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 24th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:

Daiwa Office Investment Corporation
8976
Yoshimi Murakami, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Akira Yamanouchi, President and Representative Director
Kentaro Azumi, Manager of Corporate Division

January 18, 2018
Stock Exchange Listing: TSE
URL: http://www.daiwa-office.co.jp

TEL: +81-3-6215-9649

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, 2018
February 15, 2018

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

Operating revenue
24thPeriod23rd
PeriodOperating income

Ordinary income

Net income¥12,735 million

1.5%¥6,177 million

0.7%¥5,456 million

1.8%¥5,455 million

1.8%¥12,547 million(2.4%)¥6,133 million(0.2%)¥5,360 million

0.7%¥5,359 million

0.7%

Net income
per unit
24th
Period23rd
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥10,957

2.1%

1.1%

42.8%

¥10,764

2.1%

1.1%

42.7%

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

24thPeriod23rd
PeriodTotal distribution amount(excluding distribution
amount in excess of earnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Distribution
amount to
net assets

Dividend
payout¥10,957¥5,455 million¥0¥– million

100.0%

2.1%¥10,764¥5,359 million¥0¥– million

100.0%

2.1%(3) Financial Position
Total assets
24th
Period23rd
PeriodUnitholders’ equity tototal assets

Net assets

Net assets
per unit¥483,173 million¥256,796 million

53.1%¥515,790¥483,730 million¥256,560 million

53.0%¥515,317-1-

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
24th
Period23rd
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥6,572 million(¥5,233 million)(¥5,358 million)¥15,958 million¥7,510 million(¥2,875 million)(¥5,324 million)¥19,978 million

2. Management Status Forecasts for the 25th Fiscal Period and 26th Fiscal Period
25th Fiscal Period: Fiscal period ending May 2018 (from December 1, 2017 to May 31, 2018)
26th Fiscal Period: Fiscal period ending November 2018 (from June 1, 2018 to November 30, 2018)[% figures show the period-over-period increase (decrease)]

Operating revenue
25thPeriod26th
PeriodOperating income

Net income¥13,365 million

4.9%¥6,589 million

6.7%¥5,863 million

7.5%¥5,861 million

7.4%¥12,803 million(4.2%) ¥6,306 million(4.3%)¥5,678 million(3.2%)¥5,676 million(3.2%)

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

25thPeriod26th
PeriodOrdinary income

Distribution amount in excess of earnings per unit

¥11,000¥0¥11,400¥0(Reference) Estimated net income per unit for the 25th Fiscal Period: ¥11,772; 26th Fiscal Period: ¥11,400(Note) Distribution amount per unit for the 25th Fiscal Period is calculated based on the assumption that the amount for reserve for reduction
entry (384 million yen) deducted from net income will be distributed.

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):
24th Fiscal Period: 497,869 units
23rd Fiscal Period:(ii) Total number of treasury units at end of period:
24th Fiscal Period:– units
23rd Fiscal Period:

497,869 units– units(Note) Please refer to “Notes to Per Unit Information” on page 29 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 and involve
uncertainties. Accordingly, the actual operating revenue, operating income, ordinary income, net income and distribution amount per unit mayvary due to changes in the status. In addition, the forecast is not a guarantee of the distribution amount. For details on the assumptions underlying
the forecast figures above, please refer to “Assumptions for the Management Status Forecasts for the 25th Fiscal Period and 26th Fiscal Period” onpage 10.

-2-

Daiwa Office Investment Corporation (8976) Financial Report for the 24th 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
in the most recent periodic securities report (yuka shoken hokokusho) (submitted on August 24, 2017).

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 August24, 2017) 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 andInvestment Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate AssetManagement Co., Ltd. (former name K.K. daVinci Select) (the “Asset Manager”) as the organizer. After its
establishment, the Investment Corporation implemented an additional issuance of investment units through a public
offering (99,600 units) on October 18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE) Real Estate
Investment Trust Section (stock code: 8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price), subsequent
activities, such as additional acquisition of properties and replacement of portfolio properties, resulted in the assets
under management amounting to 469,341 million yen as of the last day of November 2017.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets based ona clear portfolio development policy of specializing in investment in office buildings, with a particular focus on
investment in a total floor area of more than about 2,000 m2 situated in downtown Tokyo, as well as throughdedicated efforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment (from June 2017 to November 2017)
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 2017 at an annual rate of 2.5%, recording a
positive figure for seven consecutive quarters under the ongoing quantitative/qualitative monetary easing policy by
the Bank of Japan.
In the office building leasing market in central Tokyo, with new supply having settled down, the vacancy rate tooka turn after peaking in June 2013, dropping to 3.03% at the end of November 2017. Led by improvement in thevacancy rate for existing large buildings, the overall vacancy rate that includes small- to medium-sized buildings also
continues to be on an improving trend. The drop in the vacancy rate has led to an increase in office rent in some areas,
and the market as a whole continues to see increase in rent, albeit slight.
For the office building transaction market, a strong appetite for property acquisitions continued among real estatecompanies, funds (including J-REITs) and overseas investors with the continuing proactive lending attitude byfinancial institutions.
b. Management Performance
In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sale from properties) overthe medium to long term, the Investment Corporation continued to work on “external growth,” which aims to boost
revenue through acquisition of properties, and “internal growth,” which aims to maximize income generating from
owned properties.
Concerning external growth, the Investment Corporation acquired Godo kaisha Yokohama Office Management
Silent Partnership Equity Interest (acquisition price: 3,920 million yen (10% of total investment amount in the silent
partnership)). The silent partnership was set up to manage 75% quasi co-ownership in trust beneficial interest in
domestic real estate (CONCURRED Yokohama) as an asset in trust. With this acquisition, the Investment
Corporation acquired preferential negotiation rights pertaining to the acquisition of the quasi co-ownership interest.
As a result, the Investment Corporation’s assets under management as of the end of the 24th Fiscal Period (November
30, 2017) totaled 54 properties (sum total of acquisition prices: 469,341 million yen, excluding silent partnership
equity interest) and one silent partnership equity interest (3,920 million yen).
Concerning internal growth, while the office leasing market remained strong, the Investment Corporation
conducted proactive leasing, such as capturing needs for floor expansion within the same property throughstrengthening relationships with existing tenants and reinforcing collaboration with leasing brokers and property
managers. Consequently, the occupancy rate as of the end of the 24th Fiscal Period (November 30, 2017) was 98.2%.

-3-

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
C. Overview of Capital Procurementa. Procurement of Capital for Repayment of Borrowings
In the 24th Fiscal Period, the Investment Corporation made the following borrowings to fund the repayment ofborrowings that were due for repayment.
・A total amount of 6,050 million yen was borrowed from Development Bank of Japan Inc., Sumitomo Mitsui
Banking Corporation and Mizuho Bank, Ltd. on August 31, 2017 to fund the repayment of the same amountborrowed from Development Bank of Japan Inc., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd. and
The Hiroshima Bank, Ltd. due the same day.
・A total amount of 5,500 million yen was borrowed from Shinsei Bank, Limited., Development Bank of Japan Inc.,
Tokio Marine & Nichido Fire Insurance Co., Ltd. and The Yamaguchi Bank, Ltd. on November 30, 2017 to fundthe repayment of the same amount borrowed from the respective banks due the same day.
b. Status of Interest-Bearing Liabilities at End of the Fiscal Period under Review
As a result of the above, the balance of interest-bearing liabilities outstanding as of the end of the 24th Fiscal Period(November 30, 2017) stood at 204,300 million yen in total (short-term loans payable: 2,000 million yen; long-termloans payable: 197,200 million yen; investment corporation bonds: 5,100 million yen). The balance of the current
portion of long-term loans payable stood at 17,350 million yen.
The average remaining period of interest-bearing liabilities as of the end of the 24th Fiscal Period stands at 4.2
years.
List of Borrowings in the 24th Fiscal Period
LenderSumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Development Bank of Japan Inc.
The Yamaguchi Bank, Ltd.
Shinsei Bank, Ltd.

Loan amount(million yen)
1,000
2,550
1,500
1,000
1,000
2,000
500
2,000

Drawdown
date
2017/8/31
2017/8/31
2017/8/31
2017/8/31
2017/11/30
2017/11/30
2017/11/30
2017/11/30

Repayment
date
2018/8/31
2025/5/30
2026/8/31
2026/8/31
2022/11/30
2025/5/30
2025/11/28
2026/5/29

Balance of Borrowings from Each Financial Institution (as of November 30, 2017)
End of the 24th Fiscal Period
Lender(million yen)
Sumitomo Mitsui Banking Corporation
42,400Sumitomo 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
Mizuho Trust and Banking Co., Ltd.
6,000
The Bank of Fukuoka, Ltd.
5,500
Kansai Urban Banking Corporation
5,000
Aozora Bank, Ltd.
3,000
The Nishi-Nippon City Bank Limited
3,000
ORIX Bank Corporation
2,500
The Gunma Bank, Ltd.
2,500
The 77 Bank, Ltd.
2,000
The Musashino Bank, Ltd.
2,000
Tokio Marine & Nichido Fire Insurance Co., Ltd.
2,000
The Yamaguchi Bank, Ltd.
2,000
The Higashi-Nippon Bank, Limited
1,500
Nippon Life Insurance Company
1,300
The Kagawa Bank, Ltd.
1,000
Taiyo Life Insurance Company
300
Fukoku Mutual Life Insurance Company
200
Total
199,200-4-

Loanperiod
1.0 year
7.8 years
9.0 years
9.0 year
5.0 years
7.5 years
8.0 years
8.5 years

Share (%)
(Note)
21.29
12.47
10.92
9.74
8.03
7.03
6.28
4.27
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
0.15
0.10
100.00Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period(Note)

Share is rounded to two decimal places.

c. Rating Information (as of November 30, 2017)
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 24th
Fiscal Period of 12,735 million yen in operating revenue, 6,177 million yen in operating income, 5,456 million yen in
ordinary income and 5,455 million yen in net income.
Concerning distributions, it is planned that the amount equivalent to distributions from earnings would be includedin the amount of tax-deductible expenses based on application of special provisions for taxation of corporation tax(Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957; including amendments
thereto) (the “Special Taxation Measures Act”)). Accordingly, the Investment Corporation decided to distributealmost the entire amount of unappropriated retained earnings (excluding fractions of the distribution amount per unitthat are less than 1 yen), and declared a distribution amount per unit of 10,957 yen.

