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 28th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:

Daiwa Office Investment Corporation
8976
Motoi Takahashi, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Toshio Fukushima., President and Representative Director
Takashi Chiba, Manager of Corporate Division

January 21, 2020
Stock Exchange Listing: TSE
URL: http://www.daiwa-office.co.jp

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:

TEL: +81-3-6215-9649
February 18, 2020
February 14, 2020

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 28th Fiscal Period
28th Fiscal Period: Fiscal period ended November 2019 (from June 1, 2019 to November 30, 2019)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
28th
Period27th
PeriodOperating income

Ordinary income

Net income¥14,094 million

1.9%¥7,114 million

1.9%¥6,463 million

2.3%¥6,462 million

2.3%¥13,833 million

4.8%¥6,979 million

6.8%¥6,320 million

7.1%¥6,320 million

7.1%

Net income
per unit
28th
Period27th
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥13,139

2.5%

1.3%

45.9%

¥12,848

2.5%

1.3%

45.7%

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

Total distribution
amount(excluding distribution
amount in excess ofearnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payoutDistribution
amount to
net assets

28th¥13,139¥6,462 million¥0¥– million
100.0%
2.5%
Period27th¥12,559¥6,177 million¥0¥– million
97.8%
2.4%
Period(Note) Distribution amount per unit for the 27th Fiscal Period is calculated by dividing the amount obtained by deducting
provision of reserve for reduction entry (¥142 million) from unappropriated retained earnings by the total number ofinvestment units issued and outstanding. The main difference between distribution amount per unit and net income
per unit is due to the calculation.

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This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(3) Financial Position
Unitholders’ equity to
Net assets
Total assets
Net assets
total assets
per unit
28th¥486,030 million¥254,892 million
52.4%¥518,203
Period27th¥485,636 million¥254,460 million
52.4%¥517,324
Period(4) Cash FlowsNet cashprovided by (used in)operating activities
28th
Period27th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥7,243 million¥196 million(¥6,202 million)¥31,380 million¥22,979 million(¥15,746 million)(¥400 million)¥30,143 million

2. Management Status Forecasts for the 29th Fiscal Period and 30th Fiscal Period
29th Fiscal Period: Fiscal period ending May 2020 (from December 1, 2019 to May 31, 2020)
30th Fiscal Period: Fiscal period ending November 2020 (from June 1, 2020 to November 30, 2020)[% figures show the period-over-period increase (decrease)]

Operating revenue
29th
Period30th
PeriodOperating income

Net income¥14,203 million

0.8%¥7,241 million

1.8%¥6,593 million

2.0%¥6,591 million

2.0%¥14,483 million

2.0%¥7,369 million

1.8%¥6,741 million

2.2%¥6,739 million

2.2%

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

29th
Period30th
PeriodOrdinary income

Distribution amount in excess of earnings per unit

¥13,400¥0¥13,700¥0(Reference) Estimated net income per unit for the 29th Fiscal Period: ¥13,400; 30th Fiscal Period: ¥13,700

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) Total Number of Investment Units Issued and Outstanding(i) Total number of investment units issued and outstanding at end of period (including treasury units):
28th Fiscal Period: 491,877 units
27th Fiscal Period: 491,877 units(ii) Total number of treasury units at end of period:
28th Fiscal Period:– units
27th Fiscal Period:– units(Note) Please refer to “Notes to Per Unit Information” on page 25 for the number of investment units used as the basis for calculating the net
income per unit.
* This financial report (kessan tanshin) is exempt from the audit by a certified public accountant or an auditing company.
* Special note
The forecast figures are forward-looking statements based on information currently available to Daiwa Office Investment Corporation and involve
uncertainties. Accordingly, the actual operating revenue, operating income, ordinary income, net income and distribution amount per unit mayvary due to changes in the status. In addition, the forecast is not a guarantee of the distribution amount. For details on the assumptions underlying
the forecast figures above, please refer to “Assumptions for the Management Status Forecasts for the 29th Fiscal Period and 30th Fiscal Period” onpage 9.

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○ Table of Contents
1. Management Status ................................................................................................................................................ 4
1.1. Management Status .......................................................................................................................................... 4
1.1.1. Overview of the Fiscal Period under Review ............................................................................................ 4
1.1.2. Outlook for the Next Fiscal Period ............................................................................................................ 6
1.2. Investment Risks .............................................................................................................................................. 9
2. Financial Statements ............................................................................................................................................ 10
2.1. Balance Sheets ............................................................................................................................................... 10
2.2. Statements of Income..................................................................................................................................... 122.3. Statements of Unitholders’ Equity ................................................................................................................. 13
2.4. Statements of Cash Distributions ................................................................................................................... 15
2.5. Statements of Cash Flows .............................................................................................................................. 16
2.6. Notes to the Going Concern........................................................................................................................... 17
2.7. Notes to Significant Accounting Policies ...................................................................................................... 17
2.8. Notes to Financial Statements........................................................................................................................ 18
2.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding................................................ 26
3. Reference Information.......................................................................................................................................... 27
3.1. Investment Status ........................................................................................................................................... 27
3.2. Investment Real Estate Properties (As of November 30, 2019) ..................................................................... 28
3.2.1. Price and Investment Ratio of Investment Real Estate Properties ........................................................... 28
3.2.2. Summary of Building and Leasing of Investment Real Estate ................................................................ 30
3.2.3. Capital Expenditures for Assets under Management .............................................................................. 32
3.2.4. Summary of Estimated Price at End of Period (As of November 30, 2019) .......................................... 34
3.2.5. Status of Income (Loss), etc. of Individual Properties ............................................................................ 36-3-

1. Management Status
1.1. Management Status
1.1.1. 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 461,061 million yen as of the last day of November 2019.
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 2,000 m2 situated in downtown Tokyo, as well as throughdedicated efforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment
The Japanese economy during the fiscal period under review saw real GDP growth rate (Second Preliminary
Estimates) for July to September 2019 at an annual rate of 1.8%, falling after a temporary standstill in the recovery
trend that had continued for eight consecutive quarters under the ongoing quantitative/qualitative monetary easing
policy by the Bank of Japan.
In the office building leasing market in central Tokyo, the vacancy rate took a turn after peaking in June 2013,
dropping to 1.56% at the end of November 2019. Led by improvement in the vacancy rate for existing large buildings,
the overall vacancy rate that includes small- to medium-sized buildings also continues to be on an improving trend.
The drop in the vacancy rate has led to an increase in office rent in some areas, and the market as a whole continues tosee increase in rent, albeit slight.
For the office building transaction market, a strong appetite for property acquisitions continued among real estatecompanies, funds (including J-REITs) and overseas investors with the continuing proactive lending attitude byfinancial institutions.
b. Management Performance
In view of increasing the ordinary EPS (EPS (net income per unit) after deducting gain on sale from 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 from
owned properties.
Concerning external growth, the Investment Corporation acquired “Daiwa Mita 2-Chome Building” (acquisition
price: 2,635 million yen) and divested “Daiwa Osaki 3-chome Building” (sale price: 2,685 million yen) throughexchange in July 2019. As a result, the Investment Corporation’s assets under management as of the end of the 28th
Fiscal Period (November 30, 2019) totaled 59 properties, the sum total of acquisition prices of which amounted to461,061 million yen.
Concerning internal growth, while the office leasing market remained strong, the Investment Corporation
conducted proactive leasing, such as capturing needs for floor expansion within the same property throughstrengthening relationships with existing tenants and reinforcing collaboration with leasing brokers and property
managers. Consequently, the occupancy rate as of the end of the 28th Fiscal Period (November 30, 2019) was 99.1%.
C. Overview of Capital Procurementa. Procurement of Capital for Repayment of Borrowings and Redemption of Investment Corporation Bonds
In the 28th Fiscal Period, the Investment Corporation made the following borrowings and issuance of investment
corporation bonds to fund the repayment of borrowings and redemption of investment corporation bonds.
(i) The Investment Corporation took out loans of 2,500 million yen in total from Kansai Mirai Bank, Ltd. and
MUFG Bank, Ltd. on August 30, 2019, to fund the repayment of 2,500 million yen in total borrowed from thesame banks for the same amount that was due for repayment on the same day.
(ii) The Investment Corporation issued the 5th unsecured investment corporation bonds (1,700 million yen) and6th unsecured investment corporation bonds (1,300 million yen) on September 12, 2019, to fund redemption of
the 3rd unsecured investment corporation bonds (3,000 million yen) due on the same day.
(iii) The Investment Corporation took out loans of 2,000 million yen in total from Resona Bank, Ltd. on September
30, 2019, to fund the repayment of 2,000 million yen in total borrowed from the same bank due on the same
day.

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(iv) The Investment Corporation took out loans of 3,500 million yen in total from Sumitomo Mitsui Trust Bank,
Ltd. and Development Bank of Japan Inc. on November 29, 2019, to fund the repayment of 3,500 million yen
in total borrowed from the same banks due on the same day.
b. 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 28th Fiscal Period(November 30, 2019) stood at 204,450 million yen in total (short-term loans payable: 5,000 million yen, long-termloans payable: 194,350 million yen; investment corporation bonds: 5,100 million yen). The balance of the current
portion of long-term loans payable stood at 28,100 million yen.
The average remaining period of interest-bearing liabilities as of the end of the 28th Fiscal Period stands at 3.9
years.
List of Borrowings in the 28th Fiscal Period
Loan amount(Millions of
yen)
1,500
1,000
2,000
1,300
1,200
1,000

Drawdown
date

Repayment
date

Loan
period2019/8/30
2019/8/30
2019/9/30
2019/11/29
2019/11/29
2019/11/29

2026/8/31
2026/8/31
2029/9/28
2024/11/29
2026/11/30
2028/11/30

7.0 years
7.0 years
10.0 years
5.0 years
7.0 years
9.0 years

Details of the 5th and 6th unsecured investment corporation bonds
Total Issue AmountIssue Date
Name
(Millions of yen)Fifth Series of Unsecured Investment Corporation Bonds
1,700 2019/9/12

RedemptionDate2024/9/12

Interest Rate
(%)
0.220

Sixth Series of Unsecured Investment Corporation Bonds

2031/9/12

0.660

LenderKansai Mirai Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.
Development Bank of Japan Inc.

1,300

2019/9/12

Balance of Borrowings from Each Financial Institution (as of November 30, 2019)
End of the 28th Fiscal Period
Lender(Millions of yen)
Sumitomo Mitsui Banking Corporation
41,400Sumitomo Mitsui Trust Bank, Ltd.
24,500Development Bank of Japan Inc.
21,750MUFG Bank, Ltd.
21,500Mizuho Bank, Ltd.
20,400Shinsei Bank, Ltd.
14,000Resona Bank, Ltd.
12,500Mizuho Trust and Banking Co., Ltd.
9,500
The Bank of Fukuoka, Ltd.
6,500
Kansai Mirai Bank, Ltd.
5,000
The Nishi-Nippon City Bank Ltd.
3,000
The Gunma Bank, Ltd.
2,500
Aozora Bank, Ltd.
2,000
The 77 Bank, Ltd.
2,000
The Musashino Bank, Ltd.
2,000
Tokio Marine & Nichido Fire Insurance Co., Ltd.
2,000
The Yamaguchi Bank, Ltd.
2,000
The Norinchukin Bank
2,000
Nippon Life Insurance Company
1,300
The Higashi-Nippon Bank, Ltd.
1,000
The Hyakugo Bank, Ltd.
1,000
The Yamanashi Chuo Bank, Ltd.
1,000
Taiyo Life Insurance Company
300
Fukoku Mutual Life Insurance Company
200
Total
199,350(Note) Share is rounded to two decimal places.

