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 26th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:

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

January 21, 2019
Stock Exchange Listing: TSE
URL: http://www.daiwa-office.co.jp

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

TEL: +81-3-6215-9649
February 20, 2019
February 15, 2019

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 26th Fiscal Period
26th Fiscal Period: Fiscal period ended November 2018 (from June 1, 2018 to November 30, 2018)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
26thPeriod25th
PeriodOperating income

Ordinary income

Net income¥13,193 million(1.8%)¥6,535 million(2.1%)¥5,902 million

0.2%¥5,901 million

0.2%¥13,440 million

5.5%¥6,678 million

8.1%¥5,888 million

7.9%¥5,887 million

7.9%

Net income
per unit

Net income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue

26th¥11,997
2.3%
1.2%
Period25th¥11,882
2.3%
1.2%
Period(Note) Net income per unit is calculated using the following average number of investment units during the period:
26th Fiscal Period: 491,877 units; 25th Fiscal Period: 495,505 units

44.7%
43.8%

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

Total distribution
amount(excluding distribution
amount in excess ofearnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payoutDistribution
amount to
net assets

26th¥11,997¥5,901 million¥0¥– million
100.0%
2.3%
Period25th¥11,150¥5,484 million¥0¥– million
93.2%
2.2%
Period(Note) Distribution amount per unit for the 25th Fiscal Period is calculated by dividing the amount obtained by deducting
provision of reserve for reduction entry (¥403 million) from unappropriated retained earnings by the total number ofinvestment units issued and outstanding. The main difference between distribution amount per unit and net income
per unit is due to the calculation. As acquisition and cancellation of own investment units were carried out, dividend
payout for the 25th Fiscal Period is obtained by using the following calculation formula, rounded to one decimal
place.
Dividend payout = Total distribution amount (excluding distribution amount in excess of earnings) / Net income x
100

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This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(3) Financial Position
26th
Period25th
PeriodUnitholders’ equity tototal assets

Net assets
per unit

Total assets

Net assets¥479,212 million¥254,124 million

53.0%¥516,641¥467,040 million¥253,676 million

54.3%¥515,730(4) Cash FlowsNet cashprovided by (used in)operating activities
26th
Period25th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥7,612 million(¥20,888 million)¥4,515 million¥23,310 million¥77,961 million(¥37,368 million)(¥24,480 million)¥32,070 million

2. Management Status Forecasts for the 27th Fiscal Period and 28th Fiscal Period
27th Fiscal Period: Fiscal period ending May 2019 (from December 1, 2018 to May 31, 2019)28th Fiscal Period: Fiscal period ending November 2019 (from June 1, 2019 to November 30, 2019)[% figures show the period-over-period increase (decrease)]

Operating revenue
27th
Period28th
PeriodOperating income

Net income¥13,679 million

3.7%¥6,858 million

4.9%¥6,195 million

5.0%¥6,193 million

5.0%¥13,550 million(0.9%) ¥6,774 million(1.2%)¥6,101 million(1.5%)¥6,099 million(1.5%)

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

27th
Period28th
PeriodOrdinary income

Distribution amount in excess of earnings per unit

¥12,300¥0¥12,400¥0(Reference) Estimated net income per unit for the 27th Fiscal Period: ¥12,591; 28th Fiscal Period: ¥12,400(Note)
Distribution amount per unit for the 27th Fiscal Period is calculated based on the assumption that the amount for reserve for reduction
entry (¥143 million) 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):
26th Fiscal Period: 491,877 units
25th Fiscal Period: 491,877 units(ii) Total number of treasury units at end of period:
26th Fiscal Period:– units
25th Fiscal Period:– units(Note) Please refer to “Notes to Per Unit Information” on page 28 for the number of investment units used as the basis for calculating the net
income per unit.
* 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 27th Fiscal Period and 28th Fiscal Period” onpage 10.

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○ Table of Contents
1. Affiliated Juridical Persons of the Investment Corporation ................................................................................... 4
2. Management Policy and Management Status......................................................................................................... 4
2.1. Management Policy ......................................................................................................................................... 4
2.2. Management Status.......................................................................................................................................... 4
2.2.1. Overview of the Fiscal Period under Review ............................................................................................ 4
2.2.2. Outlook for the Next Fiscal Period ............................................................................................................ 7
2.3. Investment Risks............................................................................................................................................ 11
3. Financial Statements ............................................................................................................................................ 123.1. Balance Sheets ............................................................................................................................................... 123.2. Statements of Income .................................................................................................................................... 14
3.3. Statements of Unitholders’ Equity ................................................................................................................. 15
3.4. Statements of Cash Distributions................................................................................................................... 17
3.5. Statements of Cash Flows .............................................................................................................................. 18
3.6. Notes to the Going Concern .......................................................................................................................... 19
3.7. Notes to Significant Accounting Policies ...................................................................................................... 19
3.8. Notes to Changes in Presentation or Classification ....................................................................................... 20
3.9. Notes to Financial Statements ....................................................................................................................... 20
3.10. Increase (Decrease) in Number of Investment Units Issued and Outstanding .............................................. 29
4. Changes in Directors ............................................................................................................................................ 29
5. Reference Information.......................................................................................................................................... 30
5.1. Investment Status ........................................................................................................................................... 30
5.2. Investment Real Estate Properties (As of November 30, 2018) ..................................................................... 31
5.2.1. Price and Investment Ratio of Investment Real Estate Properties ........................................................... 31
5.2.2. Summary of Building and Leasing of Investment Real Estate ................................................................ 33
5.2.3. Capital Expenditures for Assets under Management .............................................................................. 36
5.2.4. Summary of Estimated Price at End of Period (As of November 30, 2018) .......................................... 37
5.2.5. Status of Income (Loss), etc. of Individual Properties ............................................................................ 39-3-

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 17, 2018).

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 August17, 2018) as of date of this document.
Partial amendments to the Articles of Incorporation regarding asset management fees to the asset manager which wereresolved at the 10th General Meeting of Unitholders held on August 20, 2018 took effect on December 1, 2018.
[Asset Management Fees to the Asset Manager]
In order to focus on management results and shift to an asset management fee system that improves the incentive forraising distributable amount, Management Fee I (based on assets under management), which was linked to theInvestment Corporation’s cumulative acquisition price, was made to link to the total appraisal value of asset undermanagement and the fee rate was lowered from 0.1% to 0.05%, while at the same time the fee rate of Management Fee
III (based on distributable amount), which is linked to distributable amount, was raised from 2.0% to 3.5%.
2.2. Management Status
2.2.1. 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 459,736 million yen as of the last day of November 2018.
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 2018 to November 2018)
The Japanese economy during the fiscal period under review saw real GDP growth rate (Second Preliminary
Estimates) for July to September 2018 at an annual rate of -2.5%, falling after a temporary standstill in the recovery
trend that had continued for eight consecutive quarters under the ongoing quantitative/qualitative monetary easing
policy by the Bank of Japan.
In the office building leasing market in central Tokyo, with new supply having settled down, the vacancy rate tooka turn after peaking in June 2013, dropping to 1.98% at the end of November 2018. 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 ordinary EPS (EPS (net income per unit) after deducting gain on sale from properties) overthe medium to long term, the Investment Corporation continued to work on “external growth,” which aims to boost
revenue through acquisition of properties, and “internal growth,” which aims to maximize income generating from
owned properties.
Concerning external growth, the Investment Corporation acquired “Prime Kanda Building” (acquisition price:
2,295 million yen in total) in June and November 2018, “Kita-Shinagawa Gotenyama Building” (acquisition price:
2,500 million yen) in September 2018 and “Sasazuka NA Building” (acquisition price: 15,500 million yen) in October
2018. As a result, the Investment Corporation’s assets under management as of the end of the 26th Fiscal Period(November 30, 2018) totaled 58 properties, the sum total of acquisition prices of which amounted to 459,736 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 26th Fiscal Period (November 30, 2018) was 98.9%.

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C. Overview of Capital Procurementa. Procurement of Capital for the Acquisition of New Properties Repayment of Borrowings
In the 26th Fiscal Period, the Investment Corporation made the following borrowings to fund the acquisition of new
properties and the repayment of borrowings.
・The Investment Corporation took out loans of 1,000 million yen from Tokio Marine & Nichido Fire Insurance Co.,
Ltd. on July 31, 2018 to fund the repayment of loans of 1,000 million yen borrowed from the company whichwere due for repayment on the same day.
・The Investment Corporation took out loans of 4,500 million yen in total from The Bank of Fukuoka, Ltd., Kansai
Urban Banking Corporation and Development Bank of Japan Inc. on August 31, 2018 to fund the repayment of
4,500 million yen in total borrowed from the same banks that was due for repayment on the same day.
・The Investment Corporation took out loans of 10,000 million yen in total from Mizuho Trust and Banking Co., Ltd.,
Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., Mizuho Bank, Ltd. and Sumitomo Mitsui Trust Bank,
Ltd. on October 30, 2018 to fund the acquisition of a new property (Sasazuka NA Building) acquired on the sameday.
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 26th Fiscal Period(November 30, 2018) stood at 198,950 million yen in total (long-term loans payable: 193,850 million yen; investment
corporation bonds: 5,100 million yen). The balance of the current portion of long-term loans payable stood at 18,000
million yen while that of investment corporation bonds stood at 3,000 million yen.
The average remaining period of interest-bearing liabilities as of the end of the 26th Fiscal Period stands at 4.2
years.
List of Borrowings in the 26th Fiscal Period
LenderTokio Marine & Nichido Fire Insurance Co., Ltd.
The Bank of Fukuoka, Ltd.
Kansai Urban Banking Corporation
Development Bank of Japan Inc.
Mizuho Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.

-5-

Loan amount(million yen)
1,000
2,000
1,500
1,000
4,000
3,000
1,000
1,000
1,000

Drawdown
date
2018/7/31
2018/8/31
2018/8/31
2018/8/31
2018/10/30
2018/10/30
2018/10/30
2018/10/30
2018/10/30

Repayment
date
2023/7/31
2027/8/31
2025/8/31
2027/8/31
2027/10/29
2027/10/29
2027/10/29
2027/10/29
2026/10/30

Loan
period
5.0 years
9.0 years
7.0 years
9.0 years
9.0 years
9.0 years
9.0 years
9.0 years
8.0 years

Balance of Borrowings from Each Financial Institution (as of November 30, 2018)
End of the 26th Fiscal Period
Lender(million yen)
Sumitomo Mitsui Banking Corporation
39,400Sumitomo Mitsui Trust Bank, Limited
23,500Development Bank of Japan Inc.
21,750MUFG Bank, Ltd.
21,500Mizuho Bank, Ltd.
19,400Shinsei Bank, Ltd.
14,000Resona Bank, Ltd.
12,500Mizuho Trust and Banking Co., Ltd.
9,500
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
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
ORIX Bank Corporation
1,500
Nippon Life Insurance Company
1,300
The Kagawa Bank, Ltd.
1,000
The Higashi-Nippon Bank, Limited
1,000
Taiyo Life Insurance Company
300
Fukoku Mutual Life Insurance Company
200
Total
193,850(Note) Share is rounded to two decimal places.

Share (%)
(Note)
20.32
12.12
11.22
11.09
10.01
7.22
6.45
4.90
2.84
2.58
1.55
1.55
1.29
1.03
1.03
1.03
1.03
0.77
0.67
0.52
0.52
0.15
0.10
100.00c. Rating Information (as of November 30, 2018)
Credit rating agency
R&I
Japan Credit Rating Agency

RatingA+
AA-

OutlookPositive
Positive

D. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance for the 26th
Fiscal Period of 13,193 million yen in operating revenue, 6,535 million yen in operating income, 5,902 million yen in
ordinary income and 5,901 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 11,997 yen.

