This translation of the original Japanese Notice is provided solely for information purposes. Should there be
any discrepancy between this translation and the Japanese original, the latter shall prevail.

REIT Financial Report for the 18th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:

January 23, 2015
Daiwa Office Investment Corporation
Stock Exchange Listing: TSE
8976
URL: http://www.daiwa-office.co.jp
Nobuaki Omura, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Akira Yamanouchi, President and Representative Director
Yuji Shinotsuka, Vice President and Representative Director
TEL: +81-3-6215-9649
and Head of Finance Department

Scheduled date of submission of periodic securities report (yuka shoken hokokusho):Scheduled date of start of distribution payments:
Preparing presentation material:
Holding financial brief meeting:February 23, 2015
February 13, 2015

Yes
Yes (for institutional investors and analysts)[Amounts are rounded down to the nearest million yen, except for per unit figures]

1. Status of Management and Assets for the 18th Fiscal Period
18th Fiscal Period: Fiscal period ended November 2014 (from June 1, 2014 to November 30, 2014)
17th Fiscal Period: Fiscal period ended May 2014 (from December 1, 2013 to May 31, 2014)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
18th
Period17th
PeriodOperating income

Ordinary income

Net income¥9,763 million

13.7%¥4,438 million

18.0%¥3,642 million

21.2%¥3,641 million

20.7%¥8,587 million

1.8%¥3,760 million

2.3%¥3,005 million

1.7%¥3,016 million

1.9%

Net income
per unit
18th
Period17th
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥8,414

1.7%

0.9%

37.3%

¥7,620

1.5%

0.8%

35.0%

(2) Distributions
Distribution amount
per unit(excluding distribution
amount in excess of earnings)

18th
Period17th
PeriodTotal distribution amount(excluding distribution
amount in excess of earnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Distribution
amount to
net assets

Dividend
payout¥8,256¥3,640 million¥0¥– million

100.0%

1.6%¥7,621¥3,016 million¥0¥– million

100.0%

1.5%(3) Financial Position
Total assets
18th
Period17th
PeriodUnitholders’ equity tototal assets

Net assets

Net assets
per unit¥399,555 million¥222,593 million

55.7%¥504,746¥380,723 million¥201,655 million

53.0%¥509,490-1-Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period(4) Cash FlowsNet cashprovided by (used in)operating activities
18th
Period17th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥4,886 million(¥24,030 million)¥14,373 million¥17,767 million¥7,969 million(¥15,396 million)¥13,040 million¥22,537 million

2. Management Status Forecasts for the 19th Fiscal Period and 20th Fiscal Period
19th Fiscal Period: Fiscal period ending May 2015 (from December 1, 2014 to May 31, 2015)
20th Fiscal Period: Fiscal period ending November 2015 (from June 1, 2015 to November 30, 2015)[% figures show the period-over-period increase (decrease)]

Operating revenue
19th
Period20th
PeriodOperating income

4.7%¥4,680 million

5.4%¥3,911 million

7.4%¥3,884 million

6.7%¥10,284 million

0.6%¥4,749 million

1.5%¥3,971 million

1.5%¥3,969 million

2.2%

Distribution amount per unit

(Reference)

Net income¥10,221 million(excluding distribution amount in excess of earnings)

19th
Period20th
PeriodOrdinary income

Distribution amount in excess of earnings per unit

¥8,700¥0¥9,000¥0

Estimated net income per unit for the 19th Fiscal Period: ¥8,808; 20th Fiscal Period: ¥9,000

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies due to amended accounting standards, etc.:
None(ii) Changes in accounting policies other than (i):None(iii) Changes in accounting estimates:None(iv) Retrospective restatement:
None(2) Number of Investment Units Issued and Outstanding(i) Number of investment units issued and outstanding at end of period (including treasury units):
18th Fiscal Period: 441,000 units
17th Fiscal Period:(ii) Number of treasury units at end of period:
18th Fiscal Period:– units
17th Fiscal Period:

395,798 units– units(Note) Please refer to “Notes to Per Unit Information” on page 28 for the number of investment units used as the basis for calculating the net
income per unit.
*Explanation on the Appropriate Use of the Management Status Forecasts, and Other Matters of Special Note
The forecast figures set forth herein are the current prospects based on information currently available to the Investment Corporation and containelements of uncertainty. Accordingly, the actual operating revenue, operating income, ordinary income, net income and distribution amount per unit
may vary due to changes in the status. Moreover, the forecasts set forth herein should not be construed as a guarantee of distribution amounts. For
details on the assumptions underlying the forecast figures above, please refer to “2. Management Policy and Management Status; 2.2. Management
Status; Assumptions for the Management Status Forecasts for the 19th Fiscal Period and 20th Fiscal Period” on page 10.

-2-Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
Disclosure is omitted because there are no significant changes from the “Structure of the Investment Corporation” set out inthe most recent periodic securities report (yuka shoken hokokusho) (submitted on August 25, 2014).

2. Management Policy and Management Status
2.1. Management Policy
Disclosure is omitted because there are no significant changes from the “Investment Policy,” “Investment Target” and“Distribution Policy” set out in the most recent periodic securities report (yuka shoken hokokusho) (submitted on August25, 2014) as at the date of this document.
2.2. Management Status(1) Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Investment Corporation was established on July 11, 2005 in accordance with the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate AssetManagement Co., Ltd. (former name K.K. daVinci Select) (the “Asset Manager”) as the organizer. After its
establishment, the Investment Corporation implemented an additional issuance of investment units through a public
offering (99,600 units) on October 18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE) Real Estate
Investment Trust Section (stock code: 8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price), subsequent
activities, such as additional acquisition of properties and replacement of portfolio properties, resulted in the assets
under management amounting to 387,557 million yen as of the last day of November 2014.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets based ona clear portfolio development policy of specializing in investment in office buildings, with a particular focus on
investment in a total floor area of more than about 2,000m2 situated in downtown Tokyo, as well as through dedicatedefforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment (from June 2014 to November 2014)
The Japanese economy during the fiscal period under review saw a recovery of corporate performance due to the Abeadministration’s economic policies and the continuation of large-scale monetary easing policy of Bank of Japan as wellas due to the gradual increase of exports centering on the US with the depreciation of the yen, recovery of consumption
due to the asset effect accompanying high stock prices, front-loading of public investment and such. In addition, thenegative impact on consumption following the consumption tax hike is thought to have generally subdued and theJapanese economy is expected to gradually recovery such as with the impact of wage growth due to the improvementof corporate employment.
In the office building leasing market in central Tokyo, with new supply having settled down, the vacancy rate took aturn after peaking in June 2013, dropping to 5.55% at the end of November 2014. Led by improvement in the vacancy
rate for large buildings, the overall vacancy rate that includes small- to medium-sized buildings is also on an improving
trend. The drop in the vacancy rate is leading to a stronger sense that office rent is also bottoming out, and rent
increases were seen for large buildings in some areas. The market as a whole continues to see increase in rent, albeit
slight.
For the office building transaction market, an appetite for property acquisitions continued to be strong among realestate companies and funds (including J-REITs) with the continuing favorable equity procurement environment andproactive lending attitude by financial institutions backed by the forecast of an increase in property prices inaccordance with expectations for economic recovery.
b. Management Performance
In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sales of properties) overthe medium to long term, the Investment Corporation continued to work on “external growth,” which aims to boost
revenue through acquisition of properties, and “internal growth,” which aims to maximize income generating fromexisting properties.
Concerning external growth, the Investment Corporation acquired “Azabu Green Terrace” (acquisition price: 14,000
million yen) in July 2014 and “Kitahama Grand Building” (acquisition price: 9,481 million yen) in August 2014. As aresult, the Investment Corporation’s assets under management as of the end of the 18th Fiscal Period (November 30,2014) totaled 46 properties, the sum total of acquisition prices of which amounted to 387,557 million yen.
Concerning internal growth, while the office leasing market weakened, the Investment Corporation conducted
proactive leasing, such as capturing needs for floor expansion within the same property through strengthening
relationships with existing tenants and reinforcing collaboration with leasing brokers and property managers. As aresult, the occupancy rate as of the end of the 18th Fiscal Period (November 30, 2014) was 97.2%.
C. Overview of Capital Procurementa. Procurement of Capital for New Property Acquisitions
In the 18th Fiscal Period, the Investment Corporation issued the following investment units to fund the acquisition of
new properties.

-3-

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period・A public offering of 41,092 issued units at 450,746 yen per unit, a total paid-in price of 18,522,054,632 yen with thepayment date on July 2, 2014, as well as a third-party allotment of 4,110 issued units at 450,746 yen per unit, a total
paid-in price of 1,852,566,060 yen with the payment date on July 30, 2014 were implemented to fund the acquisitionof new properties (Azabu Green Terrace (acquired July 4, 2014) and Kitahama Grand Building (acquired August 1,2014)).
b. Procurement of Capital for Repayment of Borrowings and Redemption of Investment Corporation Bonds
In the 18th Fiscal Period, the Investment Corporation made the following borrowings and issuance of investment
corporation bonds to fund the repayment of borrowings that were due for repayment and early redemption of
investment corporation bonds.
・A total amount of 17,500 million yen was borrowed from Sumitomo Mitsui Banking Corporation, Mizuho Trust &Banking Co., Ltd. and Shinsei Bank, Ltd. on July 8, 2014 to fund part of the repayment of the 19,000 million yen
borrowed from Sumitomo Mitsui Banking Corporation, Mizuho Trust & Banking Co., Ltd., Aozora Bank Ltd. andShinsei Bank, Ltd. that was due for repayment on July 8, 2014.
・The 3rd unsecured investment corporation bonds of 3,000 million yen and 4th unsecured investment corporation
bonds of 2,100 million yen were issued on September 12, 2014 to fund part of the repayment of the 3,000 million
yen borrowed from Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank Limited that was due
for repayment on September 17, 2014 and the early redemption of 3,500 million yen of the 1st unsecured investment
corporation bonds that was due on September 17, 2014.
c. Status of Interest-Bearing Liabilities at End of the Fiscal Period under Review
As a result of the above, the balance of interest-bearing liabilities outstanding as of the end of the 18th Fiscal Period(November 30, 2014) stood at 160,800 million yen (short-term loans payable: 2,500 million yen; long-term loans
payable: 153,200 million yen; investment corporation bonds: 5,100 million yen). The balance of the current portion of
long-term loans payable stood at 16,600 million yen.
Concerning borrowings in the 18th Fiscal Period, the Investment Corporation made borrowings centering on periodsof between 6 years and 8 years, extending the average remaining period from 3.82 years (17th Fiscal Period) to 4.39
years (18th Fiscal Period). Furthermore, liabilities costs were lowered by reducing credit spreads. Furthermore, theInvestment Corporation concluded the interest-rate swap agreement in the 18th fiscal Period to fixate future interest
payment for the total borrowing of 20,300 million yen in order to offset the risks of the possible increase of the interest
rate.
List of Borrowings in the 18th Fiscal Period
Loan amount(million yen)
2,000
3,000
2,000
3,500
4,000
1,000
2,000

LenderSumitomo Mitsui Banking Corporation
Mizuho Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Shinsei Bank, Ltd.
Sumitomo Mitsui Banking Corporation

Drawdown
date
2014/7/8
2014/7/8
2014/7/8
2014/7/8
2014/7/8
2014/7/8
2014/7/8

Repayment
date
2019/11/29
2020/11/30
2020/11/30
2021/11/30
2022/5/31
2022/8/31
2022/11/30

Balance of Borrowings from Each Financial Institution (as of November 30, 2014)
End of the 18th Fiscal Period
Lender(million yen)
Sumitomo Mitsui Banking Corporation
31,400Sumitomo Mitsui Trust Bank, Limited
19,350Development Bank of Japan Inc.
18,750Mizuho Bank, Ltd.
13,900
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
11,500Shinsei Bank, Ltd.
11,000Resona Bank, Ltd.
9,000
Mitsubishi UFJ Trust and Banking Corporation
5,000
Kansai Urban Banking Corporation
5,000
Mizuho Trust and Banking Co., Ltd.
5,000
Aozora Bank, Ltd.
4,500
The Bank of Fukuoka, Ltd.
4,000
ORIX Bank Corporation
2,500
The Gunma Bank, Ltd.
2,500
-4-

Loan
period
5.4 years
6.4 years
6.4 years
7.4 years
7.9 years
8.2 years
8.4 years

Share
20.17
12.43
12.04
8.93
7.39
7.06
5.78
3.21
3.21
3.21
2.89
2.57
1.61
1.61

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
The Shizuoka Bank, Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Musashino Bank, Ltd.
The Higashi-Nippon Bank, Limited
The Hiroshima Bank, Ltd.
The Kagawa Bank, Ltd.
The 77 Bank, Ltd.
The Bank of Yokohama, Ltd.
The Yamaguchi Bank, Ltd.
Taiyo Life Insurance Company
Nippon Life Insurance Company
Fukoku Mutual Life Insurance Company
Total(Note 1) Share is rounded to two decimal places.

2,000
2,000
2,000
1,500
1,000
1,000
1,000
500
500
300
300
200
155,700

1.28
1.28
1.28
0.96
0.64
0.64
0.64
0.32
0.32
0.19
0.19
0.13
100.00%b. Rating Information (as of November 30, 2014)
Credit rating agency
R&I
Japan Credit Rating Agency

RatingA+
AA-

Outlook
StableStablec. Shelf Registration
The Investment Corporation filed a shelf registration statement on July 17, 2014 as below.
Investment corporation bonds (excluding short-term investment corporation bonds)
Planned issue amount
100 billion yen
Planned issue period
From July 25, 2014 to July 24, 2016
Funds for acquisition of specified assets, repayment of loans, redemption of investment
corporation bonds (including short-term investment corporation bonds), refund of
Use of funds
leasehold and security deposits, and payment of repairs, etc.; funds for working capital;etc.
D. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance for the 18th
Fiscal Period of 9,763 million yen in operating revenue, 4,438 million yen in operating income, 3,642 million yen in
ordinary income and 3,641 million yen in net income.
Concerning distributions, to ensure that the amount equivalent to distributions from earnings would be included in
the amount of tax-deductible expenses based on application of special provisions for taxation of corporation tax(Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957; including amendments
thereto) (the “Special Taxation Measures Act”)), the Investment Corporation decided to distribute the entire amount of
unappropriated retained earnings, excluding fractions of the distribution amount per unit that are less than 1 yen.
Accordingly, the Investment Corporation declared a distribution amount per unit of 8,256 yen.

