Translation Purpose Only FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED APRIL 30, 2010 (REIT) (November 1, 2009 to April 30, 2010) June 14, 2010 Kenedix Realty Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972. Taisuke Miyajima, Executive Director Representative: Asset Management Company:  Kenedix REIT Management, Inc. Representative: Taisuke Miyajima, CEO and President Inquires: Masahiko Tajima, Director / General Manager, Financial Planning Division TEL +81-3-3519-3491 Planned submission of semiannual security report:  July 27, 2010 Planned start of distribution payments: July 13, 2010
1. PERFORMANCE FOR THE FISCAL PERIOD ENDED APRIL 30, 2010 (TENTH FISCAL PERIOD)

Fiscal period ended April 30, 2010: ¥135,689 million Fiscal period ended October 31, 2009: ¥127,067 million This notice is the English-language translation of the Japanese announcement on our Web site released on June 14, 2010. However, no assurance or warranties are given for the completeness or accuracy of this English-language translation.
2. FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING OCTOBER 31, 2010 (May 1, 2010 to October 31, 2010)
Forecasted number of investment units issued and outstanding as of October 31, 2010: 233,550 units
3. OTHER
(1) Changes in Accounting Policies (a) Changes accompanying amendments to accounting standards: No (b) Changes other than (a): No (2) Number of Investment Units Issued and Outstanding (including treasury units) (a) Number of investment units issued and outstanding at end of penod (including treasury units) As of April 30, 2010: 233,550 units As of October 31, 2009: 200,000 units (b) Number of treasury units at end of period As of April 30, 2010: 0 units As of October 31, 2009: 0 units Note: Please refer to page 35 ''Notes to the Information per Unit'' for the calculation for the net income per unit. *Explanation on the appropriate use of the forecast of results and other matters of special consideration The forecast of results for the eleventh fiscal period ending October 31, 2010 are calculated as of June 14, 2010 based on the assumptions presented on page 15 "Preconditions and Assumptions for the Fiscal Period Ending October 31, 2010". Readers are advised that actual operating revenues, operating income, ordinary income, net income, distribution per unit may differ significantly from forecasts due to a variety of factors. Accordingly, the Investment Corporation does not guarantee payment of the forecast distribution per unit. This notice is the English-language translation of the Japanese announcement on our Web site released on June 14, 2010. However, no assurance or warranties are given for the completeness or accuracy of this English-language translation. 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 January 28, 2010), and so it has been omitted from this document.
2.
Management Policy and Operating Conditions
(1) Management Policy
There were no major changes to the “Investment Policy,” "Investment Strategy" and "Distribution Policy" from the most recent securities report (submitted on January 28, 2010), and so it has been omitted from this document.
(2) Operating Conditions
(1) Operating Conditions for the Tenth Fiscal Penod (fiscal period ended April 30, 2010)
A. The Investment Corporation The Investment Corporation was established on May 6, 2005 in accordance with the Investment Trust and Investment Corporation Law ("the Investment Trust Law"). On July 21, 2005, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo Stock Exchange with a total of 75,400 investment units issued and outstanding. (Securities Code: 8972). Subsequently, the Investment Corporation raised funds through public offerings including two global offerings. The Investment Corporation also undertook an additional issue of 33,550 investment units through a public offering in Japan on November 16, 2009. Consequently, as of April 30, 2010, the end of the tenth fiscal penod, the number of investment units issued and outstanding totaled 233,550 units. The Investment Corporation appointed Kenedix REIT Management, Inc. as its asset management company. 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. The Investment Corporation endeavors to develop a diversified investment portfolio named “KENEDIX Selection,” adopting a three-point investment criteria based on property type, area and size.
B. Investment Environment and Management Performance
(a) Investment Environment During the fiscal period under review, the Japanese economy expenenced difficult conditions as was evident by the mild deflation that occurred where consumer prices for the first time in 4 years decreased as a rebound from significant excess supplies and soaring crude oil prices of the previous fiscal year. Another piece of evidence was that the unemployment rate remained high. As for the real estate market, official land prices announced by the Ministry of Land, Infrastructure, Transport and Tourism on March 18, 2010 showed that land prices in almost all areas decreased on an annual basis against the background of a stagnant economic environment. The change in average land prices in Japan for the one year penod from March 2009 decreased by 6.1% for commercial land and by 4.2% for residential land. There was an increase in the degree of decrease for all uses. In the Tokyo Metropolitan Area, the average decreased by 7.3% for commercial land and 4.9% for residential land while for the three major metropolitan areas, the average decreased by 7.1% for commercial land and 4.5% for residential land. There was an increase in the degree of decrease compared to the previous survey. The office building leasing market continues to experience difficult conditions since it t tends to lag behind the business cycle and corporate performances. On the other hand, the real estate transaction market is starting to show signs of a recovery after November 2009, as s seen in the recommencement of property acquisitions by real estate investment trusts (J-REITs) with capital increase through public offerings, real estate transactions conducted by private placement funds involving the purchase of large-scale properties and improvement of the financing environment.
(b) Management Performance
As of the end of the ninth fiscal period (fiscal period ended October 31, 2009), the Investment Corporation owned 65 properties with a total acquisition price of ¥220,159 million. In the fiscal period under review, the Investment Corporation acquired 5 office buildings (total acquisition price of ¥15,610 million) in Tokyo Metropolitan Area.
