ORIX JREIT Inc.ORIX JREIT Inc. 11th Fiscal Period: Forecast vs. Actual 2 * Compared with forecast issued on April 19, 2007 in conjunction with release of business results for 10th

ORIX JREIT Inc.ORIX JREIT Inc.　　 0

ORIX JREIT Inc.ORIX JREIT Inc.11th Fiscal Period Results (ended August 31, 2007)11th Fiscal Period Results (ended August 31, 2007)

October 22, 2007ORIX Asset Management Corporation

ORIX JREIT Inc.ORIX JREIT Inc.　　

Summary of Results for 11th Fiscal PeriodSummary of Results for 11th Fiscal Period　　(Ended August 31, 2007)(Ended August 31, 2007)

1


11th Fiscal Period: Forecast vs. Actual

2

* Compared with forecast issued on April 19, 2007 in conjunction with release of business results for 10th fiscal period. The forecast was revised upward in a press release issued on September 11, 2007.

Revenue and income were higher than the initial forecast, due toRevenue and income were higher than the initial forecast, due to factors such as revenue from properties factors such as revenue from properties acquired in the 11th fiscal period (KN acquired in the 11th fiscal period (KN JiyugaokaJiyugaoka Plaza, Lunar Sendai) and increases in rental revenue from Plaza, Lunar Sendai) and increases in rental revenue from existing properties.existing properties.

・Revenue from properties acquired in 11th fiscal period (KN Jiyugaoka Plaza, Lunar Sendai) (+108 million yen)・Increase in rental revenue from existing properties

(+21 million yen)・Revenue from penalties (+25 million yen)・Decrease in repairs and maintenance costs　　　　　　　　　　

(+109 million yen)・Increase in interest income　　　　　　　　(+20 million yen)

・Difference from forecast for reversal of building managementassociation fees (-30 million yen)・Increase in loss on retirement (-51 million yen)・Increase in brokerage fees (-22 million yen)・Increase in interest expenses (-23 million yen)

11th Fiscal Period(Ended Aug. 31, 2007)ItemForecast Actual

Change

Operating revenues (million yen) 8,941 9,161 219

Operating income (million yen) 3,947 4,127 179

Net income (million yen) 3,108 3,284 175

Distribution per unit (yen) 13,792 14,572 780

Income-boosting factors

Income-decreasing factors


Comparison of 10th and 11th Fiscal PeriodsIncome-boosting factors ・Full revenue from one property acquired in

10th fiscal period (+137 million yen)・Revenue from four properties acquired in

11th fiscal period　　 (+276 million yen)・Increase in rental revenue from existing properties

(+172 million yen)

Item10th Fiscal

Period(Ended Feb. 28, 2007)

11th Fiscal Period

(Ended Aug. 31, 2007)

Change

Operating revenues (million yen) 8,477 9,161 683

Operating income (million yen) 3,865 4,127 261

Net income(million yen) 3,346 3,284 -62

Distribution per

unit (yen) 14,850 14,572 -278

・Loss of revenues from properties disposedin 10th fiscal period: loss on sale, loss on investment　　　　　　　　　　　　　　　　 (-233 million yen) ・City planning taxes for properties acquired in 9th and 10th fiscal periods (-116 million yen)・Increase in interest expenses (-186 million yen)・Loss of extraordinary income from compensation received from OAM　　　　　　　　　　　 (-142 million yen)


Operating revenues and operating income were up, due to revenue Operating revenues and operating income were up, due to revenue from five properties acquired in the 10th from five properties acquired in the 10th and 11th fiscal periods, and increases in rental revenue from exand 11th fiscal periods, and increases in rental revenue from existing properties. Net income and distribution isting properties. Net income and distribution per unit were down, due to the loss of extraordinary income fromper unit were down, due to the loss of extraordinary income from compensation received from OAM.compensation received from OAM.

3


Forecast of Results for 12th and 13th Fiscal Periods

Item 11th Fiscal Period(Ended Aug. 31, 2007)

Forecast for 12th Fiscal Period

(Ending Feb. 29, 2008)Change

(11th to 12th)Forecast for

13th Fiscal Period (Ending Aug. 31, 2008)

Change(12th to 13th)

Operating revenues(million yen) 9,161 9,554 393 9,675 120Operating income(million yen) 4,127 4,364 237 4,381 16Net income(million yen) 3,284 3,477 192 3,555 78No. of Investment Units issued (unit) 225,372 251,622 26,250 251,622 0Distribution per unit (yen) 14,572 13,818 -754 14,129 311

Change (11th to 12th) Change (12th to 13th)

Income-boosting factors

・Full revenue from four properties acquired in 11th fiscal period (+210 million yen)・Increase in rental revenue from existing properties

(+140 million yen)

・Increase in rental revenue from existing properties (+105 million yen)

・Loss of issuance costs for new investment units 　(+67 million yen)


・Increase in repairs and maintenance costs (-61 million yen)

・Posting of issuance costs for new investment units　　 (-67 million yen)

・City planning taxes for four properties acquired in 11th fiscal period (-53 million yen)・Increase in repairs and maintenance costs

(-83 million yen)

Distribution per unit is forecasted to decrease compared with thDistribution per unit is forecasted to decrease compared with the 11th fiscal period, due to an increase in the e 11th fiscal period, due to an increase in the number of investment units issued with the additional offering onumber of investment units issued with the additional offering of 26,250 units. Moving forward, ORIX JREIT f 26,250 units. Moving forward, ORIX JREIT aims to improve the distribution per unit through acquisition ofaims to improve the distribution per unit through acquisition of additional properties. additional properties.

