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 21st Fiscal Period
July 15, 2016
Daiwa Office Investment Corporation
Stock Exchange Listing: TSE
8976
URL: http://www.daiwa-office.co.jp
Nobuaki Omura, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Akira Yamanouchi, President and Representative Director
Yuji Shinotsuka, Vice President and Representative Director
TEL: +81-3-6215-9649

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

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

August 24, 2016
August 12, 2016

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 21st Fiscal Period
21st Fiscal Period: Fiscal period ended May 2016 (from December 1, 2015 to May 31, 2016)
20th Fiscal Period: Fiscal period ended November 2015 (from June 1, 2015 to November 30, 2015)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
21stPeriod20th
PeriodOperating income

Ordinary income

Net income¥12,363 million

4.4%¥6,108 million

8.8%¥5,326 million

13.6%¥5,250 million

12.0%¥11,837 million

14.0%¥5,614 million

17.7%¥4,689 million

16.3%¥4,688 million

16.3%

Net income
per unit
21st
Period20th
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥10,847

2.1%

1.1%

43.1%

¥9,692

2.0%

1.1%

39.6%

(Note) Net income per unit is calculated using the following daily weighted average number of investment units issued and outstanding:
21st Period: 484,000 units; 20th Period: 483,754 units(2) Distributions
Distribution amount
per unit(excluding distribution
amount in excess of earnings)

21stPeriod20th
PeriodTotal distribution amount(excluding distribution
amount in excess of earnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Distribution
amount to
net assets

Dividend
payout¥10,508¥5,085 million¥0¥– million

96.9%

2.1%

¥9,688¥4,688 million¥0¥– million

100.0%

1.9%(Note) Distribution amount per unit for the 21st Fiscal Period is calculated by dividing the amount obtained by deducting provision of reserve for reduction
entry (¥164 million) from unappropriated retained earnings by the total number of investment units issued and outstanding. The main difference
between distribution amount per unit and net income per unit is due to the calculation.

(3) Financial Position
Total assets
21stPeriod20th
PeriodUnitholders’ equity tototal assets

Net assets

Net assets
per unit¥476,690 million¥247,720 million

52.0%¥511,818¥460,705 million¥247,700 million

53.8%¥511,777-1-

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(4) Cash FlowsNet cashprovided by (used in)operating activities
21st
Period20th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥17,363 million(¥22,336 million)¥9,311 million¥23,038 million¥6,530 million(¥31,677 million)¥21,056 million¥18,700 million

2. Management Status Forecasts for the 22nd Fiscal Period and 23rd Fiscal Period
22nd Fiscal Period: Fiscal period ending November 2016 (from June 1, 2016 to November 30, 2016)
23rd Fiscal Period: Fiscal period ending May 2017 (from December 1, 2016 to May 31, 2017)[% figures show the period-over-period increase (decrease)]

Operating revenue
22nd
Period23rd
PeriodOperating income

Net income¥12,775 million

3.3%¥6,101 million(0.1%)¥5,256 million(1.3%)¥5,254 million

0.1%¥12,454 million(2.5%) ¥6,068 million(0.5%)¥5,260 million

0.1%¥5,258 million

0.1%

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

22ndPeriod23rd
PeriodOrdinary income

Distribution amount in excess of earnings per unit

¥10,550¥0¥10,560¥0(Reference) Estimated net income per unit for the 22nd Fiscal Period: ¥10,550; 23rd Fiscal Period: ¥10,560

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):
21st Fiscal Period: 484,000 units
20th Fiscal Period:(ii) Total number of treasury units at end of period:
21st Fiscal Period:– units
20th Fiscal Period:

484,000 units– units(Note) Please refer to “Notes to Per Unit Information” on page 30 for the number of investment units used as the basis for calculating the net
income per unit.
* Presentation of the status of implementation of audit proceduresThis financial report (kessan tanshin) is exempt from the audit procedures pursuant to the Financial Instruments and Exchange Act (Act No. 25
of 1948; including amendments thereto) (hereinafter referred to as the “Financial Instruments and Exchange Act”) and, at the time of disclosure ofthis financial report (kessan tanshin), the audit procedures pursuant to the Financial Instruments and Exchange Act have not been completed.
* Explanation of the appropriate use of the management status forecasts, and other matters of special note
The forecast figures are forward-looking statements based on information currently available to Daiwa Office Investment Corporation andinvolve uncertainties. Accordingly, the actual operating revenue, operating income, ordinary income, net income and distribution amount per unit
may vary due to changes in the status. In addition, the forecast is not a guarantee of the distribution amount. For details on the assumptions
underlying the forecast figures above, please refer to “Assumptions for the Management Status Forecasts for the 22nd Fiscal Period and 23rd
Fiscal Period” on page 12.

-2-Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
Disclosure is omitted because there are no significant changes from the “Structure of the Investment Corporation” set out inthe most recent periodic securities report (yuka shoken hokokusho) (submitted on February 23, 2016).

2. Management Policy and Management Status
2.1. Management Policy
Disclosure is omitted because there are no significant changes from the “Investment Policy,” “Investment Target” and“Distribution Policy” set out in the most recent periodic securities report (yuka shoken hokokusho) (submitted on February 23,2016) as of date of this document.
The Investment Corporation plans to submit a proposal for partial amendments to the Articles of Incorporation, including the“Cash Distribution Policy” and “Targets and Policy of Asset Management,” for discussion at the 9th General Meeting ofUnitholders scheduled to be held on August 19, 2016.
[Cash Distribution Policy]
・Amendments will be made to allow cash distribution in excess of earning for the purpose of reducing burden of taxation on
the Investment Corporation when the Investment Corporation deems appropriate.
[Targets and Policy of Asset Management]
・Amendments will be made to stipulate that principal object of investment shall be real estate, real estate lease rights andsuperficies, and trust beneficial interests entrusting such assets only, out of real estate, etc. assets.
・Amendments will be made to add renewable energy power generation facility and right to operate public facility, etc. to thetype of assets considered as targets. Furthermore, provisions to clarify investment restrictions related to such will be added.
・Provisions which were previously required will be deleted as requirements for application of special measures concerning
taxation for investment corporations have been changed due to the amendment of Ordinance for Enforcement of the Act on
Special Measures Concerning Taxation.
For details of the partial amendments to the Articles of Incorporation, please refer to Notice concerning Amendments to
Articles of Incorporation and Election of Directors, etc. dated July 15, 2016.
2.2. Management Status(1) Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Investment Corporation was established on July 11, 2005 in accordance with the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate Asset Management Co., Ltd.
(former name K.K. daVinci Select) (the “Asset Manager”) as the organizer. After its establishment, the Investment
Corporation implemented an additional issuance of investment units through a public offering (99,600 units) on October18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE) Real Estate Investment Trust Section (stock code:8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price), subsequent activities,
such as additional acquisition of properties and replacement of portfolio properties, resulted in the assets undermanagement amounting to 458,357 million yen as of the last day of May 2016.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets based on aclear portfolio development policy of specializing in investment in office buildings, with a particular focus on investment
in a total floor area of more than about 2,000m2 situated in downtown Tokyo, as well as through dedicated efforts toheighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment (from December 2015 to May 2016)
The Japanese economy during the fiscal period under review saw a modest recovery against the backdrop of the
improving employment and income environments, the improvement in corporate performance and increase in capital
investment boosted by the continuous yen depreciation from the Bank of Japan’s monetary easing measures as well as thedepression of prices due to low crude oil prices.
In the office building leasing market in central Tokyo, with new supply having settled down, the vacancy rate took aturn after peaking in June 2013, dropping to 4.05% at the end of May 2016. Led by improvement in the vacancy rate forlarge buildings, the overall vacancy rate that includes small- to medium-sized buildings also continues to be on an
improving trend. The drop in the vacancy rate has led to an increase in office rent in some areas, and the market as awhole continues to see increase in rent, albeit slight.
For the office building transaction market, an appetite for property acquisitions continued to be strong among real estatecompanies, funds (including J-REITs) and oversea investors with the continuing proactive lending attitude by financial-3-

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
institutions backed by the forecast of an increase in property prices in accordance with expectations for economic
recovery.
b. Management Performance
In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sales of properties) over the
medium to long term, the Investment Corporation continued to work on “external growth,” which aims to boost revenue
through acquisition of properties, and “internal growth,” which aims to maximize income generating from owned
properties.
Concerning external growth, the Investment Corporation acquired “Nikko Building” (acquisition price: 13,710 million
yen) in March 2016, “Kirin Nihonbashi Building” (acquisition price: 8,180 million yen) in May 2016. In addition, theInvestment Corporation divested 2 properties (Daiwa Shibuya Dougenzaka and Daiwa Minami-Senba). As a result, theInvestment Corporation’s assets under management as of the end of the 21st Fiscal Period (May 31, 2016) totaled 50
properties, the sum total of acquisition prices of which amounted to 458,357 million yen.
Concerning internal growth, while the office leasing market trended recovering, the Investment Corporation conducted
proactive leasing, such as capturing needs for floor expansion within the same property through strengthening
relationships with existing tenants and reinforcing collaboration with leasing brokers and property managers. As a result,the occupancy rate as of the end of the 21st Fiscal Period (May 31, 2016) was 98.7%.
C. Overview of Capital Procurementa. Procurement of Capital for New Property Acquisitions
In the 21st Fiscal Period, the Investment Corporation made the following borrowings to fund the acquisition of new
properties.
・A total of 12,000 million yen was borrowed from Mitsubishi UFJ Trust and Banking Corporation, The Bank ofTokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Development Bank of Japan Inc., Shinsei Bank,
Limited, The Nishi-Nippon City Bank, Ltd., Resona Bank, Ltd., Mizuho Trust & Banking Co., Ltd. and Mizuho Bank,
Ltd. on March 29, 2016 to fund the acquisition of a new property (Nikko Building) acquired on the same day.
・A total of 7,500 million yen was borrowed from Sumitomo Mitsui Trust Bank, Ltd., Sumitomo Mitsui Banking
Corporation and Mizuho Bank, Ltd. on May 26, 2016 to fund the acquisition of a new property (Kirin Nihonbashi
Building) acquired on the same day.
b. Procurement of Capital for Repayment of Borrowings
In the 21st Fiscal Period, the Investment Corporation made the following borrowings to fund the repayment of borrowings
that were due for repayment.
・A total amount of 2,200 million yen was borrowed from Shinsei Bank, Limited and Fukoku Mutual Life Insurance
Company on May 31, 2016 to fund the repayment of the same amounts borrowed from the bank and the company thatwere due for repayment on the same day.
An early repayment for total of 5,500 million yen of short-term loans borrowed from Sumitomo Mitsui Banking
Corporation, Sumitomo Mitsui Trust Bank, Ltd. and Mizuho Bank, Ltd. on July 31, 2015 was made on April 28, 2016.
c. Status of Interest-Bearing Liabilities at End of the Fiscal Period under Review
As a result of the above, the balance of interest-bearing liabilities outstanding as of the end of the 21st Fiscal Period (May31, 2016) stood at 206,300 million yen (long-term loans payable: 201,200 million yen; investment corporation bonds:
5,100 million yen). The balance of the current portion of long-term loans payable stood at 21,200 million yen.
During the 21st Fiscal Period, the Investment Corporation made borrowings centering on periods of between 7 years
and 9.5 years with the maximum being 10 years, and the average remaining period of interest-bearing liabilities as of theend of the 21st Fiscal Period stands at 4.54 years.
List of Borrowings in the 21st Fiscal Period
Loan amount(million yen)
1,500
1,500
1,000
1,000
1,000
1,000
1,000

LenderSumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Resona Bank, Ltd.
Mizuho Trust and Banking Co., Ltd.
Shinsei Bank, Ltd.
The Nishi-Nippon City Bank Limited-4-

Drawdown
date
2016/3/29
2016/3/29
2016/3/29
2016/3/29
2016/3/29
2016/3/29
2016/3/29

Repayment
date
2023/2/28
2023/2/28
2023/2/28
2023/8/31
2023/8/31
2024/2/29
2024/2/29

Loanperiod6.9 years
6.9 years
6.9 years
7.4 years
7.4 years
7.9 years
7.9 years

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
Mitsubishi UFJ Trust and Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Shinsei Bank, Ltd.
Fukoku Mutual Life Insurance Company

2,500
1,500
1,500
1,500
2,000
1,500
1,000
2,000
200

2016/3/29
2016/3/29
2016/5/26
2016/5/26
2016/5/26
2016/5/26
2016/5/26
2016/5/31
2016/5/31

2024/8/30
2024/8/30
2017/5/31
2017/5/31
2024/11/29
2025/5/30
2025/5/30
2024/11/29
2026/5/29

Balance of Borrowings from Each Financial Institution (as of May 31, 2016)
End of the 21st Fiscal Period
Lender(million yen)
Sumitomo Mitsui Banking Corporation
41,900Sumitomo Mitsui Trust Bank, Limited
26,350Development Bank of Japan Inc.
21,750Mizuho Bank, Ltd.
19,400
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
16,000Shinsei Bank, Ltd.
14,000Resona Bank, Ltd.
12,500Mitsubishi UFJ Trust and Banking Corporation
8,500
Mizuho Trust and Banking Co., Ltd.
6,000
The Bank of Fukuoka, Ltd.
5,500
Kansai Urban Banking Corporation
5,000
Aozora Bank, Ltd.
4,500
The Nishi-Nippon City Bank Limited
3,000
ORIX Bank Corporation
2,500
The Gunma Bank, Ltd.
2,500
The 77 Bank, Ltd.
2,000
The Musashino Bank, Ltd.
2,000
Tokio Marine & Nichido Fire Insurance Co., Ltd.
2,000
The Higashi-Nippon Bank, Limited
1,500
Nippon Life Insurance Company
1,300
The Kagawa Bank, Ltd.
1,000
The Hiroshima Bank, Ltd.
1,000
The Yamaguchi Bank, Ltd.
500
Taiyo Life Insurance Company
300
Fukoku Mutual Life Insurance Company
200
Total
201,200(Note) Share is rounded to two decimal places.
d. Rating Information (as of May 31, 2016)
Credit rating agency
R&I
Japan Credit Rating Agency

RatingA+
AA-

Outlook
StableStable-5-8.4 years
8.4 years
1.0 year
1.0 year
8.5 years
9.0 years
9.0 years
8.5 years
10.0 years

Share (%)
(Note)
20.83
13.10
10.81
9.64
7.95
6.96
6.21
4.22
2.98
2.73
2.49
2.24
1.49
1.24
1.24
0.99
0.99
0.99
0.75
0.65
0.50
0.50
0.25
0.15
0.10
100.00Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
e. Shelf Registration
The Investment Corporation filed a shelf registration statement pertaining to investment corporation bonds on July 17,
2014 as below. The total issuable amount as of the date of this document is 94.9 billion yen.
Investment corporation bonds (excluding short-term investment corporation bonds)
Planned issue amount
100 billion yen
Planned issue period
From July 25, 2014 to July 24, 2016
Funds for acquisition of specified assets, repayment of borrowings, redemption of
investment corporation bonds (including short-term investment corporation bonds),
Use of funds
refund of leasehold and security deposits, payment of repairs, and funds for working
capital, etc.
D. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance for the 21st
Fiscal Period of 12,363 million yen in operating revenue, 6,108 million yen in operating income, 5,326 million yen in
ordinary income and 5,250 million yen in net income.
Concerning distributions, it is planned that the amount equivalent to distributions from earnings would be included in theamount 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”)). On that basis, the Investment Corporation decided to distribute almost the entire amount(excluding fractions of the distribution amount per unit that are less than 1 yen ) remained after reserving part ofunappropriated retained earnings as reduction entry and deducting provision of reserve for reduction entry fromunappropriated retained earnings, through application of “Special Provisions on Taxation in the case of advanceacquisition of land and such in 2009 and 2010” (Article 66-2 of the Special Taxation Measures Act). Accordingly, theInvestment Corporation declared a distribution amount per unit of 10,508 yen.

