 24th fiscal period 4.6% (+0.1%) Internal growth Increase in actual occupancy rate End of 24th fiscal period (office building) Portfolio appraisal profit/loss End of 24th fiscal period 33.1bn yen (+7.7bn yen) Rent increment upon rent revisions Total monthly amount for 24th fiscal period (all properties) Rent gap against the market End of End of 24th fiscal period 23rd fiscal period * Occupancy rate (contracted area based): 97.8% Financial strategy Credit rating (JCR) LTV End of 24th fiscal period Average interest rate on interest-bearing debt End of 24th fiscal period 0% (-0.03%) Future initiatives Aim for further enhancement of our unitholder value
Portfolio
Portfolio diversification
Portfolio mainly consisted of mid-sized office buildings with advanced tenant diversification Plan to maintain approx. 80% investment ratio in Tokyo metropolitan area
Making steady progress on agendas to be addressed, we achieved solid results in the 24th fiscal period ended April 2017 We made steady progress on agendas to be addressed and achieved solid results in the current 24th fiscal period ended April 2017. We are also seeing definite signs of further growth. Regarding external growth, Kenedix Office Investment Corporation (KDO) took advantage of the need for real estate companies to acquire property for redevelopment projects they are engaged in and effected two mutual transactions for properties owned by KDO and prime properties owned by the real estate companies. We sold three office buildings that were not profitable and had high appraisal losses in February 2017. Although this transaction generated a loss on the sale, we avoided an adverse impact on distributions by using the gain on the sale from the mutual transactions with the aforementioned real estate companies. This improved both portfolio profitability and appraisal profit. We also used part of the cash secured from the sale to acquire a competitive mid-sized office building in the Gotanda district of the Tokyo Metropolitan Area that matched our acquisition criteria. We were able to acquire this at a relatively reasonable price, despite this stiff competition for acquisition. Accordingly, KDO's portfolio included 97 properties with a total asset size of 393.4 billion yen as of April 30, 2017, the end of the fiscal period under review. Looking at internal growth, revenue growth on existing properties is continuing as expected. Income from rent revisions with existing tenants is increasing in addition to an increase in the actual occupancy rate as free rent periods gradually expire. There is still room for improvement in rent even when judged by comparing contracted rent for owned properties to market rent. We can therefore anticipate raising rents due to upward rent revisions in the near term, and consequently believe that revenue growth will continue. In terms of financial management, we again reduced the financial cost on interest-bearing debt as we did in the 23rd fiscal period ended October 2016 in addition to achieving a credit rating increase from A+ to AA- (JCR) in January 2017. We used cash on hand to reduce interest-bearing debt, thereby reducing the interest-bearing debt ratio by 0.5 percentage point from the previous fiscal period to 42.6%. Distributions per unit for the 24th fiscal period were 11,733 yen, 2% higher than the 11,500 yen initially forecasted. The distribution growth rate for the past year was 9.6%, demonstrating solid growth in distributions. Director & COO, Head of Office REIT Department Kenedix Real Estate Fund Management, Inc. 7 We will continue to use a variety of acquisition methods and be selective in investments, with the aim of achieving greater growth in revenue from existing properties To achieve external growth, we will continue to engage in selective investment and asset reshuffle. The view on acquisition and disposition of office buildings has not changed substantially from six months ago in terms of our understanding of the environment. We recognize that prices are trending at high levels and there are few opportunities to acquire properties at a reasonable price. While there is certainly not a wealth of acquisition opportunities, we intend to continue to engage in selective investment by employing the proprietary network of the Asset Management Company and a variety of other acquisition methods, in addition to the support line from our sponsor. Besides, we intend to continue acquiring properties and reshuffling assets, while strictly observing our acquisition criteria. In terms of internal growth, we will strive to achieve growth in revenue from existing properties. In specific terms, that means continued increases in the actual occupancy rate and unit rent. We will also engage in effective, strategic capital expenditures on renovation works, air conditioning system upgrades, and other such expenditures to draw out the potential earning power of owned properties for further expanding internal growth. In terms of financial strategy, we will continue to engage in conservative financial management and strive to reduce financial costs. We also intend to be agile in responding to opportunities to acquire properties, while maintaining the interest-bearing debt ratio at a conservative level. We will engage in selective investment in new acquisition of properties and asset reshuffle, work to achieve greater growth in revenue from existing properties, and will also continue to reduce financial cost, as the trend in interest rates permits this. Through these efforts, we intend to increase unitholder profit, and target greater growth in DPU and net asset value (NAV) per unit, in particular. 8 Using our wealth of accumulated insight and management expertise to maximize unitholder profit as the No. 1 J-REIT in mid-sized office buildings A large supply of office buildings is anticipated in 2018 and beyond. Some are concerned about the impact this will have, however, we do not see an impact from a large supply, signs of deterioration in the operating environment or other factors for the mid-sized office buildings we own at present. Rather, we feel that there is still ample room for internal growth in competitive mid-sized office buildings in good locations, particularly for buildings in the Tokyo Metropolitan Area with a monthly rent of around 10,000 yen per tsubo (approx. 3.3 m²). The market for mid-sized office buildings is broad, with considerable variation in management conditions, location and building quality. The tenant base occupying the buildings is rich in small- to mid-sized companies and sole proprietors offices. We believe that detailed attention to building operation and effective capital expenditures in addition to location and quality make it easy to differentiate our properties from other small- to mid-sized buildings and achieve competitive superiority. We will continue to utilize our management expertise to pursue growth as the No. 1 J-REIT in mid-sized office buildings. We will also strive to achieve results and a relatively high rate of growth in distributions that exceeds the expectations of unitholders, while enjoying the stability that comes from a diversified portfolio. External Growth : 10