-5-

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period(2) Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy ahead is expected to see the ongoing various economic measures, centering on the public works
projects and financial policies promoted by the Abe administration, and the large-scale monetary easing policy
implemented by Bank of Japan as well as pickup in overseas economies, centering on developed countries, lead tomoderate economic recovery through improvement in corporate performance, centering on public-investment- andexports-related companies, and recovery in personal spending. However, factors such as the confusion of the Japanesefinancial market given the postponement of the consumption tax hike and the turmoil in overseas economies / overseas
financial markets with the emergence of geopolitical risks pose potential risks of disrupting the Japanese real economy
and financial environment and are thus thought to require attention.
In the office building leasing market, while new supply is decreasing, factors such as improvement in employment
are stimulating demand, resulting in the vacancy rate dropping. Improvement in corporate performance is forecast to
increase demand for office floor space and rent is expected to improve as a consequence. In the office building
transaction market, backed by the favorable financing environment and expectations of rent rising, among other factors,
property acquisition appetite among investors overseas, real estate companies and funds (including J-REITs) is thought
to grow even stronger.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Under the office leasing market conditions described above, the tenant side is also expected to become more selectivewith properties. Consequently, the Investment Corporation will carry out operational management under thefollowing policy with an aim to enhance the competitiveness of existing properties and thereby increase the long-term
EPS over the medium to long term.
(i) Maintain and raise occupancy rates
Concerning existing tenants, strive to reduce vacancy risks by improving the quality of buildings, equipment andmanagement system. In addition, concerning new tenants, strive to maintain and raise occupancy rates throughthe provision of services that are of higher satisfaction levels than competing properties through proactive
participation in the market.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium to long term through further strengthening good relationships
with existing tenants, as well as proactively tapping the needs of new tenants by discerning the market
environment.
(iii) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of high tenantsatisfaction levels by implementing efficient operational management and reviewing systematic construction
work by optimally leveraging the economies of scale achieved from proactively realizing external growth.
b. Strategy for New Property Investments
The Investment Corporation will invest in office buildings that have a total floor area of about 2,000m2 or more basedon various external growth strategies, while maintaining a balance with the asset acquisition environment andfinancing situation. In principle, considerations will focus on Tokyo as the investment target area, but the Investment
Corporation will also consider investing in competitive properties in cities other than Tokyo from a viewpoint ofterritorially-distributed investments.
As pipeline support, in addition to expanding its own information-sourcing channels, the Investment Corporation
will continue to search for properties that meet its investment criteria by proactively gathering real estate transaction
market information through greater collaboration with the Asset Manager and Sponsor Group and utilizing theGroup’s extensive network of clients, partners, etc.
In the 18th Fiscal Period, the Investment Corporation acquired “Azabu Green Terrrace,” which is located in Tokyoand “Kitahama Grand Building” which is located in Osaka. The Investment Corporation believes that acquisition ofthese properties will contribute to further stabilization and enhancement of the portfolio. The Investment Corporation
will continue to strive to acquire properties in line with the investment strategy described above.
c. Financial Strategy
The Investment Corporation will conduct disciplined financial management of the following basic content.
(i) Control leverage by keeping the ratio of interest-bearing liabilities (LTV) to total assets within the range of 40%
to 50% at maximum, taking into consideration also the real LTV, etc., as a principle.
(ii) Diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing liabilities
that shall become due during any single fiscal period as a principle.
(iii) Aim to have long-term loans account for at least 70% of total loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.
(v) Pursuant to its fund management rules, maintain stability in its financial standing by managing necessary funds,
such as the amount equivalent to distributions paid, separately from working capital.

-6-

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
C. Significant Subsequent Events① Acquisition of Assets
a. The Investment Corporation acquired a trust beneficial interest in real estate on December 1, 2014 as follows.
Summary of Asset Acquired
Property name
Type of asset
Location
Acquisition priceDate of conclusion of purchase agreement
Date of delivery
Seller (Note)

Daiwa Ebisu 4-chome
Trust beneficial interest in domestic real estate
4-9-10 Ebisu, Shibuya-ku, Tokyo
4,135.2 million yen(excluding associated acquisition costs, consumption tax, etc.)
October 16, 2014
December 1, 2014
Not disclosed(Note) Seller is a domestic corporation which has not agreed to disclose its name.
b. The Investment Corporation acquired a trust beneficial interest in real estate on December 3, 2014 as follows.
Summary of Asset to be Acquired
Property name
Type of asset
Location
Acquisition priceDate of conclusion of purchase agreement
Date of delivery
SellerLAQUAS Higashi Shinjuku
Trust beneficial interest in domestic real estate
2-2-6 Okubo, Shinjuku-ku, Tokyo
8,450 million yen(excluding associated acquisition costs, consumption tax, etc.)
November 25, 2014
December 3, 2014
Higashi Shinjuku Building Tokutei Mokuteki Giashac. The Investment Corporation determined on January 13, 2015 to acquire a trust beneficial interest in real estates asfollows.
Summary of Asset Acquired
Property name
Type of asset
Location
Acquisition priceDate of conclusion ofpurchase agreement
Date of delivery
Seller (Note)

Concept Aoyama
Trust beneficial interest in domestic realestate3-1-30 Jingumae, Shibuya-ku, Tokyo
9,800 million yen(excluding associated acquisition costs,
consumption tax, etc.)

Shinsen Place
Trust beneficial interest in domestic realestate9-1 Shinsencho, Shibuya-ku, Tokyo
4,800 million yen(excluding associated acquisition costs,
consumption tax, etc.)

January 13, 2015

January 13, 2015

March 2, 2015 (scheduled)
Not disclosed

March 2, 2015 (scheduled)
Not disclosed(Note) Seller is a domestic specific purpose company which has not agreed to disclose its name.
② Transfer of Assets
The Investment Corporation determined on January 13, 2015 to transfer trust beneficial interest in real estates asfollows.
Summary of Asset Acquired
Property nameDaiwa Nihombashi Honcho Daiwa Ginza 1-chome

Daiwa KinshichoType of asset

Trust beneficial interest in
domestic real estate

Trust beneficial interest in
domestic real estate

Sales price (Note 1) (Note 2)

Trust beneficial interest in
domestic real estate
15,500 million yen

Date of conclusion ofpurchase agreement

January 13, 2015

January 13, 2015

January 13, 2015

Date of delivery

February 2, 2015
(scheduled)February 2, 2015
(scheduled)February 2, 2015
(scheduled)

Buyer (Note 3)

Not disclosed

Not disclosed

Not disclosed(Note 1) The sales price excludes settlement money for fixed property tax and city planning tax as well as
consumption tax and local consumption tax(Note 2) Individual sales prices are undisclosed as consent of the buyers was not obtained due to the acquisitions’relation to the buyers’ business plans following the acquisitions.
(Note 3) Buyers are domestic corporations which have not agreed to disclose its name.

-7-Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period③ Borrowing of Funds
a. The Investment Corporation borrowed funds on December 1, 2014 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “a. Acquisition ofAssets (i),” etc.
Details of borrowings
LenderDrawdown date

Loan amount(million yen)

Sumitomo Mitsui
Banking Corporation

1,000

The Bank ofTokyo-Mitsubishi
UFJ, Ltd.

1,000
December 1,
2014

Mizuho Bank, Ltd.

1,000

Shinsei Bank, Ltd.

1,000

Interest rate
JBA 1 month
Japanese Yen
TIBOR + 0.35%(Note 1)
JBA 1 month
Japanese Yen
TIBOR + 0. 30%(Note 1)
JBA 1 month
Japanese Yen
TIBOR + 0.325%(Note 1)
IBA 3month
Japanese Yen
LIBOR + 0.35%(Note 2)

Repayment date

Borrowing /Repayment
methodMay 31, 2023

May 31, 2022

November 30,
2022

Unsecured
Repayment inlump sumMay 31, 2023

(Note 1) Interest payments shall be paid at the end of every month (If any such date is not a business day, the immediately following
business day; and if such date falls within the next month, the preceding last business day of the month.) and the repayment
date. Interest rate is calculated based on 1 month Japanese Yen TIBOR which Japanese Bankers Association announces twobusiness days prior to the first day of the applicable calculation period.
(Note 2) Interest payments shall be made at the end of February, May, August and November (If any such date is not a business day, theimmediately following business day; and if such date falls within the next month, the preceding last business day of themonth.) and the repayment date. Interest Rate is calculated based on IBA 3 month Japanese Yen LIBOR which is announced
two business days prior to the first day of the applicable calculation period.

b.

The Investment Corporation borrowed funds on December 3, 2014 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “b. Acquisition ofAssets (i),” etc.
Details of borrowings
LenderDrawdown date

Loan amount(million yen)

Sumitomo Mitsui
Banking Corporation

1,500

The Bank ofTokyo-Mitsubishi
UFJ, Ltd.

1,000

Mizuho Bank, Ltd.

1,500

Sumitomo Mitsui
Trust Bank, Limited

December 3,
2014

1,000

Development Bank ofJapan Inc.

1,000

Resona Bank Limited

1,500

Mitsubishi UFJ Trustand Banking
Corporation

1,000

-8-

Interest rate
JBA 1 month
Japanese Yen
TIBOR + 0.35%(Note)JBA 1 month
Japanese Yen
TIBOR + 0. 30%(Note)JBA 1 month
Japanese Yen
TIBOR + 0.325%(Note)JBA 1 month
Japanese Yen
TIBOR + 0.325%(Note)
0.692%(Fixed Rate)
JBA 1 month
Japanese Yen
TIBOR + 0.325%(Note)JBA 1 month
Japanese Yen
TIBOR + 0.275%(Note)

Repayment date

Borrowing /Repayment
methodMay 31, 2023

May 31, 2022

November 30,
2022

November 30,
2022
November 30,
2021
November 30,
2022

November 30,
2021

Unsecured
Repayment inlump sumDaiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Periodc.

The Investment Corporation borrowed funds on January 13, 2015 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “c. Acquisition ofAssets (i),” etc. but the loans shall be canceled if the transfers of property indicated in “(2) Transfer of Assets” arecompleted as scheduled and the funds from the transfers are to be used to fund the purchase. The loans are withspecial agreement which allows termination of contract without expenses, etc. if they are to be canceled.
Details of borrowings
LenderDrawdown date

Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Trust Bank, Limited

Shinsei Bank, Ltd.

Interest rate

Repayment date

Borrowing /Repayment
methodJBA 1 month
Japanese Yen
TIBOR + 0.3%
(Note)

September 2,
2015

Unsecured
Repayment inlump sum

4,000
3,000

Mizuho Bank, Ltd.
The Bank ofTokyo-Mitsubishi
UFJ, Ltd.

Loan amount(million yen)

2,500
March 2, 2015
(scheduled)

2,500

2,000

(Note) Interest payments shall be made on the 2nd of every month (If any such date is not a business day, the immediately following
business day; and if such date falls within the next month, the preceding last business day of the month.) and the repayment date.
Interest rate is calculated based on 1 month Japanese Yen TIBOR which Japanese Bankers Association announces two businessdays prior to the first day of the applicable calculation period.

D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 19th Fiscal Period (fiscal period ending
May 2015 (from December 1, 2014 to May 31, 2015)). For the assumptions underlying the management status
forecasts, please refer to the “Assumptions for the Management Status Forecasts for the 19th Fiscal Period and 20th
Fiscal Period” on page 10.
19th Fiscal Period (fiscal period ending May 2015 (from December 1, 2014 to May 31, 2015))
Operating revenue
10,221 million yen
Operating income
4,680 million yen
Ordinary income
3,911 million yen
Net income
3,884 million yen
Distribution amount per unit
8,700 yen
Distribution amount in excess of earnings per unit
- yen
In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 19th Fiscal Period and20th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status forthe 20th Fiscal Period (fiscal period ending November 2015 (from June 1, 2015 to November 30, 2015)).
20th Fiscal Period (fiscal period ending November 2015 (from June 1, 2015 to November 30, 2015))
Operating revenue
10,284 million yen
Operating income
4,749 million yen
Ordinary income
3,971 million yen
Net income
3,969 million yen
Distribution amount per unit
9,000 yen
Distribution amount in excess of earnings per unit
- yen
(Note) The forecast figures above are the current forecasts calculated based on certain assumptions. Accordingly,
the actual operating revenue, operating income, ordinary income, net income, distribution amount per unit anddistribution amount in excess of earnings per unit may vary due to changes in the status. Moreover, theforecasts set forth herein should not be construed as a guarantee of distribution amounts.

-9-

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
Assumptions for the Management Status Forecasts for the 19th Fiscal Period and 20th Fiscal Period
Item
Assumptions• 19th Fiscal Period:
Assets under management are assumed to be the 46 properties owned as of November 30, 2014,
plus 4 properties acquired in December 2014 and scheduled to be acquired in March 2015, to total
50 properties.
• 20th Fiscal Period
From the total of 47 properties (46 properties owned as of November 30, 3014, plus 4 properties
Assets underacquired in December 2014 and scheduled to be acquired in March 2015, minus 3 properties
management
scheduled to be transferred in February 2015), while transfers have not been determined as of now,
transfer of portfolio properties other than those indicated above are expected for the 19th Fiscal
Period, and so assets under management assumes the 47 properties minus the properties expected to
be transferred.
• The actual number of properties may vary due to changes in the assets under management otherthan above.
• Rent revenue from existing properties is calculated based on historical data and taking into accountOperatingvariable factors.
revenue• Approx. 200 million yen of gain on sales of real estate properties through the transfer of existing
properties is expected in the 19th Fiscal Period.
• Expenses related to rent business, which constitute a major component of operating expenses, arecalculated based on historical data and taking into account variable factors.
• Repair expenses for buildings are recorded as expenses in the amount expected to be necessary in
the respective fiscal period based on the medium to long term repair plan established by the AssetManager.
• Operating income from property leasing (excluding gain on sales of real estate properties) after
Operatingdeducting expenses related to rent business (including depreciation) is expected to be 5,572 million
expenses
yen in the 19th Fiscal Period and 5,801 million yen in the 20th Fiscal Period.
• Consignment expenses are expected to be 755 million yen in the 19th Fiscal Period and 711 million
yen in the 20th Fiscal Period.
• Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 803 million yen in the
19th Fiscal Period and 885 million yen in the 20th Fiscal Period.
• Depreciation is expected to be 1,532 million yen in the 19th Fiscal Period and 1,491 million yen in
the 20th Fiscal Period.
• Non-operating expenses in the 19th Fiscal Period are expected to be 769 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related
Non-operating
expenses are expected to be 764 million yen.
expenses• Non-operating expenses in the 20th Fiscal Period are expected to be 778 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related
expenses are expected to be 773 million yen.
• The total amount of interest-bearing liabilities is assumed to be 173,300 million yen at the end of
the 19th Fiscal Period and 173,300 million yen at the end of the 20th Fiscal Period.
• It is assumed that 3,000 million yen in loans that is to become due for repayment on February 27,
2015, 7,500 million yen in loans that is to become due for repayment on March 31, 2015 and 2,500
million yen in loans that is to become due for repayment on May 29, 2015 will be refinanced in theentire amounts. In addition, a total of 12,500 million yen was newly borrowed to fund theacquisition of new properties announced on October 16, 2014 and November 25, 2014 (4,000
million yen for the acquisition of Daiwa Ebisu 4-chome (borrowed on December 1, 2014) and 8,500
Interest-bearing
million yen for the acquisition of LAQUAS Higashi Shinjuku (borrowed on December 3, 2014)).
liabilities
Furthermore, a loan agreement for a total of 14,000 million yen to fund the acquisition of Concept
Aoyama and Shinsen Place was announced on January 13, 2015, but the transfers of Daiwa
Nihombashi Honcho, Daiwa Ginza 1-chome and Daiwa Kinshicho were announced on the same
day and proceeds from the transfers will be used to fund the acquisitions. Therefore, the loan
agreement is scheduled to be canceled and it is assumed that the loans for the acquisition will not be
made.
• It is assumed that the 4,500 million yen in loans that is to become due for repayment on August 31,
2015 and the 1,600 million yen in loans that is to become due for repayment on November 30, 2015
will be refinanced in the entire amount.
Number of• The number of investment units issued and outstanding is assumed to be the 441,000 units issued
investment units
and outstanding as of the date of submission of this document, and there is assumed to be noissued andadditional issuance of investment units through to November 30, 2015.
outstanding
Distribution amount
per unit• The distribution amount per unit is calculated based on the cash distribution policy as set out in thearticles of incorporation of the Investment Corporation.
• Part of the gain on transfer from the transfers of Daiwa Niombashi Honcho, Daiwa Ginza 1-chomeand Daiwa Kinshicho expected for the 19th Fiscal Period is assumed to be retained as internal- 10 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
Item