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2.2.2. Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy going forward was expected to continue to expand backed by solid trends in personal
spending against the backdrop of a favorable employment environment and the improved income environment while
the monetary easing policy implemented by Bank of Japan continued. However, the pace of growth has stalled due tofactors which will slow export, such as the ending of inventory accumulation in Japan and the U.S. and ECB’s
announcement of plans to scale down quantitative easing. In addition, factors such as policies set out by the U.S.
President Donald Trump, the downward swing of the Chinese economy, deterioration of European economy, rise of
crude oil price, stricter overtime work regulations and consumption tax hike scheduled for October 2019 may slow
down the Japanese economy, 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 moderately 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
While office leasing market conditions remain strong, large-scale relocations to new buildings for consolidation, etc.
have become noticeable. Therefore, the Investment Corporation intends to improve its skill in building managementby constantly attempting to grasp the latest tenant needs and market conditions, regularly reviewing management
systems and such in order to be able to promptly respond when secondary or tertiary vacancies, etc. arise.
Consequently, the Investment Corporation will carry out operational management under the following policy with an
aim to enhance the competitiveness of existing properties and thereby increase the long-term EPS over the medium
to long term.
(i)

Maintain and raise occupancy rates
Concerning existing tenants, strive to reduce cancellation risks by improving the quality of buildings,
equipment and management system. In addition, concerning new tenants, strive to maintain and raiseoccupancy rates through the provision of highly satisfactory services from gaining deeper understanding of
tenant needs through proactive 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 withexisting tenants, as well as proactively tapping the needs of new tenants by discerning the market environment.
(iii) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of high 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 26th Fiscal Period, the Investment Corporation acquired “Prime Kanda Building,”“Kita-Shinagawa Gotenyama Building” and “Sasazuka NA Building” located in Tokyo. The Investment Corporation
believes that acquisition of these properties will contribute to further stabilization and enhancement of the portfolio.
The Investment Corporation will continue to strive to acquire properties in line with the investment strategy
described above.
c. Financial Strategy
The Investment Corporation will conduct disciplined financial management of the following basic content.
(i) Control leverage by keeping the ratio of interest-bearing liabilities 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.

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C. Significant Subsequent Eventsa. Acquisition of Assets
The Investment Corporation acquired trust beneficial interest in real estate on December 27, 2018 as follows.
Summary of Asset Acquired
Property name

Sasazuka South Building

Type of asset

Trust beneficial interest in domestic real estate (Note 1)

Location

1-64-8 Sasazuka, Shibuya-ku, Tokyo

Acquisition Price

3,000 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 19, 2018

Date of delivery

December 27, 2018

SellerNot disclosed (Note 2)(Note 1)
(Note 2)Trust beneficial interest in real estate of the Property is divided into two: (1) compartmentalized
ownership of the 1st to 7th floors and (2) compartmentalized ownership of the 8th floor.
Both sellers are domestic special purpose companies which have not agreed to disclose their names.

b. Borrowing of Funds
The Investment Corporation borrowed funds on December 27, 2018 as below. The funds were borrowed toprovide for the acquisition of the new property listed above in “a. Acquisition of Assets,” etc.
Detail of Borrowings
LenderSumitomo Mitsui Banking
Corporation(Note)

Loan
Amount(million yen)Interest Rate

Borrowing
Date

Borrowing/
Repayment
MethodRepayment
Date

3,000

JBA 1-month
Japanese Yen
TIBOR+0.25%(Note)

December 27,
2018

Unsecured
Repaymentin lump sum

December 27,
2019

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
the applicable calculation period.

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D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 27th Fiscal Period (fiscal period
ending May 2019 (from December 1, 2018 to May 31, 2019)). For the assumptions underlying the management status
forecasts, please refer to the “Assumptions for the Management Status Forecasts for the 27th Fiscal Period and 28th
Fiscal Period” on page 10.
27th Fiscal Period (fiscal period ending May 2019 (from December 1, 2018 to May 31, 2019))
Operating revenue
13,679 million yen
Operating income
6,858 million yen
Ordinary income
6,195 million yen
Net income
6,193 million yen
Distribution amount per unit
12,300 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 27th Fiscal Period and28th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status forthe 28th Fiscal Period (fiscal period ending November 2019 (from June 1, 2019 to November 30, 2019)).
28th Fiscal Period (fiscal period ending November 2019 (from June 1, 2019 to November 30, 2019))
Operating revenue
13,550 million yen
Operating income
6,774 million yen
Ordinary income
6,101 million yen
Net income
6,099 million yen
Distribution amount per unit
12,400 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-

Assumptions for the Management Status Forecasts for the 27th Fiscal Period and 28th Fiscal Period
Item
Assumptions
 27th Fiscal Period: Assets under management are assumed to be the 58 properties owned as ofNovember 30, 2018, plus the 1 property (Sasazuka South Building) acquired in December 2018, tototal 59 properties; minus the number of properties expected to be divested (not determined at thisAssets undertime but properties expected to be divested during the 27th Fiscal Period).
management
 28th Fiscal Period: Assets under management are assumed to be the properties mentioned above.
 The actual number of properties may vary due to changes in the assets under management otherthan above.
 Rent revenue from existing properties is calculated based on historical data and taking into accountOperatingvariable factors.
revenue 143 million yen of gain on sale from real estate properties from the divestment of existing
properties is expected in the 27th 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 8,090
million yen in the 27th Fiscal Period and 8,125 million yen in the 28th Fiscal Period.
 Consignment expenses are expected to be 938 million yen in the 27th Fiscal Period and 896
Operatingmillion yen in the 28th Fiscal Period.
expenses Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 1,041 million yen in
the 27th Fiscal Period and 1,127 million yen in the 28th Fiscal Period.
 While, in general, fixed property tax, city planning tax, etc. in the transaction of real estate, etc. are
calculated on a pro rata basis and reimbursed at the time of acquisition with the current owner, but
for the Investment Corporation, the amount equivalent to the reimbursement is included in the costof acquisition and thus it is not recognized as expenses in the period of acquisition of properties.
As such, fixed property tax, city planning tax, etc. for properties acquired will be recorded as
expenses starting from the fiscal year following the acquisition year.
 Depreciation is expected to be 1,791 million yen in the 27th Fiscal Period and 1,787 million yen in
the 28th Fiscal Period.
 Non-operating expenses in the 27th Fiscal Period are expected to be 663 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related
Non-operating
expenses are expected to be 658 million yen.
expenses Non-operating expenses in the 28th Fiscal Period are expected to be 672 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related
expenses are expected to be 667 million yen.
 The total amount of interest-bearing liabilities is assumed to be 201,950 million yen at the end of
the 27th Fiscal Period and 201,950 million yen at the end of the 28th Fiscal Period
 In the 27th Fiscal Period, 3,000 million yen was newly borrowed on December 27, 2018 to fundthe acquisition of “Sasazuka South Building” announced on December 19, 2018. It is assumed thatthe entire amount of borrowings due for repayment on February 28, 2019 (2,500 million yen),Interest-bearing
March 29, 2019 (6,000 million yen) and May 31, 2019 (1,500 million yen) will be refinanced.
liabilities
 In the 28th Fiscal Period, it is assumed that the entire amount of borrowings due for repayment on
August 30, 2019 (2,500 million yen), September 30, 2019 (2,000 million yen) and November 29,
2019 (3,500 million yen) will be refinanced. In addition, it is assumed that 3,000 million yen ofinvestment corporation bonds will be newly issued to redeem the same amount of investment
corporation bonds due for redemption on September 12, 2019.
 The total number of investment units issued and outstanding is assumed to be 491,877 units as of
Total number ofNovember 30, 2018.
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 28th 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 divestments of portfolio properties expected for the 27th Fiscal
Period is assumed to be retained as internal reserves with the application of “Special Provisions forDistribution amount
Taxation in Cases of Repurchase of Specified Assets” (Article 65-7 of the Act on Special
per unit
Measures Concerning Taxation) and expected to be retained as reserve for reduction entry (143
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,
and incurrence of unforeseen repairs.

- 10 -

Item
Distribution amountin excess of earnings
per unit
Other

Assumptions
 At present, there is no plan to make any distribution in excess of earnings (distribution amount inexcess of earnings per unit).
 It is assumed that there are no changes to laws and ordinances, the tax system, accounting
standards, listing regulations, the rules of Tokyo Stock Exchange, Inc. and The Investment Trusts
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 17, 2018).

- 11 -

3. Financial Statements
3.1. Balance Sheets

25th Fiscal Period[As of May 31, 2018]
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Income taxes receivable
Consumption taxes receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets*1

28,687,859
3,383,052
180,947
16,267
338,534
36,81732,643,479

19,008,711
4,301,854
201,341
314,284
336,925
40,287
24,203,404

3,260,320
2,148,056)
1,112,264
14,344
5,691)
8,652
19,9178,805)
11,111
12,302,226
3,687
100,613,702
20,611,255)
80,002,446
722,262
159,378)
562,883
765,971
378,845)
387,125
228,474
117,569)
110,904
335,174,786
821,310
430,497,400

3,261,447(2,231,615)
1,029,832
14,344(6,152)
8,191
19,917(9,943)
9,974
12,302,226
2,997
105,205,800(22,206,438)
82,999,361
743,077(170,150)
572,927
859,534(408,262)
451,272
259,118(131,315)
127,803353,252,550
422,487
451,179,623

378
2,398,275
306,884
24,6792,730,218- 12 -(Unit: thousand yen)
26th Fiscal Period[As of Nov. 2018]*1324
2,398,275
306,884
23,464
2,728,949

25th Fiscal Period[As of May 31, 2018]
Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Derivatives
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Unitholders' capital, net
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets*2*3- 13 -(Unit: thousand yen)
26th Fiscal Period[As of Nov. 2018]

113,684
903,806
40,494
83,26810,0201,151,274
434,378,893

113,684
884,452
26,08851,62810,0401,085,894
454,994,467

17,651
17,651
467,040,024

14,696
14,696479,212,568

872,092
15,500,000
534,701655
296,361
2,073,799
524,627
19,802,238

1,255,722
3,000,000
18,000,000
583,518990
122,292
2,177,690
656,351
25,796,564

5,100,000
168,350,000
17,709,854
1,792,654
434,526
174,578
193,561,614
213,363,852

2,100,000
175,850,000
18,145,584
2,647,046
349,866
199,227
199,291,724
225,088,289

251,551,759(3,675,523)
247,876,236*2

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

164,162
164,162
5,887,688
6,051,850
253,928,086

567,422567,422
5,901,266
6,468,688
254,344,924(251,915)(251,915)
253,676,171
467,040,024(220,645)(220,645)
254,124,279
479,212,568*3

3.2. Statements of Income

25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]
Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sales of real estate properties
Dividend income
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Insurance income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Loss on fire
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)
26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]

*1
*1
*2

12,868,665
41,409481,733
48,82013,440,629*1*1

13,164,114
29,733
13,193,848*15,410,175
1,064,807
24,79676,50019,7387,200
158,669
6,761,887
6,678,741*1

5,344,992
1,068,779
23,42479,32718,3077,200
116,304
6,658,336
6,535,512

9
697
137,418898
139,024

28
721
2,323
86
3,160

542,083
16,892
144,081
125,588
100,879
929,524
5,888,241
5,888,241774
5
780
5,887,460
227
5,887,688

482,148
16,707133,108
4,458
636,423
5,902,249
5,902,249
993
(10)
982
5,901,266

5,901,266

3.3. Statements of Unitholders’ Equity
25th Fiscal Period (from December 1, 2017 to May 31, 2018)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital

SurplusReserve for
reduction entry

Total voluntary
retained earnings

Unappropriatedretained earnings(undisposed
loss)

164,162

164,1625,455,377

5,619,540

Dividends from surplus

5,455,150)

5,455,150)

Net income

5,887,460

5,887,460

Unitholders’capitalBalance at beginning of current
fiscal period

Deduction fromunitholders' capital－

251,551,759

Unitholders'
capital, net

251,551,759

Voluntary retained earnings

Total Surplus

Changes of items during theperiodAcquisition of own
investment units
Cancellation of own

3,675,523)

3,675,523)－

3,675,523)