-6-

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period(2) Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy going forward is expected to see a moderate economic recovery through recovery in personal
spending against the backdrop of favorable employment environment and the improved income environment whilevarious economic measures, centering on the public works projects and financial policies promoted by the Abeadministration and the monetary easing policy implemented by Bank of Japan continue. However, factors, such as
downward swing of the Chinese economy, upset in emerging markets accompanying the U.S. exit strategy, drop in stock
prices around the world due to geopolitical risks, downturn of the Eurozone economy and concerns over losing fiscal
discipline in the wake of postponement of consumption tax hike, pose potential risks of disrupting the Japanese real
economy and financial environment, and are thus thought to require attention.
In the Tokyo office building leasing market, while new supply is on a low note, factors such as improvement in
employment are stimulating demand, resulting in the vacancy rate dropping. Improvement in corporate performance isforecast to increase demand for office floor space and rent is expected to improve as a consequence. In the office building
transaction market, backed by the favorable financing environment and expectations of rent rising, among other factors,
property acquisition appetite among investors overseas, real estate companies and funds (including J-REITs) is thought togrow even stronger.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Under the office leasing market conditions described above, the tenant side is also expected to become more selectivewith properties. Consequently, the Investment Corporation will carry out operational management under the following
policy with an aim to enhance the competitiveness of existing properties and thereby increase the long-term EPS over the
medium to long term.
(i) Maintain and raise occupancy rates
Concerning existing tenants, strive to reduce vacancy risks by improving the quality of buildings, equipment andmanagement system. In addition, concerning new tenants, strive to maintain and raise occupancy rates through theprovision of services that are of higher satisfaction levels than competing properties through proactive participationin the market.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium to long term through further strengthening good relationships withexisting tenants, as well as proactively tapping the needs of new tenants by discerning the market environment.
(iii) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of high tenant satisfactionlevels by implementing efficient operational management and reviewing systematic construction work by optimallyleveraging the economies of scale achieved from proactively realizing external growth.
b. Strategy for New Property Investments
The Investment Corporation will invest in office buildings that have a total floor area of about 2,000m2 or more based on
various external growth strategies, while maintaining a balance with the asset acquisition environment and financing
situation. In principle, considerations will focus on Tokyo as the investment target area, but the Investment Corporation
will also consider investing in competitive properties in cities other than Tokyo from a viewpoint ofterritorially-distributed investments.
As pipeline support, in addition to expanding its own information-sourcing channels, the Investment Corporation willcontinue to search for properties that meet its investment criteria by proactively gathering real estate transaction market
information through greater collaboration with the Asset Manager and Sponsor Group and utilizing the Group’s
extensive network of clients, partners, etc.
Furthermore, in the 21st Fiscal Period, the Investment Corporation acquired “Nikko Building” and “Kirin Nihonbashi
Building” which is located in Tokyo. The Investment Corporation believes that acquisition of these properties willcontribute to further stabilization and enhancement of the portfolio. The Investment Corporation will continue to strive toacquire 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 real LTV, etc., as a principle.
(ii) Diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing liabilities thatshall become due during any single fiscal period as a principle.
(iii) Aim to have long-term loans account for at least 70% of total loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.
(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.
-7-

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

C. Significant Subsequent Events(1) Issuance of Investment Units
The Investment Corporation passed resolutions concerning issuance of new investment units as follows at the meeting of
the Board of Directors of the Investment Corporation held on July 15, 2016.
a. Issuance of new investment units through public offering (primary offering)(i) Number of units to be offered:
12,700 units(ii) Net price (paid-in price):
To be determined
Shall be determined at the Board of Directors meeting to be held
on one of the days between July 26, 2016 (Tuesday) and July 29,
2016 (Friday) (hereafter the “Price Determination Date”) in
accordance with the method pursuant to the article 25 of theRegulations Concerning Underwriting, etc. of Securities by Japan
Securities Dealers Association. Net Price (Paid-in Price) is theamount that the Investment Corporation is to receive as payment
for one new Investment Unit.
(iii) Net amount (total paid-in amount):
To be determined(iv) Payment date:August 2, 2016 (Tuesday) to August 5, 2016 (Friday)
The above payment date shall be the fifth day after the Price
Determination Date.
(v) Use of proceed:
Out of the fund procured, 6,000,000,000 yen will be used topartially fund the repayment of borrowings made to acquire Heiwa
Higashi-nihonbashi Building (a specified asset acquired on June 1,2016) and Square Daikanyama Building (a specified asset acquiredon June 29, 2016). The remaining amount will be allocated as cashon hand, which will decrease by funding the acquisitions and theexpenses associated with the acquisitions of Ogikubo TM Building
and Shinjuku West Building, specified assets scheduled to beacquired on July 21, 2016. The funds will be deposited at financial
institutions until the outlay and be used as part of acquisition fundsof specified assets or part of repayment of borrowings in the
future.
b. Issuance of new investment units by third-party allocation(i) Number of units to be offered (upper limit):(ii) Net price (paid-in price):(iii) Net amount (total paid-in amount) (upper limit):(iv) Allottee and number of units to be issued (upper limit):(v) Payment date:(vi) Use of proceed:-8-

1,300 units
To be determined
Shall be determined at the Board of Directors
meeting to be held on the Price Determination Date.
The Net Price (Paid-in Price) shall be the same as the
Net Price (Paid-in Price) for Public Offering.
To be determined
Daiwa Securities Co., Ltd. 1,300 units
August 31, 2016 (Wednesday)
Out of the fund procured, 6,000,000,000 yen will be
used to partially fund the repayment of borrowings
made to acquire Heiwa Higashi-nihonbashi Building(a specified asset acquired on June 1, 2016) and
Square Daikanyama Building (a specified asset
acquired on June 29, 2016). The remaining amountwill be allocated as cash on hand, which will decreaseby funding the acquisitions and the expenses
associated with the acquisitions of Ogikubo TM
Building and Shinjuku West Building, specified assets
scheduled to be acquired on July 21, 2016. The funds
will be deposited at financial institutions until theoutlay and be used as part of acquisition funds ofDaiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
specified assets or part of repayment of borrowings in
the future.

(Note) The investment units to be issued by third-party allocation may not be subscribed in whole or in part, and as a result,the subscription right will be forfeited and the final number of investment units issued with respect to the third-party
allocation may be reduced to the same extent, or such issuance itself may be cancelled.
(2) Acquisition of Assets
a. The Investment Corporation acquired a trust beneficial interest in real estate on June 1, 2016 as follows.
Summary of Asset Acquired
Property nameHeiwa Higashi-nihonbashi Building

Type of asset

Trust beneficial interest in domestic real estate

Location

3-10-6 Higashi Nihonbashi, Chuo-ku, Tokyo

Acquisition price

6,370 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

May 26, 2016

Date of delivery

June 1, 2016

Seller (Note)
Not disclosed (Note)(Note) Seller is a domestic special purpose company which has not agreed to disclose its name.
b. The Investment Corporation acquired a trust beneficial interest in real estate on June 29, 2016 as follows.
Summary of Asset Acquired
Property nameSquare Daikanyama Building

Type of asset

Trust beneficial interest in domestic real estate

Location

8-7 Daikanyamacho, Shibuya-ku, Tokyo

Acquisition price

2,280 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

June 21, 2016

Date of delivery

June 29, 2016

SellerHulic Co., Ltd.

c．The Investment Corporation determined on July 15, 2016 to acquire a trust beneficial interest in real estates asfollows.
(i) Summary of Asset Acquired
Property nameShinjuku West Building

Type of asset

Trust beneficial interest in domestic real estate

Location

8-2-5 Nishi Shinjuku, Shinjuku-ku, Tokyo

Acquisition price

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

Date of conclusion of purchase agreement

July 15, 2016

Date of delivery

July 21, 2016 (scheduled)

Seller

GK TC1-9-

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period(ii) Summary of Asset Acquired
Property name

Ogikubo TM Building

Type of asset

Trust beneficial interest in domestic real estate

Location

5-26-13 Ogikubo, Suginami-ku, Tokyo

Acquisition price3,800 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

July 15, 2016

Date of delivery

July 21, 2016 (scheduled)

Seller

GK TC1(3) Transfer of Asset
The Investment Corporation determined on July 7, 2016 to transfer trust beneficial interest in real estates as follows.
Summary of Asset Transferred
Property nameDaiwa Kudan

Type of asset

Trust beneficial interest in domestic real estate

Sales price

4,040 million yen(excluding settlement money for fixed property tax and city planningtax as well as consumption tax and local consumption tax)

Date of conclusion of purchase agreement

July 7, 2016

Date of delivery

July 7, 2016

Buyer
Not disclosed (Note)(Note) Buyer is a domestic corporation which has not agreed to disclose its name.
(4) Borrowing of Funds
a. The Investment Corporation borrowed funds on June 1, 2016 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “(2) Acquisition ofAssets a.” etc.
Detail of borrowings
LenderDrawdown Loan amountdate(million yen)

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

Interest rate

Repayment date

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

May 31, 2017

Unsecured
Repayment inlump sum

2,000June 1, 2016

2,000
2,000

(Note) Interest payments shall be made at the end of every month and the maturity date (If any such date is not a businessday, the immediately following business day; and if such date falls within the next month, the preceding lastbusiness day of the month). Interest rate is calculated based on 1 month Japanese Yen TIBOR which Japanese
Bankers Association announces two business days prior to the first day of the applicable calculation period.
b. The Investment Corporation borrowed funds on June 29, 2016 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “(2) Acquisition ofAssets b.” etc.

- 10 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

Detail of borrowings
LenderSumitomo Mitsui Banking
Corporation

Drawdow Loan amountn date(million yen)
June 29,
2016

2,000

Interest rate

Repayment date

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

May 31, 2017

Borrowing /Repayment
methodUnsecured
Repayment inlump sum(Note) Interest payments shall be made at the end of every month and the maturity date (If any such date is not a businessday, the immediately following business day; and if such date falls within the next month, the preceding lastbusiness day of the month). Interest rate is calculated based on 1 month Japanese Yen TIBOR which Japanese
Bankers Association announces two business days prior to the first day of the applicable calculation period.
D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 22nd Fiscal Period (fiscal period ending
November 2016 (from June 1, 2016 to November 30, 2016)). For the assumptions underlying the management status
forecasts, please refer to the “Assumptions for the Management Status Forecasts for the 22nd Fiscal Period and 23rd
Fiscal Period” on page 12.
22nd Fiscal Period (fiscal period ending November 2016 (from June 1, 2016 to November 30, 2016))
Operating revenue
12,775 million yen
Operating income
6,101 million yen
Ordinary income
5,256 million yen
Net income
5,254 million yen
Distribution amount per unit
10,550 yen
Distribution amount in excess of earnings per unit
- yen
In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 22nd Fiscal Period and23rd Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status for the
23rd Fiscal Period (fiscal period ending May 2017 (from December 1, 2016 to May 31, 2017)).
23rd Fiscal Period (fiscal period ending May 2017 (from December 1, 2016 to May 31, 2017))
Operating revenue
12,454 million yen
Operating income
6,068 million yen
Ordinary income
5,260 million yen
Net income
5,258 million yen
Distribution amount per unit
10,560 yen
Distribution amount in excess of earnings per unit
- yen
(Note) The forecast figures above are the current forecasts calculated based on certain assumptions. Accordingly, theactual operating revenue, operating income, ordinary income, net income, distribution amount per unit anddistribution amount in excess of earnings per unit may vary due to changes in the status. Moreover, the forecasts
set forth herein should not be construed as a guarantee of distribution amounts.