4


Business Results and Growth StrategyBusiness Results and Growth Strategy

5


Growth StrategyExternal Growth Strategy

● Acquire blue chip properties by capitalizing on synergy with ORIX Group

● Sustained investment emphasis on Greater Tokyo area and office properties

● Improve portfolio quality through acquisition of blue chip properties

Achieve steady growth in assets and secure stable revenues

Internal Growth Strategy

●● Secure a sound financial position by shifting to Secure a sound financial position by shifting to unsecured loans and longunsecured loans and long--term fixed interest rate term fixed interest rate loans, and spreading out maturity datesloans, and spreading out maturity dates

●● Improve financial mobility by diversifying the Improve financial mobility by diversifying the means of funds procurementmeans of funds procurement

●● Devise and implement sound and efficient capital Devise and implement sound and efficient capital strategiesstrategies

Financial Strategy

●● Maintain high occupancy rates by improving tenant Maintain high occupancy rates by improving tenant satisfactionsatisfaction

●● Raise rents by capitalizing on healthy market and Raise rents by capitalizing on healthy market and competitiveness of propertiescompetitiveness of properties

6


External Growth Record (Based on Total Acquisition Price)・End of phase for active turnover of properties to improve portfolio quality・Moving forward, ORIX JREIT will focus its energies on increasing asset size

through acquisition of blue chip properties

70

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th

60

120

180

240

300

(Billion yen)

Properties held since IPOProperties acquired through synergy with ORIX groupProperties acquired through other channels

99.6 99.6 104.9 114.4141.5 153.2 148.9

176.7 174.8197.9

209.0235.6

At IPO

29.9

131.7

73.9

14.8 billion yenAve. 4.9 billion yen per period



64.4 billion yen to reach 300

billion yen level

03/9PO

05/9PO

07/10PO

●Total acquisition price of properties acquired between POs.

360

300


Properties Acquired in 11th Period (Slide 1 of 3)

KN Jiyugaoka Plaza ■■ Excellent locationExcellent location・Three minute walk from Jiyugaoka Station on

Tokyu Toyoko Line and Oimachi Line

・Located in affluent commercial area and anticipated to generate stable tenant demand

■■ Valuable property featuring spacious Valuable property featuring spacious floor plans compared with surrounding floor plans compared with surrounding propertiesproperties

　　・Valuable property due to it relatively large size in comparison with many small properties in Jiyugaoka area

■■ Acquired from outside of ORIX GroupAcquired from outside of ORIX Group　・Acquired from seller outside of ORIX Group,

as ORIX JREIT steadily increases its asset size in spite of a tight market for property acquisition

Location (address)

13-6 Jiyugaoka2-chome, Meguro-ku, Tokyo

Acquisition date

May 30, 2007

Acquisition price

3.11 billion yen

Building completion

December 2001

No. of floors 5 stories

Lot size 575.54㎡Building floor area

1,272.60㎡8



■■ Situated in the heart of the Sendai Situated in the heart of the Sendai business districtbusiness district・ Situated in the Honcho area in the heart of the

Sendai business district, which also features prefectural government offices, city government offices and office buildings・ Popular area characterized by high leasing rates

and low office vacancy compared with other areas

■■Valuable property with excellent location Valuable property with excellent location and amenitiesand amenities・ Two-minute walk from Kotodai Koen Station and

three-minute walk from Hirose Dori Station, both on Sendai Municipal Subway line; within walking distance of JR Sendai Station・ Open location on corner bordered by three roads,

facing major arterial road・ Relatively recent construction compared with

surrounding properties, and boasts excellent building amenities

■■High yield compared with properties in High yield compared with properties in central Tokyocentral Tokyo・ Leasing net operating income (NOI) yield

anticipated at 5.4% at time of acquisition・ ORIX JREIT will strive to improve yield through

internal growth

Lunar Sendai　

Location (address)

15-1 Honcho 2-chome, Aoba-ku, Sendai City, Miyagi

Acquisition date

June 28, 2007

Acquisition price 8.5 billion yen

Building completion

February 1998

No. of floors 14 stories,2 levels underground

Lot size 1,990.35㎡Building floor area

14,107.74㎡9



Nihonbashi Honcho 1-chome Bldg. Round-Cross Shinjuku 5-chome　

Location (address)

9-13 NihonbashiHoncho-1chome, Chuo-ku, Tokyo

Building completion

March 2006

No. of floors

10 floors, 1 level underground

Acquisition date

March. 28, 2007 Lot size 825.67㎡

Acquisition price

10.5 billion yen Building floor area

6,929.65㎡

Location (address)

17-5 Shinjuku-5chome, Shinjuku-ku, Tokyo

Acquisition date

April 26, 2007

Acquisition price

4.5 billion yen

Building completion

October 2006

10 floors, 2 levels underground

Lot size 540.38㎡

Building floor area

4,447.82㎡

No. of floors

10


Strengths of ORIX Group

11

Properties Developed by ORIX Real Estate (ORE)

Results from Real Estate Business of ORIX Group

0.0

15.0

30.0

45.0

60.0

FY03/05 FY03/06 FY03/07

Income Before Taxes from Real Estate

ORIX Group Total Income Before Taxes (Fiscal Year

Ended March 31, 2007)

23.928.6

51.2

(Billion yen)

INTAGE Akihabara Bldg.ORIX Nagoya Nishiki Bldg. ORIX Shinagawa Bldg.

Note: Properties shown here are not scheduled for acquisition by ORIX JREIT at the present time.

Total Income Before Taxes (Excluding Head

Office Account)332.6 billion yen

Major Projects of ORIX Real Estate (ORE)

Minato Mirai 21 Project

Osaka North Yard

Sakai Logistics Center

15%

51.2 billion yen


Improving Portfolio Quality Through Acquisition of Blue Chip Properties

0.0

50.0

100.0

150.0

200.0

250.0

Disposed Aquired

(Billion yen)

Comparison of Total Acquisition Price

30.9(17 properties)

166.9(22 properties)

2.5

5.3

0.0

2.0

4.0

6.0

8.0

0

7,000

14,000

21,000

28,00012.1

10.4

0

3

6

9

12

15

Comparison of Portfolio Averages Per Property

Acquisition Price Property Size (Bldg Floor Area)* Building Age

2.1 times

1.5 times-1.7 years

(m2) (Years)