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Share (%)
(Note)
20.77
12.29
10.91
10.79
10.23
7.02
6.27
4.77
3.26
2.51
1.50
1.25
1.00
1.00
1.00
1.00
1.00
1.00
0.65
0.50
0.50
0.50
0.15
0.10
100.00c. Rating Information (as of November 30, 2019)
Credit rating agency
R&I
Japan Credit Rating Agency

Rating
AAAA

Outlook
StableStabled. Shelf Registration
The Investment Corporation filed a shelf registration statement pertaining to investment corporation bonds on
August 7, 2019, as below. The total issuable amount as of the date of this document is 97.0 billion yen.
Investment corporation bonds (excluding short-term investment corporation bonds)
Planned issue amount 100,000 million yen
Planned issue period

Use of funds

From August 15, 2019 to August 14, 2021
Funds for acquisition of specified assets, repayment of borrowings, redemptionof investment corporation bonds (including short-term investment corporation
bonds), refund of leasehold and security deposits, payment of repairs, and 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 28th
Fiscal Period of 14,094 million yen in operating revenue, 7,114 million yen in operating income, 6,463 million yen in
ordinary income and 6,462 million yen in net income.
Concerning distributions, it is planned that the amount equivalent to distributions from earnings would be includedin 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”)). Accordingly, the Investment Corporation decided to distributealmost the entire amount of unappropriated retained earnings (excluding fractions of the distribution amount per unitthat are less than 1 yen), and declared a distribution amount per unit of 13,139 yen.
1.1.2. Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy going forward was expected to continue to expand backed by solid trends in personal
spending against the backdrop of a favorable employment environment and the improved income environment while
the monetary easing policy implemented by Bank of Japan continued. However, it is more likely that the economy
will remain sluggish, falling below the potential growth rate. In addition, factors such as policies set out by the U.S.
President Donald Trump, the downward swing of the Chinese economy, deterioration of the European economy andrise in the price of crude oil may slow down the Japanese economy, and are thus thought to require attention.
In the Tokyo office building leasing market, the vacancy rate has dropped backed by strong corporate performance.
With demand for office floor space projected to continue increasing, rent is expected to continue rising moderately
mainly in central Tokyo. In the office building transaction market, backed by the favorable financing environment,
among other factors, the property acquisition appetite among overseas investors, real estate companies and funds(including J-REITs) is thought to remain strong.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Although some have become cautious towards overall economic trends and the office market, the market in central
Tokyo remains strong centering on the Shibuya and Shinjuku areas and vacancy rates have remained low. Under
such solid office market trends supported by strong office demand, the Investment Corporation intends to improve
its skill in building management by constantly attempting to grasp the latest tenant needs and market conditions,
regularly reviewing management systems and such. Consequently, the Investment Corporation will carry out
operational management under the following 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 cancellation risks by improving the quality of buildings,
equipment and management system. In addition, concerning new tenants, strive to maintain and raiseoccupancy rates through the provision of highly satisfactory services from gaining deeper understanding of
tenant needs through proactive involvement in the market.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium to long term through further strengthening good relationships withexisting tenants, as well as proactively tapping the needs of new tenants by discerning the market environment.
(iii) Control operational management costs
Strive to control operational management costs based on maintaining office environments with high tenantsatisfaction levels by implementing efficient operational management and reviewing systematic construction
work through optimal leveraging of economies of scale achieved from proactively realizing external growth.

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b. Strategy for New Property Investments
The Investment Corporation will invest in office buildings that have a total floor area of about 2,000 m2 or more
based on 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.
Furthermore, in the 28th Fiscal Period, the Investment Corporation acquired “Daiwa Mita 2-Chome Building”
located in Tokyo through an exchange for “Daiwa Osaki 3-chome Building.” The Investment Corporation believes
acquisition of the property 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 to total assets (LTV) within the range of
40% to 50% at maximum, taking into consideration also the LTV, etc. based on appraisal value, 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 balance of 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.
C. Significant Subsequent EventsThe Investment Corporation acquired trust beneficial interest in real estate on December 13, 2019, as follows.
Summary of Asset Acquired
Property nameDaiwa Nakano-Sakaue

Type of asset

Trust beneficial interest in domestic real estate

Location

3-31-11 Honcho, Nakano-ku, Tokyo

Acquisition price

2,750 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 9, 2019

Date of delivery

December 13, 2019

SellerTMK Shine Residence

D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 29th Fiscal Period (fiscal period
ending May 2020 (from December 1, 2019 to May 31, 2020)). For the assumptions underlying the management status
forecasts, please refer to the “Assumptions for the Management Status Forecasts for the 29th Fiscal Period and 30th
Fiscal Period” on page 9.
29th Fiscal Period (fiscal period ending May 2020 (from December 1, 2019 to May 31, 2020))
Operating revenue
14,203 million yen
Operating income
7,241 million yen
Ordinary income
6,593 million yen
Net income
6,591 million yen
Distribution amount per unit
13,400 yen
Distribution amount in excess of earnings per unit
0 yen
In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 29th Fiscal Period and30th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status forthe 30th Fiscal Period (fiscal period ending November 2020 (from June 1, 2020 to November 30, 2020)).

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30th Fiscal Period (fiscal period ending November 2020 (from June 1, 2020 to November 30, 2020))
Operating revenue
14,483 million yen
Operating income
7,369 million yen
Ordinary income
6,741 million yen
Net income
6,739 million yen
Distribution amount per unit
13,700 yen
Distribution amount in excess of earnings per unit
0 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
and distribution 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.

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Assumptions for the Management Status Forecasts for the 29th Fiscal Period and 30th Fiscal Period
Item
Assumptions• 29th Fiscal Period: Assets under management are assumed to be the 59 properties owned as ofNovember 30, 2019, plus the 1 property (Daiwa Nakano-Sakaue) acquired in December 2019,
Assets under
totaling 60 properties.
management• 30th Fiscal Period: Assets under management are assumed to be the properties mentioned above.
• 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• No gain on sale of real estate is assumed to arise.
• 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 sale from real estate properties) after
deducting expenses related to rent business (including depreciation) is expected to be 8,657
million yen in the 29th Fiscal Period and 8,786 million yen in the 30th Fiscal Period.
• Consignment expenses are expected to be 977 million yen in the 29th Fiscal Period and 936
Operatingmillion yen in the 30th Fiscal Period.
expenses• Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 1,126 million yen in
the 29th Fiscal Period and 1,178 million yen in the 30th Fiscal Period.
• While, in general, fixed property tax, city planning tax, etc. in the transaction of real estate, etc. are
calculated on a pro rata basis and reimbursed at the time of acquisition with the current owner, but
for the Investment Corporation, the amount equivalent to the reimbursement is included in the costof acquisition and thus it is not recognized as expenses in the period of acquisition of properties.
As such, fixed property tax, city planning tax, etc. for properties acquired will be recorded as
expenses starting from the fiscal year following the acquisition year.
• Depreciation is expected to be 1,840 million yen in the 29th Fiscal Period and 1,845 million yen in
the 30th Fiscal Period.
• Non-operating expenses in the 29th Fiscal Period are expected to be 647 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related
Non-operating
expenses are expected to be 642 million yen.
• Non-operating expenses in the 30th Fiscal Period are expected to be 628 million yen, of which theexpensesinterest expenses, interest expenses on investment corporation bonds, and borrowing related
expenses are expected to be 621 million yen.
• The total amount of interest-bearing liabilities is assumed to be 204,450 million yen at the end of
the 29th Fiscal Period and 204,450 million yen at the end of the 30th Fiscal Period• In the 29th Fiscal Period, it is assumed that the entire amount of borrowings due for repayment on
Interest-bearing
January 31, 2020 (5,000 million yen), February 28, 2020 (5,500 million yen), and May 29, 2020
liabilities(6,000 million yen), is refinanced.
• In the 30th Fiscal Period, it is assumed that the entire amount of borrowings due for repayment on
August 31, 2020 (7,600 million yen), and November 30, 2020 (9,000 million yen), is refinanced.
Total number of• The total number of investment units issued and outstanding is assumed to be 491,877 units as ofinvestment units
November 30, 2019.
issued and• It is assumed that there are no changes to the number of investment units other than stated above
outstanding
until the end of the 30th Fiscal Period through the issuance of new investment units, etc.
• The distribution amount per unit is calculated based on the cash distribution policy as set out in thearticles of incorporation of the Investment Corporation.
Distribution amount• The distribution amount per unit may vary depending on a variety of factors, such as changes in
per unit
the assets under management, changes in the rent revenue due to tenant changes and other causes,
and incurrence of unforeseen repairs.
Distribution amount• At present, there is no plan to make any distribution in excess of earnings (distribution amount inin excess of earnings
excess of earnings per unit).
per unit• 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
Other
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, realestate market conditions, etc.
1.2. Investment Risks
Disclosure is omitted because there are no significant changes from the “Part I: Fund Information; Section 1: Fund
Status; 3. Investment Risks” set out in the most recent periodic securities report (yuka shoken hokokusho) (submitted on
August 22, 2019).

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2.1. Balance Sheets

27th Fiscal Period[As of May 31, 2019]
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, 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
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets*1

26,663,769
3,479,870
173,823333,048
65,52030,716,033

27,799,432
3,581,284
187,778
358,962
63,16531,990,623

3,267,838(2,315,252)
952,585
14,344(6,593)
7,750
19,917(11,031)
8,885
12,302,226
2,846
106,908,695(23,140,985)

3,269,056(2,391,317)
877,739
14,344(7,034)
7,310
19,917(12,119)
7,797
12,302,226
2,846
108,065,984(24,677,081)
83,388,902
762,104(189,819)
572,285876,713(471,131)
405,582
276,211(160,826)
115,385352,270,629
55,178450,005,885

83,767,710
767,841(180,115)
587,725
858,858(439,084)
419,773
266,040(145,403)
120,637
352,187,043
828,644451,185,830
270
2,398,275
306,884
19,8592,725,289- 10 -(Unit: Thousands of yen)
28th Fiscal Period[As of Nov. 30, 2019]*1, *2*2*2

215
2,398,275
306,884
16,4052,721,781

(Unit: Thousands of yen)
28th Fiscal Period[As of Nov. 30, 2019]27th Fiscal Period[As of May 31, 2019]
Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Derivatives
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 investment corporation bonds
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
Deferred tax liabilities
Derivatives liabilities
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Unitholders' capital, net
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
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

113,684
791,008
63,978
7,486
21,075997,232
454,908,352

113,684
1,123,455−
19,097
21,055
1,277,292
454,004,959

11,75811,758
485,636,144

34,852
34,852
486,030,435

981,467
5,000,000
3,000,000
19,500,000
567,015803
364,984
2,323,112
895,324
32,632,707

701,775
5,000,000−
28,100,000
580,867886
321,9632,355,146
479,916
37,540,555

2,100,000
174,850,000
19,145,369
1,844,488
409,112194,297
198,543,268
231,175,975

5,100,000
166,250,000
19,978,837
1,882,398
3,484
193,083
189,641
193,597,445
231,138,001

251,551,759(3,675,523)
247,876,236

251,551,759(3,675,523)
247,876,236

567,422567,422
6,320,338
6,887,760
254,763,996

710,209710,2096,462,843
7,173,052
255,049,288(303,827)(303,827)(156,854)(156,854)-*3- 11 -

254,460,169
485,636,144*3

254,892,434
486,030,435

2.2. Statements of Income(Unit: Thousands of yen)
28th Fiscal Period[From: June 1, 2019
To: Nov. 30, 2019]27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]
Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sales of real estate properties
Gain on exchange 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
Insurance income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Other
Total non-operating expenses
Ordinary 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)

*1
*1
*2

13,628,608
62,035
142,474

*1
*1

-

*3

13,833,118*1

5,479,166
1,116,953
24,287
74,132
19,671
7,200
132,496
6,853,907
6,979,210

5,584,803
1,145,795
24,24973,63518,742
7,200
126,183
6,980,610
7,114,028

17
538
2,728
1,076
4,360

16
611
6,517
1,810
8,955

503,464
16,892
137,389
5,203
662,948
6,320,622
6,320,622
804

499,974
16,646
137,997
4,706
659,325
6,463,659
6,463,659
888
(4)
884
6,462,774
68
6,462,843

(302)
502
6,320,120
217
6,320,338- 12 -*1

13,916,051
159,798
18,78914,094,639

2.3. Statements of Unitholders’ Equity
27th Fiscal Period (from December 1, 2018 to May 31, 2019)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

SurplusReserve for
reduction entry

Total voluntary
retained earnings

Unappropriatedretained earnings(undisposed
loss)

567,422567,422

5,901,266

6,468,688

Dividends from surplus(5,901,048)(5,901,048)

Net income

6,320,120

6,320,120

Unitholders’capitalBalance at beginning of current
fiscal period

251,551,759

Deduction fromunitholders' capital(3,675,523)

Unitholders'
capital, net

247,876,236

Voluntary retained earnings

Total Surplus

Changes of items during theperiodNet changes of items otherthan shareholders’ equity
Total changes of items during

−

−

−

−

−

419,072

419,072251,551,759(3,675,523)

247,876,236

567,422567,422

6,320,338

6,887,760

the period
Balance at end of current fiscal
periodUnitholders’ equity Valuation and translation adjustments

