During the first half of FY2011, the Japanese economy saw continual difficulties as corporate manufacturing and individual consumption were temporarily sluggish due to the effects of the Great East Japan Earthquake and Tsunami. While seeing movement toward gradual recovery backed by the restoration of supply chains for parts and components, and the impact of various government measures, the future of the economy is still unclear due to the yen’s sharp climb, falling stock prices, risks of economic downturns overseas, and other factors.

Vacancy rates for office buildings still hover at high levels and the rental market remains soft.

Our group has taken a proactive stance in expanding business activities in the face of these difficulties. We have also strived to improve tenant services by remodeling existing buildings. As a result, we were able to maintain high overall occupancy rates.

In addition, we took various steps to save electricity in our owned buildings to address last summer’s power shortage. We succeeded in achieving our initial target thanks to the understanding and cooperation of all parties concerned including our tenants.

Construction work of the Daibiru Honkan Building is progressing smoothly toward completion in end February 2013. On the Shin Daibiru Building rebuilding project, demolition work on the above-ground part of the old building finished in September 2011, and preparations for the start of the new building construction during FY2012 are under way.

Looking at the consolidated financial results for the first half of FY2011, operating revenue decreased by ¥564 million, or 3.2% year on year, to ¥16,827 million, and operating income increased by ¥62 million, or 1.2% year on year, to ¥5,154 million.

While non-operating income and expenses reflected a decrease in non-operating expenses, and so on, ordinary income increased by ¥234 million, or 5.4% year on year, to ¥4,580 million.

Turning to extraordinary income and loss for the first half of FY2011, we posted a total of ¥1,063 million in extraordinary losses, for example, a loss on building reconstruction and a valuation loss on investment securities. On the other hand, we posted gains totaling ¥715 million year on year on sales of investment securities and sales of fixed assets for extraordinary income. We also posted a total of ¥3,688 million in extraordinary losses including the loss on building reconstruction, valuation loss on investment securities, and a loss on disposal of fixed assets.

Consequently, net income for the first half of FY2011 increased by ¥1,366 million, or 210.5% year on year, to ¥2,016 million.

The interim dividend for the current fiscal year (fiscal 2011) was ¥5.5 per share, the same as the previous year.