As a result, the number of properties owned as of April 30, 2010 stood at 70, with a total acquisition price of ¥235,769 million. Looking at t he portfolio as a whole, 90.3% was comprised of office buildings, 5.2% of central urban retail properties and 4.3.% of residential properties on an acquisition price basis. The occupancy ratio as of the end of the te te th fiscal penod (fiscal penod ended April 30, 2010) was 94.4% reflecting stable investment and asset management.
1. Total acquisition price is the total of acquisition price for each property classified by type and area. 2. Total acquisition price is rounded down to the nearest million yen. Percentages are rounded down to the nearest first decimal place.
Make Diversified Acquisitions
As of April 30, 2010, the Investment Corporation owned 70 properties for a total acquisition price of ¥235,769 million with 94.4% occupancy ratio. Supported by this asset base along with the management know-how of mid-sized office building accumulated by the Asset Management Company, the Investment Corporation has acquired properties based on its diversified property acquisition strategy. The Investment Corporation has also expanded the asset size of the portfolio based on a diverse range of property acquisition strategies. In particular, the Investment Corporation has realized vanous types of property acquisition, from the acquisition of properties with a low occupancy ratio and lease-up in a short period of time (KDX Nishi-Gotanda Building and KDX Toranomon Building which were acquired during the fourth fiscal period (fiscal penod ended April 30, 2007), KDX Jimbocho Building which was acquired during the sixth fiscal period (fiscal period ended April 30, 2008)and KDX Nagoya Sakae Building which the building portion was acquired during the ninth fiscal period (fiscal period ended October 31, 2009)), acquisition of property at the stage when construction of the building was yet to be completed (KDX Nagoya Sakae Building, which land was acquired during the sixth fiscal period) and acquisition of property which Kenedix, Inc. was involved in the development (KDX Harumi Building which was acquired during the seventh fiscal period (fiscal period ended October 31, 2008)), etc.
Operation and Management of Existing Properties
The Investment Corporation has appointed the Asset Management Company as its property management company for its entire portfolio. In establishing a single point of contact for all matters relating to property management activities, the Investment Corporation strives to secure consistent policies, specifications and procedures along with ensuring swift and quality service. As of April 30, 2010, the investment portfolio is being managed generally at a high occupancy ratio and the occupancy ratio as of the KENEDIX  REALTY  INVESTMENT  CORPORATION  (8972) end of the fiscal period under review (April 30, 2010) was maintained at 94.4%. The Investment Corporation is satisfied with the quality of property management. Stable Management due to Large Number of Tenants and Tenant Diversification by Sector The number of end-tenants for office buildings was 629 as of the e end of the fiscal period under review (April 30, 2010). Floor area leased to each end-tenant as a proportion of total leased floor area of the total portfolio was at most 2.0% for tenants of office buildings, and 5.2% for the total top 3 tenants of office buildings. This indicates that diversification in the number of tenants has been realized. Furthermore, tenants of office buildings are comprised of various sectors, such as the service sector, wholesalers, retailers, manufacturers, etc. As a result, the impact by a certain end-tenant vacating the property or the economic recession impacting a certain sector has relatively small effect. Therefore, the Investment Corporation believes that it will achieve stable portfolio management.
Actual Results of Tenant Turnover
Tenants for office buildings that the Investment Corporation owns are comprised of many medium and small-sized tenants, and there is a large number of tenants representing a diversified scope of sectors. Therefore, regardless of the environment surrounding the leasing market, around 10% of tenants tend to move out annually on a consistent basis. This trend has continued until now, even during this phase of sudden deterioration of the leasing market since the autumn of 2008. Furthermore, as for the moving in of new tenants in office buildings that the Investment Corporation owns, the Investment Corporation has been able to continue realizing a certain level of tenants moving in both in terms of floor area and number of new tenants. This was achieved despite the sudden deterioration of the leasing market since the autumn of 2008.
1. The floor area of new tenants is the total leased floor area leased to new tenants whose lease agreements or sub-lease agreements became effective after November 2007 and was calculated every 6 months. 2. The floor area of moving out tenants is the total leased floor area leased to moving out tenants whose lease agreements or sub-lease agreements terminated after November 2007 and was calculated every 6 months. 3. The number of tenants moving in and number of tenants moving out were calculated based on the number of floors, meaning that even if the same tenant moved in/moved out from several floors, each floor was counted as 1 move in/move out.
Leasing Management in View of the Leasing Market Environment
The Investment Corporation believes that the mid-sized office building market tends to stably maintain the number of tenants at a certain level even amidst the phase of a weakening leasing market. This is because the market has a broad base of potential tenants as well as diversified business sectors, bringing a variety of tenant needs for lease that include demands for increased floor spaces, requirements by companies to transfer offices from higher-rent buildings and needs to transfer offices as a result of corporate restructuring. Of all others, "mid-sized office buildings in Tokyo Metropolitan Area," which is an area that the Investment Corporation is mainly investing in is the largest market in terms of demand due to the economic scale of the Tokyo Metropolitan Area and there are many middle-market and small- and medium-sized enterprises that are candidates for tenancy. Since the listing in 2005, the Investment Corporation had conducted negotiations to increase rents while maintaining favorable KENEDIX REALTY INVESTMENT CORPORATION (8972) relationships with tenants in cases where market rents greatly exceeded contracted rents. These activities to match the contracted rent with the market rents had realized increases in rental revenue. On the other hand, in view of the sudden detenoration of the economy since autumn 2008 and the accompanying trends of the leasing market, at the beginning of the eighth fiscal period (fiscal period ended April 30, 2009) the Investment Corporation switched to the management policy of placing priority on maintaining occupancy ratios without, in principle, negotiating to raise rents during forthcoming negotiations on rent. One reason why it was able to swiftly switch policies was because the Investment Corporation entrusts all its property management duties to the Asset Management Company, and that it has an established structure that enables it to take into account future trends of the leasing market in advance and swiftly respond to market changes.