Assumptions
reserves with the application of the system of “Special Provisions for Taxation in the Case of
Advance Acquisition of Land, etc. in 2009 and 2010,” and upon recording of income taxes–deferred(24 million yen), the remaining amount is assumed to be carried over as reserve for advanced
depreciation (47 million yen).
• The distribution amount per unit may vary depending on a variety of factors, such as changes in theassets under management, changes in the rent revenue due to tenant changes and other causes, andincurrence of unforeseen repairs.

Distribution amountin excess of earnings
per unit• At present, there is no plan to make any distribution in excess of earnings (distribution amount inexcess of earnings per unit).

Other• It is assumed that there are no changes to laws and ordinances, the tax system, accounting
standards, listing regulations, the rules of Tokyo Stock Exchange, Inc. and The Investment Trusts
Association, Japan, etc. that will affect the abovementioned forecast figures.
• It is assumed that there will be no major unforeseen changes in general economic trends, real estatemarket conditions, etc.

2.3. Investment Risks
The following content will be added as “(c) Risk that asset to be acquired cannot be incorporated into the portfolio or riskthat asset to be transferred cannot be transferred” to “Part I: Fund Information; Section 1: Fund Status; 3. Investment
Risks; 3.3. Risk Factors; 3.3.6. Other” set out in the most recent periodic securities report (yuka shoken hokokusho)(submitted on February 25, 2014).
(c) Risk that assets to be acquired cannot be incorporated into the portfolio or assets to be transferred cannot betransferred
The Investment Corporation has concluded purchase agreements for trust beneficial interest in the following assets
and future acquisitions are scheduled (purchase agreements dated January 13, 2015, acquisitions scheduled for March
2, 2015).
・Concept Aoyama
・Shinsen Place
In addition, the Investment Corporation has concluded purchase agreements for trust beneficial interest in thefollowing assets and future transfers are scheduled (purchase agreements dated January 13, 2015, transfers scheduledfor February 2, 2015).
・Daiwa Nihombashi Honcho
・Daiwa Ginza 1-chome
・Daiwa Kinshicho
However, the Investment Corporation may not be able to acquire or transfer the properties above as scheduled becauseof cancellation of the purchase agreements due to such factors as significant changes in the market environment,
financing environment, etc. or individual circumstances of the seller, buyer or the Investment Corporation during theperiod from the date of this document to asset acquisition or sale, and this may result in harming unitholders.
In addition, “Part I: Fund Information; Section 1: Fund Status; 3. Investment Risks; 3.3. Risk Factors; 3.3.4. Risks
concerning Real Estate and Beneficial Interest in Trust; (v) Risk concerning forward commitments” set out in theabovementioned periodic securities report (yuka shoken hokokusho) will be amended as follows (amendments areunderlined).
(v) Risk concerning forward commitments
The Investment Corporation may use forward commitments (forward commitments is defined as “a sale and purchaseagreement binding for forward and future transactions, with respect to which the settlement and delivery take place
one or more months after the signing of the agreement”) to acquire real estate or trust beneficial interest that have realestate as assets in trust. When the purchase agreement is cancelled due to the buyer’s circumstances, the buyer will be
liable for damages due to default in obligations. Moreover, regardless of proof of the amount of damages, etc., there
may be an agreement made to the effect that a penalty that is a certain percentage of the purchasing price of the realestate or trust beneficial interest that have real estate as assets in trust shall apply. In the event of forward
commitments, there is a certain period of time from the signing of the agreement to the settlement and delivery. In
cases where the Investment Corporation fails to procure funds for the real estate acquisition due to such factors aschanges in the market environment or other cases leading to the need to cancel the purchase agreement during that
period, there is a possibility that the financial condition of the Investment Corporation will deteriorate due to paymentof the penalty, etc.
The Investment Corporation has concluded purchase agreements for trust beneficial interest in the following assets
and future acquisitions are scheduled (purchase agreements dated January 13, 2015, acquisitions scheduled for March
2, 2015).
・Concept Aoyama
・Shinsen Place- 11 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
These purchase agreements fall under the category of the forward commitments above. If there is a violation of anyof the provisions of the purchase agreements with the seller of the properties by either the Investment Corporation or
the seller, the other party can cancel the purchase agreement and demand an amount equivalent to 10% of thepurchasing price as a penalty.

3. Financial Statements
3.1. Balance Sheets

17th Fiscal Period[As of May 31, 2014]
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Other in trust
Accumulated depreciation
Other in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment*1- 12 -(Unit: thousand yen)
18th Fiscal Period[As of Nov. 30, 2014]

16,842,863
5,694,864
292,388
135,051
307,951
3,729
80,83023,357,677

12,984,949
4,782,914
303,995
243,388322,520
1,488
62,83818,702,095

3,092,757(1,454,946)
1,637,811
10,296(2,461)
7,834
8,947(6,042)
2,905
12,302,226
3,871
80,499,042(16,541,892)
63,957,149
887,486(146,565)
740,921781,249(401,379)
379,869
108,841(57,254)
51,586
5,909(5,909)273,990,050
433,065
353,507,294

3,099,008(1,542,328)
1,556,679
10,296(2,730)7,566
18,538(6,638)
11,89912,302,226
4,031
89,130,153(17,907,783)
71,222,370
908,701(159,022)
749,679
826,878(425,369)
401,509
116,862
64,11452,7485,909(5,909)289,916,770
548,058
376,773,540*1

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period

17th Fiscal Period[As of May 31, 2014]
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits in trust
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets*2- 13 -(Unit: thousand yen)
18th Fiscal Period[As of Nov. 30, 2014]

1,259
2,407,101
306,884
4,925
2,720,171

1,071
2,407,101
306,884
3,857
2,718,915

113,684
942,443
70,133
10,0201,136,282
357,363,748

113,684
1,094,349
104,136
10,0201,322,190
380,814,647

1,717
1,717
380,723,143

38,28238,282399,555,025

904,3165,500,000
29,500,000
461,153844
16,051
971,476
365,068
37,718,910

941,2442,500,000
16,600,000
336,672975
1,156,701
95,501
21,631,096

3,500,000
125,200,000
7,674,101
4,769,695
205,310
141,349,107
179,068,017

5,100,000
136,600,000
9,451,317
3,874,580
304,937
155,330,836
176,961,932

198,780,951

219,155,572

3,016,510
3,016,510
201,797,461

3,641,156
3,641,156
222,796,728(142,335)(142,335)
201,655,126
380,723,143(203,635)(203,635)
222,593,092
399,555,025*2

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
3.2. Statements of Income

Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Investment unit issuance expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on donation of noncurrent assets
Total extraordinary income
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

17th Fiscal Period[From: Dec. 1, 2013
To: May 31, 2014](Unit: thousand yen)
18th Fiscal Period[From: June 1, 2014
To: Nov. 30, 2014]

*1
*1
*2

8,491,129
92,7583,610
8,587,498

*1
*1
*2

9,693,133
70,577
9,763,710*1

3,931,000
710,204
18,162
62,68622,026
5,400
77,284
4,826,763
3,760,734*1

4,324,674
802,292
19,65371,49022,6785,400
78,5295,324,718
4,438,992

931
630
4,068
5,630

*3

554,143
47,448151,045
7,938
760,575
3,005,789
11,484
11,484
3,017,273
929
4
933
3,016,340
170
3,016,510- 14 -

610
638
1,688
2,937

*3

546,61035,641
166,053
46,104
5,513
799,924
3,642,006
3,642,006
987
(3)
983
3,641,022
133
3,641,156

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
3.3. Statements of Unitholders’ Equity
17th Fiscal Period (from December 1, 2013 to May 31, 2014](Unit: thousand yen)
Total valuation and translation
adjustments

Unitholders’ equity
Surplus

Total net assets

Unappropriatedretained earnings(undisposed
loss)

Total Surplus

198,780,951

2,959,947

2,959,947

201,740,899

Dividends from surplus(2,959,777)(2,959,777)(2,959,777)(2,959,777)

Net income

3,016,340

3,016,340

3,016,340

3,016,340

Balance at beginning of current
periodTotal unitholders’ Deferred gains orlosses on hedges
equityTotal valuationand translation
adjustments

Unitholders’capital(57,707)(57,707)

201,683,191

Changes of items during theperiodNet changes of items otherthan shareholders’ equity
Net changes of items other than(84,627)(84,627)–

56,56256,56256,562(84,627)(84,627)(28,065)

198,780,951

3,016,510

3,016,510

201,797,461(142,335)(142,335)

201,655,126

shareholders’ equity
Balance at end of current period(84,627)

18th Fiscal Period (from June 1, 2014 to November 30, 2014](Unit: thousand yen)
Total valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning of current
periodUnitholders’capitalUnappropriatedretained earnings(undisposed
loss)

Total Surplus

198,780,951

3,016,510

3,016,510

Total unitholders’ Deferred gains orlosses on hedges
equity201,797,461(142,335)

Total valuationand translation
adjustments(142,335)

Total net assets

201,655,126

Changes of items during theperiodIssuance of investment units

20,374,620

20,374,620

20,374,620

Dividends from surplus(3,016,376)(3,016,376)(3,016,376)(3,016,376)

Net income

3,641,022

3,641,022

3,641,022

3,641,022

Net changes of items otherthan shareholders’ equity
Net changes of items other thanshareholders’ equity
Balance at end of current period(61,300)(61,300)(61,300)

20,374,620

624,646624,646

20,999,266(61,300)(61,300)

20,937,965

219,155,572

3,641,156

3,641,156

222,796,728(203,635)(203,635)

222,593,092- 15 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
3.4. Statements of Cash Distributions

Item
I.
II.

Unappropriated retained earnings
Distribution amount[Distribution amount per unit]
III. Retained earnings carried forward
Method for calculating distribution amount17th Fiscal Period[From: Dec. 1, 2013
To: May 31, 2014]
Amount (yen)3,016,510,262
3,016,376,558[7,621]
133,704
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the number ofunits issued and outstanding (395,798
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, the Investment
Corporation declared a distribution
amount of 3,016,376,558 yen.
Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

- 16 -

18th Fiscal Period[From: June 1, 2014
To: Nov. 30, 2014]
Amount (yen)3,641,156,268
3,640,896,000[8,256]260,268
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the number ofunits issued and outstanding (441,000
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, the Investment
Corporation declared a distribution
amount of 3,640,896,000 yen.
Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
3.5. Statements of Cash Flows

17th Fiscal Period[From: Dec. 1, 2013
To: May 31, 2014]
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Investment unit issuance expenses
Interest income
Interest expenses(Increase) Decrease in operating accounts receivable(Increase) Decrease in consumption taxes refund receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Decrease from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
Repayments of tenant security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds redeemable
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 17 -*1(Unit: thousand yen)
18th Fiscal Period[From: June 1, 2014
To: Nov. 30, 2014]

3,017,273
1,357,076
2,867
–
(931)
601,592
6,849(135,051)(18,256)(74,232)
60,440(80,257)(5,993)(163,695)
3,776,563
226,2218,570,465
931(601,109)(896)
7,969,391

3,642,006
1,498,701
3,009
46,104(610)
582,252(11,606)(108,337)(14,569)
71,448(10,530)(16,051)
185,224(151,906)–(235,379)
5,479,755
610(592,677)(856)
4,886,832(22,821)(15,910,756)(3,024)
615,668
755,378(670,820)(160,460)(15,396,834)(9,503)(24,902,658)–
740,833
865,635(587,447)(136,920)(24,030,060)

2,500,000–
28,400,000(14,900,000)–––(2,959,802)
13,040,197
5,612,755
16,924,971
22,537,727–(3,000,000)
17,500,000(19,000,000)
5,060,426(3,500,000)
20,328,516(3,015,578)
14,373,364(4,769,863)
22,537,727
17,767,863*1

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
3.6. Notes to the Going Concern
Not applicable.
3.7. Notes to Significant Accounting Policies
1.
Accumulated depreciation method(1) Property, plant and equipment (including trust assets)
for noncurrent assets
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as follows:
Buildings
2~64 years
Structures
4~56 years
Machinery and equipment
2~23 years
Tools, furniture and fixtures
5~18 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
2.
Accounting policies for
Investment corporation bonds issuance costs
deferred assets
Amortized using the straight-line method over the period up to redemption.
3.
Accounting standards for recording Accounting for fixed property tax, etc.
revenues and expenses
Concerning fixed property tax, city planning tax, depreciated asset tax, etc. forowned real estate in trust, of the tax amount that has been broken down into
installments, the method of accounting for the amount corresponding to theconcerned fiscal period as expenses related to rent business is adopted.
Concerning the amount equivalent to fixed property tax, etc. for the initialfiscal year that shall be borne by the Investment Corporation in correlation withacquisitions of real estate or trust beneficial interest that have real estate as
assets in trust, the amount is not expensed but is rather included in the cost of
acquisition of the concerned real estate property.
The amount equivalent to fixed property tax, etc. that was included in the costof acquisition of real estate properties in the 17th Fiscal Period is 54,857
thousand yen and 18th Fiscal Period is 59,351 thousand yen.
4.
Hedge accounting approaches(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet the requirements
for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate cap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge risks
stipulated in the Investment Corporation’s articles of incorporation inaccordance with the Investment Corporation’s risk management policy.
Method for assessing the effectiveness of hedging(4) The effectiveness of hedging is assessed by the correlation between the change
in aggregated amount of cash flow of the hedging instruments and the change
in aggregated amount of cash flow of the hedged items.
Interest rate swaps that meet the requirements for special accounting are
omitted from assessment of the effectiveness.
5.
Scope of funds in the
The funds (cash and cash equivalents) in the statements of cash flows consist of cash
statements of cash flows
on hand and cash in trust; deposits that can be withdrawn at any time and deposits intrust; and short-term investments with a maturity of 3 months or less from the date ofacquisition, which are readily convertible to cash and bear only an insignificant riskof price fluctuation.