- 11 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
Assumptions for the Management Status Forecasts for the 22nd Fiscal Period and 23rd Fiscal Period
Item
Assumptions
 22nd Fiscal Period:
Assets under management are assumed to be the 50 properties owned as of May 31, 2016, plus the 2properties(Heiwa Higashi-nihonbashi Building and Square Daikanyama Building) acquired in June
2016 and 2 properties(Ogikubo TM Building and Shinjuku West Building) to be acquired in July 2016,
Assets underminus 1 property divested(Daiwa Kudan) in July 2016, to total 53 properties.
management
 23rd Fiscal Period
Assets under management are assumed to be the 53 properties described above.
 The actual number of properties may vary due to changes in the assets under management other thanabove.
 Rent revenue from existing properties is calculated based on historical data and taking into accountOperatingvariable factors.
revenue Gain on sales of real estate properties from the divestment of existing properties is expected to be 99
million yen for the 22nd 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 therespective fiscal period based on the medium to long term repair plan established by the AssetManager.
 Operating income from property leasing (excluding gain on sales of real estate properties) after
deducting expenses related to rent business (including depreciation) is expected to be 7,292 million
yen in the 22nd Fiscal Period and 7,331 million yen in the 23rd Fiscal Period.
 Consignment expenses are expected to be 892 million yen in the 22nd Fiscal Period and 886 million
Operatingyen in the 23rd Fiscal Period.
expenses Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 1,035 million yen in the
22nd Fiscal Period and 1,026 million yen in the 23rd Fiscal Period.
 While, in general, fixed property tax, city planning tax, etc. in the transaction of real estate, etc. are
calculated on a pro rata basis and reimbursed at the time of acquisition with the current owner, but for
the Investment Corporation, the amount equivalent to the reimbursement is included in the cost of
acquisition and thus it is not recognized as expenses in the period of acquisition of properties. As such,
fixed property tax, city planning tax, etc. of fiscal 2017 for properties acquired in 2016 shall berecorded as expenses starting from the fiscal period ending November 2017.
 Depreciation is expected to be 1,751 million yen in the 22nd Fiscal Period and 1,775 million yen in the
23rd Fiscal Period.
 Non-operating expenses in the 22nd Fiscal Period are expected to be 845 million yen, of which theinterest expenses, interest expenses on investment corporation bonds and borrowing related expenses
are expected to be 808 million yen and expenses for issuance of investment units are expected to be 32
Non-operating
million yen.
expenses Non-operating expenses in the 23rd Fiscal Period are expected to be 807 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related expenses
are expected to be 803 million yen.
 The total amount of interest-bearing liabilities is assumed to be 204,300 million yen at the end of the
22nd Fiscal Period and 204,300 million yen at the end of the 23rd Fiscal Period.
 A total of 8,000 million was newly borrowed to fund the acquisition of new properties acquired onJune 1, 2016 and June 29, 2016 (6,000 million yen for the acquisition of Heiwa Higashi-nihonbashi
Building (borrowed on June 1, 2016) and 2,000 million yen for the acquisition of Square Daikanyama
Interest-bearing
Building (borrowed on June 29, 2016)). It is assumed that all of the 1,500 million yen of borrowings
liabilities
due for repayment on August 31, 2016 will be refinanced. In addition, it is assumed that, out ofexisting borrowings, an early repayment will be conducted for a total of 10,000 million yen by the endof the 22nd Fiscal Period.
 In the 23rd Fiscal Period, it is assumed that all of the 1,700 million yen of borrowings due forrepayment on May 10, 2017, the 6,500 million yen of borrowing due for repayment on May 22, 2017
and the 9,500 million yen of borrowing due for repayment on May 31, 2017 will be refinanced.

- 12 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
Item
Total number ofinvestment units
issued andoutstanding

Distribution amount
per unit

Assumptions
 The number of investment units issued and outstanding is assumed to be the 484,000 units issued andoutstanding as of May 31, 2016, plus the 12,700 units from issuance of new investment units throughpublic offering and the 1,300 units from issuance of new investment units by third-party allocation(upper limit) for which resolutions were passed at the meeting of the Board of Directors of theInvestment Corporation held on July 15, 2016, to total 498,000 units.
 It is assumed that there are no changes to the number of investment units other than stated above until
the end of the 23rd Fiscal Period such as 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.
 The distribution amount per unit may vary depending on a variety of factors, such as changes in theassets under management, changes in the rent revenue due to tenant changes and other causes, andincurrence of unforeseen repairs.

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

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

2.3. Investment Risks
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 February 23,2016).

- 13 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

3. Financial Statements
3.1. Balance Sheets

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Other in trust
Accumulated depreciation
Other in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment

20th Fiscal Period[As of Nov. 30, 2015](Unit: thousand yen)
21st Fiscal Period[As of May 31, 2016]

16,618,092
2,082,177
238,836515,291
386,624550
157,031
19,998,604

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

3,124,851(1,716,825)
1,408,025
14,344(3,335)
11,00818,958(8,507)
10,45012,302,226
3,572
101,181,076(18,232,206)
82,948,869
963,538(173,574)
789,963
777,674(388,194)
389,479
175,565(76,822)
98,742
4,336(4,336)－
338,450,955
27,451
436,440,746

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

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits in trust
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

20th Fiscal Period[As of Nov. 30, 2015](Unit: thousand yen)
21st Fiscal Period[As of May 31, 2016]

695
2,407,101
306,884
2,741
2,717,422

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

113,684
1,206,053
186,815
10,0201,516,573
440,674,743

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

32,39032,390460,705,737

29,43529,435
476,690,032

844,892
5,500,000
3,700,000
541,568
775
57,157
1,941,023
204,480
12,789,897

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

5,100,000
178,000,000
15,531,882
1,005,375
578,197
200,215,456
213,005,354

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

243,403,874

243,403,874

4,689,024
4,689,024
248,092,898

5,250,225
5,250,225
248,654,100(392,515)(392,515)
247,700,383
460,705,737(933,915)(933,915)
247,720,184
476,690,032*2- 15 -*2

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
3.2. Statements of Income

20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]
Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Investment unit issuance expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 16 -(Unit: thousand yen)
21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]*1*1

11,777,301
60,694－
11,837,995

*1
*1
*2

11,947,802
91,980323,700
12,363,483*1

5,026,334
968,318
22,616
72,79021,8205,400
106,128
6,223,408
5,614,587*1

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

771
804
11,998
13,574

132
688
4,901
5,722

591,939
16,707
162,632
160,735
6,521
938,537
4,689,624
4,689,624
805
3
809
4,688,815
208
4,689,024

597,306
16,892
166,855－
6,154
787,208
5,326,969
5,326,969
977
75,79876,7755,250,193
32
5,250,225

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
3.3. Statements of Unitholders’ Equity
20th Fiscal Period (from June 1, 2015 to November 30, 2015](Unit: thousand yen)
Total valuation and translation
adjustments

Unitholders’ equity
Surplus

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

Total Surplus

219,155,572

4,031,830

4,031,830

Total unitholders’ Deferred gains orequitylosses on hedges

223,187,402(232,601)

Total valuationand translation
adjustments(232,601)

Total net assets

222,954,800

Changes of items during theperiodIssuance of investment units

24,248,302

24,248,302

24,248,302

Dividends from surplus(4,031,622)(4,031,622)(4,031,622)(4,031,622)

Net income

4,688,815

4,688,815

4,688,815

4,688,815

Net changes of items otherthan shareholders’ equity
Net changes of items other thanshareholders’ equity
Balance at end of current period(159,913)(159,913)(159,913)

24,248,302

657,193

657,193

24,905,495(159,913)(159,913)

24,745,582

243,403,874

4,689,024

4,689,024

248,092,898(392,515)(392,515)

247,700,383

21st Fiscal Period (from December 1, 2015 to May 31, 2016](Unit: thousand yen)
Total valuation and translation
adjustments

Unitholders’ equity
Surplus

Total net assets(392,515)

247,700,383

Unappropriatedretained earnings(undisposed
loss)

Total Surplus

243,403,874

4,689,024

4,689,024

248,092,898

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

Net income

5,250,193

5,250,193

5,250,193

5,250,193

Balance at beginning of current
periodTotal unitholders’ Deferred gains orequitylosses on hedges

Total valuationand translation
adjustments

Unitholders’capital(392,515)

Changes of items during theperiodNet changes of items otherthan shareholders’ equity
Net changes of items other than(541,400)(541,400)－

561,201

561,201

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

19,801

243,403,874

5,250,225

5,250,225

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

247,720,184

shareholders’ equity
Balance at end of current period(541,400)- 17 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
3.4. Statements of Cash Distributions

Item
I.
II.

Unappropriated retained earnings
Distribution amount[Distribution amount per unit]
III Voluntary retained earnings
Provision of reserve for reduction entry
IV. Retained earnings carried forward
Method for calculating distribution amount20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]
Amount (yen)4,689,024,142
4,688,992,000[9,688]32,142
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(484,000 units) in an amount that is
not in excess of unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 4,688,992,000
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

- 18 -

21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]
Amount (yen)5,250,225,912
5,085,872,000[10,508]
164,162,797
191,115
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(484,000 units) in an amount that is
not in excess of the remaining amountobtained after deducting provision ofreserve for reduction entry defined in
Article 66-2 of the Special Taxation
Measures Act from unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 5,085,872,000
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
3.5. Statements of Cash Flows

20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Investment unit issuance expenses
Interest income
Interest expenses(Increase) Decrease in operating accounts receivable(Increase) Decrease in consumption taxes refund receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Decrease from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
Repayments of tenant security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 19 -*1(Unit: thousand yen)
21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]

4,689,624
1,704,769
2,954
160,735(771)
608,647
36,956(515,291)
16,59995,226
123,956(285,428)
642,252
98,548－(230,111)
7,148,669
771(617,859)(854)
6,530,727

5,326,969
1,726,589
2,954
－
(132)
614,198
63,992515,291(41,335)
14,935(107,982)
477,033
110,704
16,891
9,127,507
130,195
17,977,812
132(614,106)(783)
17,363,054(13,262)(34,088,858)
1,281,904
1,407,399(264,439)(402)(31,677,660)(1,824)(22,667,593)
499,436
383,107(537,469)(12,066)(22,336,410)

5,500,000(9,500,000)
11,100,000(6,100,000)
24,087,566(4,031,177)
21,056,388(4,090,543)
22,790,813
18,700,269－(5,500,000)
21,700,000(2,200,000)－(4,688,695)
9,311,304
4,337,948
18,700,269
23,038,217*1

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
3.6. Notes to the Going Concern
Not applicable.
3.7. Notes to Significant Accounting Policies
1.
Accumulated depreciation method(1)
for noncurrent assets

2.
3.

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
4~56 years
Machinery and equipment
4~23 years
Tools, furniture and fixtures
5~18 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
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 costof acquisition of real estate properties in the 20th Fiscal Period is 125,633
thousand yen and 21st Fiscal Period is 53,870 thousand yen.
(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet the requirements
for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate cap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge risks
stipulated in the Investment Corporation’s articles of incorporation inaccordance with the Investment Corporation’s risk management policy.
Method for assessing the effectiveness of hedging(4) The effectiveness of hedging is assessed by the correlation between the change
in aggregated amount of cash flow of the hedging instruments and the change
in aggregated amount of cash flow of the hedged items.
Interest rate swaps that meet the requirements for special accounting are
omitted from assessment of the effectiveness.
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.

- 20 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
6.

Other significant matters forming
basis for preparation of financial
statements

(1)

(2)

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

3.8. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting and asset retirement obligations,disclosure is omitted because there is no substantial need for such disclosure in the financial report (kessan tanshin).
[Notes to Balance Sheets]*1. Advanced depreciation amount for noncurrent assets acquired by government subsidies, etc.
20th Fiscal Period[As of November 30, 2015]
Buildings in trust

21st Fiscal Period[As of May 31, 2016]

32,898 thousand yen

Buildings in trust

32,898 thousand yen*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
20th Fiscal Period[As of November 30, 2015]

21st Fiscal Period[As of May 31, 2016]

50,000 thousand yen

50,000 thousand yen- 21 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing(Unit: thousand yen)
20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]
A.

B.

C.

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

21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]
11,947,802
91,98011,777,301
60,694
11,837,995

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

868,699
1,051,126
895,930
17,250403,758
1,726,073
51,363

889,597
1,159,084
883,293
16,633320,996
1,703,685
53,042

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

12,039,783

5,026,334

5,014,202

6,811,661

7,025,580*2. Breakdown of gain on sales of real estate properties (Unit: thousand yen)
20th Fiscal Period [From: June 1, 2015 To: November 30, 2015]
Not applicable.
21st Fiscal Period [From: December 1, 2015 To: May 31, 2016]
Daiwa Shibuya Dougenzaka
Proceeds from sales of real estate properties
Cost of sales of real estate properties
Other expenses on sales

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

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

3,335,062
4,652,920
58,350

Other expenses on sales

1,376,208

Gain on sales of real estate properties[Notes to Statements of Unitholders’ Equity]
20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]

21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]

Total number of investment units authorized and number ofinvestment units issued and outstanding
Total number of investment units authorized
Number of investment units issued and outstanding- 22 -

2,000,000 units

2,000,000 units

484,000 units

484,000 units

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period[Notes to Statements of Cash Flows]*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the statements of cash flows(Unit: thousand yen)
20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]
Cash and deposits
Cash and deposits in trust

16,618,092
2,082,177
18,700,269

Cash and cash equivalents

21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]
20,940,424
2,097,792
23,038,217[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation bonds and issuanceof new investment units, etc. for the acquisition and repair of investment properties, the payments of dividends and thereimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates, and dispersing
maturity dates in order to secure financial stability and avoid future fluctuation risk of interest rates.
The Investment Corporation manages surplus funds through safe and highly liquid money claims and securities (inprinciple, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks.
(b) Contents and risk of financial instruments and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds for theacquisition of investment properties (such as trust beneficial interest in real estate) and the reimbursement of current debts
and bonds. While these debts and bonds are exposed to liquidity risk, the Investment Corporation manages the risk by
maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt to total debt athigh levels, and diversifying lenders with particular focus on domestic financial institutions.
Bank borrowings with floating interest rates are exposed to interest rate risk and the risk is controlled by using
derivative instruments (interest swap transaction). Moreover, a commitment-type term loan is used in order to reduce fundprocurement risk when acquiring properties using forward commitments, etc.
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount of cash flow of
the hedging instruments and the change in aggregated amount of cash flow of the hedged items. Interest rate swaps thatmeet the requirements for special accounting are omitted from assessment of the effectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions establishedby the basic policy of risk management.
Security deposits from tenants are exposed to liquidity risk upon tenants moving out and the Investment Corporation
reduces the risk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) and are managed
by limiting the terms to short durations and establishing credit rating level of counterparties, etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instruments with noavailable market price is determined by using price reasonably estimated. As various factors are incorporated into thesecalculations, the resulting value may differ if different assumptions are provided. Furthermore, the contractual amounts ofderivative transactions do not represent the market risk involved in these derivative transactions.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values and their differences are as follows. Please note that the following table does not include
those for which discerning of fair value is recognized to be extremely difficult (please refer to (Note 2)).