Change in Occupancy Ratio
The occupancy ratio of office buildings that the Investment Corporation owns was stably maintained in the 95% level during the eighth fiscal penod (fiscal penod ended April 30, 2009), despite the significant detenoration of the leasing market. This was made possible because it adopted a flexible leasing policy to swiftly respond to the abovementioned market trends. During the ninth fiscal penod (fiscal period ended October 31, 2009), the occupancy ratio for office buildings dropped to 91.7% as of July 31, 2009 because of the extended period of vacancy and impacts of acquiring KDX Nagoya Sakae Building, which had a low occupancy ratio at the time of acquisition (Note1). However, as of the end of the fiscal period under review (April 30, 2010), the occupancy ratio rose 2.3% to 94.0% compared to the ratio as of July 31, 2009, in reflection of the favorable leasing situation at KDX Nagoya Sakae Building, etc. Furthermore, the Investment Corporation achieved 100% occupancy ratios for 36 out of 63 office buildings as of April 30, 2010. These and other results indicate that it is maintaining a stable occupancy ratio.
30, 2010. Note 2: Occupancy ratios are rounded to the nearest first decimal place.
Average Rent Level
As of the end of the fiscal period under review (April 30, 2010), the average rent level of office buildings was 16,800 yen (Note 3),, whereas it was 17,300 yen (Note 3) as of the end of ninth fiscal period (October 31, 2009) and 17,500 yen (Note 3) as of the end of the eighth fiscal period (April 30, 2009). This means that it has dropped 4.0% compared to the end of the eighth fiscal period and 2.8% compared to the end of ninth fiscal period, but the Investment Corporation believes that the rents are stable even amidst this phase of the weakening leasing market. Note 3: The average rent level covers the offices primarily on the second floor and above, excluding those on the first floor and those used as shops, warehouses or for special purposes, etc., of the 57 properties the Investment Corporation has owned since the end of the seventh fiscal penod (October 31, 2008) and which it has continued to own until the end of the fiscal penod under review (KDX Nagoya Sakae Building (building portion) which was acquired in the ninth fiscal period and 5 properties acquired during the fiscal period under review are not included). The average rent level of each property is the value obtained by dividing the sum of the monthly rent (including common area charges) per each property by the total leased area of each property, and is rounded down to 100 yen.
C. Capital Acquisition
(a) Status of Borrowings The Investment Corporation undertook long-term borrowings of ¥7,000 million (Note 1) to acquire an additional assets and refinanced KENEDIX REALTY INVESTMENT CORPORATION (8972) ¥8,500 million (¥4,700 million in long-term borrowings and ¥3,800 million in short-term borrowings (Note 1)). Details are provided as follows. 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, the borrowings whose period until repayment date have surpassed one year because the repayment date 1 year from the drawdown date is not a business day and for which the repayment date has been moved to the following business day, are included in short-term borrowings. Long-term borrowings refer to borrowings with a period of more than one year from the drawdown date to the repayment date. Same applies below.
of ¥960 million Note 3: Repayment Method: February 26, 2010 to August 31, 2014: repayment of ¥137.5 million every 6 months, and February 18, 2015: repayment of ¥4,125 million Note 4: Repayment Method: August 31, 2010 to February 28, 2015: repayment of ¥50 million every 6 months, and April 2, 2015: repayment of ¥1,500 million As a result, the balance of interest-bearing debt stood at ¥102,968.5 million as of April 30, 2010, comprising ¥90,968.5 million in borrowings (¥82,168.5 million in long-term borrowings and ¥8,800 million in short-term borrowings) and ¥12,000 million in investment corporation bonds. As of April 30, 2010, ¥25,000 million out of ¥30,500 million of long-term borrowings which have floating interest rates have been fixed by utilizing interest-swap agreements. In addition, the long-term debt ratio (Note 5) was 91.5% and the long-term fixed interest debt ratio (Note 6) was 86.1%. Note 5: 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 6: Long-term fixed interest debt ratio = （Balance of long-term fixed interest rate borrowings + Balance of investment corporation bonds） ÷ (Total borrowings + Balance of investment corporation bonds) The balance of long-term fixed interest rate borrowings includes borrowings with floating interest rates effectively fixed by utilizing interest‐rate swap agreements. Long‐term fixed interest debt ratio is rounded to the nearest first decimal place.

(b) Overview of Posted Collateral
On February 18, 2010, the Investment Corporation posted collateral for 4 more properties (Koishikawa TG Building, Gotanda TG Building, KDX Nihonbashi 216 Building and Pacific Marks Nishi-Shinjuku) in addition to the 40 properties it had already posted collateral for as of the end of the ninth fiscal period (October 31, 2009). The status of the posted collateral as of April 30, 2010 are as follows.
In addition, the outstanding balance of secured borrowings as of the end of the fiscal penod under review (April 30, 2010) is 90,968.5 million yen.