-5-

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period(2) Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy going forward is expected to continue expansion through solid trends in personal spending
against the backdrop of a favorable employment environment and the improved income environment while themonetary easing policy implemented by Bank of Japan continues. However, the degree of growth is forecasted to bemoderate. In addition, factors such as policies set out by the U.S. President Donald Trump, the downward swing of
the Chinese economy, upsets in emerging markets accompanying the U.S. “exit strategy” from the monetary easing
policy and “risk off” due to geopolitical risks and political risks, 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, factors such as improvement in employment are stimulating demand,
resulting in the vacancy rate dropping. Improvement in corporate performance is forecasted to increase demand for
office floor space and rent is expected to continue rising as a consequence. In the office building transaction market,
backed by the favorable financing environment, among other factors, the property acquisition appetite among
investors overseas, real estate companies and funds (including J-REITs) is thought to remain strong.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Despite such strong office leasing market conditions, the tenant side is becoming more heavily selective withproperties considering operational aspects such as security systems, efforts on environmental consideration andoperations/management in addition to location and building specifications. Consequently, the Investment
Corporation will carry out operational management under the following policy with an aim to enhance thecompetitiveness of existing properties and thereby increase the long-term EPS over the medium to long term.
(i) Maintain and raise occupancy rates
Concerning existing tenants, strive to reduce cancellation risks by improving the quality of buildings,
equipment and management system. In addition, concerning new tenants, strive to maintain and raiseoccupancy rates through the provision of highly satisfactory services from gaining deeper understanding of
tenant needs through proactive participation in the market.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium to long term through further strengthening good relationships
with existing tenants, as well as proactively tapping the needs of new tenants by discerning the market
environment.
(iii) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of high tenantsatisfaction levels by implementing efficient operational management and reviewing systematic construction
work by optimally leveraging the economies of scale achieved from proactively realizing external growth.
b. Strategy for New Property Investments
The Investment Corporation will invest in office buildings that have a total floor area of about 2,000 m2 or more
based on various external growth strategies, while maintaining a balance with the asset acquisition environment andfinancing situation. In principle, considerations will focus on Tokyo as the investment target area, but the Investment
Corporation will also consider investing in competitive properties in cities other than Tokyo from a viewpoint ofterritorially-distributed investments.
As pipeline support, in addition to expanding its own information-sourcing channels, the Investment Corporation
will continue to search for properties that meet its investment criteria by proactively gathering real estate transaction
market information through greater collaboration with the Asset Manager and Sponsor Group and utilizing theGroup’s extensive network of clients, partners, etc.
Furthermore, in the 24th Fiscal Period, the Investment Corporation acquired Godo kaisha Yokohama Office
Management Silent Partnership Equity Interest (acquisition price: 3,290 million yen (10% of total investment
amount in the silent partnership)). The silent partnership was set up to manage 75% quasi co-ownership in trust
beneficial interest in domestic real estate (CONCURRED Yokohama) as an asset in trust. With this acquisition, theInvestment Corporation acquired preferential negotiation rights pertaining to the acquisition of the quasi
co-ownership interest.
The Investment Corporation will continue to strive to acquire properties in line with the investment strategy
described above.
c. Financial Strategy
The Investment Corporation will conduct disciplined financial management of the following basic content.
(i) Control leverage by keeping the ratio of interest-bearing liabilities to total assets (LTV) within the range of
40% to 50% at maximum, taking into consideration also the LTV, etc. based on appraisal value, as a principle.
(ii) Diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing liabilities
that shall become due during any single fiscal period as a principle.
(iii) Aim to have long-term loans account for at least 70% of balance of loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.
(v) Pursuant to its fund management rules, maintain stability in its financial standing by managing necessary funds,
such as the amount equivalent to distributions paid, separately from working capital.

-6-

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
C. Significant Subsequent Eventsa. Acquisition of Assets(i) The Investment Corporation acquired trust beneficial interest in real estate on January 11, 2018 as follows.
Summary of Asset Acquired
Property name

CONCURRED Yokohama (Note 1)

Type of asset

Trust beneficial interest in domestic real estate (Note 2)

Location

3-1 Kinkocho, Kanagawa-ku, Yokohama City, Kanagawa

Acquisition Price

38,100 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 19, 2017

Date of delivery

January 11, 2018

SellerGodo kaisha Yokohama Office Management(Note 1)The Investment Corporation held preferential negotiation rights pertaining to trust beneficial interest inreal estate owned by Godo kaisha Yokohama Office Management and acquired the trust beneficial
interest in real estate as a result of negotiation for acquisition.
The Investment Corporation acquired 75% quasi co-ownership in trust beneficial interest in the above
real estate as a primary asset in trust.

(Note 2)(ii) The Investment Corporation acquired a trust beneficial interest in real estate on January 12, 2018 as follows.
Summary of Asset Acquired
Property name

Nippon Manpower Building

Type of asset

Trust beneficial interest in domestic real estate

Location47-1 Kanda-Higashi Matsushitacho, Chiyoda-ku, Tokyo

Acquisition Price

4,200 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 19, 2017

Date of delivery

January 12, 2018

SellerNot disclosed (Note)(Note)

Seller is a domestic corporation which has not agreed to disclose its name.

b. Transfer of Assets(i) The Investment Corporation transferred trust beneficial interest in real estate on December 20, 2017 as follows.
Summary of Asset Transferred
Property nameDaiwa Meieki Building

Type of asset

Trust beneficial interest in domestic real estate

Sales price8,300 million yen(excluding settlement money for fixed property tax and city planning tax
as well as consumption tax and local consumption tax)

Date of conclusion of sales agreement

December 19, 2017

Date of transfer

January 12, 2018

Buyer

Not disclosed (Note)(Note)

Buyer is a domestic corporation which has not agreed to disclose its name.

-7-Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period(ii) The Investment Corporation determined on December 19, 2017 to transfer trust beneficial interest in realestates as follows.
Summary of Asset to be Transferred
Property nameShinjuku Maynds Tower (3/7 of co-ownership interest) (Note)

Type of asset

Trust beneficial interest in domestic real estate

Sales price (scheduled)

62,500 million yen(excluding settlement money for fixed property tax and city planning tax
as well as consumption tax and local consumption tax)

Date of conclusion of sales agreement

December 19, 2017

Date of transfer (scheduled)February 28, 2018

Buyer

MAY Tokutei Mokuteki Kaisha(Note)The Investment Corporation holds 6/7 of co-ownership interest in Shinjuku Maynds Tower. Therefore,co-ownership interest in the property is scheduled to be 3/7 following the transfer of the asset to betransferred (3/7 of co-ownership interest).

c. Borrowing of Funds(i) The Investment Corporation borrowed funds on January 11, 2018 as below. The funds were borrowed toprovide for the acquisition of the new property listed above in “a. Acquisition of Assets (i)” etc.
Detail of Borrowings
LenderLoan
Amount(million yen)

Sumitomo Mitsui Banking Corporation

12,000Sumitomo Mitsui Trust Bank, Limited

9,000

Mizuho Bank, Ltd.

9,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

9,000

(Note)

Interest Rate

Borrowing/
Borrowing
Repayment
Repayment
Date
Date
MethodJBA 1 month
Japanese Yen
TIBOR+0.25%(Note)

Unsecured
January 11, Repayment
2018
in lumpsum

May 31,
2018

Interest payments shall be made at the end of every month and the maturity date (If any such date is not abusiness day, the immediately following business day; and if such date falls within the next month, thepreceding last business day of the month). Interest rate is calculated based on the JBA 1 month Japanese
Yen TIBOR which Japanese Bankers Association announces two business days prior to the first day of theapplicable calculation period.

-8-Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 25th Fiscal Period (fiscal period
ending May 2018 (from December 1, 2017 to May 31, 2018)). For the assumptions underlying the management status
forecasts, please refer to the “Assumptions for the Management Status Forecasts for the 25th Fiscal Period and 26th
Fiscal Period” on page 10.
25th Fiscal Period (fiscal period ending May 2018 (from December 1, 2017 to May 31, 2018))
Operating revenue
13,365 million yen
Operating income
6,589 million yen
Ordinary income
5,863 million yen
Net income
5,861 million yen
Distribution amount per unit
11,000 yen
Distribution amount in excess of earnings per unit
0 yen
In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 25th Fiscal Period and26th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status forthe 26th Fiscal Period (fiscal period ending November 2018 (from June 1, 2018 to November 30, 2018)).
26th Fiscal Period (fiscal period ending November 2018 (from June 1, 2018 to November 30, 2018))
Operating revenue
12,803 million yen
Operating income
6,306 million yen
Ordinary income
5,678 million yen
Net income
5,676 million yen
Distribution amount per unit
11,400 yen
Distribution amount in excess of earnings per unit
0 yen
(Note) The forecast figures above are the current forecasts calculated based on certain assumptions. Accordingly,
the actual operating revenue, operating income, ordinary income, net income, distribution amount per unit
and distribution amount in excess of earnings per unit may vary due to changes in the status. Moreover, theforecasts set forth herein should not be construed as a guarantee of distribution amounts.

-9-

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
Assumptions for the Management Status Forecasts for the 25th Fiscal Period and 26th Fiscal Period
Item
Assumptions
 25th Fiscal Period: Assets under management are assumed to be the 54 properties owned as ofNovember 30, 2017, plus the two properties acquired in January 2018, minus Daiwa Meieki
Building transferred in December 2017 and 3/7 of co-ownership interest in Shinjuku Maynds
Assets underTower scheduled to be transferred in February 2018, to total 55 properties.
management
 26th Fiscal Period: Assets under management are assumed to be the above 55 properties.
 The actual number of properties may vary due to changes in the assets under management otherthan above.
 Rent revenue from existing properties is calculated based on historical data and taking into accountOperatingvariable factors.
revenue 464 million yen of gain on sale from real estate properties from the transfer of existing properties
and 53 million yen of dividend income are expected in the 25th Fiscal Period.
 Expenses related to rent business, which constitute a major component of operating expenses, arecalculated based on historical data and taking into account variable factors.
 Repair expenses for buildings are recorded as expenses in the amount expected to be necessary in
the respective fiscal period based on the medium to long term repair plan established by the AssetManager.
 Operating income from property leasing (excluding gain on sale from real estate properties) after
deducting expenses related to rent business (including depreciation) is expected to be 7,436
million yen in the 25th Fiscal Period and 7,595 million yen in the 26th Fiscal Period.
Operating Consignment expenses are expected to be 946 million yen in the 25th Fiscal Period and 861
expensesmillion yen in the 26th Fiscal Period.
 Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 1,108 million yen in
the 25th Fiscal Period and 1,046 million yen in the 26th Fiscal Period.
 While, in general, fixed property tax, city planning tax, etc. in the transaction of real estate, etc. are
calculated on a pro rata basis and reimbursed at the time of acquisition with the current owner, but
for the Investment Corporation, the amount equivalent to the reimbursement is included in the costof acquisition and thus it is not recognized as expenses in the period of acquisition of properties.
 Depreciation is expected to be 1,784 million yen in the 25th Fiscal Period and 1,708 million yen in
the 26th Fiscal Period.
Non-operating Insurance income in the 25th Fiscal Period is expected to be 191 million yen.
income Non-operating expenses in the 25th Fiscal Period are expected to be 918 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related
expenses are expected to be 713 million yen, expenses related to the prepayment to be 91 million
Non-operating
yen and insurance-related expenses to be 109 million yen.
expenses Non-operating expenses in the 26th Fiscal Period are expected to be 628 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related
expenses are expected to be 623 million yen.
 The total amount of interest-bearing liabilities is assumed to be 187,300 million yen at the end of
the 25th Fiscal Period and 187,300 million yen at the end of the 26th Fiscal Period
 In the 25th Fiscal Period, a total of 39,000 million yen was newly borrowed on January 11, 2018 tofund the acquisition of “CONCURRED Yokohama” announced on December 19, 2017. It is
assumed that the borrowings will be repaid by the end of the 25th Fiscal Period by using funds
Interest-bearing
obtained from the transfer of “Shinjuku Maynds Tower” announced on December 19, 2017.
liabilities
 It is assumed that scheduled payment or prepayment of part of the borrowings due for repayment
in the 25th Fiscal Period and a total of 17,000 million yen out of borrowings that will reachmaturity in the 26th Fiscal Period onwards will be conducted by the end of the 25th Fiscal Period.
 In the 26th Fiscal Period, it is assumed that the entire amount of borrowings due for repayment in
the period 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, 2017.
investment units
issued and It is assumed that there are no changes to the number of investment units other than stated above
outstanding
until the end of the 26th 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.
 Part of the gain on sale from the transfers of “Daiwa Meieki Building” and “Shinjuku Maynds
Tower (3/7 of co-ownership interest)” expected for the 25th Fiscal Period is assumed to beDistribution amountretained as internal reserves with the application of “Special Provisions for Taxation in the Case of
per unit
Advance Acquisition of Land, etc. in 2009 and 2010” and expected to be retained as reserve for
reduction entry (384 million yen).
 The distribution amount per unit may vary depending on a variety of factors, such as changes in
the assets under management, changes in the rent revenue due to tenant changes and other causes,- 10 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
Item

Assumptions
and incurrence of unforeseen repairs.