Mutual transactions
KDO capitalized on the property acquisition needs of real estate companies engaged in redevelopment projects and executed two mutual transactions involving properties owned by KDO and prime properties owned by the real estate companies. Transaction with Mori Building Co., Ltd. (December 1, 2016) ARK Mori Bldq. (Compartmentalized Ownership) (Now) Location Minato-ku, Tokyo Acquisition price 4,169 mn yen Appraisal value at time of acquisition 4,310 mn yen BUREX Toranomon Location Disposition price
Appraisal value upon disposition 2,440 mn yen quasi co-ownership interest of the trust beneficiary interest in a trust with compartmentalized ownership of the 34th and 35th floors of ARK Mori Bldg. Transaction with Heiwa Real Estate Co., Ltd. (February 1, 2017) Nishi-Shinbashi TS Bldg. Location Minato-ku, Tokyo Acquisition price 8,400 mn yen Appraisal value at time of acquisition 8,480 mn yen KDX Nihonbashi Kabutocho Bldg. Location Disposition price
12,400 mn yen Appraisal value upon disposition Effect of mutual transaction Gain on sale of real estate Net cash gain on mutual transaction Improvement in NOI vield
Disposition of properties
By disposing of 3 unprofitable properties with high appraisal losses together for a price that exceeded their appraised values by approximately 570 million yen, KDO improved portfolio profitability and appraisal profit/loss and effectively utilized a net cash gain of around 5 billion yen. Disposition of 3 properties (February 1, 2017) Location Minato-ku, Tokyo Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo Disposition price of 3 properties Appraisal value upon disposition 2,120 mn yen 5,070 mn yen 961 mn yen 1,420 mn yen Effect of disposition of 3 properties Improvement in portfolio profitability Elimination of appraisal loss Effective use of acquired funds •To reduce interest-bearing debt •To cover property acquisition Minato-ku, Tokyo
3 Acquisition of properties
Faced with a tough acquisition environment, we acquired a competitive mid-sized office building that matched our acquisition criteria in the Gotanda area where we have management track record of over 10 years. Acquired BR Gotanda (compartmentalized ownership) (April 5, 2017)

Transaction highlights
•We acquired this property despite the tough acquisition environment by continuing to follow it as a potential sale. •This was the third mid-sized office building that we have acquired in the Gotanda area, which is seeing a steadly increasing need for office space. Note 3: Yields are calculated using the following formulas (rounded to the first decimal place): Estimated NOI yeld: Calculated by dividing "NOI after excluding extraordinary factors for the year of the acquisition estimated by the Asset Management Company" by the acqui Estimated NOI yield after depreciation: Calculated by dividing estimated NOI after depreciation (estimated NOI − estimated depreciation expenses) by the acquisition price. Appraisal NOI yield: Calculated by dividing "NOI calculated based on the direct capitalization method described in the relevant appraisal report (with the base date for appr 1, 2017)" by the acquisition price.
Other Tokyo area
Central 5 wards Note: Yields are calculated using the following formulas by fiscal period and region of the acquisition/disposition (rounded to the first decimal place). Estimated NOI yield on the acquisition: Calculated by dividing the sum of NOI after excuding extraordinary factors for the year of acquisition estimated by the Asset Managem by the total acquisition price. Calculated by dividing the sum of the actual NOI for the 2 fiscal period prior to the period in which the property was sold, by the total acquisition price. Actual NOI yields on the disposition: Results and effects of property acquisition and disposition from the 22nd fiscal period (Apr. 2016) onward KDO improved profitability, strengthened its financial base, and increased distributions. This was accomplished through ongoing selective investment and asset reshuffle with a focus on location and yield, amid the tough acquisition environment and the high price range for real estate transactions. 22nd Fiscal Period (Apr. 2016) 24th Fiscal Period (Apr. 2017) Portfolio NOI yield (Nets) Improved profitability Appraisal profit/loss Stronger financial base Distribution per unit Growth in distributions Note: Calculated as if property and urban planning taxes were assessed for the properties acquired during each fiscal period that fell under the year of acquisition without by multiplying the ratio of actual operating days corresponding to each fiscal period's operating days against NOI and the acquisition price for the properties acquired/sold fiscal period. Figures are rounded to the first decimal place. Acquisition Internal Growth 2/14
The period-end occupancy rate has improved by 1.0% from the previous fiscal period backed by steady progress in filling vacancies. The actual occupancy rate is expected to improve further with the expiration of free rent periods and a decrease in the turnover ratio. Office building turnover ratio (annualized) (Note 2) (Note 3) Note 1: The occupancy rate (based on contracted area) is calculated by dividing leased area under contract by the leasable area. The actual occupancy rate (excl. free rent a subtracting the free rent area from the leased area and then dividing the result by the leasable area. These figures are rounded to the first decimal place. The average occu buildings during each fiscal period is a simple average of month-end occupancy rates of owned buildings during each period. Note 2:  The annualized turnover ratio is calculated and annualized as follows: (Tobal leasable area of the end-tenants who cancelled the lease agreements during the six-mon beginning to the end of each period) / (Average leasable area of all office buildings owned by KDO as of each month-end during the relevant period) x 2. Figures are rounded decimal place. Note 3:  The estimate for the 25th fiscal period (Oct. 2017) is based on cancellation notices, etc. received by May 31, 2017.
Progress on properties focused on attracting new tenants
KDX Shin-Nihonbashi Ekimae Bldg. Changing the name of the building, holding private viewings, and other efforts resulted in 100% occupancy faster than initially planned.
40.9% KDX Nihonbashi Edo-dori Bldg. KDO raised the occupancy rate to more than 90% after a temporary decline to 60% after acquisition. Occupancy rate at time of acquisition (Aug. 2, 2016) Occupancy rate
74.0% We achieved steady improvement in the occupancy rate through attracting activities that targeted tenants accurately based on property features.
New tenant rent upon tenant turnover was contracted at a higher rate than the prior tenant in the majority of cases for the fourth period in a row. Increase/decrease in monthly rent upon tenant turnover (Note) ■ Total amount of increase in rent (mn yen) ■■ Total amount of decrease in rent (mn yen) • ■■• Percentage of the number of new contracts with rent increases (%) 20th fiscal period 21st fiscal period (Apr. 2015) (Oct. 2015) 22nd fiscal period (Apr. 2016) 23rd fiscal period 24th fiscal period (Oct. 2016) (Apr. 2017) Note: The total amounts of increase and decrease in monthly rent before and after rent revision for each fiscal period are each aggregated for the spaces where the rents pai previous tenants can be compared. The percentage of move-ins for floor expansion purposes has hovered around 80%; the percentage of move-outs for floor expansion purposes has been on the rise. Demonstrating that well-performing mid/small-sized companies have a strong need to relocate their offices for floor expansion. Change in reasons for moving in/out (Note) Reasons for moving into our properties
Reasons for moving out of our properties
Note: The above data is based on the hearing survey, etc. complied by the Asset Managament Company with regard to reasons for office relocation of relevant tenants. We class into 3 categories: "Floor expansion", "Floor reduction" and "Other/unknown", and calculate the proportion of each category. For move-ins, the figures are based on the number office floors on the second floor or above. For move-outs, the figures are based on the number of tenants on all floors except for residential floors.

