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 22nd Fiscal Period
January 20, 2017
Daiwa Office Investment Corporation
Stock Exchange Listing: TSE
8976
URL: http://www.daiwa-office.co.jp
Yoshimi Murakami, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Akira Yamanouchi, President and Representative Director
Yuji Shinotsuka, Vice President and Representative Director
TEL: +81-3-6215-9649

Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:

Scheduled date of submission of periodic securities report (yuka shoken hokokusho):Scheduled date of start of distribution payments:
Preparing presentation material:
Holding financial brief meeting:February 21, 2017
February 15, 2017

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 22nd Fiscal Period
22nd Fiscal Period: Fiscal period ended November 2016 (from June 1, 2016 to November 30, 2016)
21st Fiscal Period: Fiscal period ended May 2016 (from December 1, 2015 to May 31, 2016)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
22nd
Period21stPeriodOperating income

Ordinary income

Net income¥12,853 million

4.0%¥6,143 million

0.6%¥5,325 million(0.0%)¥5,324 million

1.4%¥12,363 million

4.4%¥6,108 million

8.8%¥5,326 million

13.6%¥5,250 million

12.0%

Net income
per unit
22nd
Period21stPeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥10,800

2.1%

1.1%

41.4%

¥10,847

2.1%

1.1%

43.1%

(Note) Net income per unit is calculated using the following daily weighted average number of investment units issued and outstanding:
22nd Period: 492,948 units; 21st Period: 484,000 units(2) Distributions
Distribution amount
per unit(excluding distribution
amount in excess of earnings)

22ndPeriod21stPeriodTotal distribution amount(excluding distribution
amount in excess of earnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Distribution
amount to
net assets

Dividend
payout¥10,695¥5,324 million¥0¥– million

100.0%

2.1%¥10,508¥5,085 million¥0¥– million

96.9%

2.1%

(Note) Distribution amount per unit for the 21st Fiscal Period is calculated by dividing the amount obtained by deducting provision of reserve for reduction
entry (¥164 million) from unappropriated retained earnings by the total number of investment units issued and outstanding. The main difference
between distribution amount per unit and net income per unit is due to the calculation.

(3) Financial Position
Total assets
22nd
Period21stPeriodUnitholders’ equity tototal assets

Net assets

Net assets
per unit¥483,450 million¥256,517 million

53.1%¥515,230¥476,690 million¥247,720 million

52.0%¥511,818-1-

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.
(4) Cash FlowsNet cashprovided by (used in)operating activities
22nd
Period21stPeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥11,157 million(¥14,558 million)¥1,031 million¥20,667 million¥17,363 million(¥22,336 million)¥9,311 million¥23,038 million

2. Management Status Forecasts for the 23rd Fiscal Period and 24th Fiscal Period
23rd Fiscal Period: Fiscal period ending May 2017 (from December 1, 2016 to May 31, 2017)24th Fiscal Period: Fiscal period ending November 2017 (from June 1, 2017 to November 30, 2017)[% figures show the period-over-period increase (decrease)]

Operating revenue
23rd
Period24th
PeriodOperating income

Net income¥12,462 million(3.0%)¥6,109 million(0.6%)¥5,329 million

0.1%¥5,327 million

0.1%¥12,655 million

1.6%¥6,051 million(0.9%)¥5,334 million

0.1%¥5,332 million

0.1%

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

23rd
Period24th
PeriodOrdinary income

Distribution amount in excess of earnings per unit

¥10,700¥0¥10,710¥0(Reference) Estimated net income per unit for the 23rd Fiscal Period: ¥10,700; 24th Fiscal Period: ¥10,710

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):
22nd Fiscal Period: 497,869 units
21st Fiscal Period: 484,000
units(ii) Total number of treasury units at end of period:
22nd Fiscal Period:– units
21st Fiscal Period:– units(Note) Please refer to “Notes to Per Unit Information” on page 27 for the number of investment units used as the basis for calculating the net
income per unit.
* Presentation of the status of implementation of audit proceduresThis financial report (kessan tanshin) is exempt from the audit procedures pursuant to the Financial Instruments and Exchange Act (Act No. 25
of 1948; including amendments thereto) (hereinafter referred to as the “Financial Instruments and Exchange Act”) and, at the time of disclosure ofthis financial report (kessan tanshin), the audit procedures pursuant to the Financial Instruments and Exchange Act have not been completed.
* Explanation of the appropriate use of the management status forecasts, and other matters of special note
The forecast figures are forward-looking statements based on information currently available to Daiwa Office Investment Corporation andinvolve uncertainties. Accordingly, the actual operating revenue, operating income, ordinary income, net income and distribution amount per unit
may vary 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 23rd Fiscal Period and 24th Fiscal
Period” on page 8.

-2-

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
Disclosure is omitted because there are no significant changes from the “Structure of the Investment Corporation” set out inthe most recent periodic securities report (yuka shoken hokokusho) (submitted on August 24, 2016).

2. Management Policy and Management Status
2.1. Management Policy
Disclosure is omitted because there are no significant changes from the “Investment Policy,” “Investment Target” and“Distribution Policy” set out in the most recent periodic securities report (yuka shoken hokokusho) (submitted on August 24,2016) as of date of this document.
2.2. Management Status(1) Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Investment Corporation was established on July 11, 2005 in accordance with the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate Asset Management 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 October18, 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 undermanagement amounting to 467,749 million yen as of the last day of November 2016.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets based on aclear portfolio development policy of specializing in investment in office buildings, with a particular focus on investment
in a total floor area of more than about 2,000m2 situated in downtown Tokyo, as well as through dedicated efforts toheighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment (from June 2016 to November 2016)
The Japanese economy during the fiscal period under review continued to show a modest recovery trend with real GDP
growth rate (Second Preliminary Estimates) for July to September 2016 at an annual rate of 1.3%, recording a positive
figure for three consecutive quarters under the ongoing quantitative/qualitative monetary easing policy by the Bank ofJapan.
In the office building leasing market in central Tokyo, with new supply having settled down, the vacancy rate took aturn after peaking in June 2013, dropping to 3.75% at the end of November 2016. Led by improvement in the vacancy rate
for 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 awhole continues to see increase in rent, albeit slight.
For the office building transaction market, an appetite for property acquisitions continued to be strong among real estatecompanies, funds (including J-REITs) and oversea investors with the continuing proactive lending attitude by financial
institutions backed by the forecast of an increase in property prices in accordance with expectations for economic
recovery.
b. Management Performance
In view of increasing the long-terml EPS (EPS (net income per unit) after deducting gain on sales of properties) over the
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 “Heiwa Higashi-nihonbashi Building” (acquisition
price: 6,370 million yen) and “Square Daikanyama Building” (acquisition price: 2,280 million yen) in June 2016, and“Ogikubo TM Building” (acquisition price: 3,800 million yen) and “Shinjuku West Building” (acquisition price: 942
million yen) in July 2016. In addition, the Investment Corporation divested 1 property (Daiwa Kudan) during the fiscal
period under review. As a result, the Investment Corporation’s assets under management as of the end of the 22nd Fiscal
Period (November 30, 2016) totaled 53 properties, the sum total of acquisition prices of which amounted to 467,749
million yen.
Concerning internal growth, while the office leasing market trended recovering, the Investment Corporation conducted
proactive leasing, such as capturing needs for floor expansion within the same property through strengthening
relationships with existing tenants and reinforcing collaboration with leasing brokers and property managers.
Consequently, the occupancy rate as of the end of the 22nd Fiscal Period (November 30, 2016) was 97.7%.

-3-

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
C. Overview of Capital Procurementa. Procurement of Capital for New Property Acquisitions
In the 22nd Fiscal Period, the Investment Corporation made the following borrowings and issued the following investment
units to fund the acquisition of new properties.
・The Investment Corporation took out short-terms loans of 6,000 million yen in total from Sumitomo Mitsui Banking
Corporation, Mizuho Bank, Ltd. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. on June 1, 2016 to partially fund theacquisition of a new property (Heiwa Higashi-nihonbashi Building) acquired on the same day.
・The Investment Corporation took out short-terms loan of 2,000 million yen from Sumitomo Mitsui Banking Corporation
on June 29, 2016 to partially fund the acquisition of a new property (Square Daikanyama Building) acquired on thesame day.
・A public offering with the payment date on August 2, 2016 (12,700 issued units, paid-in price of 587,489 per unit, a total
paid-in price of 7,461,110,300 yen) and a third-party allotment with the payment date on August 31, 2016 (1,169 issued
units, paid in price of 587,489 per unit, a total paid-in price of 686,774,641 yen) were implemented to repay part of theaforementioned short-terms loans totaling 8,000 million yen and to allocate the funds to cash on hand which decreased
after being used to acquire new properties (Ogikubo TM Building and Shinjuku West Building) acquired on July 21,
2016.
b. Procurement of Capital for Repayment of Borrowings
In the 22nd Fiscal Period, the Investment Corporation made the following borrowings to fund the repayment ofborrowings that were due for repayment.
・A total amount of 1,500 million yen was borrowed from Yamaguchi Bank Ltd. on August 31, 2016 to fund therepayment of the same amount borrowed from Aozora Bank, Ltd. due the same day.
The Investment Corporation made an early repayment on September 30, 2016 of 10,000 million yen out of 11,000 million
yen in total borrowings (long-term loans from Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank,
Ltd. taken out on May 26, 2016; short-terms loans from Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd. and
The Bank of Tokyo-Mitsubishi UFJ, Ltd. taken out on June 1, 2016; and short-term loan from Sumitomo Mitsui Banking
Corporation taken out on June 29, 2016).
c. Status of Interest-Bearing Liabilities at End of the Fiscal Period under Review
As a result of the above, the balance of interest-bearing liabilities outstanding as of the end of the 22nd Fiscal Period(November 30, 2016) stood at 204,300 million yen (short-term loans payable: 1,000 million yen; long-term loans payable:
198,200 million yen; investment corporation bonds: 5,100 million yen). The balance of the current portion of long-termloans payable stood at 28,250 million yen.
The average remaining period of interest-bearing liabilities as of the end of the 22nd Fiscal Period stands at 4.1 years.
List of Borrowings in the 22nd Fiscal Period
Loan amount(million yen)
2,000
2,000
2,000
2,000
1,500

LenderSumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Yamaguchi Bank, Ltd.

Drawdown
date
2016/6/1
2016/6/1
2016/6/1
2016/6/29
2016/8/31

Repayment
date
2017/5/31
2017/5/31
2017/5/31
2017/5/31
2026/8/31

Balance of Borrowings from Each Financial Institution (as of November 30, 2016)
End of the 22nd Fiscal Period
Lender(million yen)
Sumitomo Mitsui Banking Corporation
41,400Sumitomo Mitsui Trust Bank, Limited
24,850Development Bank of Japan Inc.
21,750Mizuho Bank, Ltd.
19,400
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
16,000Shinsei Bank, Ltd.
14,000Resona Bank, Ltd.
12,500Mitsubishi UFJ Trust and Banking Corporation
8,500

-4-

Loan
period
1.0 year
1.0 year
1.0 year
0.9 year
10.0 years

Share (%)
(Note)
20.78
12.47
10.92
9.74
8.03
7.03
6.28
4.27

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
Mizuho Trust and Banking Co., Ltd.
The Bank of Fukuoka, Ltd.
Kansai Urban Banking Corporation
Aozora Bank, Ltd.
The Nishi-Nippon City Bank Limited
ORIX Bank Corporation
The Gunma Bank, Ltd.
The 77 Bank, Ltd.
The Musashino Bank, Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Yamaguchi Bank, Ltd.
The Higashi-Nippon Bank, Limited
Nippon Life Insurance Company
The Kagawa Bank, Ltd.
The Hiroshima Bank, Ltd.
Taiyo Life Insurance Company
Fukoku Mutual Life Insurance Company
Total(Note) Share is rounded to two decimal places.