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

Other It is assumed that there are no changes to laws and ordinances, the tax system, accounting
standards, listing regulations, the rules of Tokyo Stock Exchange, Inc. and The Investment Trusts
Association, Japan, etc. that will affect the abovementioned forecast figures.
 It is assumed that there will be no major unforeseen changes in general economic trends, realestate market 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, 2017).

- 11 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period

3. Financial Statements
3.1. Balance Sheets

23rd Fiscal Period[As of May 31, 2017]
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts 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
Land in trust
Construction in progress in trust
Total property, plant and equipment*1- 12 -(Unit: thousand yen)
24th Fiscal Period[As of Nov. 30, 2017]18,280,633
1,697,781
145,154371,8452,087
44,307
20,541,810

14,289,857
1,668,622
222,262
344,392
4,896
84,121
16,614,151

3,245,133(1,981,221)
1,263,911
14,344
4,749
9,595
19,953
10,7899,163
12,302,226773
104,660,217
22,145,961
82,514,255
959,436
208,706
750,730
968,629441,667
526,961
242,357
111,213131,144360,772,887
741,404
459,023,054

3,253,750(2,064,500)
1,189,250
14,344(5,220)
9,124
23,975(11,726)
12,24912,302,226
3,619
105,126,884(23,767,949)
81,358,934
970,959(222,278)
748,681998,774(475,578)
523,196257,137(125,831)
131,306
360,772,887
1,519,315
458,570,791*1Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period

23rd Fiscal Period[As of May 31, 2017]
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Investment securities
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- 13 -(Unit: thousand yen)
24th Fiscal Period[As of Nov. 30, 2017]

487
2,398,275
306,884
31,7332,737,381

433
2,398,275
306,884
28,1992,733,792

113,684
1,071,191
159,766
50,507
10,0201,405,169
463,165,605

3,951,142
113,684
1,002,820
92,582
63,861
10,0205,234,111
466,538,695

23,54323,543
483,730,959

20,58920,589483,173,437

1,394,961
1,000,000
19,400,000
457,360
943
336,451
2,040,616
571,466
25,201,798

814,0192,000,000
17,350,000
425,557869
256,957
2,046,248
304,745
23,198,399

5,100,000
178,800,000
16,768,298
504,009796,226
201,968,535
227,170,333

5,100,000
179,850,000
17,140,303
491,739596,906
203,178,949
226,377,349

251,551,759

251,551,759

164,162
164,162
5,359,285
5,523,447
257,075,206

164,162
164,1625,455,377
5,619,540
257,171,299(514,581)(514,581)
256,560,625
483,730,959(375,211)(375,211)
256,796,087
483,173,437*2Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
3.2. Statements of Income

23rd Fiscal Period[From: Dec. 1, 2016
To: May 31, 2017]
Operating revenue
Rent revenue – real estate
Other lease business revenue
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
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)- 14 -(Unit: thousand yen)
24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]*1*1

12,513,018
33,995
12,547,014*1*1

12,718,363
16,863
12,735,226*1

5,151,041
1,034,063
24,10475,571
18,606
7,200
103,258
6,413,845
6,133,168*1

5,279,234
1,048,416
24,124
75,117
18,594
7,200
105,291
6,557,9786,177,247

140
603
6,548
7,292

91
479
1,589
2,160

587,969
16,892
170,990
4,433
780,286
5,360,175
5,360,175
964
(6)
957
5,359,217
67
5,359,285

548,019
16,707
153,930
4,708
723,366
5,456,041
5,456,041
883
3
887
5,455,154
223
5,455,377

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
3.3. Statements of Unitholders’ Equity
23rd Fiscal Period (from December 1, 2016 to May 31, 2017)(Unit: thousand yen)
Unitholders’ equity
Surplus

Voluntary retained earnings
Unitholders’capital

Total unitholders’equityUnappropriatedretained earnings(undisposed loss)

Total Surplus

5,324,776

5,488,939

257,040,698

Dividends from surplus(5,324,708)(5,324,708)(5,324,708)

Net income

5,359,217

5,359,217

5,359,217

Balance at beginning of current
fiscal period

251,551,759

Reserve for
reduction entry

Total voluntary
retained earnings

164,162

164,162

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

－

－

－

34,50834,50834,508

251,551,759

164,162

164,162

5,359,285

5,523,447

257,075,206

the period
Balance at end of current fiscal
periodTotal valuation and translation adjustments

Balance at beginning of current
fiscal period

Deferred gains orlosses on hedges

Total valuation andtranslation
adjustments

Total net assets(523,375)(523,375)

256,517,323

Changes of items during theperiodDividends from surplus(5,324,708)

Net income

5,359,217

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

8,793

8,793

8,793

8,793

8,793

43,301(514,581)(514,581)

256,560,625- 15 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
24th Fiscal Period (from June 1, 2017 to November 30, 2017)(Unit: thousand yen)
Unitholders’ equity
Surplus

Voluntary retained earnings
Unitholders’capital

Total unitholders’equityUnappropriatedretained earnings(undisposed loss)

Total Surplus

5,359,285

5,523,447

257,075,206

Dividends from surplus(5,359,061)(5,359,061)(5,359,061)

Net income

5,455,154

5,455,154

5,455,154

Balance at beginning of current
fiscal period

251,551,759

Reserve for
reduction entry

Total voluntary
retained earnings

164,162

164,162

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

－

－

－

96,092

96,092

96,092

251,551,759

164,162

164,1625,455,377

5,619,540

257,171,299

the period
Balance at end of current fiscal
periodTotal valuation and translation adjustments

Balance at beginning of current
fiscal period

Deferred gains orlosses on hedges

Total valuation andtranslation
adjustments

Total net assets(514,581)(514,581)

256,560,625

Changes of items during theperiodDividends from surplus(5,359,061)

Net income

5,455,154

Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period139,369

139,369

139,369

139,369

139,369

235,462(375,211)(375,211)

256,796,087- 16 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
3.4. Statements of Cash Distributions

Item
I.
II.

Unappropriated retained earnings
Distribution amount[Distribution amount per unit]
Ⅲ. Retained earnings carried forward
Method for calculating distribution amount23rd Fiscal Period[From: Dec. 1, 2016
To: May 31, 2017]
Amount (yen)5,359,285,070
5,359,061,916[10,764]
223,154
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 5,359,061,916
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

- 17 -

24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]
Amount (yen)5,455,377,793
5,455,150,633(10,957)
227,160
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 5,455,150,633
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 24th Fiscal Period
3.5. Statements of Cash Flows

23rd Fiscal Period[From: Dec. 1, 2016
To: May 31, 2017]
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Interest income
Interest expenses(Increase) Decrease in operating accounts receivable(Increase) Decrease in consumption taxes refund receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
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
Purchase of investment securities
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
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
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- 18 -*1(Unit: thousand yen)
24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]

5,360,175
1,772,265
2,938
(140)
604,86180
55,305(2,749)(176,463)
6,759
247,30912,335
2,967
243,585
8,115,711
140(604,769)(852)
7,510,230

5,456,041
1,772,415
2,954
91)
564,727
77,107)－27,453
286,501)
543)
79,493)
5,631
68,370316,146)
7,137,710
91
564,819)956)
6,572,025

68,655
3,126,686－－
936,065
25,619641,475
2,875,133

48,802)
1,562,150)
31,259)3,951,142)
970,585－
610,851)
5,233,620)

1,000,000(1,000,000)
16,700,000
16,700,000
5,324,546(5,324,546)(689,449)
20,667,865
19,978,415

1,000,000－
10,550,000
11,550,000)
5,358,341)
5,358,341)
4,019,936)
19,978,415
15,958,479*1

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
3.6. Notes to the Going Concern
Not applicable.
3.7. Notes to Significant Accounting Policies
Evaluation criteria and method for
Securities
assetsOther securities
Securities without fair value
Moving-average cost method is adopted.
A method to take in the amount equivalent to ownership interest in silent
partnership on a net basis is adopted for silent partnership equity interest.
2.
Accumulated depreciation method(1) Property, plant and equipment (including trust assets)
for noncurrent assets
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as follows:
Buildings
2~64 years
Structures
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.
3.
Accounting policies for
Investment corporation bonds issuance costs
deferred assets
Amortized using the straight-line method over the period up to redemption.
4.
Accounting standards for recording Accounting for fixed property tax, etc.
revenues and expenses
Concerning fixed property tax, city planning tax, depreciated asset tax, etc. forowned real estate in trust, of the tax amount that has been broken down into
installments, the method of accounting for the amount corresponding to theconcerned fiscal period as expenses related to rent business is adopted.
Concerning the amount equivalent to fixed property tax, etc. for the initialfiscal year that shall be borne by the Investment Corporation in correlation withacquisitions of real estate or trust beneficial interest that have real estate as
assets in trust, the amount is not expensed but is rather included in the cost of
acquisition of the concerned real estate property. The amount equivalent to
fixed property tax, etc. that was included in the cost of acquisition of real estate
properties is 188 thousand yen in the 23rd Fiscal Period and 0 yen in the 24th
Fiscal Period.
5.
Hedge accounting approaches(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet the requirements
for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate 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.
6.
Scope of funds in the
The funds (cash and cash equivalents) in the statements of cash flows consist of cash
statements of cash flows
on hand and cash in trust; deposits that can be withdrawn at any time and deposits intrust; and short-term investments with a maturity of 3 months or less from the date ofacquisition, which are readily convertible to cash and bear only an insignificant riskof price fluctuation.
1.

- 19 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
7.

Other significant matters forming
basis for preparation of financial
statements

(1)

(2)

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

- 20 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
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.
23rd Fiscal Period[As of May 31, 2017]
Buildings in trust

24th Fiscal Period[As of November 30, 2017]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
23rd Fiscal Period[As of May 31, 2017]24th Fiscal Period[As of November 30, 2017]

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)
23rd Fiscal Period[From: Dec. 1, 2016
To: May 31, 2017]
A.

B.

C.

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

24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]12,718,363
16,863

12,513,018
33,995
12,547,014

Total property leasing revenue
Property leasing expenses
Consignment expenses
Utilities expenses
Taxes and dues
Non-life insurance expenses
Repair expenses
Depreciation
Other lease business expenses

969,049
1,095,647
1,110,288
14,770267,966
1,768,826
52,684980,112985,941
1,034,433
14,657316,200
1,770,760
48,934

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

12,735,226

5,151,041

5,279,234

7,395,973

7,455,991[Notes to Statements of Unitholders’ Equity]
23rd Fiscal Period[From: Dec. 1, 2016
To: May 31, 2017]
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- 21 -

2,000,000 units
497,869 units

24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]

2,000,000 units
497,869 units

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period[Notes to Statements of Cash Flows]*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the statements of cash flows(Unit: thousand yen)
23rd Fiscal Period
24th Fiscal Period[From: Dec. 1, 2016
[From: June 1, 2017
To: May 31, 2017]
To: Nov. 30, 2017]
Cash and deposits
18,280,633
14,289,857
Cash and deposits in trust
1,697,781
1,668,622
Cash and cash equivalents
19,978,415
15,958,479[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation bonds andissuance of new investment units, etc. for the acquisition and repair of investment properties, the payments ofdividends and the reimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates, anddispersing maturity dates in order to secure financial stability and avoid future fluctuation risk of interest rates.
The Investment Corporation manages surplus funds through deposits and safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks attributable toliabilities of the Investment Corporation.
(b) Contents and risk of financial instruments and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds for theacquisition of investment properties (such as trust beneficial interest in real estate) and the reimbursement of current
debts and bonds. While these debts and bonds are exposed to liquidity risk, the Investment Corporation manages therisk by maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt tototal debt at high levels, and diversifying lenders with particular focus on domestic financial institutions.
Bank borrowings etc. with floating interest rates are exposed to interest rate risk and the risk is controlled by using
derivative instruments (interest rate swap transaction) for some long-term borrowings to avoid interest rate rise and to
fix interest expense.
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount of cash flowof the hedging instruments and the change in aggregated amount of cash flow of the hedged items. Interest rate swaps
that meet the requirements for special accounting are omitted from assessment of the effectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions
established by the basic policy of risk management. Tenant leasehold and security deposits and tenant leasehold andsecurity deposits in trust are exposed to liquidity risk upon tenants moving out and the Investment Corporation
reduces the risk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) and aremanaged by limiting the terms to short durations and establishing credit rating level of counterparties (except forcheckable deposit), etc.
Investment securities are for investments in silent partnerships and are exposed to credit risk of issuers, fluctuation
risk of values, etc., of real estate, etc. and interest rate. However, such risks are controlled by regularly discerning thefinancial status of issuers and values, etc. of real estate, etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instruments with noavailable market price is determined by using price reasonably estimated. As various factors are incorporated into
these calculations, the resulting value may differ if different assumptions are provided. Furthermore, the contractual
amounts of derivative transactions do not represent the market risk involved in these derivative transactions.