(c) Diversification of Debt Matunties
The Investment Corporation will continue to strive to reduce refinancing risk by diversifying repayment dates and extending borrowing periods for its interest-bearing debt. Moreover, the long-term borrowings undertaken during the fiscal period under review (fiscal period ended April 30, 2010) are as follows.
In addition, the total balance of interest-beanng debt as of the end of the tenth fiscal period (April 30, 2010) maturing in each fiscal period is as follows. Balance of Interest-Bearing Debt Maturing in Each Fiscal Period of the Investment Corporation (Note 1) (Reference) Balance of Interest-Bearing Debt Maturing in Each Half-Year Penod ending on March 31 and September 30 (Note 1) (Note 2) Note 2: 1H is from April 1 to September 30, 2H is from October 1 to March 31 of the following year and are not identical with the fiscal period of the Investment Corporation (e.g. 2010, 1H is from April 1, 2010 to September 30, 2010) (d) Status of Credit Rating The status of the credit ratings as of April 30, 2010 are as follows.
Note 1: Rating reviews conducted by Japan Credit Rating Agency, Ltd. during the fiscal period under review were as follows. In an announcement on January 13, 2010, the rating was changed from "A+" to "A" and the outlook was changed from "negative" to "stable" for such reasons as the continued downward trend in appraisal values.
(Issuer Credit Rating and Senior Unsecured Long-Term Debt Rating) issued by Moody's Investors Service. (e) Status of Shelf Registration The Investment Corporation filed a debt shelf registration statement in February 2009. Details are as follows.
First Series Unsecured Investment Corporation Bonds of ¥9,000,000,000 and Second Series Unsecured Investment Corporation Bonds of ¥3,000,000,000 have been issued in March 2007 based on the debt shelf registration statement filed in February 2007. In addition, the Investment Corporation filed an equity shelf registration statement to conduct equity financing in April 2009. Details are as follows.
There is no issuance based on the abovementioned investment unit certificate shelf registration.
D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of ¥8,067 million, operating income of ¥3,738 million, ordinary income of ¥2,568 million and net income of ¥2,567 million for its tenth fiscal period (fiscal period ended April 30, 2010). In accordance with Article 67.15 of the Special Taxation Measures Law, the Investment Corporation distributes the total amount of its unappropriated retained earnings for each period. Cash distribution for the tenth fiscal period was ¥10,993 per unit (2) Outlook A. Investment Environment Although the Japanese economy is gradually recovering, it is still in a state of difficulty, with such factors as self-sustainability being weak and the unemployment rate remaining at a high level. For the moment the employment situation remains severe and there are risks that might push down the economy, including concerns over weakening overseas economies, especially Europe, the fluctuations in the financial capital market and the impact of deflation. On the other hand, with corporate earnings continuing to improve, the recovering trend of the economy is expected to continue against the background of such factors as improvement of overseas economies and the effect of policies, including emergency economic packages. As for the real estate market, the Ministry of Land, Infrastructure, Transport and Tourism announced the "Trend Report of the Prices of Intensively Used Land in Major Cities" on May 27, 2010 (covering January 1 to April 1, 2010). Amidst a situation where the economy is still in a state of difficulty in terms of self-sustainability despite experiencing gradual recovery, the Report showed that land prices of the high urbanization zones in major cities continued on a decreasing trend against the background of low land demands, increased vacancy rates in office buildings and other properties, and lowered profitability due to drops in rents. Meanwhile, the rate of decrease has decelerated in general due to a sense of affordability, progress in inventory and price adjustments, and other factors. At the same time, some districts changed to a rising trend or began to flatten out. In the office building leasing market, the rising trend of vacancy rates and decreasing trend of rents still continue. On the other hand, due to the fact that the rents have suddenly decreased, there is a possibility that the rents of office buildings, which now appear rather low, will cease to fall. However, it is likely that periods of vacancy will be extended due to continuously weak demand for office spaces. Therefore, there is a possibility that changes in rent levels will divide into two trends with some properties ceasing to fall while other properties continuing to decrease, depending on the competitiveness of the area and property.