6,000
5,500
5,000
3,000
3,000
2,500
2,500
2,000
2,000
2,000
2,000
1,500
1,300
1,000
1,000
300
200
199,200

3.01
2.76
2.51
1.51
1.51
1.26
1.26
1.00
1.00
1.00
1.00
0.75
0.65
0.50
0.50
0.15
0.10
100.00d. Rating Information (as of November 30, 2016)
Credit rating agency
R&I
Japan Credit Rating Agency

RatingA+
AA-

Outlook
StableStableD. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance for the 22nd
Fiscal Period of 12,583 million yen in operating revenue, 6,143 million yen in operating income, 5,325 million yen in
ordinary income and 5,324 million yen in net income.
Concerning distributions, it is planned that the amount equivalent to distributions from earnings would be included in
the amount of tax-deductible expenses based on application of special provisions for taxation of corporation tax (Article
67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957; including amendments thereto) (the“Special Taxation Measures Act”)). Accordingly, the Investment Corporation decided to distribute almost the entire
amount of unappropriated retained earnings (excluding fractions of the distribution amount per unit that are less than 1yen), and declared a distribution amount per unit of 10,695 yen.

-5-

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period(2) Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy going forward is expected to see a moderate economic recovery through recovery in personal
spending against the backdrop of favorable employment environment and the improved income environment whilevarious economic measures, centering on the public works projects and financial policies promoted by the Abeadministration and the monetary easing policy implemented by Bank of Japan continue. However, factors, such as policies
to be set out by the U.S. President-elect Donald Trump, the downward swing of the Chinese economy, upset in emerging
markets accompanying the U.S. “exit strategy,” drop in stock prices around the world due to geopolitical risks anddownturn of the European economy, pose potential risks of disrupting the Japanese real economy and financial
environment, and are thus thought to require attention.
In the Tokyo office building leasing market, while new supply is on a low note, factors such as improvement in
employment are stimulating demand, resulting in the vacancy rate dropping. Improvement in corporate performance isforecasted to increase demand for office floor space and rent is expected to improve as a consequence. In the officebuilding transaction market, backed by the favorable financing environment and expectations of rent rising, among otherfactors, property acquisition appetite among investors overseas, real estate companies and funds (including J-REITs) isthought to grow even stronger.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Despite such office leasing market conditions as described above, the tenant side is also expected to become moreheavily selective with properties in terms of software such as crime/disaster prevention measures andoperations/management on top of location and building specifications. 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 vacancy risks by improving the quality of buildings, equipment andmanagement system. In addition, concerning new tenants, strive to maintain and raise occupancy rates through theprovision of services that are of higher satisfaction levels than competing properties through proactive participationin 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) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of high tenant satisfactionlevels by implementing efficient operational management and reviewing systematic construction work by optimallyleveraging the economies of scale achieved from proactively realizing external growth.
b. Strategy for New Property Investments
The Investment Corporation will invest in office buildings that have a total floor area of about 2,000m2 or more based on
various external growth strategies, while maintaining a balance with the asset acquisition environment and financing
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 willcontinue 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 the Group’s
extensive network of clients, partners, etc.
Furthermore, in the 22nd Fiscal Period, the Investment Corporation acquired “Heiwa Higashi-nihonbashi Building,”“Square Daikanyama Building,” “Shinjuku West Building” and “Ogikubo TM Building” which are located in Tokyo.
The Investment Corporation believes that acquisition of these properties will contribute to further stabilization andenhancement of the portfolio. The Investment Corporation will continue to strive to acquire properties in line with theinvestment 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 real LTV, etc., as a principle.
(ii) Diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing liabilities thatshall become due during any single fiscal period as a principle.
(iii) Aim to have long-term loans account for at least 70% of total loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.

-6-Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period(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 a trust beneficial interest in real estate on December 21, 2016 as follows.
Summary of Asset Acquired
Property nameShin Kanda Mikuracho Building

Type of asset

Trust beneficial interest in domestic real estate

Location

5-1 Kanda Mikuracho, Chiyoda-ku, Tokyo

Acquisition price

1,592 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 15, 2016

Date of delivery

December 21, 2016

SellerOH Real Estate Management Co., Ltd.

D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 23rd Fiscal Period (fiscal period ending
May 2017 (from December 1, 2016 to May 31, 2017)). For the assumptions underlying the management status forecasts,
please refer to the “Assumptions for the Management Status Forecasts for the 23rd Fiscal Period and 24th Fiscal Period”
on page 8.
23rd Fiscal Period (fiscal period ending May 2017 (from December 1, 2016 to May 31, 2017))
Operating revenue
12,462 million yen
Operating income
6,109 million yen
Ordinary income
5,329 million yen
Net income
5,327 million yen
Distribution amount per unit
10,700 yen
Distribution amount in excess of earnings per unit
- yen
In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 23rd Fiscal Period and 24th
Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status for the 24th
Fiscal Period (fiscal period ending November 2017 (from June 1, 2017 to November 30, 2017)).
24th Fiscal Period (fiscal period ending November 2017 (from June 1, 2017 to November 30, 2017))
Operating revenue
12,655 million yen
Operating income
6,051 million yen
Ordinary income
5,334 million yen
Net income
5,332 million yen
Distribution amount per unit
10,710 yen
Distribution amount in excess of earnings per unit
- yen
(Note) The forecast figures above are the current forecasts calculated based on certain assumptions. Accordingly, theactual operating revenue, operating income, ordinary income, net income, distribution amount per unit anddistribution amount in excess of earnings per unit may vary due to changes in the status. Moreover, the forecasts
set forth herein should not be construed as a guarantee of distribution amounts.

-7-

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
Assumptions for the Management Status Forecasts for the 23rd Fiscal Period and 24th Fiscal Period
Item
Assumptions
 23rd Fiscal Period:
Assets under management are assumed to be the 53 properties owned as of November 30, 2016, plus
the 1 property (Shin Kanda Mikuracho Building) acquired in December 2016, to total 54 properties.
Assets under 24th Fiscal Period
management
Assets under management are assumed to be the 54 properties described above.
 The actual number of properties may vary due to changes in the assets under management other thanabove.
 Rent revenue from existing properties is calculated based on historical data and taking into accountOperatingvariable factors.
revenue It is assumed that there is no gain (loss) on sales of real estate properties.
 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 therespective fiscal period based on the medium to long term repair plan established by the AssetManager.
 Operating income from property leasing (excluding gain on sales of real estate properties) after
deducting expenses related to rent business (including depreciation) is expected to be 7,373 million
yen in the 23rd Fiscal Period and 7,327 million yen in the 24th Fiscal Period.
 Consignment expenses are expected to be 933 million yen in the 23rd Fiscal Period and 904 million
Operatingyen in the 24th Fiscal Period.
expenses Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 1,034 million yen in the
23rd Fiscal Period and 1,114 million yen in the 24th 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 cost of
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. of fiscal 2017 for properties acquired in 2016 shall berecorded as expenses starting from the fiscal period ending November 2017.
 Depreciation is expected to be 1,778 million yen in the 23rd Fiscal Period and 1,777 million yen in the
24th Fiscal Period.
 Non-operating expenses in the 23rd Fiscal Period are expected to be 779 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related expenses
Non-operating
are expected to be 775 million yen.
expenses Non-operating expenses in the 24th Fiscal Period are expected to be 716 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related expenses
are expected to be 712 million yen.
 The total amount of interest-bearing liabilities is assumed to be 204,300 million yen at the end of the
23rd Fiscal Period and 204,300 million yen at the end of the 24th Fiscal Period
 In the 23rd Fiscal Period, it is assumed that the entire amount of the 1,700 million yen, 6,500 million
yen and 9,500 million yen of borrowings due for repayment on May 10, 2017, May 22, 2017 andInterest-bearing
liabilities
May 31, 2017, respectively, will be refinanced.
 In the 24th Fiscal Period, it is assumed that the entire amount of the 6,050 million yen and 5,500
million yen of borrowings due for repayment on August 31, 2017 and November 30, 2017,
respectively, will be refinanced.
 The total number of investment units issued and outstanding is assumed to be 497,869 units as of
Total number ofNovember 30, 2016.
investment units
issued and It is assumed that there are no changes to the number of investment units other than stated above until
outstanding
the end of the 24th 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 the
per unit
assets under management, changes in the rent revenue due to tenant changes and other causes, andincurrence of unforeseen repairs.

-8-Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
Item
Distribution amountin excess of earnings
per unit

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

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

2.3. Investment Risks
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 24,2016).

-9-

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period

3. Financial Statements
3.1. Balance Sheets

21st Fiscal Period[As of May 31, 2016]
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Other in trust
Accumulated depreciation
Other in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment*1- 10 -(Unit: thousand yen)
22nd Fiscal Period[As of Nov. 30, 2016]

20,940,424
2,097,792
174,843－
427,960
307
188,382
23,829,711

19,070,683
1,597,181
145,235
55,305369,096
11
16,773
21,254,286

3,131,970(1,803,895)
1,328,074
14,344(3,806)
10,537
18,958(9,260)9,697
12,302,226
3,448
101,441,708(19,195,589)
82,246,118
946,189(182,877)
763,311756,801(389,889)
366,911
187,063(86,203)
100,860
4,336(4,336)－351,272,600
42,085448,445,873

3,205,177
ሺ1,891,204)
1,313,973
14,344
ሺ4,278)10,066
19,126
ሺ10,006)
9,119
12,302,226
2,661
103,827,953
ሺ20,523,653)
83,304,300
959,053
ሺ195,189)
763,863886,637
ሺ411,719)
474,917228,556
ሺ97,495)
131,060
4,336(4,336)－359,306,652
399,429
458,018,269*1

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period

21st Fiscal Period[As of May 31, 2016]
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits in trust
Long-term prepaid expenses
Deferred tax assets
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 long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
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*2- 11 -(Unit: thousand yen)
22nd Fiscal Period[As of Nov. 30, 2016]

596
2,407,101
306,884
2,332
2,716,915

541
2,398,275
306,884
1,924
2,707,626

113,684
1,189,161
355,230－
10,0201,668,096
452,830,885

113,684
1,074,158
165,91080,482
10,0201,444,256
462,170,152

29,43529,435
476,690,032

26,481
26,481
483,450,920

988,220－
21,200,000
494,490970
534,190
2,051,727
365,653
25,635,253

1,996,736
1,000,000
28,250,000
456,273
831
89,141
2,028,280
264,659
34,085,923

5,100,000
180,000,000
15,881,378
988,887
1,364,329
203,334,595
228,969,848

5,100,000
169,950,000
16,447,831
504,267
845,574
192,847,673
226,933,597

243,403,874

251,551,759－－
5,250,225
5,250,225
248,654,100

164,162
164,162
5,324,776
5,488,939
257,040,698(933,915)(933,915)
247,720,184
476,690,032(523,375)
ሺ523,375)
256,517,323
483,450,920*2Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
3.2. Statements of Income

Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Investment unit issuance expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 12 -

21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016](Unit: thousand yen)
22nd Fiscal Period[From: June 1, 2016
To: Nov. 30, 2016]