Ratio of Properties Acquired Through Synergy with ORIX Group

Ratio of Property Acquisi-tions Featuring New Construction (Less than Two Years Old)

Ratio of Office Properties Acquired in Greater Tokyo Area

82%82% 55%55%69%69%

15,734

23,638

11th Fiscal Period(Oct. 19, 2007)**

1st Fiscal Period(Aug. 31, 2002)





(Billion yen)

* Property size (building floor area) is based on entire floor area of property, and is not adjusted by share of ORIX JREIT holdings.** Release date of the results for the fiscal period. 12


Investment Emphasis on Office Properties and Greater Tokyo Area

Office

Retail

Residential

Hotel

Logistics facility

Greater Tokyo Area and surrounding citiesTokyo and cities in surrounding prefectures of Kanagawa, Chiba and Saitama (including Yokohama, Kawasaki, Chiba, Kashiwa, Matsudo, Saitama, Tachikawa, Hachioji and Mitaka cities)

Other cities

(As of October 19, 2007)

82.1%

88.1%

Ratio of investment in officeoffice properties

・Building a portfolio that is strongly positioned to capitalize on recent healthy market conditions, through an investment emphasis on office properties and the Greater Tokyo area

Ratio of investment in Greater Tokyo Greater Tokyo area and surrounding citiesarea and surrounding cities

13

ORIX JREIT Inc.ORIX JREIT Inc.　　14

Hotel　

Reference: Investment in Non-Office Properties

Office88.1%

Ratio of overall portfolio by acquisition price

6.4％


No. of properties 1

Property name Cross Gate

Leasing NOI yield 6.8％

Retail Residential Logistics Facility

Non-office properties11.9%

・Leasing NOI* yield for non-office properties: 6.2% (compared with 5.7% for overall portfolio)

Portfolio Distribution (by Acquisition Price)　

(As of October 19, 2007)


2.1％

Total acquisition price 4.983 billion yen

No. of properties 2

Property name Nihon JishoMinami Aoyama Bldg., CUBE Daikanyama



1.7％

Total acquisition price 4.051 billion yen

No. of properties 3

Property name Park Axis Nishi Azabu Stage, Grand MaisonHakusan, SonetKami Ikebukuro



1.7％


No. of properties 1

Property name KoshigayaLogistics Center


* Leasing net operating income (NOI) = Leasing income + Depreciation costs


Occupancy Rate Situation

Occupancy Rates　

Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07

Office 98.3% 97.9% 97.8% 97.6% 97.9% 97.8%

Retail 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Residential 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Hotel 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Logistics facility 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Overall 98.6% 98.4% 98.3% 98.1% 98.3% 98.3%

100%

96%

92%

Low Occupancy Properties (Under 90%)at End of 11th Fiscal Period　

Property Name Occupancy Rate, Leasing Status

Round-Cross Aoyama

・88.2% occupancy・Currently engaged in leasing activity

Round-Cross Shinjuku 5-chome

・86.8% occupancy・Lease already signed with new tenant (anticipate 100% occupancy by Nov. 31, 2007)

Round-Cross Kawasaki

・83.8% occupancy・Currently engaged in leasing activity

15


Rent Situation

16

Existing Leases

New Leases Total

No. of leases XXXX 　22) 　20) 　42)

（Previous fiscal period） (25) (12) (37)（Change）xxxxxxxxxxx (-3) (+8) (+5)

Leased area (m2) XX 11,066） 8,398） 19,464）（Previous fiscal period） (41,512) (5,197) (46,709)（Change）xxxxxxxxxxx (-30,446) (3,200) (-27,245)Net rent increase (monthly, thousand yen) 6,381) 17,286) 23,667)

（Previous fiscal period） (7,643) (15,416) (23,060)（Change）xxxxxxxxxxxx (-1,262) (+1,870) (+607)Range of increase (based on rate per tsubo) 29.2 -1.9% 60.7 -0.3% 60.7 - 0.3%

（Previous fiscal period） (21.0 -0.8%) (86.4 -13.2%) (86.4 - 0.8%)Average increase (based on rate per tsubo) 10.1% 37.6% 22.4%

（Previous fiscal period） (4.4%) (31.8%) (8.9%)（Change）xxxxxxxxxxx (+5.7%) (+5.8%) (+13.5%)

（m2）

4,894

14％12％2％

66％

21％

6％16％ 22

％

72％

6％

5％

43％

47％

4％

14％

11％

75％

0.5％

49％

8th fiscal period (ended Feb. 28, 2006)

9th fiscal period (ended Aug. 31, 2006

10th fiscal period (ended Feb. 28, 2007)

11th fiscal period (ended Aug. 31, 2007)

Rent adjustment (monthly base)

（Thousand yen）

0

5,000

10,000

15,000

20,000

25,000

20,000

40,000

60,000

80,000

100,000

2,639

24％

Rent Adjustments (by Area) Rent Increases in 11th Fiscal Period

・121 leases renewed in 11th fiscal period, covering 79,976 m2

(116 leases renewed in 10th fiscal period, covering 95,787m2)・Table data includes leases commencing in 12th and 13th fiscal periods

* Rent increase by major tenant

21,149

23,455

Area Covered by Lease Renewals During Fiscal Period

Rent increase (lease renewals)Rent increase (new leases)No changeRent decrease

(21％)*

0


Reference: Target for Rent Increases for the Next 12 Months

Lease renewals in 12th and 13th fiscal periods

Lease renewals in 14th fiscal period and beyond

74％

Leasable area265,574m2

• The graph shows the target for rent increases, based on renewal periods written into leases as of October 19, 2007.Since lease renewals do not always coincide with the renewal period specified in leases, the graph represents only a projection of rent increases. (Percentages in the graph are rounded to the nearest percentage point.)