- 22 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values and their differences are as follows. Please note that the following table does notinclude those for which discerning of fair value is recognized to be extremely difficult (please refer to (Note 2)).
23rd Fiscal Period [As of May 31, 2017](1) Cash and deposits(2) Cash and deposits in trust
Total assets(3) Short-term loans payable(4) Current portion of long-term loans payable(5) Investment corporation bonds(6) Long-term loans payable
Total liabilities
Derivative transactions (*)

Carrying amount
18,280,633
1,697,781
19,978,415
1,000,000
19,400,000
5,100,000
178,800,000
204,300,000(752,224)(Unit: thousand yen)
Fair value
Difference
18,280,633－
1,697,781－
19,978,415－
1,000,000－
19,422,667
22,667
5,178,750
78,750178,786,894
13,105)204,388,312
88,312(752,224)－

24th Fiscal Period [As of November 30, 2017](Unit: thousand yen)
Carrying amount
Fair value
Difference(1) Cash and deposits
14,289,857
14,289,857－(2) Cash and deposits in trust
1,668,622
1,668,622－
Total assets
15,958,479
15,958,479－(3) Short-term loans payable
2,000,000
2,000,000－(4) Current portion of long-term loans payable
17,350,000
17,364,931
14,931(5) Investment corporation bonds
5,100,000
5,175,450
75,450(6) Long-term loans payable
179,850,000
179,753,467
96,532)
Total liabilities
204,300,000
204,293,849
6,150)
Derivative transactions (*)(548,483)(548,483)－(*) The value of receivables and payables arising from derivatives are indicated at net basis. The amount in parentheses
represents the net liability position.
(Note 1) Methods to estimate fair value of financial instruments and matters concerning derivative transactions.
Assets(1) Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and thus
is stated at that book value.
Liabilities(3) Short-term loans payable; (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 sameas the book value and thus is stated at that book value. Those with fixed interest rates, on the other hand, are based on
the method of calculating by discounting the sum total amount of principal and interest (*) by the reasonably
estimated interest rate in the case that the same type of borrowings is undertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest is handled
together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions] below.)(5) Investment corporation bonds
The fair value of the investment corporation bonds issued by the Investment Corporation is based on the market price.

- 23 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
Derivative transactions
Please refer to [Notes to Derivative transactions] below.
(Note 2) Carrying amount of financial products for which it is extremely difficult to estimate fair value(Unit: thousand yen)
23rd Fiscal Period
24th Fiscal Period[As of May 31, 2017][As of November 30, 2017]－16,768,298
504,009

Investment securities
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust

3,951,142
17,140,303
491,739

Total
17,272,308
21,583,184
Silent partnership equity interest recorded as investment securities are not subject to disclosure of fair value as there isno market price and discerning of the fair value is recognized to be extremely difficult.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lesseesof rental properties are not subject to disclosure of 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 anddifficulty in calculation of the actual deposit period, which is the period from tenants’ move-ins to move-outs.
(Note 3) Redemption schedule for monetary claims due after the settlement of accounts.
23rd Fiscal Period [As of May 31, 2017](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

Over 5 years

Cash and deposits

18,280,633

－

－

－

－

－

Cash and deposits in trust

1,697,781

－

－

－

－

－

19,978,415

－

－

－

－

－

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

14,289,857

–

–

–

–

–

Cash and deposits in trust

1,668,622

–

–

–

–

–

Total

15,958,479

–

–

–

–

–

Total

24th Fiscal Period [As of November 30, 2017](Unit: thousand yen)Over 5 years(Note 4) Amount of repayment of short-term loans payable, current portion of long-term loans payable, long-term loans
payable and investment corporation bonds scheduled to be due after the settlement of accounts.
23rd Fiscal Period [As of May 31, 2017](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

Short-term loans payable

1,000,000

－

－

－

－

－

Current portion of
long-term loans payable

19,400,000

－

－

－

－

－

Investment corporation bonds－－

3,000,000－－

2,100,000

Long-term loans payable－

21,500,000

25,000,000

33,300,000

21,500,000

77,500,000

20,400,000

21,500,000

28,000,000

33,300,000

21,500,000

79,600,000

Total- 24 -

Over 5 years

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
24th Fiscal Period [As of November 30, 2017](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

Short-term loans payable

2,000,000

－

－

－

－

－

Current portion of
long-term loans payable

17,350,000

－

－

－

－

－

Over 5 years

Investment corporation bonds－

3,000,000－－－

2,100,000

Long-term loans payable－

22,000,000

31,600,000

24,200,000

31,600,000

70,450,000

19,350,000

25,000,000

31,600,000

24,200,000

31,600,000

72,550,000

Total[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
23rd Fiscal Period [As of May 31, 2017]
Not applicable.
24th Fiscal Period [As of November 30, 2017]
Not applicable.
(2) Transactions for which hedge accounting is applied
23rd Fiscal Period [As of May 31, 2017]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to theprincipal provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
quoted by partner
112,600,000
110,100,000
752,224)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans－
19,850,000
9,000,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
132,450,000
119,100,000
752,224)24th Fiscal Period [As of November 30, 2017]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to theprincipal provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approachthat fair value
item
over 1 year
Interest rate swap
Principle
Based on priceLong-termtransaction
accounting
quoted by partner
loans
112,600,000
105,100,000
548,483)
Fixed payable
methodfinancial institution
payableFloating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
(*)
－
14,350,000
7,000,000
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
126,950,000
112,100,000
548,483)(*) Since the derivative financial instruments qualifying for the special accounting for interest rate swaps are accounted for as
one transaction together with their hedged item, long-term loans payable, the fair value of these derivatives is included inthat of related long-term loans payable. (Please refer to “Notes to Financial Instruments (2) Matters Concerning Fair Value,etc. of Financial Instruments (Note 1) Liabilities (4) (6)”).

- 25 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period[Notes to Transactions with Related Parties]
23rd Fiscal Period [From: December 1, 2016 To: May 31, 2017]
Not applicable.

24th Fiscal Period [From: June 1, 2017 To: November 30, 2017]
Not applicable.

- 26 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th 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)
23rd Fiscal Period[From: Dec. 1, 2016
To: May 31, 2017]24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]

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

460,321,339

460,986,036

664,697

1,233,019)

460,986,036

459,753,017

518,560,000

527,130,000(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) for rental properties during the 23th Fiscal Period, the amount of increase ismainly attributable to acquisition of Daiwa Kanda Mikuracho Building (1,529 million yen) and the amount ofdecrease is mainly attributable to depreciation (1,770 million yen). The amount of decrease in the 24th Fiscal Period
is mainly attributable to depreciation (1,768 million yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by external real estate appraisers.
The income (loss) for investment and rental properties are as presented in the aforementioned “Notes to Statements ofIncome.”- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th 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
23rd Fiscal Period [From: December 1, 2016 To: May 31, 2017]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment
are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of
90% of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales figure to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
24th Fiscal Period [From: June 1, 2017 To: November 30, 2017]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment
are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of
90% of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales figure to a single external customer
accounts for less than 10% of the operating revenue on statements of income.

- 28 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period[Notes to Per Unit Information]
23rd Fiscal Period
24th Fiscal Period[From: Dec. 1, 2016
[From: June 1, 2017
To: May 31, 2017]
To: Nov. 30, 2017]
Net assets per unit
515,317 yen
515,790 yen
Net income per unit
10,764.31yen
10,957.01yen(Note 1) The net income per unit was calculated by dividing the net income by the daily weighted average number ofinvestment units issued and outstanding. The diluted net income per unit is not stated as there are no diluted
investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
23rd Fiscal Period
24th Fiscal Period[From: Dec. 1, 2016
[From: June 1, 2017
To: May 31, 2017]
To: Nov. 30, 2017]
Net income (thousand yen)
5,359,217
5,455,154
Amounts not attributable to common unitholders (thousand yen)－－
Net income attributable to common investment units (thousand yen)
5,359,217
5,455,154
Average number of investment units during the period (unit)
497,869
497,869[Notes to Significant Subsequent Events]
1. Acquisition of Assets(a) The Investment Corporation acquired trust beneficial interest in real estate on January 11, 2018 as follows.
Summary of Asset Acquired
Property name

CONCURRED Yokohama (Note 1)

Type of asset

Trust beneficial interest in domestic real estate (Note 2)

Location

3-1 Kinkocho, Kanagawa-ku, Yokohama City, Kanagawa

Acquisition Price

38,100 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 19, 2017

Date of delivery

January 11, 2018

SellerGodo kaisha Yokohama Office Management(Note 1)

(Note 2)The Investment Corporation held preferential negotiation rights pertaining to trust beneficial interest inreal estate owned by Godo kaisha Yokohama Office Management and acquired the trust beneficial
interest in real estate as a result of negotiation for acquisition.
The Investment Corporation acquired 75% quasi co-ownership in trust beneficial interest in the above
real estate as a primary asset in trust.

(b) The Investment Corporation acquired trust beneficial interest in real estate on January 12, 2018 as follows.
Summary of Asset Acquired
Property name

Nippon Manpower Building

Type of asset

Trust beneficial interest in domestic real estate

Location47-1 Kanda-Higashi Matsushitacho, Chiyoda-ku, Tokyo

Acquisition Price

4,200 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 19, 2017

Date of delivery

January 12, 2018

SellerNot disclosed (Note)(Note)

Seller is a domestic corporation which has not agreed to disclose its name.

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
2. Transfer of Assets(a) The Investment Corporation transferred trust beneficial interest in real estate on December 20, 2017 as follows.
Summary of Asset Transferred
Property nameDaiwa Meieki Building

Type of asset

Trust beneficial interest in domestic real estate

Sales price8,300 million yen(excluding settlement money for fixed property tax and city planning tax
as well as consumption tax and local consumption tax)

Date of conclusion of sales agreement

December 19, 2017

Date of delivery

January 12, 2018

Buyer

Not disclosed (Note)(Note)

Buyer is a domestic corporation which has not agreed to disclose its name.

(b) The Investment Corporation determined on December 19, 2017 to transfer trust beneficial interest in real estate
as follows.
Summary of Asset to be Transferred
Property nameShinjuku Maynds Tower (3/7 of co-ownership interest) (Note)

Type of asset

Trust beneficial interest in domestic real estate

Sales price (scheduled)

62,500 million yen(excluding settlement money for fixed property tax and city planning tax
as well as consumption tax and local consumption tax)

Date of conclusion of sales agreement

December 19, 2017

Date of delivery (scheduled)February 28, 2018

Buyer

MAY Tokutei Mokuteki Kaisha(Note)The Investment Corporation holds 6/7 of co-ownership interest in Shinjuku Maynds Tower. Therefore,co-ownership interest in the property is scheduled to be 3/7 following the transfer of the asset to betransferred (3/7 of co-ownership interest).