- 23 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
20th Fiscal Period [As of November 30, 2015]
Carrying amount(Unit: thousand yen)
Difference

Fair value(1) Cash and deposits

16,618,092

16,618,092－(2) Cash and deposits in trust

2,082,177

2,082,177－

18,700,269

18,700,269－(3) Short-term loans payable

5,500,000

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

3,700,000

3,702,739

2,739(5) Investment corporation bonds

5,100,000

5,149,380

49,380178,000,000

178,318,164

318,164

192,300,000

192,670,284

370,284(579,871)(579,871)－

Total assets(6) Long-term loans payable
Total liabilities
Derivative transactions (*)
21st Fiscal Period [As of May 31, 2016]

Carrying amount(Unit: thousand yen)
Difference

Fair value(1) Cash and deposits

20,940,424

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

2,097,792

2,097,792－

23,038,217

23,038,217

－

－

－

－

(4) Current portion of long-term loans payable

21,200,000

21,292,249

92,249(5) Investment corporation bonds

5,100,000

5,221,170

121,170

180,000,000

180,362,802

362,802206,300,000

206,876,221

576,221(1,365,241)(1,365,241)－

Total assets(3) Short-term loans payable(6) Long-term loans payable
Total liabilities
Derivative transactions (*)(*) The value of assets and liabilities arising from derivatives are indicated at net basis. The amount in parentheses represents thenet liability position.
(Note 1) Methods to estimate fair value of financial instruments and matters concerning derivative transactions.
Assets(1) Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and thus isstated at that book value.
Liabilities(3) Short-term loans payable; (4) Current portion of long-term loans payable; (6) Long-term loans payable
As those with floating interest rates reflect market interest rates within a short period of time and the Investment
Corporation’s credit capability does not differ markedly from the execution, the fair value is approximately the same as
the book value and thus is stated at that book value. Those with fixed interest rates, on the other hand, are based on themethod of calculating by discounting the sum total amount of principal and interest (*) by the reasonably estimatedinterest rate in the case that the same type of borrowings are undertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest is handled
together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions] below.)(5) Investment corporation bonds
The fair value of the investment corporation bonds issued by the Investment Corporation is based on the market price.
Derivative transactions
Please refer to [Notes to Derivative transactions] below.

- 24 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period(Note 2) Financial products for which it is extremely difficult to estimate fair value.
(Unit: thousand yen)
20th Fiscal Period[As of November 30, 2015]

21st Fiscal Period[As of May 31, 2016]

Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust

15,881,378
15,531,882
988,887
1,005,375
Total
16,537,258
16,870,265
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 market price because discerning of the market price is recognized to be
extremely difficult as future cash flows cannot be reasonably estimated due to there being no fair value and difficulty incalculation of the actual deposit period.

(Note 3) Redemption schedule for monetary claims due after the settlement of accounts.
20th Fiscal Period [As of November 30, 2015](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Over 5 years

Cash and deposits

16,618,092

–

–

–

–

–

Cash and deposits in trust

2,082,177

–

–

–

–

–

18,700,269

–

–

–

–

–

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

20,940,424

–

–

–

–

Total

21st Fiscal Period [As of May 31, 2016](Unit: thousand yen)

Cash and deposits

Over 5 years–

Cash and deposits in trust

2,097,792

–

–

–

–

–

Total

23,038,217

–

–

–

–

–

(Note 4) Amount of repayment of short-term loans payable, current portion of long-term loans payable, long-term loans payable
and investment corporation bonds scheduled to be due after the settlement of accounts.
20th Fiscal Period [As of November 30, 2015](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Short-term loans payable

5,500,000

－

－

－

－

－

Current portion of
long-term loans payable

3,700,000

－

－

－

－

－

Over 5 years

Investment corporation bonds

－

－

－

3,000,000－

2,100,000

Long-term loans payable－

28,250,000

17,350,000

22,000,000

31,600,000

78,800,000

9,200,000

28,250,000

17,350,000

25,000,000

31,600,000

80,900,000

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

21,200,000

－

－

－

－

Total

21st Fiscal Period [As of May 31, 2016](Unit: thousand yen)
Current portion of
long-term loans payable

Over 5 years－

Investment corporation bonds

－

－

－

3,000,000－

2,100,000

Long-term loans payable－

19,400,000

21,500,000

25,000,000

33,300,000

80,800,000

21,200,000

19,400,000

21,500,000

28,000,000

33,300,000

82,900,000

Total- 25 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
20th Fiscal Period [As of November 30, 2015]
Not applicable.
21st Fiscal Period [As of May 31, 2016]
Not applicable.
(2) Transactions for which hedge accounting is applied
20th Fiscal Period [As of November 30, 2015]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Based on priceLong-termtransaction
accounting
quoted by partner
loans
82,800,000
81,300,000(579,871)
Fixed payable
methodfinancial institution
payableFloating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
(*)
loans
－
30,350,000
28,350,000
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
113,150,000
109,650,000(579,871)
21st Fiscal Period [As of May 31, 2016]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
quoted by partner
82,800,000
81,300,000(1,365,241)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans－
28,350,000
19,850,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
111,150,000
101,150,000(1,365,241)(*) Since the derivative financial instruments qualifying for the special accounting for interest rate swaps are accounted for as one
transaction together with their hedged item, long-term loans payable, the fair value of these derivatives is included in that ofrelated long-term loans payable. (Please refer to “Notes to Financial Instruments (2) Matters Concerning Fair Value, etc. of
Financial Instruments (Note 1) Liabilities (4) (6)”).

- 26 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period[Notes to Transactions with Related Parties](1) Transactions with related parties
20th Fiscal Period [From: June 1, 2015 To: November 30, 2015]
Not applicable.
21st Fiscal Period [From: December 1, 2015 To: May 31, 2016]
Not applicable.
(2) Notes to parent company and significant affiliated companies
20th Fiscal Period [From: June 1, 2015 To: November 30, 2015]
Not applicable.
21st Fiscal Period [From: December 1, 2015 To: May 31, 2016]
Not applicable.

- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period[Notes to Investment and Rental Properties]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The carrying amount,amount of increase (decrease) during period and fair value for these rental properties are as follows.
(Unit: thousand yen)
20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]

21st Fiscal Period[From: Dec. 1, 2015
To: May 31, 2016]

Carrying amount
Balance at beginning of period

406,699,107

439,123,698

Amount of increase (decrease) during period

32,424,591

11,990,626

Balance at end of period

439,123,698

451,114,325

459,820,000

483,390,000

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 20th Fiscal Period, the amount of increase is mainly
attributable to acquisition of 3 properties (32,518 million yen), and the amount of decrease is mainly attributable todepreciation (1,703 million yen). Of the amount of increase (decrease) for rental properties during the 21st Fiscal Period,
the amount of increase is mainly attributable to acquisition of 2 properties (21,890 million yen) and the amount ofdecrease is mainly attributable to sales of 2 properties (9,127 million yen) and depreciation (1,726 million yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by an external real estate appraiser.
The income (loss) for investment and rental properties are as presented in “Notes to Statements of Income.”- 28 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period[Segment Information, etc.](1) Segment Information
Segment information has been omitted because the Investment Corporation has no segment except the property leasing
business.
(2) Related Information
20th Fiscal Period [From: June 1, 2015 To: November 30, 2015]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment are inexcess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90% of
the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer accounts
for less than 10% of the operating revenue on statements of income.
21st Fiscal Period [From: December 1, 2015 To: May 31, 2016]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment are inexcess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90% of
the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer accounts
for less than 10% of the operating revenue on statements of income.

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period[Notes to Per Unit Information]
20th Fiscal Period
21st Fiscal Period[From: June 1, 2015
[From: Dec. 1, 2015
To: Nov. 30, 2015]
To: May 31, 2016]
Net assets per unit
511,777 yen
511,818 yen
Net income per unit
9,692.56 yen
10,847.50 yen(Note 1) The net income per unit was calculated by dividing the net income by the daily weighted average number of investment
units issued and outstanding. The diluted net income per unit is not stated as there are no diluted investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
20th Fiscal Period
21st Fiscal Period[From: June 1, 2015
[From: Dec. 1, 2015
To: Nov. 30, 2015]
To: May 31, 2016]
Net income (thousand yen)
4,688,815
5,250,193
Amounts not attributable to common unitholders (thousand yen)－－
Net income attributable to common investment units (thousand yen)
4,688,815
5,250,193
Average number of investment units during the period (unit)
483,754484,000[Notes to Significant Subsequent Events](1) Issuance of Investment Units
The Investment Corporation passed resolutions concerning issuance of new investment units as follows at the meeting of
the Board of Directors of the Investment Corporation held on July 15, 2016.
a. Issuance of new investment units through public offering (primary offering)(i) Number of units to be offered:
12,700 units(ii) Net price (paid-in price):
To be determined
Shall be determined at the Board of Directors meeting to be held
on one of the days between July 26, 2016 (Tuesday) and July 29,
2016 (Friday) (hereafter the “Price Determination Date”) in
accordance with the method pursuant to the article 25 of theRegulations Concerning Underwriting, etc. of Securities by Japan
Securities Dealers Association. Net Price (Paid-in Price) is theamount that the Investment Corporation is to receive as payment
for one new Investment Unit.
(iii) Net amount (total paid-in amount):
To be determined(iv) Payment date:August 2, 2016 (Tuesday) to August 5, 2016 (Friday)
The above payment date shall be the fifth day after the Price
Determination Date.
(v) Use of proceed:
Out of the fund procured, 6,000,000,000 yen will be used topartially fund the repayment of borrowings made to acquire Heiwa
Higashi-nihonbashi Building (a specified asset acquired on June 1,2016) and Square Daikanyama Building (a specified asset acquiredon June 29, 2016). The remaining amount will be allocated as cashon hand, which will decrease by funding the acquisitions and theexpenses associated with the acquisitions of Ogikubo TM Building
and Shinjuku West Building, specified assets scheduled to beacquired on July 21, 2016. The funds will be deposited at financial
institutions until the outlay and be used as part of acquisition fundsof specified assets or part of repayment of borrowings in the
future.
b. Issuance of new investment units by third-party allocation(i) Number of units to be offered (upper limit):(ii) Net price (paid-in price):(iii) Net amount (total paid-in amount) (upper limit):- 30 -

1,300 units
To be determined
Shall be determined at the Board of Directors
meeting to be held on the Price Determination Date.
The Net Price (Paid-in Price) shall be the same as the
Net Price (Paid-in Price) for Public Offering.
To be determinedDaiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period(iv) Allottee and number of units to be issued (upper limit):(v) Payment date:(vi) Use of proceed:

Daiwa Securities Co., Ltd. 1,300 units
August 31, 2016 (Wednesday)
Out of the fund procured, 6,000,000,000 yen will be
used to partially fund the repayment of borrowings
made to acquire Heiwa Higashi-nihonbashi Building(a specified asset acquired on June 1, 2016) and
Square Daikanyama Building (a specified asset
acquired on June 29, 2016). The remaining amountwill be allocated as cash on hand, which will
decrease by funding the acquisitions and theexpenses associated with the acquisitions of Ogikubo
TM Building and Shinjuku West Building, specified
assets scheduled to be acquired on July 21, 2016. The
funds will be deposited at financial institutions until
the outlay and be used as part of acquisition funds ofspecified assets or part of repayment of borrowings in
the future.

(Note) The investment units to be issued by third-party allocation may not be subscribed in whole or in part, and as a result,the subscription right will be forfeited and the final number of investment units issued with respect to the third-party
allocation may be reduced to the same extent, or such issuance itself may be cancelled.
(2) Acquisition of Assets
a. The Investment Corporation acquired a trust beneficial interest in real estate on June 1, 2016 as follows.
Summary of Asset Acquired
Property nameHeiwa Higashi-nihonbashi Building
Type of asset
Trust beneficial interest in domestic real estate
Location
3-10-6 Higashi Nihonbashi, Chuo-ku, Tokyo
6,370 million yen
Acquisition price(excluding associated acquisition costs, consumption tax, etc.)
Date of conclusion of purchase agreement
May 26, 2016
Date of delivery
June 1, 2016
Seller (Note)
Not disclosed (Note)(Note) Seller is a domestic special purpose company which has not agreed to disclose its name.
b. The Investment Corporation acquired a trust beneficial interest in real estate on June 29, 2016 as follows.
Summary of Asset Acquired
Property nameSquare Daikanyama Building
Type of asset
Trust beneficial interest in domestic real estate
Location
8-7 Daikanyamacho, Shibuya-ku, Tokyo
2,280 million yen
Acquisition price(excluding associated acquisition costs, consumption tax, etc.)
Date of conclusion of purchase agreement
June 21, 2016
Date of delivery
June 29, 2016
SellerHulic Co., Ltd.
c．The Investment Corporation determined on July 15, 2016 to acquire a trust beneficial interest in real estates asfollows.
(i) Summary of Asset Acquired
Property name
Type of asset
Location
Acquisition priceDate of conclusion of purchase agreement
Date of delivery
SellerShinjuku West Building
Trust beneficial interest in domestic real estate
8-2-5 Nishi Shinjuku, Shinjuku-ku, Tokyo
942 million yen(excluding associated acquisition costs, consumption tax, etc.)
July 15, 2016
July 21, 2016 (scheduled)
GK TC1- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period(ii) Summary of Asset Acquired
Property name
Type of asset
Location
Acquisition priceDate of conclusion of purchase agreement
Date of delivery
SellerOgikubo TM Building
Trust beneficial interest in domestic real estate
5-26-13 Ogikubo, Suginami-ku, Tokyo
3,800 million yen(excluding associated acquisition costs, consumption tax, etc.)
July 15, 2016
July 21, 2016 (scheduled)
GK TC1(3) Transfer of Asset
The Investment Corporation determined on July 7, 2016 to transfer trust beneficial interest in real estates as follows.
Summary of Asset Transferred
Daiwa Kudan
Property name
Type of asset
Trust beneficial interest in domestic real estate
4,040 million yen
Sales price(excluding settlement money for fixed property tax and city planningtax as well as consumption tax and local consumption tax)
Date of conclusion of purchase agreement
July 7, 2016
Date of delivery
July 7, 2016
Buyer
Not disclosed (Note)(Note) Buyer is a domestic corporation which has not agreed to disclose its name.
(4) Borrowing of Funds
a. The Investment Corporation borrowed funds on June 1, 2016 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “(2) Acquisition ofAssets a.,” etc.
Detail of borrowings
LenderDrawdown Loan amountdate(million yen)

Sumitomo Mitsui Banking
Corporation
June 1, 2016
Mizuho Bank, Ltd
The Bank of Tokyo-Mitsubishi
UFJ, Ltd.