Total unitholders’ Deferred gains orequitylosses on hedges

Balance at beginning of current
fiscal period

254,344,924(220,645)

Total valuationand translation
adjustments

Total net assets(220,645)

254,124,279

Changes of items during theperiodDividends from surplus(5,901,048)(5,901,048)

Net income

6,320,120

6,320,120

Net changes of items other(83,182)(83,182)(83,182)

419,072(83,182)(83,182)

335,889

254,763,996(303,827)(303,827)

254,460,169

than shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period- 13 -

28th Fiscal Period (from June 1, 2019 to November 30, 2019)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

SurplusReserve for
reduction entry

Total voluntary
retained earnings

Unappropriatedretained earnings(undisposed
loss)

567,422567,422

6,320,338

6,887,760

142,786

142,786(142,786)−

Dividends from surplus(6,177,483)(6,177,483)

Net income

6,462,774

6,462,774

Unitholders’capitalBalance at beginning of current
fiscal period

251,551,759

Deduction fromunitholders' capital(3,675,523)

Unitholders'
capital, net

247,876,236

Voluntary retained earnings

Total Surplus

Changes of items during theperiodProvision of reserve for
reduction entry

Net changes of items otherthan shareholders’ equity
Total changes of items during

−

−

−

142,786

142,786

142,504

285,291

251,551,759(3,675,523)

247,876,236

710,209710,2096,462,843

7,173,052

the period
Balance at end of current fiscal
periodUnitholders’ equity Valuation and translation adjustments

Total unitholders’ Deferred gains orequitylosses on hedges

Balance at beginning of current
fiscal period

254,763,996(303,827)

Total valuationand translation
adjustments

Total net assets(303,827)

254,460,169

Changes of items during theperiodProvision of reserve for−−

Dividends from surplus(6,177,483)(6,177,483)

Net income

6,462,774

6,462,774

reduction entry

Net changes of items other146,973

146,973

146,973285,291

146,973

146,973432,265

255,049,288(156,854)(156,854)

254,892,434

than shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period- 14 -

2.4. Statements of Cash Distributions

Item
I.
II.

Unappropriated retained earnings
Distribution amount[Distribution amount per unit]
III. Voluntary retained earnings
Provision of reserve for reduction entry
IV. Retained earnings carried forward
Method for calculating distribution amount27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]
Amount (yen)6,320,338,406
6,177,483,243(12,559)
142,786,780
68,383Pursuant 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 total numberof units issued and outstanding(491,877 units) in an amount that is
not in excess of the amount remained
after deducting (i) provision ofreserve for reduction entry defined in
Article 65-7 of the Act on Special
Measures Concerning Taxation and(ii) reserve for reduction entry, whichis the correction amount (due to thechange in effective statutory tax rate)
for deferred tax liabilities, fromunappropriated retained earnings.
Accordingly,
theInvestment
Corporation declared a distribution
amount of 6,177,483,243 yen.
Furthermore,theInvestment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

- 15 -

28th Fiscal Period[From: June 1, 2019
To: Nov. 30, 2019]
Amount (yen)6,462,843,324
6,462,771,903(13,139)
71,421
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 total numberof units issued and outstanding(491,877 units) in an amount that is
not in excess of unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 6,462,771,903
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

2.5. Statements of Cash Flows

27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Gain on exchange of real estate properties
Amortization of investment corporation bonds issuance costs
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
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
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- 16 -*1(Unit: Thousands of yen)
28th Fiscal Period[From: June 1, 2019
To: Nov. 30, 2019]

6,320,622
1,816,695
2,938
(17)
520,356
27,517314,284
3,876
95,903
109,696242,692
145,422
93,444
13,486,543
321,158
23,501,134
17(520,264)(991)
22,979,896

6,463,659
1,829,629(18,789)2,921(16)
516,621(13,954)(25,913)(279,143)
14,051(43,021)32,033(332,447)(387,119)
7,758,511
16(514,073)(804)
7,243,648(18,363)(15,925,167)
1,135,935
439,482(1,309,333)(68,856)(15,746,304)(1,218)(674,035)
1,246,821
191,418(566,823)(37)
196,124

14,000,000(9,000,000)
10,500,000(10,000,000)(5,900,516)(400,516)
6,833,074
23,310,565
30,143,640

8,000,000(8,000,000)
2,973,984(3,000,000)(6,176,680)(6,202,695)
1,237,077
30,143,640
31,380,717*1

2.6. Notes to the Going Concern
Not applicable.

1.

2.
3.

2.7. Notes to Significant Accounting Policies
Accumulated depreciation method(1)
for noncurrent assets

Accounting policies fordeferred assets
Accounting standards for recording
revenues and expenses

4.

Hedge accounting approaches

5.

Scope of funds in thestatements of cash flows

Property, plant and equipment (including trust assets)
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as follows:
Buildings
2~64 years
Structures
10~56 years
Machinery and equipment
6~23 years
Tools, furniture and fixtures
5~15 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
Investment corporation bonds issuance costs
Amortized using the straight-line method over the period up to redemption.
Accounting for fixed property tax, etc.
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 cost of acquisition of real estate
properties is 3,316 thousand yen in the 27th Fiscal Period and 53,974 thousand
yen in the 28th Fiscal Period.
(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 swap 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.
(4) Method for assessing the effectiveness of hedging
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.
The funds (cash and cash equivalents) in the statements of cash flows consist of cashon 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.

- 17 -

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, land in trust and construction inprogress 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.

2.8. 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 property, plant and equipment acquired by government subsidies, etc.
27th Fiscal Period[As of May 31, 2019]
Buildings in trust

28th Fiscal Period[As of November 30, 2019]

32,898 thousand yen

Buildings in trust

32,898 thousand yen*2. Advanced depreciation amount for property, plant and equipment acquired through exchange

27th Fiscal Period[As of May 31, 2019]
Buildings in trust
Structures in trust
Land in trust
Total

28th Fiscal Period[As of November 30, 2019]-

182,563 thousand yen
283 thousand yen
887,074 thousand yen
1,069,921 thousand yen*3. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations

27th Fiscal Period[As of May 31, 2019]28th Fiscal Period[As of November 30, 2019]50,000 thousand yen- 18 -

50,000 thousand yen

[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing(Unit: Thousands of yen)
27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]
A.

B.

C.

Property leasing revenue
Rent revenue – real estate
Other lease business revenue

13,628,608
62,03528th Fiscal Period[From: June 1, 2019
To: Nov. 30, 2019]13,916,051
159,798

13,690,644

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

1,062,834
1,099,123
1,041,049
15,289395,024
1,813,035
52,809Total property leasing expenses
Operating income (loss) from property
leasing [A – B]

14,075,850
1,010,578
1,074,122
1,131,152
16,479474,514
1,826,120
51,836

5,479,166

5,584,803

8,211,477

8,491,046*2. Breakdown of gain (loss) on sales of real estate properties (Unit: Thousands of yen)
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]
Daiwa Onarimon Building
Proceeds from sales of real estate
properties
Cost of sales of real estate properties
Other expenses on sales
Gain on sales of real estate properties

13,700,000
13,486,543
70,981
142,474

28th Fiscal Period [From: June 1, 2019 To: November 30, 2019]
Not applicable.

*3. Breakdown of gain on exchange of real estate properties (Unit: Thousands of yen)
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]
Not applicable.
28th Fiscal Period [From: June 1, 2019 To: November 30, 2019]
Daiwa Osaki 3-chome Building
Divestment price of real estate
properties
Cost of divestment of real estate
properties
Other expenses for divestment
Advanced depreciation amount for
noncurrent assets
Gain on exchange of real estate
properties- 19 -

2,685,000
1,581,029
15,2591,069,921
18,789[Notes to Statements of Unitholders’ Equity]
27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]
Total number of investment units authorized and number ofinvestment units issued and outstanding
Total number of investment units authorized
Total number of investment units issued and outstanding

2,000,000 units
491,877 units

28th Fiscal Period[From: June 1, 2019
To: Nov. 30, 2019]

2,000,000 units
491,877 units[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: Thousands of yen)
27th Fiscal Period
28th Fiscal Period[From: Dec. 1, 2018
[From: June 1, 2019
To: May 31, 2019]
To: Nov. 30, 2019]
Cash and deposits
26,663,769
27,799,432
Cash and deposits in trust
3,479,870
3,581,284
Cash and cash equivalents
30,143,640
31,380,717[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 deposits and safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks attributable toliabilities of the Investment Corporation.
(b) Contents and risk of financial instruments 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 etc. with floating interest rates are exposed to interest rate risk and the risk is controlled by using
derivative instruments (interest rate swap transaction) for some long-term borrowings to avoid interest rate rise and to
fix interest expense.
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount of cash flowof 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.
Enforcement and management of derivative transactions are carried out in accordance with the provisions
established by the basic policy of risk management. Tenant leasehold and security deposits and tenant leasehold andsecurity deposits in trust 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 (except forcheckable deposit), 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
these calculations, the resulting value may differ if different assumptions are provided. Furthermore, the contractual
amounts of 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)).

- 20 -

27th Fiscal Period [As of May 31, 2019](1) Cash and deposits(2) Cash and deposits in trust
Total assets(3) Short-term loans payable(4) Current portion of investment corporation bonds(5) Current portion of long-term loans payable(6) Investment corporation bonds(7) Long-term loans payable
Total liabilities
Derivative transactions (*)

Carrying amount
26,663,769
3,479,870
30,143,640
5,000,000
3,000,000
19,500,000
2,100,000
174,850,000
204,450,000(443,290)(Unit: Thousands of yen)
Fair value
Difference
26,663,769−
3,479,870−
30,143,640−
5,000,000−
3,001,500
1,500
19,502,614
2,614
2,166,780
66,780174,967,636
117,636
204,638,530
188,530(443,290)−

28th Fiscal Period [As of November 30, 2019](Unit: Thousands of yen)
Carrying amount
Fair value
Difference(1) Cash and deposits
27,799,432
27,799,432−(2) Cash and deposits in trust
3,581,284
3,581,284−
Total assets
31,380,717
31,380,717−(3) Short-term loans payable
5,000,000
5,000,000−(5) Current portion of long-term loans payable
28,100,000
28,107,557
7,557(6) Investment corporation bonds
5,100,000
5,115,100
15,100(7) Long-term loans payable
166,250,000
166,408,056
158,056
Total liabilities
204,450,000
204,630,714
180,714
Derivative transactions (*)(228,850)(228,850)−(*) The value of receivables and payables arising from derivatives are indicated at net basis. The amount in parentheses
represents the net liability position.
(Note 1) Methods to estimate fair value of financial instruments and matters concerning derivative transactions.
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
is stated at that book value.
Liabilities(3) Short-term loans payable; (5) Current portion of long-term loans payable; (7) 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 sameas the book value and thus is stated at that book value. Those with fixed interest rates, on the other hand, are based on
the method of calculating by discounting the sum total amount of principal and interest (*) by the reasonably
estimated interest rate in the case that the same type of borrowings is 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.)(4) Current portion of investment corporation bonds; (6) Investment corporation bonds
The fair value of the investment corporation bonds issued by the Investment Corporation is based on the market price.

