14 th period - オリックス不動産投資法人 of deterioration in the economy has spread to the real estate market. First, in the real estate market for leasing, the vacancy

FROM: September 1, 2008 TO: February 28, 2009

ORIX JREIT REPORT

OR

IX J

RE

IT R

EP

OR

T

14th period

4-1, Hamamatsucho 2-chome, Minato-ku, Tokyo 105-6135, Japan

http://www.orixjreit.com/english/

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ORIX JREIT REPORT14th period

Profile

On June 12, 2002, ORIX JREIT Inc. (OJR) was listed on the Tokyo Stock

Exchange as a diversified REIT, the first such listing in Japan. OJR invests in a

wide variety of real estate properties, centered on office buildings, and also

including logistics facilities, retail facilities, hotels, and other properties.

Contents

Message from the Management ... 01

Investment Policy ... 02

Financial Highlights ... 03

Special Issue ... 04

OJR´s Growth Strategy ... 06

Investment Performance ... 10

The Portfolio of OJR ... 12

Portfolio Map ... 14

Main Properties in the Greater Tokyo Area ... 15

Unit Information ... 19

Outline of OJR and its Asset Management Company ... 20

Performance Report ... 21

Financial Statements ... 39

Corporate Data ... 54

About Our Website ... 55

01ORIX JREIT REPORT 14th Period

Message from the Management

We, ORIX JREIT Inc. (OJR) and its assetmanagement company, ORIX AssetManagement Corporation (OAM), arepleased to report the business performance of OJR to our unitholders.

Overview of operations and financial results for the14th periodAs for the external growth for the current period, OJR replacedproperties by selling Round-Cross Shinsaibashi and acquiring theORIX Nagoya Nishiki Building and the Ichikawa Logistics Center.While we sold the property in the Shinsaibashi area in Osaka,where demand for offices had declined due to the development ofcommercial districts, we acquired two newly constructedproperties; thereby enabling us to improve the quality of ourportfolio. OJR was able to continue the operation of highly soundfinancial management for the current period with the interest-bearing debt ratio being constrained to a conservative level byusing funds acquired through the sales of property in purchasingproperties. As for internal growth, we endeavored to maintain andimprove profitability by putting priority on raising the rent so thatthe gap between market rent and our current rent would be filled. As a result, operating revenues were ¥10,522 million, operating

income was ¥5,039 million, and net income was ¥4,016 million.Distribution per unit was ¥15,963.

Entering into the 15th period, in March 2009, OJR sold the ORENagoya Fushimi Building and acquired the ORIX Real Estate NishiShinjuku Building and the Omiya Miyacho Building for the purposeof improving the quality of our portfolio due to the replacement ofproperties as we did during the 14th period. The replacement ofproperties reduced the asset size in the Nagoya area, where thereal estate rent market has slowed remarkably mainly due to thedeterioration in earnings in the manufacturing sector, such as theauto industry, and enriched the portfolio of our core GreaterTokyo and Offices.

Together with the acquisitions and sales of properties in 14thperiod, our portfolio comprised 49 properties for a totalacquisition price of ¥277,557 million through the acquisition ofthese four properties (total acquisition price: ¥38,800 million) and

the sale of two properties as of the announcement date of thefinancial results for the 14th period (April 15, 2009).

Future business plan and prospectThe escalation of the global financial crisis, concern of downsiderisks in the world economy, and fluctuations in the stock marketssparked by the U.S. subprime mortgage loan problem havesignificantly affected the real economy of Japan, where a tougheconomic environment of declining corporate revenues,worsening employment, and gradual declines in consumerspending is continuing. Although there are some glimmers of aturnaround in business sentiment down the road, as we observedthe development of inventory adjustments in manufacturing, theprospect of an economic recovery remains dim, and we are notoptimistic about the situation. Under such circumstances, theeffect of deterioration in the economy has spread to the realestate market. First, in the real estate market for leasing, thevacancy ratio is increasing nationwide and asking rents are weak.On the other hand, in the real estate market for sales, buyers arelimited mainly due to the stringent stance of financing by financialinstitutions, the cap rate is on the increase (prices move in theopposite direction), and the situation is turning in favor of buyers.OJR aims to shift to the occupancy-rate-oriented management

based on leasing, which perceives the market movementaccurately, and to acquire outstanding properties while continuingconservative financial management by replacing properties as wehave done during the current period.We intend to deliver a stable and satisfactory level of profit

distribution and increase the asset value of our portfolio in themedium to long term through solid asset managementcorresponding efficiently with the environmental changes asstated earlier. We thank all our unitholders and look forward toyour continued support and encouragement.

Yoshio OnoExecutive Director of ORIX JREIT Inc.

Mitsuo SatoRepresentative Director and President of ORIX Asset Management Corporation

02 ORIX JREIT REPORT 14th Period

Investment Policy

A Diversified REIT Focused on Office Buildings and Greater Tokyo

No less than 80%

Others

Offices

Greater Tokyo Area

Others

Tokyo, Kanagawa, Saitama and Chiba

In order to diversify risk and deliver stable distributions tounitholders, OJR invests with particular focus on the followingfour considerations: property use diversification, regionaldiversification, property size, and portfolio management.

Use

1 Generally speaking, we will invest in office buildings with a value of no less than 80% (onan acquisition price basis) of our total portfolio. Also through investing in wide variety ofreal estate properties, including logistics facilities, retail facilities, hotels, and otherproperties, we aim to construct a portfolio based on an integrated model as we expectsuch use diversification will reduce our exposure to risk. Our investment targets will berestricted to properties that do not have the main intended use of residential (excludingproperties acquired on or before May 29, 2008).

Region

2 We will invest no less than 80% of the total portfolio (on an acquisition price basis) in theGreater Tokyo Area (Tokyo, Kanagawa, Saitama and Chiba). In order to improveprofitability in total portfolio, we invest candidates based on set criteria outside GreaterTokyo.

Property Size

3 Our general rule for investment is to focus on medium-sized office buildings* or larger,but at the same time, reduce the investment risk concentrated in each specific property.Our investment focus for office building properties in Greater Tokyo will be on propertiesvalued at no less than five billion yen.* The term "medium-sized office building" here refers to an office building with a total floor area of between 3,000 and15,000 m2.

Portfolio Management

4 To enable us to respond effectively to changes in the business environment by adjustingour portfolio accordingly, we employ a flexible policy allowing us to make swift decisionson acquiring, holding, and selling properties.


Financial Highlights

Realized external growth by replacing properties corresponding smoothly to environmental change

During the 14th period, amid the rapid change in the environment surrounding the J-REITmarket, we realized external growth and continued the operation of sound financialmanagement due to investments in highly selected properties and sales of properties,which helped to improve the quality of our portfolio.

Sept. 25, 2008

Sept. 29, 2008

Mar. 27, 2009

Distribution per unit

Total distribution ¥4,017 millionTotal number of outstanding units 251,622 units

Operating revenues

Operating income

Net income

Total assets

Net assets

Net assets per unit (¥)

(Millions of yen)

¥15,963

Sold Round-Cross Shinsaibashi (sales price: ¥14,500 million)

Acquired the ORIX Nagoya Nishiki Building (acquisition price: ¥12,500 million) and the Ichikawa Logistics Center (acquisition price: ¥8,300 million)

Acquired the ORIX Real Estate Nishi Shinjuku Building (acquisition price: ¥13,600 million) and theOmiya Miyacho Building (acquisition price: ¥4,400 million)Sold the ORE Nagoya Fushimi Building (sales price: ¥10,680 million)

12,000

10,000

8,000

6,000

4,000

2,000

0

8,477 9,1619,975

3,865 4,1274,926

3,347 3,2844,085

10,053 10,522

4,714 5,039

3,818 4,016

10th period 11th period 12th period 13th period

（Millions of yen）

Operating income

Net income

Operating revenues

14th period

10th period 11th period 12th period

14,850 14,57216,233

225,372 225,372251,622

18,000

15,000

12,000

9,000

6,000

3,000

0

300,000

250,000

200,000

150,000

0

（Yen）（Unit）

Distribution per unit

Total number of units issued

13th period

15,174 15,963

251,622 251,622

14th period

Five-Year Summary Distribution

10,522

5,039

4,016

286,282

141,831

563,666

Five-Year SummaryOperating Results

14th Period Operating Results

Topics


Special Issue Efforts for asset management to realize stable distribution and an increase in asset value for the medium to long term

1stperiod(02/8)

2ndperiod(03/2)

3rdperiod(03/8)

4th period(04/2)

5th period(04/8)

6th period(05/2)

7th period(05/8)

8th period(06/2)

9th period(06/8)

10th period(07/2)

11th period(07/8)

12th period(08/2)

13th period(08/8)

14th period(09/2)

As of Apr. 15,2009

99.6 104.9114.5

141.5153.3 149.0

176.8 174.9

198.0209.0

235.6 231.1

262.4 269.6277.6

22,472 15,501 15,246 14,156 14,772 14,068 16,437 15,274 16,261 14,850 14,572 16,233 15,174 15,963

93.995.6 96.3

97.0 97.4 97.695.2 95.7

96.598.3 98.3 97.8 97.7 97.4

39Properties

40Properties

41Properties

46Properties

49Properties 46

Properties

47Properties

39Properties

41Properties

40Properties

44Properties 43

Properties

47Properties

48Properties

49Properties

300.0

250.0

200.0

150.0

100.0

50.0

0

100.0

95.0

90.0

Occupancy rate (%)

Total acquisition price (Billions of yen)

Distribution per unit (Yen)

Properties acquired after IPOProperties held at the time of IPO

The real estate market is influenced by domestic business conditions and the supplied volume of office buildings. Forexample, in 2003, the so-called 2003 Problem, where office buildings were completed in succession and supplied inlarge volume in the greater Tokyo area, caused a vacancy rate increase and a decline in central Tokyo rent. Currently,the Japanese economy is in a downward phase and demand for offices is declining due mainly to the global creditcrunch initiated by the subprime mortgage loan problem. Therefore, an increase in the vacancy rate and the lowering ofasking rents are found nationwide in the real estate market.

ORIX JREIT Inc. (OJR) has since its foundation conducted solid asset management maintaining a balance betweenexternal growth and internal growth corresponding to trends in the real estate market for the purpose of stabledistribution and an increase in asset value for the medium to long term. Currently, the real estate market is in a difficultsituation. However, OJR aims at maintenance of the occupancy rate and profitability, and improvement of the quality ofour portfolio by efficiently responding to market changes, as we have done in the past, and realizing stable distributionsand an increase in asset value in the medium to long term. On this page, we will explain the asset management of OJR to date from both sides of external growth and internal

growth.


ExternalGrowth

InternalGrowth

ORIX Asset Management Corporation (OAM), the asset management company of OJR, has constructed asystem to quickly respond to the needs of tenants by holding a weekly meeting with external propertymanagement firms on the management of properties. In addition, we have strived to improve the assetvalue via the renewal of properties for greater customer satisfactions as well as to maintain theoccupancy rate and profitability through leasing into which the features per property and the rent trendhave been incorporated properly. Furthermore, OAM has continuously made efforts to trim expenditures.OAM tries to reduce property management costs by setting selection standards for building managementcompanies and consigning the bulk of operations to companies that satisfied the standards.

Based on revisions to the portfolio consistent with market trends, continued sales of properties withlimited growth potential, and carefully selected investments in excellent properties, OJR has worked toexpand scale of our assets and upgrade the quality of our portfolio.

Sold 20 properties*, which mainly consisted of relatively old, small-sized properties.

Average values per building for the OJR portfolio

Building age Property size (Total floor area) Acquisition price

West Side Gotanda OX OtsuORIX Akasaka

2-chome BuildingORIX Shinagawa

BuildingAscend KandaSeafort Square Center Building

Toda Logistics Center

Acquired 30 properties*, which mainly consisted of recently built, medium-sized or larger properties.

OUT IN

End of 1st period

12.1 years

¥2.55billion

15,734m2

22,289m2 ¥5.66billion

9.0 years

April 15, 2009 End of 1st period April 15, 2009 End of 1st period April 15, 2009

* The numbers of sold/acquired buildings above are as of the announcement date of the financial results (April 15, 2009).

Weekly meetings with the externalproperty management firm

Efforts to increase the asset value by renewal constructions

So far, we conducted large-scale renewal construction to Round-Cross Akasaka, the Nagoya Itochu Building and the Aoyama246 Building, which included the internal space of the entrance,common use area, and rooms for rent as well as the exterior.

Reduction in property management costs through a review of expenses

100%

71.4%

28.6%reduction

End of 1st period End of 14th period

Comparison of building management costs per tsubo (approx. 3.3 m2)

Trends in Ieasing NOI yield

6.8%5.7%

4.0%

Example of renovated buildings — Aoyama 246 Building

5th

peri

od

6th

peri

od

7th

peri

od

8th

peri

od

9th

peri

od

10th

per

iod

11th

per

iod

12th

per

iod

13th

per

iod

14th

per

iod

8.0

6.0

4.0

2.0

0

Acquisition

Completion of renewal

Before After

Notes:1. The figure as of the end of the first period was used as

the standard with an index of 100%.2. Since the number of buildings held as of the end of the

14th period differs from that of the end of the first period,the cost reduction is partly due to improvements inmanagement efficiency by economies of size.


OJR’s Growth Strategy

External Growth Strategy

Office ORIX Real Estate Nishi Shinjuku Building

New AcquisitionsUsing the collaborative relationship with the ORIX Group (ORIX Synergy), we acquired two properties: the ORIX NagoyaNishiki Building and the Ichikawa Logistics Center during the 14th period; entering the 15th period, we acquired twoproperties: the ORIX Real Estate Nishi Shinjuku Building and the Omiya Miyacho Building in March 2009.

The Nishi Shinjuku area, where this property is located,has many high-rise office buildings near the TokyoMetropolitan Government building and is among theleading business districts in Tokyo. This property islocated about a two-minute walk from Shinjuku Stationon the Toei Subway Line and about a seven-minute walkfrom JR Shinjuku Station. The property can be clearlyseen because it faces Higashi-dori Street which runsnorth to south in Shinjuku, the secondary city center ofTokyo. This is a recently constructed property completedin April 2007 with high specifications.