*1
*1
*2

11,947,802
91,980323,700
12,363,483

*1
*1
*2

12,687,269
63,616102,138
12,853,024*1

5,014,202
994,954
23,18273,682
19,7205,400
123,886
6,255,028
6,108,455*1

5,433,014
1,043,440
24,15982,492
18,936
6,300
101,196
6,709,539
6,143,484

132
688
4,901
5,722

45
624
10,357
11,026597,306
16,892
166,855－
6,154
787,208
5,326,969
5,326,969
977
75,79876,7755,250,193
32
5,250,225

603,225
16,707173,072
31,3384,738
829,082
5,325,428
5,325,428
836
6
843
5,324,585
191
5,324,776

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
3.3. Statements of Unitholders’ Equity
21st Fiscal Period (from December 1, 2015 to May 31, 2016)(Unit: thousand yen)
Total valuation and translation
adjustments

Unitholders’ equity
Surplus

Total net assets(392,515)

247,700,383

Unappropriatedretained earnings(undisposed
loss)

Total Surplus

243,403,874

4,689,024

4,689,024

248,092,898

Dividends from surplus(4,688,992)(4,688,992)(4,688,992)(4,688,992)

Net income

5,250,193

5,250,193

5,250,193

5,250,193

Balance at beginning of current
fiscal period

Total unitholders’ Deferred gains orequitylosses on hedges

Total valuationand translation
adjustments

Unitholders’capital(392,515)

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

period(541,400)(541,400)－

561,201

561,201

561,201(541,400)(541,400)

19,801

243,403,874

5,250,225

5,250,225

248,654,100(933,915)(933,915)

247,720,184

the period
Balance at end of current fiscal(541,400)- 13 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
22nd Fiscal Period (from June 1, 2016 to November 30, 2016)(Unit: thousand yen)
Unitholders’ equity
Surplus

Voluntary retained earnings
Unitholders’capitalBalance at beginning of current
fiscal period

243,403,874

Reserve for
reduction entry

Total voluntary
retained earnings--

Total unitholders’equityUnappropriatedretained earnings(undisposed loss)

Total Surplus

5,250,225

5,250,225

248,654,100

Changes of items during theperiodIssuance of new investment
units

8,147,884

Provision of reserve for

8,147,884
ሺ164,162)--

Dividends from surplus(5,085,872)

ሺ5,085,872)

ሺ5,085,872)

Net income

5,324,585

5,324,585

5,324,585

164,162

reduction entry

164,162

Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period8,147,884

164,162

164,162

74,550238,713

8,386,598

251,551,759

164,162

164,162

5,324,776

5,488,939

257,040,698

Total valuation and translation adjustments

Balance at beginning of current
fiscal period

Deferred gains orlosses on hedges

Total valuation andtranslation
adjustments

Total net assets(933,915)(933,915)

247,720,184

Changes of items during theperiodIssuance of new investment

8,147,884

units
Provision of reserve for-

reduction entry
Dividends from surplus(5,085,872)

Net income

5,324,585

Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period410,540

410,540

410,540

410,540

410,540

8,797,138(523,375)(523,375)

256,517,323- 14 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
3.4. 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 amount21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]
Amount (yen)5,250,225,912
5,085,872,000[10,508]
164,162,797
191,115
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(484,000 units) in an amount that is
not in excess of the remaining amountobtained after deducting provision ofreserve for reduction entry defined in
Article 66-2 of the Special Taxation
Measures Act from unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 5,085,872,000
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

- 15 -

22nd Fiscal Period[From: June 1, 2016
To: Nov. 30, 2016]
Amount (yen)5,324,776,691
5,324,708,955[10,695]－
67,736
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(497,869 units) in an amount that is
not in excess of unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 5,324,708,955
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
3.5. Statements of Cash Flows

21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Investment unit issuance expenses
Interest income
Interest expenses(Increase) Decrease in operating accounts receivable(Increase) Decrease in consumption taxes refund receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Decrease from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
Repayments of tenant security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 16 -*1(Unit: thousand yen)
22nd Fiscal Period[From: June 1, 2016
To: Nov. 30, 2016]

5,326,969
1,726,589
2,954
－
(132)
614,198
63,992515,291(41,335)
14,935(107,982)
477,033
110,704
16,891
9,127,507
130,195
17,977,812
132(614,106)(783)
17,363,054

5,325,428
1,750,178
2,954
31,338(45)619,933
29,608(55,305)
58,864382,326
ሺ29)(445,049)(23,447)
115,0033,795,173
191,043
11,777,976
45(620,025)(975)
11,157,021(1,824)(22,667,593)
499,436
383,107(537,469)(12,066)(22,336,410)

ሺ16,739)
ሺ14,541,472)(82,008)
637,097515,643ሺ683,992)
ሺ386,915)
ሺ14,558,386)－(5,500,000)
21,700,000(2,200,000)－(4,688,695)
9,311,304
4,337,948
18,700,269
23,038,217

8,000,000(7,000,000)
1,500,000
ሺ4,500,000)
8,116,546
ሺ5,085,533)
1,031,012(2,370,352)
23,038,217
20,667,865*1

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
3.6. Notes to the Going Concern
Not applicable.
3.7. Notes to Significant Accounting Policies
1.
Accumulated depreciation method(1)
for noncurrent assets

2.

Accounting policies fordeferred assets

3.

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
7~23 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.
(1) Investment corporation bonds issuance costs
Amortized using the straight-line method over the period up to redemption.
(2) Investment unit issuance expenses
The entire amount is recorded as expenses upon expenditure.
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 costof acquisition of real estate properties is 53,870 thousand yen in the 21st Fiscal
Period and is 39,920 thousand yen in the 22nd 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 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
6.

Other significant matters forming
basis for preparation of financial
statements

(1)

(2)

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

3.8. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting and asset retirement obligations,disclosure is omitted because there is no substantial need for such disclosure in the financial report (kessan tanshin).
[Notes to Balance Sheets]*1. Advanced depreciation amount for noncurrent assets acquired by government subsidies, etc.
21st Fiscal Period[As of May 31, 2016]
Buildings in trust

22nd Fiscal Period[As of November 30, 2016]

32,898 thousand yen

Buildings in trust

32,898 thousand yen*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
21st Fiscal Period[As of May 31, 2016]

22nd Fiscal Period[As of November 30, 2016]

50,000 thousand yen

50,000 thousand yen[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing(Unit: thousand yen)
21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]
A.

B.

Property leasing revenue
Rent revenue – real estate
Other lease business revenue
Total property leasing revenue
Property leasing expenses
Consignment expenses
Utilities expenses
Taxes and dues

11,947,802
91,98022nd Fiscal Period[From: June 1, 2016
To: Nov. 30, 2016]
12,687,269
63,616

12,039,783
868,699
1,051,126
895,930- 18 -

12,750,885
942,415
1,068,008
1,045,891

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
Non-life insurance expenses
Repair expenses
Depreciation
Other lease business expenses
C.

17,250403,758
1,726,073
51,363

Total property leasing expenses
Operating income (loss) from property
leasing [A – B]

17,056456,738
1,749,716
153,188
5,014,202

5,433,014

7,025,580

7,317,871*2. Breakdown of gain on sales of real estate properties (Unit: thousand yen)
21st Fiscal Period [From: December 1, 2015 To: May 31, 2016]
Daiwa Shibuya Dougenzaka
Proceeds from sales of real estate properties
Cost of sales of real estate properties
Other expenses on sales

6,400,000
4,474,586
225,504
1,699,908

Gain on sales of real estate properties
Daiwa Minami-senba
Proceeds from sales of real estate properties
Cost of sales of real estate properties
Other expenses on sales

3,335,062
4,652,920
58,3501,376,208

Gain on sales of real estate properties
22nd Fiscal Period [From: June 1, 2016 To: November 30, 2016]
Daiwa Kudan
Proceeds from sales of real estate properties
Cost of sales of real estate properties
Other expenses on sales

4,048,485
3,795,173
151,172
102,138

Gain on sales of real estate properties- 19 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period[Notes to Statements of Unitholders’ Equity]
21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]

22nd Fiscal Period[From: June 1, 2016
To: Nov. 30, 2016]

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

2,000,000 units

484,000 units

497,869 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: thousand yen)
21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]

22nd Fiscal Period[From: June 1, 2016
To: Nov. 30, 2016]

Cash and deposits
Cash and deposits in trust

20,940,424
2,097,792

19,070,683
1,597,181

Cash and cash equivalents

23,038,217

20,667,865[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 and issuanceof new investment units, etc. for the acquisition and repair of investment properties, the payments of dividends and thereimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates, and dispersing
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 to liabilitiesof 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 the risk by
maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt to total debt athigh 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 flow of
the hedging instruments and the change in aggregated amount of cash flow of the hedged items. Interest rate swaps thatmeet the requirements for special accounting are omitted from assessment of the effectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions establishedby the basic policy of risk management. Tenant leasehold and security deposits and tenant leasehold and security deposits
in trust are exposed to liquidity risk upon tenants moving out and the Investment Corporation reduces the risk by poolingfunds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) and are managed
by limiting the terms to short durations and establishing credit rating level of counterparties (except for checkable 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- 20 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
calculations, the resulting value may differ if different assumptions are provided. Furthermore, the contractual amounts ofderivative 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 not include
those for which discerning of fair value is recognized to be extremely difficult (please refer to (Note 2)).
21st Fiscal Period [As of May 31, 2016]
Carrying amount(Unit: thousand yen)
Difference

Fair value(1) Cash and deposits

20,940,424

20,940,424－(2) Cash and deposits in trust

2,097,792

2,097,792－

23,038,217

23,038,217

－

－

－

－

(4) Current portion of long-term loans payable

21,200,000

21,292,249

92,249(5) Investment corporation bonds

5,100,000

5,221,170

121,170

180,000,000

180,362,802

362,802206,300,000

206,876,221

576,221(1,365,241)(1,365,241)－

Total assets(3) Short-term loans payable(6) Long-term loans payable
Total liabilities
Derivative transactions (*)
22nd Fiscal Period [As of November 30, 2016]

Carrying amount(1) Cash and deposits(2) Cash and deposits in trust

Fair value(Unit: thousand yen)
Difference

19,070,683

19,070,683－

1,597,181

1,597,181－

20,667,865

20,667,865－(3) Short-term loans payable

1,000,000

1,000,000－(4) Current portion of long-term loans payable

28,250,000

28,320,007

70,007(5) Investment corporation bonds

5,100,000

5,184,930

84,930169,950,000

170,032,842

82,842

204,300,000

204,537,780

237,780

Total assets(6) Long-term loans payable
Total liabilities

Derivative transactions (*)－(765,091)(765,091)(*) 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 isstated at that book value.
Liabilities(3) Short-term loans payable; (4) Current portion of long-term loans payable; (6) Long-term loans payable
As those with floating interest rates reflect market interest rates within a short period of time and the Investment
Corporation’s credit capability does not differ markedly from the execution, the fair value is approximately the same as
the book value and thus is stated at that book value. Those with fixed interest rates, on the other hand, are based on themethod of calculating by discounting the sum total amount of principal and interest (*) by the reasonably estimatedinterest rate in the case that the same type of borrowings are undertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest is handled
together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions] below.)(5) Investment corporation bonds
The fair value of the investment corporation bonds issued by the Investment Corporation is based on the market price.