Historical number of rent increase Note 1)
The number of rent increases with existing tenants exceeded 40 for the third consecutive period, and the amount of rent increases also increased steadily. A steady trend of rent increases is also seen in areas other than Tokyo central 5 wards.
Change in rent upon rent revision (based on monthly rent) (Note 2)
Rent decreases remained at a low level and upward rent revisions were entrenched. Rent revisions with existing tenants continue to increase rental revenues. ■■ Decrease in rent ■ Increase in rent (Thousand yen) 21st fiscal period 22nd fiscal period 23rd fiscal period 24th fiscal period 20th fiscal period (Apr. 2015) (Oct. 2015) (Apr. 2016) (Oct. 2016) (Apr. 2017) Note 1: Calculated by aggregating the actual rent increase of the office buildings and central urban retall properties in our portfolio. Rent increase rate is calculated by monthly rent by the sum of monthly rent before revision. Figures are rounded to the first decimal place. Note 2: Calculated by aggregating the actual rent increases/decreases for the office buildings and central urban retail properties in our portfolio. The increases and decrea aggregating the change in monthly rent before and after contract renewal for increases in rent and decreases in rent, respectively. Figures are rounded to the nearest thousa
Status of debt financing
Reduced financial cost and will continue to target conservative financial management and reduction in financial cost. Refinancing (totaling 8.2 bn yen) during the 24th fiscal period (Apr. 2017) (Note 1) Conditions Conditions before refinancing after refinancing Average interest rate Average borrowing period Note 1: The average interest rate and borrowing period are the weighted averages of the interest rate (inct. up-front fees) and borrowing period based on the balance of borr the average interest rate rounded to the second decimal place and the average borrowing period rounded to the first decimal place). The conditions before refinancing include redemption and repayment of debt during the 24th fiscal period (Apr. 2017) in the calculation. Note 2: The average remaining period to maturity and interest rate are the weighted averages based on the balance of borrowings, respectively (with the average remaining per to the first decimal place and the average interest rate rounded to the second decimal place).
Major indices of financial stability as of the end of 24th fiscal period (Apr. 2017)
The credit rating improved from A+ to AA- in January 2017. A reduction in debt lowered the LTV (interest-bearing debt ratio) by 0.5 point, maintaining financial stability. Credit rating status Japan Credit Rating Agency, Ltd. (JCR) (stable) LTV (Interest-bearing debt ratio) (Note 1) Conservative financial management with a target LTV of 45% Ratio of fixed interest rate debt (Note 2) Continue to hedge against a potential rise in interest rates Note 1: LTV is calculated by dividing the balance of interest-bearing debt by the amount of total assets as of total assets as of the end of the fiscal period, rounded to th Note 2: Includes borrowings with floating interest rates fixed by interest rate swaps but excludes those hedged by interest rate caps, rounded to the first decimal place. Diversification of debt maturities Reduced refinancing risk through extension of remaining period to maturity and diversification of debt maturities. Balance of interest-bearing debt by maturity
Historical change in DPU
Raised dividend by 9.6% year over year in the 24th fiscal period (Apr. 2017) Estimate DPU for the 25th fiscal period (Oct. 2017) to be 12,200 yen, and aim for an early achievement of DPU target of 12,500 yen Expect a 4.0% period over period DPU growth in 25th fiscal period (Oct. 2017) Note: The balance of reserve for reduction entry is calculated by either adding provision of reserve for reduction entry or subtracting reversal of reserve for reduction ent reserve for reduction entry on the balance sheet as of the end of relevant fiscal period. NAV per unit: Historical performance (Note 1) Achieved 7.0% increase year over year Note 1: NAV per unit is truncated to the nearest thousand yen after subtracting the amount of DPU. Note 2: Appraisal profit/loss is calculated by subtracting book values from appraisal values for all properties owned as of the end of relevant fiscal period. Portfolio   (As of April 30, 2017) The properties acquired during the 24th fiscal period are marked with a red box.
Note 1: Acquisition price is only the acquisition (investment) price of the trust beneficiary interests, etc. (excl. any experses, taxes, etc.) acquired by KDO. Figures are Note 2: Year built shows the completion date recorded in the land register. The average value shown in the subtotal or total section is a weighted average number calculated a base date of April 30, 2017. Figures are truncated to the first decimal place. Note 3: Occupancy rate is calculated by dividing leased area as of April 30, 2017 by leasable area and is rounded to the first decimal place. The subtotal and total lines sh the subtotal (otal) of the leased area for the property associated with each subtotal and total by the subtotal (total) of the leasable area. For the Pentel Building, this i with the land (land interes) specified in the lease agreement. For the Shinjuku 6chome building (Land), the calculation is based on the leasable area of the land specified i Note 4: The KDX Shin-Yokohama 381 Building includes both the existing and the arnex towers. The completion date listed for the KDX Shin-Yokohama 381 Building is the completi tower. The average age was calculated without taking the completion date of the annex tower (April 2009) into consideration.
Naokatsu Uchida
Director & COO, Head of Office REIT Department
• Worked for Mitsubishi UFJ Trust and Banking Corporation for approx. 17 years (Real Estate Division, Real Estate Project Origination Division) ● After working as CEO for Joint Asset Management Co., Ltd., joined Kenedix Office Partners, Inc. and was a member of the Financial Planning Department for approx. 2 years • Appointed Executive Officer of Kenedix Office Investment Corp. (to the present) after serving as President & CEO of Kenedix Office Partners, Inc. • Appointed Director & COO, Head of Office REIT Department on October 1, 2013
Akimitsu Uezu
Head of Asset Investment Division,
Office REIT Department • Joined Investment Management Department, Kenedix REIT Management, Inc. in July 2006 and worked for 2 years after having engaged in real estate transactions at judicial scrivener's office and real estate company • Appointed Head of Asset Investment Division, Office REIT Department on March 1, 2016 after having worked as Head of Asset Investment Department, Kenedix Residential Partners, Inc. and Director of Space Design, Inc.
Chisei Kaji
Head of Asset Management Division, Office REIT Department • Worked for Mitsui Fudosan Building Management for approx. 9 years (Sales Division and others) • Joined Kenedix Real Estate Fund Management, Inc. after having engaged in asset management for approx. 10 years at Tokyo Realty Investment Management Inc. • Appointed Head of Asset Management Division, Office REIT Department on March 1, 2016 after having worked in Investment Management Division, Office REIT Department for approx. 1 year
Jiro Takeda
Head of Planning Division, Office REIT Department
• Worked for Sumitomo Mitsui Trust Bank, Limited for approx. 7 years • After working for Sanko Estate Co., Ltd., GMAC Commercial Mortgage Japan K.K., and Hudson Japan KK., joined Kenedix. and having served as Head of Fund Management Division I for approx. 3 years • Appointed Head of Planning Division, Office REIT Department on March 29, 2017
Tetsushi Ichikawa
Head of Finance & Accounting Department, Business Administration Department • Worked for Sumitomo Mitsui Trust Bank, Limited for approx. 15 years (engaged in real estate finance, etc.) • Joined Kenedix after having engaged in real estate investment banking and having served as director responsible for asset management business at Touchstone Capital Securities Co., Ltd. • Appointed Head of Finance & Accounting Department, on October 1, 2013. after serving as Head of Finance Group for Kenedix Residential Partners, Inc. • Appointed Head of Business Administration Department on April 1, 2015 (concurrent)
Investment and management decision-making system
As the asset management company, Kenedix Real Estate Fund Management, Inc. (KFM) creates guidelines governing our asset management. These asset management guidelines define our investment policy, related-party transaction rules, distribution policy and disclosure policy. The structure of the decision-making process is outlined below. 1: Related-party transaction (acquisition and sale)    2: Establishing and revising asset management plans 3: Establishing and revising management guidelines    4: Transaction the Compliance Officer judges as the need and one outside management guidelines 5: Acquisition and sale Note 1: In case that the said transaction falls under the prescribed minor transaction, the said transaction is implemented with the resolution of approval of KDO Asset Mana without requirement of the resolution for approval of the Investment Corporation's Board of Directors and the consent of the Executive Director of the Investment Corporation resolution. Note 2: The above 3 and 4 are also reported to the Investment Corporation's Board of Directors.
Environmental Initiatives
KFM undertakes investment management operations in accordance with the following environmental policies.
Environmental Policies
1. Compliance with Environmental Laws and Regulations KFM will promote environment-friendly investment management operations by adhering to environmental laws and regulations. 2. Promotion of Energy Conservation Measures KFM will systematically advance energy conservation measures at its managed properties, maintaining a strong awareness of the importance of natural and energy resources. 3. Reduction of Environmental Burden KFM will undertake initiatives to reduce CO 2 and waste emissions as well as promote recycling at its managed properties, underscoring its commitment to alleviating its environmental burden. In addition, KFM will take sufficient care when handling harmful substances and environmental pollutants. 4. Disclosure of Environmental Information KFM will work to disclose necessary information to a variety of concerned parties including investors, tenants and business partners, in such areas as its environmental policies and measures. 5. Environmental Education KFM will take steps to improve the environmental consciousness of its officers and employees through internal education. Thanks to continuous efforts, we have won a range of certifications, including the highest ranked Green Star rating from the Global Real Estate Sustainability Benchmark (GRESB) Real Estate Assessment for the fifth consecutive years. The full renovation of KDX lidabashi Square was chosen as a subject of innovation case study for its innovative approach towards improved sustainability.
Financial Section