- 18 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
6.

Other significant matters forming
basis for preparation of financial
statements

(1)

(2)

Accounting method for trust beneficial interest in real estate, etc.
Concerning owned trust beneficial interest that have real estate properties asassets in trust, all accounts of assets and liabilities within assets in trust as well
as all accounts of revenues and expenses incurred from the assets in trust arerecorded in the relevant account item of the balance sheets and statements ofincome.
The following material items of the assets in trust recorded in the relevant
account item are separately listed on the balance sheets.
(i) Cash and deposits in trust(ii) Buildings in trust, structures in trust, machinery and equipment in trust,
tools, furniture and fixtures in trust, other tangible assets in trust, land intrust and construction in progress in trust(iii) Leasehold rights in trust(iv) Lease and guarantee deposits in trust(v) Tenant leasehold and security deposits in trust
Accounting method for consumption taxes
Consumption tax and local consumption tax are accounted for by the
tax-exclusion method and consumption taxes that are not tax-deductible are
expensed in the fiscal period under review.
The consumption taxes relating to noncurrent assets, etc. that are nottax-deductible are amortized in equal installments over 5 years.

3.8. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting and asset retirement
obligations, disclosure is omitted because there is no substantial need for such disclosure in the financial report (kessan
tanshin).
[Notes to Balance Sheets]*1. Advanced depreciation amount for noncurrent assets acquired by government subsidies, etc.
17th Fiscal Period[As of May 31, 2014]
Buildings in trust

18th Fiscal Period[As of November 30, 2014]

32,898 thousand yen

Buildings in trust

32,898 thousand yen*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
17th Fiscal Period[As of May 31, 2014]

18th Fiscal Period[As of November 30, 2014]

50,000 thousand yen- 19 -

50,000 thousand yen

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing(Unit: thousand yen)

A.

B.

C.

Property leasing revenue
Rent revenue – real estate
Other lease business revenue
Total property leasing revenue
Property leasing expenses
Consignment expenses
Utilities expenses
Taxes and dues
Non-life insurance expenses
Repair expenses
Depreciation
Other lease business expenses
Total property leasing expenses
Operating income (loss) from property
leasing [A – B]

17th Fiscal Period[From: Dec. 1, 2013
To: May 31, 2014]

18th Fiscal Period[From: June 1, 2014
To: Nov. 30, 2014]

8,491,129
92,7589,693,133
70,577
8,583,887

692,132
842,933
705,980
12,785272,158
1,355,744
49,265

9,763,710
769,360
1,072,401
792,627
14,425125,020
1,497,217
53,621

3,931,000

4,324,674

4,652,887

5,439,036*2. Breakdown of gain on sales of real estate properties (Unit: thousand yen)
17th Fiscal Period [From: December 1, 2013 To: May 31, 2014]
Daiwa Shibuya SS Building
Proceeds from sales of real estate properties
Cost of sales of real estate properties

3,800,000
3,776,563
19,825

Other expenses on sales

3,610

Gain on sales of real estate properties
18th Fiscal Period [From: June 1, 2014 To: November 30, 2014]
Not applicable.
*3. Transactions with major unitholders(Unit: thousand yen)
17th Fiscal Period[From: Dec. 1, 2013
To: May 31, 2014]
Transactions other than business transaction
Interest expenses on investment corporation bonds

47,44818th Fiscal Period[From: June 1, 2014
To: Nov. 30, 2014]
28,277[Notes to Statements of Unitholders’ Equity]
17th Fiscal Period[From: Dec. 1, 2013
To: May 31, 2014]

18th Fiscal Period[From: June 1, 2014
To: Nov. 30, 2014]*1. Total number of investment units authorized and numberof investment units issued and outstanding
Total number of investment units authorized
Number of investment units issued and outstanding- 20 -

2,000,000 units

2,000,000 units

395,798 units

441,000 units

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period[Notes to Statements of Cash Flows]*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the statements of cash flows(Unit: thousand yen)
17th Fiscal Period[From: Dec. 1, 2013
To: May 31, 2014]
Cash and deposits
Cash and deposits in trust

16,842,863
5,694,864
22,537,727

Cash and cash equivalents

18th Fiscal Period[From: June 1, 2014
To: Nov. 30, 2014]
12,984,949
4,782,914
17,767,863[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation bonds andissuance of new investment units, etc. for the acquisition and repair of investment properties, the payments ofdividends and the reimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates, anddispersing maturity dates in order to secure financial stability and avoid future fluctuation risk of interest rates.
The Investment Corporation manages surplus funds through safe and highly liquid money claims and securities (inprinciple, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks.
(b) Contents and risk of financial instruments and policies and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds for theacquisition of investment properties (such as trust beneficial interest in real estate) and the reimbursement of current
debts and bonds. While these debts and bonds are exposed to liquidity risk, the Investment Corporation manages therisk by maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt tototal debt at high levels, and diversifying lenders with particular focus on domestic financial institutions.
Bank borrowings with floating interest rates are exposed to interest rate risk and the risk is controlled by using
derivative instruments (interest swap transaction).
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount of cash flow of
the hedging instruments and the change in aggregated amount of cash flow of the hedged items. Interest rate swaps thatmeet the requirements for special accounting are omitted from assessment of the effectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions
established by the basic policy of risk management.
Security deposits from tenants are exposed to liquidity risk upon tenants moving out and the Investment Corporation
reduces the risk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) and aremanaged by limiting the terms to short durations and establishing credit rating level of counterparties, etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instruments with noavailable market price is determined by using price reasonably estimated. As various factors are incorporated into thesecalculations, the resulting value may differ if different assumptions are provided. Furthermore, the contractual amountsof derivative transactions do not represent the market risk involved in these derivative transactions.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values and their differences are as follows. Please note that the following table does notinclude those for which discerning of fair value is recognized to be extremely difficult (please refer to (Note 2)).

- 21 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
17th Fiscal Period [As of May 31, 2014]
Carrying amount(1) Cash and deposits(2) Cash and deposits in trust
Total assets

Fair value(Unit: thousand yen)
Difference

16,842,863

16,842,863–

5,694,864

5,694,864–

22,537,727

22,537,727–(3) Short-term loans payable

5,500,000

5,500,000–(4) Current portion of long-term loans payable

29,500,000

29,506,081

6,081(5) Investment corporation bonds

3,500,000

3,500,000–

125,200,000

125,287,009

87,009163,700,000

163,793,091

93,091(216,183)(216,183)–

Carrying amount
12,984,949

Fair value
12,984,949

4,782,914

4,782,914–

17,767,863

17,767,863–

2,500,000

2,500,000

16,600,000
5,100,000
136,600,000
160,800,000(309,242)

16,603,735
5,121,660
136,741,916
160,967,311(309,242)–
3,735
21,660141,916
167,311–(6) Long-term loans payable
Total liabilities
Derivative transactions (*)
18th Fiscal Period [As of November 30, 2015](1) Cash and deposits(2) Cash and deposits in trust
Total assets(3) Short-term loans payable(4) Current portion of long-term loans payable(5) Investment corporation bonds(6) Long-term loans payable
Total liabilities
Derivative transactions (*)(Unit: thousand yen)
Difference–(*) The value of assets and liabilities arising from derivatives are indicated at net basis. The amount in parentheses represents
the net liability position.
(Note 1) Method of calculation of fair value of financial instruments and matters concerning derivatives.
Assets(1) Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and thus isstated at that book value.
Liabilities(3) Short-term loans payable; (4) Current portion of long-term loans payable; (6) Long-term loans payable
As those with floating interest rates reflect market interest rates within a short period of time and the Investment
Corporation’s credit capability does not differ markedly from the execution, the fair value is approximately the same as
the book value and thus is stated at that book value. Those with fixed interest rates, on the other hand, are based on themethod of calculating by discounting the sum total amount of principal and interest (*) by the reasonably estimatedinterest rate in the case that the same type of borrowings are undertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest is handled
together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions] below.)(5) Investment corporation bonds
Concerning the fair value of investment corporation bonds issued by the Investment Corporation, as these are based on
floating interest rates and reflect market interest rates within a short period of time and the Investment Corporation’s
credit capability does not differ markedly from the execution, the fair value is approximately the same as the bookvalue and thus is stated at that book value.
Derivative transactions
Please refer to [Notes to Derivative transactions] below.

- 22 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period(Note 2) Financial products for which it is extremely difficult to estimate fair value.
(Unit: thousand yen)
17th Fiscal Period[As of May 31, 2014]

18th Fiscal Period[As of Nov. 30, 2014]

9,451,317
7,674,101
3,874,580
4,769,695
Total
13,325,898
12,443,797
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lesseesof rental properties are not subject to disclosure of market price because discerning of the market price is recognized to
be extremely difficult as future cash flows cannot be reasonably estimated due to there being no fair value anddifficulty in calculation of the actual deposit period.

Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust(Note 3) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts.
17th Fiscal Period [As of May 31, 2014](Unit: thousand yen)
Within 2 years,
but over 1 year

Within 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Over 5 years

Cash and deposits

16,842,863

–

–

–

–

–

Cash and deposits in trust

5,694,864

–

–

–

–

–

Total

22,537,727

–

–

–

–

–

18th Fiscal Period [As of November 30, 2014](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Cash and deposits

12,984,949

–

–

–

–

–

Cash and deposits in trust

4,782,914

–

–

–

–

–

17,767,863

–

–

–

–

–

Total

Over 5 years(Note 4) Amount of repayment of investment corporation bond and long-term loans payable scheduled to be due after thesettlement of accounts.
17th Fiscal Period [As of May 31, 2014](Unit: thousand yen)
5,500,000

Within 2 years,
but over 1 year–

Within 3 years,
but over 2 years–

Within 4 years,
but over 3 years–

Within 5 years,
but over 4 years–

29,500,000

–

–

–

–

Within 1 year
Short-term loans payable
Current portion of
long-term loans payable
Investment corporation bonds

–
–

–

–

–

–

–

3,500,000–

8,300,000

18,200,000

19,400,000

21,500,000

57,800,000

35,000,000

8,300,000

18,200,000

19,400,000

21,500,000

61,300,000

2,500,000

Within 2 years,
but over 1 year–

Within 3 years,
but over 2 years–

Within 4 years,
but over 3 years–

Within 5 years,
but over 4 years–

16,600,000

–

–

–

–

–

–
–
19,100,000–
3,700,000
3,700,000–
28,250,000
28,250,000–
17,350,000
17,350,000

3,000,000
21,000,000
24,000,000

2,100,000
66,300,000
68,400,000

Long-term loans payable
Total

Over 5 years

18th Fiscal Period [As of November 30, 2014](Unit: thousand yen)
Within 1 year
Short-term loans payable
Current portion of
long-term loans payable
Investment corporation bonds
Long-term loans payable
Total- 23 -

Over 5 years–

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
17th Fiscal Period [As of May 31, 2014]
Not applicable.
18th Fiscal Period [As of November 30, 2014]
Not applicable.
(2) Transactions for which hedge accounting is applied
17th Fiscal Period [As of May 31, 2014]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to theprincipal provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
quoted by partner
70,100,000
46,100,000(216,183)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
35,350,000
32,850,000(*)
Fixed payablefor interest
payablerate swaps
Floating receivable
Total
105,450,000
78,950,000(216,183)
18th Fiscal Period [As of November 30, 2014]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to theprincipal provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
71,400,000
64,400,000(309,242)
quoted by partner
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
35,350,000
29,350,000(*)
Fixed payablefor interest
payablerate swaps
Floating receivable
Total
106,750,000
93,750,000(309,242)(*) Since the derivative financial instruments qualifying for the special accounting for interest rate swaps are accounted for as
one transaction together with their hedged item, long-term loans payable, the fair value of these derivatives is included inthat of related long-term loans payable. (Please refer to “Notes to Financial Instruments (2) Matters Concerning Fair Value,etc. of Financial Instruments (Note 1) Liabilities (4) (6)”).

- 24 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period[Notes to Transactions with Related Parties](1) Transactions with related parties
17th Fiscal Period [From: December 1, 2013 To: May 31, 2014]

Classification

Parentcompany

Name ofcompany,etc.

Location

Daiwa
Chiyoda-ku,
Securities
Tokyo
Group Inc.

Capital stockorinvestments
in capital

247.3
billion yen

Business
description

Percentage ofvoting rights, etc.
held by related
party (held in theInvestment
Corporation)

Relationshipwith related
party

Nature oftransaction

Holdingcompany(Held in theInvestment
Provision of
Corporation)
capital
Directly: 14.99%
Indirectly: 32.57%

Payment ofinterest
expenses oninvestment
corporation
bonds(Notes1 and 2)47,448Nature oftransaction

Amount oftransaction(thousandyen)

Amount oftransaction(thousandyen)

Accounting
item

Balance at
end of period(thousandyen)

Investment
corporationbonds

3,500,000

Other(current
liabilities)

19,457

Accounting
item

Balance at
end of period(thousandyen)

18th Fiscal Period [From: June 1, 2014 To: November 30, 2014]

Classification

Parentcompany

Name ofcompany,etc.

Location

Daiwa
Chiyoda-ku,
Securities
Tokyo
Group Inc.