Location

Completion

Number of Floors

Land

Total Floor Area

Acquisition Date

Acquisition Price

Shinjuku Ward, Tokyo

April 2007

12 floors with 1 underground floor

893.52 m2

9,376.84 m2

March 27, 2009

¥13,600 million

KDDI Building

Shinjuku Shinjuku Post OfficePost OfficeShinjuku Post Office

Meiji Yasuda Meiji Yasuda Life Shinjuku Life Shinjuku BuildingBuilding

Meiji Yasuda Life Shinjuku Building

Mode Gakuen Mode Gakuen Cocoon TowerCocoon TowerMode Gakuen Cocoon Tower

Keio Keio Department StoreDepartment Store

Keio Department Store

Odakyu Odakyu Department Store Department Store

Odakyu Department Store

LUMINE LUMINE ESTESTLUMINE EST

KOGAKUIN KOGAKUIN UNIVERSITYUNIVERSITYKOGAKUIN UNIVERSITY

LUMINE2

LUMINE1

JR Shinjuku JR Shinjuku BuildingBuildingJR Shinjuku Building

Koshu-kaido Street

Chuo Street

O－edo Line

Keio Line

Shinjuku StationShinjuku Station

Shinjuku StationShinjuku Station

Shinjuku Station

Shinjuku Station

Round-Cross Round-Cross ShinjukuShinjuku

Round-Cross Round-Cross Nishi Shinjuku Nishi Shinjuku

Round-Cross Shinjuku

Round-Cross Nishi Shinjuku

East Japan East Japan Railway Company Railway Company Head Office BuildingHead Office Building

East Japan Railway Company Head Office Building

HOTEL CENTURY HOTEL CENTURY SOUTHERN TOWERSOUTHERN TOWERHOTEL CENTURY SOUTHERN TOWER

ORIX Real Estate ORIX Real Estate Nishi Shinjuku BuildingNishi Shinjuku BuildingORIX Real Estate Nishi Shinjuku Building

Shinjuku Line

JR Shinjuku StationJR Shinjuku StationJR Shinjuku Station



Office Omiya Miyacho Building

The Omiya area, providing excellent railroad access withthe Shinkansen and other trains, is the one where demandfor office buildings is high among office markets in citiesnear Tokyo. Of this area, the east exit area of OmiyaStation, where this property is located, is a flourishingcenter on the Kyu-Nakasendo route, along which mid-to-small size shops and offices stand side by side and wheredemand can be expected for regional business sites ofbanks and brokerages which are strengthening theirbusiness services for individual clients, and professionaltraining colleges. Situated within about a five-minute walkfrom JR Omiya Station, this property was completed inSeptember 2008 as a newly constructed building with ascarcity of rentable rooms with an area of approximately150 tsubo (approx. 482 m2) on the standard floor.

Location

Completion

Number of Floors

Land

Total Floor Area

Acquisition Date

Acquisition Price

Saitama City, Saitama

September 2008

9 floors

873.98 m2

5,325.25 m2

March 27, 2009

¥4,400 million

JR Omiya Station

LUMINE2

LUMINE1

Marui

Loft

Daiei Brid

ge

Daiei Brid

ge

Chuo Street

Omiya Miyacho BuildingOmiya Miyacho Building

Omiya Omiya Ward OfficeWard Office

JR Line

JR Line

Tohoku・Joetsu S

hinkansen

obu Noda Line

Tobu Noda Line

LUMINE2

LUMINE1 Chuo Department StoreChuo Department Store

Takashimaya Department StoreTakashimaya Department Store

Toukouji TempleToukouji Temple

Daiei Brid

ge

Omiya Miyacho Building

Omiya Ward Office

JR Line

Tohoku・Joetsu S

hinkansen

obu Noda Line

ORE Omiya BuildingORE Omiya BuildingORE Omiya Building


OJR’s Growth Strategy


Office ORIX Nagoya Nishiki Building

The property is located in the Fushimi area, one of the foremost businessdistricts in Nagoya City. This property is a recently constructed office buildingcompleted in January 2007 and has high specifications; moreover, it is situatedin a highly convenient location, a two-minute walk from the nearest FushimiStation of the Nagoya City Subway, and a three-minute ride to Nagoya Stationfrom Fushimi Station.

Location

Completion

Number of Floors

Land

Total Floor Area

Acquisition Date

Acquisition Price

Nagoya City, Aichi

January 2007

16 floors

1,774.87 m2

13,859.62 m2

September 29, 2008

¥12,500 million

Belt Highway

Hori River

Tsurumai Line

Misonoza Theater

ORIX Nagoya Nishiki Building


Nishiki Street

Hirokoji Street

Myodocho JCT

Marunouchi StationM

arunouchi Station

Fushimi Station

Kokusai Center S

tation

Kokusai Center S

tation

Kokusai Center S

tationSakura－

dori Line

Higashiyama Line

Bank of Japan

Shimozono Park

Nagoya Kanko Nagoya Kanko HotelHotel

Nagoya Kanko Hotel

Hilton Nagoya

Logistics Ichikawa Logistics Center

The Ichikawa area, where this property is located, is one of the deliverycenters in the suburbs of the greater Tokyo area. The property’s location isconvenient because of its close proximity to the entry/exit ramps for theHigashi-Kanto and Keiyo Expressways; moreover, the property has the edgefor general purpose usage with high specifications satisfying the needs oftenants.

Location

Completion

Number of Floors

Land

Total Floor Area

Acquisition Date

Acquisition Price

Ichikawa-city, Chiba

June 2008

5 floors

19,834.80 m2

37,456.96 m2

September 29, 2008

¥8,300 million

Ichikawa ICBaraki IC

Chidoriｃｈo IC

Wangan Narashino IC

Wangan Ichikawa ICFunabashi IC

Makuhari IC

Ichikawa Logistics Center Ichikawa Logistics Center

Keiyo Highway

Keiyo Highway

Keiyo Highway

Sobu Line

Sobu Line

Sobu Line

Musashino Line

Musashino Line

Musashino Line

Futamata shimmachi Station

Ichikawa Ichikawa StationStationIchikawa Station

Funabashi Funabashi StationStationFunabashi Station

Higashi-Kanto Expressway



MEX Bay Shore Route

MEX Bay Shore Route

MEX Bay Shore Route

Keisei Line

Keiyo Line

Tozai Line Note: Total floor area includes a garbage disposal annex (40.00m2).


Financial Strategy

OJR has been pursuing a financial policy by paying attention to maintaining well-balanced liabilities and assets, (1) ensuring

financial soundness through increasing unsecured borrowings, fixing interest rates of debt on a long-term basis and dispersion

of repayment dates, (2) improving the financial flexibility through diversification of financing methods, and (3) developing and

implementing a sound and efficient capitalization policy.

Notes:

1. “Interest-bearing debt ratio” is obtained by dividing interest-bearing debts outstanding as of each period by the total amount of interest-bearing debts outstanding and unitholders´ capital as of the

same period. Figures are rounded to the first decimal place.

2. “Long-term fixed-interest debt ratio” is obtained by dividing outstanding long-term fixed-interest debts as of each period by outstanding interest-bearing debts as of the same period. Figures are

rounded to the first decimal place.

3. “Unsecured debt ratio” is obtained by dividing unsecured debts outstanding as of each period by interest-bearing debts outstanding as of the same period. Figures are rounded to the first decimal place.

4. “Average interest rate on fund procurement” represents the weighted-average interest rate (annual rate) at the end of each period. Figures are rounded to the second decimal place. With regard to

the average interest rate on the portion of borrowings for which the company concluded interest-rate swap agreements to hedge against interest rate fluctuation risk, the company used weighted-

average interest rates adjusted for the effect of relevant interest-rate swaps.

5. “Debts outstanding by repayment term” indicates the distribution of OJR’s debts as of April 15, 2009 that will decrease due to repayments at the end of the years listed above.

Debts outstanding by repayment term

(Billions of yen)

(as of April 15, 2009)

40.0

30.0

20.0

10.0

02009 2010 2011 2012 2013

35.0

21.5

32.028.0

10.0

Long-term fixed-interest debt ratio and unsecured debt ratio

100.0

80.0

60.0

40.0

20.0

0

(%)

End of 11th period

End of 12th period

End of 13th period

End of 14th period

As of Apr. 15, 2009

90.4 92.8

75.6

92.3

85.978.7

100.0 100.0

72.361.3

Long-term fixed-interest debt ratio (excluding debts payable within a year)Unsecured debt ratio

Average years to debt repayment dates and average interest rate on fund procurement

(Year)

Average years to debt repayment datesAverage interest rate on fund procurement

3.53.02.52.01.51.00.5

0

2.001.751.501.251.00

(%)

End of 11th period

End of 12th period

End of 13th period

End of 14th period

As of Apr. 15, 2009

2.6 2.7

1.92.1

1.541.65 1.63 1.63 1.59

Debts outstanding and interest-bearing debt ratio

End of 11th period

End of 12th period

End of 13th period

End of 14th period

As of Apr. 15, 2009

150.0

120.0

90.0

60.0

30.0

0

50.0

40.0

30.0

Debts outstandingInterest-bearing debt ratio

(Billions of yen)47.9 47.9

48.1 39.446.7

112.0

89.7

120.7

(%)

126.5

1.8

126.5

Overview of borrowings

Rating agency and details of ratings

Rating agency Details of ratings Rating outlook

Standard & Poor’sLong-term corporate credit rating: A–Short-term corporate credit rating: A–2 Positive

Rating and Investment Information, Inc.

Issuer rating: A+ Positive


Investment Performance

Occupancy Rate Situation (September 2008 to February 2009)

95.0%

90.0%

85.0%

100.0%

Sept. 30, 2008 Nov. 30, 2008 Jan. 31, 2009Oct. 31, 2008 Dec. 31, 2008 Feb. 28, 2009

97.7%

100.0%

100.0%

100.0%

100.0%

98.6%

96.5%

100.0%

100.0%

100.0%

100.0%

97.9%

97.0%

100.0%

100.0%

100.0%

100.0%

98.2%

97.1%

100.0%

100.0%

99.7%

100.0%

98.2%

96.7%

100.0%

100.0%

99.7%

100.0%

98.0%

95.8%

100.0%

100.0%

99.7%

100.0%

97.4%

Offices

Logistics Facilities

Retail Facilities

Hotels

Others

Overall

Portfolio Growth

300,000

400,000

200,000

100,000

(m2)

142,360 142,360 146,997188,245 196,296 189,604

215,026 208,932243,848 246,153

307,718338,942 337,848

End of 1st period

End of 2nd period

End of 3rd period

End of 4th period

End of 5th period

End of 6th period

End of 7th period

End of 8th period

End of 9th period

End of 10th period

End of 11th period

At the time of listing

Total acquisition price

(Billions of yen)

300.0

250.0

200.0

150.0

100.0

50.0

0

99.6 99.6 104.9114.5

141.5153.3 149.0

176.8

198.0209.0

End of 12th period

End of 14th period

15th period

(planned)

End of 13th period

174.9

231.1

262.4 269.6277.6

Total rentable area

265,574

235.6152,447

262,368


Portfolio Data Based on Acquisition Prices (As of April 15, 2009)

Use

Area

Property size (Total floor area)

Building age

Average

22,289 m2

83.4%

Offices


Retail Facilities

Hotels

Others

34.0%

3 Central Tokyo Wards

Remaining Tokyo Wards

Other Parts of the Greater Tokyo Area

Other Areas

5.7%

21.3%

10.2%

18.0%

44.9%

Average

9.0y.

Over 20y.

15-20y.

10-15y.

5-10y.

Under 5y.

26.1%

64.1%

9.8%

Over 15,000 m2

3,000 to 15,000 m2

Under 3,000 m2

7.9%

1.8%5.4%

1.5%

37.6%

17.2%

11.2%

Notes:

1. Percentage figures in the above graphs are rounded to the first decimal place. Total amounts do not necessarily come to 100% due to rounding up/down.

2. The weighted averages for property size and building age are described based on the acquisition price of each property respectively. Figures for property size are rounded to the nearest full

number. Figures for building age are rounded to the nearest first decimal place.

3. The above “acquisition prices” refer to acquisition prices shown on the purchase contracts (consumption tax is not included in the acquisition prices).

4. The above “property size (total floor area)” refers to the total floor space of the buildings, regardless of the equity stake of the company in the property.


The Portfolio of OJR

Use

AreaProperty

AcquisitionPrice

(¥ million)

Share in TotalAcquisition Price

(%)Completion

TotalRentable Area

(m2)

OccupancyRate(%)



Aoyama Suncrest Building

Round-Cross Ichi-bancho

Beside Shirogane

Round-Cross Akasaka Mitsuke

Nihonbashi East Building

Round-Cross Minami Azabu

Round-Cross Akasaka

Round-Cross Mita

Shiba Daimon Building

Round-Cross Tsukiji

ORIX Jimbo-cho Building

ORIX Shiba 2-chome Building

Aoyama 246 Building

ORIX Akasaka 2-chome Building

Nihonbashi Honcho 1-chome Building

ORIX Suidobashi Building

ORIX Shinagawa Building

Carrot Tower

Toyo MK Building

Round-Cross Moto Yoyogi

Round-Cross Nishi Shinjuku

Beside Kiba

DT Gaien

Yoyogi Forest Building

ORIX Ikebukuro Building

ORIX Shinjuku Building


Seafort Square Center Building

Round-Cross Kamata

Round-Cross Shinjuku 5-chome

KN Jiyugaoka Plaza

ST WORLD Building

ORIX Real Estate Nishi Shinjuku Building

Offices

As of March 31, 2009

3,356

3,900

1,301

1,650

1,720

1,394

2,624

1,748

2,195

3,378

4,177

7,500

5,200

21,860

10,500

3,000

15,200

5,479

5,270

5,091

2,650

2,450

2,430

1,473

9,577

8,300

8,020

18,000

5,640

4,500

3,110

3,500

13,600

1.2

1.4

0.5

0.6

0.6

0.5

0.9

0.6

0.8

1.2

1.5

2.7

1.9

7.9

3.8

1.1

5.5

2.0

1.9

1.8

1.0

0.9

0.9

0.5

3.5

3.0

2.9

6.5

2.0

1.6

1.1

1.3

4.9

September 1979

March 1994

September 1989

February 1988

October 1989

May 1992

October 1978

May 1990

October 1988

May 1992

March 1997

January 2003

November 1990

November 2004

March 2006

October 2005

June 2006

November 1996

April 1997

April 1992

June 1999

August 1991

February 1990

June 1987

July 2002

May 2003

October 2005

June 1992

February 1994

October 2006

December 2001

March 2007

April 2007

2,768.55

3,300.66

2,089.41

1,324.27

2,270.04

3,172.76

2,785.45

2,298.23

2,588.50

3,997.45

3,167.61

6,753.13

2,406.22

10,336.33

5,099.70

2,087.65

5,618.88

6,939.10

9,814.55

7,723.68

1,238.58

4,824.54

2,567.50

1,910.89

5,539.92

6,135.28

4,736.17

21,998.79

7,899.94

3,089.29

1,231.44

1,550.86

7,059.20

100.0

100.0

88.7

100.0

100.0

83.8

80.7

98.0

100.0

97.3

100.0

100.0

100.0

98.1

100.0

100.0

100.0

92.1

100.0

95.6

83.0

100.0

100.0

91.3

100.0

87.8

100.0

90.4

90.8

90.6

100.0

100.0

100.0


Neo City Mitaka

Round-Cross Kawasaki

Omiya Miyacho Building

Nagoya Itochu Building

ORIX Koraibashi Building

Lunar Sendai


Offices Total

Koshigaya Logistics Center


Ichikawa Logistics Center

Logistics Facilities Total

Nihon Jisho Minami Aoyama Building

CUBE Daikanyama

Retail Facilities Total

Cross Gate

Hotels Total

Park Axis Nishi Azabu Stage

Grand Maison Hakusan

Sonet Kami Ikebukuro

Others Total

Grand Total

Offices


Retail Facilities

Hotels

Others







Notes:

1. Share in total acquisition price and occupancy rate, are rounded to the first decimal place, and may not necessarily add up to totals due to rounding up/down.

