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.

REIT Financial Report for the 31st Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:July 19, 2021
Daiwa Office Investment Corporation
Stock Exchange Listing: TSE
8976
URL: http://www.daiwa-office.co.jp
Seiya Miyamoto, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Toshio Fukushima., President and Representative Director
TEL: +81-3-6215-9649
Takashi Chiba, Manager of Corporate Division

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 23, 2021
August 13, 2021

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 31st Fiscal Period
31st Fiscal Period: Fiscal period ended May 2021 (from December 1, 2020 to May 31, 2021)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
31stPeriod30th
PeriodOperating income

Ordinary income

Net income¥15,054 million

1.4%¥8,137 million

5.5%¥7,550 million

6.0%¥7,549 million

6.0%¥14,849 million

4.0%¥7,715 million

5.5%¥7,125 million

6.5%¥7,124 million

6.5%

Net income
per unit

Net income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue

31st¥15,4123.0%
1.6%
Period30th¥14,484
2.8%
1.5%
Period(Note) Net income per unit is calculated using the following average number of investment units during the period.
31st Fiscal Period: 489,860 units; 30th Fiscal Period: 491,877 units(2) Distributions
Distribution amount
per unit

Total
distribution amount(excluding
distribution amountin excess of earnings)(excluding
distribution amountin excess of earnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payout

50.2%
48.0%

Distribution
amount to
net assets

31st¥14,000¥6,833 million¥–¥– million
90.5%
2.7%
Period30th¥13,817¥6,796 million¥–¥– million
95.4%
2.7%
Period(Note) Distribution amount per unit for the 31st Fiscal Period is calculated by dividing the amount obtained by deducting
provision of reserve for reduction entry (¥716 million) from unappropriated retained earnings by the total number ofinvestment units issued and outstanding. The main difference between distribution amount per unit and net income perunit is due to the calculation. As acquisition and cancellation of own investment units were carried out during the period,
dividend payout for the 31st Fiscal Period is obtained by using the following calculation formula, rounded to one
decimal place.
Dividend payout = Total distribution amount (excluding distribution amount in excess of earnings) / Net income × 100
Distribution amount per unit for the 30th Fiscal Period is calculated by dividing the amount obtained by deducting
provision of reserve for reduction entry (¥328 million) from unappropriated retained earnings by the total number ofinvestment units issued and outstanding. The main difference between distribution amount per unit and net income perunit is due to the calculation.
(3) Financial Position
31st
Period30th
PeriodUnitholders’ equity tototal assets

Net assets
per unit

Total assets

Net assets¥484,310 million¥253,522 million

52.3%¥519,419¥488,570 million¥255,511 million

52.3%¥519,462

(4) Cash FlowsNet cashprovided by (used in)operating activities
31st
Period30th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥12,340 million(¥1,301 million)(¥10,678 million)¥32,211 million¥11,497 million(¥4,279 million)(¥6,717 million)¥31,850 million

2. Management Status Forecasts for the 32nd Fiscal Period and 33rd Fiscal Period
32nd Fiscal Period: Fiscal period ending November 2021 (from June 1, 2021 to November 30, 2021)
33rd Fiscal Period: Fiscal period ending May 2022 (from December 1, 2021 to May 31, 2022)[% figures show the period-over-period increase (decrease)]

Operating revenue
32nd
Period33rd
PeriodOperating income

Ordinary income

Net income¥13,851 million(8.0%)¥7,308 million(10.2%)¥6,737 million(10.8%)¥6,735 million(10.8%)¥13,697 million(1.1%)¥7,308 million

0.0%¥6,738 million

0.0%¥6,736 million

0.0%

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

Distribution amount in excess of earnings per unit

32nd
¥14,000¥–
Period33rd¥14,000¥–
Period(Reference) Estimated net income per unit for the 32nd Fiscal Period: ¥13,800; 33rd Fiscal Period: ¥13,800(Note) Distribution amount per unit for the 32nd Fiscal Period is calculated based on the assumption that the amount after
adding reversal of reserve for reduction entry (¥97 million) to unappropriated retained earnings will be distributed.
Reversal of reserve for reduction entry may change depending on the management status.
Distribution amount per unit for the 33rd Fiscal Period is calculated based on the assumption that the amount after
adding reversal of reserve for reduction entry (¥97 million) to unappropriated retained earnings will be distributed.
Reversal of reserve for reduction entry may change depending on the management status.