- 21 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
Derivative transactions
Please refer to [Notes to Derivative transactions] below.
(Note 2) Financial products for which it is extremely difficult to estimate fair value.
(Unit: thousand yen)
21st Fiscal Period[As of May 31, 2016]
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust

22nd Fiscal Period[As of November 30, 2016]
16,447,831
504,267

15,881,378
988,887

Total
16,870,265
16,952,099
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 difficulty incalculation 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.
21st Fiscal Period [As of May 31, 2016](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Cash and deposits

20,940,424

–

–

–

–

–

Cash and deposits in trust

2,097,792

–

–

–

–

–

Total

23,038,217

–

–

–

–

–

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

19,070,683

－

－

－

－

－

1,597,181

－

－

－

－

－

20,667,865

－

－

－

－

－

Over 5 years

22nd Fiscal Period [As of November 30, 2016](Unit: thousand yen)

Cash and deposits
Cash and deposits in trust
Total

Over 5 years(Note 4) Amount of repayment of short-term loans payable, current portion of long-term loans payable, long-term loans payable
and investment corporation bonds scheduled to be due after the settlement of accounts.
21st Fiscal Period [As of May 31, 2016](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

21,200,000

－

－

－

－

－

－

－

－

3,000,000－

2,100,000－

19,400,000

21,500,000

25,000,000

33,300,000

80,800,000

21,200,000

19,400,000

21,500,000

28,000,000

33,300,000

82,900,000

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

1,000,000

－

－

－

－

－

Current portion of
long-term loans payable

28,250,000

－

－

－

－

－

Current portion of
long-term loans payable
Investment corporation bonds
Long-term loans payable
Total

Over 5 years

22nd Fiscal Period [As of November 30, 2016](Unit: thousand yen)Over 5 years

Investment corporation bonds－－

3,000,000－－

2,100,000

Long-term loans payable－

17,350,000

22,000,000

31,600,000

24,200,000

74,800,000

29,250,000

17,350,000

25,000,000

31,600,000

24,200,000

76,900,000

Total- 22 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
21st Fiscal Period [As of May 31, 2016]
Not applicable.
22nd Fiscal Period [As of November 30, 2016]
Not applicable.
(2) Transactions for which hedge accounting is applied
21st Fiscal Period [As of May 31, 2016]
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: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
quoted by partner
82,800,000
81,300,000(1,365,241)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans－
28,350,000
19,850,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
111,150,000
101,150,000(1,365,241)
22nd Fiscal Period [As of November 30, 2016]
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: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Based on priceLong-termtransaction
accounting
quoted by partner
loans
99,600,000
99,600,000(765,091)
Fixed payable
methodfinancial institution
payableFloating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
(*)
loans
－
28,350,000
14,350,000
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
127,950,000
113,950,000
ሺ765,091)(*) 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 that ofrelated long-term loans payable. (Please refer to “Notes to Financial Instruments (2) Matters Concerning Fair Value, etc. of
Financial Instruments (Note 1) Liabilities (4) (6)”).

- 23 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period[Notes to Transactions with Related Parties](1) Transactions with related parties
21st Fiscal Period [From: December 1, 2015 To: May 31, 2016]
Not applicable.
22nd Fiscal Period [From: June 1, 2016 To: November 30, 2016]
Not applicable.
(2) Notes to parent company and significant affiliated companies
21st Fiscal Period [From: December 1, 2015 To: May 31, 2016]
Not applicable.
22nd Fiscal Period [From: June 1, 2016 To: November 30, 2016]
Not applicable.

- 24 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period[Notes to Investment and Rental Properties]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The carrying amount,amount of increase (decrease) during period and fair value for these rental properties are as follows.
(Unit: thousand yen)
21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]

22nd Fiscal Period[From: June 1, 2016
To: Nov. 30, 2016]

Carrying amount
Balance at beginning of period

439,123,698

451,114,325

Amount of increase (decrease) during period

11,990,626

9,207,014

Balance at end of period

451,114,325

460,321,339

483,390,000

505,430,000

Fair value at end of period(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) for rental properties during the 21st Fiscal Period, the amount of increase is mainly
attributable to acquisition of 2 properties (21,890 million yen) and the amount of decrease is mainly attributable to salesof 2 properties (9,127 million yen) and depreciation (1,726 million yen). Of the amount of increase (decrease) for rental
properties during the 22nd Fiscal Period, the amount of increase is mainly attributable to acquisition of 4 properties(13,392 million yen) and the amount of decrease is mainly attributable to sales of Daiwa Kudan (3,795 million yen) anddepreciation (1,749 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 “Notes to Statements of Income.”- 25 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period[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
21st Fiscal Period [From: December 1, 2015 To: May 31, 2016]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment are inexcess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90% of
the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer accounts
for less than 10% of the operating revenue on statements of income.
22nd Fiscal Period [From: June 1, 2016 To: November 30, 2016]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment are inexcess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90% of
the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer accounts
for less than 10% of the operating revenue on statements of income.

- 26 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period[Notes to Per Unit Information]
21st Fiscal Period
22nd Fiscal Period[From: Dec. 1, 2015
[From: June 1, 2016
To: May 31, 2016]
To: Nov. 30, 2016]
Net assets per unit
511,818 yen
515,230 yen
Net income per unit
10,847.50 yen
10,800.73 yen(Note 1) The net income per unit was calculated by dividing the net income by the daily weighted average number of investment
units issued and outstanding. The diluted net income per unit is not stated as there are no diluted investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
21st Fiscal Period
22nd Fiscal Period[From: Dec. 1, 2015
[From: June 1, 2016
To: May 31, 2016]
To: Nov. 30, 2016]
Net income (thousand yen)
5,250,193
5,324,585
Amounts not attributable to common unitholders (thousand yen)－－
Net income attributable to common investment units (thousand yen)
5,250,193
5,324,585
Average number of investment units during the period (unit)
484,000
492,984[Notes to Significant Subsequent Events]
The Investment Corporation acquired a trust beneficial interest in real estate on December 21, 2016 as follows.
Summary of Asset Acquired
Property nameShin Kanda Mikuracho Building

Type of asset

Trust beneficial interest in domestic real estate

Location

5-1 Kanda Mikuracho, Chiyoda-ku, Tokyo

Acquisition price

1,592 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 15, 2016

Date of delivery

December 21, 2016

SellerOH Real Estate Management Co., Ltd.

- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
The Investment Corporation resolved to issue new investment units at its Board of Directors meetings held on July 15, 2016 andJuly 26, 2016. Payments were completed for the public offering and third-party allotment on August 2, 2016 and August 31, 2016,
respectively. The overview of capital increase in the most recent 5 years up to the end of the 22nd Fiscal Period is as follows.
Number of investment units
Unitholders’ capitalissued and outstanding(million yen)(units)Payment date
Description
Notes
Increase
Increase
Balance
Balance(Decrease)(Decrease)
Capital increase through public
July 2, 2014
41,092436,890
18,522
217,303 (Note 1)
offering
Capital increase by way of a
July 30, 2014
4,110
441,000
1,852
219,155 (Note 2)
third-party allotment
Capital increase through public
June 1, 2015
41,045
482,045
23,145242,301 (Note 3)
offering
Capital increase by way of aJune 24, 2015
1,955
484,000
1,102
243,403 (Note 4)
third-party allotment
Capital increase through public
August 2, 2016
12,700496,700
7,461
250,864 (Note 5)
offering
Capital increase by way of a
August 31, 2016
1,169
497,869686
251,551 (Note 6)
third-party allotment(Note 1) The Investment Corporation issued new investment units through public offering at an issue price of 466,537 yen per unit
(amount paid in: 450,746 yen) to procure funds for acquisition of properties, etc.
(Note 2) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 450,746 yen
per unit (amount paid in: 450,746 yen) to procure funds for acquisition of properties, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of 583,050 yen per unit
(amount paid in: 563,914 yen) to procure funds for acquisition of properties, 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 563,914 yen
per unit (amount paid in: 563,914 yen) to procure funds for acquisition of properties, repayment of borrowings, etc.
(Note 5) The Investment Corporation issued new investment units through public offering at an issue price of 607,425 yen per unit
(amount paid in: 587,489 yen) to procure funds for repayment of borrowings, etc.
(Note 6) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 587,489 yen
per unit (amount paid in: 587,489 yen) to procure funds for repayment of borrowings, etc.

- 28 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
4. Changes in Directors
4.1. Changes in Directors at the Investment Corporation
Executive Director Nobuaki Omura resigned at the close of the 9th General Meeting of Unitholders held on August 19, 2016
and Yoshimi Murakami, who was elected at the general meeting as Executive Director, assumed the office on the same day.
The following is the directors at the Investment Corporation as of the date of this document.

Title
Executive
Director

Name
YoshimiMurakami

Career summary
Apr. 1974
Jan. 1990
Jul. 1994
Apr. 1999
Jun. 2001
Apr. 2005
Apr. 2007

Apr. 2009
Apr. 2010
Jun. 2012
Apr. 2013
Aug. 2016
Supervisory
Director

TakayukiHiraishi

Apr. 1992

Sept. 1995
Sept. 1996
Sept. 1997
Jul. 2005
Jan. 2014
Aug. 2014
Supervisory
Director

Hiroshi
SakumaApr. 1983
Sept. 1989
Apr. 1991
Sept. 1995
Jul. 1996
Apr. 1998
May 2000
Jul. 2005
Jan. 2014
Aug. 2014

Joined Daiwa Securities Co. Ltd. (currently, Daiwa Securities GroupInc.)
General Manager, Branch Manager, Fukui Branch of Daiwa Securities
Group Inc.
General Manager, Investment Service (Corporate Institutions) Dept. (II)of Daiwa Securities Group Inc.
General Manager, Head of Corporate Institutions Dept. II, Daiwa
Securities SB Capital Markets Co. Ltd.
Executive Officer, Head of Main Retail Branch, Daiwa Securities Co.,Ltd.
President, Daiwa Pension Consulting Co., Ltd.
Managing Director, Deputy Head of Sales Division, Corporate Client
Services Officer, Daiwa Securities Co., Ltd. and Senior Managing
Director (part-time), Daiwa Investor Relations Co., Ltd.
Senior Managing Director, Deputy Head of Sales Division, Daiwa
Securities Co., Ltd.
President, Daiwa Securities Business Center Co., Ltd.
President, Daiwa Securities Business Center Co., Ltd. andPresident, Daiwa Pension Consulting Co., Ltd.
Special Advisor, Daiwa Securities Business Center Co., Ltd.
Executive Director, Daiwa Office Investment Corporation (current
position)
Admitted to practice law
Joined Spring Partners (now called as Okinobu, Ishihara & Sei Law
Office)University of Connecticut School of Law
Joined Pillsbury Madison & Sutro LLP (now called as Pillsbury
Winthrop Shaw Pittman LLP) (Los Angeles)
Rejoined Spring Partners (current position)
Supervisory Director of Daiwa Office Investment Corporation (current
position)
Supervisory Director of Nippon Healthcare Investment Corporation
Retired from Supervisory Director, Nippon Healthcare Investment
Corporation
Joined NEC Corporation
Joined Arthur Andersen
Joined Coopers & Lybrand
Joined Smith Barney & Co.
Joined Salomon Smith Barney Asia Limited
Established Sakuma CPA firm (current position)
Director of JUST PLANNING Inc. (current position)
Supervisory Director of Daiwa Office Investment Corporation (current
position)
Supervisory Director of Nippon Healthcare Investment Corporation
Retired from Supervisory Director, Nippon Healthcare Investment
Corporation

Number ofshares held－－－

(Note) Yoshiki Nishigaki was elected as Substitute Executive Director at the aforementioned general meeting of unitholders in
preparation for the event of Executive Director failing to remain in office or the number of Executive Directors falling
below what is set forth by laws and regulations. Yoshiki Nishigaki is Vice President and Representative Director of
Daiwa Real Estate Asset Management Co. Ltd., the Asset Manager.