3. Borrowing of Funds(a) The Investment Corporation borrowed funds on January 11, 2018 as below. The funds were borrowed toprovide for the acquisition of the new property listed above in “(1) Acquisition of Assets (a)” etc.
Detail of Borrowings
LenderLoan
Amount(million yen)

Sumitomo Mitsui Banking Corporation

12,000Sumitomo Mitsui Trust Bank, Limited

9,000

Mizuho Bank, Ltd.

9,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

9,000

(Note)

Interest Rate

Borrowing/
Borrowing
Repayment
Repayment
Date
Date
MethodJBA 1 month
Japanese Yen
TIBOR+0.25%(Note)

Unsecured
January 11, Repayment
2018
in lumpsum

May 31,
2018

Interest payments shall be made at the end of every month and the maturity date (If any such date is not abusiness day, the immediately following business day; and if such date falls within the next month, thepreceding last business day of the month). Interest rate is calculated based on the JBA 1 month Japanese
Yen TIBOR which Japanese Bankers Association announces two business days prior to the first day of theapplicable calculation period.

- 30 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
Since no capital increase, etc. were conducted in the 24th Fiscal Period, there is no change to unitholders’ capital, etc.
The overview of capital increase in the most recent 5 years up to the end of the 24th 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 perunit (paid-in price: 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 (paid-in price: 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 perunit (paid-in price: 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 (paid-in price: 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 perunit (paid-in price: 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 (paid-in price: 587,489 yen) to procure funds for repayment of borrowings, etc.

- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
4. Changes in Directors
4.1. Changes in Directors at the Investment Corporation
Not applicable.
4.2. Changes in Directors at the Asset Manager
Not applicable.

- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period

5. Reference Information
5.1. Investment Status
Type of asset

24th Fiscal Period(As of November 30, 2017)
Total amount owned
As a percentage of(million yen) (Note 1)
total assets (%)

Use

RegionOfficeFive Central Wards of Tokyo

15,911

3.3

Five Central Wards of Tokyo

391,433

81.0

Greater Tokyo

37,864

7.8

Major Regional Cities

14,544

3.0

459,753

95.2

Investment securities (Note 2)

3,951

0.8

Deposits and other assets

19,4694.0

483,173100.0[459,753][95.2]

Real estate

Trust beneficial interestin real estate

OfficeTotal

Total amount of assets (Note 3)(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 asset is a silent partnership equity interest operated by Godo kaisha Yokohama Office Management.
(Note 3) The figures in parentheses [ ] under “Total amount of assets” shows the portion of the applicable asset that, in effect,
corresponds to the holding of real estate properties. The amount of construction in progress (including constructionin progress in trust) is not included in the amount of real estate and trust beneficial interest in real estate.
5.2. Investment Assets
5.2.1. Major Investment Securities

Name

Type ofasset

QuantityBook value(thousand yen)
Unit
price

AmountAppraisal value(thousand yen)
(Note 1)
Unit
Amountprice

As apercentage
of total
assets(%)

Notes

Godo kaisha Yokohama Office
Management Silent Partnership
Equity Interest

Equityinterest in
silentpartnership--

3,951,142-

3,951,142

0.8(Note 2)

Total

-

-

-

3,951,142-

3,951,142

0.8-(Note 1) “Appraisal value” indicates the book value.
(Note 2) The asset under management is 75% quasi co-ownership in trust beneficial interest in domestic real estate(CONCURRED Yokohama) as an asset in trust.

- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
5.2.2 Investment Real Estate Properties (As of November 30, 2017)
A. Price and Investment Ratio of Investment Real Estate Properties
RegionFive
CentralWards of
Tokyo
(Note 1)

Property nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho
Daiwa A Hamamatsucho (Note 8)
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho
Daiwa Shimbashi 510
Daiwa Tsukijiekimae
Daiwa Tsukiji
Daiwa Tsukishima
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note 8)
Daiwa SHIBUYA EDGE (Note 9)
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho Building
Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Daiwa Aoyama
Shinsen Place
Glass City Shibuya
Daiwa River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Daiwa Nishi-Shinjuku (Note 9)
Kirin Nihonbashi Building
Daiwa Higashi-nihonbashi
Square Daikanyama Building
Shinjuku West Building
Shin Kanda Mikura-cho Building (Note 9)

Acquisition
Carrying
Type ofprice
amountspecified asset (million yen) (million yen)
(Note 4)(Note 5)
14,10013,134
Real estate
3,050
2,776
8,265
8,040
4,550
4,437
3,190
3,210
2,865
2,791
2,800
2,719
2,578
2,410
2,346
2,163
2,080
2,128
1,560
1,301
1,240
1,144
7,840
6,937
2,520
2,469
1,600
1,515
3,460
3,244
2,910
2,843
13,86013,369133,800
129,391
5,900
5,672
2,460
2,383
4,150
4,024
Trust
5,000
4,767
beneficial
interest in real
5,600
5,287
estate3,550
3,393
24,00023,589
1,721
1,604
9,650
9,706
9,200
9,400
7,000
7,221
14,000
14,114
4,135
4,266
8,450
8,516
9,800
10,051
4,800
4,904
16,00016,01228,00028,113
2,871
2,954
1,647
1,730
13,71013,957
8,180
8,299
6,370
6,363
2,280
2,389
942
983
1,592
1,604

Total for Five Central Wards of Tokyo (45 Properties)

415,622- 34 -

407,344

Estimated price at Investment
end of periodratio(million yen)(%)
(Note 6)(Note 7)
17,200
3.0
3,840
0.6
7,870
1.8
4,640
1.0
3,840
0.7
3,560
0.6
2,460
0.6
3,090
0.5
2,850
0.5
2,530
0.4
1,880
0.3
1,610
0.3
10,100
1.7
2,660
0.5
1,930
0.3
3,490
0.7
2,830
0.6
13,9003.0
125,000
28.5
5,190
1.3
2,260
0.5
3,620
0.9
6,520
1.1
8,160
1.2
4,900
0.8
33,400
5.1
2,470
0.4
15,5002.1
13,700
2.0
8,740
1.5
16,100
3.0
5,950
0.9
10,7001.8
12,400
2.1
6,710
1.0
18,3003.4
30,200
6.0
3,300
0.6
1,850
0.4
15,500
2.9
8,290
1.7
6,780
1.4
2,600
0.5
1,230
0.2
1,710
0.3
461,360

88.6

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period

RegionProperty nameDaiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Greater Daiwa Osaki 3-chome
Daiwa Kamiooka
Tokyo(Note 2) Integral Tower
Daiwa Meguro Square
Daiwa Ogikubo
Total for Greater Tokyo (7 properties)
Major
Daiwa Meieki
Regional
CitiesDaiwa Kitahama(Note 3)
Total for Major Regional Cities (2 properties)
Total (54 properties)

Acquisition
Carrying
Type ofprice
amountspecified asset (million yen) (million yen)
(Note 4)(Note 5)
2,958
2,679
7,710
7,185
Trust
1,650
1,617
beneficial
2,000
1,930
interest in real
15,22014,898
estate
5,600
5,553
3,800
4,001
38,93837,864
Trust
5,300
5,222
beneficial
interest in real
9,481
9,321
estate14,781
14,544
469,341
459,753

Estimated price at Investment
end of periodratio(million yen)(%)
(Note 6)(Note 7)
3,880
0.6
6,170
1.6
2,340
0.4
2,750
0.4
19,700
3.2
6,750
1.2
4,490
0.8
46,080
8.3
7,990

1.1

11,7002.0

19,690527,1303.1
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, Mieand Gifu 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, 2017.
(Note 6) Estimated price at end of period is the price as of November 30, 2017 stated in appraisal reports prepared by realestate appraisers 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 theInvestment 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 theInvestment Corporation’s ownership interest.
(Note 9) The Investment Corporation changed the names of assets under management from Shin Kanda Mikuracho Building
to Daiwa Kanda Mikuracho Building on September 1, 2017, from Nikko Building to Daiwa Nishi-Shinjuku
Building on October 1, 2017, and from SHIBUYA EDGE to Daiwa SHIBUYA EDGE on November 1, 2017. The
same applies hereinafter in this document.

- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
B. 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
Five Central Daiwa Tsukiji
Wards ofTokyo
Daiwa Tsukishima
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note 9)
Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
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
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

8,112.77

7,252.6325

89.3

370,118

Aug. 1972

2,032.11

2,032.11

7

100.0

87,031

Oct. 1987

9,619.67

9,538.13

54

99.1

237,052

Sept. 1990

2,715.54

2,715.546

100.0

131,445

June 1985

3,657.43

3,657.43

2

100.0

(Not
disclosed)

July 1993

3,663.38

3,663.38

12

100.0

134,360

Dec. 1997

2,198.61

2,198.61

4

100.0

64,837

Nov. 1996

2,386.48

2,386.48

6

100.0

86,875

July 1996

2,137.53

2,137.53

1

100.0

(Not
disclosed)

Apr. 1974

2,641.56

2,364.00

6

89.4

79,144Jan. 1996

2,659.59

2,659.59

6

100.0

55,027Jan. 1990

1,487.44

1,487.445

100.0

51,463

July 1996

8,425.69

8,425.69

4

100.0

183,601

Apr. 1993

2,850.81

2,850.818

100.0

84,642

Apr. 1984

1,697.88

1,697.88

10

100.0

56,083Oct. 1974

3,265.83

2,871.69

9

87.9

81,539Oct. 1987

2,695.31

2,695.31

7

100.0

93,504

Apr. 1973

11,614.92

11,614.92

8

100.0

353,113

Sept. 1995

45,543.97

44,014.57

37

96.6

2,566,311

Aug. 2006

2,480.65

2,480.655

100.0

127,518

Mar. 1985

2,379.31

2,379.31

8

100.0

65,113Mar. 1997

3,164.26

3,164.26

7

100.0

107,066

July 1993

4,815.84

4,815.84

11

100.0

174,153

Apr. 2010

5,899.11

5,899.11

1

100.0

(Not
disclosed)- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
StructureandRegionProperty namenumber offloors(Note 1)S
Daiwa Jimbocho 3-chome
9F
S / SRCE SPACE TOWER
B1 / 15F
S
Daiwa Nihonbashi Hongokucho
8F
S / RCshinyon curumu
B2 / 11F
SRC
Daiwa Akasaka
B2 / 7F
S
Daiwa Shibuya Miyamasuzaka
B1 / 12F
S / RC
Daiwa Azabu Terrace
B1 / 6F
SRC
Daiwa Ebisu 4-chome (Note 8)
B1 / 9FS
LAQUAS Higashi Shinjuku
10F
S / RC
Daiwa Aoyama
B1 / 7F
RC
Shinsen Place (Note 8)
B1 / 9FS / SRC
Glass City Shibuya
B1 / 11F
S / SRC /Daiwa River GateRC
B2 / 20FS / SRC
Daiwa Hatchobori ekimae
B1 / 10F
SRC
Daiwa Hatchobori ekimae West
B1 / 9F
SRC / RC /Nikko BuildingS
B2 / 11F
S / SRC
Kirin Nihonbashi Building (Note 8)
7F
S
Daiwa Higashi-nihonbashi Building
7F
S
Square Daikanyama Building (Note 8)
6F
RC
Shinjuku West Building
4F
SRC
Daiwa Kanda Mikura-cho Building
B1 / 7F
Total for Five Central Wards of Tokyo (45 properties)
SRC / S
Daiwa Higashi-Ikebukuro
B1 / 9F
SRC
Daiwa Shinagawa North
B1 / 11F
S / RC
Daiwa Osaki 3-chome
B1 / 6F
Greater
S / SRC
Daiwa Kamiooka
Tokyo
B3 / 7FS / SRC
Integral Tower (Note 10)
B2 / 18FS / SRC
Meguro Place Tower
B2 / 14F
SRC
Daiwa Ogikubo
B1 / 7F
Total for Greater Tokyo (7 properties)
S
Daiwa Meieki
Major
12F
Regional
S / SRC
CitiesDaiwa Kitahama
B1 / 16F
Total for Major Regional Cities (2 properties)
Total (54 properties)