3,675,523)－－

432,310432,310

251,551,759

3,675,523)

247,876,236

164,162

164,162

5,887,688

6,051,850

investment units
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
periodTotal valuation and translation
adjustments

Unitholders’ equity

Own investment
units
Balance at beginning of current
fiscal period－

Total unitholders’ Deferred gains orequitylosses on hedges

257,171,299

375,211)

Total valuationand translation
adjustments

Total net assets

375,211)

256,796,087

Changes of items during theperiodDividends from surplus

5,455,150)

5,455,150)

Net income

5,887,460

5,887,460

3,675,523)

3,675,523)

3,675,523)

3,675,523－－

Acquisition of own
investment units
Cancellation of own
investment units
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period123,296

123,296

123,296－

3,243,213)

123,296

123,296

3,119,917)－

253,928,086

251,915)

251,915)

253,676,171- 15 -

26th Fiscal Period (from June 1, 2018 to November 30, 2018)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital

SurplusReserve for
reduction entry

Total voluntary
retained earnings

Unappropriatedretained earnings(undisposed
loss)

164,162

164,162

5,887,688

6,051,850

403,259

403,259(403,259)-

Dividends from surplus(5,484,428)(5,484,428)

Net income

5,901,266

5,901,266

Unitholders’capitalBalance at beginning of current
fiscal period

Deduction fromunitholders' capital

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

Voluntary retained earnings

Unitholders'
capital, net

247,876,236

Total Surplus

Changes of items during theperiodProvision of reserve for
reduction entry

Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period---403,259

403,259

13,578416,837

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

247,876,236

567,422567,422

5,901,266

6,468,688

Unitholders’ equity

Total valuation and translation
adjustments

Total unitholders’ Deferred gains orequitylosses on hedges
Balance at beginning of current
fiscal period

253,928,086(251,915)

Total valuationand translation
adjustments

Total net assets(251,915)

253,676,171

Changes of items during theperiodProvision of reserve for--

Dividends from surplus(5,484,428)(5,484,428)

Net income

5,901,266

5,901,266

reduction entry

Net changes of items other

31,27031,27031,270416,837

31,27031,270448,107254,344,924(220,645)(220,645)

254,124,279

than shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period- 16 -

3.4. Statements of Cash Distributions

Item
I.
II.

Unappropriated retained earnings
Distribution amount[Distribution amount per unit]
III. Voluntary retained earnings
Provision of reserve for reduction entry
IV. Retained earnings carried forward
Method for calculating distribution amount25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]
Amount (yen)5,887,688,126
5,484,428,550(11,150)
403,259,576
Pursuant to the policy that “theInvestment
Corporation
shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(491,877 units) in an amount that is
not in excess of the remaining amountobtained after deducting provision ofreserve for reduction entry defined in
Article 66-2 of the Special Taxation
Measures Act from unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 5,484,428,550
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 -

26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]
Amount (yen)5,901,266,172
5,901,048,369(11,997)
217,803
Pursuant to the policy that “theInvestment
Corporation
shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(491,877 units) in an amount that is
not in excess of unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 5,901,048,369
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

3.5. Statements of Cash Flows

25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]
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
Decrease (increase) in accounts receivable - other(Increase) Decrease in consumption taxes refund receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Decrease from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Proceeds from withdrawal of investment securities
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
Repayments of tenant security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of own investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 18 -*1(Unit: thousand yen)
26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]

5,888,241
1,775,614
2,938(9)
558,975
41,314(2,214)－
5,857(27,529)
8,045
39,40327,551
99,01369,827,449
293,398
78,538,048
9(558,883)(17,257)
77,961,917

5,902,249
1,738,044
2,954
(28)
498,856(20,393)2,214(314,284)
1,609
158,324
14,386(174,068)
103,890
19,354－
162,814
8,095,920
28(498,948)
15,608
7,612,610(7,835)(43,357,161)－
3,951,142
2,835,391
1,562,855(2,246,747)(106,455)(37,368,810)(801)(22,175,382)(2,500)－1,013,828
924,173(639,121)(8,759)(20,888,563)

39,000,000(41,000,000)
6,000,000(19,350,000)(3,675,523)(5,455,151)(24,480,674)
16,112,432
15,958,479
32,070,911－－
15,500,000(5,500,000)－(5,484,393)
4,515,606(8,760,346)
32,070,911
23,310,565*1

3.6. Notes to the Going Concern
Not applicable.
1.

2.
3.

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

Accounting policies fordeferred assets
Accounting standards for recording
revenues and expenses

4.

Hedge accounting approaches

5.

Scope of funds in thestatements of cash flows

Property, plant and equipment (including trust assets)
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as follows:
Buildings
2~64 years
Structures
10~56 years
Machinery and equipment
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.
Investment corporation bonds issuance costs
Amortized using the straight-line method over the period up to redemption.
Accounting for fixed property tax, etc.
Concerning fixed property tax, city planning tax, depreciated asset tax, etc. forowned real estate in trust, of the tax amount that has been broken down into
installments, the method of accounting for the amount corresponding to theconcerned fiscal period as expenses related to rent business is adopted.
Concerning the amount equivalent to fixed property tax, etc. for the initialfiscal year that shall be borne by the Investment Corporation in correlation withacquisitions of real estate or trust beneficial interest that have real estate as
assets in trust, the amount is not expensed but is rather included in the cost of
acquisition of the concerned real estate property. The amount equivalent to
fixed property tax, etc. that was included in the cost of acquisition of real estate
properties is 126,300 thousand yen in the 25th Fiscal Period and 27,275
thousand yen in the 26th Fiscal Period.
(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet the requirements
for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate swap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge risks
stipulated in the Investment Corporation’s articles of incorporation inaccordance with the Investment Corporation’s risk management policy.
(4) Method for assessing the effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between the change
in aggregated amount of cash flow of the hedging instruments and the change
in aggregated amount of cash flow of the hedged items.
Interest rate swaps that meet the requirements for special accounting are
omitted from assessment of the effectiveness.
The funds (cash and cash equivalents) in the statements of cash flows consist of cashon hand and cash in trust; deposits that can be withdrawn at any time and deposits intrust; and short-term investments with a maturity of 3 months or less from the date ofacquisition, which are readily convertible to cash and bear only an insignificant riskof price fluctuation.

- 19 -

6.

Other significant matters forming
basis for preparation of financial
statements

(1)

(2)

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

3.8. Notes to Changes in Presentation or Classification
With the application of “Partial Amendments to ‘Accounting Standard for Tax Effect Accounting’” (ASBJ Statement No.
28, February 16, 2018), etc. from the beginning of the 26th Fiscal Period, the method of presentation or classification has
been changed to state deferred tax assets under investments and other assets and deferred tax liabilities under Noncurrent
liabilities.
3.9. 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.
25th Fiscal Period[As of May 31, 2018]
Buildings in trust

26th Fiscal Period[As of November 30, 2018]

32,898 thousand yen

Buildings in trust

32,898 thousand yen*2. Status of cancellation of own investment units
25th Fiscal Period[As of May 31, 2018]
Total number of investment units
cancelled
Total amount cancelled

26th Fiscal Period[As of November 30, 2018]
5,992 units

5,992 units

3,675,523 thousand yen

3,675,523 thousand yen*3. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations

25th Fiscal Period[As of May 31, 2018]

26th Fiscal Period[As of November 30, 2018]

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)
25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]
A.

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

13,164,114
29,733

12,868,665
41,40912,910,074

Total property leasing revenue- 20 -

26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]13,193,848

B.

C.

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

928,207
1,093,880
1,041,948
14,085472,933
1,734,275
59,662962,222
998,451
1,108,572
14,249505,704
1,772,039
48,935

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

5,410,175

5,344,992

7,499,899

7,848,856*2. Breakdown of gain (loss) on sales of real estate properties (Unit: thousand yen)
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Daiwa Meieki
Proceeds from sales of real estate
properties
Cost of sales of real estate properties
Other expenses on sales

8,301,326
5,217,313
124,549

Gain on sales of real estate properties

2,959,463

Shinjuku Maynds Tower (three-sevenths out of six-sevenths of co-ownership interest)
Proceeds from sales of real estate
62,500,000
properties
Cost of sales of real estate properties
64,610,135
Other expenses on sales
367,594
Loss on sales of real estate properties

2,477,729

26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.
[Notes to Statements of Unitholders’ Equity]
25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]
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
491,877 units

26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]

2,000,000 units
491,877 units

[Notes to Statements of Cash Flows]*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the statements of cash flows(Unit: thousand yen)
25th Fiscal Period
26th Fiscal Period[From: Dec. 1, 2017
[From: June 1, 2018
To: May 31, 2018]
To: Nov. 30, 2018]
Cash and deposits
28,687,859
19,008,711
Cash and deposits in trust
3,383,052
4,301,854
Cash and cash equivalents
32,070,911
23,310,565[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation bonds andissuance of new investment units, etc. for the acquisition and repair of investment properties, the payments ofdividends and the reimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates, anddispersing maturity dates in order to secure financial stability and avoid future fluctuation risk of interest rates.
The Investment Corporation manages surplus funds through deposits and safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks attributable toliabilities of the Investment Corporation.
(b) Contents and risk of financial instruments and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds for theacquisition of investment properties (such as trust beneficial interest in real estate) and the reimbursement of current
debts and bonds. While these debts and bonds are exposed to liquidity risk, the Investment Corporation manages therisk by maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt tototal debt at high levels, and diversifying lenders with particular focus on domestic financial institutions.
Bank borrowings etc. with floating interest rates are exposed to interest rate risk and the risk is controlled by using
derivative instruments (interest rate swap transaction) for some long-term borrowings to avoid interest rate rise and to
fix interest expense.
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount of cash flowof the hedging instruments and the change in aggregated amount of cash flow of the hedged items. Interest rate swaps
that meet the requirements for special accounting are omitted from assessment of the effectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions
established by the basic policy of risk management. Tenant leasehold and security deposits and tenant leasehold andsecurity deposits in trust are exposed to liquidity risk upon tenants moving out and the Investment Corporation
reduces the risk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) and aremanaged by limiting the terms to short durations and establishing credit rating level of counterparties (except forcheckable deposit), etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instruments with noavailable market price is determined by using price reasonably estimated. As various factors are incorporated into
these calculations, the resulting value may differ if different assumptions are provided. Furthermore, the contractual
amounts of derivative transactions do not represent the market risk involved in these derivative transactions.

- 22 -

(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)).
25th Fiscal Period [As of May 31, 2018](1) Cash and deposits(2) Cash and deposits in trust
Total assets(3) Current portion of long-term loans payable(4) Investment corporation bonds(5) Long-term loans payable(6) Total liabilities
Derivative transactions (*)

Carrying amount
28,687,859
3,383,052
32,070,911
15,500,000
5,100,000
168,350,000
188,950,000(368,207)

Fair value
28,687,859
3,383,052
32,070,911
15,510,391
5,168,640
168,312,077
188,991,109(368,207)(Unit: thousand yen)
Difference－－－
10,391
68,64037,922)
41,109－26th Fiscal Period [As of November 30, 2018](Unit: thousand yen)
Carrying amount
Fair value
Difference(1) Cash and deposits
19,008,711
19,008,711－(2) Cash and deposits in trust
4,301,854
4,301,854－
Total assets
23,310,565
23,310,565－(3) Current portion of investment corporation bonds
3,000,000
3,004,200
4,200(4) Current portion of long-term loans payable
18,000,000
18,008,126
8,126(5) Investment corporation bonds
2,100,000
2,158,380
58,380(6) Long-term loans payable
175,850,000
175,820,891
29,108)
Total liabilities
198,950,000
198,991,597
41,597
Derivative transactions (*)(322,520)(322,520)－(*) 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(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.)(3) Current portion of investment corporation bonds; (5) Investment corporation bonds
The fair value of the investment corporation bonds issued by the Investment Corporation is based on the market price.