26％

12%

3%5％

Leases currently under negotiation or scheduled for negotiation

Already budgeted

Target rent increase in 12th and 13th fiscal periods

1％

5%

17


Leasing NOI* and Leasing NOI Yield (Based on Acquisition Price)

0

3,000

6,000

9,000

第7期第8期第9期第10期第11期3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

Decrease in property cap rate at acquisition

5.3

5.75.75.45.55.8

6.26.15.95.95.8

4.5

4.2

5.0

4.8

0

3,000

6,000

9,000

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

18*Leasing Net operating income (NOI) = Leasing income + Depreciation costs

(%)(Million yen)

Leasing NOI yield, all properties Leasing NOI yield of 32 properties continuously held from end of 6th fiscal period through to end of 11th fiscal period

NOI yield of newly acquired properties in initial fiscal period of acquisition (based on discounted cash flow method for appraisal value at acquisition)

Leasing NOI, all properties

Sustained emphasis on Greater Tokyo area and office properties, as segments with strong potential

Increase yield of continuously held properties through internal growth

Focus energies on achieving further internal growth, by capitalizing on competitiveness of properties and healthy market

Strike balance between increasing asset size and sustaining/improving yields

7th(August 2005)

8th(February 2006)

9th(August 2006)

10th(February 2007)

11th(August 2007) (Fiscal period)


Appraisal Value

19

-2.3 -3.2 -4.2 -5.0

2.45.9

17.0

-5.4 -3.9 -3.6

-2.4 -3.0 -3.7 -3.6 -3.5-2.6 -2.1

1.43.0

8.2

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

-5.0%

-2.5%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

Unrealized gain Unrealized gain loss ratio

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

33.2 billion yen14.3%

11th1 Unrealized gain is calculated by subtracting the book value from the appraisal value (both as of the end of the fiscal period).2 Unrealized gain loss ratio is calculated by dividing the unrealized gain by the book value (both as of the end of the fiscal period).

(Billion yen)

Fiscal period 1st(End of

Aug 2002)

2nd(End of

Feb 2003)

3rd(End of

Aug 2003)

4th(End of

Feb 2004)

5th(End of

Aug 2004)

6th(End of

Feb 2005)

7th(End of

Aug 2005)

8th(End of

Feb 2006)

9th(End of

Aug 2006)

10th(End of

Feb 2007)

11th(End of

Aug 2007)

Number of properties 39 40 41 46 49 46 47 39 41 40 44Appraisal value (billion yen) 98.8 103.1 111.4 137.2 148.4 145.2 173.5 176.9 203.3 224.4 266.2Book value (billion yen) 101.1 106.3 115.7 142.3 153.8 149.1 177.2 174.4 197.4 207.3 232.9Unrealized gain (billion yen) 1 -2.3 -3.2 -4.2 -5.0 -5.4 -3.9 -3.6 2.4 5.9 17.0 33.2Unrealized gain loss ratio (%) 2 -2.4 -3.0 -3.7 -3.6 -3.5 -2.6 -2.1 1.4 3.0 8.2 14.3

(Fiscal period)


0

70

140

210

280

350

1st 2nd3rd 4th 5th 6th 7th 8th 9th10th 11th

0

10

20

30

40

50

60

70

80Total acquisition price LTV

Issuance of Additional Investment Units

Offering method Public offering in Japan and sales of issued and outstanding units in Japan to provide for over-allotment

No. of units offered 26,250 units (including 1,250 units from over-allotment)

Offer price 668,360 yen per unit (at 2.0% discount rate)

Issue price 645,854 yen

Aggregate proceeds from offering

Approx. 16.9 billion yen (including approx. 0.8 billion yen from over-allotment)

Date of resolution authorizing issuance Tuesday, September 11, 2007

Pricing date Tuesday, September 25, 2007

Closing date Wednesday, October 3, 2007 (Tuesday, October 30, 2007 for over-allotment)

48.6%

41.6%

52.4%

31.9%

48.1%

41.0%

235.6 billion yen

Manage LTV at 40-50%

42.1 billion

yen capacity

for property

acquisition

07/10PO

99.6 billion yen

Proceeds of offering used for repayment of debts→ Significantly improves financial position and secures mobility

for external growth

Before Public Offering

After Public Offering*

Loan-to-value (LTV) ratio 48.1% -7.1% 41.0%

Capacity for property acquisition (up to 50% LTV)

8.9 billion yen +33.2 billion yen 42.1 billion yen

Reference: ORIX JREIT acquired 84.1 billion yen in properties (averaging 22.0 billion yen per fiscal period) in the two years since its previous public offering, through to the end of the 11th fiscal period

(%)

0

2,000

4,000

6,000

8,000

10,000

0

200

400

600

800

1,000

1,200

1,400

03/9PO

05/9PO

07/10PO

(Unit)

02/6/12 04/1 05/1 06/1 07/103/1 07/10/16

Approx. 280.0

billion yen

Trading volume

Investment unit price

02/6IPO

* Assumes that all 1,250 units to provide for over-allotment are purchased by the third party.

05/9PO

(Billion yen)

(Fiscal period)

(Thousand yen)

03/9PO


Financial SituationS&P Long-term credit rating: A- Short-term credit rating: A-2 Outlook: StableR&I Issuer rating: A+ Rating outlook: Stable

Credit ratings

21* Ratio of long-term fixed interest rate loans is calculated by dividing fixed interest rate long-term borrowings by all interest-bearing debt (all as of the current date).