- 21 -

Derivative transactions
Please refer to [Notes to Derivative Transactions] below.
(Note 2) Carrying amount of financial products for which it is extremely difficult to estimate fair value(Unit: Thousands of yen)
28h Fiscal Period
27th Fiscal Period[As of May 31, 2019][As of November 30, 2019]
Tenant leasehold and security deposits*
19,145,369
19,978,837
Tenant leasehold and security deposits in trust*
1,844,488
1,882,398
Total
20,989,857
21,861,236(*) Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees ofrental properties are not subject to disclosure of fair value because discerning of the fair value is recognized to be
extremely difficult as future cash flows cannot be reasonably estimated due to there being no market price and difficultyin calculation of the actual deposit period, which is the period from tenants’ move-ins to move-outs.
(Note 3) Redemption schedule for monetary claims due after the settlement of accounts.
27th Fiscal Period [As of May 31, 2019](Unit: Thousands of 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

26,663,769

−

−

−

−

−

Cash and deposits in trust

3,479,870

−

−

−

−

−

30,143,640

−

−

−

−

−

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

27,799,432

–

–

–

–

–

Cash and deposits in trust

3,581,284

–

–

–

–

–

Total

31,380,717

–

–

–

–

–

Total

Over 5 years

28th Fiscal Period [As of November 30, 2019](Unit: Thousands of yen)Over 5 years(Note 4) Amount of repayment of short-term loans payable, current portion of long-term loans payable, long-term loans
payable, current portion of investment corporation bonds and investment corporation bonds scheduled to be due
after the settlement of accounts.
27th Fiscal Period [As of May 31, 2019](Unit: Thousands of 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

5,000,000

−

−

−

−

−

3,000,000

−

−

−

−

−

19,500,000

−

−

−

−

−

Investment corporation bonds

−

−

−

−

−

2,100,000

Long-term loans payable−

33,300,000

21,500,000

30,600,000

23,700,000

65,750,000

27,500,000

33,300,000

21,500,000

30,600,000

23,700,000

67,850,000

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

Short-term loans payable

5,000,000

−

−

−

−

−

Current portion of
long-term loans payable

28,100,000

−

−

−

−

−

Short-term loans payable
Current portion of investment
corporation bonds
Current portion of
long-term loans payable

Total

Over 5 years

28th Fiscal Period [As of November 30, 2019](Unit: Thousands of yen)Over 5 years

Investment corporation bonds

−

−

−

−

3,800,000

1,300,000

Long-term loans payable−

24,200,000

31,600,000

26,200,000

24,300,000

59,950,000

33,100,000

24,200,000

31,600,000

26,200,000

28,100,000

61,250,000

Total- 22 -

[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
27th Fiscal Period [As of May 31, 2019]
Not applicable.
28th Fiscal Period [As of November 30, 2019]
Not applicable.
(2) Transactions for which hedge accounting is applied
27th Fiscal Period [As of May 31, 2019]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: Thousands of 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
135,600,000
118,100,000(443,290)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans−
3,000,000
3,000,000(*)
Fixed payablefor interest
payablerate swaps
Floating receivable
Total−
138,600,000
121,100,000(443,290)
28th Fiscal Period [As of November 30, 2019]
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: Thousands of 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(228,850)
129,600,000
104,500,000
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
(*)
−
3,000,000
1,000,000
for interest
Fixed payablepayablerate swaps
Floating receivable
Total−(228,850)
132,600,000
105,500,000(*) 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 in thatof related long-term loans payable. (Please refer to “Notes to Financial Instruments (2) Matters Concerning Fair Value, etc.
of Financial Instruments (Note 1) Liabilities (5) (7)”).
[Notes to Transactions with Related Parties](1) Parent company and major corporate unitholders, etc.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]
Not applicable.
28th Fiscal Period [From: June 1, 2019 To: November 30, 2019]
Not applicable.
(2) Affiliated companies, etc.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]
Not applicable.
28th Fiscal Period [From: June 1, 2019 To: November 30, 2019]
Not applicable.

- 23 -

(3) Sister companies, etc.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]
Rate of voting
Balance at
Capital stockrights, etc. held Relation
Transaction
end ofName oforBusinessby related
Nature ofwithamountCategory company, Location
Account period
investments description party (held in Related transaction (Thousands(Thousandsetc.
in capital
the Investment Partiesof yen)of yen)Corporation)
Subsidiaryof otheraffiliatedcompany

Daiwa
Chuo-ku, 100 million Real estate
PropertyTokyobusinessyenCo., Ltd.

−

Divestment
Divestmentof trustof trust
beneficial
beneficial
13,700,000
interest ininterest inreal estate
real estate(Note 1, 2)−−

Of amounts indicated above, transaction amount does not include consumption tax, etc.
(Note 1) Transaction terms and conditions were determined based on the market.
(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.
28th Fiscal Period [From: June 1, 2019 To: November 30, 2019]
Not applicable.
(4) Officers and major individual unitholders, etc.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]
Not applicable.
28th Fiscal Period [From: June 1, 2019 To: November 30, 2019]
Not applicable.
[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: Thousands of yen)
27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]28th Fiscal Period[From: June 1, 2019
To: Nov. 30, 2019]

Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period

453,459,299

453,059,500(399,799)(406,479)

453,059,500

452,653,020

548,130,000

562,730,000(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 27th Fiscal Period, the amount of increase ismainly attributable to acquisition of two properties (Sasazuka South Building and Glass City Harumi) (14,200
million yen) and the amount of decrease is mainly attributable to divestment of Daiwa Onarimon Building (13,486
million yen) and depreciation (1,813 million yen). For the 28th Fiscal Period, the amount of increase is mainly
attributable to acquisition of Daiwa Mita 2-Chome Building (1,565 million yen) and the amount of decrease ismainly attributable to divestment of Daiwa Osaki 3-chome Building (1,581 million yen) and depreciation (1,826
million yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by external real estate appraisers.
The income (loss) for investment and rental properties are as presented in the aforementioned “Notes to Statements of Income.”- 24 -

[Notes to 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
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]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 figure to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
28th Fiscal Period [From: June 1, 2019 To: November 30, 2019]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 figure to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
[Notes to Per Unit Information]
27th Fiscal Period
28th Fiscal Period[From: Dec. 1, 2018
[From: June 1, 2019
To: May 31, 2019]
To: Nov. 30, 2019]
Net assets per unit
517,324 yen
518,203 yen
Net income per unit
12,848 yen
13,139 yen(Note 1) Net income per unit is calculated by dividing net income by the average number of investment units during theperiod. 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.
27th Fiscal Period
28th Fiscal Period[From: Dec. 1, 2018
[From: June 1, 2019
To: May 31, 2019]
To: Nov. 30, 2019]
Net income (Thousands of yen)
6,320,120
6,462,774
Amounts not attributable to common unitholders (Thousands of yen)−−
Net income attributable to common investment units
6,320,120
6,462,774(Thousands of yen)
Average number of investment units during the period (unit)
491,877
491,877- 25 -

[Notes to Significant Subsequent Events]
The Investment Corporation acquired trust beneficial interest in real estate on December 13, 2019, as follows.
Summary of Asset Acquired
Property nameDaiwa Nakano-Sakaue

Type of asset

Trust beneficial interest in domestic real estate

Location

3-31-11 Honcho, Nakano-ku, Tokyo

Acquisition price

2,750 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 9, 2019

Date of delivery

December 13, 2019

SellerTMK Shine Residence

2.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
Since no capital increase, etc. were conducted in the 28th Fiscal Period, there is no change to unitholders’ capital, etc.
The overview of capital increase in the most recent 5 years up to the end of the 28th Fiscal Period is as follows.
Number of investment units
Unitholders’ capitalissued and outstanding(Millions of yen)(units)
Notes
Payment date
Description
Increase
Increase
Balance
Balance(Decrease)(Decrease)
Capital increase through public
June 1, 2015
(Note 1)
41,045
482,045
23,145242,301
offering
Capital increase by way ofJune 24, 2015
(Note 2)
1,955
484,000
1,102
243,403
third-party allotment
Capital increase through public
August 2, 2016
(Note 3)
12,700496,700
7,461
250,864
offering
Capital increase by way ofAugust 31, 2016
(Note 4)
1,169
497,869686
251,551
third-party allotment
May 31, 2018 Cancellation(Note 5)
(5,992)491,877(3,675)
247,876(Note 1) The Investment Corporation issued new investment units through public offering at an issue price of 583,050 yen perunit (paid-in price: 563,914 yen) to procure funds for acquisition of properties, repayment of borrowings, etc.
(Note 2) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 563,914
yen per unit (paid-in price: 563,914 yen) to procure funds for acquisition of properties, repayment of borrowings, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of 607,425 yen perunit (paid-in price: 587,489 yen) to procure funds for repayment of borrowings, etc.
(Note 4) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 587,489
yen per unit (paid-in price: 587,489 yen) to procure funds for repayment of borrowings, etc.
(Note 5) In the period from March 1, 2018, to May 18, 2018, the Investment Corporation acquired own investment units throughmarket purchase at the Tokyo Stock Exchange based on a discretionary transaction agreement with a securities
company. The Investment Corporation cancelled all of the acquired own investment units (5,992 units) on May 31,
2018, based on the resolution at its Board of Directors meeting held on May 28, 2018.

- 26 -

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

3. Reference Information
3.1. Investment Status

Type of asset

Real estate

Trust beneficial
interest in real estate

Use

OfficeOffice28th Fiscal Period(As of November 30, 2019)
Total amount owned
As a percentage of(Millions of yen)
total assets (%)(Note 1)

RegionFive Central Wards of Tokyo(Note 2)Five Central Wards of Tokyo(Note 2)

15,593

3.2

349,71972.0

Greater Tokyo (Note 3)

78,163

16.1

Major Regional Cities(Note 4)

9,176

1.9

452,653

93.1

33,3776.9

486,030100.0[452,653][93.1]

Total
Deposits and other assets
Total amount of assets (Note 5)(Note 1) “Total amount owned” is the carrying amount (the book value after depreciation in the case of real estate and trust
beneficial interest in real estate).
(Note 2) “Five Central Wards of Tokyo” are Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards.
(Note 3) “Greater Tokyo” is Tokyo, Kanagawa, Chiba and Saitama Prefectures (excluding the Five Central Wards of Tokyo).
(Note 4) “Major Regional Cities” are the Osaka metropolitan area (Osaka, Kyoto and Hyogo Prefectures), Nagoya metropolitan
area (Aichi, Mie and Gifu Prefectures), and ordinance-designated cities and core cities set forth in the Local Autonomy
Act.
(Note 5) 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 constructionin progress in trust) is not included in the amount of real estate and trust beneficial interest in real estate.

- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
3.2. Investment Real Estate Properties (As of November 30, 2019)
3.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
priceType ofRegionProperty name(Millions ofspecified asset
yen)(Note 1)
Daiwa Ginza
14,100Real estate
Daiwa Ginza Annex
3,050
Daiwa Shibaura
8,265
Daiwa Minami-Aoyama
4,550
Daiwa Sarugakucho
3,190
Daiwa A Hamamatsucho (Note 5)
2,865
Daiwa Jingumae
2,800
Daiwa Shibadaimon
2,578
Daiwa Misakicho
2,346
Daiwa Shimbashi 510
2,080
Daiwa Tsukijiekimae
1,560
Daiwa Tsukiji
1,240
Daiwa Tsukishima
7,840
Daiwa Nihonbashi Horidomecho
2,520
Daiwa Azabudai
1,600
Daiwa Kyobashi
3,460
Daiwa Kojimachi 4-chome
2,910
Shinjuku Maynds Tower (Note 5)
66,900Daiwa SHIBUYA EDGE
5,900
Daiwa Kodenmacho
2,460
Daiwa Jimbocho
4,150
Daiwa Nishi-Shimbashi
5,000
Daiwa Kayabacho Building
5,600
Daiwa Jimbocho 3-chome
3,550
Five
24,000Central E SPACE TOWER
Trust
Wards of Daiwa Nihonbashi Hongokucho
1,721
beneficial
Tokyo
interest in real
shinyon curumu
9,650
estateDaiwa Akasaka
9,200
Daiwa Shibuya Miyamasuzaka
7,000
Daiwa Azabu Terrace
14,000Daiwa Ebisu 4-chome
4,135
LAQUAS Higashi Shinjuku
8,450
Daiwa Aoyama
9,800
Shinsen Place
4,800
Daiwa Shibuya Square
16,000Daiwa River Gate
28,000Daiwa Hatchobori ekimae
2,871
Daiwa Hatchobori ekimae West
1,647
Daiwa Nishi-Shinjuku
13,710Kirin Nihonbashi Building
8,180
Daiwa Higashi-nihonbashi
6,370
Daiwa Daikanyama
2,280
Daiwa Shinjuku West942
Daiwa Kanda Mikura-cho Building
1,592
Daiwa Kanda East
4,200
Daiwa Kandasudacho
2,295
Daiwa Sasazuka Tower
15,500Daiwa Sasazuka
3,000
Daiwa Harumi
11,200Daiwa Mita 2-Chome
2,635
Total for Five Central Wards of Tokyo373,692(50 Properties)- 28 -

Carrying
amount(Millions ofyen)(Note 2)
12,852
2,740
7,957
4,403
3,147
2,732
2,686
2,367
2,117
2,118
1,259
1,120
6,719
2,421
1,495
3,169
2,863
63,984
5,612
2,345
3,943
4,643
5,180
3,314
23,471
1,554
9,592
10,183
7,339
13,930
4,215
8,409
9,977
4,852
15,88927,762
2,914
1,713
13,972
8,371
6,267
2,375
977
1,588
4,267
2,371
16,032
3,188
11,295
1,599
365,313