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):
31st Fiscal Period:
488,088 units
30th Fiscal Period:(ii) Total number of treasury units at end of period:
31st Fiscal Period:– units
30th Fiscal Period:

491,877 units– units(Note) Please refer to “Notes to Per Unit Information” on page 24 for the number of investment units used as the basis forcalculating the net income per unit.
* This financial report (kessan tanshin) is exempt from the audit by a certified public accountant or an auditing company.
* Special note
The forecast figures are forward-looking statements based on information currently available to Daiwa Office Investment
Corporation and involve uncertainties. Accordingly, the actual operating revenue, operating income, ordinary income, net
income, distribution amount per unit and distribution amount in excess of earnings per unit may vary due to changes in thestatus. In addition, the forecast is not a guarantee of the distribution amount. For details on the assumptions underlying theforecast figures above, please refer to “Assumptions for the Management Status Forecasts for the 32nd Fiscal Period and33rd Fiscal Period” on page 7.

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period○ Table of Contents
1. Management Status ...............................................................................................................................................2
1.1. Management Status.........................................................................................................................................2
1.1.1. Overview of the Fiscal Period Under Review .........................................................................................2
1.1.2. Outlook for the Next Fiscal Period ..........................................................................................................5
1.2. Investment Risks.............................................................................................................................................8
2. Financial Statements .............................................................................................................................................92.1. Balance Sheets ................................................................................................................................................92.2. Statements of Income ...................................................................................................................................112.3. Statements of Unitholders’ Equity ................................................................................................................122.4. Statements of Cash Distributions..................................................................................................................142.5. Statements of Cash Flows .............................................................................................................................15
2.6. Notes to the Going Concern .........................................................................................................................16
2.7. Notes to Significant Accounting Policies .....................................................................................................16
2.8. Notes to Financial Statements ......................................................................................................................172.9. Increase (Decrease) in Total Number of Investment Units Issued and Outstanding ....................................25
3. Reference Information.........................................................................................................................................26
3.1. Investment Status ..........................................................................................................................................26
3.2. Investment Real Estate Properties (As of May 31, 2021) .............................................................................27
3.2.1. Price and Investment Ratio of Investment Real Estate Properties .........................................................27
3.2.2. Summary of Building and Leasing of Investment Real Estate ..............................................................29
3.2.3. Capital Expenditures for Assets Under Management ............................................................................32
3.2.4. Summary of Estimated Price at End of Period (As of May 31, 2021) ...................................................33
3.2.5. Status of Income (Loss), Etc. of Individual Properties ..........................................................................35－ 1 －Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

1. Management Status
1.1. Management Status
1.1.1. Overview of the Fiscal Period Under Review
A. Brief History of the Investment Corporation
The Investment Corporation was established on July 11, 2005, in accordance with the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate AssetManagement Co., Ltd. (former name K.K. daVinci Select) (the “Asset Manager”) as the organizer. After its
establishment, the Investment Corporation implemented an additional issuance of investment units through a public
offering (99,600 units) on October 18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE) Real Estate
Investment Trust Section (stock code: 8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price), subsequent
activities, such as additional acquisition of properties and replacement of portfolio properties, resulted in the assets
under management amounting to 461,418 million yen as of the last day of May 2021.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets based ona clear portfolio development policy of specializing in investment in office buildings, with a particular focus on
investment in a total floor area of more than about 2,000 m2 situated in downtown Tokyo, as well as through dedicatedefforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment
The Japanese economy during the fiscal period under review saw the impact of the Japanese government’s repeateddeclaration of a state of emergency with the resurgence of COVID-19 lead to decline mainly in personal spending andthe real GDP growth rate (Second Preliminary Estimates) for January to March 2021 sitting at an annual rate of -3.9%,
registering negative growth.
In the office building leasing market in central Tokyo, the vacancy rate had continued to be on an improving trend
since June 2013, but office consolidations and relocations to smaller offices due to future economic uncertainties anddeterioration in business performance stemming from the spread of COVID-19 and other reasons have led to contract
cancellations and such, resulting in the vacancy rate rising to 5.90% at the end of May 2021. Office rent had continued
to rise, albeit slightly, but turned to a downward trend after peaking in July 2020.
For the office building transaction market, a strong appetite for property acquisitions continued among real estatecompanies, funds (including J-REITs) and overseas investors with the continuing proactive lending attitude byfinancial institutions, and there has been no material impact of COVID-19. Nevertheless, future developments warrant
close monitoring.
b. Management Performance
In view of increasing the ordinary EPS (EPS (net income per unit) after deducting gain on sale from properties) overthe medium to long term, the Investment Corporation continued to work on “external growth,” which aims to boost
revenue through acquisition of properties, and “internal growth,” which aims to maximize income generating from
owned properties.
Concerning external growth, the Investment Corporation’s first development project, “Nihonbashi-Bakurocho 1Chome Development Project,” for which the development site was acquired in November 2020, is steadily underway.
In addition, the Investment Corporation divested “Daiwa Kyobashi” (sale price: 4,200 million yen) in December 2020.
As a result, the Investment Corporation’s assets under management as of the end of the 31st Fiscal Period (May 31,2021) totaled 59 properties, the sum total of acquisition prices of which amounted to 461,418 million yen.
Concerning internal growth, the Investment Corporation conducted proactive leasing, such as capturing needs forfloor expansion within the same property through strengthening relationships with existing tenants and reinforcing
collaboration with leasing brokers and property managers. Consequently, the occupancy rate as of the end of the 31st
Fiscal Period (May 31, 2021) was 97.5%.
C. Overview of Capital Procurementa. Procurement of Capital for Repayment of Borrowings
In the 31st Fiscal Period, the Investment Corporation made the following borrowings to fund the repayment ofborrowings.
(i) The Investment Corporation took out loans of 2,000 million yen in total from Sumitomo Mitsui Trust Bank, Ltd.
and Momiji Bank, Ltd. on February 26, 2021, to fund the repayment of the same amount borrowed from
Sumitomo Mitsui Trust Bank, Ltd. and The Higashi-Nippon Bank, Ltd. that was due for repayment on the sameday.
(ii) The Investment Corporation took out loans of 13,800 million yen in total from Sumitomo Mitsui Banking
Corporation, Mizuho Bank, Ltd., Resona Bank, Limited and MUFG Bank, Ltd. on March 31, 2021, to fund thefollowing:・ Repayment of 12,300 million yen in total borrowed from Sumitomo Mitsui Banking Corporation, Mizuho
Bank, Ltd. and Resona Bank, Limited that was due for repayment on the same day
・ Early repayment of a short-term loan of 1,500 million yen borrowed from MUFG Bank, Ltd. due forrepayment on August 31, 2021