Capital stockorinvestments
in capital

247.3
billion yen

Business
description

Percentage ofvoting rights, etc.
held by related
party (held in theInvestment
Corporation)

Holdingcompany

Redemptionof investment
corporation
bonds(Held in theInvestment
Payment ofProvision of
Corporation)interest
capital
Directly: 13.45%
expenses on
Indirectly: 29.23%
investment
corporation
bonds (Notes
1 and 2)

Relationshipwith related
party

3,500,000–
28,277Of the amounts above, the amount of transaction does not include consumption tax, etc.
(Note 1) Issuance terms, etc. for investment corporation bonds were determined by conducting a multifaceted analysis,
including the disparity in the spread of investment corporation bonds of other similar investment corporation bonds
and the spread of senior bonds and subordinated bonds in the market (bank bonds) and verification from the spread ofsubordinated investment corporation bonds issued in the past in Japan.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning conflict ofinterest in the internal rule of the Asset Manager.
(2) Notes to parent company and significant affiliated companies
17th Fiscal Period [From: December 1, 2013 To: May 31, 2014]
Parent company’s information
Daiwa Securities Group Inc. (listed on the Tokyo Stock Exchange and Nagoya Stock Exchange)
18th Fiscal Period [From: June 1, 2013 To: November 30, 2014]
Parent company’s information
Daiwa Securities Group Inc. (listed on the Tokyo Stock Exchange and Nagoya Stock Exchange)- 25 -–

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period[Notes to Investment and Rental Properties]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The carrying amount,amount of increase (decrease) during period and fair value for these rental properties are as follows.
(Unit: thousand yen)
17th Fiscal Period[From: Dec. 1, 2013
To: May 31, 2014]

18th Fiscal Period[From: June 1, 2014
To: Nov. 30, 2014]

Carrying amount
Balance at beginning of period

345,046,153

355,783,760

Amount of increase (decrease) during period

10,737,607

23,151,320

Balance at end of period

355,783,760

378,935,080

342,230,000

370,600,000

Fair value at end of period(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) for rental properties during the 17th Fiscal Period, the amount of increase ismainly attributable to acquisition of Integral Tower (15,220 million yen) and the amount of decrease is mainly
attributable to sales of Daiwa Shibuya SS Building (3,776 million yen) and to depreciation (1,355 million yen). Of
the amount of increase (decrease) for rental properties during the 18th Fiscal Period, the amount of increase is mainly
attributable to acquisition of Azabu Green Terrace (14,000 million yen) and Kitahama Grand Building (9,481 millionyen), and the amount of decrease is mainly attributable to depreciation (1,497 million yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by an external real estate appraiser.
The income (loss) for investment and rental properties are as presented in “Notes to Statements of Income.”- 26 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period[Segment Information, etc.](1) Segment Information
Segment information has been omitted because the Investment Corporation has no segment except the property leasing
business.
(2) Related Information
17th Fiscal Period [From: December 1, 2013 To: May 31, 2014]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment
are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90%of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer accounts
for less than 10% of the operating revenue on statements of income.
18th Fiscal Period [From: June 1, 2014 To: November 30, 2014]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment
are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90%of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer accounts
for less than 10% of the operating revenue on statements of income.

- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period[Notes to Per Unit Information]
17th Fiscal Period
18th Fiscal Period[From: Dec. 1, 2013
[From: June 1, 2014
To: May 31, 2014]
To: Nov. 30, 2014]
Net assets per unit
504,746 yen
509,490 yen
Net income per unit
8,414.41
yen
7,620.91 yen(Note 1) The net income per unit was calculated by dividing the net income by the daily weighted average number ofinvestment units issued and outstanding. The diluted net income per unit is not stated as there are no diluted
investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
17th Fiscal Period
18th Fiscal Period[From: Dec. 1, 2013
[From: June 1, 2014
To: May 31, 2014]
To: Nov. 30, 2014]
Net income (thousand yen)
3,641,022
3,016,340
Amounts not attributable to common unitholders (thousand yen)――
Net income attributable to common investment units (thousand yen)
3,641,022
3,016,340
Average number of investment units during the period (unit)
432,713395,798[Notes to Significant Subsequent Events](1) Acquisition of Assets
a. The Investment Corporation acquired a trust beneficial interest in real estate on December 1, 2014 as follows.
Summary of Asset Acquired
Property nameDaiwa Ebisu 4-chome

Type of asset

Trust beneficial interest in domestic real estate

Location

4-9-10 Ebisu, Shibuya-ku, Tokyo

Acquisition price

4,135.2 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

October 16, 2014

Date of delivery

December 1, 2014

SellerNot disclosed(Note) Seller is a domestic corporation which has not agreed to disclose its name.
b. The Investment Corporation acquired a trust beneficial interest in real estate on December 3, 2014 as follows.
Summary of Asset Acquired
Property name

LAQUAS Higashi Shinjuku

Type of asset

Trust beneficial interest in domestic real estate

Location

2-2-6 Okubo, Shinjuku-ku, Tokyo

Acquisition price8,450 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

November 25, 2014

Date of delivery

December 3, 2014

SellerHigashi Shinjuku Building Tokutei Mokuteki Giasha- 28 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Periodc. The Investment Corporation determined on January 13, 2015 to acquire a trust beneficial interest in real estate as
follows.
Summary of Asset to be Acquired
Property nameConcept Aoyama

Shinsen Place

Trust beneficial interest in
domestic real estate
3-1-30 Jingumae, Shibuya-ku,
Tokyo
9,800 million yen

Trust beneficial interest in
domestic real estate
9-1 Shinsencho, Shibuya-ku,
Tokyo
4,800 million yen

Acquisition price(excluding associated acquisition
costs, consumption tax, etc.)(excluding associated acquisition
costs, consumption tax, etc.)

Date of conclusion of purchase agreement

January 13, 2015

January 13, 2015

Date of delivery

March 2, 2015 (scheduled)

March 2, 2015 (scheduled)

SellerNot disclosed

Not disclosed

Type of asset
Location(Note) Seller is a domestic corporation which has not agreed to disclose its name.
(2) Sales of Assets
a. The Investment Corporation determined on January 13, 2015 to sell a trust beneficial interest in real estate as
follows.
Summary of Asset to be soldDaiwa Nihombashi
Property name
HonchoTrust beneficial interest in
Type of asset
domestic real estateTransfer price (Note 1)(Note 2)
Date of conclusion ofJanuary 13, 2015
sales agreement
February 2, 2015
Date of delivery(scheduled)
Buyer (Note 2)

Not disclosed

Daiwa Ginza 1-chome

Daiwa Kinshicho

Trust beneficial interest in
domestic real estate

Trust beneficial interest in
domestic real estate

15,500 million yen
January 13, 2015

January 13, 2015

February 2, 2015
(scheduled)February 2, 2015
(scheduled)

Not disclosed

Not disclosed(Note 1) The sales price excludes settlement money for fixed property tax and city planning tax as well as
consumption tax and local consumption tax(Note 2) Individual sales prices are undisclosed as consent of the buyers was not obtained due to the acquisitions’relation to the buyers’ business plans following the acquisitions.
(Note 3) Buyers are domestic corporations which have not agreed to disclose its name.

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period(3) Borrowing of Funds
a. The Investment Corporation borrowed funds on December 1, 2014 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “a. Acquisition ofAssets (i),” etc.
Details of borrowings
LenderDrawdown date

Loan amount(million yen)

Sumitomo Mitsui
Banking Corporation

1,000

The Bank ofTokyo-Mitsubishi
UFJ, Ltd.

1,000
December 1,
2014

Mizuho Bank, Ltd.

1,000

Shinsei Bank, Ltd.

1,000

Interest rate
JBA 1 month
Japanese Yen
TIBOR + 0.35%(Note 1)
JBA 1 month
Japanese Yen
TIBOR + 0. 30%(Note 1)
JBA 1 month
Japanese Yen
TIBOR + 0.325%(Note 1)
IBA 3month
Japanese Yen
LIBOR + 0.35%(Note 2)

Repayment date

Borrowing /Repayment
methodMay 31, 2023

May 31, 2022

November 30,
2022

Unsecured
Repayment inlump sumMay 31, 2023

(Note 1) Interest payments shall be paid at the end of every month (If any such date is not a business day, the immediately following
business day; and if such date falls within the next month, the preceding last business day of the month.) and the repayment
date. Interest rate is calculated based on 1 month Japanese Yen TIBOR which Japanese Bankers Association announces twobusiness days prior to the first day of the applicable calculation period.
(Note 2) Interest payments shall be made at the end of February, May, August and November (If any such date is not a business day, theimmediately following business day; and if such date falls within the next month, the preceding last business day of themonth.) and the repayment date. Interest Rate is calculated based on IBA 3 month Japanese Yen LIBOR which is announced
two business days prior to the first day of the applicable calculation period.

b.

The Investment Corporation borrowed funds on December 3, 2014 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “b. Acquisition ofAssets (i),” etc.
Details of borrowings
LenderDrawdown date

Loan amount(million yen)

Sumitomo Mitsui
Banking Corporation

1,500

The Bank ofTokyo-Mitsubishi
UFJ, Ltd.

1,000

Mizuho Bank, Ltd.

1,500

Sumitomo Mitsui
Trust Bank, Limited

December 3,
2014

1,000

Development Bank ofJapan Inc.

1,000

Resona Bank Limited

1,500

Mitsubishi UFJ Trustand Banking
Corporation

1,000Interest rate
JBA 1 month
Japanese Yen
TIBOR + 0.35%(Note)JBA 1 month
Japanese Yen
TIBOR + 0. 30%(Note)JBA 1 month
Japanese Yen
TIBOR + 0.325%(Note)JBA 1 month
Japanese Yen
TIBOR + 0.325%(Note)
0.692%(Fixed Rate)
JBA 1 month
Japanese Yen
TIBOR + 0.325%(Note)JBA 1 month
Japanese Yen
TIBOR + 0.275%(Note)

Repayment date

Borrowing /Repayment
methodMay 31, 2023

May 31, 2022

November 30,
2022

November 30,
2022

Unsecured
Repayment inlump sum

November 30,
2021
November 30,
2022

November 30,
2021(Note 1) Interest payments shall be paid at the end of every month (If any such date is not a business day, the immediately following
business day; and if such date falls within the next month, the preceding last business day of the month.) and the repayment
date. Interest rate is calculated based on 1 month Japanese Yen TIBOR which Japanese Bankers Association announces twobusiness days prior to the first day of the applicable calculation period.

- 30 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Periodc.

The Investment Corporation borrowed funds on January 13, 2015 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “c. Acquisition ofAssets (i),” etc. but the loans shall be canceled if the transfers of property indicated in “(2) Transfer of Assets” arecompleted as scheduled and the funds from the transfers are to be used to fund the purchase. The loans are withspecial agreement which allows termination of contract without expenses, etc. if they are to be canceled.
Details of borrowings
LenderDrawdown date

Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Trust Bank, Limited

Shinsei Bank, Ltd.

Interest rate

Repayment date

Borrowing /Repayment
methodJBA 1 month
Japanese Yen
TIBOR + 0.3%
(Note)

September 2,
2015

Unsecured
Repayment inlump sum

4,000
3,000

Mizuho Bank, Ltd.
The Bank ofTokyo-Mitsubishi
UFJ, Ltd.

Loan amount(million yen)

2,500
March 2, 2015
(scheduled)

2,500

2,000

(Note) Interest payments shall be made on the 2nd of every month (If any such date is not a business day, the immediately following
business day; and if such date falls within the next month, the preceding last business day of the month.) and the repayment date.
Interest rate is calculated based on 1 month Japanese Yen TIBOR which Japanese Bankers Association announces two businessdays prior to the first day of the applicable calculation period.

- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
The Investment Corporation resolved at its Board of Directors meeting held on June 17, 2014 and June 25, 2014 to issue newinvestment units. Payment for the public offering was completed on July 2, 2014 and payment for the third-party allocation wascompleted on July 30, 2014. The overview of capital increase up to the end of the 18th Fiscal Period is as follows.

Payment date

Description

Number of investment units
issued and outstanding(units)Increase
Balance(Decrease)

Unitholders’ capital(million yen)
Increase(Decrease)

Notes

Balance

Incorporation through private
400
400
200
200 (Note 1)
placement
Capital increase through public
October 18, 2005
99,600100,000
49,49849,698 (Note 2)
offering
Capital increase through public
July 10, 2007
100,000
200,000
75,316125,015 (Note 3)
offering
Capital increase by way of a
August 7, 2007
5,000
205,000
3,765
128,781 (Note 4)
third-party allotment
Capital increase by way of aJune 4, 2008
138,905
343,905
59,999188,780 (Note 5)
third-party allotment
Capital increase by way of a
July 1, 2009
51,893395,798
10,000198,780 (Note 6)
third-party allotment
Capital increase through public
July 2, 2014
41,092436,890
18,522
217,303 (Note 7)
offering
Capital increase by way of a
July 30, 2014
4,110
441,000
1,852
219,155 (Note 8)
third-party allotment(Note 1) The Investment Corporation was incorporated at an issue price of 500,000 yen per unit.
(Note 2) The Investment Corporation issued new investment units through public offering at an issue price of 515,000 yen perunit (amount paid in: 496,975 yen) to procure funds for acquisition of properties to be acquired upon listing, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of 781,060 yen perunit (amount paid in: 753,165 yen) to procure funds for acquisition of acquisition properties, etc.
(Note 4) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 753,165
yen per unit (amount paid in: 753,165 yen) to fund part of acquisition of acquisition properties, etc.
(Note 5) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 431,949
yen per unit (amount paid in: 431,949 yen) to fund repayment of loans and redemption of investment corporation bonds.
(Note 6) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 192,705
yen per unit (amount paid in: 192,705 yen) to fund repayment of loans, capital expenditure to enhance property value,acquisition of property, etc.
(Note 7) The Investment Corporation issued new investment units through public offering at an issue price of 466,537 yen perunit (amount paid in: 450,746 yen) to procure funds for acquisition of acquisition properties, etc.
(Note 8) he Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 450,746
yen per unit (amount paid in: 450,746 yen) to procure funds for acquisition of acquisition properties, etc.
July 11, 2005

- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
4. Changes in Directors
4.1. Changes in Directors at the Investment Corporation
Not applicable.
4.2. Changes in Directors at the Asset Manager
Not applicable- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period

5. Reference Information
5.1. Investment Status

Type of asset

Real estate

Trust beneficial interestin real estate

Use

OfficeOfficeRegion18th Fiscal Period(As of November 30, 2014)
Total amount owned
As a percentage of total(million yen)assets(Note 1)(%)

Five Central Wards of Tokyo

16,285

4.1

Five Central Wards of Tokyo

306,133

76.6

Greater Tokyo

36,7489.2

Major Regional Cities

19,7684.9

378,935

94.8

20,6195.2

399,555

100.0[378,935][94.8]

Total
Deposits and other assets
Total amount of assets (Note 2)(Note 1) The total amount owned is the carrying amount (the book value after deducting depreciation in the case of real estate andtrust beneficial interest in real estate).
(Note 2) The figures in parentheses [ ] under “Total amount of assets” shows the portion of the applicable asset that, in effect,
corresponds to the holding of real estate properties. The amount of construction in progress (including construction inprogress in trust) is not included in the amount of real estate and trust beneficial interest in real estate.