31.9 39.0 41.5 48.141.1

Outstanding Debts, Loan-to-Value Ratio

120

0,60

0,30

(Billion yen)Outstanding debts Loan-to-value ratio

1.621.541.511.56

1.26

End of 9th fiscal period


As ofOct. 19, 2007


1

0,(年)Years left onmaturing loans

Averageborrowing rate

77.9

65.759.1 75.6 79.5

55.7

33.5

60.7

92.391.0

100

180160

140

120

Ratio of long-term fixed interest rate loans (excluding scheduled repayments within next 12 months)

Ratio of unsecured loans

0,9020

60(%)

56.677.1

85.6111.9

Ratio of Long-Term Fixed Interest Rate Loans* and Unsecured Loans

(%)



As of Oct. 19, 2007


2

3

4

0 0

0.5

1.0

1.5

2.0

0

(%)(Year)

2.2 2.22.6

2.9

0

130

120

110

10

Maturity Schedule for Outstanding Loans (as of Oct. 19, 2007)

2007 2008 2009 2010 2011 2012 2013

(Billion yen)

110

18.615.0 14.0

17.0

23.0

7.0

Average Years Left on Maturing Loans, Average Borrowing Rate

95.6



2.9

1.0

40

0



As ofOct. 19, 2007



(Year)


　　　　AppendixAppendix

22


Operating Situation9th Fiscal Period 10th Fiscal Period 11th Fiscal Period 12th Fiscal Period *1

Total leasable area (m2) (1) 243,848 246,153 265,574 265,574YoY(%) 116.7 100.9 107.9 100.0

Area covered by lease cancellation (m2) (2) 9,643 3,599 10,926 4,983Lease cancellation rate (%) (2)/(1) 3.9 1.5 4.1 1.9Area covered by new leases (m2) (3) 11,810 4,927 11,532 Leased area adjustment after new leases (m2) (3)-(2) 2,167 1,328 606 Occupancy rate (at end of fiscal period)　(%)　 96.5 98.3 98.3Average monthly lease rate per m2—[offices only] (yen) 4,998 [5,566] 5,042 [5,596] 5,294 [5,865]

YoY of all properties [offices only] -180 [188] +44 [30] +252 [269]Net operating income (NOI, million yen) *2 5,433 5,778 6,497Net operating Income (NOI) yield (%) 5.5 5.7 5.7Appraisal value of 32 properties owned at end of 6th fiscal period *3 (million yen) 126,870 131,918 142,706

YoY(%) 102.3 104.0 108.2Total acquisition price of properties owned at end of fiscal period (million yen) 197,986 209,015 235,625

YoY(%) 113.2 105.6 112.7

*1 Total leasable area for 12th fiscal period is based on figures for end of 11th fiscal period, since there are no scheduled acquisitions as of October 19, 2007. Area covered by lease cancellation includes all leases scheduled for cancellation during the 12th fiscal period, as of October 19, 2007.

*2 Net operating income (NOI) = Leasing income + Depreciation costs + Retirement costs

*3 Based on appraisal value of 32 properties continuously held from end of 6th fiscal period through end of 11th fiscal period.23


Financial Highlights7th period 8th period 9th period 10th period 11th period

Operating revenue (million yen) 7,373 8,130 8,894 8,477 9,161

Operating income (million yen) 3,431 4,016 4,271 3,865 4,127

Net income (million yen) 2,882 3,442 3,664 3,346 3,284

Unitholders’ capital (million yen) 85,821 120,860 120,860 120,860 120,860

No. of investment units issued (unit) 175,372 225,372 225,372 225,372 225,372

Net assets value (million yen) 88,703 124,302 124,525 124,207 124,144

Total assets (million yen) 197,039 193,898 216,458 225,361 253,135

Net assets value per unit (yen) 505,805 551,545 552,533 551,121 550,843

Distribution per unit (yen) 16,437 15,274 16,261 14,850 14,572

24

14,57214,85016,261

15,27416,437

175,372

225,372 225,372 225,372 225,372

0

3,000

6,000

9,000

12,000

15,000

18,000

7th 8th 9th 10th 11th

0

50,000

100,000

150,000

200,000

250,000

300,000

Distribution per unit (Rh) No. of investment units issued

Distribution per UnitDistribution per Unit

(yen) (Unit)

7,3738,130

8,894 8,4779,161

3,431 4,016 4,2713,865

4,127

3,664 3,2842,882 3,442 3,346

0

2,000

4,000

6,000

8,000

10,000


Operating revenues Operating income Net income

Operating Results　Operating Results　

(million yen)


Notes:1 “Acquisition price” means the selling price stated in the sales contract. The price does not include consumption tax and other expenses relating to

issuance (selling fees, public charges)2 The figures for Aoyama Suncrest Bldg., Round-Cross Tsukiji, Carrot Tower, Toyo MK Bldg., DT Gaien, Seafort Square Center Bldg., Neo-City Mitaka,

Grand Maison Hakusan, Sonet Kami Ikebukuro show the value of the portion owned by ORIX JREIT 3 “Ratio” shows the ratio of the acquisition price of individual properties under management vs. total acquisition price4 “Ratio” is rounded up to one digit below decimal point. Total “acquisition price ratio” may not equal to the sum of the individual values due to rounding5 Properties acquired in 11th period are highlighted in red. Nihonbashi Honcho 1-chome bldg. was acquired on Mar 28, 2007, Round-Cross Shinjuku 5-

chome was acquired on Apr 26 2007, KN Jiyugaoka Plaza was acquired on May 30 2007, and Lunar Sendai was acquired on Jun 28 2007.6 Following properties have been renamed as follows:

Date of Change Former Name New NameApr 1 2007 Landic Minami Azabu Bldg. Round-Cross Minami AzabuMay 1 2007 Landic Akasaka 2 Bldg. Round-Cross AkasakaMay 1 2007 Landic Nagai Bldg. Round-Cross TsukijiJun 1 2007 Nikko Ichiban-cho Bldg. Round-Cross Ichi-banchoAug 1 2007 Nikko Moto Yoyogi Bldg. Round-Cross Moto YoyogiAug 1 2007 Landic Mita Bldg. 2 Round-Cross Mita

7 Acquisition price (JPY 4,000 mn) for 1 property by OJR WAY (Koshigaya Logistic Center) accounts for 1.7% of total acquisition (JPY 235,625mn).8 The financial statements approved by the boards on Oct 19, 2007. This procedure was based on Law Concerning Investment Trusts and Investment

Corporations of Japan9 GFA is as of Aug 31, 2007

Portfolio summaryThe assets under management are as follows as of Oct 19, 2007.