- 23 -

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
25th Fiscal Period[As of May 31, 2018]
17,709,854
1,792,654

Tenant leasehold and security deposits*
Tenant leasehold and security deposits in trust*(Unit: thousand yen)
26th Fiscal Period[As of November 30, 2018]18,145,584
2,647,046

Total
19,502,509
20,792,630(*) Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees ofrental properties are not subject to disclosure of fair value because discerning of the fair value is recognized to be
extremely difficult as future cash flows cannot be reasonably estimated due to there being no market price and difficultyin calculation of the actual deposit period, which is the period from tenants’ move-ins to move-outs.
(Note 3) Redemption schedule for monetary claims due after the settlement of accounts.
25th Fiscal Period [As of May 31, 2018](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Cash and deposits

28,687,859

－

－

－

－

－

Cash and deposits in trust

3,383,052

－

－

－

－

－

32,070,911

－

－

－

－

－

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

19,008,711

–

–

–

–

–

Cash and deposits in trust

4,301,854

–

–

–

–

–

Total

23,310,565

–

–

–

–

–

Total

Over 5 years

26th Fiscal Period [As of November 30, 2018](Unit: thousand yen)Over 5 years(Note 4) Amount of repayment of current portion of long-term loans payable, long-term loans payable, current portion of
investment corporation bonds and investment corporation bonds scheduled to be due after the settlement ofaccounts.
25th Fiscal Period [As of May 31, 2018](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

15,500,000

－

－

－

－

－

－

3,000,000－－－

2,100,000－

19,500,000

33,300,000

21,500,000

30,600,000

63,450,000

15,500,000

22,500,000

33,300,000

21,500,000

30,600,000

65,550,000

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

3,000,000

－

－

－

－

－

18,000,000

－

－

－

－

－

Investment corporation bonds

－

－

－

－

－

2,100,000

Long-term loans payable－

28,100,000

24,200,000

31,600,000

26,200,000

65,750,000

21,000,000

28,100,000

24,200,000

31,600,000

26,200,000

67,850,000

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

Over 5 years

26th Fiscal Period [As of November 30, 2018](Unit: thousand yen)
Current portion of investment
corporation bonds
Current portion of
long-term loans payableTotal- 24 -

Over 5 years

[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
25th Fiscal Period [As of May 31, 2018]
Not applicable.
26th Fiscal Period [As of November 30, 2018]
Not applicable.
(2) Transactions for which hedge accounting is applied
25th Fiscal Period [As of May 31, 2018]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
quotedby partner
105,100,000
96,100,000
368,207)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans－
4,500,000
2,000,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
109,600,000
98,100,000
368,207)
26th Fiscal Period [As of November 30, 2018]
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
102,100,000
90,100,000
322,520)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
(*)
loans
－
4,500,000
2,000,000
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
106,600,000
92,100,000
322,520)(*) Since the derivative financial instruments qualifying for the special accounting for interest rate swaps are accounted for as
one transaction together with their hedged item, long-term loans payable, the fair value of these derivatives is included in thatof related long-term loans payable. (Please refer to “Notes to Financial Instruments (2) Matters Concerning Fair Value, etc.
of Financial Instruments (Note 1) Liabilities (4) (6)”).

- 25 -

[Notes to Transactions with Related Parties](1) Parent company and major corporate unitholders, etc.
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Not applicable.
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.
(2) Affiliated companies, etc.
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Not applicable.
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.
(3) Sister companies, etc.
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Rate of voting
Balance at
Capital stockrights, etc. held Relation
Transaction
end ofName of company,
orBusinessby related
withNature ofamount Acco
Category
Location
periodetc.
investments description party (held in Related transaction (thousand unt(thousandin capital
the Investment Parties
yen)
yen)
Corporation)

Subsidiary
Godo kaishaof OtherChuo-ku,
Yokohama OfficeaffiliatedTokyo
Managementcompany

400,000
yen

Real estatebusiness－

Purchase
Purchase of trustof trust beneficial
beneficial interest in 38,100,000
interest in real estate
real estate (Note 1, 2,
3)

－

－

Of amounts indicated above, transaction amount does not include consumption tax, etc.
(Note 1) Transaction terms and conditions were determined based on the market.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning conflict ofinterest in the internal rule of the Asset Manager.
(Note 3) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is quasi
co-ownership equivalent to 75% of the entire CONCURRED Yokohama.
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.
(4) Officers and major individual unitholders, etc.
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Not applicable.
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.

- 26 -

[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)
25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]

26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]

Carrying amount
Balance at beginning of period

459,753,017

432,377,563

Amount of increase (decrease) during period(27,375,454)

21,081,736

Balance at end of period

432,377,563

453,459,299

506,040,000

537,030,000

Fair value at end of period(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) for rental properties during the 25th Fiscal Period, the amount of increase ismainly attributable to acquisition of two properties (CONCURRED Yokohama and Daiwa Kanda East) (42,300
million yen) and the amount of decrease is mainly attributable to divestment of Daiwa Meieki Building andShinjuku Maynds Tower (three-sevenths out of six-sevenths of co-ownership interest) (69,827 million yen) anddepreciation (1,772 million yen). For the 26th Fiscal Period, the amount of increase is mainly attributable toacquisition of three properties (Prime Kanda Building, Kita-Shinagawa Gotenyama Building and Sasazuka NA
Building) (20,295 million yen) and the amount of decrease is mainly attributable to depreciation (1,734 million
yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by external real estate appraisers.
The income (loss) for investment and rental properties are as presented in the aforementioned “Notes to Statements of Income.”[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
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]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.
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]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- 27 -

Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales figure to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
[Notes to Per Unit Information]
25th Fiscal Period
26th Fiscal Period[From: Dec. 1, 2017
[From: June 1, 2018
To: May 31, 2018]
To: Nov. 30, 2018]
Net assets per unit
515,730 yen
516,641 yen
Net income per unit
10,882 yen
11,997 yen(Note 1) Net income per unit is calculated by dividing net income by the average number of investment units during theperiod. The diluted net income per unit is not stated as there are no diluted investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
25th Fiscal Period
26th Fiscal Period[From: Dec. 1, 2017
[From: June 1, 2018
To: May 31, 2018]
To: Nov. 30, 2018]
Net income (thousand yen)
5,887,460
5,901,266
Amounts not attributable to common unitholders (thousand yen)－－
Net income attributable to common investment units (thousand yen)
5,887,460
5,901,266
Average number of investment units during the period (unit)
495,505
491,877[Notes to Significant Subsequent Events]
1. Acquisition of Assets
The Investment Corporation acquired trust beneficial interest in real estate on December 27, 2018 as follows.
Summary of Asset Acquired
Property name

Sasazuka South Building

Type of asset

Trust beneficial interest in domestic real estate (Note 1)

Location

1-64-8 Sasazuka, Shibuya-ku, Tokyo

Acquisition Price

3,000 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

December 19, 2018

Date of delivery

December 27, 2018

SellerNot disclosed (Note 2)(Note 1)
(Note 2)Trust beneficial interest in real estate of the Property is divided into two: (a) compartmentalized
ownership of the 1st to 7th floors and (b) compartmentalized ownership of the 8th floor.
Both sellers are domestic special purpose companies which have not agreed to disclose their names

2. Borrowing of Funds
The Investment Corporation borrowed funds on December 27, 2018 as below. The funds were borrowed to provide
for the acquisition of the new property listed above in “1. Acquisition of Assets,” etc.
Detail of Borrowings
LenderSumitomo Mitsui Banking
Corporation(Note)

Loan
Amount(million yen)Interest Rate

Borrowing
Date

Borrowing/
Repayment
MethodRepayment
Date

3,000

JBA 1-month
Japanese Yen
TIBOR+0.25%(Note)

December 27,
2018

Unsecured
Repaymentin lump sum

December 27,
2019

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
the applicable calculation period.

- 28 -

3.10. Increase (Decrease) in Number of Investment Units Issued and Outstanding
Since no capital increase, etc. were conducted in the 26th 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 26th 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
(Note 1)
41,092436,890
18,522
217,303
offering
Capital increase by way of a
July 30, 2014
(Note 2)4,110
441,000
1,852
219,155
third-party allotment
Capital increase through public
June 1, 2015
(Note 3)41,045
482,045
23,145242,301
offering
Capital increase by way of aJune 24, 2015
(Note 4)
1,955
484,000
1,102
243,403
third-party allotment
Capital increase through public
August 2, 2016
(Note 5)
12,700496,700
7,461
250,864
offering
Capital increase by way of a
August 31, 2016
(Note 6)
1,169
497,869686
251,551
third-party allotment
May 31, 2018 Cancellation(Note 7)
(5,992)491,877(3,675)
247,876(Note 1) The Investment Corporation issued new investment units through public offering at an issue price of 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.
(Note 7) In the period from March 1, 2018 to May 18, 2018, the Investment Corporation acquired own investment units throughmarket purchase at the Tokyo Stock Exchange based on a discretionary transaction agreement with a securities
company. The Investment Corporation cancelled all of the acquired own investment units (5,992 units) on May 31,
2018 based on the resolution at its Board of Directors meeting held on May 28, 2018.
4. Changes in Directors
As to changes in Directors, timely disclosure is made when details of disclosure are determined.

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period

5. Reference Information
5.1. Investment Status
Type of asset
Real estate

Trust beneficial
interest in real estate

26th Fiscal Period(As of November 30, 2018)
Total amount owned
As a percentage of(million yen) (Note 1)
total assets (%)

Use

RegionOfficeFive Central Wards of Tokyo(Note 2)

15,7483.3

Five Central Wards of Tokyo

349,06472.8

Greater Tokyo (Note 3)

79,422

16.6

Major Regional Cities(Note 4)

9,224

1.9

453,459

94.6

25,753

5.4

479,212100.0[453,459][94.6]

OfficeTotal
Deposits and other assets
Total amount of assets (Note 5)(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 Five Central Wards of Tokyo are Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards.
(Note 3) Greater Tokyo is Tokyo, Kanagawa, Chiba and Saitama Prefectures (excluding the Five Central Wards of Tokyo).
(Note 4) Major Regional Cities are the Osaka metropolitan area (Osaka, Kyoto and Hyogo Prefectures), Nagoya metropolitan
area (Aichi, Mie and Gifu Prefectures), and ordinance-designated cities and core cities set forth in the Local Autonomy
Act.
(Note 5) The figures in parentheses [ ] under “Total amount of assets” shows the portion of the applicable asset that, in effect,
corresponds to the holding of real estate properties. The amount of construction in progress (including constructionin progress in trust) is not included in the amount of real estate and trust beneficial interest in real estate.