- 34 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
5.2. Investment Real Estate Properties (As of November 30, 2014)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Type ofprice
RegionProperty namespecifiedEstimated price at
end of period(million yen)(million yen)(million yen)

(Note 4)(Note 5)(Note 6)

14,10013,43015,600

3.6

3,050

2,855

3,200

0.8

Daiwa Shibaura

8,265

8,064

7,200

2.1

Daiwa Minami-Aoyama

4,550

4,450

4,170

1.2

Daiwa Sarugakucho

3,190

3,234

3,220

0.8

Daiwa A Hamamatsucho (Note 8)

2,865

2,822

2,870

0.7

Daiwa Jingumae

2,800

2,704

2,140

0.7

Daiwa Shibadaimon

2,578

2,408

2,690

0.7

Daiwa Misakicho

2,346

2,216

2,500

0.6

Daiwa Shimbashi 510

2,080

2,120

2,430

0.5

Daiwa Tsukijiekimae

1,560

1,379

1,470

0.4

Daiwa Tsukiji

1,240

1,184

1,390

0.3

Daiwa Tsukiji 616

2,440

2,247

2,430

0.6

Daiwa Tsukishima

7,840

7,022

8,260

2.0

Daiwa Nihonbashi Horidomecho

2,520

2,511

2,540

0.7

Daiwa Azabudai

1,600

1,548

1,720

0.4

Daiwa Nihombashi Honcho

7,420

7,045

6,830

1.9

4,620

4,472

4,170

1.2

3,460

3,322

3,060

0.9

2,910

2,870

2,760

0.8

13,86013,52512,3003.6

133,800

130,234

113,000

34.5

SHIBUYA EDGE

5,900

5,746

4,400

1.5

Daiwa Kodenmacho

2,460

2,411

2,030

0.6

Daiwa Jimbocho

4,150

4,074

3,010

1.1

Daiwa Nishi-Shimbashi

5,000

4,931

4,910

1.3

Daiwa Kudan

4,000

3,873

3,090

1.0

Daiwa Kayabacho Building

5,600

5,451

6,730

1.4

Daiwa Jimbocho 3-chome

3,550

3,508

3,950

0.9

E SPACE TOWER

24,00023,80729,600

6.2

Daiwa Nihonbashi Hongokucho

1,721

1,680

1,920

0.4

shinyon curumu

9,650

9,906

10,700

2.5

Daiwa Shibuya Dougenzaka

4,500

4,506

4,850

1.2

Daiwa Akasaka (Note 9)

9,200

9,273

10,800

2.4

Daiwa Shibuya Miyamasuzaka

7,000

7,191

7,630

1.8

Azabu Green Terrace

14,00014,383

15,3003.6

329,825

322,418

314,920

85.1

asset
Daiwa Ginza
Daiwa Ginza Annex

Five
CentralWards of
Tokyo
(Note 1)

Investment
ratio
(%)
(Note 7)

Carrying
amountDaiwa Ginza 1-chome
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon

Real estate

Trustbeneficial
interest inreal estate

Shinjuku Maynds Tower (Note 8)

Total for Five Central Wards of Tokyo (36 properties)- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period

RegionProperty name

Type ofspecifiedasset

Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
GreaterTokyo(Note 2)Benex S-3
Daiwa Shinagawa North
Daiwa Osaki 3-chome

Trust
beneficial
interest inreal estate

Investment
ratio
(%)
(Note 7)

Acquisition
price

Carrying
amountEstimated price at
end of period(million yen)(million yen)(million yen)

(Note 4)(Note 5)(Note 6)

3,653

3,355

3,620

0.9

2,958

2,782

3,330

0.8

4,950

4,281

3,260

1.3

7,710

7,339

5,890

2.0

1,650

1,674

2,060

0.4

Daiwa Kamiooka

2,000

2,023

2,160

0.5

Integral Tower

15,22015,29016,0003.9

38,141

36,74836,320

9.8

4,810

4,727

2,600

1.2

5,300
9,481

5,419
9,621

6,560
10,2001.4

Total for Greater Tokyo (7 properties)
Major
Daiwa Minami-Senba
Regional
Daiwa Meieki
Cities(Note 3) Kitahama Grand Building

Trustbeneficial
interest inreal estate

2.4
Total for Major Regional Cities (3 properties)
19,591
19,76819,360
5.1
Total (46 properties)
387,557
378,935
370,600
100.0(Note 1) “Five Central Wards of Tokyo” means Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards.
(Note 2) “Greater Tokyo” means Tokyo excluding the Five Central Wards of Tokyo, Kanagawa, Chiba and Saitama prefectures.
(Note 3) “Major Regional Cities” means Osaka area (i.e., Osaka, Kyoto and Hyogo prefectures), Nagoya area (Aichi, Mie andGifu prefectures) and ordinance-designated cities and core cities under the Local Autonomy Act.
(Note 4) Acquisition price is excluding acquisition costs, fixed property tax, city planning tax, consumption tax and local
consumption tax.
(Note 5) Carrying amount is the book value after deducting depreciation as of November 30, 2014.
(Note 6) Estimated price at end of period is the price as of November 30, 2014 stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii Appraisal & Investment
Consulting, Inc. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 7) Investment ratio is the acquisition price of each property expressed as a percentage of the total amount of acquisition
prices, rounded to one decimal place.
(Note 8) For Daiwa A Hamamatsucho Building and Shinjuku Maynds Tower, the figures are those pertaining to the Investment
Corporation’s ownership interest.
(Note 9) The Investment Corporation changed the name of assets under management on August 1, 2014 from “Akasaka Business
Place” to “Daiwa Akasaka.”- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
5.2.2. Summary of Building and Leasing of Investment Real Estate
RegionProperty nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho (Note 8)
Daiwa A Hamamatsucho
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho (Note 8)
Daiwa Shimbashi 510
Daiwa Tsukijiekimae
Daiwa Tsukiji
Daiwa Tsukiji 616
Five Central Daiwa Tsukishima
Wards ofTokyo
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Nihombashi Honcho
Daiwa Ginza 1-chome
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note 9)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building (Note 8)

Structureandnumber offloors(Note 1)SRC
B3 / 12F
SRC
B3 / 8F
SRC
B1 / 12FS / SRC
B2 / 5F
SRC
8F
SRC
B2 / 10FRC
B1 / 4F
SRC / RC
B1 / 7F
S
8F
SRC
B1 / 8F
SRC
10F
SRC
B1 / 7F
SRC
B1 / 9F
S
5F
SRC
B2 / 7F
SRC
B2 / 9F
SRC
B1 / 10F
SRC
B2 / 11F
SRC
B1 / 8F
SRC
B2 / 9F
SRC
9F
S / SRC
B3 / 34F
RC
B1 / 9F
SRC
8FS
B1 / 8F
SRC
B1 / 10F
SRC
9F
S / SRC
B1 / 8F

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Rent revenue
Occupancy
during current
rate
period(%)(thousand yen)
(Note 6)(Note 7)

July 1963

8,175.28

7,531.17

27

92.1

332,158

Aug. 1972

2,032.11

2,032.11

7

100.0

84,456

Oct. 1987

9,619.67

9,464.43

53

98.3

197,836

Sept. 1990

2,715.53

2,715.53

6

100.0

124,804

June 1985

3,657.43

3,657.43

1

100.0

-

July 1993

3,663.38

3,663.38

12

100.0

127,580

Dec. 1997

2,198.61

2,198.61

4

100.0

58,602

Nov. 1996

2,386.48

2,386.48

6

100.0

80,638July 1996

2,137.53

2,137.53

1

100.0

-

Apr. 1974

2,676.52

2,668.12

7

99.6

85,947Jan. 1996

2,659.59

2,659.59

6

100.0

42,043Jan. 1990

1,487.82

1,487.82

5

100.0

44,637Mar. 1994

2,888.17

2,888.178

100.0

84,038July 1996

8,426.85

8,426.853

100.0

287,424

Apr. 1993

2,850.81

2,503.238

87.8

73,658Apr. 1984

1,697.38

1,697.38

10

100.0

52,268Jan. 1964

7,418.61

6,542.31

13

88.1

177,113Jan. 1962

3,758.43

2,668.68

11

71.0

123,508

Oct. 1974

3,265.83

3,265.83

9

100.0

99,574Oct. 1987

2,690.90

2,690.90

7

100.0

88,859Apr. 1973

11,614.92

11,614.92

7

100.0

322,259

Sept. 1995

45,543.98

42,832.08

36

94.0

2,397,916

Aug. 2006

2,480.65

2,480.65

5

100.0

117,926

Mar. 1985

2,379.31

2,379.31

8

100.0

59,204Mar. 1997

3,164.26

3,164.26

7

100.0

98,614

July 1993

4,815.84

4,815.84

12

100.0

132,573

Mar. 1987

2,882.61

2,882.61

6

100.0

88,387

Apr. 2010

5,899.11

5,899.11

1

100.0

-

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period

RegionProperty nameDaiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Shibuya Dougenzaka
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Azabu Green Terrace

Structureandnumber offloors(Note 1)S
9F
S / SRC
B1 / 15F
S
8F
S / RC
B2 / 11F
SRC
B1/11F
SRC
B2/7F
S
B1/12FS / RC
B1 / 6F

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Feb. 2010

2,889.34

2,889.348

100.0

85,490Oct. 2002

13,960.87

13,960.87

6

100.0

694,408

May 2010

2,143.08

2,143.08

6

100.0

59,620Jan. 2012

6,751.31

6,751.31

18

100.0

254,882

Mar. 1988

4,144.90

4,144.90

5

100.0

143,512

Sept. 1990

8,794.51

7,554.29

18

85.8

319,556

Dec. 1988

6,327.95

6,327.95

8

100.0

232,583

Sept. 2009

13,234.39

13,234.39

10

100.0

368,139

213,433.96

206,360.46

365

96.6

7,904,506

Jan. 1992

5,347.27

5,347.27

6

100.0

142,125

June 1993

4,461.47

4,461.47

7

100.0

83,413Feb. 1994

7,470.18

7,470.18

25

100.0

163,389

July 1991

6,549.98

6,549.98

14

100.0

192,375

Sept. 2007

1,786.06

1,786.06

5

100.0

52,476

Total for Five Central Wards of Tokyo (36 properties)
Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
Benex S-3
GreaterTokyo

Daiwa Shinagawa North
Daiwa Osaki 3-chomeS
B1 / 5F
SRC / S
B1 / 9FS / SRC
B1 / 12F
SRC
B1 / 11F
S / RC
B1 / 6F

Total
number oftenants(Note 5)

Daiwa Kamiooka

S / SRC
B3 / 7F

May 2011

2,630.30

2,248.34

8

85.4

64,056Integral Tower (Note 10)

S/SRC
B2/18F

June 1993

17,710.63

17,630.43

999.5

553,41045,955.89

45,493.73

74

98.9

1,251,247

Sept. 1986

5,719.52

5,477.80

10

95.7

95,907

Dec. 2007

7,461.90

7,461.90

24

100.0

224,740

Feb. 2008

13,517.62

13,517.62

6

100.0

216,162

26,699.04
286,088.89

26,457.32
278,311.51

40
479

99.0
97.2

536,8099,692,563

Total for Greater Tokyo (7 properties)
Daiwa Minami-Senba
Major
Regional
CitiesRent revenue
Occupancy
during current
rate
period(%)(thousand yen)
(Note 6)(Note 7)

Construction
completion(Note 2)

Daiwa Meieki
Kitahama Grand Building

SRC
B1 / 8F
S
12F
S / SRC
B1 / 16F

Total for Major Regional Cities (3 properties)
Total (46 properties)(Note 1) “Structure and number of floors” are the entries in the real estate registry of the building of the applicable investment
real estate property. “S” refers to steel-framed structure, “RC” refers to reinforced concrete structure, “SRC” refers tosteel-framed reinforced concrete structure, “B” refers to floors below ground and “F” refers to floors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment real estate
property.
(Note 3) “Leasable floor area” represents the floor area of the building of the applicable property that is leasable, not including
the leasable area of the land (including level parking space), and is the floor area indicated in the lease contract, etc. as ofNovember 30, 2014.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease agreements, etc. executed with
end-tenants as of November 30, 2014.
(Note 5) “Total number of tenants” is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 6) “Occupancy rate” is the figure arrived at when leased floor area is divided by leasable floor area, rounded down to one
decimal place.
(Note 7) “Rent revenue during current period” is rent income, common area charges income, parking lot income and otherincome generated from the applicable investment real estate property during the 18th Fiscal Period, rounded down to the- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
nearest thousand yen. The rent revenue during current period of Daiwa Shibuya SS (569 thousand yen) which wastransferred on May 30, 2014 is not included.
(Note 8) Not shown for such reasons as consent was not obtained from major tenants to disclose the rent revenue during current
period for the properties.
(Note 9) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the common
ownership interest corresponding to six-sevenths of the entire property. Accordingly, leasable floor area and leased floorarea are the floor areas corresponding to six-sevenths of the entire building.
(Note 10) The buildings consist of three registrations. Of these, the details of the major building are shown here.

- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A. Capital Expenditures for 18th Fiscal Period
The following are the principal capital expenditures arising from renovation construction work, etc. currently planned forexisting portfolio properties. Please note that the expected construction amount includes portions that are expensed as aseparate account item of accounting costs.
Name of real estate properties(Location)

Expected construction amount (million yen)Amount paid
Total amount
Total amountduring current period
already paid

Scheduled
implementation
periodPurposeUpgrading of CVCF and renovation

Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

work for disaster-prevention

From:
To:

Oct. 2013
Mar. 2015

406

54

261

From:
To:

Oct. 2013
Sept. 2015

297

72

59

From:
To:

Oct. 2013
Sept. 2015

110

32

16

From:
To:
From:
To:

Jan. 2015
May 2015
Feb. 2015
May 2015

101

–

–

95

–

–

equipment
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

Renovation work for central

Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

Upgrading of main central supervisory

supervisory systemsystem VAV and controller
Construction of entrance on public open
space side

Daiwa Akasaka(Minato-ku, Tokyo)
Daiwa Tsukishima Building(Chuo-ku, Tokyo)

Upgrading of air-conditioning system

B. Capital Expenditures during 18th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the 18th
Fiscal Period. Capital expenditures for the 18th Fiscal Period amounted to 569 million yen and, when combined with the 125
million yen in repair expenses charged to 18th Fiscal Period expenses, totals 694 million yen in construction work
implemented.
Name of real estate properties(Location)
Daiwa Tsukishima Building(Chuo-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Nihonbashi-Horidomecho(Chuo-ku, Tokyo)

PurposeConstruction amount paid
(million yen)

PeriodWork for air-conditioning system
Upgrading of DC power supply for emergency lighting
Work for air-conditioning system

Other

From:
To:
From:
To:
From:
To:
From:
To:

Sept. 2014
Nov. 2014
Jul. 2014
Jul. 2014
Oct. 2014
Nov. 2014
Jun. 2014
Nov 2014

75
56
41
396

Total

569

C. Reserve Amount for Long-Term Repair Plans (Reserve for Repairs)
The Investment Corporation sets aside the following reserve for repairs from cash flows during the fiscal period for thepayment of future major repairs.
(Unit: million yen)
14th
15th
16th
17th
18th
FiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscal period[From: June 1, 2012
To: Nov. 30, 2012]

Balance of reserve at
beginning of previous
periodAmount of reserve incurrent period
Reversal of reserve incurrent period
Amount carried forward to
next period[From: Dec. 1, 2012
To: May 31, 2013][From: June 1, 2013
To: Nov. 30, 2013][From: Dec. 1, 2013
To: May 31, 2014][From: June 1, 2014
To: Nov. 30, 2014]

1,058

611

806

830

1,021

89

619

181

794

764

536

424

156

603

586

611

806

830

1,021

1,199

- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period

5.2.4. Summary of Estimated Price at End of Period (As of November 30, 2014)
Summary of Appraisal Report
Property nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho
Daiwa A Hamamatsucho (Note 2)
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho
Daiwa Shimbashi 510
Daiwa Tsukijiekimae (Note 3)
Daiwa Tsukiji
Daiwa Tsukiji 616
Daiwa Tsukishima
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Nihombashi Honcho
Daiwa Ginza 1-chome
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note 4)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building
Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Shibuya Dougenzaka
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Azabu Green Terrace
Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
Benex S-3
Daiwa Shinagawa North
Daiwa Osaki 3-chome
Daiwa Kamiooka
Integral Tower

Estimated priceat end of period(million yen)
(Note 1)

Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminalrate
cap rate(%)(%)

15,60015,900

4.1

15,200

3.9

4.3

3,200

3,250

4.0

3,150

3.8

4.2

7,200

7,320

4.7

7,150

4.5

4.9

4,170

4,250

4.4

4,080

4.2

4.6

3,220

3,270

4.9

3,170

4.7

5.1

2,870

2,930

4.5

2,840

4.3

4.7

2,140

2,150

4.3

2,130

4.1

4.5

2,690

2,760

4.3

2,660

4.1

4.5

2,550

2,580

4.6

2,530

4.4

4.8

2,430

2,490

4.6

2,370

4.4

4.8

1,470

1,480

4.8

1,460

4.8

5.0

1,390

1,380

4.7

1,390

4.7

4.9

2,430

2,440

4.7

2,430

4.4

4.9

8,260

8,320

4.8

8,240

4.5

5.0

2,540

2,570

4.6

2,510

4.4

4.8

1,720

1,750

4.5

1,680

4.3

4.7

6,830

7,080

4.5

6,720

4.2

4.7

4,170

4,230

4.3

4,100

4.0

4.5

3,060

3,110

4.5

3,000

4.3

4.7

2,760

2,910

4.2

2,690

4.0

4.4

12,30012,600

4.3

12,0004.1

4.5

113,000

139,000

3.8

129,000

3.6

4.0

4,400

4,500

4.2

4,290

4.0

4.4

2,030

2,050

4.8

2,000

4.6

5.0

3,010

3,180

4.6

2,930

4.6

4.8

4,910

5,060

4.5

4,850

4.3

4.7

3,090

3,310

4.4

3,010

4.4

4.6

6,730

6,860

4.1

6,680

3.9

4.3

3,950

4,060

4.1

3,900

3.9

4.3

29,60029,7003.9

29,400

3.6

4.0

1,920

1,960

4.7

1,900

4.5

4.9

10,70010,9004.0

10,600

3.8

4.2

4,850

5,000

4.2

4,790

4.0

4.4

10,80011,0004.0

10,700

3.8

4.2

7,630

7,680

4.1

7,580

3.8

4.2

15,30015,6004.2

15,000

4.0

4.4

3,620

3,680

5.0

3,590

4.8

5.2

3,330

3,400

4.9

3,300

4.7

5.1

3,260

3,340

5.5

3,180

5.3

5.7

5,890

5,970

4.8

5,810

4.6

5.0

2,060

2,100

4.5

2,040

4.3

4.7

2,160

2,160

5.3

2,160

5.1

5.5

16,00016,3004.5

15,800

4.3

4.7- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
Summary of Appraisal Report
Property name

Estimated priceat end of period(million yen)
(Note 1)

Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminalrate
cap rate
(%)
(%)

2,600
2,650
5.3
2,550
5.1
5.5
Daiwa Minami-Senba
6,560
6,740
4.9
6,480
4.9
5.1
Daiwa Meieki
10,20010,500
4.5
10,100
4.3
4.7
Kitahama Grand Building
370,600
401,470
383,140
Total(Note 1) “Estimated price at end of period” is the price as of November 30, 2014 stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii Appraisal & Investment
Consulting, Inc. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 2) For Daiwa A Hamamatsucho, the prices are those pertaining to the Investment Corporation’s ownership interest.
(Note 3) Discount rate for Daiwa Tsukijiekimae is the figure after the 5th fiscal year. (4.6% in and before the 2nd fiscal year,
4.7% in 3rd and 4th fiscal years.)(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment Corporation’sownership interest, and the price indicated by the direct capitalization method and price indicated by the DCF method
are the prices pertaining to the entire Property.

- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
5.2.5. Status of Income (Loss), etc. of Individual Properties
The following table lists the status of income (loss), etc. of each property for the 18th Fiscal Period (from June 1, 2014 toNovember 30, 2014). Income (loss) information is presented in accordance with “3. Financial Statements; 3.7. Notes to
Significant Accounting Policies” outlined earlier.
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Sarugakucho(Note 4)

Daiwa
Ginza

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

14,100

3,050

8,265

4,550

3,190

Investment ratio (%)

Daiwa
Ginza Annex

Daiwa
MinamiAoyama

Property name

Daiwa
Shibaura

3.6

0.8

2.1

1.2

0.8

Carrying amount (million yen)

13,430

2,855

8,064

4,450

3,234

Estimated price at end of period(million yen)

15,600

3,200

7,200

4,170

3,220

Number of tenants (Note 1)

27

7

53

6

1

Leasable floor area (m2)8,175.28

2,032.11

9,619.67

2,715.53

3,657.43

Leased floor area (m2)

7,531.17

2,032.11

9,464.43

2,715.53

3,657.43

End of Nov. 2012

94.3

100.0

98.8

100.0

100.0

End of May 2013

96.4

100.0

87.4

94.1

100.0

End of Nov. 2013

86.9

100.0

90.2

94.1

100.0

End of May 2014

92.6

100.0

98.7

100.0

100.0

End of Nov. 2014

92.1

100.0

98.3

100.0

100.0

183

183

183

183

183

340,463

84,456200,358

124,804–

Rent revenue – real estate

332,158

84,456

197,836

124,804–

Other lease business revenue

8,305

–

2,521

–

–

165,504

42,334

92,40539,633–

Consignment expenses

20,898

7,045

18,860

5,262–

Utilities expenses

32,514

7,850

20,857

10,014–

Taxes and dues

27,522

9,083

19,203

11,714

–

444

104

412

149

–

Repair expenses

1,785

699

7,734

588

–

Depreciation (C)70,467

17,551

25,338

11,904–

Other lease business expenses

11,841––––

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

174,958

42,121

107,952

85,170–NOI (E) [(D) + (C)] (thousand yen)

245,426

59,673

133,290

97,07586,310Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A) (thousand
yen)

Total property leasing expenses (B) (thousandyen)

Income (loss)
information

Reference
information

Non-life insurance expenses

Capital expenditures (F) (thousand yen)

14,248

1,592

15,187

3,795

3,650

NCF [(E) – (F)] (thousand yen)

231,178

58,080118,103

93,27982,660

Expense rate (%) [(B) ÷ (A)]

48.61

50.13

46.12

31.76

–

55,06318,02137,881

22,975

13,273

128,190

34,770218,640

111,190

162,170

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa Misakicho Daiwa Shimbashi(Note 4)510

Property nameDaiwa A
Hamamatsucho

Daiwa Jingumae

Daiwa
Shibadaimon

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

2,865

2,800

2,578

2,346

2,080

Investment ratio (%)

0.7

0.7

0.7

0.6

0.5

Carrying amount (million yen)

2,822

2,704

2,408

2,216

2,120

Estimated price at end of period(million yen)

2,870

2,140

2,690

2,550

2,430

Number of tenants (Note 1)

12

4

6

1

7

Leasable floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,676.52

Leased floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,668.12

End of Nov. 2012

100.0

100.0

100.0

100.0

99.7

End of May 2013

100.0

100.0

100.0

100.0

99.7

End of Nov. 2013

100.0

100.0

100.0

100.0

99.4

End of May 2014

100.0

100.0

100.0

100.0

99.4

End of Nov. 2014

100.0

100.0

100.0

100.0

99.6

183

183

183

183

183

127,580

75,52280,638–85,947

127,580

58,60280,638–85,947–

13,919–––

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A) (thousandyen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B) (thousandyen)

Income (loss)
information

Reference
information

79,59826,892

34,591–

26,941

Consignment expenses

11,771

6,535

7,844

–

5,119

Utilities expenses

10,911

5,862

8,729

–

8,108

Taxes and dues

8,657

6,304

6,242

–

5,555

Non-life insurance expenses

190

83

115

–

113

Repair expenses

5,097

739

1,967

–

1,195

Depreciation (C)13,531

7,360

9,692

–

6,847

Other lease business expenses

29,438

7–––

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

47,981

45,62946,046–59,006

NOI (E) [(D) + (C)] (thousand yen)

61,51352,98955,73862,98665,854

Capital expenditures (F) (thousand yen)

37,680–

10,133–

9,003

NCF [(E) – (F)] (thousand yen)

23,83352,98945,60462,98656,850

Expense rate (%) [(B) ÷ (A)]

62.39

37.08

42.90

–

31.5

17,073

12,60812,14810,306

11,049115,840

84,98098,390129,500

117,390

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Tsukiji

Daiwa
Tsukiji 616

Daiwa
Nihonbashi
Horidomecho

Property name

Daiwa
Tsukijiekimae

Daiwa
Tsukishima

Acquisition dateJan. 2006

Jan. 2006

Mar. 2006

Mar. 2006

May 2006

Acquisition price (million yen)

1,560

1,240

2,440

7,840

2,520

Investment ratio (%)

0.4

0.3

0.6

2.0

0.7

Carrying amount (million yen)

1,379

1,184

2,247

7,022

2,511

Estimated price at end of period(million yen)

1,470

1,390

2,430

8,260

2,540

Number of tenants (Note 1)

6

5

8

3

8

Leasable floor area (m2)2,659.59

1,487.82

2,888.17

8,426.85

2,850.81

Leased floor area (m2)2,659.59

1,487.82

2,888.17

8,426.85

2,503.23

Occupancy rate (%)
Leasing
information

End of Nov. 2012

0.0

100.0

100.0

100.0

100.0

End of May 2013

10.3

100.0

100.0

100.0

100.0

End of Nov. 2013

100.0

100.0

100.0

100.0

100.0

End of May 2014

100.0

100.0

100.0

100.0

100.0

End of Nov. 2014

100.0

100.0

100.0

100.0

87.8

183

183

183

183

183

42,04347,852

88,238287,424

78,10042,043

44,63784,038287,42473,658

–

3,215

4,200

–

4,441

Number of days of asset management
Total property leasing revenue (A) (thousandyen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B) (thousandyen)

Income (loss)
information

30,511

20,06847,092110,075

32,899Consignment expenses

4,150

5,119

6,030

12,464

5,630

Utilities expenses

7,406

3,589

8,603

32,376

6,483

Taxes and dues

5,028

3,823

6,765

13,191

6,563

Non-life insurance expenses

96

57

126

310

130

Repair expenses

356

250

4,995

2,097

1,481

Depreciation (C)13,455

7,228

20,571

49,635

12,610

Other lease business expenses

18

–

–

–

–

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

11,531

27,784

41,145

177,348

45,200NOI (E) [(D) + (C)] (thousand yen)

24,98635,012

61,717226,983

57,811

Capital expenditures (F) (thousand yen)

Reference
information

–

2,353

18,30979,102

46,717

NCF [(E) – (F)] (thousand yen)

24,98632,65943,408147,881

11,093

Expense rate (%) [(B) ÷ (A)]

72.57

41.94

53.37

38.30

42.12

10,024

7,587

13,19926,382

12,958

114,750

49,77073,410331,450

139,000

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Nihombashi
HonchoDaiwa
Ginza 1-chome

Daiwa Kyobashi

Daiwa Kojimachi
4-chomeJuly 2006

July 2006

July 2006

Oct. 2006

1,600

7,420

4,620

3,460

2,910

Property nameDaiwa Azabudai

Acquisition date

May 2006

Acquisition price (million yen)
Investment ratio (%)

0.4

1.9

1.2

0.9

0.8

Carrying amount (million yen)

1,548

7,045

4,472

3,322

2,870

Estimated price at end of period(million yen)

1,720

6,830

4,170

3,060

2,760

Number of tenants (Note 1)

10

13

11

9

7

Leasable floor area (m2)

1,697.38

7,418.61

3,758.43

3,265.83

2,690.90

Leased floor area (m2)

1,697.38

6,542.31

2,668.68

3,265.83

2,690.90

End of Nov. 2012

80.2

97.6

98.8

100.0

100.0

End of May 2013

100.0

97.6

89.0

99.5

96.0

End of Nov. 2013

100.0

97.3

98.3

100.0

100.0

End of May 2014

100.0

87.3

99.2

100.0

100.0

End of Nov. 2014

100.0

88.1

71.0

100.0

100.0

183

183

183

183

183

52,268177,113

123,508

99,57488,85952,268177,113

123,508

99,57488,859

–

–

–

–

–

43,853

48,945

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A) (thousandyen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B) (thousandyen)

Income (loss)
information

21,88770,54546,223

Consignment expenses

3,743

11,884

8,275

6,231

6,309

Utilities expenses

4,345

16,057

8,841

10,6409,659

Taxes and dues

7,027

14,702

4,808

11,813

7,791

Non-life insurance expenses

83

292

143

136

133

Repair expenses

606

813

913

1,463

6,660

Depreciation (C)8,300

29,683

20,25818,354

11,480

Other lease business expenses

Reference
information

–

–

–

–

–

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

30,381

106,568

77,28455,721

39,914

NOI (E) [(D) + (C)] (thousand yen)