2,000
2,000
2,000

Interest rate

Repayment date

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

May 31, 2017

Unsecured
Repayment inlump sum(Note) Interest payments shall be made at the end of every month and the maturity date (If any such date is not a businessday, the immediately following business day; and if such date falls within the next month, the preceding lastbusiness day of the month). Interest rate is calculated based on 1 month Japanese Yen TIBOR which Japanese
Bankers Association announces two business days prior to the first day of the applicable calculation period.
b. The Investment Corporation borrowed funds on June 29, 2016 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “(2) Acquisition ofAssets b.,” etc.
Detail of borrowings
Borrowing /Repayment
methodUnsecured
JBA 1 month Japanese
Sumitomo Mitsui Banking
June 29,
May 31, 2017
Repayment in
2,000
Yen TIBOR + 0.25%
Corporation
2016
lump sum(Note)(Note) Interest payments shall be made at the end of every month and the maturity date (If any such date is not a businessday, the immediately following business day; and if such date falls within the next month, the preceding last
LenderDrawdown
date

Loan amount(million yen)

- 32 -

Interest rate

Repayment date

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Periodbusiness day of the month.) Interest rate is calculated based on 1 month Japanese Yen TIBOR which Japanese
Bankers Association announces two business days prior to the first day of the applicable calculation period.

3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
During the fiscal period under review, there was no change to the unitholders’ capital as the Investment Corporation did notconduct any capital increase, etc. The overview of capital increase in the most recent 5 years up to the end of the 21st Fiscal Period
is as follows.

Payment date

Description

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

Unitholders’ capital(million yen)
Increase(Decrease)

Notes

Balance

Capital increase through public
41,092436,890
18,522
217,303 (Note 1)
offering
Capital increase by way of a
July 30, 2014
4,110
441,000
1,852
219,155 (Note 2)
third-party allotment
Capital increase through public
June 1, 2015
41,045
482,045
23,145242,301 (Note 3)
offering
Capital increase by way of aJune 24, 2015
1,955
484,000
1,102
243,403 (Note 4)
third-party allotment(Note 1) The Investment Corporation issued new investment units through public offering at an issue price of 466,537 yen per unit
(amount paid in: 450,746 yen) to procure funds for acquisition of acquisition properties, etc.
(Note 2) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 450,746 yen
per unit (amount paid in: 450,746 yen) to procure funds for acquisition of acquisition properties, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of 583,050 yen per unit
(amount paid in: 563,914 yen) to procure funds for acquisition of acquisition properties, repayment of borrowings, etc.
(Note 4) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 563,914 yen
per unit (amount paid in: 563,914 yen) to procure funds for acquisition of acquisition properties, repayment of borrowings,
etc.
July 2, 2014

- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
4. Changes in Directors
4.1. Changes in Directors at the Investment Corporation
Not applicable.
The incumbent Executive Director (Nobuaki Omura) has indicated his intent to resign from the post of Executive Director of
the Investment Corporation at the close of the 9th General Meeting of Unitholders scheduled to be held on August 19, 2016.
Accordingly, the Investment Corporation plans to submit a proposal for election of Executive Director at the General
Meeting of Unitholders as follows. When the proposal is approved and passed, the following candidate will assume the postof Executive Director on the same day.

Candidate for Executive Director

Name
Yoshimi Murakami

Yoshimi Murakami

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

Apr. 2009
Apr. 2010
Jun. 2012
Apr. 2013

Joined Daiwa Securities Co. Ltd. (currently, Daiwa Securities Group Inc.)
General Manager, Branch Manager, Fukui Branch of Daiwa Securities
Group Inc.
General Manager, Investment Service (Corporate Institutions) Dept. (II) of
Daiwa Securities Group Inc.
General Manager, Head of Corporate Institutions Dept. II, Daiwa Securities
SB Capital Markets Co. Ltd.
Executive Officer, Head of Main Retail Branch, Daiwa Securities Co., Ltd.
President, Daiwa Pension Consulting Co., Ltd.
Managing Director, Deputy Head of Sales Division, Corporate Client
Services Officer, Daiwa Securities Co., Ltd. and Senior Managing Director(part-time), Daiwa Investor Relations Co., Ltd.
Senior Managing Director, Deputy Head of Sales Division, Daiwa
Securities Co., Ltd.
President, Daiwa Securities Business Center Co., Ltd.
President, Daiwa Securities Business Center Co., Ltd. And President,
Daiwa Pension Consulting Co., Ltd.
Special Advisor, Daiwa Securities Business Center Co., Ltd.

- 34 -

Number ofshares held－

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
4.2. Changes in Directors at the Asset Manager
There were changes in Directors at the Asset Management Company on March 31, 2016 and on April 1, 2016.
The following is the status of directors at the Asset Manager as of the date of this document.
Title

Name

President andRepresentative
Director

Akira
Yamanouchi

Career summary

Apr. 1992

Joined Marubeni Corporation
Joined Pacific Management Corporation
Temporarily transferred to Pacific Investment Advisors Corporation(currently, AD Investment Management Co., Ltd.)
President and Representative Director of Pacific Investment Advisors
Corporation (with employment transfer)
Executive Director of Nippon Residential Investment Corporation(currently, Advance Residence Investment Corporation)
President and Representative Director of Pacific Investment Partners Inc.
(currently, Cushman & Wakefield Asset Management K.K.)
Representative Director (part-time) of Pacific Holdings, Inc.
Executive Managing Director of Cushman & Wakefield Asset Management
K.K.
Advisor of Daiwa Real Estate Asset Management Co., Ltd.
President and Representative Director of Daiwa Real Estate AssetManagement Co., Ltd. (current position)
Joined Daiwa Securities Co. Ltd. (currently, Daiwa Securities Group Inc.)
Head of Corporate Planning Department
Temporarily transferred to Daiwa Real Estate Asset Management Co., Ltd.
Vice-President and Representative Director (Head of IR & Planning
Department)
Vice-President and Representative Director (Head of Corporate Planning
Department)
Vice-President and Representative Director (Head of Business Planning and
Finance Department)
Vice-President and Representative Director (Head of Business Planning
Department)
Executive Director of Daiwa Residential Private Investment Corporation(current position)
Executive Director of Japan Health Care Investment Corporation
Resigned from Executive Director of Japan Health Care Investment
Corporation
Transferred to Vice-President and Representative Director (Head ofBusiness Planning) (current position)
Joined Cititrust & Banking Corporation

May 2004

Joined K.K. DaVinci AdvisorsFeb. 2006

Transferred to K.K. DaVinci Select (currently, Daiwa Real Estate AssetManagement Co., Ltd.)Mar. 2007

Head of IR & Business Planning Department

Mar. 2008
Nov. 2008

President and Representative Director
Executive Director, DA Office Investment Corporation (currently, Daiwa
Office Investment Corporation)
Vice President and Representative Director, Daiwa Real Estate AssetManagement Co., Ltd.
Resigned from Executive Director, Daiwa Office Investment CorporationVice-President and Representative Director (Head of Advisory Department)
Vice-President and Representative Director (Head of Fund management
Department)
Vice-President and Representative Director (Head of Customer Relations
Department and Fund management Department)
Vice-President and Representative Director (Head of Fund management
Department) (current position)

Apr. 1986
Apr. 2002
May 2002
Mar. 2003
Aug. 2004
Feb. 2008
Feb. 2009
Jul. 2009
Apr. 2010
May 2010

Vice-President
andRepresentative
Director (Headof Business
Planning)

Yuji
Shinotsuka

Apr. 1989
Jun. 2009
Jul. 2009

Nov. 2009
Apr. 2011
Oct. 2012
Dec. 2012
Jan. 2014
Aug. 2014
Apr. 2016

Vice President
andRepresentative
Director (Headof FundManagement
Department)

YoshikiNishigaki

May 2010
Aug. 2010
Feb. 2011
Apr. 2012
Oct. 2013
Apr. 2014- 35 -

Number ofshares held－－－

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

Title
Director (Headof
Administration
Department)

NameNaoyukiOwa

Career summary
Apr. 1986
Apr. 1990
Jun. 2006

Oct. 2006
Jul. 2009
Director(non-executive)

MikitaKomatsu

Apr. 1985
Oct. 2005
Oct. 2008
Apr. 2010

President of Daiwa Securities SMBC Europe Limited (currently Daiwa
Capital Markets Europe Limited)
Senior Managing Director, Daiwa Securities Capital Markets Co. Ltd.

Apr. 2011

Senior Managing Director, Daiwa Securities Group Inc.

Apr. 2012

Director (non-executive) of Daiwa Real Estate Asset Management Co., Ltd.
(current position)
Executive Managing Director of Daiwa Securities Group Inc.
Senior Managing Director of Daiwa Securities Group Inc.
Director, Senior Managing Director of Daiwa Securities Group Inc. (current
position)
Joined Daiwa Securities Co. Ltd. (currently, Daiwa Securities Group Inc.)
Managing Director of Secretariat Office of Daiwa Securities Group Inc.

Apr. 2013
Apr. 2016
Jun. 2016
Director(non-executive)

Akihiko
Ogino

Apr. 1989
Oct. 2008
Apr. 2010
Apr. 2011
Jul. 2011
Apr. 2014

AuditorTamaki
Shibayama

Director of Daiwa Real Estate Asset Management Co. Ltd. (non-executive)(current position)

Apr. 1982
Sept. 1986
Apr. 1999
Apr. 2002

Joined the Japan Chamber of Commerce and Industry
Joined Daiwa Securities Co., Ltd. (currently Daiwa Securities Group Inc.)
Transferred to Daiwa Securities SB Capital Markets Co., Ltd.
General Manager of Initial Public Department of Daiwa Securities SMBC
Co., Ltd.
Head of Corporate Auditor’s Office of Daiwa Securities Capital Markets
Co., Ltd.
Managing Director of Corporate Clients Banking Department (VII) of
Daiwa Securities Co., Ltd.
Auditor of Daiwa Real Estate Asset Management Co. Ltd. (current position)
Joined Daiwa Securities Co. Ltd. (currently, Daiwa Securities Group Inc.)
Transferred to Daiwa Securities SB Capital Markets Co., Ltd.
Transferred to Daiwa Securities Group Inc.
Transferred to Daiwa Securities SMBC Co., Ltd. (currently Daiwa
Securities Co. Ltd.)
Head of Corporate Planning Department of Daiwa Securities SMBC Co.
Ltd.
Managing Director of Asia Strategic Planning Department of Daiwa
Securities SMBC Co. Ltd.
Managing Director of Investor Relations Office of Daiwa Securities Group
Inc.
Managing Director of Internal Audit Department of Daiwa Securities GroupInc.
Executive Director of Daiwa Securities Group Inc.
Auditor of Daiwa Real Estate Asset Management Co. Ltd. (non-executive)(current position)
Director of Daiwa Securities Group Inc. (current position)

Apr. 2012

Morimasa
MatsudaApr. 2015
Apr. 1989
Apr. 1999
Jun. 2000
Feb. 2003
Jun. 2007
Dec. 2009
Apr. 2011
Apr. 2013
Apr. 2016

Jun. 2016－－－

Managing Director of Corporate Planning Department
Managing Director of Corporate Planning Department and Legal
Department of Daiwa Securities Group Inc.
Managing Director of Corporate Planning Department of Daiwa Securities
Group Inc.
Executive Officer of Daiwa Securities Group Inc. (current position)

Apr. 2016

Oct. 2010

Auditor(non-executive)

Joined Tokyo High Court as Court Administrative Official
Joined Daiwa Securities Co. Ltd. (currently, Daiwa Securities Group Inc.)
Head of Corporate Planning Department and Treasury Department of
Daiwa Securities SMBC Co., Ltd. (currently, Daiwa Securities CapitalMarkets Co. Ltd.)
Head of Corporate Planning Department of Daiwa Securities Group Inc.
Temporarily transferred to Daiwa Real Estate Asset Management Co., Ltd.
Director (Head of Administration Department) (current position)
Joined Daiwa Securities Co. Ltd. (currently, Daiwa Securities Group Inc.)
Head of Finance Department, Daiwa Securities Group Inc.

Number ofshares held

- 36 -－－

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

Title

Name

Auditor(non-executive)

Shinji Kiso

Career summary
Apr. 2001
Dec. 2009
Jul. 2011
Jun. 2013
May 2014
Jun. 2015
Jan. 2016

Joined Daiwa Securities SMBC Co. Ltd. (currently, Daiwa Securities Co.
Ltd.)
Corporate Planning Department of Daiwa Securities Group Inc. (current
position)
Corporate Planning Department of Daiwa Securities Co. Ltd. (current
position)
Director (non-executive) of ASTMAX Co., Ltd. (current position)
Auditor of Daiwa Real Estate Asset Management Co. Ltd. (non-executive)(current position)
Director (non-executive) of Money Partners Group Co., Ltd. (current
position)
Auditor (non-executive) of IDI Infrastructures, Inc. (current position)(Note 1) Toshihiro Matsui retired as director (non-executive), effective March 31, 2016.
(Note 2) Masaru Shirataki retired as auditor (non-executive), effective March 31, 2016.
(Note 3) Akihiko Ogino assumed the office of director (non-executive), effective April 1, 2016.
(Note 4) Morimasa Matsuda assumed the office of auditor (non-executive), effective April 1 2016.