- 30 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
5.2. Investment Real Estate Properties (As of November 30, 2018)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Carrying
Acquisition
amount
Type
of
price
RegionProperty namespecified asset (million yen) (million yen)
(Note 1)
(Note 2)
Daiwa Ginza
14,10012,990Real estate
Daiwa Ginza Annex
3,050
2,758
Daiwa Shibaura
8,265
8,005
Daiwa Minami-Aoyama
4,550
4,422
Daiwa Sarugakucho
3,190
3,177
Daiwa A Hamamatsucho (Note 5)
2,865
2,762
Daiwa Jingumae
2,800
2,702
Daiwa Shibadaimon
2,578
2,387
Daiwa Misakicho
2,346
2,139
Daiwa Shimbashi 510
2,080
2,134
Daiwa Tsukijiekimae
1,560
1,286
Daiwa Tsukiji
1,240
1,135
Daiwa Tsukishima
7,840
6,830
Daiwa Nihonbashi Horidomecho
2,520
2,450
Daiwa Azabudai
1,600
1,510
Daiwa Kyobashi
3,460
3,206
Daiwa Kojimachi 4-chome
2,910
2,835
Daiwa Onarimon
13,86013,504
Shinjuku Maynds Tower (Note 5)
66,90064,354
Daiwa SHIBUYA EDGE
5,900
5,642
Daiwa Kodenmacho
2,460
2,364
Daiwa Jimbocho
4,150
3,982
Daiwa Nishi-Shimbashi
5,000
4,708
Five
Daiwa
Kayabacho
Building
5,600
5,231
CentralTrust
Wards of Daiwa Jimbocho 3-chome
3,550
3,353
beneficial
Tokyo
interest
inreal
E SPACE TOWER
24,00023,594
estateDaiwa Nihonbashi Hongokucho
1,721
1,579
shinyon curumu
9,650
9,649
Daiwa Akasaka
9,200
10,296
Daiwa Shibuya Miyamasuzaka
7,000
7,187
Daiwa Azabu Terrace
14,00014,033
Daiwa Ebisu 4-chome
4,135
4,238
LAQUAS Higashi Shinjuku
8,450
8,467
Daiwa Aoyama
9,800
10,012
Shinsen Place
4,800
4,877
Glass City Shibuya
16,00015,950Daiwa River Gate
28,00027,932
Daiwa Hatchobori ekimae
2,871
2,934
Daiwa Hatchobori ekimae West
1,647
1,722
Daiwa Nishi-Shinjuku
13,71014,004
Kirin Nihonbashi Building
8,180
8,415
Daiwa Higashi-nihonbashi
6,370
6,314
Square Daikanyama Building
2,280
2,377
Shinjuku West Building
942
980
Daiwa Kanda Mikura-cho Building
1,592
1,597
Daiwa Kanda East
4,200
4,303
Prime Kanda Building
2,295
2,381
Sasazuka NA Building
15,50016,079Total for Five Central Wards of Tokyo
370,717364,813(48 Properties)- 31 -

Estimated price at Investment
end of periodratio(million yen)(%)
(Note 3)(Note 4)
17,400
3.1
3,860
0.7
7,880
1.8
4,640
1.0
3,850
0.7
3,700
0.6
2,620
0.6
3,250
0.6
2,870
0.5
2,530
0.5
2,000
0.3
1,610
0.3
10,500
1.7
2,750
0.5
1,940
0.3
3,450
0.8
2,880
0.6
13,7003.0
63,000
14.6
5,210
1.3
2,230
0.5
3,680
0.9
6,860
1.1
8,190
1.2
5,220
0.8
34,700
5.2
2,580
0.4
15,9002.1
15,0002.0
10,3001.5
17,200
3.0
6,090
0.9
10,9001.8
12,400
2.1
6,720
1.0
18,4003.5
31,700
6.1
3,360
0.6
1,850
0.4
15,900
3.0
8,290
1.8
6,860
1.4
3,370
0.5
1,210
0.2
1,740
0.3
5,340
0.9
2,710
0.5
16,1003.4
434,440

80.6

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
Carrying
Acquisition
amountType ofprice
specified asset (million yen) (million yen)
(Note 1)
(Note 2)
Daiwa Higashi-Ikebukuro
2,958
2,644
Daiwa Shinagawa North
7,710
7,143
Daiwa Osaki 3-chome
1,650
1,594
Trust
Daiwa Kamiooka
2,000
1,893
beneficial
Greater Integral Tower
15,22015,832interest in realTokyo
Daiwa Meguro Square
5,600
5,516
estateDaiwa Ogikubo
3,800
3,989
CONCURRED Yokohama (Note 5)
38,10038,217Kita-Shinagawa Gotenyama Building
2,500
2,588
Total for Greater Tokyo (9 properties)
79,53879,422Trust
Majorbeneficial
Regional Daiwa Kitahama
9,481
9,224
interest in real
CitiesestateTotal for Major Regional Cities (1 property)
9,481
9,224
Total (58 properties)
459,736
453,459
RegionProperty name

Estimated price at Investment
end of periodratio(million yen)(%)
(Note 3)(Note 4)
4,070
0.6
6,180
1.7
2,350
0.4
2,830
0.4
21,500
3.3
6,820
1.2
4,610
0.8
39,900
8.3
2,630
0.5
90,89017.3
11,7002.1

11,700537,0302.1
100.0(Note 1) Acquisition price is excluding acquisition costs, fixed property tax, city planning tax, consumption tax and local
consumption tax.
(Note 2) Carrying amount is the book value after depreciation as of November 30, 2018.
(Note 3) Estimated price at end of period is the price as of November 30, 2018 stated in appraisal reports prepared by realestate appraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation& Advisory K.K. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 4) Investment ratio is the acquisition price of each property expressed as a percentage of the total amount of acquisition
prices, rounded to one decimal place.
(Note 5) For Daiwa A Hamamatsucho Building, Shinjuku Maynds Tower and CONCURRED Yokohama, the figures arethose pertaining to the Investment Corporation’s ownership interest.

- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
5.2.2. Summary of Building and Leasing of Investment Real Estate
RegionProperty nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho (Note 8)
Daiwa A Hamamatsucho
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho (Note 8)
Daiwa Shimbashi 510
Daiwa Tsukijiekimae
Daiwa Tsukiji
Daiwa Tsukishima
Daiwa Nihonbashi
Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Five Central
Wards ofDaiwa Kojimachi 4-chomeTokyo
Daiwa Onarimon
Shinjuku Maynds Tower(Note 9)Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho Building(Note 8)Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi
Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya
Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome(Note 8)LAQUAS Higashi Shinjuku

Structureandnumber offloors(Note 1)SRC
B3 / 12F
SRC
B3 / 8F
SRC
B1 / 12FS / SRC
B2 / 5F
SRC
8F
SRC
B2 / 10FRC
B1 / 4F
SRC / RC
B1 / 7F
S
8F
SRC
B1 / 8F
SRC
10F
SRC
B1 / 7F
S
5F
SRC
B2 / 7F
SRC
B2 / 9F
SRC
B1 / 8F
SRC
B2 / 9F
SRC
9F
S / SRC
B3 / 34F
RC
B1 / 9F
SRC
8FS
B1 / 8F
SRC
B1 / 10F
S / SRC
B1 / 8F
S
9F
S / SRC
B1 / 15F
S
8F
S / RC
B2 / 11F
SRC
B2 / 7FS
B1 / 12F
S / RC
B1 / 6F
SRC
B1 / 9F
S
10F

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

Rent revenue
during current
period(thousand yen)
(Note 7)

July 1963

8,114.93

8,114.93

26

100.0

400,727

Aug. 1972

2,032.11

2,032.11

7

100.0

96,374Oct. 1987

9,619.67

9,456.31

52

98.3

259,747

Sept. 1990

2,715.54

2,715.545

100.0

124,760

June 1985

3,657.43

3,657.432

100.0(Not disclosed)

July 1993

3,663.38

3,663.38

12

100.0

133,551

Dec. 1997

2,198.61

1,726.65

4

78.5

65,739Nov. 1996

2,386.48

2,386.48

6

100.0

87,641

July 1996

2,137.53

2,137.531

100.0(Not disclosed)

Apr. 1974

2,595.76

2,595.76

7

100.0

77,239Jan. 1996

2,659.59

2,659.59

6

100.0

60,621

Jan. 1990

1,487.44

1,487.445

100.0

51,766

July 1996

8,425.69

8,425.69

4

100.0

281,985

Apr. 1993

2,850.81

2,850.818

100.0

80,201

Apr. 1984

1,697.88

1,697.88

11

100.0

52,039Oct. 1974

3,265.83

3,265.83

10

100.0

104,723

Oct. 1987

2,695.31

2,695.31

7

100.0

87,363Apr. 1973

11,614.92

11,189.69

796.3

355,291

Sept. 1995

22,754.54

22,738.41

40

99.9

1,324,664

Aug. 2006

2,480.65

2,480.65

5

100.0

128,849

Mar. 1985

2,379.31

2,379.31

8

100.0

65,777Mar. 1997

3,164.26

3,164.26

7

100.0

109,115

July 1993

4,815.84

4,815.84

11

100.0

176,290

Apr. 2010

5,899.11

5,899.111

100.0(Not disclosed)

Feb. 2010

2,889.34

2,889.348

100.0

113,890

Oct. 2002

13,960.87

13,030.87

11

93.3

739,614

May 2010

2,143.08

2,143.08

5

100.0

71,583Jan. 2012

6,751.31

6,751.31

18

100.0

372,712

Sept. 1990

8,747.39

8,747.39

17

100.0

351,389

Dec. 1988

6,328.94

6,328.948

100.0

264,939

Sept. 2009

13,234.39

13,192.63

11

99.6

485,183

Dec. 1997

2,951.70

2,951.701

100.0(Not disclosed)

Aug. 2010

7,498.33

7,498.33

4

100.0

234,120- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
StructureandRegionProperty namenumber offloors(Note 1)
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
Daiwa Hatchobori ekimae
SRC
West
B1 / 9F
SRC / RC /Daiwa Nishi-Shinjuku
S
B2 / 11F
Kirin Nihonbashi Building
S / SRC
7F(Note 8)Daiwa Higashi-nihonbashi
S
7F
Building
Square Daikanyama Building
S
6F(Note 8)RC
Shinjuku West Building
4F
Daiwa Kanda Mikura-cho
SRC / S
B1 / 7F
Building
S
Daiwa Kanda East
9F
S / RC
Prime Kanda Building
B1 / 10F
SRC / RC /Sasazuka NA BuildingS
B2 / 18F
Total for Five Central Wards of Tokyo (48 properties)
SRC / S
Daiwa Higashi-Ikebukuro
B1 / 9F
SRC
Daiwa Shinagawa North
B1 / 11F
S / RC
Daiwa Osaki 3-chome
B1 / 6F
S / SRC
Daiwa Kamiooka
B3 / 7F
Greater
S / SRC
Integral Tower (Note 10)
Tokyo
B2 / 18FS / SRC
Daiwa Meguro Square
B2 / 14F
SRC
Daiwa Ogikubo
B1 / 7F
CONCURRED Yokohama
S / SRC(Note 11)
B1 / 20F
Kita-Shinagawa Gotenyama
SRC / S
Building
8F
Total for Greater Tokyo (9 properties)
Major
S / SRC
Regional Daiwa Kitahama
B1 / 16F
CitiesTotal for Major Regional Cities (1 property)
Total (58 properties)

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

Rent revenue
during current
period(thousand yen)
(Note 7)

Nov. 2001

4,426.10

4,050.68

6

91.5

243,840

Sept. 2001

2,811.35

2,811.351

100.0(Not disclosed)

Feb. 2004

8,566.73

8,566.739

100.0

423,416

Feb. 1994

32,055.85

31,845.09

91

99.3

1,064,809

Feb. 2006

2,622.42

2,622.42

9

100.0

83,426

Feb. 1996

1,723.15

1,723.158

100.0

47,062

Aug. 1991

6,967.61

6,967.61

7

100.0

338,267

Feb. 1999

5,630.17

5,630.171

100.0(Not disclosed)

Mar. 2008

5,015.88

5,015.88

5

100.0

174,957

Mar. 2001

1,588.35

1,588.351

100.0(Not disclosed)

Mar. 1989

1,120.58

1,110.49

8

99.0

38,454Jan. 1991

1,719.51

1,719.51

7

100.0

49,695

Feb. 2005

3,980.56

3,980.56

5

100.0

127,965

Aug. 1990

2,211.64

2,211.64

9

100.0

48,804

Feb. 1993

16,160.25

16,160.25

5

100.0

73,675

276,418.12

273,773.41

507

99.0

10,420,502

June 1993

4,461.47

4,461.478

100.0

131,744

July 1991

6,548.17

6,548.17

11

100.0

199,637

Sept. 2007

1,786.06

1,786.06

5

100.0

65,729

May 2011

2,630.30

2,630.30

9

100.0

93,196

June 1993

17,778.14

17,778.14

9

100.0

644,854

July 2009

3,519.50

3,519.50

16

100.0

158,434

Nov. 1990

3,849.63

3,849.63

12

100.0

127,346

Feb. 2008

28,052.98

27,882.89

35

99.3

942,799

July 1992

2,396.96

1,406.25

4

58.6

21,55071,023.21

69,862.41

109

98.3

2,385,293

13,517.62

13,517.62

8

100.0

358,318

13,517.62
360,958.95

13,517.62
357,153.44

8
624

100.0
98.9

358,318
13,164,114

Feb. 2008(Note 1) “Structure and number of floors” are the entries in the real estate registry of the building of the applicable
investment real estate property. “S” refers to steel-framed structure, “RC” refers to reinforced concrete structure,“SRC” refers to steel-framed reinforced concrete structure, “B” refers to floors below ground and “F” refers tofloors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment realestate property.
(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, 2018.
(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, 2018.