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period

4.2. Changes in Directors at the Asset Manager
Not applicable.

- 30 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period

5. Reference Information
5.1. Investment Status
Type of asset

Real estate

Trust beneficial interestin real estate

Use

OfficeOfficeRegion22nd Fiscal Period(As of November 30, 2016)
Total amount owned
As a percentage of total(million yen) (Note 1)
assets (%)

Five Central Wards of Tokyo

16,033

3.3

Five Central Wards of Tokyo

391,455

81.0

Greater Tokyo

38,126

7.9

Major Regional Cities

14,7053.0

460,32195.2

23,1294.8

483,450100.0[460,321][95.2]

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

- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
5.2. Investment Real Estate Properties (As of November 30, 2016)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Carrying
Type ofprice
amountRegionProperty namespecified(million yen) (million yen)
asset
(Note 4)(Note 5)
Daiwa Ginza
14,10013,231
Real estate
Daiwa Ginza Annex
3,050
2,802
Daiwa Shibaura
8,265
8,061
Daiwa Minami-Aoyama
4,550
4,456
Daiwa Sarugakucho
3,190
3,204
Daiwa A Hamamatsucho (Note 8)
2,865
2,818
Daiwa Jingumae
2,800
2,734
Daiwa Shibadaimon
2,578
2,384
Daiwa Misakicho
2,346
2,174
Daiwa Shimbashi 510
2,080
2,131
Daiwa Tsukijiekimae
1,560
1,328
Daiwa Tsukiji
1,240
1,157
Daiwa Tsukishima
7,840
7,051
Daiwa Nihonbashi Horidomecho
2,520
2,477
Daiwa Azabudai
1,600
1,530
Daiwa Kyobashi
3,460
3,282
Daiwa Kojimachi 4-chome
2,910
2,856
Daiwa Onarimon
13,86013,424
Shinjuku Maynds Tower (Note 8)
133,800
129,961SHIBUYA EDGE
5,900
5,697
Five
Daiwa
Kodenmacho
2,460
2,392
Central
Trust
4,150
4,065
Wards of Daiwa Jimbocho
beneficial
Tokyo
Daiwa Nishi-Shimbashi
5,000
4,813
interest in(Note 1)
Daiwa Kayabacho Building
5,600
5,342
real estate
Daiwa Jimbocho 3-chome
3,550
3,432
E SPACE TOWER
24,00023,623
Daiwa Nihonbashi Hongokucho
1,721
1,628
shinyon curumu
9,650
9,777
Daiwa Akasaka
9,200
9,381
Daiwa Shibuya Miyamasuzaka
7,000
7,244
Azabu Green Terrace
14,00014,190Daiwa Ebisu 4-chome
4,135
4,263
LAQUAS Higashi Shinjuku
8,450
8,578
Concept Aoyama
9,800
10,088
Shinsen Place
4,800
4,907
Glass City Shibuya
16,00016,073
River Gate
28,00028,159Daiwa Hatchobori ekimae
2,871
2,966
Daiwa Hatchobori ekimae West
1,647
1,736
Nikko Building
13,71013,970Kirin Nihonbashi Building
8,180
8,320
Heiwa Higashi-nihonbashi Building
6,370
6,412
Square Daikanyama Building
2,280
2,371

- 32 -

Estimated price at Investment
end of periodratio(million yen)(%)
(Note 6)(Note 7)
16,700
3.0
3,500
0.7
7,670
1.8
4,410
1.0
3,340
0.7
3,380
0.6
2,320
0.6
2,960
0.6
2,730
0.5
2,470
0.4
1,650
0.3
1,430
0.3
9,230
1.7
2,530
0.5
1,860
0.3
3,290
0.7
2,750
0.6
13,4003.0
122,000
28.6
4,870
1.3
2,150
0.5
3,470
0.9
6,000
1.1
7,710
1.2
4,620
0.8
32,800
5.1
2,310
0.4
13,7002.1
12,900
2.0
8,660
1.5
15,900
3.0
5,380
0.9
10,2001.8
11,800
2.1
6,260
1.0
17,8003.4
30,100
6.0
3,210
0.6
1,800
0.4
14,800
2.9
8,230
1.7
6,560
1.4
2,470
0.5

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
Shinjuku West Building
Total for Five Central Wards of Tokyo (44 Properties)
Daiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Greater Daiwa Osaki 3-chomeTokyo
Daiwa Kamiooka(Note 2) Integral Tower
Meguro Place Tower
Ogikubo TM Building
Total for Greater Tokyo (7 properties)
Major
Daiwa Meieki
Regional
Cities
Kitahama Grand Building(Note 3)
Total for Major Regional Cities (2 properties)
Total (53 properties)

Trust
beneficial
interest inreal estate

Trustbeneficial
interest inreal estate

942

984

1,160

0.2

414,030

407,489

442,480

88.5

2,958
7,710
1,650
2,000
15,2205,600
3,800
38,938

2,712
7,238
1,639
1,966
15,027
5,595
3,947
38,126

3,650
6,010
2,320
2,600
18,5006,410
4,300
43,790

0.6
1.6
0.4
0.4
3.3
1.2
0.8
8.3

5,300

5,288

7,660

1.1

9,481

9,416

11,5002.0

14,781
467,749

14,705
460,321

19,160505,4303.2
100.0(Note 1) “Five Central Wards of Tokyo” means Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards.
(Note 2) “Greater Tokyo” means Tokyo excluding the Five Central Wards of Tokyo, Kanagawa, Chiba and Saitama prefectures.
(Note 3) “Major Regional Cities” means Osaka area (i.e., Osaka, Kyoto and Hyogo prefectures), Nagoya area (Aichi, Mie andGifu prefectures) and ordinance-designated cities and core cities under the Local Autonomy Act.
(Note 4) Acquisition price is excluding acquisition costs, fixed property tax, city planning tax, consumption tax and local
consumption tax.
(Note 5) Carrying amount is the book value after depreciation as of November 30, 2016.
(Note 6) Estimated price at end of period is the price as of November 30, 2016 stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii Appraisal & Investment
Consulting, Inc. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 7) Investment ratio is the acquisition price of each property expressed as a percentage of the total amount of acquisition
prices, rounded to one decimal place.
(Note 8) For Daiwa A Hamamatsucho Building and Shinjuku Maynds Tower, the figures are those pertaining to the Investment
Corporation’s ownership interest.

- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
5.2.2. Summary of Building and Leasing of Investment Real Estate
RegionProperty nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho (Note 8)
Daiwa A Hamamatsucho
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho (Note 8)
Daiwa Shimbashi 510
Daiwa Tsukijiekimae
Daiwa Tsukiji
Five Central
Wards of Daiwa Tsukishima
Tokyo
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note 9)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan (Note 10)
Daiwa Kayabacho Building (Note 8)

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

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

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

July 1963

8,179.62

7,766.4427

94.9

395,979

Aug. 1972

2,032.11

2,032.11

7

100.0

88,749Oct. 1987

9,619.67

9,394.66

52

97.6

240,358

Sept. 1990

2,715.54

2,715.54

6

100.0

113,035

June 1985

3,657.43

3,657.43

1

100.0

-

July 1993

3,663.38

3,663.38

12

100.0

132,392

Dec. 1997

2,198.61

2,198.61

4

100.0

71,675

Nov. 1996

2,386.48

2,386.48

6

100.0

85,853

July 1996

2,137.53

2,137.53

1

100.0

-

Apr. 1974

2,641.56

2,633.16

7

99.6

69,202

Jan. 1996

2,659.59

2,659.59

6

100.0

56,720Jan. 1990

1,487.44

1,487.445

100.0

47,332

July 1996

8,426.28

4,784.142

56.7

129,017

Apr. 1993

2,850.81

2,850.81

8

100.0

82,561

Apr. 1984

1,697.88

1,697.88

10

100.0

53,489Oct. 1974

3,265.83

2,882.69

8

88.2

93,383Oct. 1987

2,690.90

2,690.90

7

100.0

92,072

Apr. 1973

11,614.92

11,614.92

7

100.0

341,453

Sept. 1995

45,543.97

45,182.00

36

99.2

2,514,385

Aug. 2006

2,480.65

2,480.655

100.0

125,017Mar. 1985

2,379.31

2,379.318

100.0

64,621Mar. 1997

3,164.26

3,164.267

100.0

105,713

July 1993

4,815.84

4,815.84

11

100.0

163,966

Mar. 1987

-

-

-

-

21,811

Apr. 2010

5,899.11

5,899.11

1

100.0

-

- 34 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period

RegionProperty nameDaiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Azabu Green Terrace
Daiwa Ebisu 4-chome (Note 8)
LAQUAS Higashi Shinjuku
Concept Aoyama
Shinsen Place (Note 8)
Glass City Shibuya
River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Nikko Building
Kirin Nihonbashi Building (Note 8)
Heiwa Higashi-nihonbashi Building
Square Daikanyama Building (Note 8)
Shinjuku West Building

Structureandnumber offloors(Note 1)S
9F
S / SRC
B1 / 15F
S
8F
S / RC
B2 / 11F
SRC
B2 / 7FS
B1 / 12F
S / RC
B1 / 6F
SRC
B1 / 9FS
10F
S / RC
B1 / 7FRC
B1 / 9FS / SRC
B1 / 11F
S / SRC /RC
B2 / 20FS / SRC
B1 / 10F
SRC
B1 / 9F
SRC / RC /S
B2 / 11F
S / SRC
7F
S
7F
S
6F
RC
4F

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Feb. 2010

2,889.34

2,889.34

8

100.0

114,455

Oct. 2002

13,960.87

13,521.40

6

96.8

793,932

May 2010

2,143.08

2,143.08

6

100.0

63,187Jan. 2012

6,751.31

6,751.31

18

100.0

322,419

Sept. 1990

8,739.17

8,739.17

20

100.0

342,044

Dec. 1988

6,327.95

6,327.958

100.0

242,942

Sept. 2009

13,234.39

13,192.63

11

99.6

436,169

Dec. 1997

2,885.64

2,885.64

1

100.0

-

Aug. 2010

7,498.33

7,498.33

4

100.0

227,681Nov. 2001

4,421.15

4,421.15

5

100.0

215,785

Sept. 2001

2,811.35

2,811.35

1

100.0

-

Feb. 2004

8,566.73

8,566.73

10

100.0

416,414

Feb. 1994

32,063.06

30,512.63

80

95.1

1,039,686

Feb. 2006

2,622.42

2,622.429

100.0

78,032Feb. 1996

1,723.15

1,723.158

100.0

45,625

Aug. 1991

6,967.61

6,924.71

7

99.3

311,095

Feb. 1999

5,630.17

5,630.17

1

100.0

-

Mar. 2008

5,015.88

5,015.88

5

100.0

165,841

Mar. 2001

1,588.35

1,588.35

1

100.0

-

Mar. 1989

1,120.58

1,120.58

7

100.0

26,716

Total for Five Central Wards of Tokyo (45 properties)
Daiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Daiwa Osaki 3-chome
GreaterTokyo

SRC / S
B1 / 9F
SRC
B1 / 11F
S / RC
B1 / 6F

275,169.25

268,060.85

460

97.4

10,827,662

June 1993

4,461.47

4,461.47

7

100.0

121,229

July 1991

6,548.17

6,548.17

14

100.0

196,667

Sept. 2007

1,786.06

1,786.06

5

100.0

52,347

Daiwa Kamiooka

S / SRC
B3 / 7F

May 2011

2,630.30

2,465.71

8

93.7

82,673Integral Tower (Note 11)