- 37 -

Number ofshares held－

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

5. Reference Information
5.1. Investment Status
Type of asset

Real estate

Trust beneficial interestin real estate

Use

OfficeOfficeRegion21st Fiscal Period(As of May 31, 2016)
Total amount owned
As a percentage of total(million yen) (Note 1)
assets (%)

Five Central Wards of Tokyo

16,057

3.4

Five Central Wards of Tokyo

385,92081.0

Greater Tokyo

34,351

7.2

Major Regional Cities

14,7843.1

451,114

94.6

25,575

5.4

476,690100.0[451,114][94.6]

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

- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
5.2. Investment Real Estate Properties (As of May 31, 2016)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Carrying
Estimated price at
Type ofprice
amountend of period
RegionProperty namespecified(million yen) (million yen)(million yen)
asset
(Note 4)(Note 5)(Note 6)
Daiwa Ginza
14,10013,243
16,300Real estate
Daiwa Ginza Annex
3,050
2,814
3,440
Daiwa Shibaura
8,265
8,005
7,520
Daiwa Minami-Aoyama
4,550
4,454
4,360
Daiwa Sarugakucho
3,190
3,211
3,340
Daiwa A Hamamatsucho (Note 8)
2,865
2,822
3,320
Daiwa Jingumae
2,800
2,700
2,290
Daiwa Shibadaimon
2,578
2,389
2,900
Daiwa Misakicho
2,346
2,185
2,680
Daiwa Shimbashi 510
2,080
2,134
2,430
Daiwa Tsukijiekimae
1,560
1,341
1,590
Daiwa Tsukiji
1,240
1,164
1,390
Daiwa Tsukishima
7,840
6,952
9,170
Daiwa Nihonbashi Horidomecho
2,520
2,485
2,510
Daiwa Azabudai
1,600
1,536
1,830
Daiwa Kyobashi
3,460
3,300
3,270
Daiwa Kojimachi 4-chome
2,910
2,865
2,690
Daiwa Onarimon
13,86013,44913,100Shinjuku Maynds Tower (Note 8)
133,800
130,157
119,000Five
SHIBUYA EDGE
5,900
5,708
4,750
Central Daiwa Kodenmacho
2,460
2,400
2,110
Trust
Wards ofDaiwa Jimbocho
4,150
4,080
3,340
beneficial
Tokyo
interest in
5,000
4,845
5,510
(Note 1) Daiwa Nishi-Shimbashi
real estate
Daiwa Kudan
4,000
3,803
3,360
Daiwa Kayabacho Building
5,600
5,369
7,570
Daiwa Jimbocho 3-chome
3,550
3,450
4,500
E SPACE TOWER
24,00023,66432,500Daiwa Nihonbashi Hongokucho
1,721
1,641
2,190
shinyon curumu
9,650
9,811
12,600Daiwa Akasaka
9,200
9,385
12,500Daiwa Shibuya Miyamasuzaka
7,000
7,233
8,580
Azabu Green Terrace
14,000
14,23915,700Daiwa Ebisu 4-chome
4,135
4,275
5,300
LAQUAS Higashi Shinjuku
8,450
8,610
10,100Concept Aoyama
9,800
10,045
11,400Shinsen Place
4,800
4,915
6,150
Glass City Shibuya
16,00016,09417,500River Gate
28,00028,19029,900Daiwa Hatchobori ekimae
2,871
2,974
3,130
Daiwa Hatchobori ekimae West
1,647
1,709
1,750
Nikko Building
13,71013,983
14,400Kirin Nihonbashi Building
8,180
8,326
8,220
Total for Five Central Wards of Tokyo (42 properties)
408,438
401,978
426,190- 39 -

Investment
ratio
(%)
(Note 7)
3.1
0.7
1.8
1.0
0.7
0.6
0.6
0.6
0.5
0.5
0.3
0.3
1.7
0.5
0.3
0.8
0.6
3.0
29.2
1.3
0.5
0.9
1.1
0.9
1.2
0.8
5.2
0.4
2.1
2.0
1.5
3.1
0.9
1.8
2.1
1.0
3.5
6.1
0.6
0.4
3.0
1.8
89.1

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

RegionProperty name

Type ofspecifiedasset

Acquisition
price

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

(Note 4)(Note 5)Investment
ratio
(%)
(Note 7)
0.6
1.7
0.4
0.4
3.3
1.2
7.7

(Note 6)
Daiwa Higashi-Ikebukuro
2,958
2,727
3,580
Daiwa Shinagawa North
7,710
7,267
5,870
Trust
Greater Daiwa Osaki 3-chome
1,650
1,649
2,270
beneficial
Tokyo
interest in
Daiwa
Kamiooka
2,000
1,975
2,470
(Note 2)
real estate
Integral Tower
15,22015,113
18,100Meguro Place Tower
5,600
5,616
6,290
Total for Greater Tokyo (6 properties)
35,13834,351
38,580Major
Trust
Daiwa Meieki
5,300
5,315
7,320
1.2
Regional
beneficial
Citiesinterest in
Kitahama Grand Building
9,481
9,468
11,3002.1(Note 3)
real estate
Total for Major Regional Cities (2 properties)
14,781
14,784
18,6203.2
Total (50 properties)
458,357
451,114483,390100.0(Note 1) “Five Central Wards of Tokyo” means Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards.
(Note 2) “Greater Tokyo” means Tokyo excluding the Five Central Wards of Tokyo, Kanagawa, Chiba and Saitama prefectures.
(Note 3) “Major Regional Cities” means Osaka area (i.e., Osaka, Kyoto and Hyogo prefectures), Nagoya area (Aichi, Mie andGifu prefectures) and ordinance-designated cities and core cities under the Local Autonomy Act.
(Note 4) Acquisition price is excluding acquisition costs, fixed property tax, city planning tax, consumption tax and local
consumption tax.
(Note 5) Carrying amount is the book value after deducting depreciation as of May 31, 2016.
(Note 6) Estimated price at end of period is the price as of May 31, 2016 stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii Appraisal & Investment
Consulting, Inc. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 7) Investment ratio is the acquisition price of each property expressed as a percentage of the total amount of acquisition
prices, rounded to one decimal place.
(Note 8) For Daiwa A Hamamatsucho Building and Shinjuku Maynds Tower, the figures are those pertaining to the Investment
Corporation’s ownership interest.

- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
5.2.2. Summary of Building and Leasing of Investment Real Estate
RegionProperty nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho (Note 8)
Daiwa A Hamamatsucho
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho (Note 8)
Daiwa Shimbashi 510
Daiwa Tsukijiekimae
Daiwa Tsukiji
Five Central
Wards of Daiwa Tsukishima
Tokyo
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note 9)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building (Note 8)

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

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

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

July 1963

8,175.26

7,680.00

27

93.9

388,955

Aug. 1972

2,032.11

2,032.11

7

100.0

89,018Oct. 1987

9,619.67

9,538.13

54

99.1

243,550

Sept. 1990

2,715.54

2,304.37

5

84.8

123,516

June 1985

3,657.43

3,657.43

1

100.0

-

July 1993

3,663.38

3,663.38

12

100.0

131,581Dec. 1997

2,198.61

2,198.61

4

100.0

71,486

Nov. 1996

2,386.48

2,386.48

6

100.0

84,201

July 1996

2,137.53

2,137.53

1

100.0

-

Apr. 1974

2,641.56

2,326.23

6

88.0

78,385Jan. 1996

2,659.59

2,659.59

6

100.0

55,724Jan. 1990

1,487.82

1,328.52

4

89.2

45,389July 1996

8,426.85

8,426.853

100.0

274,707

Apr. 1993

2,850.81

2,850.818

100.0

82,806

Apr. 1984

1,697.88

1,697.88

10

100.0

56,087

Oct. 1974

3,265.83

3,265.83

9

100.0

97,019Oct. 1987

2,690.90

2,690.90

7

100.0

90,734

Apr. 1973

11,614.92

11,614.92

7

100.0

337,495

Sept. 1995

45,543.97

45,012.19

35

98.8

2,455,214Aug. 2006

2,480.65

2,480.65

5

100.0

114,261

Mar. 1985

2,379.31

2,379.31

8

100.0

63,626

Mar. 1997

3,164.26

3,164.26

7

100.0

103,433

July 1993

4,815.84

4,815.84

11

100.0

156,566

Mar. 1987

2,882.61

2,882.61

6

100.0

98,947

Apr. 2010

5,899.11

5,899.11

1

100.0

-

- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

RegionProperty nameDaiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Shibuya Dougenzaka (Note 10)
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Azabu Green Terrace
Daiwa Ebisu 4-chome (Note 8)
LAQUAS Higashi Shinjuku
Concept Aoyama
Shinsen Place (Note 8)
Glass City Shibuya
River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Nikko Building
Kirin Nihonbashi Building (Note 8)

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

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Feb. 2010

2,889.34

2,889.348

100.0

110,547

Oct. 2002

13,960.87

13,960.87

6

100.0

785,083

May 2010

2,143.08

2,143.08

6

100.0

60,579Jan. 2012

6,751.31

6,751.31

18

100.0

326,200

Mar. 1988

-

-

-

-

93,374

Sept. 1990

8,739.17

8,739.17

20

100.0

311,393

Dec. 1988

6,327.95

6,327.95

8

100.0

233,581

Sept. 2009

13,234.39

12,560.80

10

94.9

413,576

Dec. 1997

2,885.64

2,885.64

1

100.0

-

Aug. 2010

7,498.33

7,498.33

4

100.0

225,363

Nov. 2001

4,421.79

4,045.73

4

91.4

215,914

Sept. 2001

2,811.35

2,811.35

1

100.0

-

Feb. 2004

8,566.73

8,566.73

11

100.0

370,957

Feb. 1994

32,063.06

31,621.00

85

98.6

932,951

Feb. 2006

2,622.42

2,622.429

100.0

78,266

Feb. 1996

1,723.15

1,723.158

100.0

44,901

Aug. 1991

6,967.61

6,924.71

7

99.3

85,050Feb. 1999

5,630.17

5,630.17

1

100.0

-

270,324.28

266,795.29

457

98.6

10,110,865

June 1993

4,461.47

4,461.477

100.0

122,206

July 1991

6,548.17

6,548.17

14

100.0

188,044

Sept. 2007

1,786.06

1,409.70

4

78.9

60,999Total for Five Central Wards of Tokyo (43 properties)
Daiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Daiwa Osaki 3-chome
GreaterTokyo

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

Daiwa Kamiooka

S / SRC
B3 / 7F

May 2011

2,630.30

2,364.57

8

89.8

89,082Integral Tower (Note 11)

S/SRC
B2/18F

June 1993

17,778.14

17,697.94

999.5

576,531

Meguro Place Tower

S/SRC
B2/14F

July 2009

3,519.50

3,519.50

14

100.0

138,929

36,723.64

36,001.35

56

98.0

1,175,793

Sept. 1986

-

-

-

-

74,068Dec. 2007

7,461.90

7,461.90

24

100.0

249,751

Feb. 2008

13,517.62

13,517.62

6

100.0

337,322

20,979.52
328,027.44

20,979.52
323,776.16

30
543

100.0
98.7

661,142
11,947,802

Total for Greater Tokyo (6 properties)
Daiwa Minami-Senba (Note 12)
Major
Regional
CitiesRent revenue
Occupancy
during current
rate
period(%)(thousand yen)
(Note 6)(Note 7)

Construction
completion(Note 2)

Daiwa Meieki
Kitahama Grand Building

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

Total for Major Regional Cities (3 properties)
Total (52 properties)- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period(Note 1) “Structure and number of floors” are the entries in the real estate registry of the building of the applicable investment
real estate property. “S” refers to steel-framed structure, “RC” refers to reinforced concrete structure, “SRC” refers tosteel-framed reinforced concrete structure, “B” refers to floors below ground and “F” refers to floors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment real estate
property.
(Note 3) “Leasable floor area” represents the floor area of the building of the applicable property that is leasable, not including
the leasable area of the land (including level parking space), and is the floor area indicated in the lease contract, etc. as of
May 31, 2016.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease agreements, etc. executed with
end-tenants as of May 31, 2016.
(Note 5) “Total number of tenants” is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 6) “Occupancy rate” is the figure arrived at when leased floor area is divided by leasable floor area, rounded down to one
decimal place.
(Note 7) “Rent revenue during current period” is rent income, common area charges income, parking lot income and otherincome generated from the applicable investment real estate property during the 21st Fiscal Period, rounded down to thenearest thousand yen.
(Note 8) Not shown for such reasons as consent was not obtained from major tenants to disclose the rent revenue during current
period for the properties.
(Note 9) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the common
ownership interest corresponding to six-sevenths of the entire property. Accordingly, leasable floor area and leased floorarea are the floor areas corresponding to six-sevenths of the entire building.
(Note 10) The property was divested on April 1, 2016. This is reflected in the totals for the number of properties and the rent
revenue during current period.
(Note 11) The buildings consist of three registrations. Of these, the details of the major building are shown here.
(Note 12) The property was divested on April 13, 2016. This is reflected in the totals for the number of properties and the rent
revenue during current period.

- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A. Capital Expenditures for the 22nd 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)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Tsukishima(Chuo-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Shibaura(Minato-ku, Tokyo)
Daiwa Jingumae(Shibuya-ku, Tokyo)

Expected construction amount (million yen)
Scheduled
implementation
Amount paid
Total amount
Total amountperiodduring current period
already paid
From: Aug. 201677－－
To Nov. 2016
From: Apr. 201675－－
To Aug. 2016
From: Jul. 201674－－
To Nov. 2016
From: Apr. 201663－－
To Nov. 2016
From: Jun. 201657－－
To Jul. 2016

PurposeAdditional installment of security
camerasRenovation work of toilets
Repair work of mechanical parking
equipment
Upgrading of elevators
Upgrading of individual
air-conditioning equipment

B. Capital Expenditures during the 21st Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the 21st
Fiscal Period. Capital expenditures for the 21st Fiscal Period amounted to 516 million yen and, when combined with the 403
million yen in repair expenses charged to the 21st Fiscal Period expenses, totals 920 million yen in construction work were
implemented.
Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
River Gate
(Chuo-ku, Tokyo)
Daiwa Kojimachi 4-chome(Chiyoda-ku, Tokyo)

PurposeConstruction amount paid
(million yen)

PeriodReplacement of hot-water coil
Additional installment of special high voltage electric
substation bank and MCB board
Renewal work of elevators

Other

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

Mar. 2016
May 2016
Jan. 2016
May 2016
Apr. 2016
May 2016
Dec. 2015
May 2016

123
84
21
287

Total

516

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)
17th
18th
19th
20th
21st
FiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscal period[From: Dec. 1, 2013
To: May 31, 2014]

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

830

1,021

1,199

2,742

1,060

794

764

1,678

－

1,255

603

586

135

1,682

472

1,021

1,199

2,742

1,060

1,843

- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

5.2.4. Summary of Estimated Price at End of Period (As of May 31, 2016)
Summary of Appraisal Report
Property nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho
Daiwa A Hamamatsucho (Note 2)
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho
Daiwa Shimbashi 510
Daiwa Tsukijiekimae (Note 3)
Daiwa Tsukiji
Daiwa Tsukishima
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note 4)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building
Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Azabu Green Terrace
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Concept Aoyama
Shinsen Place
Glass City Shibuya
River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Nikko Building
Kirin Nihonbashi Building
Daiwa Higashi-Ikebukuro

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

Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)
16,000Discount Terminal
cap rate
rate
(%)
(%)

16,30016,600

3.8

3.6

4.0

3,440

3,470

3.7

3,410

3.5

3.9

7,520

7,630

4.2

7,470

4.0

4.4

4,360

4,410

4.1

4,300

3.9

4.3

3,340

3,390

4.7

3,290

4.5

4.9

3,320

3,380

4.0

3,300

3.8

4.2

2,290

2,310

4.0

2,270

3.8

4.2

2,900

2,980

3.9

2,870

3.7

4.1

2,680

2,710

4.2

2,660

4.0

4.4

2,430

2,480

4.3

2,370

4.1

4.5

1,590

1,600

4.5

1,580

4.5

4.7

1,390

1,380

4.4

1,400

4.4

4.6

9,170

9,270

4.4

9,120

4.0

4.5

2,510

2,550

4.3

2,470

4.1

4.5

1,830

1,860

4.2

1,800

4.0

4.4

3,270

3,310

4.2

3,230

4.0

4.4

2,690

2,710

3.9

2,670

3.7

4.1

13,10013,4004.0

12,8003.8

4.2

119,000

142,000

3.5

136,000

3.3

3.7

4,750

4,840

4.0

4,660

3.8

4.2

2,110

2,130

4.5

2,090

4.3

4.7

3,340

3,420

4.3

3,300

4.3

4.5

5,510

5,640

4.0

5,460

3.8

4.2

3,360

3,430

4.1

3,350

4.1

4.3

7,570

7,700

3.6

7,510

3.4

3.8

4,500

4,600

3.6

4,450

3.4

3.8

32,50033,1003.6

31,800

3.4

3.8

2,190

2,220

4.2

2,170

4.0

4.4

12,60012,8003.5

12,5003.3

3.7

12,50012,8003.5

12,400

3.3

3.7

8,580

8,730

3.8

8,420

3.6

4.0

15,70015,8004.1

15,600

3.8

4.2

5,300

5,270

3.9

5,310

3.7

4.1

10,10010,500

3.5

9,940

3.3

3.7

11,40011,5003.6

11,300

3.3

3.7

6,150

6,230

3.6

6,120

3.5

3.8

17,50017,6003.7

17,300

3.4

3.8

29,90030,0004.3

29,700

4.0

4.4

3,130

3,280

3.7

3,070

3.5

3.9

1,750

1,830

3.8

1,720

3.6

4.0

14,40015,1003.6

14,100

3.4

3.8

8,220

8,460

4.1

7,980

3.9

4.2

3,580

3,640

4.4

3,550

4.2

4.6

- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
Summary of Appraisal Report
Property name

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

Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminal
cap rate
rate
(%)
(%)

5,870
5,980
4.5
5,750
4.3
4.7
Daiwa Shinagawa North
2,270
2,310
4.0
2,250
3.8
4.2
Daiwa Osaki 3-chome
2,470
2,470
4.8
2,470
4.6
5.0
Daiwa Kamiooka
18,10018,5004.0
17,9003.8
4.2
Integral Tower
6,290
6,510
3.8
6,200
3.6
4.0
Meguro Palace Tower
7,320
7,490
4.4
7,250
4.4
4.6
Daiwa Meieki
11,30011,6004.0
11,100
3.8
4.2
Kitahama Grand Building
483,390
512,920495,730
Total(Note 1) “Estimated price at end of period” is the price as of May 31, 2016 stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii Appraisal & Investment
Consulting, Inc. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 2) For Daiwa A Hamamatsucho, the prices are those pertaining to the Investment Corporation’s ownership interest.
(Note 3) Discount rate for Daiwa Tsukijiekimae is the figure after the 3rd fiscal year (4.4% in 2nd fiscal years).
(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment Corporation’sownership interest, and the price indicated by the direct capitalization method and price indicated by the DCF method
are the prices pertaining to the entire Property.

- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st 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 21st Fiscal Period (from December 1,
2015 to May 31, 2016). Income (loss) information is presented in accordance with “3. Financial Statements; 3.7. Notes to
Significant Accounting Policies” outlined earlier.
RegionPrice
information

Five Central Wards of Tokyo

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

14,100

3,050

8,265

4,550

3,190

3.1

0.7

1.8

1.0

0.7

Carrying amount (million yen)

13,243

2,814

8,005

4,454

3,211

Estimated price at end of period(million yen)

16,300

3,440

7,520

4,360

3,340

Number of tenants (Note 1)

Daiwa
Shibaura

Daiwa
Sarugakucho(Note 4)

Daiwa
Ginza

Investment ratio (%)

Daiwa
Ginza Annex

Daiwa
MinamiAoyama

Property name

27

7

54

5

1

Leasable floor area (m2)8,175.26

2,032.11

9,619.67

2,715.54

3,657.43

Leased floor area (m2)

7,680.00

2,032.11

9,538.13

2,304.37

3,657.43

End of May 2014

92.6

100.0

98.7

100.0

100.0

End of Nov. 2014

92.1

100.0

98.3

100.0

100.0

End of May 2015

91.8

100.0

99.5

100.0

100.0

End of Nov. 2015

93.9

100.0

98.7

100.0

100.0

End of May 2016

93.9

100.0

99.1

84.8

100.0

183

183

183

183

183

388,955

89,018245,293

123,516－

388,955

89,018

243,550

123,516

－

－

－

1,743

－

－

169,150

40,20592,731

43,655－

Consignment expenses

19,826

6,693

16,6495,585－

Utilities expenses

24,964

5,910

19,9806,440－

Taxes and dues

28,001

9,097

19,598

11,849－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Non-life insurance expenses

447

104

408

163

－

Repair expenses

13,730453

10,337

6,224－

Depreciation (C)70,338

17,94525,736

13,391－Other lease business expenses

11,841

－

20

－

－

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

219,805

48,813

152,562

79,861－

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

290,143

66,759178,298

93,252

84,830

4,589

2,529

9,384

2,479

－

NCF [(E) – (F)] (thousand yen)

285,554

64,229168,914

90,772

84,830

Expense rate (%) [(B) ÷ (A)]

43.49

45.16

37.80

35.34

－

55,915

18,11938,63323,24013,326

346,060

86,510347,210

185,215

171,199

Capital expenditures (F) (thousand yen)

Reference
information

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

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property nameDaiwa A
Hamamatsucho

Daiwa Jingumae

Daiwa
Shibadaimon

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

2,865

2,800

2,578

2,346

2,080

Daiwa Misakicho Daiwa Shimbashi(Note 4)510

Investment ratio (%)

0.6

0.6

0.6

0.5

0.5

Carrying amount (million yen)

2,822

2,700

2,389

2,185

2,134

Estimated price at end of period(million yen)

3,320

2,290

2,900

2,680

2,430

Number of tenants (Note 1)

12

4

6

1

6

Leasable floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,641.56

Leased floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,326.23

End of May 2014

100.0

100.0

100.0

100.0

99.4

End of Nov. 2014

100.0

100.0

100.0

100.0

99.6

End of May 2015

100.0

100.0

100.0

100.0

99.6

End of Nov. 2015

100.0

100.0

100.0

100.0

99.6

End of May 2016

100.0

100.0

100.0

100.0

88.0

183

183

183

183

183

131,581

71,486

84,201－

78,385131,581

71,486

84,201－

78,385

－

－

－

－

－

－

38,467

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Reference
information

73,767

23,68829,274

Consignment expenses

10,377

4,073

6,907

－

6,138

Utilities expenses

8,960

5,162

6,199

－

5,988

Taxes and dues

8,773

6,365

6,239

－

5,704
133

Non-life insurance expenses

190

88

130

－

Repair expenses

992

370

154

－

12,801

Depreciation (C)15,072

7,621

9,643

－

7,682

Other lease business expenses

29,400

7

－

－

18

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

57,81347,79754,927－39,918

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

72,88655,41864,57061,32147,600Capital expenditures (F) (thousand yen)

10,04010,389890

1,041

10,977

NCF [(E) – (F)] (thousand yen)

62,84645,02963,68060,28036,623

Expense rate (%) [(B) ÷ (A)]

56.06

33.14

34.77

－

49.07

17,345

12,73012,142

10,328

11,283

100,430

117,930

150,927

182,856

169,555

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

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Nihonbashi
Horidomecho

Daiwa AzabudaiMar. 2006

May 2006

May 2006

1,240

7,840

2,520

1,600

Property name

Daiwa
Tsukijiekimae

Daiwa
Tsukiji

Daiwa
Tsukishima

Acquisition dateJan. 2006

Jan. 2006

Acquisition price (million yen)

1,560

Investment ratio (%)

0.3

0.3

1.7

0.5

0.3

Carrying amount (million yen)

1,341

1,164

6,952

2,485

1,536

Estimated price at end of period(million yen)

1,590

1,390

9,170

2,510

1,830

Number of tenants (Note 1)

6

4

3

8

10

Leasable floor area (m2)2,659.59

1,487.82

8,426.85

2,850.81

1,697.88

Leased floor area (m2)2,659.59

1,328.52

8,426.85

2,850.81

1,697.88

End of May 2014

100.0

100.0

100.0

100.0

100.0

End of Nov. 2014

100.0

100.0

100.0

87.8

100.0

End of May 2015

100.0

89.2

100.0

100.0

100.0

End of Nov. 2015

100.0

89.2

100.0

100.0

100.0

End of May 2016

100.0

89.2

100.0

100.0

100.0

183

183

183

183

183

55,72445,389274,70782,806

57,46755,72445,389274,70782,80656,087

－

－

－

－

1,380

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

39,69817,981

101,168

32,833

26,952

Consignment expenses

4,300

3,817

12,029

5,203

3,731

Utilities expenses

5,740

2,663

21,372

5,289

3,300

Taxes and dues

5,072

3,866

13,681

6,706

4,911

Non-life insurance expenses

104

67

309

141

79

Repair expenses

10,968

271

160

1,420

6,252

Depreciation (C)13,493

7,295

53,615

14,072

8,677

18

－

－

－

－

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

16,02527,407

173,539

49,97230,515

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

29,51934,703

227,154

64,04539,193

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

148

－

－

3,747

2,371

NCF [(E) – (F)] (thousand yen)

29,371

34,703

227,154

60,29736,822

Expense rate (%) [(B) ÷ (A)]

71.24

39.62

36.83

39.65

46.90

10,113

7,666

27,332

13,192

9,805

120,530

109,848

102,930

234,846

108,280

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

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
RegionPrice
information

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

SHIBUYAEDGE

Property nameDaiwa Kyobashi

Acquisition dateJuly 2006

Oct. 2006

Dec. 2006

July 2007 andNov. 2007

July 2007

Acquisition price (million yen)

3,460

2,910

13,860133,800

5,900

Investment ratio (%)

0.8

0.6

3.0

29.2

1.3

Carrying amount (million yen)

3,300

2,865

13,449130,157

5,708

Estimated price at end of period(million yen)

3,270

2,690

13,100119,000

4,750

Number of tenants (Note 1)

9

7

7

35

5

Leasable floor area (m2)

3,265.83

2,690.90

11,614.92

45,543.97

2,480.65

Leased floor area (m2)

3,265.83

2,690.90

11,614.92

45,012.19

2,480.65

End of May 2014

100.0

100.0

100.0

94.7

100.0

End of Nov. 2014

100.0

100.0

100.0

94.0

100.0

End of May 2015

100.0

100.0

100.0

98.8

100.0

End of Nov. 2015

100.0

100.0

100.0

96.1

100.0

End of May 2016

100.0

100.0

100.0

98.8

100.0

183

183

183

183

183

97,01990,734

337,495

2,455,214

114,261

97,01990,734

337,495

2,455,214

114,261

－

－

－

－

－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

48,22540,698111,463

1,117,289

37,773

Consignment expenses

6,980

5,844

15,912

161,946

6,878

Utilities expenses

7,870

6,228

22,702271,207

6,905

Taxes and dues

7,114

14,93534,928247,651

7,250

Non-life insurance expenses

138

154

429

3,938

112

Repair expenses

6,382

1,690

6,601

47,639419

Depreciation (C)19,73911,84330,890380,807

16,207

－

－

－

4,098

－

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

48,79450,036226,031

1,337,925

76,488

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

68,534

61,880256,922

1,718,732

92,695

Capital expenditures (F) (thousand yen)

6,913

24,961

1,337

155,135

529

NCF [(E) – (F)] (thousand yen)

61,621

36,918

255,585

1,563,596

92,166

Expense rate (%) [(B) ÷ (A)]

49.71

44.85

33.03

45.51

33.06

14,09629,65969,813501,241

14,474140,200

169,753459,880

4,460,870

62,460

Other lease business expenses

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 50 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
NishiShimbashi

Daiwa
Kayabacho
Building(Note 4)

Property name

Daiwa
Kodenmacho

Daiwa Jimbocho

Acquisition dateAug. 2007

Mar. 2010

Aug. 2010

Sept. 2010

Mar. 2011

Acquisition price (million yen)

2,460

4,150

5,000

4,000

5,600

Daiwa
Kudan

Investment ratio (%)

0.5

0.9

1.1

0.9

1.2

Carrying amount (million yen)

2,400

4,080

4,845

3,803

5,369

Estimated price at end of period(million yen)

2,110

3,340

5,510

3,360

7,570

Number of tenants (Note 1)

8

7

11

6

1

Leasable floor area (m2)2,379.31

3,164.26

4,815.84

2,882.61

5,899.11

Leased floor area (m2)2,379.31

3,164.26

4,815.84

2,882.61

5,899.11

End of May 2014

100.0

100.0

100.0

100.0

100.0

End of Nov. 2014

100.0

100.0

100.0

100.0

100.0

End of May 2015

100.0

100.0

96.3

100.0

100.0

End of Nov. 2015

100.0

100.0

100.0

100.0

100.0

End of May 2016

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

63,626

103,433

156,566

98,947－

63,626

103,433

156,566

98,947

－

－

－

－

－

－

22,50547,613

79,99648,148－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Consignment expenses