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)

Feb. 2010

2,889.34

2,889.34

8

100.0

90,094Oct. 2002

13,960.87

12,960.31

7

92.8

765,656

May 2010

2,143.08

2,143.08

5

100.0

64,018Jan. 2012

6,751.31

6,720.81

17

99.5

361,496

Sept. 1990

8,739.17

7,993.78

19

91.4

336,091

Dec. 1988

6,329.00

6,329.00

8

100.0

237,913

Sept. 2009

13,234.39

13,192.63

11

99.6

473,068

Dec. 1997

2,885.64

2,885.64

1

100.0

(Not
disclosed)

Aug. 2010

7,498.33

7,498.33

4

100.0

226,954

Nov. 2001

4,426.10

4,426.10

7

100.0

212,474

Sept. 2001

2,811.35

2,811.35

1

100.0

(Not
disclosed)

Feb. 2004

8,566.73

8,566.73

9

100.0

397,641

Feb. 1994

32,055.85

31,452.60

85

98.1

909,946

Feb. 2006

2,622.42

2,622.429

100.0

76,957

Feb. 1996

1,723.15

1,723.15

8

100.0

46,545

Aug. 1991

6,967.61

6,967.617

100.0

324,970

Feb. 1999

5,630.17

5,630.17

1

100.0

(Not
disclosed)

Mar. 2008

5,015.88

5,015.885

100.0

167,565

Mar. 2001

1,588.35

1,588.35

1

100.0

(Not
disclosed)

Mar. 1989

1,120.58

1,120.58

8

100.0

37,990Jan. 1991

1,719.51

1,719.51

7

100.0

24,954

276,824.52

271,260.28

477

97.9

10,771,019

June 1993

4,461.47

4,461.478

100.0

119,909

July 1991

6,548.17

6,548.17

13

100.0

194,598

Sept. 2007

1,786.06

1,786.06

5

100.0

65,526

May 2011

2,630.30

2,630.30

9

100.0

92,232June 1993

17,778.14

17,778.14

9

100.0

604,576

July 2009

3,519.50

3,519.50

16

100.0

152,041

Nov. 1990

3,849.63

3,849.63

11

100.0

124,931

40,573.27

40,573.27

71

100.0

1,353,817

Dec. 2007

7,461.90

7,243.18

25

97.0

254,455

Feb. 2008

13,517.62

13,517.62

7

100.0

339,071

20,979.52
338,377.31

20,760.80
332,594.35

32
580

98.9
98.2

593,526
12,718,363(Note 1) “Structure and number of floors” are the entries in the real estate registry of the building of the applicable
investment real estate property. “S” refers to steel-framed structure, “RC” refers to reinforced concrete structure,“SRC” refers to steel-framed reinforced concrete structure, “B” refers to floors below ground and “F” refers tofloors above ground.

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment realestate property.
(Note 3) “Leasable floor area” represents the floor area of the building of the applicable property that is leasable, notincluding the leasable area of the land (including level parking space), and is the floor area indicated in the lease
contract, etc. as of November 30, 2017.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease agreements, etc. executedwith end-tenants as of November 30, 2017.
(Note 5) “Total number of tenants” is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 6) “Occupancy rate” is the figure arrived at when leased floor area is divided by leasable floor area, rounded down to
one decimal place.
(Note 7) “Rent revenue during current period” is rent income, common area charges income, parking lot income and otherincome generated from the applicable investment real estate property (excluding other lease business revenue)
during the 24th Fiscal Period, rounded down to the nearest thousand yen.
(Note 8) Not shown for such reasons as consent was not obtained from major tenants to disclose the rent revenue during
current period for the properties.
(Note 9) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the common
ownership interest corresponding to six-sevenths of the entire property. Accordingly, leasable floor area and leased
floor area are the floor areas corresponding to six-sevenths of the entire building.
(Note 10) The buildings consist of three registrations. Of these, the details of the major building are shown here.

- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
C. Capital Expenditures for Assets under Managementa. Scheduled Capital Expenditures for the 24th 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)
Integral Tower(Suginami-ku, Tokyo)
Integral Tower(Suginami-ku, Tokyo)

E SPACE TOWER(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

Expected construction amount (million yen)
Scheduled
implementation
Amount paid
Total amount
Total amountperiodduring current period
already paid
From: Nov. 2016
327
327
1,091
To Jun. 2018
From: Mar. 2017
380
277
935
To Apr. 2018
From: Mar. 2017178
To Dec. 2017
From: Feb. 2018160－－
To May 2018
From: Dec. 201770－－
To May 2018

PurposeUpgrading of air-conditioning system
Upgrading of air-conditioning system
Construction of power receiving andtransforming facility
Upgrading of air-conditioning system
Changing lighting in exclusive areas to
LED (green leasing)b. Capital Expenditures during the 24th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the24th Fiscal Period. Capital expenditures for the 24th Fiscal Period amounted to 535 million yen and, when combined withthe 267 million yen in repair expenses charged to the 24th Fiscal Period expenses, totals 803 million yen in construction
work were implemented.
Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Ebisu 4-chome(Shibuya-ku, Tokyo)
Daiwa River Gate
(Chuo-ku, Tokyo)
Other

PurposeConstruction amount paid
(million yen)

PeriodRemodeling of gray water facility
Upgrading of cubicle
Upgrading of air conditioning controller

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

Oct. 2017
Nov. 2017
Jun. 2017
Aug. 2017
Oct. 2017
Nov. 2017

61
39
35
399
535

Total

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)
20th
21st
22nd
23rd
24th
Fiscal Period
Fiscal Period
Fiscal Period
Fiscal Period
Fiscal Period
Fiscal period[From: June 1, 2015
To: Nov. 30, 2015]

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, 2015
To: May 31, 2016][From: June 1, 2016
To: Nov. 30, 2016][From: Dec. 1, 2016
To: May 31, 2017][From: June 1, 2017
To: Nov. 30, 2017]

2,742

1,060

1,843

2,043

1,900

－

1,255

524

84

1,417

1,682

472

324

227

1,478

1,060

1,843

2,043

1,900

1,839

- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
D. Summary of Estimated Price at End of Period (As of November 30, 2017)
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)
Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho Building
Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Daiwa Aoyama
Daiwa Nishi-Shinjuku
Glass City Shibuya
Daiwa River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Nikko Building
Kirin Nihonbashi Building
Daiwa Higashi-nihonbashi Building
Square Daikanyama Building (Note 5)
Shinjuku West Building
Shin Kanda Mikura-cho Building
Daiwa Higashi-Ikebukuro
Daiwa Shinagawa North

Estimated priceat end of period(million yen)
(Note 1)
17,200
3,840
7,870
4,640
3,840
3,560
2,460
3,090
2,850
2,530
1,880
1,610
10,100
2,660
1,930
3,490
2,830
13,900125,000
5,190
2,260
3,620
6,520
8,160
4,900
33,4002,470
15,50013,7008,740
16,1005,950
10,70012,4006,710
18,30030,2003,300
1,850
15,500
8,290
6,780
2,600
1,230
1,710
3,880
6,170

Direct capitalization method
Price(million yen)
17,800
3,870
7,900
4,690
3,900
3,620
2,490
3,160
2,890
2,560
1,890
1,620
10,200
2,710
1,970
3,540
2,840
14,200148,000
5,300
2,270
3,700
6,670
8,280
5,020
34,1002,500
15,80014,0008,900
16,4005,950
11,10012,7006,820
18,40030,3003,440
1,930
16,100
8,450
6,950
2,630
1,240
1,750
3,920
6,240

- 40 -

Cap rate
(%)
3.5
3.4
4.0
3.8
4.4
3.7
3.8
3.6
3.9
4.0
4.2
4.1
4.1
4.0
3.9
3.9
3.7
3.7
3.2
3.7
4.2
3.9
3.5
3.3
3.3
3.4
3.9
3.2
3.2
3.7
3.9
3.7
3.3
3.2
3.3
3.5
4.1
3.5
3.6
3.3
4.0
3.9
3.4
3.7
4.0
4.1
4.2

DCF method
Price(million yen)
16,900
3,810
7,850
4,580
3,770
3,540
2,420
3,060
2,830
2,500
1,880
1,610
10,100
2,600
1,880
3,440
2,810
13,600144,000
5,070
2,240
3,590
6,460
8,110
4,850
32,6002,450
15,30013,6008,580
15,8005,950
10,50012,2006,660
18,10030,0003,240
1,820
15,300
8,120
6,710
2,590
1,220
1,690
3,860
6,100

Discount Terminalrate
cap rate
(%)
(%)
3.3
3.7
3.2
3.6
3.8
4.2
3.6
4.0
4.2
4.6
3.5
3.9
3.6
4.0
3.4
3.8
3.7
4.1
3.8
4.2
4.2
4.4
4.1
4.3
3.8
4.3
3.8
4.2
3.7
4.1
3.7
4.1
3.5
3.9
3.5
3.9
3.0
3.4
3.5
3.9
4.0
4.4
3.9
4.1
3.3
3.7
3.1
3.5
3.1
3.5
3.2
3.6
3.7
4.1
3.0
3.4
3.0
3.4
3.5
3.9
3.7
4.1
3.8
3.9
3.1
3.5
3.0
3.4
3.2
3.5
3.2
3.6
3.8
4.2
3.3
3.7
3.4
3.8
3.1
3.5
3.7
4.1
3.7
4.1
3.4
3.6
3.5
3.9
4.0
4.2
3.9
4.3
4.0
4.4

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
Summary of Appraisal Report
Property name

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

Direct capitalization method

DCF method

Discount Terminalrate
cap rate(%)(%)
Daiwa Osaki 3-chome
2,340
2,370
3.8
2,330
3.6
4.0
Daiwa Kamiooka
2,750
2,760
4.5
2,740
4.3
4.7
Integral Tower
19,70020,0003.7
19,500
3.5
3.9
Daiwa Meguro Square
6,750
6,950
3.5
6,670
3.3
3.7
Daiwa Ogikubo
4,490
4,580
3.9
4,450
3.7
4.1
Daiwa Meieki
7,990
8,120
4.2
7,940
4.0
4.4
Daiwa Kitahama
11,70012,0003.8
11,500
3.6
4.0
Total
527,130
557,490541,020(Note 1) “Estimated price at end of period” is the price as of November 30, 2017 stated in appraisal reports prepared by realestate appraisers 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 theInvestment 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 4th fiscal year (4.1% for the 3rd fiscal year).
(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment
Corporation’s ownership interest, and the price indicated by the direct capitalization method and price indicated by
the DCF method are the prices pertaining to the entire Property.
(Note 5) Discount rate for Square Daikanyama Building is the figure after the 11th fiscal year (3.5% up to the 10th fiscal
year).
Price(million yen)

- 41 -

Cap rate(%)

Price(million yen)

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
E. Status of Income (Loss), etc. of Individual Properties
The following table lists the status of income (loss), etc. of each property for the 24th Fiscal Period (from June 1, 2017 toNovember 30, 2017). Income (loss) information is presented in accordance with “3. Financial Statements; 3.7. Notes to
Significant Accounting Policies” outlined earlier.
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Shibaura

Daiwa
Sarugakucho(Note 4)

Daiwa
Ginza

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

14,100

3,050

8,265

4,550

3,190

Investment ratio (%)

Daiwa
Ginza Annex

Daiwa
MinamiAoyama

Property name

3.0

0.6

1.8

1.0

0.7

Carrying amount (million yen)

13,134

2,776

8,040

4,437

3,210

Estimated price at end of period(million yen)

17,200

3,840

7,870

4,640

3,840

Number of tenants (Note 1)

25

7

54

6

2

Leasable floor area (m2)