B. Future Management Policies and Pending Issues
The Investment Corporation adopts the basic policy of conducting dynamic and flexible investment that accurately reflects the trends and ensures a timely response, and developing a diversified investment portfolio focused on a three-point investment criterion based on property type, area and size. From this standpoint and in light of the investment environment described above (the Japanese economy, land price trends, leasing market for office buildings, etc.), the Investment Corporation creates 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 to "build a strong portfolio primarily comprising mid-sized office buildings" by making investments in a flexible and dynamic way that does not miss "trends" and "timing." Given the global credit crunch, the Investment Corporation has put priorities on improving its financial standing and selling its properties since the eighth fiscal period (fiscal period ended April 30, 2009). However, it now believes that it is time to start shifting its approach and pursue portfolio growth over a medium to long term, a natural position of a listed J-REIT. The credit dispanty and selective lending stance of financial institutions still remains with such factors as the recovery of creditworthiness of J-REIT's for which the real estate market stabilization fund was established, change of sponsor companies, mergers between J-REIT's and the resumption of public offerings or issuance of investment corporation bonds, in addition to the declining lending base rate. However, the financing environment of J-REITs is showing signs of a recovery. Amidst such a situation, the appetite of investors to invest in real estate is gradually recovering and real estate transaction prices are also showing signs of a recovery. Under these circumstances, the Investment Corporation occupies an advantageous position in the transaction market for mid-sized office buildings, as it holds a portfolio surpassing 200 billion yen and has an abundant track-record in investing in and managing mid-sized office buildings, as well as a good prospect of improving its financial standing and proven financial stability. Against such a backdrop, the Investment Corporation considers the present situation as "the arrival of a good opportunity to work to seek stable growth of its portfolio through newly acquiring mid-sized office buildings." With this perspective, the Investment Corporation intends to further the acquisition of mid-sized office buildings ahead of the full-fledged recovery of the market, without waiting for deals in the overall office building transaction market to become active. Moreover, when acquiring property, the Investment Corporation will try to diversify investment methods by giving consideration to the balance of financing so as to acquire property at an early stage (e.g. investments in silent partnership in collaboration with the sponsors of the Asset Management Company). KENEDIX REALTY INVESTMENT CORPORATION (8972) The Investment Corporation aims to acquire properties that should contribute to increased profitability of its portfolio, fully considering the rental NOI yield (Note) of the portfolio it owns, the weighted average costs and the significance and impact of the properties on its growth strategies. Moreover, the Investment Corporation will examine the sale of properties individually in accordance with the necessity to enhance financial soundness or with the room for replacement of assets that assumes property acquisitions. Of this, conceming central urban retail properties and residential properties, the Investment Corporation will not only refrain from conducting new investments, but will also place such properties on the top of the list of properties to sell while taking into consideration the market environment, asset size and other factors. In addition, in light of the characteristic features of individual properties and depending on the sales terms and conditions, the Investment Corporation will not exclude office buildings either from the list of properties that could be sold. Moreover, the Investment Corporation will not exclude assets whose cash flow shows no signs of improvement for the short-term from the list of properties that could be sold. Note: The leasing NOI yield is a weighted-average figure of the annualized yield of leasing NOI  (= Rental revenues - Rental expenses + Depreciation expenses for the penod) against the acquisition price, in accordance with the operating period. (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 tenth fiscal period. In establishing a single point of contact for all matters relating to property management activities, the Investment Corporation strives to secure consistent policies, specifications and procedures along with ensuring swift 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 responses as well as optimal tenant satisfaction. Accordingly, the Investment Corporation will aim to maintain / increase of the cash flow by offering office environment with high tenant satisfaction. Based on the aforementioned, the Asset Management Company undertakes property management activities as follows: • Identify satisfaction through use of tenant surveys • Measures to Maintain and Raise Competitiveness of Properties • Leasing management according to the market environment • Careful control of management and operating costs by taking advantage of portfolio size • Appropriate responses to relevant laws and regulations Identify tenant satisfaction through use of tenant surveys The Investment Corporation recognizes each tenant as a key customer and strives to enhance customer satisfaction and raise the competitiveness of its properties as the means to maintain and increase earnings. The Investment Corporation conducted a customer satisfaction survey ("CS Survey") through J.D. Power Asia Pacific, Inc., an internationally recognized company that engages in customer satisfaction evaluation, to better understand the needs of its tenants and take steps to respond to their preferences. As a part of this survey the administration officers of each tenant and tenant employees were asked to respond to many questions concerning buildings and facilities as well as operating and management services. The Investment Corporation conducted the first CS Survey, which covered 20 of its properties, during the second fiscal period (fiscal penod ended April 30, 2006), the second CS Survey, which covered 44 of its properties, during the fifth fiscal period (fiscal penod ended October 31, 2007) and the third CS Survey, which covers 58 properties during the ninth fiscal period (fiscal period ended October 31, 2009). Based on the results of the first survey and the second survey, the Investment Corporation has strived to maintain and enhance customer satisfaction by, in terms of hardware (buildings and facilities), implementing construction for maintenance and construction in response to the CS Survey (renovations to enhance value and for other purposes) for respective properties in a way to meet tenant needs and, in terms of software (operating and management services), by changing building maintenance companies for properties with low satisfaction on building maintenance, and conducting improvement activities individually based on the feedback to questionnaires to administration officers on the site. The third survey conducted in July 2009, showed enhanced satisfaction in most items, resulting in the reflection of the improvement activities the Investment Corporation has taken to date. Given the results of the third CS Survey, the Investment Corporation gave feedback during the fiscal period under review (fiscal period ended April 30, 2010) to each tenant for all properties concerning opinions of tenants and countermeasures. Following that, it has taken specific measures to address individual problems one by one. Furthermore, the Investment Corporation will establish a new guideline centering on improvement measures to reflect issues of dissatisfaction in terms of services, etc., including cleaning and tenant services in an aim to standardize and enhance service quality in relation to the portfolio. The Investment Corporation will continue to listen to the voices of tenants, its customers, and will endeavor to conduct improvement activities after grasping its strengths and problems both in terms of hardware and software for each property, in pursuit of maintaining and enhancing tenant satisfaction. By continuously conducting such surveys, the Investment Corporation will aim to increase customer satisfaction, generate improvements in rent levels and asset values, promote enhanced earnings and aim to maintain and increase cash flow.