- 34 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period(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 26th Fiscal Period, rounded down to the nearest thousand yen.
(Note 8) Not shown for such reasons as consent was not obtained from major tenants to disclose the rent revenue during
current period for the properties.
(Note 9) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the co-ownershipinterest corresponding to three-sevenths of the entire property. Accordingly, leasable floor area and leased floor area
are the floor areas corresponding to three-sevenths of the entire building.
(Note 10) The buildings consist of three registrations. Of these, the details of the major building are shown here.
(Note 11) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the quasi
co-ownership interest corresponding to 75% of the entire property. Accordingly, leasable floor area and leased floorarea are the floor areas corresponding to 75% of the entire building.

- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A. Scheduled Capital Expenditures for the 26th 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)
Integral Tower(Suginami-ku, Tokyo)
Daiwa Shibuya
Miyamasuzaka(Shibuya-ku, Tokyo)
Daiwa Higashi-Ikebukuro(Toshima-ku, Tokyo)
Daiwa Kojimachi 4-chome(Chiyoda-ku, Tokyo)
Daiwa A Hamamatsucho(Minato-ku, Tokyo)

Expected construction amount (million yen)
Scheduled
implementation
Amount paid
Total amount
Total amountperiodduring current period
already paid
From: Jun. 2018
277
986
To
Jul. 2019

PurposeUpgrading of air-conditioning system(West side)
Repair of exterior walls
Repair of exterior walls
Repair of exterior walls
Repair of exterior walls

From:
To

Mar. 2018
Jan. 2019

From:
To
From:
To
From:
To

Feb. 2019
May 2019
Feb. 2019
May 2019
Nov. 2018
May 2019

256

-

19

50

-

-

45

-

-

40

-

-

B. Capital Expenditures during the 26th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the26th Fiscal Period. Capital expenditures for the 26th Fiscal Period amounted to 1,738 million yen and, when combinedwith the 472 million yen in repair expenses charged to the 26th Fiscal Period expenses, totals 2,211 million yen in
construction work were implemented.
Name of real estate properties(Location)
Daiwa Akasaka(Minato-ku, Tokyo)
Daiwa Onarimon(Minato-ku, Tokyo)
Kirin Nihonbashi Building(Chuo-ku, Tokyo)
Other

PurposeConstruction amount paid
(million yen)

Period
From:
To
From:
To
From:
To

Upgrading of air-conditioning system
Upgrading of air-conditioning system
Upgrading of air-conditioning system

Nov. 2016
Jun. 2018
Jun. 2018
Nov. 2018
Jun. 2018
Nov. 2018

911
186
154
485
1,738

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)
22nd
23rd
24th
25th
26th
FiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscal period[From: June 1, 2016
To: Nov. 30, 2016]

Balance of reserve at
beginning of current
periodAmount of reserve incurrent period
Reversal of reserve incurrent period
Amount carried forward
to next period[From: Dec. 1, 2016
To: May 31, 2017][From: June 1, 2017
To: Nov. 30, 2017][From: Dec. 1, 2017
To: May 31, 2018][From: June 1, 2018
To: Nov. 30, 2018]

1,843

2,043

1,900

1,839

1,576

524

84

1,417

－

476

324

227

1,478

263

423

2,043

1,900

1,839

1,576

1,629

- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
5.2.4. Summary of Estimated Price at End of Period (As of November 30, 2018)

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
Shinsen Place
Glass City Shibuya
Daiwa River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Daiwa Nishi-Shinjuku
Kirin Nihonbashi Building
Daiwa Higashi-nihonbashi
Building
Square Daikanyama Building(Note 5)
Shinjuku West Building

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

Summary of Appraisal Report
Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminalrate
cap rate
(%)
(%)
3.3
3.7
3.3
3.7
3.8
4.2
3.6
4.0
4.2
4.6

17,400
3,860
7,880
4,640
3,850

17,700
3,850
7,900
4,690
3,900

3.5
3.5
4.0
3.8
4.4

17,000
3,860
7,870
4,580
3,790

3,700

3,760

3.7

3,670

3.5

3.9

2,620
3,250
2,870
2,530
2,000
1,610
10,500
2,750
1,940
3,450
2,880
13,700

2,640
3,320
2,910
2,550
2,010
1,610
10,600
2,810
1,970
3,500
2,900
14,000

3.8
3.6
3.9
4.0
4.2
4.1
4.1
4.0
3.9
4.0
3.7
3.8

2,600
3,220
2,850
2,500
2,000
1,610
10,400
2,690
1,900
3,400
2,860
13,400

3.6
3.4
3.7
3.8
4.2
4.1
3.8
3.8
3.7
3.8
3.5
3.6

4.0
3.8
4.1
4.2
4.4
4.3
4.3
4.2
4.1
4.2
3.9
4.0

63,000150,000

3.2

144,000

3.0

3.4

5,210
2,230
3,680
6,860
8,190
5,220
34,7002,580
15,90015,00010,30017,200
6,090
10,90012,4006,720
18,40031,7003,360
1,850
15,900
8,290

5,310
2,240
3,690
7,000
8,320
5,360
35,4002,610
16,20015,30010,40017,5006,020
11,20012,7006,830
18,60031,8003,490
1,920
16,500
8,440

3.7
4.2
3.9
3.5
3.3
3.3
3.2
3.9
3.2
3.2
3.5
3.7
3.7
3.3
3.2
3.3
3.5
3.9
3.5
3.6
3.3
3.9

5,100
2,220
3,670
6,800
8,130
5,160
33,9002,570
15,80014,90010,10016,900
6,120
10,70012,2006,670
18,10031,5003,310
1,820
15,700
8,130

3.5
4.0
3.9
3.3
3.1
3.1
3.0
3.7
3.0
3.0
3.3
3.5
3.8
3.1
3.0
3.2
3.2
3.6
3.3
3.4
3.1
3.6

3.9
4.4
4.1
3.7
3.5
3.5
3.4
4.1
3.4
3.4
3.7
3.9
3.9
3.5
3.4
3.5
3.6
4.0
3.7
3.8
3.5
4.0

6,860

7,020

3.9

6,790

3.7

4.1

3,370

3,460

3.4

3,330

3.4

3.6

1,210

1,220

3.8

1,200

3.6

4.0

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period

Property name

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

Summary of Appraisal Report
Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminalrate
cap rate(%)(%)

Daiwa Kanda Mikura-cho
1,740
1,750
4.0
1,740
4.0
4.2
Building
Daiwa Kanda East
5,340
5,370
3.7
5,300
3.4
3.8
Prime Kanda Building
2,710
2,790
3.7
2,680
3.7
3.9
Sasazuka NA Building
16,10016,8003.9
15,800
3.7
4.1
Daiwa Higashi-Ikebukuro
4,070
4,130
4.1
4,040
3.9
4.3
Daiwa Shinagawa North
6,180
6,280
4.2
6,070
4.0
4.4
Daiwa Osaki 3-chome
2,350
2,370
3.8
2,340
3.6
4.0
Daiwa Kamiooka
2,830
2,850
4.5
2,820
4.3
4.7
Integral Tower
21,50021,6003.7
21,400
3.5
3.9
Daiwa Meguro Square
6,820
6,970
3.5
6,750
3.3
3.7
Daiwa Ogikubo
4,610
4,680
3.9
4,580
3.7
4.1
CONCURRED Yokohama
39,90041,2004.3
39,3004.1
4.5(Note 6)Kita-Shinagawa Gotenyama
2,630
2,710
4.0
2,600
3.8
4.2
Building
Daiwa Kitahama
11,70012,0003.8
11,600
3.6
4.0
Total
537,030
632,650
612,040(Note 1) “Estimated price at end of period” is the price as of November 30, 2018 stated in appraisal reports prepared by realestate appraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation& Advisory K.K. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 2) For Daiwa A Hamamatsucho, the prices are those pertaining to the Investment Corporation’s ownership interest.
(Note 3) Discount rate for Daiwa Tsukijiekimae is the figure after the 2nd fiscal year (4.1% for the 1st fiscal year).
(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment
Corporation’s ownership interest, and the price indicated by the direct capitalization method and price indicated by
the DCF method are the prices pertaining to the entire Property.
(Note 5) Discount rate for Square Daikanyama Building is the figure after the 11th fiscal year (3.5% up to the 10th fiscal
year).
(Note 6) For CONCURRED Yokohama, Price indicates a price pertaining to the Investment Corporation’s ownershipinterest.

- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
5.2.5. Status of Income (Loss), etc. of Individual Properties
The following table lists the status of income (loss), etc. of each property for the 26th Fiscal Period (from June 1, 2018 toNovember 30, 2018). Income (loss) information is presented in accordance with “3. Financial Statements; 3.7. Notes to
Significant Accounting Policies” outlined earlier.
RegionProperty name

Daiwa
Ginza

Daiwa
Ginza Annex

Daiwa
Shibaura

Daiwa
MinamiAoyama

Daiwa
Sarugakucho(Note 3)Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

Investment ratio (%)

14,100

3,050

8,265

4,550

3,190

3.1

0.7

1.8

1.0

0.7

Carrying amount (million yen)

12,990

2,758

8,005

4,422

3,177

Estimated price at end of period(million yen)

17,400

3,860

7,880

4,640

3,850

Total number of tenants (Note 1)

26

7

52

5

2

Leasable floor area (m2)

8,114.93

2,032.11

9,619.67

2,715.54

3,657.43

Leased floor area (m2)

8,114.93

2,032.11

9,456.31

2,715.54

3,657.43

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

100.0

100.0

Occupancy rate (%)
Leasing
information

89.3

100.0

99.1

End of May 2018

95.0

100.0

99.1

84.8

100.0

End of Nov. 2018

100.0

100.0

98.3

100.0

100.0

183

183

183

183

183

400,727

96,374

261,440

124,760(Not disclosed)

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

Income (loss)
information

400,727

96,374

259,747

124,760(Not disclosed)

Other lease business revenue

－

－

1,693

－

(Not disclosed)

Total property leasing expenses (B)(thousand yen)

169,145

49,342

92,20746,508(Not disclosed)

Consignment expenses

18,692

7,153

15,966

7,937(Not disclosed)

Utilities expenses

29,614

7,513

20,181

8,115(Not disclosed)

Taxes and dues

29,743

9,755

20,495

12,479(Not disclosed)

376

87

345

136

(Not disclosed)

Repair expenses

2,686

14,560

5,367

3,352

(Not disclosed)

Depreciation (C)74,887

10,27029,851

14,486(Not disclosed)－－(Not disclosed)

Non-life insurance expenses

Other lease business expenses

Reference
information

13,144－

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

231,581

47,031

169,232

78,251(Not disclosed)

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

306,468

57,302

199,084

92,73894,039

Capital expenditures (F) (thousand
yen)

211

914

20,606

11,192

376

NCF [(E) – (F)] (thousand yen)306,256

56,387

178,477

81,546

93,663

Expense rate (%) [(B) ÷ (A)]

42.21

51.20

35.27

37.28

(Not disclosed)

59,44019,36140,45824,49814,149346,060

86,510347,210

185,215

171,199

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
A Hamamatsucho

Daiwa
Jingumae

Daiwa
Shibadaimon

Daiwa
Misakicho(Note 3)Daiwa
Shimbashi 510

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

2,865

2,800

2,578

2,346

2,080

Investment ratio (%)

0.6

0.6

0.6

0.5

0.5

Carrying amount (million yen)