8,112.77

2,032.11

9,619.67

2,715.54

3,657.43

Leased floor area (m2)7,252.63

2,032.11

9,538.13

2,715.54

3,657.43

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

End of May 2017

96.9

100.0

90.3

100.0

100.0

End of Nov. 2017

89.3

100.0

99.1

100.0

100.0

183

183

183

183

183

370,118

87,031

238,130

131,445(Not disclosed)

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Reference
information

370,118

87,031

237,052

131,445(Not disclosed)

Other lease business revenue

－

－

1,078

－

(Not disclosed)

Total property leasing expenses (B)(thousand yen)

177,533

38,804

103,820

43,752(Not disclosed)

Consignment expenses

23,307

9,214

25,226

5,853(Not disclosed)

Utilities expenses

26,5186,364

19,311

7,814(Not disclosed)

Taxes and dues

27,9159,106

19,59911,931(Not disclosed)

370

86

339

135

(Not disclosed)

Repair expenses

13,157

3,767

10,501

3,975(Not disclosed)

Depreciation (C)Non-life insurance expenses

74,422

10,264

28,842

14,041(Not disclosed)

Other lease business expenses

11,841－－－(Not disclosed)

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

192,585

48,227

134,30987,693(Not disclosed)

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

267,007

58,492

163,151

101,734

67,383

Capital expenditures (F) (thousand yen)

10,954

1,685

30,743

9,014

280

NCF [(E) – (F)] (thousand yen)

256,052

56,806

132,408

92,72067,103

Expense rate (%) [(B) ÷ (A)]

47.97

44.59

43.60

33.29

(Not disclosed)

55,78518,06738,64523,401

13,316

346,060

86,510347,210

185,215

171,199

Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th 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

0.5

0.5

0.4

Carrying amount (million yen)

2,791

2,719

2,410

2,163

2,128

Estimated price at end of period(million yen)

3,560

2,460

3,090

2,850

2,530

Number of tenants (Note 1)

12

4

6

1

6

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

2,364.00

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

End of May 2017

100.0

100.0

100.0

100.0

99.6

End of Nov. 2017

100.0

100.0

100.0

100.0

89.4

183

183

183

183

183

134,360

64,837

86,875(Not disclosed)

79,144

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

134,360

64,837

86,875(Not disclosed)

79,144

Other lease business revenue

－

－

－

(Not disclosed)－

Total property leasing expenses (B)(thousand yen)

73,13428,26934,420(Not disclosed)

27,002

Consignment expenses

10,338

7,107

7,177

(Not disclosed)

5,028

Utilities expenses

8,694

4,843

6,641

(Not disclosed)

6,415

Taxes and dues

8,775

6,357

6,254

(Not disclosed)

5,665

Non-life insurance expenses

158

73

107

(Not disclosed)

110

Repair expenses

656

675

2,793

(Not disclosed)

1,361

Depreciation (C)15,111

9,204

11,445(Not disclosed)

8,421

Other lease business expenses

29,4007－(Not disclosed)－

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

61,22536,56852,455(Not disclosed)

52,142

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

76,33745,772

63,90063,51460,563

1,063－

Capital expenditures (F) (thousand yen)

Reference
information

－

2,283

733

NCF [(E) – (F)] (thousand yen)

76,33743,48863,16762,45160,563

Expense rate (%) [(B) ÷ (A)]

54.43

43.60

39.62

(Not disclosed)

34.12

17,366

12,714

12,173

10,32911,296

100,430

117,930

150,927

182,856

169,555

Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th 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)

1,301

1,144

6,937

2,469

1,515

Estimated price at end of period(million yen)

1,880

1,610

10,100

2,660

1,930

Number of tenants (Note 1)

6

5

4

8

10

Leasable floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

Leased floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

End of Nov. 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

End of May 2017

100.0

100.0

100.0

100.0

100.0

End of Nov. 2017

Occupancy rate (%)
Leasing
information

100.0

100.0

100.0

100.0

100.0

Number of days of asset management

183

183

183

183

183

Total property leasing revenue (A)(thousand yen)

55,02751,763

183,601

84,64256,083

Rent revenue – real estate

Income (loss)
information

55,02751,463

183,601

84,64256,083

Other lease business revenue

－

300

－

－

－

Total property leasing expenses (B)(thousand yen)

30,353

17,81099,66232,85522,057

Consignment expenses

5,790

3,571

11,370

5,407

4,020

Utilities expenses

6,164

2,764

14,088

5,192

3,421

Taxes and dues

5,066

3,861

13,727

6,720

4,916

Non-life insurance expenses

86

56

257

117

66

Repair expenses

99

198

2,769

700

733

Depreciation (C)13,127

7,359

57,44814,718

8,900

Other lease business expenses

18

－

－

－

－

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

24,67433,952

83,93951,78634,025

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

37,801

41,312

141,387

66,50442,925

Capital expenditures (F) (thousand yen)

Reference
information

122

824

163

9,913

840

NCF [(E) – (F)] (thousand yen)

37,67940,488141,224

56,59142,085

Expense rate (%) [(B) ÷ (A)]

55.16

34.41

54.28

38.82

39.33

10,101

7,663

27,454

13,193

9,813

120,530

109,848

102,930

234,846

108,280

Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
RegionPrice
information

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

Daiwa
SHIBUYAEDGE

Property nameDaiwa Kyobashi

Acquisition dateJul. 2006

Oct. 2006

Dec. 2006

Jul. 2007 andNov. 2007

Jul. 2007

Acquisition price (million yen)

3,460

2,910

13,860133,800

5,900

Investment ratio (%)

0.7

0.6

3.0

28.5

1.3

Carrying amount (million yen)

3,244

2,843

13,369129,391

5,672

Estimated price at end of period(million yen)

3,490

2,830

13,900125,000

5,190

Number of tenants (Note 1)

9

7

8

37

5

Leasable floor area (m2)

3,265.83

2,695.31

11,614.92

45,543.97

2,480.65

Leased floor area (m2)2,871.69

2,695.31

11,614.92

44,014.57

2,480.65

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

End of May 2017

87.9

100.0

100.0

96.6

100.0

End of Nov. 2017

Occupancy rate (%)
Leasing
information

87.9

100.0

100.0

96.6

100.0

Number of days of asset management

183

183

183

183

183

Total property leasing revenue (A)(thousand yen)

81,53993,504353,1132,574,643

127,518

Rent revenue – real estate

Income (loss)
information

81,53993,504353,1132,566,311

127,518

Other lease business revenue

－

－

－

8,331

－

Total property leasing expenses (B)(thousand yen)

41,87542,501

115,579

1,121,334

50,162

Consignment expenses

6,326

6,445

17,434

161,783

6,926

Utilities expenses

7,308

7,692

24,890281,692

7,639

Taxes and dues

7,111

14,94634,925

253,488

7,227

114

127

356

3,242

93

Non-life insurance expenses
Repair expenses

1,018

458

6,685

18,691

11,851

Depreciation (C)19,995

12,832

31,287395,550

16,424

Other lease business expenses

Reference
information

－

－

－

6,885

－

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

39,66451,003

237,534

1,453,308

77,355

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

59,66063,835

268,821

1,848,859

93,780Capital expenditures (F) (thousand yen)

2,649

5,828

5,571

150,948

7,239

NCF [(E) – (F)] (thousand yen)

57,01058,006263,250

1,697,910

86,540

Expense rate (%) [(B) ÷ (A)]

51.36

45.45

32.73

43.55

39.34

14,092

29,64669,800500,692

14,448140,200

169,753459,880

4,460,870

62,460

Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th 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

Mar. 2011

Mar. 2011

Acquisition price (million yen)

2,460

4,150

5,000

5,600

3,550

Daiwa Jimbocho3-chomeInvestment ratio (%)

0.5

0.9

1.1

1.2

0.8

Carrying amount (million yen)

2,383

4,024

4,767

5,287

3,393

Estimated price at end of period(million yen)

2,260

3,620

6,520

8,160

4,900

Number of tenants (Note 1)

8

7

11

1

8

Leasable floor area (m2)2,379.31

3,164.26

4,815.84

5,899.11

2,889.34

Leased floor area (m2)2,379.31

3,164.26

4,815.84

5,899.11

2,889.34

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

100.0

End of May 2017

100.0

100.0

100.0

100.0

100.0

End of Nov. 2017

Occupancy rate (%)
Leasing
information

100.0

100.0

100.0

100.0

100.0

Number of days of asset management

183

183

183

183

183

Total property leasing revenue (A)(thousand yen)

65,113

107,066

174,153(Not disclosed)

90,094

65,113

Rent revenue – real estate

Income (loss)
information

Reference
information

107,066

174,153(Not disclosed)

90,094

Other lease business revenue
Total property leasing expenses (B)(thousand yen)

－

－

－

(Not disclosed)－

30,47249,282

81,916(Not disclosed)

50,758

Consignment expenses

4,248

6,604

15,992(Not disclosed)

11,791

Utilities expenses

4,781

7,210

11,801(Not disclosed)

7,039

Taxes and dues

3,642

10,89815,751(Not disclosed)

9,366

Non-life insurance expenses

83

119

215

(Not disclosed)

111

Repair expenses

7,415

3,351

3,447

(Not disclosed)

2,614

Depreciation (C)9,477

21,05834,707(Not disclosed)

19,836

Other lease business expenses

822

40

－

(Not disclosed)－

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

34,641

57,78392,237(Not disclosed)

39,335

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

44,11878,842

126,945

148,273

59,171

Capital expenditures (F) (thousand yen)

9,005

－

10,487－－

NCF [(E) – (F)] (thousand yen)

35,112

78,842

116,457

148,273

59,171

Expense rate (%) [(B) ÷ (A)]

46.80

46.03

47.04

(Not disclosed)

56.34

7,285

21,506

31,19624,822

18,699187,580

125,988(Note 3)82,470

Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)

100,234- 46 -

128,200

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
RegionProperty namePrice
information

Five Central Wards of Tokyo
Daiwa
Nihonbashi
Hongokucho

E-SPACE
TOWER

shinyoncurumuDaiwa Akasaka

Daiwa Shibuya
Miyamasuzaka

Acquisition dateJul. 2011

May 2012

Dec. 2012 andApr. 2013

Aug. 2013

Sep. 2013

Acquisition price (million yen)

24,000

1,721

9,650

9,200

7,000

5.1

0.4

2.1

2.0

1.5

Carrying amount (million yen)

23,589

1,604

9,706

9,400

7,221

Estimated price at end of period(million yen)

33,4002,470

15,50013,7008,740

Investment ratio (%)

Number of tenants (Note 1)

7

5

17

19

8

Leasable floor area (m2)

13,960.87

2,143.08

6,751.31

8,739.17

6,329.00

Leased floor area (m2)

12,960.31

2,143.08

6,720.81

7,993.78

6,329.00

End of Nov. 2015

100.0

100.0

100.0

88.4

100.0

End of May 2016

100.0

100.0

100.0

100.0

100.0

End of Nov. 2016

96.8

100.0

100.0

100.0

100.0

End of May 2017

100.0

100.0

99.5

100.0

100.0

End of Nov. 2017

92.8

100.0

99.5

91.4

100.0

183

183

183

183

183

765,656

65,448361,496

336,091

240,163

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

765,656

64,018361,496

336,091

237,913

Other lease business revenue

－

1,429

－

－

2,250

Total property leasing expenses (B)(thousand yen)

244,872

27,617

128,879

141,527

89,181

Consignment expenses

51,5086,267

29,07232,291

26,251

Utilities expenses

55,081

3,220

23,27042,131

15,597

Taxes and dues

56,763

4,398

33,35733,151

20,068

574

65

278

360

252

Non-life insurance expenses
Repair expenses

11,538

477

6,944

7,397

5,046

Depreciation (C)69,333

13,18735,95626,194

21,964

Other lease business expenses

Reference
information

72

－

－

－

－

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

520,783

37,830232,617

194,563

150,982

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

590,11751,018

268,573

220,758

172,946

Capital expenditures (F) (thousand yen)