Type Area Name of building AddressGFA(㎡) Year Built

AcquisitionPrice

(JPY mn)Ratio(%)

Aoyama Suncrest Bldg. Minato-ku, Tokyo 2,769.48 Sep-79 3,356 1.4Round-Cross Ichiban-cho Chiyoda-ku, Tokyo 3,300.66 Mar-94 3,900 1.7Beside Shirogane Minato-ku, Tokyo 2,088.58 Sep-89 1,300 0.6Round-Cross Aoyama Minato-ku, Tokyo 3,191.00 Oct-86 4,529 1.9Round-Cross Akasaka MitsukeMinato-ku, Tokyo 1,323.28 Feb-88 1,650 0.7Nihonbashi East Bldg. Chuo-ku, Tokyo 2,270.04 Oct-89 1,720 0.7Round-Cross Minami Azabu Minato-ku, Tokyo 3,172.76 May-92 1,394 0.6Round-Cross Akasaka Minato-ku, Tokyo 2,786.32 Oct-78 2,624 1.1Round-Cross Mita Minato-ku, Tokyo 2,298.23 May-90 1,748 0.7Shiba Daimon Bldg. Minato-ku, Tokyo 2,588.50 Oct-88 2,195 0.9Round-Cross Tsukiji Chuo-ku, Tokyo 3,996.89 May-92 3,378 1.4Orix Jimbo-cho Bldg. Chiyoda-ku, Tokyo 3,211.50 Mar-97 4,177 1.8Orix Shiba 2-chome Bldg. Minato-ku, Tokyo 6,753.13 Jan-03 7,500 3.2Aoyama 246 Bldg. Minato-ku, Tokyo 2,403.32 Nov-90 5,200 2.2Orix Akasaka 2-chome Bldg. Minato-ku, Tokyo 10,350.35 Nov-04 21,860 9.3Nihonbashi Honcho1-chome Bldg. Chuo-ku, Tokyo 5,099.70 Mar-06 10,500 4.5

Carrot Tower Setagaya-ku, Tokyo 6,939.10 Nov-96 5,479 2.3Toyo MK Bldg. Koto-ku, Tokyo 9,805.80 Apr-97 5,270 2.2Round-Cross Moto Yoyogi Shibuya-ku, Tokyo 7,723.68 Apr-92 5,091 2.2Round-Cross Nishi Shinjuku Shinjuku-ku, Tokyo 1,248.18 Jun-99 2,650 1.1Beside Kiba Koto-ku, Tokyo 4,824.68 Aug-91 2,450 1.0DT Gaien Shibuya-ku, Tokyo 2,567.50 Feb-90 2,430 1.0Yoyogi Forest Bldg. Shibuya-ku, Tokyo 1,912.42 Jun-87 1,473 0.6Orix Ikebukuro Bldg. Toshima-ku, Tokyo 5,539.92 Jul-02 9,577 4.1Orix Shinjuku Bldg. Shinjuku-ku, Tokyo 6,207.76 May-03 8,300 3.5Round-Cross Shinjuku Shibuya-ku, Tokyo 4,736.17 Oct-05 8,020 3.4Seafort Square Center Bldg. Shinagawa-ku, Tokyo 22,007.87 Jun-92 18,000 7.6Round-Cross Kamata Ohta-ku, Tokyo 7,900.10 Feb-94 5,640 2.4Round-CrossShinjuku 5-chome Shinjuku-ku, Tokyo 3,089.29 Oct-06 4,500 1.9

KN Jiyugaoka Plaza Meguro-ku, Tokyo 1,231.44 Dec-01 3,110 1.3

Toky

o ce

ntra

l 3 w

ards

Oth

er T

okyo

war

ds

Offi

ce s

ecto

r

Type Area Name of building AddressGFA(㎡) Year Built

AcquisitionPrice

(JPY mn)Ratio(%)

Neo-City Mitaka Mitaka-City, Tokyo 4,622.21 Sep-93 2,200 0.9

Round-Cross Kawasaki Kawasaki-City,Kanagawa 5,519.91 Jan-93 4,130 1.8

Nagoya Itochu Bldg. Nagoya-City, Aichi 11,204.85 Feb-81 4,500 1.9Round-Cross Shinsaibashi Osaka-City, Osaka 16,470.72 Apr-86 13,600 5.8ORIX Koraibashi Bldg. Osaka-City, Osaka 6,857.61 Jul-04 5,560 2.4ORE Nagoya Fushimi Bldg. Nagoya-City, Aichi 12,216.13 Feb-04 10,040 4.3Lunar Sendai Sendai-City, Miyagi 9,954.82 Feb-98 8,500 3.6

210,183.90 207,551 88.1

Toky

oce

ntra

l3

war

ds Nihon JishoMinami Aoyama Bldg. Minato-ku, Tokyo 997.36 Nov-97 2,548 1.1

Oth

erTo

kyo

war

ds

CUBE Daikanyama Shibuya-ku, Tokyo 899.82 Jan-03 2,435 1.0

1,897.18 4,983 2.1

Toky

oce

ntra

l3

war

ds Park AxisNishi Azabu Stage Minato-ku, Tokyo 1,337.31 Apr-00 1,219 0.5

Grand Maison Hakusan Bunkyo-ku, Tokyo 1,160.17 May-93 455 0.2Sonet Kami Ikebukuro Toshima-ku, Tokyo 5,853.00 Feb-97 2,377 1.0

8,350.48 4,051 1.7

Gre

ater

Toky

oar

ea Cross Gate Yokohama-City,Kanagawa 25,942.59 Sep-00 15,040 6.4

25,942.59 15,040 6.4

Gre

ater

Toky

oar

ea Koshigaya Logistics Center Koshigaya-City,Saitama 19,200.00 Jan-06 4,000 1.7

19,200.00 4,000 1.7Total 265,574.15 235,625 100

Hot

else

ctor

Logi

stic

sse

ctor

Logistics sector　 Total

Hotel sector　 Total

Office sector　 Total

Retail sector　 Total

Res

iden

tial

sect

or

Residential sector　 Total

Ret

ail s

ecto

r

Oth

erTo

kyo

war

ds

Offi

ce s

ecto

r

Oth

er a

reas

Gre

ater

Toky

o ar

ea

25


Portfolio Map　

26


Diversification of Portfolio (Slide 1 of 2)