Measures to Maintain and Raise Competitiveness of Properties
The Investment Corporation aims to provide attractive mid-sized office buildings in order to enhance portfolio value and rental revenues. During the one year period from the eighth fiscal period (fiscal period ended April 30, 2009) to the fiscal period under review (fiscal penod ended April 30, 2010), the Investment Corporation conducted management under the policy of reducing the budget for major construction to enhance value and keeping construction expenditures to the scope necessary, due to having completed the bulk of construction measures at many of its portfolio properties. For the eleventh fiscal period (fiscal period ending October 31, 2010) and onwards, the Investment Corporation will proactively carry out construction for renovations in response to the Energy Saving Act, etc., in addition to appropriate construction for repairs and maintenance and construction for renovations that are necessary for lease-up. The Investment Corporation believes that the quality of mid-sized office buildings in Japan vary considerably depending on the nature of the owner. For example, a building owned by an individual or small company that owns only one or a few buildings may not have the resources to provide high-quality maintenance. Furthermore, when a building is owned by a large company, property management is often dictated by that company's priorities and does not necessarily correspond to tenant needs or satisfaction. Based on the results of the CS Survey, the Investment Corporation will consolidate its building maintenance companies by taking utmost advantage of the portfolio size, and then will implement operation and management in close contact with the actual properties in order to further enhance the management quality and services. The Investment Corporation will set unified standards in regards to specifications and services that tend to differ by property, and implement measures to enhance the value by carrying out property management based on these unified standards. By doing so, the Investment Corporation aims to maintain rent levels and asset values. Moreover, the following are changes in the actual costs and budgets of the repairs, maintenance and renovation plans (construction budget) and changes in depreciation expenses. 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 the tenants generally tend to be small- and medium-sized enterprises and turnover ratios are relatively high. Therefore, in the leasing aspect, the Investment Corporation implements leasing activities in a timely and flexible manner 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 by implementing dynamic and flexible leasing activities through the sharing of information closely with leading brokers, holding of previews, marketing directly to corporations, utilizing guarantee companies and other measures. On the other hand, the Investment Corporation will endeavor to conduct property management so as to increase customer satisfaction by adopting the basic policy of maintaining current conditions in serving existing tenants.
Careful control of management and operating costs by taking advantage of portfolio size
The Investment Corporation utilizes the scale ments of owning many properties and the negotiating strength acquired through its management track record to reduce building maintenance costs. The Investment Corporation has managed to reduce building maintenance expenses for office buildings, trust fees and electricity costs at some properties by reviewing the content of building maintenance. In addition, the Investment Corporation has managed to improve the efficiency of content of maintenance and also managed to reduce costs by consolidating the building maintenance company for office buildings in Tokyo. The Investment Corporation will carefully control the quality of property management and operating costs and reduce building maintenance and operating costs by taking advantage of the portfolio size in building maintenance costs and construction bidding.
Appropriate responses to relevant laws and regulations
The Investment Corporation will swiftly collect information with regard to the laws to be revised, including the Energy Saving Act, as well as present laws and regulations, to appropriately make the required responses.
(c) Financial Strategy (Debt Financing)
The Investment Corporation will seek to diversify its debt repayment period to reduce refinancing risk. Furthermore, the Investment Corporation will pursue stable financial management through such measures as continuing to maintain long-term debt ratios above prudent levels. Furthermore, through prepayment of borrowings (mainly borrowings whose repayment dates will arrive within 1 year) by refinancing them as long-term borrowings and other measures, the Investment Corporation will aim to extend the average life of its debts. In order to pursue stable financial management, the Investment Corporation will aim to keep the ratio of interest-bearing debt to total assets (LTV) at less than 45% as a rule as it has done so to date. However, it will also remain open to the option of management at the upper 40% level brought about by debt financing conducted for the purpose of acquiring prime properties, etc. The Investment Corporation will continue to carry out conservative leverage control over its LTV. 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 than ever before.
(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 the Timely Disclosure Network System (TDnet), which is a system operated by the Tokyo Stock Exchange, as well as press releases and its Web site (URL: http://www.kdx-reit.com/eng/ ).
(3) Important Subsequent Events
There were no important events following account settlement of the tenth fiscal period (fiscal period ended April 30, 2010). (4) Outlook Forecasts for the eleventh fiscal period (May 1, 2010 to October 31, 2010) are presented as follows. Please refer to the "Preconditions and Assumptions for the Fiscal Period Ending October 31, 2010'' below for factors that underpin forecasts.
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 October 31, 2010"
KENEDIX  REALTY  INVESTMENT  CORPORATION  (8972)
(6) Notes [Going Concern]
None

【Financial Instruments】
Tenth Fiscal Period (November 1, 2009 to April 30, 2010)
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 the issuance of corporate bonds and new investment accounts. The Investment Corporation makes use of denvative instruments primarily as a risk hedge against interest rate fluctuations and to lessen interest rate payments. In addition, it is company policy to not conduct speculative derivative transactions. 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) Financial Instruments and Respective Risks
Loans and investment corporation bonds are used primarily for procuning funds necessary for the acquisition of properties and have a redemption date of a maximum of seven 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. KENEDIX  REALTY  INVESTMENT  CORPORATION  (8972) 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 4. 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. 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 by using 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 as of April 30, 2010 are as follows.
Assets (1) Cash and deposits, 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 KENEDIX REALTY INVESTMENT CORPORATION (8972) 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 are undertaken.
Derivative Transaction
Items that are not applied to hedge accounting Not applicable
together with hedged long-term loans payable.

Additional Information
From the fiscal period under review, the Investment Corporation has applied "Revised Accounting Standard for Financial Instruments" (The Accounting Standards Board of Japan [ASBJ] No. 10, March 10, 2008) and "Guidance on Disclosures about Fair Value of Financial Instruments" (The Accounting Standards Board of Japan [ASBJ] No. 19, March 10, 2008).