Estimated price at Investment
end of period
ratio(Millions of yen)(%)
(Note 3)(Note 4)
17,600
4,060
8,350
4,840
4,230
3,920
3,100
3,560
2,940
2,530
2,170
1,660
10,800
2,840
1,940
3,450
2,910
63,900
5,410
2,310
3,990
7,240
8,210
5,250
36,6002,610
16,50015,50011,80017,8006,290
11,20012,6006,780
21,70033,2003,470
1,930
16,600
8,350
7,030
3,590
1,210
1,800
5,620
2,810
16,3003,470
12,300
3,280

3.1
0.7
1.8
1.0
0.7
0.6
0.6
0.6
0.5
0.5
0.3
0.3
1.7
0.5
0.3
0.8
0.6
14.5
1.3
0.5
0.9
1.1
1.2
0.8
5.2
0.4
2.1
2.0
1.5
3.0
0.9
1.8
2.1
1.0
3.5
6.1
0.6
0.4
3.0
1.8
1.4
0.5
0.2
0.3
0.9
0.5
3.4
0.7
2.4
0.6

457,550

81.1

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
Acquisition
Carrying
Estimated price at Investment
priceamountType ofend of period
ratio
RegionProperty name(Millions of (Millions of(Millions of yen)(%)
specified asset
yen)
yen)
(Note 3)(Note 4)(Note 1)
(Note 2)
Daiwa Higashi-Ikebukuro
2,958
2,609
4,300
0.6
Daiwa Shinagawa North
7,710
7,087
6,350
1.7
Daiwa Kamiooka
2,000
1,857
2,900
0.4
Trust
15,220
16,54622,700
3.3
Greater Daiwa Ogikubo Tower
beneficial
Tokyo
interest in real
Daiwa Meguro Square
5,600
5,471
7,090
1.2
estateDaiwa Ogikubo
3,800
3,979
4,730
0.8
CONCURRED Yokohama (Note 5)
38,10038,032
41,100
8.3
Daiwa Shinagawa Gotenyama
2,500
2,579
2,710
0.5
Total for Greater Tokyo (8 properties)
77,88878,16391,880
16.9
Trust
Major
beneficial
Regional Daiwa Kitahama
9,481
9,176
13,300
2.1
interest in real
CitiesestateTotal for Major Regional Cities (1 property)
9,481
9,176
13,3002.1
Total (59 properties)
461,061
452,653
562,730100.0(Note 1) “Acquisition price” is excluding acquisition costs, fixed property tax, city planning tax, consumption tax and local
consumption tax.
(Note 2) “Carrying amount” is the book value after depreciation as of November 30, 2019.
(Note 3) “Estimated price at end of period” is the price as of November 30, 2019, stated in appraisal reports prepared by realestate appraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation& Advisory K.K. 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 4) “Investment ratio” is the acquisition price of each property expressed as a percentage of the total amount ofacquisition prices, rounded to one decimal place.
(Note 5) For Daiwa A Hamamatsucho Building, Shinjuku Maynds Tower and CONCURRED Yokohama, the figures arethose pertaining to the Investment Corporation’s ownership interest.

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
3.2.2. 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 Tsukishima
Daiwa Nihonbashi
Horidomecho
Daiwa Azabudai
Five Central Daiwa Kyobashi
Wards ofTokyo
Daiwa Kojimachi 4-chome
Shinjuku Maynds Tower(Note 9)Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho Building(Note 8)Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi
Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya
Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome(Note 8)LAQUAS Higashi Shinjuku

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
S
5F
SRC
B2 / 7F
SRC
B2 / 9F
SRC
B1 / 8F
SRC
B2 / 9FS / SRC
B3 / 34F
RC
B1 / 9F
SRC
8FS
B1 / 8F
SRC
B1 / 10F
S / SRC
B1 / 8F
S
9F
S / SRC
B1 / 15F
S
8F
S / RC
B2 / 11F
SRC
B2 / 7FS
B1 / 12F
S / RC
B1 / 6F
SRC
B1 / 9F
S
10F

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

Rent revenue
during current
period(Thousands ofyen)(Note 7)

July 1963

8,114.93

8,067.4925

99.4

431,930

Aug. 1972

2,032.11

2,032.11

7

100.0

101,678

Oct. 1987

9,619.67

9,578.76

55

99.5

267,483

Sept. 1990

2,715.54

2,715.545

100.0

131,717

June 1985

3,657.43

3,657.432

100.0(Not disclosed)

July 1993

3,663.38

3,663.38

12

100.0

136,734

Dec. 1997

2,198.61

2,198.61

5

100.0

88,027

Nov. 1996

2,386.48

2,386.48

7

100.0

87,788July 1996

2,137.53

2,137.531

100.0(Not disclosed)

Apr. 1974

2,595.76

2,595.76

7

100.0

77,996

Jan. 1996

2,659.59

2,659.59

6

100.0

67,644Jan. 1990

1,487.44

1,487.44

6

100.0

49,370July 1996

8,425.69

8,425.69

4

100.0

279,610

Apr. 1993

2,850.81

2,850.818

100.0

86,180

Apr. 1984

1,697.88

1,697.88

11

100.0

55,885Oct. 1974

3,265.83

3,265.83

10

100.0

105,254

Oct. 1987

2,695.31

2,695.31

7

100.0

89,728

Sept. 1995

22,759.66

21,652.65

38

95.1

1,349,146

Aug. 2006

2,480.65

2,480.655

100.0

130,706

Mar. 1985

2,379.31

2,379.31

8

100.0

67,292Mar. 1997

3,164.26

3,164.26

6

100.0

115,503

July 1993

4,815.84

4,815.84

11

100.0

185,015

Apr. 2010

5,899.11

5,899.111

100.0(Not disclosed)

Feb. 2010

2,889.34

2,889.348

100.0

115,281Oct. 2002

13,960.87

13,543.72

12

97.0

797,483

May 2010

2,143.08

2,013.97

5

93.9

67,838Jan. 2012

6,751.31

6,751.31

16

100.0

390,235

Sept. 1990

8,747.39

8,747.39

17

100.0

375,298

Dec. 1988

6,328.94

6,328.94

9

100.0

310,381

Sept. 2009

13,234.39

13,234.39

12

100.0

485,286

Dec. 1997

2,951.70

2,951.701

100.0(Not disclosed)

Aug. 2010

7,498.33

7,498.33

4

100.0

233,365- 30 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period

RegionProperty name

Structureandnumber offloors(Note 1)

S / RC
B1 / 7F
RC
Shinsen Place (Note 8)
B1 / 9FS / SRC
Daiwa Shibuya Square
B1 / 11F
S / SRC /Daiwa River GateRC
B2 / 20FS / SRC
Daiwa Hatchobori ekimae
B1 / 10F
Daiwa Hatchobori ekimae
SRC
West
B1 / 9F
SRC / RC /Daiwa Nishi-Shinjuku
S
B2 / 11F
Kirin Nihonbashi Building
S / SRC(Note 8)
7F
S
Five Central Daiwa Higashi-nihonbashi
7F
Wards of Building
Tokyo
S
Daiwa Daikanyama (Note 8)
6F
RC
Daiwa Shinjuku West
4F
Daiwa Kanda Mikura-cho
SRC / S
Building
B1 / 7F
S
Daiwa Kanda East
9F
S / RC
Daiwa Kandasudacho
B1 / 10F
SRC / RC /Daiwa Sasazuka Tower
S
B2 / 18F
SRC / S
Daiwa Sasazuka
B1 / 8F
S
Daiwa Harumi
B1 / 12F
S
Daiwa Mita 2-Chome (Note 8)
8F
Total for Five Central Wards of Tokyo (50 properties)
SRC / S
Daiwa Higashi-Ikebukuro
B1 / 9F
SRC
Daiwa Shinagawa North
B1 / 11F
Daiwa Osaki 3-chome
S / RC(Note 10)
B1 / 6F
S / SRC
Daiwa Kamiooka
B3 / 7F
Greater
Daiwa Ogikubo Tower
S / SRC(Note 11)
B2 / 18FTokyo
S / SRC
Daiwa Meguro Square
B2 / 14F
SRC
Daiwa Ogikubo
B1 / 7F
CONCURRED Yokohama
S / SRC(Note 12)
B1 / 20F
SRC / S
Daiwa Shinagawa Gotenyama
8F
Total for Greater Tokyo (9 properties)
Major
S / SRC
Regional Daiwa Kitahama
B1 / 16F
CitiesTotal for Major Regional Cities (1 property)
Total (60 properties)
Daiwa Aoyama

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

Rent revenue
during current
period(Thousands ofyen)(Note 7)

Nov. 2001

4,426.10

4,426.107

100.0

252,862

Sept. 2001

2,811.35

2,811.351

100.0(Not disclosed)

Feb. 2004

8,566.73

8,566.73

12

100.0

443,044

Feb. 1994

32,055.85

31,734.83

91

98.9

1,076,615

Feb. 2006

2,622.42

2,622.429

100.0

85,172Feb. 1996

1,734.68

1,734.68

8

100.0

47,749Aug. 1991

6,967.61

6,309.486

90.5

331,501

Feb. 1999

5,630.17

5,630.171

100.0(Not disclosed)

Mar. 2008

5,015.88

5,015.88

5

100.0

175,163

Mar. 2001

1,642.83

1,642.83

1

100.0(Not disclosed)

Mar. 1989

1,120.58

1,120.58

8

100.0

38,527Jan. 1991

1,719.51

1,719.51

7

100.0

50,739Feb. 2005

3,980.56

3,980.56

5

100.0

141,050

Aug. 1990

2,211.64

2,211.649

100.0

64,921Feb. 1993

16,160.25

16,160.25

5

100.0

469,078

Dec. 1991

3,828.95

3,550.23

8

92.7

84,889Jan. 2008

11,227.10

11,227.10

7

100.0

153,955

Mar. 2017

2,101.61

2,101.611

100.0(Not disclosed)

282,031.99

279,032.50

522

98.9

11,099,458

June 1993

4,462.28

4,462.28

9

100.0

110,618

July 1991

6,548.17

6,548.17

11

100.0

202,310

Sept. 2007

-

-

-

-

11,197

May 2011

2,630.30

2,630.30

9100.0

93,474

June 1993

17,778.14

17,778.14

9

100.0

664,086

July 2009

3,519.50

3,519.50

16

100.0

166,976

Nov. 1990

3,849.63

3,849.63

12

100.0

128,654

Feb. 2008

28,052.98

28,052.98

36

100.0

1,032,006

July 1992

2,396.96

2,396.96

6

100.0

67,453

69,237.96

69,237.96

108

100.0

2,476,778

13,517.62

13,517.62

7

100.0

339,815

13,517.62
364,787.57

13,517.62
361,788.08

7
637

100.0
99.1

339,815
13,916,051

Feb. 2008(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 to steel-framed reinforced concrete structure, “B” refers to floors below ground and “F” refers tofloors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment realestate property.

- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period(Note 3) “Leasable floor area” represents the floor area of the building of the applicable property that is leasable, notincluding the leasable area of the land (including level parking space), and is the floor area indicated in the lease
contract, etc. as of November 30, 2019.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease agreements, etc. executedwith end-tenants as of November 30, 2019.
(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 (excluding other lease business revenue)
during the 28th Fiscal Period, rounded down to the nearest thousand yen.
(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 co-ownershipinterest corresponding to three-sevenths of the entire property. Accordingly, leasable floor area and leased floor area
are the floor areas corresponding to three-sevenths of the entire building.
(Note 10) The property was divested on July 1, 2019. This is reflected in the totals for the number of properties and the rent
revenue during current period.
(Note 11) The buildings consist of three registrations. Of these, the details of the major building are shown here.
(Note 12) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the quasi
co-ownership interest corresponding to 75% of the entire property. Accordingly, leasable floor area and leased floorarea are the floor areas corresponding to 75% of the entire building.
3.2.3. Capital Expenditures for Assets under Management
A. Scheduled Capital Expenditures for the 28th 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)
Daiwa Higashi-nihonbashi
Building(Chuo-ku, Tokyo)
Shinsen Place(Shibuya-ku, Tokyo)
Daiwa Shibaura(Minato-ku, Tokyo)
CONCURRED Yokohama(Yokohama-shi,
Kanagawa)
Daiwa River Gate
(Chuo-ku, Tokyo)

Scheduled
implementation
periodPurposeUpgrading of air-conditioning
facilities

From:
To

June 2019
May 2020

Upgrading of air-conditioning
facilities

From:
To
From:
To

Sep. 2019
Apr. 2020
Nov. 2019
May 2020

Repair of fire-resistant coating on
facility balconies

From:
To

Repair of waterproof treatment forthe penthouse floor

From:
To

Renovation of exterior walls

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

Total amount
102

-

-

86

-

-

67

-

-

Aug. 2019
Apr. 2020

49

-

-

Dec. 2019
May 2020

37--

B. Capital Expenditures during the 28th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the28th Fiscal Period. Capital expenditures for the 28th Fiscal Period amounted to 1,351 million yen and, when combinedwith the 474 million yen in repair expenses charged to the 28th Fiscal Period expenses, totals 1,826 million yen in
construction work were implemented.
Name of real estate properties(Location)
Daiwa Ogikubo Tower(Suginami-ku, Tokyo)
Daiwa Sasazuka(Shibuya-ku, Tokyo)
Daiwa Kojimachi 4-chome(Chiyoda-ku, Tokyo)
Other

Purpose

PeriodUpgrading of air-conditioning system(West side)
Renovation of exclusive areas on 8th floor
Upgrading of air-conditioning facilities on 3rd to 8th floors

From:
To
From:
To
From:
To

Jul. 2018
Jun. 2019
Jun. 2019Nov. 2019
Apr. 2019
Jul. 2019

Construction amount paid
(Millions of yen)
931
77
53
288
1,351

Total

- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
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: Millions of yen)
24th
25th
26th
27th
28th
Fiscal Period
Fiscal Period
Fiscal Period
Fiscal Period
Fiscal Period
Fiscal period[From: June 1, 2017
To: Nov. 30, 2017]

Balance of reserve at
beginning of current
periodAmount of reserve incurrent period
Reversal of reserve incurrent period
Amount carried forward
to next period[From: Dec. 1, 2017
To: May 31, 2018][From: June 1, 2018
To: Nov. 30, 2018][From: Dec. 1, 2018
To: May 31, 2019][From: June 1, 2019
To: Nov. 30, 2019]

1,900

1,839

1,576

1,629

2,089

1,417

−

476

460

61

1,478

263

423

−

−

1,839

1,576

1,629

2,089

2,150

- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
3.2.4. Summary of Estimated Price at End of Period (As of November 30, 2019)
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 Tsukishima
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Shinjuku Maynds Tower(Note 4)
Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho Building
Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Daiwa Aoyama
Shinsen Place
Daiwa Shibuya Square
Daiwa River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Daiwa Nishi-Shinjuku
Kirin Nihonbashi Building
Daiwa Higashi-nihonbashi
Building
Daiwa Daikanyama(Note 5)
Daiwa Shinjuku West
Daiwa Kanda Mikura-cho
Building

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

Direct capitalization method
Price(Millions of yen)

Cap rate(%)

DCF method
Price(Millions of yen)

Discount Terminalrate
cap rate
(%)
(%)
3.2
3.6
3.2
3.6
3.7
4.1
3.5
3.9
4.1
4.5

17,600
4,060
8,350
4,840
4,230

17,800
4,110
8,310
4,910
4,290

3.4
3.4
3.9
3.7
4.3

17,400
4,010
8,360
4,770
4,160

3,920

4,000

3.6

3,890

3.4

3.8

3,100
3,560
2,940
2,530
2,170
1,660
10,800
2,840
1,940
3,450
2,910

3,150
3,570
2,980
2,580
2,200
1,680
10,900
2,890
1,970
3,500
2,960

3.7
3.5
3.8
4.0
4.0
3.9
4.0
3.9
3.9
4.1
3.6

3,040
3,560
2,920
2,480
2,160
1,650
10,700
2,790
1,900
3,390
2,860

3.5
3.3
3.6
3.8
4.0
3.9
3.7
3.7
3.7
3.9
3.4

3.9
3.7
4.0
4.2
4.2
4.1
4.2
4.1
4.1
4.3
3.8

63,900152,000

3.1

145,000

2.9

3.3

5,410
2,310
3,990
7,240
8,210
5,250
36,6002,610
16,50015,50011,80017,8006,290
11,20012,6006,780
21,70033,2003,470
1,930
16,600
8,350

5,510
2,330
4,040
7,370
8,340
5,350
37,3002,630
16,80015,80011,90018,1006,220
11,50012,9006,890
21,90033,3003,580
1,980
16,900
8,490

3.6
4.1
3.7
3.4
3.3
3.3
3.0
3.9
3.1
3.1
3.3
3.5
3.6
3.3
3.1
3.2
3.3
3.7
3.4
3.5
3.2
3.8

5,310
2,290
3,970
7,190
8,160
5,200
35,8002,600
16,40015,30011,60017,400
6,320
11,00012,4006,730
21,40033,1003,420
1,910
16,400
8,210

3.4
3.9
3.7
3.2
3.1
3.1
2.8
3.7
2.9
2.9
3.1
3.3
3.7
3.1
2.9
3.1
3.1
3.4
3.2
3.3
3.0
3.5

3.8
4.3
3.9
3.6
3.5
3.5
3.2
4.1
3.3
3.3
3.5
3.7
3.8
3.5
3.3
3.4
3.5
3.8
3.6
3.7
3.4
3.9

7,030

7,180

3.8

6,960

3.6

4.0

3,590

3,650

3.2

3,560

3.2

3.4

1,210

1,220

3.8

1,200

3.6

4.0

1,800

1,840

3.8

1,780

3.8

4.0

- 34 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
Summary of Appraisal Report
Property name

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

Direct capitalization method
Price(Millions of yen)

Cap rate(%)

DCF method
Price(Millions of yen)

Discount Terminalrate
cap rate
(%)
(%)
3.2
3.6
3.6
3.8
3.6
4.0
3.8
4.2
3.7
3.9
3.4
3.8
3.8
4.2
3.9
4.3
4.2
4.6
3.4
3.8
3.3
3.7
3.6
4.0

Daiwa Kanda East
5,620
5,730
3.4
5,500
Daiwa Kandasudacho
2,810
2,890
3.6
2,770
Daiwa Sasazuka Tower
16,30016,9003.8
16,000Daiwa Sasazuka
3,470
3,600
4.0
3,420
Daiwa Harumi
12,30012,9003.7
12,000Daiwa Mita 2-Chome
3,280
3,340
3.6
3,220
Daiwa Higashi-Ikebukuro
4,300
4,320
4.0
4,290
Daiwa Shinagawa North
6,350
6,470
4.1
6,220
Daiwa Kamiooka
2,900
2,910
4.4
2,890
Daiwa Ogikubo Tower
22,70022,8003.6
22,600Daiwa Meguro Square
7,090
7,260
3.5
7,020
Daiwa Ogikubo
4,730
4,800
3.8
4,700
CONCURRED Yokohama
41,10042,3004.2
40,6004.0
4.4(Note 6)
Daiwa Shinagawa Gotenyama
2,710
2,760
3.9
2,690
3.7
4.1
Daiwa Kitahama
13,30013,5003.7
13,200
3.5
3.9
Total
562,730
659,300
637,770(Note 1) “Estimated price at end of period” is the price as of November 30, 2019, stated in appraisal reports prepared by realestate appraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation& Advisory K.K. 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 2nd fiscal year (3.9% for the 1st fiscal year).
(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment
Corporation’s ownership 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.
(Note 5) Discount rate for Daiwa Daikanyama is the figure after the 11th fiscal year (3.3% up to the 10th fiscal year).
(Note 6) For CONCURRED Yokohama, Price indicates a price pertaining to the Investment Corporation’s ownershipinterest.

- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
3.2.5. Status of Income (Loss), etc. of Individual Properties
The following table lists the status of income (loss), etc. of each property for the 28th Fiscal Period (from June 1, 2019 toNovember 30, 2019). Income (loss) information is presented in accordance with “2. Financial Statements; 2.7. Notes to
Significant Accounting Policies” outlined earlier.
RegionProperty name

Daiwa
Ginza

Daiwa
Ginza Annex

Daiwa
Shibaura

Daiwa
MinamiAoyama

Daiwa
Sarugakucho(Note 3)Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (Millions of yen)Price
information

Five Central Wards of Tokyo

Investment ratio (%)

14,100

3,050

8,265

4,550

3,190

3.1

0.7

1.8

1.0

0.7

Carrying amount (Millions of yen)

12,852

2,740

7,957

4,403

3,147

Estimated price at end of period(Millions of yen)

17,600

4,060

8,350

4,840

4,230

Total number of tenants (Note 1)

25

7

55

5

2

Leasable floor area (m2)

8,114.93

2,032.11

9,619.67

2,715.54

3,657.43

Leased floor area (m2)

8,067.49

2,032.11

9,578.76

2,715.54

3,657.43

100.0

100.0

Occupancy rate (%)
Leasing
information

End of Nov. 2017

89.3

100.0

99.1

End of May 2018

95.0

100.0

99.1

84.8

100.0

End of Nov. 2018

100.0

100.0

98.3

100.0

100.0

End of May 2019

99.6

100.0

99.1

100.0

100.0

End of Nov. 2019

99.4

100.0

99.5

100.0

100.0

183

183

183

183

183

431,930

101,678

268,901

131,717(Not disclosed)

Number of days of asset management
Total property leasing revenue (A)(Thousands of yen)
Rent revenue – real estate

Income (loss)
information

431,930

101,678

267,483

131,717(Not disclosed)

Other lease business revenue

−

−

1,418

−

(Not disclosed)

Total property leasing expenses (B)(Thousands of yen)

164,920

32,961

98,776

41,291(Not disclosed)

Consignment expenses

21,141

6,024

18,461

5,739(Not disclosed)

Utilities expenses

25,8986,731

17,441

6,792(Not disclosed)

Taxes and dues

31,731

10,47920,85013,017(Not disclosed)

Non-life insurance expenses

419

97

381

150

(Not disclosed)

Repair expenses

2,324

450

10,604

1,067(Not disclosed)

Depreciation (C)68,415

9,178

31,036

14,522(Not disclosed)

Other lease business expenses

14,990−−−(Not disclosed)

267,009

68,717

170,124

90,426(Not disclosed)

335,424

77,895201,161

104,949

96,632

1,010

208

8,272

4,423

3,140

334,414

77,687

192,888

100,525

93,492

38.18

32.42

36.73

31.35

(Not disclosed)

63,41920,813

41,16925,575

14,118400,440

80,790302,630

185,215

96,757

Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)] (Thousands of yen)
Expense rate (%) [(B) ÷ (A)]
Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
A Hamamatsucho

Daiwa
Jingumae

Daiwa
Shibadaimon

Daiwa
Misakicho(Note 3)Daiwa
Shimbashi 510

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (Millions of yen)

2,865

2,800

2,578

2,346

2,080

Investment ratio (%)

0.6

0.6

0.6

0.5

0.5

Carrying amount (Millions of yen)

2,732

2,686

2,367

2,117

2,118

Estimated price at end of period(Millions of yen)

3,920

3,100

3,560

2,940

2,530

Total number of tenants (Note 1)

12

5

7

1

7

Leasable floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,595.76

Leased floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,595.76

End of Nov. 2017

100.0

100.0

100.0

100.0

89.4

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

78.5

100.0

100.0

100.0

End of May 2019

100.0

100.0

100.0

100.0

100.0

End of Nov. 2019

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

136,734

88,02787,788(Not disclosed)

77,996

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A)(Thousands of yen)
Rent revenue – real estate

Income (loss)
information

136,734

88,02787,788(Not disclosed)

77,996

Other lease business revenue

−

−

−

(Not disclosed)−

Total property leasing expenses (B)(Thousands of yen)

70,94224,80637,365(Not disclosed)

30,268

Consignment expenses

9,631

4,415

12,710(Not disclosed)

7,769

Utilities expenses

7,600

4,009

5,659

(Not disclosed)

5,294

Taxes and dues

9,067

6,894

6,654

(Not disclosed)

6,157

176

82

119

(Not disclosed)

122

Non-life insurance expenses
Repair expenses

115

468

1,474

(Not disclosed)

1,712

Depreciation (C)14,951

8,928

10,746(Not disclosed)

9,212

Other lease business expenses

29,4007−(Not disclosed)−

65,792

63,22150,422(Not disclosed)

47,72880,74372,14961,16948,74556,940Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)

Reference
information

−

2,091

1,040

818

269

NCF [(E) – (F)] (Thousands of yen)

80,74370,057

60,12947,92756,671

Expense rate (%) [(B) ÷ (A)]

51.88

28.18

42.56

(Not disclosed)