4,053

6,447

18,853

5,751－

Utilities expenses

4,470

7,324

9,697

6,517

－

Taxes and dues

3,637

10,894

15,736

8,747－

Non-life insurance expenses

100

144

244

120

－

Repair expenses

63

1,038

1,455

2,280

－

Depreciation (C)9,356

21,501

34,006

24,731－Other lease business expenses

822

263

3

－

－

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

41,12055,81976,57050,799－

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

50,477

77,321

110,577

75,530144,399

Capital expenditures (F) (thousand yen)

Reference
information

389

1,038

2,785

－

1,232

NCF [(E) – (F)] (thousand yen)

50,08876,282

107,791

75,530143,166

Expense rate (%) [(B) ÷ (A)]

35.37

46.03

51.09

48.66

－

7,293

21,45931,22817,446

24,919100,234

128,200

187,580

181,610

125,988

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 51 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Nihonbashi
Hongokucho

E-SPACE
TOWER

Daiwa Shibuya
Dougenzaka(Note 5)

Property nameDaiwa Jimbocho3-chomeAcquisition dateMar. 2011

July 2011

May 2012

Dec. 2012 andApr. 2013

July 2013

Acquisition price (million yen)

3,550

24,000

1,721

9,650

－

shinyoncurumuInvestment ratio (%)

0.8

5.2

0.4

2.1

－

Carrying amount (million yen)

3,450

23,664

1,641

9,811

－

Estimated price at end of period(million yen)

4,500

32,5002,190

12,600－

Number of tenants (Note 1)

8

6

6

18

－

Leasable floor area (m2)2,889.34

13,960.87

2,143.08

6,751.31－

Leased floor area (m2)2,889.34

13,960.87

2,143.08

6,751.31－

End of May 2014

88.1

89.1

100.0

96.3

100.0

End of Nov. 2014

100.0

100.0

100.0

100.0

100.0

End of May 2015

100.0

96.4

100.0

100.0

100.0

End of Nov. 2015

100.0

100.0

100.0

100.0

91.9

End of May 2016

100.0

100.0

100.0

100.0

－

183

183

183

183

122

110,547

785,083

60,579326,200

93,374

110,547

785,083

60,579326,200

93,374

－

－

－

－

－
60,488

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

43,411

229,399

27,074

113,890

Consignment expenses

7,298

51,141

5,624

22,153

8,784

Utilities expenses

6,637

45,927

3,373

21,251

10,312

Taxes and dues

9,395

56,8934,420

33,622

20,128Non-life insurance expenses

127

672

77

334

143

Repair expenses

200

9,342

410

669

5,976

Depreciation (C)19,75164,921

13,16935,834

15,144

－

500

－

25

－

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

67,135555,684

33,505

212,30932,885

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

86,887620,606

46,674

248,144

48,030

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

802

25,802

480－－

NCF [(E) – (F)] (thousand yen)

86,084594,80346,194

248,144

48,030

Expense rate (%) [(B) ÷ (A)]

39.27

29.22

44.69

34.91

64.78

18,715

113,542

8,802

66,956－82,470574,150

22,401

65,855－

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 52 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
RegionProperty nameAcquisition date
Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

Daiwa Akasaka

Daiwa Shibuya
Miyamasuzaka

Azabu Green
TerraceDaiwa Ebisu

LAQUAS

4-chomeHigashi Shinjuku(Note 4)

Aug. 2013

Sept. 2013

Jul. 2014

Dec. 2014

Dec. 2014

9,200

7,000

14,000

4,135

8,450

Investment ratio (%)

2.0

1.5

3.1

0.9

1.8

Carrying amount (million yen)

9,385

7,233

14,239

4,275

8,610

Estimated price at end of period(million yen)

12,5008,580

15,7005,300

10,100

Number of tenants (Note 1)

20

8

10

1

4

Leasable floor area (m2)

8,739.17

6,327.95

13,234.39

2,885.64

7,498.33

Leased floor area (m2)

8,739.17

6,327.95

12,560.80

2,885.64

7,498.33

100.0

100.0

－

－

－
－
100.0

Occupancy rate (%)
Leasing
information

End of May 2014
End of Nov. 2014

85.8

100.0

100.0

－

End of May 2015

0.0

85.8

100.0

100.0

End of Nov. 2015

88.4

100.0

100.0

100.0

100.0

End of May 2016

100.0

100.0

94.9

100.0

100.0

183

183

183

183

183

311,393

233,581458,576－

225,363311,393

233,581413,576－

225,363－－

45,000－－

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

Income (loss)
information

125,530

90,538

174,763－

79,297

Consignment expenses

25,77923,82041,068－

11,402

Utilities expenses

34,721

15,811

43,614－

13,753

Taxes and dues

33,101

19,977

31,841－

20,342

433

303

616

－

319

Repair expenses

4,361

7,207

7,101

－

1,031

Depreciation (C)26,93323,35750,391－32,290

200

60

130

－

158

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

185,862

143,042

283,812－

146,066

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

212,796

166,400

334,204

39,407

178,357

Non-life insurance expenses

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

1,434

48,782

2,715

4,147

－

NCF [(E) – (F)] (thousand yen)

211,361

117,617331,489

35,260178,357

Expense rate (%) [(B) ÷ (A)]

40.31

38.76

38.11

－

35.19

66,11739,952

63,176

17,851

40,533

430,612416,816

325,054

115,410

125,440

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 53 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

RegionFive Central Wards of Tokyo

Property nameAcquisition date

Concept Aoyama

Shinsen Place

Daiwa
Glass City Shibuya(Note 4)

River Gate

Hatchobori
ekimaeMar. 2015

Mar. 2015

May 2015

Jun. 2015

Sep. 2015

Acquisition price (million yen)

9,800

4,800

16,00028,0002,871

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

2.1

1.0

3.5

6.1

0.6

10,045

4,915

16,09428,1902,974

Estimated price at end of period(million yen)

11,4006,150

17,50029,900

3,130

4

1

11

85

9

4,421.79

2,811.35

8,566.73

32,063.06

2,622.42

4,045.73

2,811.35

8,566.73

31,621.00

2,622.42

End of May 2014

－

－

－

－

－

End of Nov. 2014

－

－

－

－

－

End of May 2015

85.9

100.0

100.0

－

－

End of Nov. 2015

100.0

100.0

100.0

95.3

100.0

End of May 2016

91.4

100.0

100.0

98.6

100.0

183

183

183

183

183

241,533－

384,623

935,993

78,266

Rent revenue – real estate

215,914－370,957

932,951

78,266

Other lease business revenue

25,618－13,666

3,041－

50,769－83,213439,324

25,694

Consignment expenses

12,342－

20,892

89,787

7,544

Utilities expenses

8,226

－

25,747132,117

6,982

0

－

333

68

46

162

－

379

1,858

133

12,599－3,671

63,033987

17,436－32,188152,338

9,955

Number of tenants (Note 1)
2

Leasable floor area (m )2Leased floor area (m )Occupancy rate (%)
Leasing
information

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

Total property leasing expenses (B) (thousandyen)

Income (loss)
information

Taxes and dues
Non-life insurance expenses
Repair expenses
Depreciation (C)Other lease business expenses

－

－

－

120

46

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

190,764－

301,410496,669

52,571

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

208,201

131,248333,598

649,00762,527

6,402

6,068

2,620

124,002

350

NCF [(E) – (F)] (thousand yen)

201,798

125,179

330,978

525,005

62,177

Expense rate (%) [(B) ÷ (A)]

21.02

－

21.64

46.94

32.83

25,451

16,25053,901

201,569

17,811

97,530112,510202,340

1,970,900

114,190

Capital expenditures (F) (thousand yen)

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 54 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Greater Tokyo

Property name

Daiwa
Hatchobori
ekimae West

Nikko Building

Kirin Nihonbashi
Daiwa
Daiwa Shinagawa
Building
Higashi-Ikebu
North(Note 4)kuro

Acquisition date

Sep. 2015

Mar. 2016

May 2016

Oct. 2005

July 2007

Acquisition price (million yen)

1,647

13,710

8,180

2,958

7,710

Investment ratio (%)

0.4

3.0

1.8

0.6

1.7

Carrying amount (million yen)

1,709

13,983

8,326

2,727

7,267

Estimated price at end of period(million yen)

1,750

14,400

8,220

3,580

5,870

Number of tenants (Note 1)

8

7

1

7

14

Leasable floor area (m2)

1,723.15

6,967.61

5,630.17

4,461.47

6,548.17

Leased floor area (m2)

1,723.15

6,924.71

5,630.17

4,461.47

6,548.17

End of May 2014

－

－

－

92.2

100.0

End of Nov. 2014

－

－

－

100.0

100.0

End of May 2015

－

－

－

100.0

90.0

End of Nov. 2015

100.0

－

－

100.0

100.0

End of May 2016

100.0

99.3

100.0

100.0

100.0

183

64

6

183

183

44,90185,050－122,206

189,574

44,90185,050－122,206

188,044

－

－

－

－

1,530

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

13,462

17,456－58,301

91,382

Consignment expenses

4,643

5,478

－

10,756

16,176

Utilities expenses

3,668

3,190

－

12,192

15,107

Taxes and dues

15

8

－

8,594

18,442Non-life insurance expenses

68

110

－

228

351

Repair expenses

915

－

－

3,220

7,531

Depreciation (C)

4,140

8,667

－

23,30933,772

10

1

－

－

－

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

31,43967,593－63,90598,192

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

35,58076,2605,879

87,215

131,964

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

－

544

－

5,254

8,199

NCF [(E) – (F)] (thousand yen)

35,58075,715

5,879

81,960123,765

Expense rate (%) [(B) ÷ (A)]

29.98

20.53

－

47.71

48.20

7,995

－

－

17,12035,647

84,620284,170

216,720

228,260

331,160

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 55 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period

RegionGreater Tokyo

Property nameDaiwa Osaki
3-chomeAcquisition date

Price
information

Major Regional
CitiesDaiwa
Kamiooka

Integral Tower

Meguro Place
Tower

Daiwa
Minami-Senba(Note 5)

Sept. 2012

Mar. 2013

May 2014

May 2015

Aug. 2007

Acquisition price (million yen)

1,650

2,000

15,2205,600－

Investment ratio (%)

0.4

0.4

3.3

1.2

－

Carrying amount (million yen)

1,649

1,975

15,113

5,616－

Estimated price at end of period(million yen)

2,270

2,470

18,1006,290－

Number of tenants (Note 1)

4

8

9

14

－

Leasable floor area (m2)

1,786.06

2,630.30

17,778.14

3,519.50－

Leased floor area (m2)

1,409.70

2,364.57

17,697.94

3,519.50－

End of May 2014

88.4

85.4

96.7

－

75.7

End of Nov. 2014

100.0

85.4

99.5

－

95.7

End of May 2015

100.0

100.0

99.5

100.0

100.0

End of Nov. 2015

100.0

100.0

99.5

100.0

100.0

End of May 2016

78.9

89.8

99.5

100.0

－

183

183

183

183

134

60,99989,082576,531

138,929

74,06860,99989,082576,531

138,929

74,068

－

－

－

－

－
63,178

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

24,38337,535

387,755

44,863

Consignment expenses

3,697

5,645

51,992

12,308

9,299

Utilities expenses

2,977

6,873

74,437

8,635

10,206

Taxes and dues

3,903

6,357

44,206

187

16,406

Non-life insurance expenses

70

121

900

179

182

Repair expenses

2,392

654

121,846

85

90

Depreciation (C)11,342

17,864

93,991

22,562

26,994

－

18

380

905

－

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

36,61551,546

188,775

94,065

10,890NOI (E) [(D) + (C)] (thousand yen)

47,957

69,410282,767

116,628

37,884

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

922

711

24,258－－

NCF [(E) – (F)] (thousand yen)

47,03568,698258,508

116,628

37,884

Expense rate (%) [(B) ÷ (A)]

39.97

42.14

67.26

32.29

85.30

7,870

12,666

88,26026,776－37,912

24,782

834,324

110,053－

Annual amount of fixed property tax, etc. forfiscal 2016 (thousand yen)
Estimated long-term repair expenses (thousandyen) (Note 2)- 56 -

Daiwa Office Investment Corporation (8976) Financial Report for the 21st Fiscal Period
RegionProperty name

Major Regional Cities

Acquisition date

Price
information

Kitahama Grand
Building

Daiwa Meieki
Feb. 2013

Aug. 2014

Acquisition price (million yen)

5,300

9,481

Investment ratio (%)

1.2

2.1

Carrying amount (million yen)

5,315

9,468

Estimated price at end of period(million yen)

7,320

11,300

Number of tenants (Note 1)

24

6

Leasable floor area (m2)

7,461.90

13,517.62

Leased floor area (m2)

7,461.90

13,517.62

End of May 2014

98.4

－

End of Nov. 2014

100.0

100.0

End of May 2015

98.5

100.0

End of Nov. 2015

100.0

100.0

End of May 2016

100.0

100.0

183

183

249,751

337,322249,751

337,322

Occupancy rate (%)
Leasing
information

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

96,832

148,977

Consignment expenses

21,561

24,957

Utilities expenses

15,81033,183

Taxes and dues

20,15232,935

Total property leasing expenses (B) (thousand yen)

Income (loss)
information

Non-life insurance expenses

394

599

Repair expenses

3,893

4,020

Depreciation (C)35,02053,184－96

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

152,918

188,344

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

187,938

241,529

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information－

130

NCF [(E) – (F)] (thousand yen)

187,938

241,399

Expense rate (%) [(B) ÷ (A)]

38.77

44.16

40,58165,728170,803

264,054

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

(Note 1) Number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, the concerned tenant iscounted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimated to arise over the
12-year period from the 1st year to the 12th year as stated in the building investigation diagnosis report.
(Note 3) Estimated long-term repair expenses of “Daiwa Kayabacho Building” are the total amount of repair expenses and renewal
expenses estimated to arise over the 10-year period from the 1st year to the 10th year as stated in the building investigation
diagnosis report.
(Note 4) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc. for the property.
(Note 5) Daiwa Shibuya Dougenzaka and Daiwa Minami-Senba were divested on April 1, 2016 and April 13, 2016, respectively.

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