2. Properties newly acquired during the 14th period or later are presented in red. OJR acquired the ORIX Nagoya Nishiki Building and the Ichikawa Logistics Center on September 29, 2008; the ORIX

Real Estate Nishi Shinjuku Building and the Omiya Miyacho Building on March 27, 2009

3. Toda Logistics Center changed its name from the Toda Park Logistics Center as of December 1, 2008.

2,200

4,130

4,400

4,500

5,560

8,500

12,500

231,583

4,000

9,600

8,300

21,900

2,548

2,435

4,983

15,040

15,040

1,219

455

2,377

4,051

277,557

0.8

1.5

1.6

1.6

2.0

3.1

4.5

83.4

1.4

3.5

3.0

7.9

0.9

0.9

1.8

5.4

5.4

0.4

0.2

0.9

1.5

100.0

September 1993

January 1993

September 2008

February 1981

July 2004

February 1998

January 2007

-

January 2006

March 2005

June 2008

-

November 1997

January 2003

-

September 2000

-

April 2000

May 1993

February 1997

-

-

4,622.21

5,519.29

4,062.92

11,204.85

6,859.76

9,954.81

10,261.84

208,810.25

19,200.00

36,158.60

37,456.96

92,815.56

985.36

899.82

1,885.18

25,942.59

25,942.59

1,337.31

1,160.17

5,853.00

8,350.48

337,804.06

100.0

100.0

100.0

100.0

96.6

88.1

96.8

95.9

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.7

99.7

100.0

100.0

100.0

100.0

97.5

Other Areas


Use

AreaProperty

AcquisitionPrice

(¥ million)

Share in TotalAcquisition Price

(%)Completion

TotalRentable Area

(m2)

OccupancyRate(%)

As of March 31, 2009


Portfolio Map

●

●

●

●

●

●

●

●

■

■

●

◆

●

▲

▼

▼

▼

●

●

●

Koshigaya Logistics Center

Sonet Kami Ikebukuro

ORIX Ikebukuro Building

Grand Maison Hakusan


Round-CrossShinjuku 5-chome


Round-CrossNishi Shinjuku

Neo City Mitaka

Round-Cross Moto Yoyogi

● ORIX Real Estate Nishi Shinjuku Building

● ST WORLD Building

CUBE Daikanyama

Carrot Tower

Yoyogi Forest Building

ORIX Shinjuku Building

DT GaienToyo MK Building

● Omiya Miyacho Building

Beside Kiba

Seafort SquareCenter Building

Round-CrossKamata

KN Jiyugaoka Plaza

Round-CrossKawasaki

Cross Gate

JR Chuo Line, Sobu Line

JR Saikyo Line

JR Musashino Line

JR Joban Line

JR Sobu Line

JR Yamanote Line

JR Tokaido Line,Keihin Tohoku Line

Ichikawa Logistics Center

●

Remaining Tokyo Wards and Other Parts of the Greater Tokyo Area

●

▼

▲

◆

■

Offices


Retail Facilities

Hotels

Others

Nagoya Itochu Building


Lunar Sendai

ORIX Koraibashi BuildingOther Areas

JR Lines

Subway Tozai Line

Subway Chiyoda Line

Private Line Tokyu Denentoshi Line

Private Line Tokyu Toyoko Line

●

●

●

● ●

●

●

● ●

●

●

●

● ● ●

●

■

Chiyoda ward

Chuo ward

Minato ward

▲

ORIX Jimbo-choBuilding

ORIX SuidobashiBuilding

Round-Cross Ichi-bancho

NihonbashiEast Building

Nihonbashi Honcho1-chome Building

Round-CrossTsukiji

Shiba DaimonBuilding

Round-CrossAkasaka

ORIX Akasaka 2-chomeBuilding

Round-CrossAkasaka Mitsuke

Aoyama SuncrestBuilding

Round-CrossMinami Azabu

●

ORIX ShinagawaBuilding

Nihon JishoMinami Aoyama Building

Aoyama 246Building

Park AxisNishi Azabu Stage

ORIX Shiba 2-chomeBuilding

Round-Cross Mita

Beside ShiroganeJR Lines

Subway Ginza Line

Subway Chiyoda LineSubway Hibiya Line

Subway Nanboku Line

Subway Mita LineSubway Asakusa Line

Subway Oedo Line

JR Yamanote Line

JR Chuo Line, Sobu Line


●

●


Main Properties in the Greater Tokyo Area

Office

ORIX Akasaka 2-chome Building

Office

Seafort Square Center Building



Office

ORIX Shinagawa Building

Office

Nihonbashi Honcho 1-chome Building


Office


Logistics




Aoyama Suncrest Building ORIX Ikebukuro Building ORIX Shinjuku Building

Carrot Tower ORIX Shiba 2-chome Building Round-Cross Shinjuku 5-chome


Unit Information

The changes of unit price and transaction volume on the Tokyo Stock Exchange fromSeptember 1, 2008 to February 27, 2009 (the last trading day during the period) are as follows.

The breakdown of unitholder types as of February 28, 2009 is as follows:

Unit price (Yen)700,000

600,000

500,000

400,000

300,000

200,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

Oct. 1, 2008Sept. 1, 2008 Nov. 4, 2008 Dec. 1, 2008 Jan. 5, 2009 Feb. 2, 2009 Feb. 27, 2009

(Unit)Transaction volume

Number of units by unitholder type Number of unitholders by unitholder type

Total 251,622 units Total 15,574 unitholders

Overseas Investors

Overseas Investors

Individuals and Others

Financial Institutions(including securities brokers)

Other Corporate

Individuals and Others

Financial Institutions (including securities brokers)

Other Corporate

136,90654.41%

39,66215.76%

5,9302.36%

69,12427.47%

15,02496.47%

1070.69%

2241.44%

2191.41%

Note: Percentages in the above graphs are rounded to the second decimal place. Total amounts do not necessarily come to 100% due to rounding up/down.


Outline of OJR and its Asset Management Company

Investors

General Affairs Trustee

Real Estate

Asset Custodian

Investment

Distribution

EntrustmentEntrustment

Real Estate Investment Trust

Asset Management Company

ORIX Asset Management Corporation(OAM)

ORIX JREIT Inc. (OJR)

Investment

Income

[Major Assignments]1. Strategy planning2. Acquisition and disposition of properties3. Property management4. Real estate market research

[Major Assignments]1. Risk management and compliance2. Legal affairs3. Property assessment

[Major Assignments]1. Accounting and tax2. Proposals regarding debt finance3. Accounting, tax, general affairs and personnel

affairs of OAM

[Major Assignments]1. Corporate planning2. Support for committees, etc.3. Investor relations4. Proposals regarding equity finance

Shareholders’ Meeting

Board of Directors

Representative Director and President

Corporate AuditorIndependent Public Accountants

Risk Management and Compliance Committee

Risk Management and Compliance Department

[Major Assignments]1. Conducting of internal audits2. Formulation of audit plans

Internal Audit Department

Investment and Asset Management Department Finance and Accounting Department Corporate Planning Department

Executive Officer

Executive Officer Corporate Senior Vice President

Organization of OAM (As of April 15, 2009)

Structure

Japanese real estate investment trusts, so called JREITs, are closed-end investment funds that primarily investin real estate or real-estate-backed securities and deliver distribution to unitholders from rental income andcapital gains from asset sales, etc. The Law Concerning Investment Trusts and Investment Corporation requiresJREITs to be managed by an external entity.


Performance Report

Investment Performance Overview 1. Financial Highlights 2. Performance Review for Current Period

Fund Overview 1. Capitalization2. Major Unitholders 3. Unitholder Type

Portfolio Overview 1. Portfolio Summary 2. Selected Property Data 3. Selected Financial Data by Property 4. Major Tenants

Capital Expenditure 1. Projects – 15th Period Onward2. Results – 14th Period 3. Cash Reserve for Capital Improvements

Administrative Expenses

Transaction Activities during Current Period 1. Real Estate and Real Estate Held in Trust 2. Other Assets 3. Transactions with Related-Parties


Investment Performance Overview

1. Financial Highlights14th Period 13th Period

From September 1, 2008 to February 28, 2009

From March 1, 2008 to August 31, 2008

(In millions of yen, except otherwise indicated)

Operating revenues 10,522 10,053

Rental revenues 9,210 8,819

Other operating revenues 1,123 1,234

Gains on sale of real estate properties 189

Operating expenses 5,483 5,339

Property-related expenses 4,577 4,506

Operating income 5,039 4,714

Ordinary income 4,017 3,819

Net income (a) 4,016 3,818

Total assets (b) 286,282 280,411

Net assets (c) 141,831 141,632

Unitholders’ capital 137,814 137,814

Total number of units issued (units) (d) 251,622 251,622

Net assets per unit (¥) (c) (d) 563,666 562,878

Total cash distribution (e) 4,017 3,818

Distribution per unit (¥) (e) (d) 15,963 15,174

Distribution of retained earnings per unit (¥) 15,963 15,174

Distribution in excess of retained earnings per unit (¥)

ROA (%) (1) 1.4(2.8) 1.4(2.9)

ROE (%) (1) 2.8(5.7) 2.7(5.4)

Equity ratio (%) (c) (b) 49.5 50.5

Payout ratio (%) (4) (e) (a) 100.0 99.9

Supplemental Information

Number of real estate properties (5) 48 47

Number of tenants (3) 325 323

Total rentable area (m²) (3) 338,941.96 307,718.35

Occupancy rate (%) (3) (6) 97.4 97.7

Depreciation 1,875 1,773

Capital expenditures 69 160

NOI from property leasing activity (1) (2) 7,705 7,320

FFO (1) (2) 5,965 5,591

Notes:1. These ratios are calculated according to the following formulas.

ROA = Ordinary income divided by average total assets ROE = Net income divided by average net assets NOI (Net Operating Income) from property leasing activity =Rental revenues + Other operating revenues + Depreciation – Property-related expenses FFO (Funds From Operation)=Net income + Depreciation

Financial data included in the field has been prepared on a 6 months basis. However, the ratios in brackets represent annualized data.

2. Rental revenues and property-related expenses include revenues from finance lease of property and cost of finance lease of property, respectively, and the NOI from property leasing activity is computed after adding the cost of finance lease of property.

3. The number of tenants, the total rentable area, and the occupancy rate are computed, including properties recorded as investment in finance lease.

4. The payout ratio is rounded down to the first decimal place. 5. In the 14th period ended February 28, 2009, OJR sold Round-Cross Shinsaibashi and acquired the ORIX Nagoya Nishiki

Building and the Ichikawa Logistics Center. 6. The occupancy rate is the proportion of rented space to the total rentable space at each period-end. 7. Accounting data does not include consumption taxes.


2. Performance Review for Current Period

Major changes in the fund

OJR sold Round-Cross Shinsaibashi (sales price: ¥14,500 million) and acquired the ORIX Nagoya Nishiki Building (acquisition price: ¥12,500 million) and the Ichikawa Logistics Center (acquisition price: ¥8,300 million). As a result, OJR’s portfolio included 48 properties as of February 28, 2009 (39 office buildings, 3 logistics centers, 2 retail facilities, 1 hotel and 3 residential properties), with 338,941.96m2 of total rentable floor space, 325 tenants and an occupancy rate of 97.4 %. The invested amount (total of acquisition prices) was ¥269,597 million and the calculated price (appraisal value based on the evaluation by 5 appraisers) was ¥289,216 million.

Also, early in the 15th Period, OJR acquired the ORIX Real Estate Nishi Shinjuku Building (acquisition price: ¥13,600 million) and the Omiya Miyacho Building (acquisition price: ¥4,400 million) and sold ORE Nagoya Fushimi Building (sales price: ¥10,680 million) on March 27, 2009. These acquisitions and sale brought the total number of properties to 49 and the invested amount (total of acquisition prices) to ¥277,557 million.

In the 14th Period, operating revenues were ¥10,522 million, net income was ¥4,016 million, total cash distribution was ¥4,017 million, the distribution per unit was ¥15,963 (compared to our estimated distribution per unit of ¥15,617, a 2.2% increase), and a distribution payout ratio was 100.0%. As of the end of the 14th Period, total assets were ¥286,282 million, total interest-bearing liabilities were ¥126,500 million (long-term debt: ¥106,500 million, short-term debt: ¥20,000 million), net assets were ¥141,831 million, and net assets per unit were ¥563,666.

Business environment and fund performance

Japanese economyThe monthly economic report of April 17, 2009, issued by the Japanese government stated that the

economy had been worsening rapidly. Specifically, the government reported (i) severe and significant decreases in industrial production, (ii) substantial decreases in exports and corporate profits, (iii) moderate decreases in private consumption, and (iv) mild decreases in business investment, in addition to the rapid worsening in the employment situation. As for short-term prospects, the same report stated that while the economy was likely to continue worsening for the time being, the tempo was expected to moderate as inventory adjustment progressed. However, there remained the fear that the extremely low level of production would lead to significant adjustments in employment. In addition, the risks that the economy would become severer due to the worsening global financial crisis and concerns over further slowdown in overseas economies should be monitored.

Overview of the real estate market relating to our portfolioOfficesLease market:

The vacancy ratio is clearly on the increase nationwide. This tendency is considered primarily attributable to moving and consolidation of offices requiring a reduction in floor space or a reduction in office floors in the same building due to the worsening sentiment of tenants caused by the global recession. In regional cities, such as Sendai and Fukuoka, newly supplied buildings planned during an economic recovery period have been completed in succession, providing more supply than needed.