【Notes to the Retirement Payment】
【Related-Party Transactions】
None
1. Taisake Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the articles of incorporation of the Investmen Corporation. 2. Asset management foe include ¥9,910 thousand sales fee related to the sale of property and ¥17,750 thousand management foe related to the acquisition of property that cou book value for individual real estate. 3. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the foc is set up in the agreement, "Operating Agency Agreement" between the Investment Corporation and Kenedix REIT Management, Inc. 4. Consumption taxes are not included in a deal amount, and are included in the balance of the end of period. S. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the fee is set up in the agreement, "Property Management Agreement" between the Investment Corporation and Kenodix REIT Management, Inc. Property management fee include ¥14,676 thousand related to the acquisition of property that count in book value for individual real estate. 3. Subsidiary companies and other: None 4. Fellow subsidiary companies and other: None Tenth Fiscal Period (November 1, 2009 to April 30, 2010) 1. Parent Company, corporate shareholders and other: None
1. Taisuke Miyajima performed as a representative of the third party (Kenodix REIT Management, Inc.), and the fee is set up in the articles of incorporation of the Investmen Corporation. 2. Asset management fee include ¥70,275 thousand management fee related to the acquisition of property that count in book value for individual real estate. 3. Taisuke Miyajima performed as a representative of the third party (Kenedix REIT Management, Inc.), and the foc is set up in the agreement, "Operating Agency Agreement" between the Investment Corporation and Kenedix REIT Management, Inc. 4. Consumption taxes are not included in a deal amount, and are included in the balance of the end of period. 5. Taisuke Miyajima performed as a representative of the third party (Kenodix REIT Manugement, Inc.), and the fee is set up in the agreement, "Property Management Agreement" between the Investment Corporation and Kenodix REIT Management, Inc. Property management fee include ¥21,206 thousand related to the acquisition of property that count in book value for individual real estate. 3. Subsidiary companies and other: None 4. Fellow subsidiary companies and other: None
【Fair Value of Real Estate for Rental Purposes】
Tenth Fiscal Period (November 1, 2009 to April 30, 2010) 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:
Note 2: Fair value at the end of the fiscal period under review is the appraisal value or the survey value determined by outside appraisers. Note 3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal penod under review, principal increases were the acquisition of real estate trust beneficiary interests to five properties totaling ¥15,893,389 thousand, and principal decreases were the retirement of one portion of assets concerning real estate trust beneficiary interests to two properties amounting to ¥12,537 thousand. Income and loss in the fiscal period ended April 30, 2010 for real estate for rental purposes is listed in Notes Concerning Statements of Income. Additional Information From the fiscal penod under review, the Investment Corporation has applied "Accounting Standard for Disclosures about Fair Value of Investment and Rental Property'' (The Accounting Standards Board of Japan [ASBJ] No. 20, November 28, 2008) and "Guidance on Accounting Standard for Disclosures about Fair Value of Investment and Rental Property" (The Accounting Standards Board of Japan [ASBJ] No. 23, November 28, 2008).

(7) Movements in Investment Units Issued and Outstanding
Movements in unitholders' capital and the number of investment units issued and outstanding since first fiscal penods are summarized in the
Notes: l. 2. 3. 4' 5. 6. 7. 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 and repayment of borrowings. The offer price was ¥873,180 per unit with an issue price of ¥842,886 per unit. 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 acquisition of investment properties and repayment of borrowings. The issue price was ¥842,886 per unit. 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.
4. Transfer of the Directors
During the tenth fiscal period (fiscal period ended April 30, 2010), there was no transfer for the Directors. The Investment Corporation was established with an offer price of ¥500,000 per unit. 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. 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 acquisition of investment properties. The issue price was¥558,250 per unit. 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. 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 acquisition of investment properties. The issue price was¥572,519 per unit.

5. Reference Information
1.  "Total Amount Held" is the amount allocated in the balance sheets at the end of the period (figures are on a net book value basis after deducting depreciation), and is rounded down to the nearest million yen. 2.  "Ratio" is the ratio of the amount allocated in the balance sheets to the total assets rounded to the first decimal place.
Properties Roster
(2)
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 I million are rounded down from the amounts on the balance sheet. 3. Appraisal values (end of the tenth fiscal period) are based on the asset valuation method and standards outlined in the Investment Corporation's Articles of Incorporation and regulations formulated by the Investment Trusts Association, Japan. Appraisal values are drawn from valuation reports prepared by the Japan Real Estate Institute, Daiwa Real Estate Appraisal Corporation, and Nippon Tochi-Tatemono Limited. -40- 4. The appraisers for the properties are Japan Real Estate Institute (A), Daiwa Real Estate Appraisal Corporation (B) and Nippon Tochi-Tatemono Limited (C). 5. Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded down to the nearest first decimal place. 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 (70 properties). 6. A-65 KDX Shin-Yokohama 381 Building Annex Tower is an annex tower of the A-47 KDX Shin-Yokohama 381 Building, and the Investment Corporation owns the entire compartmentalized ownership building. Valuation for appraisal value at the end of the period has been conducted based on the assumption that both of these have been managed as a single property.