S / SRC
B2 / 18F

June 1993

17,778.14

17,778.14

9

100.0

574,331

Meguro Place Tower

S / SRC
B2 / 14F

July 2009

3,519.50

3,382.93

14

96.1

145,224

Ogikubo TM Building

SRC
B1 / 7F

Nov. 1990

3,849.63

3,849.63

11

100.0

90,03940,573.27

40,272.11

68

99.2

1,262,513

Dec. 2007

7,461.90

7,461.90

24

100.0

248,690

Feb. 2008

13,517.62

13,517.62

6

100.0

347,799

20,979.52
336,722.04

20,979.52
329,312.48

30
558

100.0
97.7

596,490
12,686,666

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

Construction
completion(Note 2)

Daiwa Meieki
Kitahama Grand BuildingS
12F
S / SRC
B1 / 16F

Total for Major Regional Cities (2 properties)
Total (54 properties)- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period(Note 1) “Structure and number of floors” are the entries in the real estate registry of the building of the applicable investment
real estate property. “S” refers to steel-framed structure, “RC” refers to reinforced concrete structure, “SRC” refers tosteel-framed reinforced concrete structure, “B” refers to floors below ground and “F” refers to floors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment real estate
property.
(Note 3) “Leasable floor area” represents the floor area of the building of the applicable property that is leasable, not including
the leasable area of the land (including level parking space), and is the floor area indicated in the lease contract, etc. as ofNovember 30, 2016.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease agreements, etc. executed with
end-tenants as of November 30, 2016.
(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 the22nd Fiscal Period, rounded down to the nearest thousand yen. It does not include rent revenue (602 thousand yen)during current period from Daiwa Minami-Senba which was divested on April 13, 2016.
(Note 8) Not shown for such reasons as consent was not obtained from major tenants to disclose the rent revenue during current
period for the properties.
(Note 9) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the common
ownership interest corresponding to six-sevenths of the entire property. Accordingly, leasable floor area and leased floorarea are the floor areas corresponding to six-sevenths of the entire building.
(Note 10) The property was divested on July 7, 2016. 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.

- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A. Scheduled Capital Expenditures for the 23rd 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 Akasaka(Minato-ku, Tokyo)
Ogikubo TM Building(Suginami-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Akasaka(Minato-ku, Tokyo)
Daiwa Shibadaimon(Minato-ku, Tokyo)

PurposeUpgrading of air-conditioning system
Upgrading of air-conditioning
equipment
Changing lighting in exclusive areas to
LED (green leasing)Upgrading of mechanical parking
facility
Upgrading of individual
air-conditioning equipment

Expected construction amount (million yen)
Scheduled
implementation
Amount paid
Total amount
Total amountperiodduring current period
already paid
From: Nov. 2016
1,091
－
－
To Jun. 2018
From: Feb. 201788－－
To May 2017
From: Dec. 201660－－
To May 2017
From: Oct. 201655－－
To May 2017
From: Feb. 201754－－
To May 2017

B. Capital Expenditures during the 22nd Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the 22nd
Fiscal Period. Capital expenditures for the 22nd Fiscal Period amounted to 992 million yen and, when combined with the 456
million yen in repair expenses charged to the 22nd Fiscal Period expenses, totals 1,449 million yen in construction work were
implemented.
Name of real estate properties(Location)
Daiwa Tsukishima(Chuo-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Shibaura(Minato-ku, Tokyo)

PurposeConstruction amount paid
(million yen)

PeriodRenovation work of common areas
Repair work of mechanical parking facility
Upgrading of elevators

Other

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

Apr. 2016
Jul. 2016
Jul. 2016
Oct. 2016
Aug. 2016
Nov. 2016
Jun. 2015
Nov. 2016

Total

69
69
63
789
992

C. Reserve Amount for Long-Term Repair Plans (Reserve for Repairs)
The Investment Corporation sets aside the following reserve for repairs from cash flows during the fiscal period for thepayment of future major repairs.
(Unit: million yen)
18th
19th
20th
21st
22nd
FiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscal period[From: June 1, 2014
To: Nov. 30, 2014]

Balance of reserve at
beginning of current period
Amount of reserve incurrent period
Reversal of reserve incurrent period
Amount carried forward to
next period[From: Dec. 1, 2014
To: May 31, 2015][From: June 1, 2015
To: Nov. 30, 2015][From: Dec. 1, 2015
To: May 31, 2016][From: June 1, 2016
To: Nov. 30, 2016]

1,021

1,199

2,742

1,060

1,843

764

1,678

－

1,255

524

586

135

1,682

472

324

1,199

2,742

1,060

1,843

2,043

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period

5.2.4. Summary of Estimated Price at End of Period (As of November 30, 2016)
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
Daiwa Onarimon
Shinjuku Maynds Tower (Note 4)
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
Azabu Green Terrace
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Concept Aoyama
Shinsen Place
Glass City Shibuya
River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Nikko Building
Kirin Nihonbashi Building
Heiwa Higashi-nihonbashi Building
Square Daikanyama Building (Note 5)

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

Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)
16,400Discount Terminal
cap rate
rate
(%)
(%)

16,70017,000

3.7

3.5

3.9

3,500

3,530

3.6

3,470

3.4

3.8

7,670

7,760

4.1

7,630

3.9

4.3

4,410

4,450

4.0

4,360

3.8

4.2

3,340

3,400

4.6

3,280

4.4

4.8

3,380

3,430

3.9

3,360

3.7

4.1

2,320

2,340

3.9

2,300

3.7

4.1

2,960

3,030

3.8

2,930

3.6

4.0

2,730

2,760

4.1

2,710

3.9

4.3

2,470

2,520

4.2

2,420

4.0

4.4

1,650

1,670

4.4

1,640

4.4

4.6

1,430

1,400

4.3

1,440

4.3

4.5

9,230

9,430

4.3

9,150

4.0

4.5

2,530

2,580

4.2

2,470

4.0

4.4

1,860

1,890

4.1

1,820

3.9

4.3

3,290

3,360

4.1

3,210

3.9

4.3

2,750

2,760

3.8

2,730

3.6

4.0

13,40013,7003.9

13,1003.7

4.1

122,000

145,000

3.4

139,000

3.2

3.6

4,870

4,950

3.9

4,780

3.7

4.1

2,150

2,160

4.4

2,130

4.2

4.6

3,470

3,560

4.1

3,430

4.1

4.3

6,000

6,140

3.7

5,940

3.5

3.9

7,710

7,840

3.5

7,660

3.3

3.7

4,620

4,720

3.5

4,580

3.3

3.7

32,80033,5003.5

32,100

3.3

3.7

2,310

2,340

4.1

2,300

3.9

4.3

13,70014,0003.4

13,6003.2

3.6

12,90013,1003.4

12,800

3.2

3.6

8,660

8,820

3.7

8,500

3.5

3.9

15,90016,0004.0

15,800

3.7

4.1

5,380

5,370

3.8

5,390

3.6

4.0

10,20010,500

3.5

10,0003.3

3.7

11,80012,1003.4

11,600

3.2

3.6

6,260

6,340

3.5

6,230

3.4

3.7

17,80017,9003.6

17,7003.3

3.7

30,10030,2004.2

29,900

3.9

4.3

3,210

3,350

3.6

3,150

3.4

3.8

1,800

1,880

3.7

1,760

3.5

3.9

14,80015,4003.5

14,500

3.3

3.7

8,230

8,440

4.0

8,020

3.8

4.1

6,560

6,760

4.0

6,480

3.8

4.2

2,470

2,490

3.6

2,460

3.6

3.8

- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
Summary of Appraisal Report
Property name

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

Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminal
cap rate
rate
(%)
(%)

1,160
1,180
3.9
1,150
3.7
4.1
Shinjuku West Building
3,650
3,700
4.3
3,630
4.1
4.5
Daiwa Higashi-Ikebukuro
6,010
6,130
4.4
5,890
4.2
4.6
Daiwa Shinagawa North
2,320
2,350
3.9
2,310
3.7
4.1
Daiwa Osaki 3-chome
2,600
2,600
4.7
2,600
4.5
4.9
Daiwa Kamiooka
18,50018,8003.9
18,400
3.7
4.1
Integral Tower
6,410
6,620
3.7
6,320
3.5
3.9
Meguro Place Tower
4,300
4,380
4.1
4,270
3.9
4.3
Ogikubo TM Building
7,660
7,860
4.3
7,580
4.3
4.5
Daiwa Meieki
11,50011,8003.9
11,300
3.7
4.1
Kitahama Grand Building
505,430
535,290517,680
Total(Note 1) “Estimated price at end of period” is the price as of November 30, 2016 stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii Appraisal & Investment
Consulting, Inc. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 2) For Daiwa A Hamamatsucho, the prices are those pertaining to the Investment Corporation’s ownership interest.
(Note 3) Discount rate for Daiwa Tsukijiekimae is the figure after the 3rd fiscal year (4.3% up to the 2nd fiscal year).
(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment Corporation’sownership interest, and the price indicated by the direct capitalization method and price indicated by the DCF method
are the prices pertaining to the entire Property.
(Note 5) Discount rate for Square Daikanyama Building is the figure after the 11th fiscal year (3.7% up to the 10th fiscal year).

- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
5.2.5. Status of Income (Loss), etc. of Individual Properties
The following table lists the status of income (loss), etc. of each property for the 22nd Fiscal Period (from June 1, 2016 toNovember 30, 2016). Income (loss) information is presented in accordance with “3. Financial Statements; 3.7. Notes to
Significant Accounting Policies” outlined earlier.
RegionPrice
information

Five Central Wards of Tokyo

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

14,100

3,050

8,265

4,550

3,190

3.0

0.7

1.8

1.0

0.7

Carrying amount (million yen)

13,231

2,802

8,061

4,456

3,204

Estimated price at end of period(million yen)

16,700

3,500

7,670

4,410

3,340

Number of tenants (Note 1)

Daiwa
Shibaura

Daiwa
Sarugakucho(Note 4)

Daiwa
Ginza

Investment ratio (%)

Daiwa
Ginza Annex

Daiwa
MinamiAoyama

Property name

27

7

52

6

1

Leasable floor area (m2)

8,179.62

2,032.11

9,619.67

2,715.54

3,657.43

Leased floor area (m2)

7,766.44

2,032.11

9,394.66

2,715.54

3,657.43

End of Nov. 2014

92.1

100.0

98.3

100.0

100.0

End of May 2015

91.8

100.0

99.5

100.0

100.0

End of Nov. 2015

93.9

100.0

98.7

100.0

100.0

End of May 2016

93.9

100.0

99.1

84.8

100.0

End of Nov. 2016

94.9

100.0

97.6

100.0

100.0

183

183

183

183

183

395,979

88,749242,624

113,035－

395,979

88,749240,358

113,035

－

－

－

2,266

－

－

268,659

43,934

95,23150,992－

Consignment expenses

20,1205,630

16,59010,764－

Utilities expenses

25,3406,228

17,995

6,866－

Taxes and dues

27,981

9,132

19,582

11,850－Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Reference
information

Non-life insurance expenses

431

100

394

157

－

Repair expenses

21,657

4,769

14,2117,850－

Depreciation (C)70,452

18,073

26,457

13,501－Other lease business expenses

102,675

－

－

－

－

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

127,319

44,814

147,39362,043－

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

197,772

62,887

173,850

75,545

86,152

Capital expenditures (F) (thousand yen)

67,362

6,012

81,782

15,146

8,563

NCF [(E) – (F)] (thousand yen)

130,40956,87592,06860,39877,589

Expense rate (%) [(B) ÷ (A)]