In the Tokyo 23 wards, the vacancy ratio for the December 2008 quarter was 3.3%, up for five quarters in a row after hitting bottom at 1.7% in the September 2007 quarter. Although the volume of new supply is not large compared to regional cities, such a tendency is considered to be attributable to the declining trend in demand. Also, the vacancy ratio in areas with many large-scale buildings, such as Marunouchi, which had enjoyed a low vacancy rate until recently, is now increasing. This is considered to be attributable to significantly worsening business performance of sectors with relatively high capability to pay handsome rents, such as foreign financial institutions and emerging real estate firms, the subsequent decrease in possible excellent tenants for large-scale buildings, and the rising awareness of office costs by companies in general.

The vacancy ratio in Osaka was 7.2% for the December 2008 quarter, up for the fourth consecutive quarter after reaching bottom at 5.7% for December 2007. In particular, the vacancy ratio of newly built buildings has remained high at around 20% since November 2008. Newly supplied quantity is expected to increase amid the growing trend in the vacancy ratio, and the balance of supply and demand is expected to deteriorate.


The vacancy ratio in Nagoya for the December 2008 quarter was 8.3%, trending upwards since December 2006 at 5.9%. The vacancy ratio showed an increase of 2.0% points during the past year, surpassing the 1.5% points in the 23 wards of Tokyo and in Osaka for the same period. This is considered to be attributable to the continuing trends of canceling small to mid-size spaces and reducing office floor area in the same building due to sluggish business performance. Large-sized buildings are expected to be completed in the first half of 2009, and demand will slow due mainly to rapid deterioration in earnings in the manufacturing sector; it is likely that the rising trend in the vacancy ratio will continue.

Sales market: Since the collapse of Lehman Brothers, which hit the global market in the fall of 2008, the inflow of funds to

the real estate market has been subdued, and the severe fund raising environment is continuing. Under such circumstances, the number of transactions is significantly on the decrease. By property type, we see some transactions for offices with relatively high liquidity, but properties of other types have dramatically decreased. Reflecting such a transaction tendency, the cap rate is on the increase after hitting bottom in October 2007, and it is prominently increasing in regional cities. The land price survey in 47 prefectures (standard land price) as of July 1, 2008, indicated that the number of places where land prices declined rapidly increased in regional locations. And the indices of urban land prices, reflecting the investment trend, stayed flat in March 2008 and declined in September 2008.

As just stated, with the credit crunch triggered by the subprime mortgage loan problem, a rise in the cap rate and a decline in real estate prices are continuing. In addition, because more people have to estimate that the environment around the growth potential of lease revenues will deteriorate as the financial crisis spreads to the real economy, an increase in the cap rate is expected to continue for the time being.

Logistics FacilitiesThe supply and demand balance for logistics facilities in the greater Tokyo area is severe, but large

logistics facilities that can respond to the elimination and consolidation of logistics facilities enjoy brisk demand. Also, the structural change of usage pattern, from company-owned facilities to rental facilities, is continuing.

However, demand for logistics will further decline amid the ongoing recession in 2009, and the demand-supply balance is expected to loosen. In particular, shippers are expected to increase the pressure to cut logistics costs, and we should pay more attention to the rent trends than to the vacancy ratio.

Retail FacilitiesFrom 2004 to 2007, annual sales in the retail industry tended to increase across the nation. However, since

commercial floor space increased more than sales increased, the commercial floor efficiency did not turn around to gain ground. From around the spring of 2008, sales by large retailers decreased year-on-year, and this tendency is increasing in department stores that sell expensive goods. In supermarkets, sales from a year earlier are decreasing due to stagnant sales in clothing, furniture, and electric appliances, though they maintain favorable sales in foodstuffs as consumers spend less eating out due to savings-oriented behavior. For the time being, retailers are facing fierce competition amid stagnant consumption, and the tight sales situation is likely to continue.

HotelsThe number of hotels and hotel rooms in Japan has continued to increase, with the number of hotels

reaching 9,442 and the number of rooms 766,297 as of the end of fiscal 2007. Many hotels were scheduled to be continuously supplied anew, but revisions to the hotel development plans are under way because of the turmoil in the global financial market triggered by the subprime mortgage loan problem. Also, a concern for a reduction in demand for accommodations is becoming stronger due to the downturn in the economy, and it is more likely that the opening rush of new hotels may be stemmed.

The demand-supply balance of hotels has been maintained owing to an increase in both domestic and foreign business demand and consumer spending due to the economic expansion and increasing foreign visitors to Japan, thanks to the effect of the Visit Japan Campaign jointly facilitated by the public and private sectors. However, the rapidly elevating awareness of cost-consciousness by corporations amid worsening business performance forced a decrease in demand for business trips with overnight stays. Consumer spending has also shrunk because of the uncertainty about employment and the wage environment. Demand by foreigners has stayed below the previous year’s level for five months in a row after posting negative year-on-year growth for the first time in August 2008 in 30 months. The occupancy levels in the 55 cities nationwide for the latter half of 2008 (July to December 2008) stayed below the previous year’s level, with the average room occupancy rate of 75.7% (78.3% for the same quarter in the previous year) and an average


capacity occupancy rate of 69.0% (69.7% for the same quarter in the previous year).

Others; Residential PropertiesApartment rents in the greater Tokyo area for the latter half of 2008 remained robust in spite of the

ongoing sluggish consumer sentiment due to worsening business confidence. This is attributable to two effects: one is the contribution of the restraint of new supplies to the maintenance of demand-supply balance, and the other is the strong demand sustained by excess of incoming migration to the greater Tokyo area. However, although the rental contract success rate (“the number of successful contracts” divided by “the number of registered houses) for the latter half of 2008 in the greater Tokyo area was 20.9%, up 0.4% points compared to the same quarter of the previous year, the number of contracts signed is on the decrease, and the tendency to refrain from moving is beginning to take root. In future, a reduction in corporate demand and the demand for relocation by consumers are expected to weaken amid the ongoing economic recession.

New acquisitions (including properties we acquired in the current period) As of April 15, 2009

ORIX Nagoya Nishiki Building Acquisition price: ¥12,500 million Acquisition date: September 29, 2008

The property is located in the center of the Fushimi area, and the location boasts outstanding transport convenience, being a two-minute walk from Fushimi Station on the Higashiyama Line and the Tsurumai Line, three minutes from Marunouchi Station on the Sakuradori Line and the Tsurumai Line, and also three minutes to Nagoya Station from neighboring Fushimi Station. In addition, the property fronts Fushimi-dori, which runs from north to south through the center of Nagoya, which gives it a high profile. Moreover, it is a new property with construction completed in January 2007. It boasts a high level of earthquake-proof construction, as well as advanced specifications including individually controlled air conditioning, OA floors, and a 24-hour security system. Each standard pillar-free floor features easy to use rectangular rooms and approximately 200 tsubo of leased area, making the property competitive even in the Fushimi area, which is popular as a business district.

Ichikawa Logistics Center Acquisition price: ¥8,300 million Acquisition date: September 29, 2008

The location is extremely convenient. The property is located in close proximity to expressways, approximately 0.7km from the Wangan-Ichikawa Interchange on the Higashi-Kanto Expressway and approximately 1.5km from the Funabashi Interchange on the Keiyo Road. Air freight can be handled at Haneda Airport and Narita Airport, accessed using major arterial roads such as the Wangan Bayshore Route on the Shuto Expressway and the Keiyo Road, and cargo can be transported through a wide area centered on the Tokyo metropolitan area. In addition, the environment is optimal for logistics operations as the facility can be operated 24 hours a day, it is easy to secure manpower. Moreover, in addition to the prime site, the property boasts new construction just completed in June 2008, including a large logistics facility with multiple floors and a total floor area exceeding 10,000 tsubo (33,000 m2) and a truck berth and office facilities with 5.5m floor height, 10.5m x 10.4m column span and a floor load of 1.5t/ m2. This property is thus extremely versatile, with specifications meeting tenant needs.

ORIX Real Estate Nishi Shinjuku Building

Acquisition price: ¥13,600 million Acquisition date: March 27, 2009

The property is located about two minutes' walk from the municipal Toei Subway Shinjuku Station and about seven minutes' walk from JR Shinjuku Station, giving it outstanding access from Shinjuku Station, which boasts the largest number of passengers in Japan. Moreover, it faces Higashi Dori, which runs north-south through Shinjuku sub-center, giving it a high profile. It is a new property completed in April 2007, and features specifications that include individually controlled air conditioning, raised floors for computer


wiring, a 24-hour security system, and a rectangular room layout with no columns and a leased area of about 180 tsubo.

Omiya Miyacho Building Acquisition price: ¥4,400 million Acquisition date: March 27, 2009

The property is located in an extremely convenient and thriving area that is about five minutes' walk from the east exit of Omiya Station. Amidst a large number of older small-scale office buildings surrounding it, the property stands out as a new building completed in September 2008, and features specifications that include individually controlled air conditioning, raised floors for computer wiring, and a 24-hour security system in addition to the rarity of approximately 150 tsubo of leased area on a standard floor.

Financing activities

[In the 14th Period] OJR is aiming for a strategic approach towards unsecured loans, switching to fixed-interest rate loans,

diversifying repayment periods, and reducing fund procurement cost in line with the monetary environment. As such, the following financing activities were implemented.

Debt Finance: To provide funds to refinance loans nearing the repayment date, OJR took out ¥11,500 million in long

term loans (fixed rate, unsecured) on September 19, 2008 and ¥14,000 million in short term loans (floating rate, unsecured) based on the commitment line on September 22, 2008. In addition, on September 29, 2008, OJR took out ¥6,000 million in short term loans (floating rate, unsecured) based on the commitment line to provide for part of the funds to acquire the ORIX Nagoya Nishiki Building and the Ichikawa Logistics Center. Subsequently, OJR extended

〔Rating agency and Details of ratings〕

and took out new short term loans amounting to ¥20,000 million (floating rate, unsecured) based on the commitment line to provide funds for the refinancing of short term loans on December 22, 2008.

As a result, loans outstanding stood at ¥126,500 million as of February 28, 2009. The interest-bearing debt ratio was 47.9%, the fixed-rate borrowing ratio was 84.2%, the long-term borrowing ratio was 72.3% and the unsecured borrowing ratio was 100.0%.

Rating agency Details of ratings

Standard & Poor’s Long-term corporate credit rating: A- Short-term corporate credit rating: A-2 Outlook: Positive

Rating and Investment Information, Inc. Issuer rating: A+ Rating outlook: Positive

[In the 15th Period (ending August 2009)] Debt Finance:

OJR extended and took out new short term loans amounting to ¥20,000 million (floating rate, unsecured) based on the commitment line to provide funds for the refinancing of short term loans on March 23, 2009.

Financial results and distribution

OJR recorded operating revenues of ¥10,552 million and net income of ¥4,016 million for this particular period ended February 28, 2009.

The distribution per unit was ¥15,963 nearly equal to the unappropriated profit per unit (fractions omitted), so that the distribution in cash can be tax-deductible under Article 67-15 of the Special Taxation Measures Law, which requires a payout ratio of more than 90%.


Fund Overview

1. Capitalization

Paid-in capital

During the 14th period (the six months ended February 2009), OJR carried out no capital increase, and there was thus no change in the number of investment units issued and outstanding, or in the amount of paid-in capital. The following table shows capital increases carried out in previous periods.

Investment Units Outstanding

Paid-in Capital (In millions of yen) Date Remarks

Increase Balance Increase Balance September 18, 2003 Additional Issuance of Units (1) 52,000 175,372 24,121 85,821September 14, 2005 Additional Issuance of Units (2) 47,500 222,872 33,287 119,108October 12, 2005 Third party allotment (3) 2,500 225,372 1,752 120,860October 3, 2007 Additional Issuance of Units (4) 25,000 250,372 16,147 137,007October 30, 2007 Third party allotment (5) 1,250 251,622 807 137,814

Notes:1. First public equity offering of 52,000 new units at ¥480,200 per unit (issue price per unit was ¥463,873) to acquire

properties and repay debt. 2. Second public equity offering of 47,500 new units at ¥725,200 per unit (issue price per unit was ¥700,780) to acquire

properties and repay debt. 3. Along with the public offering of note 2, additional 2,500 units were allocated through private placement at ¥700,780 per

unit. 4. Third public equity offering of 25,000 new units at ¥668,360 per unit (issue price per unit was ¥645,854) to repay debt. 5. Along with the public offering of note 4, additional 1,250 units were allocated through private placement at ¥645,854 per

unit.

Market price of OJR units

OJR’s investment units are traded on the TSE JREIT section. The high and low closing prices per unit for the 14th and 13th periods are shown below in yen:

From September 1, 2008 From March 1, 2008 to February 28, 2009 to August 31, 2008

High 599,000 680,000 Low 280,700 510,000


Overview of borrowings In millions of yen

The Sumitomo Trust and Banking Company, Limited － 5,037

Mitsubishi UFJ Trust and Banking Corporation － 5,037

Sumitomo Mitsui Banking Corporation － 4,407

Mizuho Corporate Bank, Ltd. ー 2,519

Subtotal ー 17,000

The Sumitomo Trust and Banking Company, Limited －－

Mitsubishi UFJ Trust and Banking Corporation －－

Sumitomo Mitsui Banking Corporation －－

Mizuho Corporate Bank, Ltd. －－

Subtotal －－

The Sumitomo Trust and Banking Company, Limited －－

Mitsubishi UFJ Trust and Banking Corporation －－

Sumitomo Mitsui Banking Corporation －－

Mizuho Corporate Bank, Ltd. －－

Subtotal －－

The Sumitomo Trust and Banking Company, Limited 5,926 －

Mitsubishi UFJ Trust and Banking Corporation 5,926 －

Sumitomo Mitsui Banking Corporation 5,185 －

Mizuho Corporate Bank, Ltd. 2,963 －

Subtotal 20,000 －

20,000 17,000

The Sumitomo Trust and Banking Company, Limited － 1,750

Mitsubishi UFJ Trust and Banking Corporation － 2,150

The Norinchukin Bank － 1,250

Sumitomo Mitsui Banking Corporation － 1,000

Sompo Japan Insurance Inc. － 500

The Chiba Bank, Ltd. － 500

Tokio Marine & Nichido Fire Insurance Co., Ltd. － 500

The Hachijuni Bank, Ltd. － 500

Mizuho Trust & Banking Co., Ltd. － 500

Subtotal － 8,650

The Sumitomo Trust and Banking Company, Limited 4,000 4,000

National Mutual Insurance Federation of AgriculturalCooperatives

3,000 3,000

THE BANK OF FUKUOKA, LTD. 3,000 3,000

The Shinkumi Federation Bank 2,000 2,000

The Hyakugo Bank, Ltd. 1,000 1,000

Aioi Insurance Company, Limited 500 500

The Toho Bank, Ltd. 500 500

THE DAI-ICHI MUTUAL LIFE INSURANCECOMPANY

500 500

NIPPONKOA Insurance Company, Limited 500 500

Subtotal 15,000 15,000

Short-term debtFloating rate1.31750%

(2)

March23, 2009

(3)Bullet

payment

Un-Secured, Non-guaranteed,

Pari passu

Secured,Non-guaranteed,

Pari passu

Fixed rate1.09000%

(2)

Un-secured,Non-guaranteed,

Pari passu

(3)

Bulletpayment

(4)(5)

(3)Bullet

payment(5)

Un-Secured,Non-guaranteed,

Pari passu

Floating rate1.25108%

(2)

December22, 2008

(3)

Bulletpayment

December22, 2008

Bulletpayment


Pari passu

(3)

Fixed rate1.84646%

(2)

September20, 2008

(4)(5)

Long-term debt(term loan 3)（9）

Long-term debt(term loan 4)

September24, 2009

(5)

Repaymentmethod

Note

Short-term debt total

Balance atthe period end

Average interestrate （％）（1）

Short-term debt(6)


(2)

Due on

Bulletpayment


Pari passu

Use offunds


(2)

Lender

September22, 2008

(3)

Category

Short-term debt(8)

Short-term debt(7)

Balance atbeginning of the period


Mitsubishi UFJ Trust and Banking Corporation 1,000 1,000

Sumitomo Mitsui Banking Corporation 4,200 4,200

Tokio Marine & Nichido Fire Insurance Co., Ltd. 2,500 2,500

Mizuho Corporate Bank, Ltd. 1,800 1,800

Sompo Japan Insurance Inc. 1,000 1,000

The Shinkumi Federation Bank 1,000 1,000

Subtotal 14,000 14,000

(3)Bullet

payment(5)


Fixed rate1.44663%

(2)

March19, 2010

(5)


Pari passu


In millions of yen

Notes:1. The average interest rate is the weighted-average one based on debt amounts at the end of the period. The average interest rate relating

to the debt hedged by an interest rate swap for the purpose of avoiding interest rate volatility risk is the weighted-average interest rate after reflecting the effect of the relevant interest rate swap.