2,762

2,702

2,387

2,139

2,134

Estimated price at end of period(million yen)

3,700

2,620

3,250

2,870

2,530

Total number of tenants (Note 1)

12

4

6

1

7

Leasable floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,595.76

Leased floor area (m2)

3,663.38

1,726.65

2,386.48

2,137.53

2,595.76

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

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

78.5

100.0

100.0

100.0

183

183

183

183

183

133,551

65,73987,641(Not disclosed)

77,239

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

133,551

65,73987,641(Not disclosed)

77,239Other lease business revenue

－

－

－

(Not disclosed)－

Total property leasing expenses (B)(thousand yen)

75,93428,93432,304(Not disclosed)

29,819Consignment expenses

10,282

7,456

6,972

(Not disclosed)

7,740

Utilities expenses

9,320

4,776

7,021

(Not disclosed)

6,161

Taxes and dues

9,049

6,736

6,567

(Not disclosed)

6,051

160

74

108

(Not disclosed)

111

Non-life insurance expenses
Repair expenses

2,594

649

712

(Not disclosed)

520

Depreciation (C)15,1279,233

10,921(Not disclosed)

9,234

Other lease business expenses

29,4007－(Not disclosed)－

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

57,61736,80455,337(Not disclosed)

47,419

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

72,74546,037

66,25964,431

56,654

Capital expenditures (F) (thousand
yen)

－

450

－

－

2,115

NCF [(E) – (F)] (thousand yen)

72,74545,587

66,25964,43154,538

Expense rate (%) [(B) ÷ (A)]

56.86

44.01

36.86

(Not disclosed)

38.61

17,93913,473

12,795

10,752

12,070100,430

117,930

150,927

182,856

169,555

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Tsukijiekimae

Daiwa
Tsukiji

Daiwa
Tsukishima

Daiwa
Nihonbashi
Horidomecho

Daiwa
Azabudai

Acquisition dateJan. 2006

Jan. 2006

Mar. 2006

May 2006

May 2006

Acquisition price (million yen)

1,560

1,240

7,840

2,520

1,600

Investment ratio (%)

0.3

0.3

1.7

0.5

0.3

Carrying amount (million yen)

1,286

1,135

6,830

2,450

1,510

Estimated price at end of period(million yen)

2,000

1,610

10,500

2,750

1,940

Total number of tenants (Note 1)

6

5

4

8

11

Leasable floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

Leased floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

End of Nov. 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

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

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)

60,621

54,981

281,985

80,91752,039Rent revenue – real estate

Income (loss)
information

60,621

51,766

281,985

80,201

52,039Other lease business revenue

－

3,215

－

716

－

Total property leasing expenses (B)(thousand yen)

32,22336,770101,869

35,08822,796

Consignment expenses

7,166

3,540

11,638

6,400

4,344

Utilities expenses

6,330

2,834

15,956

4,828

3,598

Taxes and dues

5,235

4,056

14,265

6,993

5,081

261

118

66

Non-life insurance expenses

87

56

Repair expenses

74

18,656

2,103

1,429

470

Depreciation (C)13,311

7,626

57,643

15,318

9,234

Other lease business expenses

Reference
information

18

－

－

－

－

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

28,397

18,210180,116

45,82829,243

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

41,70925,836

237,760

61,14738,477

Capital expenditures (F) (thousand
yen)

10,199

1,008

420

113

3,752

NCF [(E) – (F)] (thousand yen)

31,50924,828237,340

61,03334,725

Expense rate (%) [(B) ÷ (A)]

53.16

66.88

36.13

43.36

43.81

10,4298,053

28,53013,738

10,140120,530

109,848

102,930

234,846

108,280

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
KyobashiDaiwa
Kojimachi
4-chomeDaiwa
OnarimonShinjuku Maynds
Tower(Note 4)

Daiwa
SHIBUYAEDGE

Acquisition dateJul. 2006

Oct. 2006

Dec. 2006

Jul. 2007 andNov. 2007

Jul. 2007

Acquisition price (million yen)

3,460

2,910

13,86066,9005,900

Investment ratio (%)

0.8

0.6

3.0

14.6

1.3

Carrying amount (million yen)

3,206

2,835

13,50464,354

5,642

Estimated price at end of period(million yen)

3,450

2,880

13,70063,0005,210

Total number of tenants (Note 1)

10

7

7

40

5

Leasable floor area (m2)

3,265.83

2,695.31

11,614.92

22,754.54

2,480.65

Leased floor area (m2)

3,265.83

2,695.31

11,189.69

22,738.41

2,480.65

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

87.9

100.0

100.0

96.6

100.0

End of May 2018

100.0

100.0

100.0

99.8

100.0

End of Nov. 2018

100.0

100.0

96.3

99.9

100.0

183

183

183

183

183

104,723

87,363355,291

1,324,664

128,849

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

104,723

87,363355,291

1,324,664

128,849

Other lease business revenue

－

－

－

－

－

Total property leasing expenses (B)(thousand yen)

44,19044,347139,214600,376

38,896

Consignment expenses

5,851

5,106

15,427

81,565

6,286

Utilities expenses

9,366

7,761

24,019139,004

7,775

Taxes and dues

7,482

16,05537,770172,096

7,587

115

129

361

1,633

94

Non-life insurance expenses
Repair expenses

1,443

1,490

28,8392,908

424

Depreciation (C)19,93013,80432,794200,933

16,727

Other lease business expenses

Reference
information

－

－

－

2,235

－

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

60,53343,015

216,077

724,287

89,952

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

80,46456,819248,872925,220

106,680

Capital expenditures (F) (thousand
yen)

737

3,252

189,530

17,012

3,810

NCF [(E) – (F)] (thousand yen)

79,72653,56759,342908,208

102,870

Expense rate (%) [(B) ÷ (A)]

42.20

50.76

39.18

45.32

30.19

14,85931,86575,490257,627

15,171

140,200

169,753459,880

4,460,870

62,460

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Kodenmacho

Daiwa
Jimbocho

Daiwa
NishiShimbashi

Daiwa
Kayabacho
Building(Note 3)

Daiwa
Jimbocho
3-chomeAcquisition dateAug. 2007

Mar. 2010

Aug. 2010

Mar. 2011

Mar. 2011

Acquisition price (million yen)

2,460

4,150

5,000

5,600

3,550

Investment ratio (%)

0.5

0.9

1.1

1.2

0.8

Carrying amount (million yen)

2,364

3,982

4,708

5,231

3,353

Estimated price at end of period(million yen)

2,230

3,680

6,860

8,190

5,220

Total 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. 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

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

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)

65,777109,205

176,290(Not disclosed)

113,890

65,777

Rent revenue – real estate

Income (loss)
information

109,115

176,290(Not disclosed)

113,890

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

－

90

－

(Not disclosed)－

25,39348,093

81,226(Not disclosed)

48,421

Consignment expenses

5,299

6,016

15,449(Not disclosed)

7,994

Utilities expenses

5,216

7,625

12,623(Not disclosed)

8,482

Taxes and dues

3,792

11,534

16,245(Not disclosed)

9,843

Non-life insurance expenses

84

121

218

(Not disclosed)

111

Repair expenses

445

1,668

1,561

(Not disclosed)

2,153

Depreciation (C)9,731

21,08735,128(Not disclosed)

19,836822

40－(Not disclosed)－

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

40,383

61,112

95,064(Not disclosed)

65,469

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

50,11582,199130,192

148,169

85,305

Capital expenditures (F) (thousand
yen)

－

298

8,771

426

－

NCF [(E) – (F)] (thousand yen)

50,115

81,901

121,421

147,743

85,305

Expense rate (%) [(B) ÷ (A)]

38.61

44.04

46.08

(Not disclosed)

42.52

7,585

22,77932,18525,63919,653

100,234

128,200

187,580

125,988(Note 5)82,470

Other lease business expenses

Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionProperty name

E-SPACE
TOWER

Daiwa
Nihonbashi
Hongokucho

shinyoncurumuDaiwa
AkasakaDaiwa
ShibuyaMiyamasuzaka

Acquisition dateJul. 2011

May 2012

Dec. 2012 andApr. 2013

Aug. 2013

Sep. 2013

Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

24,000

1,721

9,650

9,200

7,000

5.2

0.4

2.1

2.0

1.5

Carrying amount (million yen)

23,594

1,579

9,649

10,296

7,187

Estimated price at end of period(million yen)

34,7002,580

15,90015,00010,300Total number of tenants (Note 1)

Investment ratio (%)

11

5

18

17

8

Leasable floor area (m2)

13,960.87

2,143.08

6,751.31

8,747.39

6,328.94

Leased floor area (m2)

13,030.87

2,143.08

6,751.31

8,747.39

6,328.94

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

End of May 2018

100.0

100.0

99.5

100.0

100.0

End of Nov. 2018

93.3

100.0

100.0

100.0

100.0

183

183

183

183

183

739,61471,583372,712351,389

269,737

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

739,61471,583372,712351,389

264,939

Other lease business revenue

－

－

－

－

4,797

Total property leasing expenses (B)(thousand yen)

258,907

25,233

124,037

364,942

98,807

Consignment expenses

60,4193,366

25,051

31,96038,739

Utilities expenses

57,942

3,347

26,75830,613

15,402

Taxes and dues

59,645

4,538

35,212

34,40021,138

577

69

288

364

256

Non-life insurance expenses
Repair expenses

6,981

618

245

209,072

1,151

Depreciation (C)73,26913,29336,48158,53022,119Other lease business expenses

Reference
information

72

－

－

－

－

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

480,707

46,349248,675

13,553)

170,929

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

553,976

59,642

285,157

44,977

193,049

Capital expenditures (F) (thousand
yen)

57,144－

1,262

932,683

9,222

NCF [(E) – (F)] (thousand yen)

496,832

59,642283,894

887,706)

183,826

Expense rate (%) [(B) ÷ (A)]

35.01

35.25

33.28

－

36.63

119,252

9,055

70,37968,72942,224574,150

50,940166,089

327,392

457,625

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionProperty name

Daiwa
Azabu Terrace

Daiwa
Ebisu 4-chome(Note 3)LAQUAS
HigashiShinjuku

Daiwa
AoyamaShinsen Place(Note 3)Acquisition dateJul. 2014

Dec. 2014

Dec. 2014

Mar. 2015

Mar. 2015

Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

14,000

4,135

8,450

9,800

4,800

3.0

0.9

1.8

2.1

1.0

Carrying amount (million yen)

14,033

4,238

8,467

10,012

4,877

Estimated price at end of period(million yen)

17,200

6,090

10,90012,4006,720

Investment ratio (%)

Total number of tenants (Note 1)

11

1

4

6

1

Leasable floor area (m2)

13,234.39

2,951.70

7,498.33

4,426.10

2,811.35

Leased floor area (m2)

13,192.63

2,951.70

7,498.33

4,050.68

2,811.35

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

End of May 2018

99.6

100.0

100.0

100.0

100.0

End of Nov. 2018

99.6

100.0

100.0

91.5

100.0

183

183

183

183

183

485,183(Not disclosed)

234,120259,612(Not disclosed)

485,183(Not disclosed)

234,120

243,840(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)－

15,772(Not disclosed)

Total property leasing expenses (B)(thousand yen)

172,797(Not disclosed)

81,26354,222(Not disclosed)

Consignment expenses

32,235(Not disclosed)

9,918

11,429(Not disclosed)

Utilities expenses

51,852(Not disclosed)

15,011

8,483(Not disclosed)

Taxes and dues

33,088(Not disclosed)

21,095

13,446(Not disclosed)

Non-life insurance expenses

517(Not disclosed)

267

132

(Not disclosed)

Repair expenses

3,213(Not disclosed)

2,008

1,170

(Not disclosed)

Depreciation (C)51,789(Not disclosed)

32,735

19,560(Not disclosed)(Not disclosed)

Other lease business expenses

Reference
information

99(Not disclosed)

226－

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

312,386(Not disclosed)