－ 2 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period(iii) The Investment Corporation took out loans of 3,400 million yen in total from Sumitomo Mitsui Banking
Corporation, Shinsei Bank, Ltd. and The 77 Bank, Ltd. on May 31, 2021 to fund the repayment of the sameamount borrowed from the same banks that was due for repayment on the same day.
The Investment Corporation concluded interest-rate swap agreements in the 31st Fiscal Period for 9,400 million
yen of loans with floating interest rates. Converting the interest payable to fixed rates, these are for the purpose ofhedging against future interest rate fluctuation risks.
b. Status of Interest-Bearing Liabilities at End of the Fiscal Period under Review
As a result of the above, the balance of interest-bearing liabilities outstanding as of the end of the 31st Fiscal Period(May 31, 2021) stood at 203,350 million yen in total (short-term loans payable: 2,400 million yen; long-term loans
payable: 191,950 million yen; investment corporation bonds: 9,000 million yen). The balance of the current portionof long-term loans payable stood at 21,500 million yen.
The average remaining period of interest-bearing liabilities as of the end of the 31st Fiscal Period stands at 4.2 years.
List of Borrowings in the 31st Fiscal Period
LenderMomiji Bank, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
The 77 Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Shinsei Bank, Ltd.

Loan amount(Millions of yen)
1,000
1,000
2,400
2,000
2,000
1,500
2,000
2,000
1,900
1,000
1,400
1,000

Drawdown
date
2021/2/26
2021/2/26
2021/3/31
2021/3/31
2021/3/31
2021/3/31
2021/3/31
2021/3/31
2021/3/31
2021/5/31
2021/5/31
2021/5/31

Balance of Borrowings from Each Financial Institution (As of May 31, 2021)
End of the 31st Fiscal Period
Lender(Millions of yen)
Sumitomo Mitsui Banking Corporation
39,400Sumitomo Mitsui Trust Bank, Ltd.
23,500Development Bank of Japan Inc.
21,750MUFG Bank, Ltd.
20,500Mizuho Bank, Ltd.
19,400Shinsei Bank, Ltd.
14,000Resona Bank, Limited
12,500Mizuho Trust and Banking Co., Ltd.
9,500
The Bank of Fukuoka, Ltd.
6,500
Kansai Mirai Bank, Ltd.
5,000
The Nishi-Nippon City Bank Ltd.
3,000
The 77 Bank, Ltd.
3,000
The Norinchukin Bank
3,000
The Gunma Bank, Ltd.
2,500
The Musashino Bank, Ltd.
2,000
Tokio Marine & Nichido Fire Insurance Co., Ltd.
2,000
The Yamaguchi Bank, Ltd.
2,000
Nippon Life Insurance Company
1,300
The Hyakugo Bank, Ltd.
1,000
The Yamanashi Chuo Bank, Ltd.
1,000
Momiji Bank, Ltd.
1,000
Taiyo Life Insurance Company
300
Fukoku Mutual Life Insurance Company
200
Total
194,350(Note) Share is rounded to two decimal places.