Property Distribution

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. Details of Investment Real Estate and Trust Real Estate

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 the number of floors: SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level. For example: B2F9: Two floors below ground level and nine floors above ground level. 5. Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data is calculated using the weighted-average based on acquisition prices as of April 30, 2010, and is rounded down to the nearest first decimal place. 6. A-65 KDX Shin-Yokohama 381 Building Annex Tower is an annex tower of the A-47 KDX Shin-Yokohama 381 Building, and the Investment Corporation owns the entire compartmentalized ownership building. 7. Probable Maximum Loss (PML) data is based on a survey provided by Sompo Japan Risk Management, Inc. as of January 2010. The Portfolio PML is the data based on 70 properties.
B. Capital Expenditure
(a) Planned capital expenditures Major capital expenditure plans for renovation of properties in which the Investment Corporation holds for the eleventh fiscal penod (May 1, 2010 to October 31, 2010) are as follows. Planned capital expenditure includes portions classified into expenses for accounting purposes.
(b) Capital Expenditures During the Fiscal Period Under Review The Investment Corporation undertook the following major capital expenditures as follows. In the fiscal period under review, the Investment Corporation completed work across its entire portfolio totaling ¥441 million. This total comprised of ¥330 million in capital expenditures and ¥110 million for repairs, maintenance and renovation expenses.
(c) Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans The Investment Corporation formulates long-term repairs, maintenance and renovation plans on an individual investment property basis and allocates a portion of its cash flows generated during the period to a reserve for repairs, maintenance and renovation to meet large-scale renovation over the medium- to long-terms. The following amount has been transferred to the reserve from penod cash flows.
KENEDIX REALTY INVESTMENT CORPORATION (8972)
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 the case of more than one buikling), 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. KENEDIX  REALTY  INVESTMENT  CORPORATION  (8972) 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 tenants or sub-lease agreements are singed. 5. The total number of tenants refers to the actual number of end tenants for each property. However, for KDX Shin-Yokohama 38I Building Annex Tower, please refer to Note 9, for Residence Charmante Tsukishima, please refer to Note 10, and for Gradito Kawaguchi, please refer to Note 11. 6. The occupancy ratio is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the nearest first decimal place. 7. Total rental and other operating revenues cover all income, including that from rental revenue, common charges, and parking space rental revenues, rounded to the nearest one thousand yen. Total real estate business rental revenues refers to the total amount of revenues generated during the fiscal period under review from real estate rental operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen. 8. Guarantee and security deposits refers to the 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. KDX Shin-Yokohama 381 Building Annex Tower: Other than 1 tenant occupying the first floor and second floor, the Investment Corporation and Y.K. KRF 11 have concluded a fixed-rent, fixed-term building lease contract for the third floor to ninth floor (term of contract: to November 17, 2010). Therefore the total number of tenants indicated is 2. 10. Residence Charmante Tsukishima: Because we have concluded a rental guarantee (fixed-term lease: until January 30, 2011) 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 1. 11. Gradito Kawaguchi: Because the master lessor and Haseko Livenet Inc. have concluded a rental guarantee (fixed-term lease: until March 31, 2011) building lease contract for dwelling units (excluding first-floor shops), the total number of tenants is indicated as 2. 12. The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties. D. Information concerning major real estate properties There were no major real estate properties with real estate business rental revenues exceeding 10% of total real estate business rental revenues for the tenth fiscal period (fiscal period ended April 30, 2010). E. Information concerning major tenants (a) Tenant which holds more than 10% of the total leased area: None (b) Reference: Major end tenants
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 the nearest l. first decimal place. 21 Not disclosed due to the tenants' request.
1. Collateral right holders (including fixed pledge holders and fixed mortgage holders) for all of the collateralized properties are as follows: Sumitomo Mitsui Banking Corporation, The Chuo Mitsui Trust and Banking Co., Ltd., Aozora Bank, Ltd., Development Bank of Japan Inc., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Resona Bank, Ltd., The Norinchukin Bank and Mitsui Sumitomo Insurance Co., Ltd. 2. The outstanding balance of secured borrowings as of the end of the fiscal period under review (April 30, 2010) is 90,968.5 million yen.
ЖAs of April 30,
Operational days using weighted average aco
2. Funds procured through borrowings were used to acquire real estate or trust beneficiary interests in real estate and to repay borrowings. 3. Bottowargs listed in the current potion of long-krm payable were listed in long-term payable in the previous fiscal period. 4. Repayment Method: August 31, 2009 to August 31, 2011: repayment of 10,000 theasing yen every 6 menths, and February 29, 2012: repayment of 450,000 thousand yen 5. Repayment Method: August 31, 2009 to February 29, 2012: repayment of 20,000 flooland yen every 6 mentiss, and August 31, 2012: repayment of $$0,000 thousand yen 6. Repayment Method: February 26, 2010 to August 31, 2013: repayment of 20,000 fromand yen every 6 months, and October 26, 2013: sepayment of 840,000 thousand years. 7. Repayment Method: January 29, 2010 to July 31, 2013: repayment of 40,000 thousand yen every 6 months, and October 30, 2013: repayment of 1,680,000 thousand yea 8. Repayment Method: Apell 30, 2010 to October 31, 2014: repayment of 24,000 theasand yen every 6 menths, and Janaary 30, 2015: repayment of 960,000 theasand yen 9. Repayment Method: February 26, 2010 to August 31, 2014: repayment of 137,500 flouiand you every 6 months, and February 18, 2015: sepayment of 4,125,000 thousand you 10. Repayment Methed: 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 +