2. Same terms and conditions, including interest rates and maturities, apply to each lender of each debt category. 3. All borrowings have been used to finance the acquisitions of real estate and real estate held in trust, or to refinance other debts. 4. Maturity dates are followed by two years of tail period, during which the interest rates applied to the remaining period will increase by 2%. 5. The following table shows the total amounts of long-term debt to be repaid for each year:

(In millions of yen)

Due within one year Due after one to two years

Due after two to three years

Due after three to four years

Due after four to five years

Long-termdebt

15,000 21,500 32,000 28,000 10,000

6. OJR fully repaid short-term debt of ¥17,000 million on September 22, 2008. 7. OJR fully repaid short-term debt of ¥14,000 million on December 22, 2008. 8. OJR fully repaid short-term debt of ¥6,000 million on December 22, 2008. 9. OJR fully repaid long-term debt of ¥8,650 million (term loan 3) on September 22, 2008.




Mizuho Corporate Bank, Ltd. 1,000 －

Subtotal 6,500 －

Long-term debt THE SHIZUOKA BANK, LTD. 1,000 1,000Fixed rate1.51500%

November5, 2010

(5)(3)

Bulletpayment

(5)


Pari passu



Resona Bank, Limited. 2,300 2,300


MITSUI LIFE INSURANCE COMPANY LIMITED 1,400 1,400

The Chiba Bank, Ltd. 1,400 1,400

The Hyakugo Bank, Ltd. 1,000 1,000

Aozora Bank, Ltd. 1,000 1,000

TAIYO LIFE INSURANCE COMPANY 1,000 1,000

Subtotal 17,000 17,000




Mizuho Corporate Bank, Ltd. 3,000 3,000

Subtotal 15,000 15,000



Subtotal 11,500 11,500


The Norinchukin Bank 8,500 8,500Fixed rate1.78543%

March19, 2012

(5)(3)

Bulletpayment

(5)


Pari passu




Subtotal 5,000 －

3,000 3,000Fixed rate1.39875%

September20, 2012

(5)(3)

Bulletpayment

(5)


Pari passu

7,000 7,000Fixed rate2.19625%

April26, 2013

(5)(3)

Bulletpayment

(5)


Pari passu

Long-term debt Development Bank of Japan 3,000 3,000Fixed rate1.94223%

July31, 2013

(5)(3)

Bulletpayment

(5)


Pari passu

106,500 103,650

126,500 120,650

Balance atthe period end

Balance atbeginning of the period

Grand total of short-term and long-term debt

Long-term debt total

National Mutual Insurance Federation of AgriculturalCooperatives

Fixed rate1.99541%

(2)

Fixed rate1.78543%

(2)

Long-term debt




Fixed rate1.84365%

(2)


Pari passu

Bulletpayment

(5)


Pari passu


Pari passu

Bulletpayment

(5)


Pari passu

March19, 2012

(5)

April27, 2011

(5)(3)

Bulletpayment

(5)

(3)

Bulletpayment

(5)

Category LenderUse offunds

Repaymentmethod

Note


Fixed rate1.83429%

(2)

June27, 2011

(5)(3)

Average interestrate（％）（1）

Due on

September19, 2012

(5)(3)

Bulletpayment

(5)


Pari passu


Fixed rate1.54438%

(2)

September21, 2010

(5)(3)


2. Major unitholders (As of February 28, 2009)

Name Address Number of

UnitsOwned

Ownership(%)

NikkoCiti Trust and Banking Corporation (Investment accounts)

Citigroup Center, 3-14, Higashishinagawa 2-chome, Shinagawa-ku, Tokyo

20,939 8.32

Japan Trustee Services Bank, Ltd. (Trust accounts)

8-11, Harumi 1-chome, Chuo-ku, Tokyo

17,248 6.85

Trust & Custody Services Bank, Ltd. (Securities investment trust accounts)

Harumi Island Triton Square Offices Tower Z Building, 8-12, Harumi 1-chome, Chuo-ku, Tokyo

16,893 6.71

The Master Trust Bank of Japan, Ltd. (Trust accounts)

11-3, Hamamatsucho 2-chome, Minato-ku, Tokyo

12,000 4.76

State Street Bank and Trust Company P. O. BOX 351 Boston Massachusetts 02101 U. S. A

9,784 3.88

ORIX Life Insurance Corporation Shinjuku Monorisu, 3-1, Nishishinjuku 2-chome, Shinjuku-ku, Tokyo

6,866 2.72

The Nomura Trust and Banking Co., Ltd. (Investment accounts)

2-2, Otemachi 2-chome, Chiyoda-ku, Tokyo

6,129 2.43

AIG Star Life Insurance Co., Ltd. General account

1-3, Taihei 4-chome, Sumida-ku, Tokyo

5,656 2.24

National Mutual Insurance federation of Agricultural Cooperatives

7-9, Hirakawacho 2-chome, Chiyoda-ku, Tokyo

3,901 1.55

American Life Insurance Company GAL 1-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo

3,755 1.49

Total 103,171 41.00Note: Ratio of ownership, rounded down to the second decimal place, may not add up to totals due to rounding.

3. Unitholder Type(As of February 28, 2009)

Unitholder type Number ofUnitholders

%Number of

Units%

Domestic 15,355 98.59 182,498 72.53

Individuals and Others 15,024 96.47 39,662 15.76

Financial Institutions 107 0.69 136,906 54.41

Bank 25 0.16 22,343 8.88

Trust Bank 13 0.08 75,730 30.10

Life Insurance 9 0.06 20,751 8.25

Fire and Marine Insurance 3 0.02 5,781 2.30

Other Financial 31 0.20 7,729 3.07

Securities Brokers 26 0.17 4,572 1.82

Other Corporate 224 1.44 5,930 2.36

Overseas 219 1.41 69,124 27.47

Total 15,574 100.00 251,622 100.00Note: Individual ratio, rounded to the second decimal place, may not add up to totals due to rounding.


Portfolio Overview

1. Portfolio Summary As of February 28, 2009

Asset Type Area / Type Amount(1)

（In millions of yen）Percentage of total

assets(2) (%) Offices 89,666 31.32Logistics Facilities －－Retail Facilities 2,527 0.88Hotels －－


Others 1,134 0.40Offices 81,929 28.62Logistics Facilities －－Retail Facilities 2,485 0.87Hotels －－


Others 2,544 0.89Offices 6,102 2.13Logistics Facilities 21,958 7.67Retail Facilities －－Hotels 12,616 4.41


Others －－Offices 40,844 14.27Logistics Facilities －－Retail Facilities －－Hotels －－

Real Estate

Other Areas

Others －－Deposits and Other Assets 24,477 8.55Total Assets 286,282 100.00

Notes:1. Amounts are the book values as of the end of February 2009, after subtracting the accumulated depreciation. The amounts

include the book value of property accounted for as investment in finance lease. 2. Percentage of total assets is rounded to the second decimal place. Individual numbers may not add up to 100% due to

rounding.


2. Selected Property Data (As of February 28, 2009)

Notes: 1. Tanizawa Sogo Appraisal Co., Ltd., Chuo Real Estate Appraisal Co., Ltd., Morii Appraisal & Investment Consulting, Inc., JAPAN REAL

ESTATE INSTITUTE and HIRO & REAS network, Inc. conducted appraisals. 2. Share in appraisal value and share in book value rounded to the second decimal place, may not add up to total amount due to rounding. 3. Individual figures for shares in book value do not add up to 100%, since book value represents total assets as of February 28, 2009 (¥286,282

million) which include those other than property.

Area Property NameTotal Rentable

Area (㎡)Appraisal Value(1)


Share in Appraisal

Value(2) (%)Book Value

(In millions of yen)Share in Book

Value(2)(3) (%)

Aoyama Suncrest Building 2,768.55 4,600 1.59 3,389 1.18Round-Cross Ichi-bancho 3,300.66 4,630 1.60 3,621 1.26Beside Shirogane 2,089.41 1,420 0.49 1,310 0.46Round-Cross Akasaka Mitsuke 1,324.27 2,390 0.83 1,671 0.58Nihonbashi East Building 2,270.04 1,610 0.56 1,627 0.57Round-Cross Minami Azabu 3,172.76 1,441 0.50 1,310 0.46Round-Cross Akasaka 2,785.45 3,081 1.07 2,862 1.00Round-Cross Mita 2,298.23 1,633 0.56 1,710 0.60Shiba Daimon Building 2,588.50 2,157 0.75 2,197 0.77Round-Cross Tsukiji 3,997.45 3,712 1.28 3,221 1.13ORIX Jimbo-cho Building 3,211.50 4,328 1.50 4,032 1.41ORIX Shiba 2-chome Building 6,753.13 9,025 3.12 7,020 2.45Aoyama 246 Building 2,406.22 7,680 2.66 5,472 1.91ORIX Akasaka 2-chome Building 10,336.33 26,680 9.22 21,559 7.53Nihonbashi Honcho 1-chome Building 5,099.70 9,630 3.33 10,395 3.63ORIX Suidobashi Building 2,087.65 2,510 0.87 3,008 1.05ORIX Shinagawa Building 5,618.88 13,000 4.49 15,262 5.33Subtotal 62,108.73 99,527 34.41 89,666 31.32Carrot Tower 6,939.10 6,070 2.10 4,680 1.63Toyo MK Building 9,814.55 5,150 1.78 4,578 1.60Round-Cross Moto Yoyogi 7,723.68 5,320 1.84 4,573 1.60Round-Cross Nishi Shinjuku 1,238.58 2,820 0.98 2,564 0.90Beside Kiba 4,824.54 3,180 1.10 2,289 0.80DT Gaien 2,567.50 3,080 1.06 2,320 0.81Yoyogi Forest Building 1,910.89 1,380 0.48 1,468 0.51ORIX Ikebukuro Building 5,539.92 10,620 3.67 9,031 3.15ORIX Shinjuku Building 6,135.28 11,840 4.09 7,961 2.78Round-Cross Shinjuku 4,736.17 10,200 3.53 7,969 2.78Seafort Square Center Building 21,998.79 17,930 6.20 17,765 6.21Round-Cross Kamata 7,899.94 6,259 2.16 5,613 1.96Round-Cross Shinjuku 5-chome 3,089.29 4,520 1.56 4,428 1.55KN Jiyugaoka Plaza 1,231.44 3,090 1.07 3,180 1.11ST WORLD Building 1,550.86 3,330 1.15 3,510 1.23Subtotal 87,200.53 94,789 32.77 81,929 28.62Neo City Mitaka 4,622.21 3,060 1.06 2,035 0.71Round-Cross Kawasaki 5,519.29 5,434 1.88 4,067 1.42Subtotal 10,141.50 8,494 2.94 6,102 2.13Nagoya Itochu Building 11,204.85 5,860 2.03 5,201 1.82ORIX Koraibashi Building 6,859.76 6,472 2.24 5,251 1.83ORE Nagoya Fushimi Building 12,216.13 10,680 3.69 9,470 3.31Lunar Sendai 9,954.81 6,520 2.25 8,374 2.93ORIX Nagoya Nishiki Building 10,261.84 10,800 3.73 12,548 4.38Subtotal 50,497.39 40,332 13.95 40,844 14.27Offices Total 209,948.15 243,142 84.07 218,541 76.34Koshigaya Logistics Center 19,200.00 3,530 1.22 3,897 1.36Toda Logistics Center 36,158.60 9,400 3.25 9,651 3.37Ichikawa Logistics Center 37,456.96 8,040 2.78 8,410 2.94Subtotal 92,815.56 20,970 7.25 21,958 7.67Logistics Facilities Total 92,815.56 20,970 7.25 21,958 7.67Nihon Jisho Minami Aoyama Building 985.36 3,400 1.18 2,527 0.88Subtotal 985.36 3,400 1.18 2,527 0.88CUBE Daikanyama 899.82 2,522 0.87 2,485 0.87Subtotal 899.82 2,522 0.87 2,485 0.87Retail Facilities Total 1,885.18 5,922 2.05 5,012 1.75

Cross Gate 25,942.59 15,700 5.43 12,616 4.41

Subtotal 25,942.59 15,700 5.43 12,616 4.41

Hotels Total 25,942.59 15,700 5.43 12,616 4.41Park Axis Nishi Azabu Stage 1,337.31 1,040 0.36 1,134 0.40Subtotal 1,337.31 1,040 0.36 1,134 0.40Grand Maison Hakusan 1,160.17 422 0.15 418 0.15Sonet Kami Ikebukuro 5,853.00 2,020 0.70 2,126 0.74Subtotal 7,013.17 2,442 0.84 2,544 0.89Others Total 8,350.48 3,482 1.20 3,678 1.28Grand Total 338,941.96 289,216 100.00 261,805 91.45

3 CentralTokyo Wards

Oth

ers

Other Parts ofthe GreaterTokyo Area


Off

ices


RemainingTokyo Wards




Other Areas

Log

istic

sFa

cilit

ies

Hot

els

RemainingTokyo WardsR

etai

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cilit

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4. The table shown above includes figures for property accounted for as investment in finance lease. Also, the book value includes the amount of investment in finance lease recorded on the balance sheet.