Financial Summary (Unaudited)
Historical Operating Trends
days for the 23rd Fiscal Period, 181 days for the 24th Fiscal Period. 3. Return on net assets = Net income/((Total net assets at beginning of period + Total net assets at end of period)/2} × 100 4. Payout ratio is rounded down to the first decimal place. 5. Leasing NOI = Rental revenues – Property-related expenses + Depreciation expenses for the period 6. FFO = Net income + Depreciation expenses for the period – Gain on sale of real estate property + Loss on sale of real estate property 7. FFO per unit = FFO/Number of investment units issued and outstanding (figures below ¥1 rounded down) rnst & Young ShinNihon LLC tibiva Kokusai Bldg. 2-3 Uchisaiwai cho, Chivoda-ku Tokyo 100-0011, Japan www.shinnihon.or.in
The Board of Directors Kenedix Office Investment Corporation We have audited the accompanying financial statements of Kenedix Office Investment Corporation, which comprise the balance sheet as at April 30, 2017, and the statements of income and retained earnings, changes in net assets, and cash flows for the six-month period then ended and a summary of significant accounting policies and other explanatory information, all expressed in Japanese yen. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in Japan, and for designing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. The purpose of an audit of the financial statements is not to express an opinion on the effectiveness of the entity's internal control, but in making these risk assessments the auditor considers internal controls relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kenedix Office Investment Corporation as at April 30, 2017, and its financial performance and cash flows for the six-month period then ended in conformity with accounting principles generally accepted in Japan. July 28, 2017 Tokyo, Japan
Balance Sheets