41,5682,412

716

11,754

20,664

NCF [(E) – (F)] (thousand yen)

548,548

48,606

267,857

209,004

152,281

Expense rate (%) [(B) ÷ (A)]

31.98

42.20

35.65

42.11

37.13

113,486

8,784

66,671

66,06740,089574,150

50,940166,089

430,612416,816

Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 47 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa Ebisu
4-chome(Note 4)LAQUAS
HigashiShinjuku

Property nameDaiwa Azabu
TerraceAcquisition dateJul. 2014

Dec. 2014

Acquisition price (million yen)

14,0003.0

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

Investment ratio (%)

Number of tenants (Note 1)

Daiwa Aoyama

Shinsen Place(Note 4)

Dec. 2014

Mar. 2015

Mar. 2015

4,135

8,450

9,800

4,800

0.9

1.8

2.1

1.0

14,114

4,266

8,516

10,051

4,904

16,1005,950

10,70012,400

6,710

11

1

4

7

1

Leasable floor area (m2)

13,234.39

2,885.64

7,498.33

4,426.10

2,811.35

Leased floor area (m2)

13,192.63

2,885.64

7,498.33

4,426.10

2,811.35

End of Nov. 2015

100.0

100.0

100.0

100.0

100.0

End of May 2016

94.9

100.0

100.0

91.4

100.0

End of Nov. 2016

99.6

100.0

100.0

100.0

100.0

End of May 2017

99.6

100.0

100.0

85.9

100.0

End of Nov. 2017

99.6

100.0

100.0

100.0

100.0

183

183

183

183

183

473,068(Not disclosed)

226,954

212,474(Not disclosed)

473,068(Not disclosed)

226,954

212,474(Not disclosed)

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

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

Total property leasing expenses (B)(thousand yen)

168,678(Not disclosed)

79,77760,254(Not disclosed)

Consignment expenses

33,394(Not disclosed)

11,183

20,584(Not disclosed)

Utilities expenses

48,639(Not disclosed)

13,6606,605(Not disclosed)

Taxes and dues

31,730(Not disclosed)

20,334

12,742(Not disclosed)

Non-life insurance expenses

512(Not disclosed)

264

132

(Not disclosed)

Repair expenses

3,423(Not disclosed)

1,717

648

(Not disclosed)

Depreciation (C)50,977(Not disclosed)

32,45919,541(Not disclosed)(Not disclosed)

Other lease business expenses－(Not disclosed)

158－

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

304,390(Not disclosed)

147,176

152,220(Not disclosed)

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

355,367

55,547

179,635

171,761

112,101

3,795

39,018

1,107

478

941

Capital expenditures (F) (thousand yen)

Reference
information

NCF [(E) – (F)] (thousand yen)

351,572

16,529178,527

171,282

111,160

Expense rate (%) [(B) ÷ (A)]35.66

(Not disclosed)

35.15

28.36

(Not disclosed)

63,132

17,88640,35025,421

16,292

325,054

115,410

125,440

97,530112,510Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 48 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period

RegionProperty nameAcquisition date

Five Central Wards of Tokyo
Glass City Shibuya

Daiwa River
Gate

Daiwa
Daiwa Hatchobori Daiwa Hatchobori
ekimaeekimae West
Nishi-Shinjuku

May 2015

Jun. 2015

Sep. 2015

Sep. 2015

Mar. 2016

Acquisition price (million yen)

16,00028,000

2,871

1,647

13,710Investment ratio (%)
Price
information Carrying amount (million yen)

3.4

6.0

0.6

0.4

2.9

16,012

28,113

2,954

1,730

13,957

Estimated price at end of period(million yen)

18,30030,200

3,300

1,850

15,500

Number of tenants (Note 1)

9

85

9

8

7

Leasable floor area (m2)

8,566.73

32,055.85

2,622.42

1,723.15

6,967.61

Leased floor area (m2)

8,566.73

31,452.60

2,622.42

1,723.15

6,967.61

End of Nov. 2015

100.0

95.3

100.0

100.0

－

End of May 2016

100.0

98.6

100.0

100.0

99.3

End of Nov. 2016

100.0

95.1

100.0

100.0

99.3

End of May 2017

100.0

90.3

100.0

100.0

99.3

End of Nov. 2017

100.0

98.1

100.0

100.0

100.0

183

183

183

183

183

397,641

913,419

76,95746,545324,970

397,641

909,946

76,95746,545324,970

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Other lease business revenue

－

3,473

－

－

－

Total property leasing expenses (B)(thousand yen)

113,680

549,172

38,25016,923

94,935

Consignment expenses

19,782

89,777

9,607

4,450

17,875

Utilities expenses

26,193

118,875

6,457

2,846

18,649Taxes and dues

27,190103,867

8,980

4,025

35,320

316

1,537

110

57

266

Repair expenses

7,211

71,120

2,878

296

4,452

Depreciation (C)32,986

163,993

10,216

5,247

18,371

Non-life insurance expenses

Other lease business expenses

－

－

－

－

－

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

283,960

364,247

38,706

29,621230,034

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

316,947

528,241

48,92334,868248,405

Capital expenditures (F) (thousand yen)

Reference
information

3,085

98,783

5,591

1,969

8,115

NCF [(E) – (F)] (thousand yen)

313,861

429,457

43,33232,899240,289

Expense rate (%) [(B) ÷ (A)]

28.59

60.12

49.70

36.36

29.21

53,883202,886

17,772

7,988

70,212

202,340

1,970,900

114,190

84,620284,170

Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 49 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period
RegionProperty nameAcquisition date

Price
information

Five Central Wards of Tokyo
Kirin Nihonbashi
Daiwa
Building
Higashi-nihonbashi(Note 4)
Building

SquareDaikanyama
Building(Note 4)

Shinjuku West
Building

Daiwa Kanda
Mikura-cho
Building

May 2016

Jun. 2016

Jun. 2016

Jul. 2016

Dec. 2016

Acquisition price (million yen)

8,180

6,370

2,280

942

1,592

Investment ratio (%)

1.7

1.4

0.5

0.2

0.3

Carrying amount (million yen)

8,299

6,363

2,389

983

1,604

Estimated price at end of period(million yen)

8,290

6,780

2,600

1,230

1,710

Number of tenants (Note 1)

1

5

1

8

7

Leasable floor area (m2)

5,630.17

5,015.88

1,588.35

1,120.58

1,719.51

Leased floor area (m2)

5,630.17

5,015.88

1,588.35

1,120.58

1,719.51

Occupancy rate (%)
Leasing
information

End of Nov. 2015

－

－

－

－

－

End of May 2016

100.0

－

－

－

－

End of Nov. 2016

100.0

100.0

100.0

100.0

－

End of May 2017

100.0

100.0

100.0

100.0

69.5

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

(Not disclosed)

167,565(Not disclosed)

37,99024,954

Rent revenue – real estate(Not disclosed)

167,565(Not disclosed)

37,99024,954

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

Total property leasing expenses (B)(thousand yen)

(Not disclosed)

58,494(Not disclosed)

13,60023,140Consignment expenses(Not disclosed)

7,606(Not disclosed)

3,275

9,936

Utilities expenses(Not disclosed)

9,966(Not disclosed)

2,779

1,808

Taxes and dues

(Not disclosed)

11,337(Not disclosed)

3,113

3,370

Non-life insurance expenses(Not disclosed)

179(Not disclosed)

37

48

Repair expenses(Not disclosed)

4,281(Not disclosed)

2,198

2,812

Depreciation (C)(Not disclosed)

25,123(Not disclosed)

2,185

4,935

Other lease business expenses(Not disclosed)－(Not disclosed)

12

228

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

(Not disclosed)

109,070(Not disclosed)

24,3891,813

160,691

134,193

44,11026,574

6,748

4,344

－

3,752

2,280

709

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

Income (loss)
information

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 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)

156,347

134,193

40,35824,294

6,039(Not disclosed)

34.91(Not disclosed)

35.80

92.73

21,272

22,479

9,096

6,198

6,704

216,720

158,880

45,044

79,33074,026- 50 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period

Price
information

RegionGreater Tokyo

Property name

Daiwa
Higashi-Ikebukuro

Acquisition date

Oct. 2005

Jul. 2007

Sep. 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

3.2

Carrying amount (million yen)

2,679

7,185

1,617

1,930

14,898Estimated price at end of period(million yen)

3,880

6,170

2,340

2,750

19,700

Number of tenants (Note 1)

8

13

5

9

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

2,630.30

17,778.14

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

End of May 2017

100.0

100.0

100.0

100.0

100.0

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

119,909

194,598

65,52692,232604,576

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

119,909

194,598

65,52692,232604,576

Other lease business revenue

－

－

－

－

－

Total property leasing expenses (B)(thousand yen)

60,96087,222

22,59937,800262,558

Consignment expenses

13,901

15,841

3,916

5,657

58,794

Utilities expenses

12,445

15,692

3,243

7,601

76,772

Taxes and dues

8,580

18,327

3,922

6,284

44,426

Non-life insurance expenses

189

292

58

101

746

Repair expenses

2,121

2,446

57

89

8,664

Depreciation (C)23,721

34,622

11,401

18,06572,973

Other lease business expenses

Reference
information

－

－

－

－

180

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

58,948107,375

42,92654,432342,018

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

82,670141,998

54,32772,498414,992

Capital expenditures (F) (thousand yen)

5,448

9,219

－

－

3,876

NCF [(E) – (F)] (thousand yen)

77,221

132,778

54,32772,498411,116

Expense rate (%) [(B) ÷ (A)]

50.84

44.82

34.49

40.98

43.43

17,08435,553

7,845

12,56788,483228,260

331,160

54,91563,700834,324

Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 51 -

Daiwa Office Investment Corporation (8976) Financial Report for the 24th Fiscal Period

Price
information

RegionGreater Tokyo

Major Regional Cities

Property name

Meguro Daiwa
SquareAcquisition date

May 2015

Jul. 2016

Feb. 2013

Aug. 2014

Acquisition price (million yen)

5,600

3,800

5,300

9,481

Daiwa Ogikubo Daiwa Meieki Daiwa Kitahama

Investment ratio (%)

1.2

0.8

1.1

2.0

Carrying amount (million yen)

5,553

4,001

5,222

9,321

Estimated price at end of period(million yen)

6,750

4,490

7,990

11,700

Number of tenants (Note 1)

16

11

25

7

Leasable floor area (m2)

3,519.50

3,849.63

7,461.90

13,517.62

Leased floor area (m2)

3,519.50

3,849.63

7,243.18

13,517.62

Occupancy rate (%)
Leasing
information

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

End of May 2017

100.0

100.0

100.0

98.8

End of Nov. 2017

100.0

100.0

97.0

100.0

183

183

183

183

152,041

124,931

254,455

339,071

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

Income (loss)
information

152,041

124,931

254,455

339,071

Other lease business revenue

－

－

－

－

Total property leasing expenses (B)(thousand yen)

57,65037,762

101,181

155,075

Consignment expenses

10,157

9,838

22,24529,800Utilities expenses

8,753

6,167

16,62335,600

Taxes and dues

13,524

7,773

20,16932,771

Non-life insurance expenses

148

127

327

497

Repair expenses

2,359

1,037

6,225

2,634

Depreciation (C)22,706

12,81735,58353,676

Other lease business expenses

－

－

7

96

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

94,391

87,169153,273

183,995

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

117,098

99,987

188,857

237,671

Capital expenditures (F) (thousand yen)

Reference
information

1,570

1,084

1,993

1,125

NCF [(E) – (F)] (thousand yen)

115,528

98,903

186,864

236,546

Expense rate (%) [(B) ÷ (A)]

37.92

30.23

39.76

45.74

26,671

15,46740,33465,541110,053

161,340

170,803

264,054

Annual amount of fixed property tax, etc. forfiscal 2017 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)(Note 1) Number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, the concerned tenant
is counted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimated to arise overthe 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 theproperty.

- 52 -