38,681

136,251

97,54374,076

51,395

Capital expenditures (F) (thousand yen)

7,144

3,294

1,770

10,000

2,027

NCF [(E) – (F)] (thousand yen)

31,536

132,957

95,77364,07549,368

Expense rate (%) [(B) ÷ (A)]

41.88

39.83

37.43

44.04

55.08

9,599

22,906

15,581

13,927

29,161

67,880292,920

196,460

140,200

68,810

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property nameDaiwa Onarimon

Shinjuku Maynds
Tower

Acquisition date

Dec. 2006

July 2007 andNov. 2007

Acquisition price (million yen)

13,8603.6

Carrying amount (million yen)
Estimated price at end of period(million yen)

Investment ratio (%)

Number of tenants (Note 1)

SHIBUYAEDGE

Daiwa
Kodenmacho

Daiwa Jimbocho

July 2007

Aug. 2007

Mar. 2010

133,800

5,900

2,460

4,150

34.5

1.5

0.6

1.1

13,525130,234

5,746

2,411

4,074

12,300113,000

4,400

2,030

3,010

7

36

5

8

7

Leasable floor area (m2)

11,614.92

45,543.98

2,480.65

2,379.31

3,164.26

Leased floor area (m2)

11,614.92

43,832.08

2,480.65

2,379.31

3,164.26

End of Nov. 2012

100.0

98.3

100.0

100.0

86.7

End of May 2013

100.0

94.9

100.0

100.0

100.0

End of Nov. 2013

100.0

95.7

100.0

100.0

100.0

End of May 2014

100.0

94.7

100.0

100.0

100.0

End of Nov. 2014

100.0

94.0

100.0

100.0

100.0

183

183

183

183

183

322,259

2,402,373

117,926

59,204

98,614322,259

2,397,916

117,926

59,204

98,614

–

4,457

–

–

–

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A) (thousandyen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B) (thousandyen)

Income (loss)
information

127,886

1,142,965

38,461

23,703

46,970Consignment expenses

31,682

158,291

6,090

4,200

6,266

Utilities expenses

29,659311,740

8,451

5,337

9,998

Taxes and dues

33,658

246,824

7,254

3,618

10,616

423

3,729

106

83

143

Non-life insurance expenses
Repair expenses

2,523

39,537

743

885

1,162

Depreciation (C)29,938375,280

15,994

8,756

18,741Other lease business expenses

Reference
information

–

7,560

–

822

40

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

194,373

1,259,408

79,28535,50051,644

NOI (E) [(D) + (C)] (thousand yen)

224,312

1,634,689

95,27944,25770,386

Capital expenditures (F) (thousand yen)

12,410168,230

–

273

7,651

NCF [(E) – (F)] (thousand yen)

211,910

1,466,458

95,27943,98462,735

Expense rate (%) [(B) ÷ (A)]

39.68

47.58

32.77

40.04

47.63

67,244

493,583

14,501

7,218

20,930459,880

2,502,610

48,29070,970126,090

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 47 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
RegionProperty nameAcquisition date

Price
information

Five Central Wards of Tokyo
Daiwa
NishiShimbashi

Daiwa
Kayabacho
Building(Note 4)

Daiwa
Kudan

Daiwa Jimbocho3-chomeE-SPACE
TOWER

Aug. 2010

Sept. 2010

Mar. 2011

Mar. 2011

July 2011

Acquisition price (million yen)

5,000

4,000

5,600

3,550

24,000Investment ratio (%)

1.3

1.0

1.4

0.9

6.2

Carrying amount (million yen)

4,931

3,873

5,451

3,508

23,807

Estimated price at end of period(million yen)

4,910

3,090

6,730

3,950

29,600

Number of tenants (Note 1)

12

6

1

8

6

Leasable floor area (m2)

4,815.84

2,882.61

5,899.11

2,889.34

13,960.87

Leased floor area (m2)

4,815.84

2,882.61

5,899.11

2,889.34

13,960.87

End of Nov. 2012

80.7

100.0

100.0

100.0

100.0

End of May 2013

100.0

100.0

100.0

100.0

100.0

End of Nov. 2013

100.0

100.0

100.0

100.0

100.0

End of May 2014

100.0

100.0

100.0

88.1

89.1

End of Nov. 2014

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

132,573

88,387–85,490694,408

132,573

88,387–85,490694,408

–

–

–

–

–

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A) (thousandyen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B) (thousandyen)

Income (loss)
information

81,63349,193–47,360235,625

Consignment expenses

16,870

5,672

–

9,129

50,141

Utilities expenses

12,897

8,822

–

8,139

62,599Taxes and dues

15,610

8,464

–

9,330

56,335

Non-life insurance expenses

246

121

–

127

673

Repair expenses

2,149

1,714

–

912

1,799

Depreciation (C)33,86024,398–19,72264,003

Other lease business expenses

Reference
information

3

–

–

–

72

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

50,94039,193–38,129458,783

NOI (E) [(D) + (C)] (thousand yen)

84,80063,592

147,583

57,851

522,786

Capital expenditures (F) (thousand yen)

1,234

499

–

–

7,438

NCF [(E) – (F)] (thousand yen)

83,56663,093

147,583

57,851

515,348

Expense rate (%) [(B) ÷ (A)]

61.58

55.66

–

55.40

33.93

30,91816,86025,015

18,610112,633

187,140

141,450

38,44026,390317,590

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 48 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Nihonbashi
Hongokucho
Tosei

Acquisition date

May 2012

Acquisition price (million yen)
Investment ratio (%)

Daiwa Shibuya
Dougenzaka

Daiwa Akasaka

Daiwa Shibuya
Miyamasuzaka

Dec. 2012 andApr. 2013

July 2013

Aug. 2013

Sept. 2013

1,721

9,650

4,500

9,200

7,000

0.4

2.5

1.2

2.4

1.8

Carrying amount (million yen)

1,680

9,906

4,506

9,273

7,191

Estimated price at end of period(million yen)

1,920

10,7004,850

10,8007,630

Number of tenants (Note 1)

shinyoncurumu

6

18

5

18

8

Leasable floor area (m2)2,143.08

6,751.31

4,144.90

8,794.51

6,327.95

Leased floor area (m2)2,143.08

6,751.31

4,144.90

8,554.29

6,327.95

End of Nov. 2012

100.0

–

–

–

–

End of May 2013

100.0

55.9

–

–

–

End of Nov. 2013

100.0

67.5

100.0

95.6

100.0

End of May 2014

100.0

96.3

100.0

100.0

100.0

End of Nov. 2014

100.0

100.0

100.0

85.8

100.0

183

183

183

183

183

59,620254,882

143,512343,136

232,583

59,620254,882

143,512319,556

232,583–––

23,580–Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A) (thousandyen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B) (thousandyen)

Income (loss)
information

25,964

119,901

61,593

141,479

88,759Consignment expenses

4,099

24,983

12,70828,57521,198

Utilities expenses

3,907

25,805

16,16551,81820,600

Taxes and dues

4,418

33,414

13,57032,82520,307

78

316

215

431

302

Non-life insurance expenses
Repair expenses

300

83

1,014

5,248

5,939

Depreciation (C)13,16035,297

17,91822,57920,386

Other lease business expenses

–

–

–

–

24

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

33,656

134,980

81,918201,657

143,824

NOI (E) [(D) + (C)] (thousand yen)

46,816170,278

99,837224,236

164,211

Capital expenditures (F) (thousand yen)

Reference
information

–

450

1,731

15,017

20,268

NCF [(E) – (F)] (thousand yen)

46,816

169,828

98,105

209,219

143,942

Expense rate (%) [(B) ÷ (A)]

43.55

47.04

42.92

41.23

38.16

8,825

66,706

27,071

65,42040,49922,401

65,855230,176

430,612416,816

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 49 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period

Price
information

RegionFive Central
Wards of Tokyo

Property name

Azabu Green
TerraceDaiwa Kinshicho

Daiwa
Higashi-Ikebukuro

Bennex S-3

Daiwa Shinagawa
North

Acquisition dateJul. 2014

Oct. 2005

Oct. 2005

May 2006

July 2007

Acquisition price (million yen)

14,000

3,653

2,958

4,950

7,710

3.6

0.9

0.8

1.3

2.0

Carrying amount (million yen)

14,383

3,355

2,782

4,281

7,339

Estimated price at end of period(million yen)

15,300

3,620

3,330

3,260

5,890

Investment ratio (%)

Number of tenants (Note 1)

Greater Tokyo

10

6

7

25

14

Leasable floor area (m2)

13,234.39

5,347.27

4,461.47

7,470.18

6,549.98

Leased floor area (m2)

13,234.39

5,347.27

4,461.47

7,470.18

6,549.98

End of Nov. 2012

–

100.0

100.0

88.0

100.0

End of May 2013

–

100.0

100.0

98.2

100.0

End of Nov. 2013

–

100.0

100.0

93.6

100.0

End of May 2014

–

100.0

92.2

98.2

100.0

End of Nov. 2014

100.0

100.0

100.0

100.0

100.0

150

183

183

183

183

368,139

142,125

88,313

163,389

192,905

368,139

142,125

88,413

163,389

192,375

–

–

4,900

–

530

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A) (thousandyen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B) (thousandyen)

Income (loss)
information

114,401

77,84966,493

97,59489,268

Consignment expenses

26,586

13,89014,197

18,674

15,718

Utilities expenses

45,206

15,82914,38922,18020,3978

12,088

8,812

15,26918,531

513

253

242

377

362

Taxes and dues
Non-life insurance expenses
Repair expenses

314

5,915

5,936

2,176

1,477

Depreciation (C)41,752

29,87022,91438,91532,779Other lease business expenses

19

–

–

–

–

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

253,738

64,275

21,81965,795

103,637

NOI (E) [(D) + (C)] (thousand yen)

295,490

94,14644,734

104,711

136,417

Capital expenditures (F) (thousand yen)

Reference
information

3,184

12,277

18,7408,929

11,003

NCF [(E) – (F)] (thousand yen)

292,306

81,86925,994

95,781

125,413

Expense rate (%) [(B) ÷ (A)]

31.08

54.78

75.29

59.73

46.28

–

23,594

17,54630,53735,975325,054285,600

141,210

402,880

191,640

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 50 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period
RegionProperty nameAcquisition date

Price
information

Greater Tokyo

Major Regional Cities

Daiwa Osaki
3-chomeDaiwa
Kamiooka

Integral Tower

Daiwa
Minami-Senba

Daiwa Meieki

Sept. 2012

Mar. 2013

May 2014

Aug. 2007

Feb. 2013

Acquisition price (million yen)

1,650

2,000

15,220

4,810

5,300

Investment ratio (%)

0.4

0.5

3.9

1.2

1.4

Carrying amount (million yen)

1,674

2,023

15,290

4,727

5,419

Estimated price at end of period(million yen)

2,060

2,160

16,000

2,600

6,560

Number of tenants (Note 1)

5

8

9

10

24

Leasable floor area (m2)

1,786.06

2,630.30

17,710.63

5,719.52

7,461.90

Leased floor area (m2)

1,786.06

2,248.34

17,630.43

5,477.80

7,461.90

End of Nov. 2012

100.0

–

–

92.7

–

End of May 2013

100.0

100.0

–

100.0

85.4

End of Nov. 2013

100.0

92.2

–

100.0

81.3

End of May 2014

88.4

85.4

96.7

75.7

98.4

End of Nov. 2014

100.0

85.4

99.5

95.7

100.0

183

183

183

183

183

52,47664,056553,91095,907

224,740

52,47664,056553,41095,907

224,740

–

–

500

–

–

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A) (thousandyen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B) (thousandyen)

Income (loss)
information

24,58638,263229,124

78,33996,242

Consignment expenses

4,630

7,217

54,79823,234

21,339

Utilities expenses

4,231

5,398

80,67911,58919,315

Taxes and dues

3,939

6,443

43

10,592

19,845

Non-life insurance expenses

71

122

905

242

392

Repair expenses

689

1,358

1,615

736

397

Depreciation (C)11,025

17,72490,95831,943

34,952Other lease business expenses

–

–

122

–

–

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

27,88925,792

324,785

17,567

128,497

NOI (E) [(D) + (C)] (thousand yen)

38,91443,517415,744

49,511

163,450

Capital expenditures (F) (thousand yen)

Reference
information

328

1,178

1,447

11,306

253

NCF [(E) – (F)] (thousand yen)

38,58642,338414,296

38,205

163,197

Expense rate (%) [(B) ÷ (A)]

46.85

59.73

41.36

81.68

42.82

7,878

12,884–

21,13339,68737,912

24,782

834,324

107,090

170,803

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses (thousandyen) (Note 2)- 51 -

Daiwa Office Investment Corporation (8976) Financial Report for the 18th Fiscal Period

Price
information

RegionMajor Regional
CitiesProperty nameKitahama Grand
Building

Acquisition dateAug. 2014

Acquisition price (million yen)

9,481

Investment ratio (%)

2.4

Carrying amount (million yen)

9,621

Estimated price at end of period(million yen)

10,200

Number of tenants (Note 1)

6

Leasable floor area (m2)

13,517.62

Leased floor area (m2)

13,517.62

Occupancy rate (%)
Leasing
information

End of Nov. 2012–

End of May 2013–

End of Nov. 2013–

End of May 2014–

End of Nov. 2014

100.0

Number of days of asset management
Total property leasing revenue (A) (thousandyen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B) (thousandyen)

Income (loss)
information

216,162
216,162–73,085

Consignment expenses

16,979

Utilities expenses

20,235

Taxes and dues

11

Non-life insurance expenses

400

Repair expenses

135

Depreciation (C)35,258Other lease business expenses

64

Operating income (loss) from property leasing(D) [(A) – (B)] (thousand yen)

143,077

NOI (E) [(D) + (C)] (thousand yen)

178,335

Capital expenditures (F) (thousand yen)

Reference
information

122–

NCF [(E) – (F)] (thousand yen)

178,335

Expense rate (%) [(B) ÷ (A)]33.81

Annual amount of fixed property tax, etc. forfiscal 2014 (thousand yen)
Estimated long-term repair expenses (thousandyen) (Note 2)–
264,054(Note 1) Number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, the concerned
tenant is counted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimated to arise
over the 12-year period from the 1st year to the 12th year as stated in the building investigation diagnosis report.
(Note 3) Estimated long-term repair expenses of “Daiwa Kayabacho Building” are the total amount of repair expenses andrenewal expenses estimated to arise over the 10-year period from the 1st year to the 10th year as stated in the building
investigation diagnosis report.
(Note 4) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc. for theproperty.

- 52 -