Kenedix Office Investment Corporation

Statements of Changes in Net Assets
Kenedix Office Investment Corporation For the period from November 1, 2016 to April 30, 2017 and the period from May 1, 2016 to October 31, 2016.

Notes to Financial Statements
Kenedix Office Investment Corporation For the period from November 1, 2016 to April 30, 2017 and the period from May 1, 2016 to October 31, 2016
。 ORGANIZATION AND BASIS OF PRESENTATION
Organization
Kenedix Office Investment Corporation ("the Investment Corporation") is a real estate investment corporation whose units are listed on the Tokyo Stock Exchange. The Investment Corporation is engaged in ownership and operation of selected office buildings, residential and retail properties in Japan, with a focus on mid-sized office buildings in the Tokyo Metropolitan Area. The Investment Corporation was incorporated on May 6, 2005 as an investment corporation under the Law Concerning Investment Trusts and Investment Corporations of Japan, or the Investment Trust Law. On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo Stock Exchange with a total of 75,400 investment units issued and outstanding (Securities Code: 8972). Subsequently, the Investment Corporation raised funds through seven public offerings and other means including global offerings. Pursuant to the Investment Trust Law, the Investment Corporation is externally managed by a registered asset management company, Kenedix Real Estate Fund Management, Inc. ("the Asset Management Company"), a subsidiary of Kenedix, Inc. ("Kenedix"). In concert with the Asset Management Company, the Investment Corporation strives to maximize cash distribution to investors by securing stable earnings and sustainable investment growth. To this end, the Investment Corporation adopts a dynamic and flexible investment stance that accurately reflects its environment and market trends, and endeavors to ensure a timely response to each and every opportunity. During the period ended October 31, 2016, the Investment Corporation acquired two office buildings (KDX Shin-Nhonbashi Ekimae Building: acquisition price of ¥3,829 million, KDX Edo-dori Building: acquisition price of ¥1,350 million) located in the Tokyo Metropolitan Area. During the period ended April 30, 2017, the Investment Corporation acquired three office buildings (ARK Mori Building: acquisition price of ¥4,169 million, Nishi-Shinbashi TS Building: acquisition price of ¥8,400 million, BR Gotanda: acquisition price of ¥2,200 million) and sold five office buildings (BUREX Toranomon: initial acquisition price of ¥1,750 million, KDX Nihonbashi Kabutocho Building: initial acquisition price of ¥11,270 million, KDX Roppongi 228 Building: initial acquisition price of ¥3,300 million, KDX Kanda Misaki-cho Building: initial acquisition price of ¥1,380 million, and KDX Gobancho Building: initial acquisition price of ¥1,951 million (with a total disposition price of ¥19,910 million)). At the end of the twenty-third and twenty-fourth fiscal periods, the Investment Corporation had total unitholders' capital of ¥206,200 million with 404,885 investment units outstanding, respectively. The Investment Corporation owned a portfolio of 99 properties (consisting of 94 office buildings, one residential property, three central urban retail properties and one other property), 97 properties (consisting of 92 office buildings, one residential property, three central urban retail properties and one other property) with total acquisition prices of ¥398,350 million and ¥393,468 million at the end of the twenty-third and twenty-fourth fiscal periods, respectively. The occupancy ratios were approximately 96.9% and 97.9% at the end of the twenty-third and twenty-fourth fiscal periods, respectively.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trust Act of Japan, the Financial Instruments and Exchange Law of Japan and related regulations, and in conformity with accounting principles and practices generally accepted in Japan ("Japanese GAAP"), which are different in certain respects as to the application and disclosure requirements of the International Financial Reporting Standards or accounting principles generally accepted in the United States of America. The accompanying financial statements are basically a translation of the audited financial statements that were prepared for Japanese domestic purposes from the accounts and records maintained by the Investment Corporation and filed with the Kanto Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law. In preparing the accompanying financial statements, relevant notes have been added and certain reclassifications have been made to the financial statements issued domestically in order to present them in a form that is more familiar to readers outside Japan. The Investment Corporation's fiscal period is a six-month period that ends at the end of April and the end of October each year. The Investment Corporation does not prepare consolidated financial statements because it has no subsidiaries.
2
. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) Securities
Non-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving average method. Concerning silent partnership (tokumei kumiai, "TK") interests, the method of incorporating the amount of equity equivalent to the portion that corresponds to the net gain or loss of the TK is adopted.
(B) Property, plant and Equipment
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is calculated on a straight-line basis over the estimated useful lives of the assets ranging as stated below:
Investment unit issuance costs are amortized over a period of three years under the straight-line method. (D) Investment corporation bond Issuance Costs Investment corporation bond issuance costs are amortized over a maturity period under the straight-line method.
(E) Accounting Treatment of Trust Beneficiary Interests in Real Estate
For trust beneficiary interests in real estate, which are commonly utilized in the ownership of commercial properties in Japan, all assets and liabilities in trust are recorded in the relevant balance sheets and statements of income and retained earnings.
(F)  Leasehold Right
Fixed term leaseholds on the building and special agreements on building sales are amortized over a contractual period of 48 years and 9 months under the straight-line method.
(G) Revenue Recognition
Operating revenues consist of rental revenues including base rents, common area charges, and other operating revenues, which include utility charge reimbursements, parking space rental revenues and other miscellaneous revenues. Rental revenues are generally recognized on an accrual basis over the life of each lease. Utility charge reimbursements are recognized when earned and their amounts can be reasonably estimated. Reimbursements from tenants including utility charge reimbursements are recorded on a gross basis and such amounts are recorded both as revenues and expenses during the fiscal period.
(H) Taxes on Property, plant and equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to the said period. Under Japanese tax rules, the seller of property at the time of disposal is liable for these taxes on the property from the date of disposal to the end of the calendar year in which the property is disposed. The seller, however, is generally reimbursed by the purchaser for these accrued property-related tax liabilities. When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of the property-related taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to ¥32,698 thousand and ¥13,334 thousand as of April 30, 2017 and October 31, 2016, respectively. In subsequent calendar years, such property-related taxes are charged as operating expenses in the fiscal period to which the installments of such taxes correspond.
(l)   Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets and liabilities using the statutory tax rates.
(J)  Consumption Taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Non-deductible consumption taxes applicable to the acquisition of assets are included in the cost of acquisition for each asset.
(K) Derivative Financial Instruments
The Investment Corporation utilizes interest-rate swap and interest-rate cap contracts as derivative financial instruments only for the purpose of hedging its exposure to changes in interest rates. The Investment Corporation deferred recognition of gains or losses resulting from changes in fair value of interest-rate swap and interest-rate cap contracts because these contracts met the criteria for deferral hedging accounting. However, the Investment Corporation adopted special treatment for interest-swap and interest-rate cap contracts if they met the criteria for hedging accounting under this treatment, whereby the net amount to be paid or received under the interest-rate swap and interest-rate cap contract is added to or deducted from the interest on the assets or liabilities for which the swap and cap contract was executed. The hedge effectiveness for the interest- rate swap and interest-rate cap contract is assessed each fiscal period except for those that meet the criteria of special treatment.
(L) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid, readliy convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of purchase.
(M) Rounding of Amounts Presented
Amounts of less than one thousand yen have been truncated in the Japanese financial statements prepared in accordance with Japanese GAAP and filed with regulatory authorities in Japan. Unless otherwise noted, amounts of twenty-fourth fiscal and twenty-third fiscal period are rounded down respectively, and ratios are rounded off in the accompanying financial statements. Totals shown in the accompanying financial statements do not necessarily agree with the sums of the individual amounts.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consisted of the following as of As of April 30, 2017 and October 31, 2016
Note: Restricted bank in trust deposits are retained for repayment of tenant leasehold and security deposits in trust.
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT

SHORT-TERM LOANS PAYABLE, LONG-TERM LOANS PAYABLE AND INVESTMENT CORPORATION BONDS
The following summarizes short-term loans payable, long-term loans payable and investment corporation bonds outstanding as of April 30, 2017:

REDUCTION ENTRY
The amount of reduction entry of property, plant and equipment acquired by government subsidy
The weighted average number of units outstanding of 404,885 as of April 30, 2017 and October 31, 2016, respectively was used for the computation of the amount of net income per unit. Net income per unit after adjusting for residual units is not included because there were no residual investment units.
INCOME TAXES
The Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 32%. However, the Investment Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements are met under the Special Taxation Measures Law of Japan. Under this law, the Investment Corporation must meet a number of tax requirements, including a requirement that it currently distribute in excess of 90% of its net income for the fiscal period in order to be able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of the Investment Corporation will be subject to regular corporate income taxes. The Investment Corporation distributed in excess of 90% of its distributable income in the form of cash distributions totaling ¥4,750 million and ¥4,601 million for the periods ended April 30, 2017, and October 31, 2016. Therefore such distributions were treated as deductible distributions for purposes of corporate income taxes. The effective tax rate on the Investment Corporation's income was 0.03% for the fiscal periods ended April 30, 2017 and October 31, 2016. The following table summarizes the significant differences between the statutory tax rate and the effective tax rate:
The significant components of deferred tax assets and liabilities as of April 30, 2017 and October 31, 2016 are as follows:

NET ASSETS
The Investment Corporation issues only non-par value units in accordance with the Investment Trust Act. The entire amount of the issue price of new units is designated as stated capital. The Investment Corporation is required to maintain net assets of at least ¥50 million as required by the Investment Trust Act.
RELATED-PARTY TRANSACTIONS
(1) Parent company, major corporate unitholders' and other
Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017) and Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016): Not applicable (2)  Affiliated companies and other Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017) and Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016): Not applicable (3) Fellow subsidiary companies and other Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017) and Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016): Not applicable (4)  Directors, major individual unitholders' and other Twenty-fourth Fiscal Period (November 1, 2016 to April 30, 2017) and Twenty-third Fiscal Period (May 1, 2016 to October 31, 2016): Not applicable
breakdown of rental and other operating revenues, property-related expenses, gain and
LOSS ON SALE OF REAL ESTATE PROPERTY
Rent revenue - real estate, expenses related to rent business, gain and loss on sale of real estate property for the periods from November 1, 2016 to
The Investment Corporation, as lessor, has entered into leases whose fixed monthly rents are due in advance with lease terms of generally two years for office buildings and residential properties and with lease terms ranging from two to ten years for retail properties. The future minimum rental revenues under existing non-cancelable operating leases as of April 30, 2017 and October 31, 2016 are as follows:

FINANCIAL INSTRUMENTS
Twenty-fourth Fiscal Period (from November 1, 2016 to April 30, 2017)
(A) Overview
(1) Policy for financial instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bank loans and the issuance of investment corporation bonds and new investment units. The Investment Corporation uses derivatives for the purpose of hedging its exposure to changes in interest rates and does not enter into derivatives for speculative or trading purposes. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Types of financial instruments and related risk
Investment securities, which are Japanese silent partnership (tokumei kumiai, *TK") interests, are exposed to credit risk of the issuer and risk of fluctuation of value of its property. Loans payable 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 approximately 11 years following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate swap and interest-rate cap transactions) in order to reduce such risk. Interest-rate swap and interest-rate cap transactions are used as derivative financial instruments. Utilizing interest-rate swap and interest-rate cap transaction, the Investment Corporation fixes its interest expense for long-term loans payable bearing interest at a variable rate. With regard to hedge accounting methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please see Note 2(K) "Derivative Financial Instruments".
(3) Risk management for financial instruments
(a)  Monitoring of market risk (the risks arising from fluctuations in interest rates and others) The Investment Corporation uses interest-rate swap and interest-rate cap transactions in order to minimize risk arising from fluctuations in interest rates on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer with regard to investment securities. (b)  Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled due dates) associated with procurement of funds Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves. (4) Supplementary explanation of the estimated fair value of financial instruments The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different fair value.
(B) Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet as of April 30, 2017 and estimated fair value are shown in the following table. The following table does not include financial instruments for which it is extremely difficult to determine the fair value (Refer to *2 below).
(*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing net liability position. *1: Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivative transactions
Assets
(1) Cash and bank deposits Since these items are settled in a short period of time, their carrying value approximates fair value.
Liabilities
(1) Short-term loans payable Since these items are settled in a short period of time, their carrying value approximates fair value. (2) Current portion of investment corporation bonds and (4) Investment corporation bonds The fair value of investment corporation bonds is based on quoted market prices. (3) Current portion of long-term loans payable and (5) Long-term loans payable The fair value of long-term loans payable is based on the present value of the total of principal and interest discounted by the interest rate to be applied if similar new loans were entered into. The fair value of long-term loans payable bearing interest at a variable rate, which is subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps, is based on the present value of the total of principal and interest, which is handled together with the applicable interest-rate swaps, discounted by the interest rate to be applied if similar loans were entered into.
Derivative Transactions
Please refer to Note 14 "DERIVATIVE TRANSACTIONS". *2: Financial instruments for which it is extremely difficult to determine the fair value
Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are not included in the preceding table.
*3: Redemption schedule for receivables

*4: Redemption schedule for loans payable and investment corporation bonds

Twenty-third Fiscal Period (from May 1, 2016 to October 31, 2016)
(A) Overview
(1) Policy for financial instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bank loans and the issuance of investment corporation bonds and new investment units. The Investment Corporation uses derivatives for the purpose of hedging its exposure to changes in interest rates and does not enter into derivatives for speculative or trading purposes. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety, liquidity, interest rate conditions and cash flows.
(2) Types of financial instruments and related risk
Investment securities, which are Japanese silent partnership (tokumei kumiai, *TK") interests, are exposed to credit risk of the issuer and risk of fluctuation of value of its property. Loans payable 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 approximately 11 years and 6 months following the accounting date. Although a certain portion of said liabilities are subject to interest rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate swap and interest-rate cap transactions) in order to reduce such risk. Interest-rate swap and interest-rate cap transactions are used as derivative financial instruments. Utilizing interest-rate swap and interest-rate cap transaction, the Investment Corporation fixes its interest expense for long-term loans payable bearing interest at a variable rate. With regard to hedge accounting methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please see Note 2(K) "Derivative Financial Instruments".
(3) Risk management for financial instruments
(a)  Monitoring of market risk (the risks arising from fluctuations in interest rates and others) The Investment Corporation uses interest-rate swap and interest-rate cap transactions in order to minimize risk arising from fluctuations in interest rates on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer with regard to investment securities. (b)  Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled due dates) associated with procurement of funds Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates and by using diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different fair value.
(B) Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet as of October 31, 2016 and estimated fair value are shown in the following table. The following table does not include financial instruments for which it is extremely difficult to determine the fair value (Refer to *2 below).
(*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing net liability position.
*1:  Methods to determine the estimated fair value of financial instruments and other matters related to securities and
derivative transactions
Assets
(1) Cash and bank deposits Since these items are settled in a short period of time, their carrying value approximates fair value.
Liabilities
(1) Short-term loans payable Since these items are settled in a short period of time, their carrying value approximates fair value. (2) Current portion of investment corporation bonds and (4) Investment corporation bonds The fair value of investment corporation bonds is based on quoted market prices. (3) Current portion of long-term loans payable and (5) Long-term loans payable The fair value of long-term loans payable is based on the present value of the total of principal and interest discounted by the interest rate to be applied if similar new loans were entered into. The fair value of long-term loans payable bearing interest at a variable rate, which is subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps, is based on the present value of the total of principal and interest, which is handled together with the applicable interest-rate swaps, discounted by the interest rate to be applied if similar loans were entered into.
Derivative Transactions
Please refer to Note 14 "DERIVATIVE TRANSACTIONS".
*2: Financial instruments for which it is extremely difficult to determine the fair value