3. Selected Financial Data by Property(For the period ended February 28, 2009)

Notes:1. Number of tenants and occupancy rate are as of February 28, 2009. 2. Occupancy rate and share in revenue, rounded to the first decimal place, may not add up to totals due to rounding. 3. The number of tenants is either one or two, or over 80% of revenue for any relevant property is derived from a limited number of

specific tenants. Because of the confidentiality of the contractual terms, OJR does not disclose the revenue from operations of these properties unless agreement to such disclosures has been specifically received from the tenant.

Area Property Name Number of Tenants(1) Occupancy Rate(1)(2)

(%)

Revenue(In millions of yen)

Share in Revenue(2)

(%)

Aoyama Suncrest Building 5 100.0 166 1.6Round-Cross Ichi-bancho 6 100.0 162 1.6Beside Shirogane 13 88.7 54 0.5Round-Cross Akasaka Mitsuke 10 100.0 70 0.7Nihonbashi East Building 5 100.0 71 0.7Round-Cross Minami Azabu 4 83.8 63 0.6Round-Cross Akasaka 11 80.7 122 1.2Round-Cross Mita 2 98.0 -(3) -(3)

Shiba Daimon Building 1 100.0 -(3) -(3)

Round-Cross Tsukiji 8 97.3 155 1.5ORIX Jimbo-cho Building 3 100.0 166 1.6ORIX Shiba 2-chome Building 4 100.0 325 3.1Aoyama 246 Building 9 100.0 208 2.0ORIX Akasaka 2-chome Building 10 98.1 698 6.8Nihonbashi Honcho 1-chome Building 3 100.0 249 2.4ORIX Suidobashi Building 1 100.0 -(3) -(3)

ORIX Shinagawa Building 7 100.0 360 3.5Subtotal 102 97.4 3,110 30.1Carrot Tower 6 92.1 266 2.6Toyo MK Building 10 100.0 257 2.5Round-Cross Moto Yoyogi 1 95.6 -(3) -(3)

Round-Cross Nishi Shinjuku 8 83.0 76 0.7Beside Kiba 3 100.0 140 1.4DT Gaien 5 100.0 118 1.1Yoyogi Forest Building 11 91.3 55 0.5ORIX Ikebukuro Building 3 100.0 348 3.4ORIX Shinjuku Building 8 87.8 328 3.2Round-Cross Shinjuku 7 100.0 308 3.0Seafort Square Center Building 35 90.4 895 8.7Round-Cross Kamata 4 90.8 227 2.2Round-Cross Shinjuku 5-chome 6 81.1 135 1.3KN Jiyugaoka Plaza 5 100.0 87 0.8ST WORLD Building 1 100.0 -(3) -(3)

Subtotal 113 93.8 -(3) -(3)

Neo City Mitaka 6 100.0 163 1.6Round-Cross Kawasaki 10 100.0 221 2.1Subtotal 16 100.0 384 3.7Nagoya Itochu Building 8 100.0 -(3) -(3)

Round-Cross Shinsaibashi - - 70 0.7ORIX Koraibashi Building 12 96.6 232 2.2ORE Nagoya Fushimi Building 6 100.0 403 3.9Lunar Sendai 33 88.1 259 2.5ORIX Nagoya Nishiki Building 10 96.8 317 3.1Subtotal 69 96.5 -(3) -(3)

Offices Total 300 95.8 8,586 83.1Koshigaya Logistics Center 1 100.0 -(3) -(3)

Toda Logistics Center 1 100.0 -(3) -(3)

Ichikawa Logistics Center 1 100.0 -(3) -(3)

Subtotal 3 100.0 -(3) -(3)

Logistics Facilities Total 3 100.0 -(3) -(3)

Nihon Jisho Minami Aoyama Building 1 100.0 -(3) -(3)

Subtotal 1 100.0 -(3) -(3)

CUBE Daikanyama 3 100.0 71 0.7Subtotal 3 100.0 71 0.7Retail Facilities Total 4 100.0 -(3) -(3)

Cross Gate 15 99.7 857 8.3

Subtotal 15 99.7 857 8.3

Hotels Total 15 99.7 857 8.3Park Axis Nishi Azabu Stage 1 100.0 -(3) -(3)

Subtotal 1 100.0 -(3) -(3)

Grand Maison Hakusan 1 100.0 -(3) -(3)

Sonet Kami Ikebukuro 1 100.0 -(3) -(3)

Subtotal 2 100.0 -(3) -(3)

Others Total 3 100.0 150 1.5Grand Total 325 97.4 10,333 100.0

Oth

ers




Log

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sFa

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Hot

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Ret

ail

Faci

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Off

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Other Areas


4. Major Tenants

According to JREIT regulations, OJR is required to disclose information about tenants who lease more than 10% of total rentable areas of the fund’s portfolio. As of the end of the 14th fiscal period (at the end of February 2009), SENKO Co., Ltd. and Keiyo Distribution Warehouse Co., Ltd., were the companies subject to this requirement.

Name of Tenant SENKO Co., Ltd. Industry Transportation, warehousing, and international logistics business, etc. Property Ichikawa Logistics Center Contract Rent (1) Rented Space 37,456.96Share in Total Rented Space 11.3% Expiry Date July 31, 2018 Method for Renewal of Rent Fixed term lease agreement for building (covering the period of ten years and

one month). There is no renewal. However, after this agreement expires, if lessor and lessee agree, both parties can separately conclude a new lease contract.

Special Note Revision of the rent shall be discussed every five years from the start of the lease. In principle, a midterm cancellation shall not be allowed. Senko Co., Ltd., can sublease wholly or partially this property to a third party or make them use it, subject to a prior written notice to lessor. As of February 28, 2009, this property is subleased to one tenant. (1)

Name of Tenant Keiyo Distribution Warehouse Co., Ltd. Industry Development and sales of logistics system, warehousing business, and

warehouse leasing. Property Toda Logistics Center Contract Rent (1) Rented Space 36,158.60Share in Total Rented Space 11.0% Expiry Date March 9, 2025 Method for Renewal of Rent Fixed term lease agreement for building (twenty-year term). There is no

renewal. However, after this agreement expires, if lessor and lessee agree, both parties can separately conclude a new lease contract.

Special Note Revision of the rent shall be discussed every five years from the start of the lease. In principle, a midterm cancellation shall not be allowed. Keiyo Distribution Warehouse Co., Ltd. can sublease this property or allow the property to be used by a third party at their own responsibility. As of February 28, 2009, this property was not subleased nor used by a third party.

Notes:1. OJR does not have the tenant’s approval to disclose its contract rent in this report.


The following list shows the ten largest tenants in terms of rented area as of February 28, 2009. Share in total rented space is calculated based on the areas that OJR owns.

Name of Tenant Property Expiry Date(1) Rented Space(2)

( )

Share in Total Rented Space (2)

(%)

1 SENKO Co., Ltd. Ichikawa Logistics Center July 31, 2018 37,456.96 11.3

2Keiyo Distribution Warehouse Co., Ltd.

Toda Logistics Center March 9, 2025 36,158.60 11.0

3 Fujita Kanko Co., Ltd. Cross Gate September 30, 2020 19,744.39 6.04 (3) 19,200.00 5.85 ITOCHU Corporation Nagoya Itochu Building March 31, 2009 9,200.22 2.8

6 NIKE JAPAN CORP.Seafort Square Center Building

May 31, 2011 8,832.49 2.7

7FUJITSU CHUBU SYSTEMS LIMITED

ORE Nagoya Fushimi Building

April 30, 2009 7,466.70 2.3

8 (3) 7,387.13 2.2

9 (3) 6,245.34 1.9

10Housing Kosan Co., Ltd.

(4) Sonet Kami Ikebukuro October 31, 2010 5,853.00 1.8

Total 157,544.83 47.7Notes:1. In cases where more than one lease contract has been concluded with a tenant, the date shown in expiry date is for the lease

contract with the earliest expiry date. 2. Rented space and total rented space refer to contracted floor area, which is generally the actual floor size, as opposed to the

registered size in the Japanese registry system. Share in total rented space is rounded to one decimal place. Individual numbersmay not add up to total amount due to rounding.

3. OJR does not have the tenant’s approval to disclose its name in this report. 4. Housing Kosan Co., Ltd. is entitled to sublease the property only if sub-lessees use the property for residential purposes. As a

sub-lessor, Housing Kosan Co., Ltd. may determine sublease conditions at its discretion.

Capital Expenditure

1. Projects – 15th Period Onward

The following table shows the capital expenditure projects that are currently planned. Estimated amounts include costs that may be recognized as expenses. OJR intends to continue providing such capital improvements to improve tenant satisfaction and to enhance its portfolio competitiveness and property value.

Estimated Amount In millions of yenProperty Location

Project Estimated Period Total Amount

Payment due in 14th period

Alreadypaid

Amount

Aoyama Suncrest Building (Minato-ku, Tokyo)

Total renovation From February 2008 to April 2009

190 100 139

DT Gaien (Shibuya-ku, Tokyo)

Renewal of air conditioner

From June 2008 to November 2009

75 35

Seafort Square Center Building(Shinagawa-ku, Tokyo)

Renewal of central monitoring facility

From July 2008 to March 2009

37

Neo City Mitaka (Mitaka City, Tokyo)

Renewal of air conditioner

From September 2009 to September 2009

70


2. Results – 14th Period

Total amount of capital expenditures in the 14th period was ¥69 million and major projects are summarized below. Combined with the repair costs of ¥112 million, total cost for capital improvements (repair cost and capital expenditures) during the 14th period is ¥181 million.

Property Location

Project Period Amount

In millions of yen

Lunar Sendai (Sendai City, Miyagi)

Interior refurbishing of common use space

From September 2008 to December 2008

19

Other Capital Expenditures 50

Grand Total 69

3. Cash Reserve for Capital Improvements

Based on its property-specific medium to long-term repair plans, OJR maintains a cash reserve for capital improvements from its cash flow. The following table shows the summary of cash reserves at the end of the 14th and 13th periods. In millions of yen

For the period ended February 28, 2009

For the period ended August 31, 2008

Balance at the beginning 1,408 1,211 Amount reserved 0,300 0,349

Amount withdrawn 0,507 0,152 Amount carried forward 1,201 1,408

Note:In addition to the above reserve, OJR set aside ¥381 million as of February 28, 2009 as reserve for repair work to properties that OJR owns in compartmentalized ownership interests. The amount was included in “Others” in “Other assets” on the balance sheet as of February 28, 2009. Such reserves are generally required in pursuant to the management regulation of the owners’ associations.

Administrative Expenses

The following table shows the breakdown of fees and expenses paid to the asset manager (ORIX Asset Management Corporation), the asset custodian (The Sumitomo Trust & Banking Co., Ltd.), and others such as for their administrative services.

In millions of yen

Item For the period ended February 28, 2009

For the period ended August 31, 2008

Asset management fees 632 567 Asset custody fees 34 34

Agent fees 124 131 Officers’ fees 010 010 Auditors’ fees 013 012 Other expenses 093 079

Total 906 833 Note:Above figures do not include the acquisition fee of ¥104 million for the 14th period and ¥157 million for the 13th period and the sale fee of ¥73 million for the 14th period that were paid to ORIX Asset Management. The acquisition fee has been capitalized as part of acquisition costs and the sale fee was netted against gains on sale of real estate properties.


Transaction Activities during Current Period

1. Real Estate and Real Estate Held in Trust In millions of yen

Acquisition

Property Date Price ORIX Nagoya Nishiki Building September 29, 2008 12,500

Ichikawa Logistics Center September 29, 2008 08,300 Total 20,800

Sale

Property Date Price Round-Cross Shinsaibashi September 25, 2008 14,500

Total 14,500

Note: Acquisition and sale prices do not include transaction costs such as brokerage fees and taxes.

2. Other Assets

Except for real estate and real estate held in trust stated above, there is no significant acquisition or sale of other assets. Other major assets consist mostly of ordinary bank deposits.

3. Transactions with Related-Parties and Major Shareholders

Transactions

Amount of Purchase Price etc. Category

Purchase Price, etc. (In millions of yen) Sale Price, etc. (In millions of yen) 20,800 (100.0%) 014,500 (100.0%)

Amount of purchases

from related parties and major shareholdersAmount of sales

of related parties and major shareholdersTotal Amount

20,800 (100.0%) 014,500 (100.0%)Breakdown of transactions with related parties and major shareholders

ORIX Real Estate Corporation 20,800 (100.0%) － (－%)

Shinsaibashi Realty, LLC － (－%) 14,500 (100.0%)

Total 20,800 (100.0%) 14,500 (100.0%)Note: 1. Figures in parentheses indicate percentages of total purchase prices and sale prices respectively. 2. Of the amount paid to related-parties and major shareholders, the amount of ¥14 million, which is the equivalent of the

amount paid in property tax and city planning tax for the year of acquisition, is not included in the recorded purchase price and the amounts in the breakdown of transactions with related parties and major shareholders. Additionally, the amount of ¥29 million, which is the equivalent of the amount received in property tax and city planning tax for the year of sale, is not included in the recorded sale price and the amounts in the breakdown of transactions with related parties and major shareholders.


Commissions paid

Description of Transactions with Related Parties and Major Shareholders (1)

Item (A)

Total Amount (In millions of yen) Paid to

(B)Amount

(In millions of yen)(B)/(A)

ORIX Corporation 004 00.5%ORIX Facilities Corporation 179 27.3%Property maintenance fees 657 Seafort Community Co., Inc. 045 06.9%

Property management fees (2) (3) 221 ORIX Facilities Corporation 004 02.0%

Notes:

1. “Related Parties” and “Major Shareholders” refer to (i) the related parties of asset management companies under asset management agreement with OJR, as defined in “the Law Concerning Investment Trust and Investment Corporation, Article 201, Section 1” and “Order for Enforcement of the Law Concerning Investment Trust and Investment Corporation, Article 123,” and (ii) the major shareholders of asset management companies, as defined in “the Financial Instruments and Exchange Law, Article 29, Section 4, Paragraph 2.” In the 14th period, they are ORIX Corporation, ORIX Facilities Corporation and Seafort Community Co., Inc. The above is record of payment of commission etc., to them.

2. Amount paid to ORIX Facilities Corporation is the commission for real estate management subcontracted by ORIX Asset Management Corporation to ORIX Facilities Corporation, based on the real estate management contract between OJR and ORIX Asset Management.