Average acquisition price of properties Property size *

100億円以上26.72%

10億円未満7.16%

Acquisition price Building age

End of 1st period(Aug. 31, 2002)

15-20yr6.2%

10-15yr

29.6%

5-10yr

24.8%

Under 5yr19.0%

Over 20yr20.4% Under 5yr

35.1%

5-10yr

18.1%

10-15yr14.3%

15-20yr19.8%

Over 20yr12.8%

1 to5 billion yen

50.2%

Under 1 billion yen7.2%

5 to 10 billion yen

15.9%

Over 10 billion yen26.7%

Over 10 billion yen37.8%

5 to10 billion yen31.5%

1 to5 billion yen

30.6%

Under 1 billion yen0.2%

End of 11th period(Oct. 19, 2007)

Over 15,000m2

33.2%

13,000m2 to

58.0%15,000m2

Under 3,000m2

8.8%Over 15,000m2

40.3%

13,000m2 to

46.0%

15,000m2

Under 3,000m2

13.6%

Average10.4 yr

Average12.1 yr

Average15,734

m2

Average23,638

m2

Average2.55 billion yen

Average5.35 billion yen

Sold after IPO Acquired after IPO(incl. anticipated acquisition)

1.82

7.59 (Billion yen)





27*Property size (building floor area) is based on entire floor area of property, and is not adjusted by share of ORIX JREIT holdings.


Diversification of Portfolio (Slide 2 of 2)

Tokyo central 3 wards

34.3％Other Tokyo 23 wards

37.0%

Greater Tokyo

10.8％

Other cities

17.9％

Area Type

Investment style

Office79.4%

Retail1.5％

Residential4.1％

Hotel15.1％


45.8％

34.8%

Other Tokyo 23 wards

17.3％Greater Tokyo

Other cities2.1％

Hotel Logistics

Office88.1%

Retail2.1％

6.4％ 1.7％

1st Fiscal Period(As of Aug. 31, 2002)

End of 11th period(As of Oct. 19, 2007)



Residential1.7％

Basic100.0%

Basic98.3%

OJR WAY1.7%



28


Major Tenants

Major 10 tenants at the end of the 11th period (Reference: Major 10 tenants at the end of the 10th period)

1 Fujita Kanko Co.,Ltd Hotel Cross Gate 19,744.39 7.6

2 Nondisclosed －－ 19,200.00 7.4

3 ITOCHU Corporation Wholesale Nagoya Itochu Bldg. 9,200.22 3.5

4 NIKE JAPAN CORP. Wholesale Seafort square Center Bldg. 8,832.49 3.4

5 FUJITSU CHUBU SYSTEMS LIMITED

Software Development

ORE Nagoya Fushimi Bldg. 7,466.70 2.9

6 Nondisclosed －－ 7,387.13 2.8

7 Housing Kousan Co.,Ltd. Real Estate Sonet Kami Ikebukuro 5,853.00 2.2

8 Nondisclosed －－ 5,060.30 1.9

9Asunaro Aoki Construction Co., Ltd.

Construction

ORIX Shiba2-chome Bldg. 4,906.46 1.9

ORIX Shinjuku Bldg. 894.26 0.3

ORIX Shinjuku Bldg. 554.05 0.2

ORIX Koraibashi Bldg. 468.92 0.2

Cross Gate 2,655.04 1.0

92,222.96 35.3Total

Leased area(m2)

Ratio of all leased areas （%）

10 ORIX Corporation Finance

Tenant name Sector Property name

1 19,744.39 8.2

2 Nondisclosed 19,200.00 7.9

3 9,200.22 3.8

4 8,832.49 3.7


6 6,936.80 2.9

7 5,853.00 2.4


9Asunaro Aoki Construction Co., Ltd. 4,906.46 2.0

894.26 0.4

554.05 0.2

468.92 0.2

2,655.04 1.1

91,693.06 37.9Total

Leased area(m2)

Ratio of all leased areas (%)

10 ORIX Corporation

Tenant name

Fujita Kanko Co.,Ltd

ITOCHU Corporation

NIKE JAPAN CORP.

FUJITSU CHUBU SYSTEMS LIMITED

Housing Kousan Co.,Ltd.

29


Seismic risk－Portfolio PML

30

PML% of replacement

Replacement cost(billion yen)


Aoyama Suncrest Bldg. 11 2.40Round-Cross Ichi-bancho Bldg. 11 1.60Beside Shirogane 13 1.06Round-Cross Aoyama 11 1.05Round-Cross Akasaka Mitsuke 12 0.41Nihonbashi East Bldg. 16 0.90Round-Cross Minami Azabu 8 0.99Round-Cross Akasaka 18 0.74Round-Cross Mita 16 0.82Shiba Daimon Bldg. 14 0.80Round-Cross Tsukij 13 1.52ORIX Jimbo-cho Bldg. 11 1.12ORIX Shiba 2-chome Bldg. 13 2.00Aoyama 246 Bldg. 14 0.70ORIX Akasaka 2-chome Bldg. 12 3.79Nihonbashi Honcho 1-chome Bldg. 14 1.94

Other Tokyo wards

Carrot Tower 4 24.00Toyo MK Bldg. 13 3.43Round-Cross Moto Yoyogi 10 3.56Round-Cross Nishi Shinjuku 13 0.40Beside Kiba 12 1.55DT Gaien 11 1.40Yoyogi Forest Bldg. 13 0.71ORIX Ikebukuro Bldg. 10 1.40ORIX Shinjuku Bldg. 12 1.95Round-Cross Shinjuku 14 1.40Seafort Square Center Bldg. 9 40.11Round-Cross Kamata 14 2.66Round-Cross Shinjuku 5-chome 12 1.07KN Jiyugaoka Plaza 14 0.34