Because no quoted market price is available and it is extremely difficult to determine the fair value, the above TK interests are not included in the preceding table.
*3:  Redemption schedule for receivables

*4: Redemption schedule for loans payable and investment corporation bonds

DERIVATIVE TRANSACTIONS
The following summarizes the contracted amount and the fair value of interest-rate swap and the interest-rate cap contracts as of April 30, 2017: (1) Hedge accounting not applied Not applicable (2) Hedge accounting applied
(*) Interest-rate swaps and interest-rate caps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value is included in the fair value of the hedged long-term loans payable. The following summarizes the contracted amount and the fair value of interest-rate swap and the interest-rate cap contracts as of October 31, 2016: (1) Hedge accounting not applied Not applicable (2) Hedge accounting applied
(*) Interest-rate swaps and interest-rate caps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value is included in the fair value of the hedged long-term loans payable.
INVESTMENT AND RENTAL PROPERTIES
Twenty-fourth Fiscal Period (from November 1, 2016 to April 30, 2017) The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenues. The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
*2: The fair value is the appraisal value or the survey value determined by outside appraisers. *3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increase/decrease factors were the acquisition of 3 properties totaling ¥14,942,506 thousand, the sales of 5 properties totaling ¥19,474,995 thousand and depreciation amounting in ¥2,288,632 thousand. Income and loss in the fiscal period ended April 30, 2017 for real estate for rental purposes is listed in Note 11. "BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY". Twenty-third Fiscal Period (from May 1, 2016 to October 31, 2016) The Investment Corporation owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenues. The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
*1: The carrying value represents the acquisition cost less accumulated depreciation. *2: The fair value is the appraisal value or the survey value determined by outside appraisers. The fair value of KDX Nihonbeshi Kabutocho Building and BUREX Toranornon are calculated based on the sales price of ¥12,400,000 thousand under the sales and purchase agreement dated November 1, 2016 and the sales price of ¥2,440,000 thousand under the sales and purchase agreement dated December 1, 2016, respectively. *3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal increase/decrease factors were the acquisition of 3 properties totaling ¥14,942,506 thousand, the sales of 5 properties totaling ¥19,474,995 thousand and depreciation amounting in ¥2,288,632 thousand. Income and loss in the fiscal period ended October 31, 2016 for real estate for rental purposes is listed in Note 11. "BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY".
SEGMENT AND RELATED INFORMATION
Twenty-fourth Fiscal Period (from November 1, 2016 to April 30, 2017) (A) 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.
(B) Related Information
(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 the statement of income and retained earnings. (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 and retained earnings.
(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 and equipment 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 and retained earnings. Twenty-third Fiscal Period (from May 1, 2016 to October 31, 2016)
(A) Segment Information
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue on the statement of income and retained earnings.
(B) Related Information
(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 the statement of income and retained earnings. (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 and retained earnings. (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 and equipment 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 and retained earnings.
Fiscal Periods:  Six months ending April 30 and October 31 Stock Listing:   Real Estate Investment Trust Market of the Tokyo Stock Exchange (Securities Code: 8972) Transfer Agent: Sumitomo Mitsui Trust Bank, Limited Ernst & Young ShinNihon LLC Auditor: IR Schedule (24th and 25th fiscal periods)
(including securities companies)
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Disclaimer:
This semiannual report includes translations of certain documents originally filed and made available in Japan in accordance with the Financial Instruments and Exchange Act of Japan. The English language sem'annual report was prepared solely for the convenience of readers outside Japan and is not intended to constitute a prospectus. This semiannual report should not be construed as an offer or solicitation to buy or sell any securities of Kenedix Office Investment Corporation (KDO). English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely identical to the concept of the equivalent Japanese terms. With respect to any and all terms herein, if there exist any discrepancies in the meaning or interpretation thereof between the original Japanese documents and English translation contained herein, the original Japanese documents will always govern the meaning and interpretation. None of KDO, Kenedix Real Estate Fund Management, Inc., any of their respective directors, officers, employees, partners, unitholders, agents, affiliates nor their advisors shall be responsible or liable for the completeness, appropriateness, or accuracy of English translations or the selection of the portion(s) of any document(s) translated into English. The financial statements of KDO have been prepared in accordance with generally accepted accounting principles in Japan (Japanese GAAP), which may materially differ in certain respects from generally accepted accounting principles of other jurisdictions. This semiannual report contains forward-looking statements. These statements appear in a number of places in this semiannual report and include statements regarding the intent, bellef, or current and future expectations of KDO or Kenedix Real Estate Fund Management, Inc. with respect to its business, financial condition and results of operations. In some cases, you can identify forward-looking statements by terms such as  "may," "will," "should," "would," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," or the negative of these terms or other similar terminology. These statements are not guarantees of future performance and are subject to various risks and uncertainties. Actual results, performance or achievements, or those of the industries in which we operate, may difer materially from any future results, performance or achievements expressed or implied by these forward-looking statements. In addition, these forward-looking statements are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise and involve known and unknown risks and uncertainties. Accordingly, readers of this document should not interpret the forward-locking statements included herein as predictions or representations of future events or circumstances. Potential risks and uncertainties also include those identified and discussed in this document. Given these risks and uncertainties, readers of this document are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of information produced herein. We disclaim any obligation to update or, except in the limited circumstances required by the Tokyo Stock Exchange, announce publicly any revisions to any of the forward-looking statements contained in these documents.