152,857

205,389(Not disclosed)

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

364,176

141,069

185,593

224,949

125,085

Capital expenditures (F) (thousand
yen)

4,219

737

15,547

325

716

NCF [(E) – (F)] (thousand yen)

359,957

140,331

170,046

224,624

124,369

Expense rate (%) [(B) ÷ (A)]

35.61

(Not disclosed)

34.71

20.89

(Not disclosed)

65,86019,232

41,872

26,892

17,099325,054

115,410

125,440

97,530112,510Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionFive Central Wards of Tokyo

Property nameGlass City
Shibuya

Daiwa
River Gate

Daiwa
Hatchobori
ekimaeDaiwa
Hatchobori
ekimae West

Daiwa
Nishi-Shinjuku

Acquisition date

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)

3.5

6.1

0.6

0.4

3.0

15,95027,932

2,934

1,722

14,004

Estimated price at end of period(million yen)

18,40031,700

3,360

1,850

15,900Total number of tenants (Note 1)

9

91

9

8

7

Leasable floor area (m )8,566.73

32,055.85

2,622.42

1,723.15

6,967.61

Leased floor area (m2)

8,566.73

31,845.09

2,622.42

1,723.15

6,967.61

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

End of May 2018

100.0

99.4

100.0

100.0

100.0

End of Nov. 2018

100.0

99.3

100.0

100.0

100.0

183

183

183

183

183

423,416

1,068,211

83,42647,062

338,267

423,416

1,064,809

83,42647,062

338,2672

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

－

3,402

－

－

－

Total property leasing expenses (B)(thousand yen)

112,852

470,828

34,754

16,930104,080

Consignment expenses

17,903

83,834

7,384

4,444

15,386

Utilities expenses

30,614130,113

7,292

2,972

20,485

Taxes and dues

28,551

103,439

9,263

4,220

37,451

Non-life insurance expenses

320

1,546

112

57

272

Repair expenses

2,353

22,583390

209

11,084

Depreciation (C)33,110129,311

10,3105,026

19,399Other lease business expenses

Reference
information

－

－

－

－

－

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

310,564

597,383

48,67230,131

234,186

NOI (E) [(D) + (C)] (thousand yen)343,674

726,695

58,98235,157

253,586

Capital expenditures (F) (thousand
yen)

3,956

60,102－

1,199

76,190

NCF [(E) – (F)] (thousand yen)339,718

666,592

58,982

33,958177,396

Expense rate (%) [(B) ÷ (A)]

26.65

44.08

41.66

35.98

30.77

56,600202,022

18,341

8,377

74,448202,340

1,970,900

114,190

84,620284,170

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionProperty nameAcquisition date

Price
information

Five Central Wards of Tokyo
Kirin Nihonbashi
Daiwa
Building
Higashi-nihonbashi(Note 3)
Building
May 2016

Jun. 2016

SquareDaikanyama
Building(Note 3)

Shinjuku West
Building

Daiwa
Kanda Mikura-cho
Building

Jun. 2016

Jul. 2016

Dec. 2016

Acquisition price (million yen)

8,180

6,370

2,280

942

1,592

Investment ratio (%)

1.8

1.4

0.5

0.2

0.3

Carrying amount (million yen)

8,415

6,314

2,377

980

1,597

Estimated price at end of period(million yen)

8,290

6,860

3,370

1,210

1,740

Total 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

1,110.49

1,719.51

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

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

99.0

100.0

183

183

183

183

183

Occupancy rate (%)
Leasing
information

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

Income (loss)
information(Not disclosed)

174,957(Not disclosed)

38,454

49,695

Rent revenue – real estate(Not disclosed)

174,957(Not disclosed)

38,454

49,695

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

Total property leasing expenses (B)(thousand yen)

(Not disclosed)

56,811(Not disclosed)

20,20029,689Consignment expenses(Not disclosed)

7,732(Not disclosed)

3,762

4,681

Utilities expenses(Not disclosed)

11,182(Not disclosed)

2,865

2,802

Taxes and dues

(Not disclosed)

11,672(Not disclosed)

3,126

3,496

Non-life insurance expenses(Not disclosed)

181(Not disclosed)

37

48

Repair expenses(Not disclosed)

844(Not disclosed)

8,188

13,651

Depreciation (C)(Not disclosed)

25,148(Not disclosed)

2,220

5,008

Other lease business expenses(Not disclosed)

50(Not disclosed)－－(Not disclosed)

118,146(Not disclosed)

18,25320,005

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

137,170

143,295

49,757

20,47425,014

Capital expenditures (F) (thousandyen)

158,230

418

－

1,128

1,637

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

NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]
Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)

21,060)142,876

49,757

19,34623,376(Not disclosed)

32.47(Not disclosed)

52.53

59.74

22,124

23,139

9,673

6,224

6,950

216,720

158,880

45,044

79,33074,026- 47 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Greater Tokyo

Property name

Daiwa
Kanda East

Prime Kanda
Building

Sasazuka NA
Building

Acquisition dateJan. 2018

Jun. 2018 andNov. 2018

Oct. 2018

Daiwa
Daiwa
Higashi-Ikebukuro Shinagawa North
Oct. 2005

Jul. 2007

Acquisition price (million yen)

4,200

2,295

15,500

2,958

7,710

Investment ratio (%)

0.9

0.5

3.4

0.6

1.7

Carrying amount (million yen)

4,303

2,381

16,079

2,644

7,143

Estimated price at end of period(million yen)

5,340

2,710

16,100

4,070

6,180

Total number of tenants (Note 1)

5

9

5

8

11

Leasable floor area (m2)

3,980.56

2,211.64

16,160.25

4,461.47

6,548.17

Leased floor area (m2)

3,980.56

2,211.64

16,160.25

4,461.47

6,548.17

End of Nov. 2016

－

－

－

100.0

100.0

End of May 2017

－

－

－

100.0

100.0

End of Nov. 2017

－

－

－

100.0

100.0

End of May 2018

91.8

－

－

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

100.0

100.0

183

177

32

183

183

127,965

48,80473,721

131,744

199,637

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

127,965

48,80473,675

131,744

199,637

Other lease business revenue

－

－

46

－

－

Total property leasing expenses (B)(thousand yen)

55,04014,56027,51659,22290,424

Consignment expenses

12,952

6,051

7,068

10,68017,412

Utilities expenses

9,910

2,801

－

14,36016,778

Taxes and dues

92

70

－

8,567

18,981

Non-life insurance expenses

131

49

127

191

295

Repair expenses

13,932

693

726

1,382

1,167

Depreciation (C)18,0204,886

19,59324,03935,789Other lease business expenses

Reference
information

－

7

－

－

－

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

72,92434,243

46,20572,521

109,212

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

90,945

39,13065,79896,561145,002

Capital expenditures (F) (thousand yen)

70,933

－

－

6,872

9,930

NCF [(E) – (F)] (thousand yen)

20,011

39,13065,79889,689135,071

Expense rate (%) [(B) ÷ (A)]

43.01

29.84

37.32

44.95

45.29

－

－

－

17,05936,860133,61176,730718,270

228,260

331,160

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 48 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionGreater Tokyo

Property name

Daiwa
Osaki 3-chome

Daiwa
Kamiooka

Integral Tower

Daiwa
Meguro Square

Daiwa
Ogikubo

Acquisition date

Sep. 2012

Mar. 2013

May 2014

May 2015

Jul. 2016

Acquisition price (million yen)

1,650

2,000

15,220

5,600

3,800

Investment ratio (%)

Price
information Carrying amount (million yen)

0.4

0.4

3.3

1.2

0.8

1,594

1,893

15,832

5,516

3,989

Estimated price at end of period(million yen)

2,350

2,830

21,500

6,820

4,610

Total number of tenants (Note 1)

5

9

9

16

12

Leasable floor area (m2)

1,786.06

2,630.30

17,778.14

3,519.50

3,849.63

Leased floor area (m2)

1,786.06

2,630.30

17,778.14

3,519.50

3,849.63

End of Nov. 2016

100.0

93.7

100.0

96.1

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

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

65,72993,196644,854

158,434

127,346

65,72993,196644,854

158,434

127,346

－

－

－

－

－

22,91543,140296,394

57,11068,501

Consignment expenses

3,529

5,568

62,953

9,495

9,360

Utilities expenses

3,480

8,590

81,652

9,492

6,767

Taxes and dues

Occupancy rate (%)
Leasing
information

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

Income(loss)
information

4,006

6,435

44,952

13,882

8,089

Non-life insurance expenses

60

103

756

150

128

Repair expenses

420

4,376

6,633

1,155

31,552

Depreciation (C)11,41918,06599,26622,933

12,603

－

－

180

－

－

42,81450,055

348,459

101,323

58,844

54,233

68,121

447,725

124,257

71,448285－

14,300

7,803

12,588

NCF [(E) – (F)] (thousand yen)

53,94868,121

433,425

116,454

58,860

Expense rate (%) [(B) ÷ (A)]

34.86

46.29

45.96

36.05

53.79

8,012

12,83089,53527,38916,10054,91563,700834,324

110,053

161,340

Other lease business
expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](thousand yen)
NOI (E) [(D) + (C)] (thousandyen)
Capital expenditures (F) (thousandyen)

Annual amount of fixed property
Reference tax, etc. for fiscal 2018 (thousand
information yen)
Estimated long-term repair
expenses(thousand yen) (Note 2)- 49 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period
RegionGreater Tokyo

Major Regional Cities

Property name

CONCURRED
Yokohama

Kita-Shinagawa
Gotenyama Building

Daiwa
Kitahama

Acquisition dateJan. 2018

Sep. 2018

Aug. 2014

Acquisition price (million yen)

38,100

2,500

9,481

Price
information Carrying amount (million yen)

8.3

0.5

2.1

38,217

2,588

9,224

Estimated price at end of period(million yen)

39,9002,630

11,700Total number of tenants (Note 1)

Investment ratio (%)

35

4

8

Leasable floor area (m2)

28,052.98

2,396.96

13,517.62

Leased floor area (m2)

27,882.89

1,406.25

13,517.62

End of Nov. 2016

－

－

100.0

End of May 2017

－

－

98.8

End of Nov. 2017

－

－

100.0

End of May 2018

93.2

－

100.0

End of Nov. 2018

99.3

58.6

100.0

183

79

183

942,799

21,550358,318

942,799

21,550358,318－－－

288,227

6,571

150,375

Consignment expenses

78,0302,341

25,393

Utilities expenses

90,435

1,025

35,772

Occupancy rate (%)
Leasing
information

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

Income(loss)
information

Taxes and dues

7

6

33,833

771

34

502

Repair expenses

6,394

342

734

Depreciation (C)112,466

2,821

54,043120－

96654,572

14,978207,943

767,038

17,800261,987

14,305－

1,252

NCF [(E) – (F)] (thousand yen)752,733

17,800260,735

Expense rate (%) [(B) ÷ (A)]

30.57

30.49

41.97

－

－

67,667

718,980

102,564

264,054

Non-life insurance expenses

Other lease business
expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](thousand yen)
NOI (E) [(D) + (C)] (thousandyen)
Capital expenditures (F) (thousandyen)

Annual amount of fixed property
Reference tax, etc. for fiscal 2018 (thousand
information yen)
Estimated long-term repair
expenses(thousand yen) (Note 2)- 50 -

Daiwa Office Investment Corporation (8976) Financial Report for the 26th Fiscal Period(Note 1) Total number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimated to arise
over the 12-year period from the 1st year to the 12th year as stated in the building investigation diagnosis report.
(Note 3) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc. forthe property.
(Note 4) The three-sevenths co-ownership out of the six-sevenths co-ownership of Shinjuku Maynds Tower was divested on
February 28, 2018.
(Note 5) Estimated long-term repair expenses of “Daiwa Kayabacho Building” are the total amount of repair expenses andrenewal expenses estimated to arise over the 10-year period from the 1st year to the 10th year as stated in thebuilding investigation diagnosis report.

- 51 -