38.81

17,977

13,78912,967

10,744

12,286

100,430

117,930

150,927

182,856

89,426

Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Tsukijiekimae

Daiwa
Tsukiji

Daiwa
Tsukishima

Daiwa
Nihonbashi
Horidomecho

Daiwa
Azabudai

Acquisition dateJan. 2006

Jan. 2006

Mar. 2006

May 2006

May 2006

Acquisition price (Millions of yen)

1,560

1,240

7,840

2,520

1,600

Investment ratio (%)

0.3

0.3

1.7

0.5

0.3

Carrying amount (Millions of yen)

1,259

1,120

6,719

2,421

1,495

Estimated price at end of period(Millions of yen)

2,170

1,660

10,800

2,840

1,940

Total number of tenants (Note 1)

6

6

4

8

11

Leasable floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

Leased floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

100.0

100.0

End of May 2019

100.0

100.0

100.0

100.0

100.0

End of Nov. 2019

Occupancy rate (%)
Leasing
information

100.0

100.0

100.0

100.0

100.0

Number of days of asset management

183

183

183

183

183

Total property leasing revenue (A)(Thousands of yen)

67,64449,370279,610

86,18055,885

Rent revenue – real estate

Income (loss)
information

67,64449,370279,610

86,18055,885

Other lease business revenue

−

−

−

−

−

Total property leasing expenses (B)(Thousands of yen)

27,82019,637

140,696

32,33332,095

Consignment expenses

3,963

5,051

12,116

5,103

4,218

Utilities expenses

4,237

2,240

12,005

3,985

2,947

Taxes and dues

5,271

4,102

14,992

7,048

5,070

97

62

289

130

73

Non-life insurance expenses
Repair expenses

773

577

45,263667

10,886

Depreciation (C)13,4597,603

56,02915,398

8,900

18

−

−

−

−

39,82429,733

138,91453,84623,78953,28337,337

194,944

69,24432,689Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)

Reference
information

168

414

676

1,234

716

NCF [(E) – (F)] (Thousands of yen)

53,11536,923

194,267

68,01031,973

Expense rate (%) [(B) ÷ (A)]

41.13

39.78

50.32

37.52

57.43

10,511

8,145

29,984

13,848

10,121

120,530

109,848

102,930

234,846

108,280

Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
KyobashiDaiwa
Kojimachi
4-chomeShinjuku Maynds
Tower

Daiwa
SHIBUYAEDGE

Daiwa
Kodenmacho

Acquisition dateJuly 2006

Oct. 2006

July 2007 andNov. 2007

July 2007

Aug. 2007

Acquisition price (Millions of yen)

3,460

2,910

66,900

5,900

2,460

Investment ratio (%)

0.8

0.6

14.5

1.3

0.5

Carrying amount (Millions of yen)

3,169

2,863

63,984

5,612

2,345

Estimated price at end of period(Millions of yen)

3,450

2,910

63,900

5,410

2,310

Total number of tenants (Note 1)

10

7

38

5

8

Leasable floor area (m2)

3,265.83

2,695.31

22,759.66

2,480.65

2,379.31

Leased floor area (m2)

3,265.83

2,695.31

21,652.65

2,480.65

2,379.31

End of Nov. 2017

87.9

100.0

96.6

100.0

100.0

End of May 2018

100.0

100.0

99.8

100.0

100.0

End of Nov. 2018

100.0

100.0

99.9

100.0

100.0

End of May 2019

100.0

100.0

99.3

100.0

100.0

End of Nov. 2019

100.0

100.0

95.1

100.0

100.0

183

183

183

183

183

105,254

89,7281,367,036

130,706

67,292

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A)(Thousands of yen)
Rent revenue – real estate

Income (loss)
information

105,254

89,728

1,349,146

130,706

67,292Other lease business revenue−−

17,889−−Total property leasing expenses (B)(Thousands of yen)

43,00966,061

590,779

40,00925,929Consignment expenses

5,785

5,235

82,402

6,860

5,531

Utilities expenses

8,351

5,765

136,974

7,014

4,847

Taxes and dues

7,540

16,419135,846

7,986

3,841

1,797

104

92

Non-life insurance expenses

128

141

Repair expenses

1,379

23,42730,260

1,164

1,078

Depreciation (C)19,824

15,072200,817

16,880

9,715

−

−

2,681

−

822

62,24523,666776,257

90,69741,362

82,06938,738977,074

107,577

51,077

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)

Reference
information

284

55,77927,334

1,696−

NCF [(E) – (F)] (Thousands of yen)

81,785(17,040)

949,740

105,880

51,077

Expense rate (%) [(B) ÷ (A)]

40.86

73.62

43.22

30.61

38.53

14,97832,593

268,526

15,967

7,682

116,200

169,753

5,834,950

62,46084,051

Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Jimbocho

Daiwa
NishiShimbashi

Daiwa
Kayabacho
Building(Note 3)

Daiwa
Jimbocho
3-chomeE-SPACETOWER

Acquisition dateMar. 2010

Aug. 2010

Mar. 2011

Mar. 2011

July 2011

Acquisition price (Millions of yen)

4,150

5,000

5,600

3,550

24,000Investment ratio (%)

0.9

1.1

1.2

0.8

5.2

Carrying amount (Millions of yen)

3,943

4,643

5,180

3,314

23,471

Estimated price at end of period(Millions of yen)

3,990

7,240

8,210

5,250

36,600Total number of tenants (Note 1)

6

11

1

8

12

Leasable floor area (m2)

3,164.26

4,815.84

5,899.11

2,889.34

13,960.87

Leased floor area (m2)

3,164.26

4,815.84

5,899.11

2,889.34

13,543.72

End of Nov. 2017

100.0

100.0

100.0

100.0

92.8

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

100.0

93.3

End of May 2019

100.0

100.0

100.0

88.1

89.6

End of Nov. 2019

100.0

100.0

100.0

100.0

97.0

183

183

183

183

183

115,503

185,015(Not disclosed)

115,281

797,483

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A)(Thousands of yen)
Rent revenue – real estate

Income (loss)
information

115,503

185,015(Not disclosed)

115,281

797,483

Other lease business revenue−−(Not disclosed)−−

Total property leasing expenses (B)(Thousands of yen)

48,811

79,487(Not disclosed)

47,837

281,805

Consignment expenses

6,867

15,773(Not disclosed)

10,08957,740Utilities expenses

5,734

9,984

(Not disclosed)

7,502

47,900

Taxes and dues

11,74916,266(Not disclosed)

9,940

62,367

Non-life insurance expenses

134

240

(Not disclosed)

124

644

Repair expenses

3,020

1,663

(Not disclosed)

321

37,986

Depreciation (C)21,26635,559(Not disclosed)

19,85875,09540−(Not disclosed)−

72

66,692

105,528(Not disclosed)

67,444515,677

87,958141,087

149,57387,302590,772

−

460

886

−

4,772

NCF [(E) – (F)] (Thousands of yen)

87,958140,627

148,687

87,302586,000

Expense rate (%) [(B) ÷ (A)]

42.26

42.96

(Not disclosed)

41.50

35.34

23,20832,22825,663

19,847

124,697

128,200

187,580

125,988

82,470574,150

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)

Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Nihonbashi
Hongokucho

shinyoncurumuDaiwa
AkasakaDaiwa
ShibuyaMiyamasuzaka

Daiwa
Azabu Terrace

Acquisition date

May 2012

Dec. 2012 andApr. 2013

Aug. 2013

Sept. 2013

July 2014

Acquisition price (Millions of yen)

1,721

9,650

9,200

7,000

14,000Investment ratio (%)

0.4

2.1

2.0

1.5

3.0

Carrying amount (Millions of yen)

1,554

9,592

10,183

7,339

13,930Estimated price at end of period(Millions of yen)

2,610

16,50015,50011,80017,800Total number of tenants (Note 1)

5

16

17

9

12

Leasable floor area (m2)2,143.08

6,751.31

8,747.39

6,328.94

13,234.39

Leased floor area (m2)2,013.97

6,751.31

8,747.39

6,328.94

13,234.39

End of Nov. 2017

100.0

99.5

91.4

100.0

99.6

End of May 2018

100.0

99.5

100.0

100.0

99.6

End of Nov. 2018

100.0

100.0

100.0

100.0

99.6

End of May 2019

100.0

100.0

100.0

100.0

100.0

End of Nov. 2019

Occupancy rate (%)
Leasing
information

Income (loss)
information

93.9

100.0

100.0

100.0

100.0

Number of days of asset management

183

183

183

183

183

Total property leasing revenue (A)(Thousands of yen)

71,437393,931375,298

310,381

485,286

Rent revenue – real estate

67,838390,235

375,298

310,381

485,286

Other lease business revenue

3,598

3,696

−

−

−

Total property leasing expenses (B)(Thousands of yen)

24,586120,220

151,620

91,753

175,245

Consignment expenses

3,699

23,00824,441

23,91132,337

Utilities expenses

2,631

22,47425,973

14,23851,879Taxes and dues

4,555

37,27935,76422,65033,795

76

329

410

293

580

Non-life insurance expenses
Repair expenses

289

530

6,057

3,505

4,719

Depreciation (C)13,33536,59958,971

27,13051,933

−

−

−

24

−

46,850273,710

223,677

218,627

310,041

60,186

310,309282,649

245,758

361,974

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)

Reference
information−

14,588

3,347

6,578

1,223

NCF [(E) – (F)] (Thousands of yen)

60,186

295,721279,302239,179

360,751

Expense rate (%) [(B) ÷ (A)]

34.42

30.52

40.40

29.56

36.11

9,099

74,517

71,46045,251

67,24850,940166,089

327,392

457,625

491,112Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Ebisu 4-chome(Note 3)LAQUAS
Higashi Shinjuku

Daiwa
AoyamaShinsen Place(Note 3)

Daiwa Shibuya
SquareAcquisition date

Dec. 2014

Dec. 2014

Mar. 2015

Mar. 2015

May 2015

Acquisition price (Millions of yen)

4,135

8,450

9,800

4,800

16,000Investment ratio (%)

0.9

1.8

2.1

1.0

3.5

Carrying amount (Millions of yen)

4,215

8,409

9,977

4,852

15,889Estimated price at end of period(Millions of yen)

6,290

11,20012,6006,780

21,700Total number of tenants (Note 1)

1

4

7

1

12

Leasable floor area (m2)2,951.70

7,498.33

4,426.10

2,811.35

8,566.73

Leased floor area (m2)2,951.70

7,498.33

4,426.10

2,811.35

8,566.73

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

91.5

100.0

100.0

End of May 2019

100.0

100.0

100.0

100.0

100.0

End of Nov. 2019

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

(Not disclosed)

233,397

252,862(Not disclosed)

443,044

Rent revenue – real estate(Not disclosed)

233,365

252,862(Not disclosed)

443,044

Other lease business revenue(Not disclosed)

32−(Not disclosed)−

Total property leasing expenses (B)(Thousands of yen)

(Not disclosed)

81,51355,387(Not disclosed)

104,673

Consignment expenses(Not disclosed)

10,044

13,934(Not disclosed)

17,075

Utilities expenses(Not disclosed)

14,623

8,370(Not disclosed)

23,206

Taxes and dues

(Not disclosed)

21,206

14,321(Not disclosed)

29,106

Non-life insurance expenses(Not disclosed)

296

150

(Not disclosed)

358

Repair expenses(Not disclosed)

1,848

882

(Not disclosed)

1,643

Depreciation (C)(Not disclosed)

33,335

17,728(Not disclosed)

33,282Other lease business expenses(Not disclosed)

158−(Not disclosed)−(Not disclosed)

151,884

197,475(Not disclosed)

338,371

140,969

185,219

215,204

124,188371,654

2,824

1,799

−

200

3,103

138,145

183,420

215,204

123,988368,550(Not disclosed)

34.92

21.90

(Not disclosed)

23.63

19,942

42,084

28,63917,262

57,711

98,692

162,700

175,290

178,610234,380

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)] (Thousands of yen)
Expense rate (%) [(B) ÷ (A)]
Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
River Gate

Daiwa
Hatchobori
ekimaeAcquisition dateJune 2015

Sept. 2015

Daiwa
Hatchobori
ekimae West

Daiwa
Nishi-Shinjuku

Kirin Nihonbashi
Building(Note 3)

Sept. 2015

Mar. 2016

May 2016

Acquisition price (Millions of yen)

28,000

2,871

1,647

13,7108,180Investment ratio (%)
Price
information Carrying amount (Millions of yen)