3. Amounts paid to related-parties other than those listed above such as for repairs were as follows. ORIX Facilities Corporation ¥33 million (repairs) Tennouzu Area Service Co., Inc. ¥90 million (utility charges)


Financial Statements

Independent Auditors’ Report

Balance Sheets

Statements of Income

Statements of Unitholders’ Equity

Statements of Cash Flows

Notes to Financial Statements



The accompanying notes to financial statements are an integral part of these balance sheets.

The accompanying notes to financial statements are an integral part of these statements.

23,218 22,090327 42823 317

6 83,715 －

64 6236 27(6) (5)

Total current assets 27,383 22,927

162,999 162,82180,343 78,37127,271 26,8082,388 2,244

134 34273,135 270,278(15,754) (14,297)

Net property and equipment 257,381 255,981

843 843 Others 675 660

Total assets 286,282 280,411

866 90620,000 17,00015,000 8,650

391 3591,584 1,618

371 25Total current liabilities 38,212 28,558

91,500 95,00014,739 15,221

Total liabilities 144,451 138,779

137,814 137,814

4,017 3,818Total net assets 141,831 141,632Total liabilities and net assets 286,282 280,411


Non-current liabilities:

ORIX JREIT Inc.BALANCE SHEETS

As of February 28, 2009 and August 31, 2008

August 31, 2008As of As of

February 28, 2009

Other current liabilities

Current liabilities:

Rents received in advance

Short-term debt (Note 5) Trade and other payables

Accrued expenses Long-term debt due within one year (Notes 4, 5)

Retained earnings

Leasehold and security deposits received

Unitholders' capital

Long-term debt (Note 5)

Net assets (Notes 6, 8)

Units authorized: 2,000,000 units Units issued and outstanding: 251,622 units

Liabilities

Less: Accumulated depreciation

Building improvements (Note 4)

Leasehold interestsOther assets:

Liabilities and Net assets

Property and equipment, at cost:

Buildings and structures (Note 4)

Construction in progress Machinery and equipment

Land (Note 4)

Current assets:Assets

Less: Allowance for doubtful receivables

Cash and deposits (Notes 3, 4) Rental receivables

Prepaid expenses

Consumption tax refundable Income taxes refundable

Other current assets (Note 7)

Investment in finance lease (Note 12)



Operating revenues: Rental revenues (Note 10) 9,210 8,819 Other operating revenues (Note 10) 1,123 1,234

189 － Total operating revenues 10,522 10,053Operating expenses: Property-related expenses (Note 10) 4,577 4,506 Asset management fees 632 567 Administrative service fees 158 165 Other expenses 116 101 Total operating expenses 5,483 5,339 Operating income 5,039 4,714 Interest income 49 41 Interest expense (1,014) (878) Other expenses, net (57) (58)Ordinary income 4,017 3,819Income before income taxes 4,017 3,819 Provision for income taxes (Note 7) 1 1Net income 4,016 3,818

February 28, 2009

Earnings per unit (Note 6) Net income (In yen) 15,962 15,174 Weighted average number of units outstanding 251,622 251,622

For the six months endedFebruary 28, 2009

For the six months endedAugust 31, 2008

ORIX JREIT Inc.STATEMENTS OF INCOME


August 31, 2008

For the six months ended February 28, 2009 and August 31, 2008

Gains on sale of real estate properties (Note 11)



Unitholders' capital:Balance at the end of the previous period 137,814 137,814Changes during the period:

Total changes during the period －－Balance at the end of the period 137,814 137,814

Retained earnings:Balance at the end of the previous period 3,818 4,085Changes during the period:

Cash dividends declared (3,817) (4,085)Net income 4,016 3,818Total changes during the period 199 (267)

Balance at the end of the period 4,017 3,818

Total unitholders' equity:Balance at the end of the previous period 141,632 141,899Changes during the period:

Cash dividends declared (3,817) (4,085)Net income 4,016 3,818Total changes during the period 199 (267)

Balance at the end of the period 141,831 141,632

Number of units:Balance at the end of the previous period 251,622 251,622Changes during the period:

Total changes during the period －－Balance at the end of the period 251,622 251,622

February 28, 2009 August 31, 2008


ORIX JREIT Inc.STATEMENTS OF UNITHOLDERS' EQUITY

For the six months ended


February 28, 2009 August 31, 2008For the six months ended



4,017 3,819

1,875 1,77351 431 －

(49) (41)1,014 878

5 14

101 (115)294 (317)－ (358)

(3,715) －(2) 4

(50) (64)14,191 －

－ 1(140) 43

(34) 142(50) (23)

Subtotal 21,327 5,79937 42

(983) (807)8 6

(8) (8)20,381 5,032

(1,202) (1,246)1,246 1,079

(21,193) (31,933)1,342 1,395

(1,422) (400)(17) (26)

(21,246) (31,131)

40,000 77,300(37,000) (64,300)11,500 18,000(8,650) －(3,813) (4,081)2,037 26,9191,172 820

20,844 20,02422,016 20,844

Withdrawal from reserve for repairs and maintenance

Cash refunds of income taxes

Others, netNet cash used in investing activities

Loss on disposal of property and equipment

Prepaid expenses

Consumption tax refundableConsumption tax payableIncrease in investment in finance lease

Interest income

Cash Flows from Investing Activities:

Others, net

Decrease in property and equipment due to sale

Trade and other payables

to investment in finance leaseTransfer from property and equipment


Cash Flows from Operating Activities:

Allowance for doubtful receivables

Income before income taxesAdjustments to reconcile income before income taxes to net cash provided by operating activities:

DepreciationAmortization of long-term prepaid expenses

February 28, 2009For the six months ended

August 31, 2008

ORIX JREIT Inc.STATEMENTS OF CASH FLOWS


Cash and cash equivalents at end of period (Note 3)

Net change in cash and cash equivalents

Payment of dividends

Cash Flows from Financing Activities:

Cash and cash equivalents at beginning of period

Proceeds from short-term debt

Net cash provided by financing activities

Repayments of short-term debtProceeds from long-term debtRepayments of long-term debt

Cash payments of income taxes

Payments of long-term prepaid expenses

Interest expense

Changes in assets and liabilities:Rental receivables

Cash proceeds from interest incomeCash payments of interest expense

3,818 －

Repayments of leasehold and security deposits

Net cash provided by operating activities

Proceeds from leasehold and security deposits

Proceeds from maturity of time depositsPurchases of property and equipment

Payments for investing in time deposits

Rents received in advance


Notes to Financial Statements


1. Organization

ORIX JREIT Inc. (“OJR”), a Japanese real estate investment corporation, was established on September 10, 2001, with ¥200 million of capital contribution by ORIX Corporation, under the Law Concerning Investment Trusts and Investment Corporations of Japan, or the Investment Trust Law. OJR was formed to invest primarily in real estate in Japan. On June 12, 2002, OJR was listed on the Tokyo Stock Exchange’s JREIT (Real Estate Investment Trust in Japan) section as the fourth listed JREIT. OJR is the first diversified type listed JREIT that invests in offices, logistics facilities, retail facilities, hotels and other categories of properties.

In its 14th period, OJR sold Round-Cross Shinsaibashi (sales price: ¥14,500 million) and acquired the ORIX Nagoya Nishiki Building (acquisition price: ¥12,500 million) and the Ichikawa Logistics Center (acquisition price: ¥8,300 million). As a result, OJR’s portfolio included 48 properties as of February 28, 2009 (39 office buildings, 3 logistics centers, 2 retail facilities, 1 hotel and 3 residential properties). The invested amount (total of acquisition prices) aggregated to ¥269,597 million.

2. Summary of Significant Accounting Policies

(a) Basis of presenting financial statements

The accompanying financial statements have been prepared in accordance with the provisions set forth in the Financial Instruments and Exchange Law and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan (the “Japanese GAAP”), which are different in certain respects as to application and disclosure requirements of International Financial Reporting Standards.

The accompanying financial statements have been restructured and translated into English (with some reclassifications, expanded descriptions) from the financial statements of OJR prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law. Some supplementary information included in the statutory Japanese language financial statements, but not required for fair presentation, is not presented in the accompanying financial statements. OJR has not prepared consolidated financial statements, as it has no subsidiary.

(b) Property and equipment

Property and equipment are stated at cost. Depreciation of property and equipment is calculated on a straight-line basis over the estimated useful lives of the assets ranging as stated below:

Buildings and structures ………………………………………………… 10-50 yearsBuilding improvements..………………………………………………… 6-18 yearsMachinery and equipment……………………………………………….. 10-18 years

On the occasion of the fiscal 2008 tax revisions, OJR changed the estimated useful lives of machinery and equipment, starting from the current period. As the result, operating income, ordinary income, and income before income taxes for the 14th period declined by ¥29 million each.

(c) Revenue recognition

Revenues from operating lease of property are recognized on a straight-line accrual basis over the life of the lease. Revenues from finance lease of property and related costs of the finance lease are recognized when OJR receives the lease payments. The difference between those revenues and costs represents the interest income equivalent earned during the period.

(d) Taxes on property and equipment

Property and equipment are subject to various taxes, such as property taxes and city planning taxes. An owner of properties is registered in a record maintained by the local government in each jurisdiction, and the taxes are imposed on the owner registered in the record as of January 1, based on the assessment made by the local government.

When a property is purchased in a calendar year, these taxes for that calendar year are imposed on the seller. OJR pays the seller the corresponding amounts of the taxes for the period from the property acquisition date to December 31 of the calendar year and capitalizes these amounts as the acquisition cost of the property, rather than expensing them in the period of acquisition. Subsequently, every calendar year, OJR recognizes the taxes imposed on such properties as property-related expenses in a period when the assessment and


decision is notified and paid, if OJR has owned the properties since January 1 of the calendar year.

The amount of such taxes included in the costs of real estate acquisition was ¥14 million and ¥73 million for the period ended February 28, 2009 and August 31, 2008, respectively.

(e) Allowance for doubtful receivables

To prepare for possible losses on uncollectible receivables, the allowance for doubtful receivables is provided in amounts considered to be appropriate based on individual analysis of collectibility for certain doubtful receivables and on past credit experiences for other receivables.

(f) Hedge accounting

OJR conducts a derivative transaction in order to hedge risks defined in its Articles of Incorporation based on its financial policy. OJR uses a derivative financial instrument such as an interest rate swap only for the purpose of avoiding future risks of interest rate increases relating to a loan, but does not enter into such transactions for speculative or trading purposes. Since the interest rate swap currently used qualifies for hedge accounting and meets certain matching criteria, the swap is not recorded at fair value but the differential paid or received under the swap agreement is recognized and included in interest expense. In addition, assessment of the hedge effectiveness has been omitted because the swap meets the matching criteria, as permitted under the Japanese GAAP.

(g) Income taxes

Deferred tax assets and liabilities are recognized based on the difference between the financial statements and income tax bases of assets and liabilities using the enacted tax rate.

(h) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand, deposits placed with bank and short-term investments, which are highly liquid, readily convertible to cash, and with an insignificant risk of price fluctuation, with original maturity of three months or less.

OJR has adopted the method where sales and cost of sales are recorded when OJR receives lease revenues. (i) Reclassification

Certain reclassifications have been made to the prior period’s financial statements to conform with the presentation used for the period ended February 28, 2009.

(j) Rounding of amounts presented in financial statements

The amounts in the financial statements have been rounded down to millions in the financial statements originally prepared in Japanese and filed with regulatory authorities, whereas the amounts have been rounded to the nearest millions in the accompanying financial statements in order to present them in a manner that is more familiar to readers outside Japan.

(k) New accounting pronouncements:

(Lease accounting) Finance lease transactions in which the ownership of the leased property is not deemed to be transferred to the lessee were previously accounted for in the same manner as operating leases, as permitted by the Japanese GAAP. However, commencing with the current period, due to the adoption of the Accounting Standards Board of Japan (“ASBJ”) Statement No. 13, “Accounting Standard for Lease Transactions”, and ASBJ Guideline No. 16, “Guidance on Accounting Standards for Lease Transactions”, OJR now accounts for those finance lease transactions as financing (i.e. sale of property and recognition of investment in finance lease). This change has increased operating income, ordinary income, and income before income taxes for the current period by ¥8 million each, as compared with the case where the previous method were applied.


3. Cash and Cash Equivalents

Cash and cash equivalents were as follows.(In millions of yen)

As of February 28, 2009 As of August 31, 2008 Cash and deposits…………………………………… ¥ 23,218) ¥ 22,090)

Less: time deposits due over three months………. . (1,202) . (1,246)Cash and cash equivalents……………………….…. ¥ 22,016) ¥ 20,844)

4. Collateral Pledged and Secured Liabilities

There were no collateral pledged and secured liabilities as of February 28, 2009. Assets pledged as collateral and relevant secured liabilities as of August 31, 2008, were as follows.


Assets pledged as collateral As of August 31, 2008Cash and deposits ¥ 1,262Buildings and structures 8,748Building improvements 2,654Land 21,899

Total ¥034,563

Secured liabilities As of August 31, 2008Long-term debt due within one year ¥008,650

5. Short-term and Long-term Debt

As of August 31, 2008, OJR had total interest bearing debt of ¥120,650 million comprised of ¥17,000 million of short-term debt and ¥103,650 million of long-term debt (including ¥8,650 million of current portion of long-term debt).

To provide funds to refinance loans nearing the repayment date, OJR took out ¥11,500 million in long term loans (fixed rate, unsecured) on September 19, 2008 and ¥14,000 million in short term loans (floating rate, unsecured) based on the commitment line on September 22, 2008. In addition, on September 29, 2008, OJR took out ¥6,000 million in short term loans (floating rate, unsecured) based on the commitment line to provide for part of the funds to acquire the ORIX Nagoya Nishiki Building and the Ichikawa Logistics Center. Subsequently, OJR extended and took out new short term loans amounting to ¥20,000 million (floating rate, unsecured) based on the commitment line to provide funds for the refinancing of short term loans on December 22, 2008.

As of February 28, 2009, total interest bearing debt of OJR amounted to ¥126,500 million comprised of ¥20,000 million of short-term debt and ¥106,500 million of long-term debt (including ¥15,000 million of current portion of long-term debt).

Breakdown of the outstanding interest bearing debt as of February 28, 2009 and August 31, 2008 were as follows:


<Short-Term Debt> As of

February 28, 2009As of

August 31, 2008Floating rate debt unsecured due on September 22, 2008 with interest rate of 1.17% ¥ . － ¥ 17,000Floating rate debt unsecured due on March 23, 2009 with interest rate of 1.32% ¥ 20,000 ¥ .－Total………………………………………………………………………………… ¥ 20,000 ¥ 17,000


The interest rate relating to the debt hedged by an interest rate swap for the purpose of avoiding interest rate volatility risk is the interest rate after reflecting the effect of the relevant interest rate swap.