67.85

49.50

39.25

45.11

－

55,915

18,11938,63323,24013,326

346,060

86,510347,210

185,215

171,199

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property nameDaiwa A
Hamamatsucho

Daiwa Jingumae

Daiwa
Shibadaimon

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

2,865

2,800

2,578

2,346

2,080

Daiwa Misakicho Daiwa Shimbashi(Note 4)510

Investment ratio (%)

0.6

0.6

0.6

0.5

0.4

Carrying amount (million yen)

2,818

2,734

2,384

2,174

2,131

Estimated price at end of period(million yen)

3,380

2,320

2,960

2,730

2,470

Number of tenants (Note 1)

12

4

6

1

7

Leasable floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,641.56

Leased floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,633.16

End of Nov. 2014

100.0

100.0

100.0

100.0

99.6

End of May 2015

100.0

100.0

100.0

100.0

99.6

End of Nov. 2015

100.0

100.0

100.0

100.0

99.6

End of May 2016

100.0

100.0

100.0

100.0

88.0

End of Nov. 2016

100.0

100.0

100.0

100.0

99.6

183

183

183

183

183

132,392

71,67585,853－

69,202

132,392

71,67585,853－

69,202

－

－

－

－

－

－

28,898

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Reference
information

75,571

32,241

31,534

Consignment expenses

10,568

4,410

7,255

－

6,674

Utilities expenses

8,746

5,292

6,693

－

6,091

Taxes and dues

8,794

6,365

6,240

－

5,673
128

Non-life insurance expenses

184

85

125

－

Repair expenses

2,799

7,243

1,527

－

2,512

Depreciation (C)15,078

8,835

9,691

－

7,817

Other lease business expenses

29,4007－－－

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

56,821

39,43454,319－40,304

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

71,90048,27064,01164,906

48,121

Capital expenditures (F) (thousand yen)

10,716

42,574

5,399

310

4,100

NCF [(E) – (F)] (thousand yen)

61,183

5,695

58,61164,59644,020

Expense rate (%) [(B) ÷ (A)]

57.08

44.98

36.73

－

41.76

17,345

12,73012,142

10,328

11,283

100,430

117,930

150,927

182,856

169,555

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Nihonbashi
Horidomecho

Daiwa AzabudaiMar. 2006

May 2006

May 2006

1,240

7,840

2,520

1,600

Property name

Daiwa
Tsukijiekimae

Daiwa
Tsukiji

Daiwa
Tsukishima

Acquisition dateJan. 2006

Jan. 2006

Acquisition price (million yen)

1,560

Investment ratio (%)

0.3

0.3

1.7

0.5

0.3

Carrying amount (million yen)

1,328

1,157

7,051

2,477

1,530

Estimated price at end of period(million yen)

1,650

1,430

9,230

2,530

1,860

Number of tenants (Note 1)

6

5

2

8

10

Leasable floor area (m2)2,659.59

1,487.44

8,426.28

2,850.81

1,697.88

Leased floor area (m2)2,659.59

1,487.44

4,784.14

2,850.81

1,697.88

End of Nov. 2014

100.0

100.0

100.0

87.8

100.0

End of May 2015

100.0

89.2

100.0

100.0

100.0

End of Nov. 2015

100.0

89.2

100.0

100.0

100.0

End of May 2016

100.0

89.2

100.0

100.0

100.0

End of Nov. 2016

100.0

100.0

56.7

100.0

100.0

183

183

183

183

183

56,72050,807129,017

82,56153,48956,72047,332129,017

82,56153,489

－

3,474

－

－

－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

29,277

18,814

124,984

32,80422,036

Consignment expenses

4,254

4,794

32,019

5,573

4,627

Utilities expenses

5,950

2,618

11,307

4,993

3,225

Taxes and dues

5,072

3,863

13,666

6,750

4,934

Non-life insurance expenses

101

65

298

136

76

Repair expenses

383

176

11,454

1,143

394

Depreciation (C)13,497

7,297

56,204

14,157

8,778

18

－

34

50

－

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

27,442

31,992

4,033

49,75731,453

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

40,94039,28960,237

63,91540,231Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

105

215

154,929

5,653

2,674

NCF [(E) – (F)] (thousand yen)

40,83539,074(94,692)

58,261

37,557

Expense rate (%) [(B) ÷ (A)]

51.62

37.03

96.87

39.73

41.20

10,113

7,666

27,332

13,192

9,805

120,530

109,848

102,930

234,846

108,280

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa Kojimachi
Shinjuku Maynds
Daiwa Onarimon
4-chomeTower

SHIBUYAEDGE

Property nameDaiwa Kyobashi

Acquisition dateJuly 2006

Oct. 2006

Dec. 2006

July 2007 andNov. 2007

July 2007

Acquisition price (million yen)

3,460

2,910

13,860133,800

5,900

Investment ratio (%)

0.7

0.6

3.0

28.6

1.3

Carrying amount (million yen)

3,282

2,856

13,424

129,961

5,697

Estimated price at end of period(million yen)

3,290

2,750

13,400122,000

4,870

Number of tenants (Note 1)

8

7

7

36

5

Leasable floor area (m2)

3,265.83

2,690.90

11,614.92

45,543.97

2,480.65

Leased floor area (m2)

2,882.69

2,690.90

11,614.92

45,182.00

2,480.65

End of Nov. 2014

100.0

100.0

100.0

94.0

100.0

End of May 2015

100.0

100.0

100.0

98.8

100.0

End of Nov. 2015

100.0

100.0

100.0

96.1

100.0

End of May 2016

100.0

100.0

100.0

98.8

100.0

End of Nov. 2016

88.2

100.0

100.0

99.2

100.0

183

183

183

183

183

93,38392,072

341,4532,514,385

125,017

93,38392,072

341,4532,514,385

125,017

－

－

－

－

－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

46,642

49,133

107,635

1,216,124

37,737

Consignment expenses

6,173

5,949

15,825

156,047

6,529

Utilities expenses

7,396

6,692

23,432

273,1816,991

Taxes and dues

7,134

14,951

34,932

253,764

7,241

Non-life insurance expenses

133

149

413

3,794

108

Repair expenses

5,858

8,907

2,034

135,569

616

Depreciation (C)19,946

12,48330,996386,650

16,250

－

－

－

7,116

－

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

46,74142,938233,818

1,298,260

87,279

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

66,68755,422

264,814

1,684,911

103,529

Capital expenditures (F) (thousand yen)

1,435

3,446

5,771

191,113

4,951

NCF [(E) – (F)] (thousand yen)

65,251

51,976

259,043

1,493,798

98,578

Expense rate (%) [(B) ÷ (A)]

49.95

53.36

31.52

48.37

30.19

14,09629,65969,813501,241

14,474140,200

169,753459,880

4,460,870

62,460

Other lease business expenses

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
NishiShimbashi

Daiwa
Kayabacho
Building(Note 4)

Property name

Daiwa
Kodenmacho

Daiwa Jimbocho

Acquisition dateAug. 2007

Mar. 2010

Aug. 2010

Sept. 2010

Mar. 2011

Acquisition price (million yen)

2,460

4,150

5,000

－

5,600

Daiwa
Kudan (Note 5)

Investment ratio (%)

0.5

0.9

1.1

－

1.2

Carrying amount (million yen)

2,392

4,065

4,813

－

5,342

Estimated price at end of period(million yen)

2,150

3,470

6,000

－

7,710

Number of tenants (Note 1)

8

7

11

－

1

Leasable floor area (m2)2,379.31

3,164.26

4,815.84－

5,899.11

Leased floor area (m2)2,379.31

3,164.26

4,815.84－

5,899.11

End of Nov. 2014

100.0

100.0

100.0

100.0

100.0

End of May 2015

100.0

100.0

96.3

100.0

100.0

End of Nov. 2015

100.0

100.0

100.0

100.0

100.0

End of May 2016

100.0

100.0

100.0

100.0

100.0

End of Nov. 2016

100.0

100.0

100.0

－

100.0

183

183

183

36

183

64,621

105,713

163,966

21,811－64,621

105,713

163,966

21,811

－

－

－

－

－

－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Reference
information

23,29947,14879,181

20,664－

Consignment expenses

4,622

6,105

15,452

1,176－

Utilities expenses

4,730

6,917

10,6591,880－

Taxes and dues

3,646

10,874

15,766

8,988－

Non-life insurance expenses

97

139

238

23

－

Repair expenses

－

1,483

2,925

350

－

Depreciation (C)9,379

21,587

34,136

8,244－

Other lease business expenses

822

40

3

－

－

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

41,32258,56484,785

1,147－

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

50,70180,152

118,921

9,392

148,719

Capital expenditures (F) (thousand yen)

1,190

6,453

1,539

－

1,833

NCF [(E) – (F)] (thousand yen)

49,51173,698117,382

9,392

146,886

Expense rate (%) [(B) ÷ (A)]

36.05

44.60

48.29

94.74

－

7,293

21,45931,228－24,919100,234

128,200

187,580－

125,988

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Nihonbashi
Hongokucho

Property nameDaiwa Jimbocho3-chomeE-SPACETOWER

Acquisition dateMar. 2011

July 2011

May 2012

Dec. 2012 andApr. 2013

Aug. 2013

Acquisition price (million yen)

3,550

24,000

1,721

9,650

9,200

shinyoncurumuDaiwa Akasaka

Investment ratio (%)

0.8

5.1

0.4

2.1

2.0

Carrying amount (million yen)

3,432

23,623

1,628

9,777

9,381

Estimated price at end of period(million yen)

4,620

32,8002,310

13,70012,900

Number of tenants (Note 1)

8

6

6

18

20

Leasable floor area (m2)2,889.34

13,960.87

2,143.08

6,751.31

8,739.17

Leased floor area (m2)2,889.34

13,521.40

2,143.08

6,751.31

8,739.17

End of Nov. 2014

100.0

100.0

100.0

100.0

85.8

End of May 2015

100.0

96.4

100.0

100.0

85.8

End of Nov. 2015

100.0

100.0

100.0

100.0

88.4

End of May 2016

100.0

100.0

100.0

100.0

100.0

End of Nov. 2016

100.0

96.8

100.0

100.0

100.0

183

183

183

183

183

114,455

797,381

63,187

322,419

342,044

114,455

793,932

63,187

322,419

342,044

－

3,448

－

－

－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

48,830261,927

28,672

121,803

136,059

Consignment expenses

8,326

54,2397,460

29,81626,442

Utilities expenses

7,408

49,851

3,217

22,10041,499Taxes and dues

9,374

56,7904,407

33,51333,494Non-life insurance expenses

124

653

74

322

418

Repair expenses

3,816

34,465

339

177

9,802

Depreciation (C)19,78065,855

13,17335,874

24,402

－

72

－

－

－

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

65,625535,453

34,514200,615

205,984

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

85,405

601,308

47,688236,489

230,387

Capital expenditures (F) (thousand yen)

1,255

24,764－

1,878

20,205

NCF [(E) – (F)] (thousand yen)

84,150576,544

47,688234,611

210,182

Expense rate (%) [(B) ÷ (A)]

42.66

32.85

45.38

37.78

39.78

18,715

113,542

8,802

66,956

66,117

82,470574,150

22,401

65,855

430,612

Other lease business expenses

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
RegionProperty nameAcquisition date
Acquisition price (million yen)Price
information

Five Central Wards of Tokyo
Daiwa Shibuya
Miyamasuzaka

Azabu Green
TerraceDaiwa Ebisu

LAQUAS

4-chomeHigashi(Note 4)