6.1

0.6

0.4

3.0

1.8

27,762

2,914

1,713

13,972

8,371

Estimated price at end of period(Millions of yen)

33,200

3,470

1,930

16,6008,350

Total number of tenants (Note 1)

91

9

8

6

1

Leasable floor area (m2)

32,055.85

2,622.42

1,734.68

6,967.61

5,630.17

Leased floor area (m2)

31,734.83

2,622.42

1,734.68

6,309.48

5,630.17

End of Nov. 2017

98.1

100.0

100.0

100.0

100.0

End of May 2018

99.4

100.0

100.0

100.0

100.0

End of Nov. 2018

99.3

100.0

100.0

100.0

100.0

End of May 2019

99.7

100.0

100.0

100.0

100.0

End of Nov. 2019

98.9

100.0

100.0

90.5

100.0

183

183

183

183

183

1,081,781

85,17247,749332,297(Not disclosed)

1,076,615

85,17247,749331,501(Not disclosed)

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A)(Thousands of yen)
Rent revenue – real estate

Income (loss)
information

Other lease business revenue

5,166

−

−

796

(Not disclosed)

Total property leasing expenses (B)(Thousands of yen)

463,778

35,27718,317

134,012(Not disclosed)

Consignment expenses

84,949

7,628

5,943

15,836(Not disclosed)

Utilities expenses

127,474

7,025

2,769

19,655(Not disclosed)

Taxes and dues

104,870

9,317

4,260

39,572(Not disclosed)

Non-life insurance expenses

1,713

124

64

300

(Not disclosed)

Repair expenses

12,440858

465

38,042(Not disclosed)

Depreciation (C)132,329

10,321

4,813

20,604(Not disclosed)

−

−

−

−

(Not disclosed)

618,00249,89529,432

198,285(Not disclosed)

750,332

60,21734,246

218,889

157,90957,366

824

260

1,700

1,713

692,965

59,39333,986217,189

156,196

42.87

41.42

38.36

40.33

(Not disclosed)

204,884

18,446

8,457

78,36322,184

1,970,900

114,190

84,620284,170

216,720

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)] (Thousands of yen)
Expense rate (%) [(B) ÷ (A)]
Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Higashi-nihonbashi
Building

Daiwa
Daikanyama(Note 3)Acquisition dateJune 2016

June 2016

Daiwa
Daiwa Shinjuku
Kanda Mikura-cho
West
Building
July 2016

Dec. 2016

Daiwa
Kanda East
Jan. 2018

Acquisition price (Millions of yen)

6,370

2,280

942

1,592

4,200

Investment ratio (%)

1.4

0.5

0.2

0.3

0.9

Carrying amount (Millions of yen)

6,267

2,375

977

1,588

4,267

Estimated price at end of period(Millions of yen)

7,030

3,590

1,210

1,800

5,620

Total number of tenants (Note 1)

5

1

8

7

5

Leasable floor area (m2)

5,015.88

1,642.83

1,120.58

1,719.51

3,980.56

Leased floor area (m2)

5,015.88

1,642.83

1,120.58

1,719.51

3,980.56

End of Nov. 2017

100.0

100.0

100.0

100.0

−

End of May 2018

100.0

100.0

100.0

100.0

91.8

End of Nov. 2018

100.0

100.0

99.0

100.0

100.0

End of May 2019

100.0

100.0

100.0

100.0

100.0

End of Nov. 2019

Occupancy rate (%)
Leasing
information

100.0

100.0

100.0

100.0

100.0

Number of days of asset management

183

183

183

183

183

Total property leasing revenue (A)(Thousands of yen)

175,163(Not disclosed)

38,52750,739141,050

Rent revenue – real estate

Income (loss)
information

175,163(Not disclosed)

38,52750,739141,050

Other lease business revenue−(Not disclosed)

−

−

−

Total property leasing expenses (B)(Thousands of yen)

56,229(Not disclosed)

12,288

16,94066,338

Consignment expenses

6,909(Not disclosed)

3,536

5,097

12,322

Utilities expenses

11,068(Not disclosed)

2,986

3,031

9,809

Taxes and dues

11,725(Not disclosed)

3,116

3,544

10,467

41

54

147

Non-life insurance expenses

201(Not disclosed)

Repair expenses

1,018(Not disclosed)

718

227

15,145

Depreciation (C)25,277(Not disclosed)

1,877

4,985

18,44530(Not disclosed)

12

−

−

118,934(Not disclosed)

26,23833,79874,712

144,21135,471

28,11538,783

93,158

2,400

220

115

585

469

141,81135,251

28,00038,19892,68932.10(Not disclosed)

31.90

33.39

47.03

23,254

10,300

6,229

7,047

20,663

158,880

45,044

79,33074,026

133,611

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)] (Thousands of yen)
Expense rate (%) [(B) ÷ (A)]
Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Kandasudacho

Daiwa Sasazuka
Tower

Daiwa Sasazuka

Daiwa Harumi

Daiwa Mita
2-Chome(Note 3)Acquisition dateJune 2018 andNov. 2018

Oct. 2018

Dec. 2018

Feb. 2019

July 2019

Acquisition price (Millions of yen)

2,295

15,5003,000

11,2002,635Investment ratio (%)

0.5

3.4

0.7

2.4

0.6

Carrying amount (Millions of yen)

2,371

16,032

3,188

11,295

1,599

Estimated price at end of period(Millions of yen)

2,810

16,3003,470

12,3003,280

Total number of tenants (Note 1)

9

5

8

7

1

Leasable floor area (m2)2,211.64

16,160.25

3,828.95

11,227.10

2,101.61

Leased floor area (m2)2,211.64

16,160.25

3,550.23

11,227.10

2,101.61

−

−

−

−

−

Occupancy rate (%)
Leasing
information

End of Nov. 2017
End of May 2018

−

−

−

−

−

End of Nov. 2018

100.0

100.0

−

−

−

End of May 2019

100.0

100.0

96.0

47.3

−

End of Nov. 2019

100.0

100.0

92.7

100.0

100.0

Number of days of asset management

183

183

183

183

153

Total property leasing revenue (A)(Thousands of yen)

64,921

469,078

85,069

153,955(Not disclosed)

Rent revenue – real estate

Income (loss)
information

64,921

469,078

84,889

153,955(Not disclosed)

Other lease business revenue

−

−

180

−

(Not disclosed)

Total property leasing expenses (B)(Thousands of yen)

21,461

230,227

57,106

121,312(Not disclosed)

Consignment expenses

6,015

45,1309,820

62,242(Not disclosed)

Utilities expenses

3,970

60,938

8,784

21,944(Not disclosed)

Taxes and dues

4,624

55,2848,845

107(Not disclosed)

69

777

143

439

(Not disclosed)

Non-life insurance expenses
Repair expenses

217

7,180

19,316

1,457(Not disclosed)

Depreciation (C)6,553

60,916

10,19534,847(Not disclosed)

10

−

−

274

(Not disclosed)

43,459238,851

27,96332,642(Not disclosed)

50,013299,767

38,15967,49060,274400

20,761

88,150

4,713

243

NCF [(E) – (F)] (Thousands of yen)

49,613

279,006(49,991)

62,77660,030

Expense rate (%) [(B) ÷ (A)]

33.06

49.08

67.13

78.80

(Not disclosed)

9,140

110,514

17,584−−76,730718,270

129,490

253,020

5,360

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)

Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period
RegionProperty nameAcquisition date

Greater Tokyo
Daiwa
Daiwa
Higashi-Ikebukuro Shinagawa North
Oct. 2005

July 2007

Daiwa
Osaki 3-chome(Note 4)

Daiwa
Kamiooka

Daiwa Ogikubo
Tower

Sept. 2012

Mar. 2013

May 2014

Acquisition price (Millions of yen)

2,958

7,710

−

2,000

15,220Investment ratio (%)

0.6

1.7

−

0.4

3.3

Price
information Carrying amount (Millions of yen)

2,609

7,087

−

1,857

16,546

Estimated price at end of period(Millions of yen)

4,300

6,350

−

2,900

22,700Total number of tenants (Note 1)

9

11

−

9

9

Leasable floor area (m2)

4,462.28

6,548.17−

2,630.30

17,778.14

Leased floor area (m2)

4,462.28

6,548.17−

2,630.30

17,778.14

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

100.0

100.0

End of May 2019

100.0

100.0

100.0

100.0

99.6

End of Nov. 2019

100.0

100.0

−

100.0

100.0

183

183

30

183

183

110,618

202,310

11,197

93,474

664,086

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A)(Thousands of yen)
Rent revenue – real estate

Income(loss)
information

110,618

202,310

11,197

93,474

664,086

Other lease business revenue

−

−

−

−

−

Total property leasing expenses (B)(Thousands of yen)

62,522

94,062

9,572

37,949371,711

Consignment expenses

18,291

17,943650

5,435

53,954

Utilities expenses

10,26913,799

1,132

7,758

71,580

Taxes and dues

8,610

18,968

3,964

6,399

45,088

211

326

11

118

844

Non-life insurance expenses
Repair expenses

511

6,636

−

172

71,235

Depreciation (C)24,62936,3783,813

18,065

128,828

Other lease business expenses

−

9

−

−

180

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

48,095108,248

1,624

55,524292,374

NOI (E) [(D) + (C)] (Thousands of yen)

72,724

144,627

5,438

73,590421,202

−

7,301

−

−

936,051

NCF [(E) – (F)] (Thousands of yen)

72,724

137,326

5,438

73,590(514,848)

Expense rate (%) [(B) ÷ (A)]

56.52

46.49

85.49

40.60

55.97

17,12337,023−

12,79889,302

228,260

331,160−

63,700575,795

Capital expenditures (F)(Thousands of yen)

Reference Annual amount of fixed property tax, etc.
information for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period

RegionMajor Regional
CitiesGreater Tokyo

Property name

Daiwa
Meguro Square

Daiwa
Ogikubo

CONCURRED
Yokohama

Daiwa Shinagawa
Gotenyama

Daiwa
Kitahama

Acquisition date

May 2015

July 2016

Jan. 2018

Sept. 2018

Aug. 2014

Acquisition price (Millions of yen)

5,600

3,800

38,100

2,500

9,481

Investment ratio (%)

1.2

0.8

8.3

0.5

2.1

Price
information Carrying amount (Millions of yen)

5,471

3,979

38,032

2,579

9,176

Estimated price at end of period(Millions of yen)

7,090

4,730

41,1002,710

13,300Total number of tenants (Note 1)

16

12

36

6

7

Leasable floor area (m2)

3,519.50

3,849.63

28,052.98

2,396.96

13,517.62

Leased floor area (m2)

3,519.50

3,849.63

28,052.98

2,396.96

13,517.62

End of Nov. 2017

100.0

100.0

−

−

100.0

End of May 2018

100.0

100.0

93.2

−

100.0

End of Nov. 2018

100.0

100.0

99.3

58.6

100.0

End of May 2019

100.0

100.0

98.7

100.0

86.9

End of Nov. 2019

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

166,976

128,654

1,032,027

67,453466,815

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A)(Thousands of yen)
Rent revenue – real estate

Income(loss)
information

166,976

128,654

1,032,006

67,453339,815

Other lease business revenue

−

−

21

−

127,000

Total property leasing expenses (B)(Thousands of yen)

57,54939,437

324,051

23,015

238,310Consignment expenses

10,2839,243

58,2486,497

42,067

Utilities expenses

9,250

6,946

87,475

3,831

35,756

Taxes and dues

13,827

8,205

57,4605,514

34,523

166

142

777

87

567

Non-life insurance expenses
Repair expenses

805

3,020

5,935

1,360

68,945

Depreciation (C)23,215

11,878114,012

5,723

56,354

−

−

143

−

96

109,426

89,217

707,975

44,438228,504

132,642

101,095

821,987

50,162284,859−

7,869

10,142

1,392

59,580132,642

93,226

811,845

48,769225,278

34.47

30.65

31.40

34.12

51.05

27,37016,332

153,211

10,97969,876

122,800

161,340

718,980

102,564

275,080

Other lease business expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%)[(B) ÷ (A)]
Reference Annual amount of fixed property tax,
information etc. for fiscal 2019 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)- 47 -

Daiwa Office Investment Corporation (8976) Financial Report for the 28th Fiscal Period(Note 1) 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 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) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc. forthe property.
(Note 4) Daiwa Osaki 3-chome Building was divested on July 1, 2019.

- 48 -