Greater Tokyo Neo City Mitaka 9 4.40Round-Cross Kawasaki 17 1.94

Other cities Nagoya Itochu Bldg. 17 4.08Round-Cross Shinsaibashi 13 4.82ORIX Koraibashi Bldg. 3 2.21ORE Nagoya Fushimi Bldg. 3 3.74Lunar Sendai 7 4.12

Tokyo central 3 wards Nihon Jisho Minami Aoyama Bldg. 10 0.18Other Tokyo wards CUBE Daikanyama 10 0.19Tokyo central 3 wards Park Axis Nishi Azabu Stage 10 0.39Other Tokyo wards Grand Maison Hakusan 13 0.59

Sonet Kami Ikebukuro 11 2.30Hotel sector Greater Tokyo Cross Gate 4 12.34Logistics sector Greater Tokyo Koshigaya Logistics Center 12 1.70

Residential sector

Name of building

Seismic risk analysis

Retail sector

Office sector

Portfolio PML: 6.6%

PML shows the estimated costs to recover buildings in the event of an earthquake. The figures are based on the probability of an earthquake that may occur every 475 years, and shows the percentage of construction costs to replacement value. This seismic risk analysis was done by Shimizu Kensetsu.


Cash ManagementDepreciation/CAPEX/Cash balance CAPEX/Repairs and maintenance costs

0

0.2

0.4

0.6

0.8

1.0


Repairs and maintenance costs

CAPEX(Billion yen)

0

0.5

1.0

1.5

2.0

7th 8th 9th 10th 11th0

7.0

14.0

21.0

(Billion yen)

Depreciation (Lh)CAPEX (Lh)Cash and cash equivalent (Rh)* (Billion yen)

Depreciation 1.11 1.18 1.35 1.42 1.58CAPEX 0.71 0.48 0.65 0.12 0.19Cash and cash equivalent* 17.94 17.33 16.96 16.90 12.72

* Cash and deposits - fixed deposits longer than three months

CAPEX 0.71 0.48 0.65 0.12 0.19Repair cost 0.17 0.12 0.21 0.16 0.13Total 0.89 0.61 0.86 0.29 0.33

31


Investors and Investment Units (Slide 1 of 2)Unit price and volume trends Major unit holders

(As of August 31, 2007)

Note: Ratio of ownership is rounded down to the second decimal place.

1.563,517The Hiroshima Bank, Ltd.

2.505,656AIG Star Life Insurance Co., Ltd.General account

1.864,205American Life Insurance Company GAL

7.6717,293ORIX Life Insurance Corporation

6.9315,635NikkoCiti Trust and Banking Corporation (Investment accounts)

7.7517,488Japan Trustee Services Bank, Ltd.(Trust accounts)

8.6019,403The Master Trust Bank of Japan, Ltd.(Trust accounts)

No. of units held/units outstanding

No. of unitsName

50.00112,693Total

2.846,421The Bank of New York Treaty JASDAQ Account

4.059,147The Nomura Trust and Banking Co., Ltd. (Investment accounts)

6.1813,928Trust and Custody Services Bank, Ltd.(Securities investment trust accounts)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0

200

400

600

800

1,000

1,200

1,400

Trading volume (Lh) Unit price (Rh)

2005/3/1 2005/9 2006/3 2006/9 2007/3 2007/8/31

(Thousand yen)(Units)


32


17.16%(38,670)

14.42%(32,507）

59.48%（134,041）

56.11%（126,458）

2.26%（5,091）

2.40%（5,418）

24.33%（54,826）

23.84%（53,733）

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

96.66%(13,753）

96.91%(15,661)

0.62%（100）

0.75%（106）

1.44%（233）

1.47%（209）

1.12%（160）

1.03%（167)

Retail and others Financial institution (incl. securities brokers)

Other corporation Overseas

10th periodTotal (16,161)




Investors and Investment Units (Slide 2 of 2)

Breakdown of financialinstitutions

Breakdown by number of investors

Bank 23 0.14% 22 0.15% 19,200 8.52% 16,812 7.46%Trust Bank 12 0.07% 12 0.08% 61,187 27.15% 77,556 34.41%Life Insurance 12 0.07% 12 0.08% 31,819 14.12% 27,597 12.25%Fire and Marine Insurance 4 0.02% 3 0.02% 6,906 3.06% 4,102 1.82%Other Financial 31 0.19% 34 0.24% 5,709 2.53% 6,052 2.69%Securities Brokers 18 0.11% 23 0.16% 1,637 0.73% 1,922 0.85%

Total 100 0.62% 106 0.75% 126,458 56.11% 134,041 59.48%

Number of investors10th 11th

Number of units10th 11th

Breakdown by number of units

33


Asset Management Company: ORIX Asset Management Corporation

(Financial products transaction license, Director of Kanto Local Finance Bureau, Registration No. 315; Member of The Investment Trusts Association)

The contents of this document, including summary notes, quotes, data and other information, are provided solely for informational purpose and are not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell, any specific products. Please be aware that matters described herein may change or cease to exist without prior notice of any kind. This document contains forward-looking statements, including anticipations of future results, based on current assumptions and beliefs in the light of currently available information and resources. Risks and uncertainties, both known and unknown, including those relating to the future performance of the property market in Japan, interest rate fluctuations, competitive scenarios, and changing regulations or taxations, may cause ORIX JREIT’s actual results, performance, achievements and financial performance to be materially different from those as explicitly or implicitly expressed in this document. With respect to any and all terms in this document, the information provided is intended to be thorough. However, no absolute assurance or warranties are given with respect to the accuracy or completeness thereof. Neither ORIX JREIT nor ORIX Asset Management Corporation shall be liable for any errors, inaccuracies, losses or damages, or for any actions taken in reliance thereon, or undertake any obligation to publicly update the information contained in this document after the date of this document.

Documents

ORIX JREIT Inc.ORIX JREIT Inc. 11th Fiscal Period: Forecast vs. Actual 2 * Compared with forecast issued on April 19, 2007 in conjunction with release of business results for 10th