The annual maturities of long-term debt as of February 28, 2009 were as follows. (In millions of yen)

Due within one year ……………… ¥15,000Due after one to two years ……………… 21,500Due after two to three years ……………… 32,000Due after three to four years ……………… 28,000Due after four to five years ……………… 10,000

OJR extended a commitment line of ¥27,000 million for one year with certain financial institutions to reduce refinancing risk on June 6, 2008. The unused amount of such commitment line was ¥7,000 million as of February 28, 2009.

6. Per Unit Information

Net asset values per unit as of February 28, 2009 and August 31, 2008 were ¥563,666 and ¥562,878, respectively. Net income per unit was ¥15,962 for the six months ended February 28, 2009, and ¥15,174 for the six months ended August 31, 2008.

The weighted average numbers of units outstanding that were used for the computation of the amounts of net income per unit for the six months ended February 28, 2009 and August 31, 2008 were 251,622.

7. Income Taxes

As of February 28, 2009 and August 31, 2008, OJR recorded deferred tax assets as follows:

(In millions of yen) As of February 28, 2009 As of August 31, 2008

Business facility tax payable not qualifying for deduction ontax returns ¥ 1 ¥ 1Allowance for doubtful receivables not qualifying for deduction on tax returns ¥ 2 ¥ 2Total deferred tax assets ¥ 3 ¥ 3Net deferred tax assets ¥ 3 ¥ 3

The reconciliation of tax rate difference between the statutory tax rate and the effective tax rate was as follows:

For the six months ended February 28, 2009 August 31, 2008

Statutory tax rate……………………………………………… 39.39% 39.39%Estimated allowable dividend distribution (*)…..……………. (39.38) (39.38) Other………………………………….………………………. 0.01% 0.02%Effective tax rate……………………………………………… 0.02% 0.03%

<Long-Term Debt> Fixed rate debt secured due on September 20, 2008 with interest rate of 1.85% ¥ － ¥ 8,650Fixed rate debt unsecured due on September 24, 2009 with interest rate of 1.09% 15,000 15,000Fixed rate debt unsecured due on March 19, 2010 with interest rate of 1.45% 14,000 14,000 Fixed rate debt unsecured due on September 21, 2010 with interest rate of 1.54% 6,500 －Fixed rate debt unsecured due on November 5, 2010 with interest rate of 1.52% 1,000 1,000 Fixed rate debt unsecured due on April 27, 2011 with interest rate of 2.00% 17,000 17,000 Fixed rate debt unsecured due on June 27, 2011 with interest rate of 1.83% 15,000 15,000Fixed rate debt unsecured due on March 19, 2012 with interest rate of 1.79% 20,000 20,000 Fixed rate debt unsecured due on September 19, 2012 with interest rate of 1.84% 5,000 －Fixed rate debt unsecured due on September 20, 2012 with interest rate of 1.40% 3,000 3,000Fixed rate debt unsecured due on April 26, 2013 with interest rate of 2.20% 7,000 7,000Fixed rate debt unsecured due on July 31, 2013 with interest rate of 1.94% . 03,000 . 03,000Total……………………………………………………………………………………. . .106,500 . .103,650

Grand total of short-term and long-term debt …………………………………………. ¥ 126,500 ¥ 120,650


*OJR follows a policy of making dividend distributions in excess of 90% of taxable income for a period to meet conditions set forth in the Special Taxation Measures Law of Japan to deduct dividend distributions for income tax purposes. Based on this particular policy, OJR calculated the amounts of the dividend distributions, as amounts nearly equal to the retained earnings. The dividend distributions as of February 28, 2009 and August 31, 2008 were ¥4,017 million and ¥3,818 million, respectively, and OJR treated them as tax-deductible dividend distributions as defined under the Special Taxation Measures Law of Japan.

The statutory tax rate was revised due to a change in corporate business tax rate and the creation of local corporate special tax, which is effective for fiscal years beginning on or after October 1, 2008. As a result, the tax effect of the temporary differences as of February 28, 2009, which are expected to reverse in March 2009 or thereafter, was calculated using the revised statutory tax rate of 39.33%. The financial impact of this change on the amount of the deferred tax assets is immaterial.

8. Unitholders’ Equity

OJR shall maintain its net assets at least ¥50 million as required by the Investment Trust Law of Japan.

OJR may make distributions to unitholders out of, or even more than, accounting profits calculated by deducting the sum of its unitholders’ contribution from its net asset; provided, however, that such an aggregate distribution amount shall not exceed the amount remaining after deducting ¥100 million from its net asset amount.

Cash dividends are declared by the Board of Directors after the end of each period. Such dividends are payable to unitholders of record at the end of each period. On April 15, 2009, the Board of Directors of OJR declared a cash dividend (¥15,963 per unit) totaling ¥4,017 million, which will be paid to unitholders of record as of February 28, 2009. The declaration of this dividend has not been reflected in the financial statements as of February 28, 2009.

9. Related-Party Transactions

There were no related-party transactions that are required to be disclosed under Article 8 of regulations concerning financial statements for the six months ended February 28, 2009 and August 31, 2008, respectively.

10. Breakdown of Rental and Other Operating Revenues, and Property-Related Expenses

Rental and other operating revenues and property-related expenses for the six months ended February 28, 2009 and August 31, 2008 consisted of the following:

(In millions of yen) For the six months ended

Rental and other operating revenues: February 28, 2009 August 31, 2008

Rentals:Rental revenues…………………………………………… ¥.... 8,069 ¥.... 7,858

Common-area charges.…………………………………… 948 961 Revenues from finance lease of property 193 ..－ Subtotal………………………………………………… , 9,210 , 8,819

Others: Parking lots…………………………………………….… 193 203 Cancellation penalty received……………………………. 16 35 Miscellaneous…………………..………………………… 914 996 Subtotal………………………………………….….…. . 1,123 . 1,234

Total rental and other operating revenues………………….. ¥, .10,333 ¥, .10,053

Property-related expenses: Property management fees……………………………….. 937 972

Depreciation……………………………………………… 1,875 1,773 Utility charges……………………………....…………… 840 856 Property and other taxes…………………………………. 678 709

Cost of finance lease of property 74 －Others……………………………………………………. 173 196

Total property-related expenses……………………………. ¥, 4,577 ¥, 4,506


11. Breakdown of Gains on Sale of Real Estate Properties

There was no sale of real estate properties in the period ended August 31, 2008. Gains on sale of real estate property during the period ended February 28, 2009 were as follows:

(In millions of yen) For the six months ended February 28, 2009

Round-Cross Shinsaibashi Revenue from sale of real estate properties ¥ 14,500Cost of real estate properties 14,191Other sales expenses ¥ 00,120Gains on sale of real estate properties ¥ 00,189

12. Leases

OJR, as a lessor, operates its properties that are rented to tenants on lease terms of two years generally, with monthly payments due in advance. For operating leases that include non-cancelable lease term, the minimum future rentals on such non-cancelable operating leases as of February 28, 2009 and August 31, 2008 were as follows:

(In millions of yen) As of February 28, 2009 As of August 31, 2008

Due within one year ¥ 2,787 ¥ 2,774 Due after one year 12,589 9,835Total ¥ 15,376 ¥ 12,609

In addition, OJR, as a lessor, leases its properties to customers under finance lease arrangements in which the ownership of the leased property is not deemed to be transferred to the lessee. These lease transactions were accounted for in the same manner as operating leases, as permitted by the Japanese GAAP, for the previous periods. However, starting from the current period ended February 28, 2009, OJR has adopted the new accounting standard for lease transactions and now accounts for these lease transactions as financing (i.e. sale of property and recognition of investment in finance lease). The following provides certain information for those lease transactions:

(a) For the six months ended February 28, 2009:

) Breakdown of investment in finance lease

(In millions of yen) As of February 28, 2009

Minimum lease payments receivable ¥ 5,582)Estimated residual value 1,354)Unearned interest income equivalents ¥ ..(3,221)Investment in finance lease ¥ 3,715)

) Amounts to be collected of minimum lease payments receivable related to investment in finance lease

(In millions of yen) As of February 28, 2009

Due within one year ¥ 0,350)Due after one to two years ¥ 0,350)Due after two to three years ¥ 0,350)Due after three to four years ¥ 0,350)Due after four to five years ¥ 0,350)Over five years ¥ 3,832)Total ¥ 5,582)

) As for finance lease transactions entered into during the fiscal period started before April 1, 2008 that do not transfer ownership of the leased property to the lessee, their proper book value as fixed assets (net of accumulated depreciation) recorded at the end to of August 2008 was transferred from property and equipment to investment in finance lease as the initial recorded amount of the investment in finance lease at the beginning of the fiscal period started on September 1, 2008, as permitted by the Japanese GAAP. The interest income equivalents of those finance lease transactions are taken into income over the remaining lease term based on a straight-line method. Consequently, income before income taxes for the current period is ¥70 million less than the amount that


would have been recorded had those finance lease transactions been retrospectively accounted for as financing by using the interest method.

(b) For the six month ended August 31, 2008:

) Acquisition cost, accumulated depreciation, and net book value of the leased assets recognized in the accompanying balance sheets at the end of the period

(In millions of yen) As of August 31, 2008

Acquisition cost Accumulated depreciation Net book valueBuildings and structures ¥... 3,408 ¥. 0,064 ¥ 3,344Building improvements ¥ 0,492 ¥. 0,018 ¥ 0,474Total ¥ 3,900 ¥. 0,082 ¥ 3,818

) Amount equivalent to finance lease receivable at the end of the period that would have been recognized had the transactions been accounted for as financing

(In millions of yen) As of August 31, 2008

Due within one year ¥ 0,084 Due after one year 3,778Total ¥ 03,862

) Rental revenues and depreciation recognized in the accompanying statements of income during the period


August 31, 2008Rental revenues ¥ 00,150 Depreciation ¥ 00,082

) Amount equivalent to interest income allocated to appropriate periods using the interest method that would have been recognized had the transactions been accounted for as financing


August 31, 2008Interest income equivalents ¥ 00,135

13. Derivative Transaction

OJR uses a derivative transaction in order to hedge risks defined in its Articles of Incorporation based on its financial policy. OJR uses a derivative financial instrument such as an interest rate swap only for the purpose of avoiding future risks of interest rate increases relating to a loan, but does not enter into such transactions for speculative or trading purposes.The derivative transactions as of February 28, 2009 and August 31, 2008 were as follows:


Notional amount Notional amount

exceeding one year Estimated fair value

Unrealized gain (loss)<As of February 28, 2009>

Interest-rate swap: Fixed rate payable and floating rate receivable ¥ 8,500 ¥ 8,500 ¥ (140)

<As of August 31, 2008> Interest-rate swap:

Fixed rate payable and floating rate receivable ¥ 8,500 ¥ 8,500 ¥ 0(85)

Since the above interest rate swap qualifies for hedge accounting and meets certain matching criteria, the swap is not recorded at fair value on the accompanying balance sheets, as described in the summary of significant accounting policies.


14. Subsequent Events

(a) Cash Distribution Declared On April 15, 2009, the Board of Directors of OJR resolved to distribute cash payment of ¥15,963 per unit, aggregating to ¥4,017 million, to its unitholders of record as of February 28, 2009.

(b) Sale of property OJR sold ORE Nagoya Fushimi Building after the end of the 14th period, and outline of the transaction was as follows. This was done in accordance with OJR’s asset management policy stipulated in the Articles of Incorporation.

ORE Nagoya Fushimi Building

1. Sales price ¥10,680 million 2. Assets to be transferred Real estate 3. Contract date March 25, 2009 4. Delivery date March 27, 2009 5. Buyer ORIX Real Estate Corporation 6. Estimated impact of sale Approximately ¥1,141 million of gain on sale of real estate property will be

recorded.Note: Sales price represents a price agreed in the sales agreement, and does not include transaction expenses such

as the broker’s commission, taxes and public dues and so on.



Corporate Data

Corporate Office 4-1, Hamamatsucho 2-chome, Minato-ku, Tokyo, 105-6135, Japan PHONE +81-3-3435-3286 FAX +81-3-3435-3275

Date of Incorporation September 10, 2001

Capital (as of February 28, 2009)¥137,814 million 251,622 units

Number of Unitholders (as of February 28, 2009) 15,574

Transfer Agent The Sumitomo Trust and Banking Company, Limited. 5-33, Kitahama 4-chome, Chuo-ku, Osaka, 540-8639, Japan

Independent Auditors KPMG AZSA & Co. 1-2, Tsukudo-cho, Shinjuku-ku, Tokyo, 162-8551, Japan

Investor Relations For further information, please contact our asset management company or visit our web site. (http://www.orixjreit.com/english/index.htm)

ORIX Asset Management Corporation World Trade Center Bldg., 4-1, Hamamatsucho 2-chome, Minato-ku, Tokyo, 105-6135, Japan PHONE +81-3-3435-3285 FAX +81-3-3435-3275


About Our Website

DisclaimerThis report includes translations of certain Japanese documents originally filed under the Financial Instruments and Exchange Law of Japan and related accounting regulations. This report wasprepared in English solely as a reference for the convenience of readers outside Japan and is not intended to constitute a disclosure statement.

English terms for Japanese legal, accounting, tax, and business concepts used herein may not be precisely identical to the concepts of the equivalent Japanese terms. With respect to all terms herein,including without limitation, the financial statements, the original Japanese documents shall govern in meaning and interpretation for any discrepancies between the original Japanese documents andthe corresponding English statements.

None of ORIX JREIT Inc. (OJR), ORIX Asset Management Corporation (OAM), or any of their respective directors, officers, employees, partners, shareholders, agents, or affiliates shall be responsible orliable for the completeness, appropriateness, or accuracy of the English translations or the selection of any portion of any document translated into English.

The financial statements of OJR have been prepared in accordance with accounting principles generally accepted in Japan (the “Japanese GAAP”), which are different in certain respects to theapplication and disclosure requirements of International Financial Reporting Standards.

This report contains forward-looking statements, including forecasts of financial position, results of operations, and business-related matters, as well as statements related to the plans and goals ofthe management of OAM. However, there are a number of known and unknown risks and uncertainties that can cause actual results or OJR performance to differ materially from any explicit orimplicit forecasts persented herein. These forward-looking statements also rest on a number of assumptions with regard to OJR´s present and future management strategies, as well as the politicaland economical environments in which OJR will conduct its future business operations.

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14 th period - オリックス不動産投資法人 of deterioration in the economy has spread to the real estate market. First, in the real estate market for leasing, the vacancy