Shinjuku

Concept Aoyama

Sept. 2013

Jul. 2014

Dec. 2014

Dec. 2014

Mar. 2015

7,000

14,000

4,135

8,450

9,800

Investment ratio (%)

1.5

3.0

0.9

1.8

2.1

Carrying amount (million yen)

7,244

14,190

4,263

8,578

10,088Estimated price at end of period(million yen)

8,660

15,9005,380

10,20011,800

Number of tenants (Note 1)

8

11

1

4

5

Leasable floor area (m2)

6,327.95

13,234.39

2,885.64

7,498.33

4,421.15

Leased floor area (m2)

6,327.95

13,192.63

2,885.64

7,498.33

4,421.15

End of Nov. 2014

100.0

100.0

－

－

－

End of May 2015

100.0

100.0

0.0

100.0

85.9

End of Nov. 2015

100.0

100.0

100.0

100.0

100.0

End of May 2016

100.0

94.9

100.0

100.0

91.4

End of Nov. 2016

100.0

99.6

100.0

100.0

100.0

183

183

183

183

183

242,942436,169－

227,681265,285

242,942436,169－

227,681

215,785

－

－

－

－

49,500Occupancy rate (%)
Leasing
information

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

Income (loss)
information

99,148

171,408－

81,484

122,317

Consignment expenses

23,40040,911－

11,173

29,102

Utilities expenses

15,55544,123－

16,254

8,395

Taxes and dues

20,00031,815－

20,426

12,736

292

595

－

307

156

Repair expenses

17,038

3,395

－

803

54,028Depreciation (C)22,86150,467－32,292

17,897

－

99

－

226

－

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

143,793

264,761－

146,196

142,967

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

166,654

315,229

113,147

178,489

160,865

Non-life insurance expenses

Other lease business expenses

Reference
information

Capital expenditures (F) (thousand yen)

33,530

1,376

5,283

220

60,872

NCF [(E) – (F)] (thousand yen)

133,124

313,853

107,864

178,269

99,993

Expense rate (%) [(B) ÷ (A)]

40.81

39.30

－

35.79

46.11

39,952

63,176

17,851

40,53325,451

416,816

325,054

115,410

125,440

97,530

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period

RegionFive Central Wards of Tokyo
Glass City

(Note 4)

ShibuyaMar. 2015

May 2015

Jun. 2015

Sep. 2015

Sep. 2015

Acquisition price (million yen)

4,800

16,00028,000

2,871

1,647

Investment ratio (%)
Price
information Carrying amount (million yen)

1.0

3.4

6.0

0.6

0.4

4,907

16,07328,159

2,966

1,736

Estimated price at end of period(million yen)

6,260

17,80030,100

3,210

1,800

1

10

80

9

8

2,811.35

8,566.73

32,063.06

2,622.42

1,723.15

2,811.35

8,566.73

30,512.63

2,622.42

1,723.15

End of Nov. 2014

－

－

－

－

－

End of May 2015

100.0

100.0

－

－

－

End of Nov. 2015

100.0

100.0

95.3

100.0

100.0

End of May 2016

100.0

100.0

98.6

100.0

100.0

End of Nov. 2016

Acquisition date

Number of tenants (Note 1)
2

Leasable floor area (m )2Leased floor area (m )Daiwa Hatchobori

Daiwa

Shinsen Place

Property nameRiver GateekimaeHatchobori
ekimae West

Occupancy rate (%)
Leasing
information

100.0

100.0

95.1

100.0

100.0

Number of days of asset management

183

183

183

183

183

Total property leasing revenue (A) (thousandyen)－

416,414

1,043,216

78,032

45,625

Rent revenue – real estate－

416,414

1,039,686

78,032

45,625

Other lease business revenue

－

－

3,529

－

－

－

111,010515,137

39,83839,799Consignment expenses－

20,936

83,857

7,775

4,286

Utilities expenses－

28,026

126,682

7,445

3,588

Taxes and dues－

27,200105,226

8,999

4,029

Non-life insurance expenses

－

366

1,792

128

66

Repair expenses

－

2,111

40,865

5,479

23,506

Depreciation (C)－32,368

156,711

10,010

4,322

Other lease business expenses

－

－

－

－

－

－

305,404

528,078

38,193

5,825

123,692

337,773684,790

48,204

10,147

4,915

10,592

125,813

1,987

30,758

118,777

327,181558,977

46,217

ሺ20,610)

－

26.66

49.38

51.05

87.23

16,25053,901

201,569

17,811

7,995

112,510202,340

1,970,900

114,190

84,620Total property leasing expenses (B) (thousandyen)

Income (loss)
information

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

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 47 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
SquareKirin Nihonbashi
Heiwa
Daikanyama
Building
Higashi-nihonbash
Building(Note 4)i Building(Note 4)

Shinjuku West
Building

Property name

Nikko Building

Acquisition dateMar. 2016

May 2016

June 2016

June 2016

July 2016

Acquisition price (million yen)

13,710

8,180

6,370

2,280

942

Investment ratio (%)

2.9

1.7

1.4

0.5

0.2

Carrying amount (million yen)

13,970

8,320

6,412

2,371

984

Estimated price at end of period(million yen)

14,800

8,230

6,560

2,470

1,160

Number of tenants (Note 1)

7

1

5

1

7

Leasable floor area (m2)

6,967.61

5,630.17

5,015.88

1,588.35

1,120.58

Leased floor area (m2)

6,924.71

5,630.17

5,015.88

1,588.35

1,120.58

End of Nov. 2014

－

－

－

－

－

End of May 2015

－

－

－

－

－

End of Nov. 2015

－

－

－

－

－

End of May 2016

99.3

100.0

－

－

－

End of Nov. 2016

99.3

100.0

100.0

100.0

100.0

183

183

183

155

133

311,095－

165,841－

26,862311,095－

165,841－

26,716

－

－

－

－

145

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

55,802－

43,125－

6,066

Consignment expenses

15,130

－

7,825

－

2,650

Utilities expenses

20,614

－

9,942

－

1,578

72

－

3

－

8
30

Taxes and dues
Non-life insurance expenses

306

－

208

－

Repair expenses

2,253

－

10

－

－

Depreciation (C)17,424－25,061

－

1,788

0

－

72

－

9

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

255,293－

122,716－

20,795

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

272,717

175,410

147,778

43,002

22,584

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

4,269

1,015

515

－

－

NCF [(E) – (F)] (thousand yen)

268,448

174,395

147,263

43,002

22,584

Expense rate (%) [(B) ÷ (A)]

17.94

－

26.00

－

22.58

－

－

－

－

－

284,170

216,720

158,880

45,044

79,330

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 48 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period

Price
information

RegionGreater Tokyo

Property name

Daiwa
Higashi-Ikebukuro

Acquisition date

Oct. 2005

July 2007

Sept. 2012

Mar. 2013

May 2014

Acquisition price (million yen)

2,958

7,710

1,650

2,000

15,220Daiwa
ShinagawaNorth

Daiwa Osaki
3-chomeDaiwa
Kamiooka

Integral Tower

Investment ratio (%)

0.6

1.6

0.4

0.4

3.3

Carrying amount (million yen)

2,712

7,238

1,639

1,966

15,027

Estimated price at end of period(million yen)

3,650

6,010

2,320

2,600

18,500

Number of tenants (Note 1)

7

14

5

8

9

Leasable floor area (m2)

4,461.47

6,548.17

1,786.06

2,630.30

17,778.14

Leased floor area (m2)

4,461.47

6,548.17

1,786.06

2,465.71

17,778.14

End of Nov. 2014

100.0

100.0

100.0

85.4

99.5

End of May 2015

100.0

90.0

100.0

100.0

99.5

End of Nov. 2015

100.0

100.0

100.0

100.0

99.5

End of May 2016

100.0

100.0

78.9

89.8

99.5

End of Nov. 2016

100.0

100.0

100.0

93.7

100.0

183

183

183

183

183

121,229

196,667

52,347

82,673574,331

121,229

196,667

52,347

82,673574,331

－

－

－

－

－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

55,46185,65324,21139,304

275,940

Consignment expenses

11,15215,011

6,050

6,437

56,014

Utilities expenses

11,622

15,472

2,681

6,602

68,113

Taxes and dues

8,598

18,374

3,935

6,333

44,329Non-life insurance expenses

220

339

68

117

868

Repair expenses

819

2,404

98

1,893

12,661

Depreciation (C)23,04834,05011,377

17,92093,773

－

－

－

－

180

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

65,768111,014

28,13643,368298,390

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

88,817145,064

39,513

61,288392,163

Capital expenditures (F) (thousand yen)

8,312

4,255

888

8,173

7,786

NCF [(E) – (F)] (thousand yen)

80,504140,80938,625

53,114384,377

Expense rate (%) [(B) ÷ (A)]

45.75

43.55

46.25

47.54

48.05

17,12035,647

7,870

12,666

88,260228,260

331,160

37,912

24,782

834,324

Other lease business expenses

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses (thousandyen) (Note 2)- 49 -

Daiwa Office Investment Corporation (8976) Financial Report for the 22nd Fiscal Period
RegionGreater Tokyo

Property name

Meguro Place
Tower

Ogikubo TM
Building

Daiwa Meieki

Kitahama Grand
Building

May 2015

July 2016

Feb. 2013

Aug. 2014

Acquisition price (million yen)

5,600

3,800

5,300

9,481

Acquisition date

Price
information

Major Regional Cities

Investment ratio (%)

1.2

0.8

1.1

2.0

Carrying amount (million yen)

5,595

3,947

5,288

9,416

Estimated price at end of period(million yen)

6,410

4,300

7,660

11,500

Number of tenants (Note 1)

14

11

24

6

Leasable floor area (m2)

3,519.50

3,849.63

7,461.90

13,517.62

Leased floor area (m2)

3,382.93

3,849.63

7,461.90

13,517.62

End of Nov. 2014

－

－

100.0

100.0

End of May 2015

100.0

－

98.5

100.0

End of Nov. 2015

100.0

－

100.0

100.0

End of May 2016

100.0

－

100.0

100.0

End of Nov. 2016

96.1

100.0

100.0

100.0

183

133

183

183

146,476

90,039248,690347,799

Rent revenue – real estate

145,22490,039248,690347,799

Other lease business revenue

1,251

－

－

－

Occupancy rate (%)
Leasing
information

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

Total property leasing expenses (B) (thousandyen)

Income (loss)
information

57,03920,544

98,199147,284

Consignment expenses

9,192

7,703

26,08425,260Utilities expenses

9,477

3,753

16,32434,575

Taxes and dues

13,576

8

20,291

32,864Non-life insurance expenses

172

105

380

578

Repair expenses

2,023

485

－

689

Depreciation (C)22,597

8,487

35,11753,219

－

－

－

96

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

89,43669,495150,491

200,514

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

112,034

77,982

185,609

253,733

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

1,798

105

7,989

1,018

NCF [(E) – (F)] (thousand yen)

110,235

77,877

177,620

252,715

Expense rate (%) [(B) ÷ (A)]

38.94

22.82

39.49

42.35

26,776－

40,58165,728110,053

161,340

170,803

264,054

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses (thousandyen) (Note 2)(Note 1) Number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, the concerned tenant iscounted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimated to arise over the
12-year period from the 1st year to the 12th year as stated in the building investigation diagnosis report.
(Note 3) Estimated long-term repair expenses of “Daiwa Kayabacho Building” are the total amount of repair expenses and renewal
expenses estimated to arise over the 10-year period from the 1st year to the 10th year as stated in the building investigation
diagnosis report.
(Note 4) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc. for the property.
(Note 5) Daiwa Kudan was divested on July 7, 2016.

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