－ 3 －Repayment
date
2031/2/28
2029/2/28
2030/3/29
2030/3/29
2028/3/31
2028/3/31
2027/3/31
2026/3/31
2024/3/29
2031/5/30
2022/5/31
2022/5/31

Loan period(Years)
10.0
8.0
9.0
9.0
7.0
7.0
6.0
5.0
3.0
10.0
1.0
1.0

Share (%) (Note)
20.27
12.09
11.19
10.55
9.98
7.20
6.43
4.89
3.34
2.57
1.54
1.54
1.54
1.29
1.03
1.03
1.03
0.67
0.51
0.51
0.51
0.15
0.10
100.00Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Periodc. Rating Information (As of May 31, 2021)
Credit rating agency
Rating and Investment Information, Inc. (R&I)

RatingAA-

Outlook
StableJapan Credit Rating Agency, Ltd. (JCR)

AA

Stabled. Shelf Registration
The Investment Corporation filed a shelf registration statement pertaining to investment corporation bonds on August
7, 2019, as below. The total issuable amount as of the date of this document is 93.1 billion yen.
Investment corporation bonds (excluding short-term investment corporation bonds)
Planned issue amount 100,000 million yen
Planned issue period
Use of funds

From August 15, 2019 to August 14, 2021
Funds for acquisition of specified assets, repayment of borrowings, redemption of
investment corporation bonds (including short-term investment corporation bonds), refundof leasehold and security deposits, payment of repairs, and funds for working capital, etc.

D. Sustainability Initiatives
The Sustainability Promotion Committee was set up in 2014 and the Policy Regarding ESG was established in March
2019 based on the Investment Corporation’s recognition that emphasizing ESG in asset management would contributeto the enhancement of corporate value over the medium to long term.
The Sustainability Promotion Office was also set up at the Asset Manager in June 2021 in order to further strengthen
sustainability initiatives. In these and other ways, sustainability initiatives are underway in an organized manner.
As initiatives for the environment, efforts are being made to reduce the environmental load of the portfolio throughenergy saving and reduction of greenhouse gas emissions by installing/adopting highly energy-efficient LED lighting
and other measures for reducing environmental load, and through water saving and other effective utilization of limited
resources. In addition, another 19 properties obtained Certification for CASBEE for Real Estate in the 31st Fiscal Period,
bringing the total number of properties owned by the Investment Corporation that have obtained green building
certification to 31 properties and the ratio of such properties to the entire portfolio (based on total floor area of theportfolio properties) to 60.3% as of the date of submission of this document.
As initiatives for society, efforts are being made to heighten tenant satisfaction levels and contribute to the sustained
development of local communities by coordinating and working together with the outside parties involved in theportfolio properties by forming favorable relationships with them. In the 31st Fiscal Period, initiatives were taken forthe safety and security of tenants by installing sanitizers and air purifiers in the common areas of portfolio properties
and through other means as COVID-19 control measures.
As initiatives for corporate governance, the Asset Manager ensures thorough prevention of conflicts of interest, risk
management and legal compliance, and adopts an asset management fee system that focuses on linking with unitholderinterests and is linked to management results.
The Investment Corporation has continued to participate in GRESB Real Estate Assessment since 2011, earning therating of Green Star, which is awarded to participants excelling in both the “Management Component” (assessment of
which includes the ESG promotion policy and organizational structure) and the “Performance Component” (assessmentof which includes the portfolio properties’ environmental performance and initiatives with tenants), for nine consecutive
years.
E. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance for the 31st
Fiscal Period of 15,054 million yen in operating revenue, 8,137 million yen in operating income, 7,550 million yen in
ordinary income and 7,549 million yen in net income.
Concerning distributions, it is planned that the amount equivalent to distributions from earnings would be includedin the amount of tax-deductible expenses based on application of special provisions for taxation of corporation tax(Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957; including amendments
thereto) (the “Special Taxation Measures Act”)). Accordingly, retaining 716,665,400 yen from application of “Special
Provisions for Taxation in Cases of Repurchase of Specified Assets” (Article 65-7 of the Special Taxation MeasuresAct) as reserve for reduction entry, the Investment Corporation decided to distribute the entire amount remaining after
deducting provision of reserve for reduction entry from unappropriated retained earnings (excluding fractions of the
distribution amount per unit that are less than 1 yen), and declared a distribution amount per unit of 14,000 yen.

－ 4 －Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
1.1.2. Outlook for the Next Fiscal Period
A. Investment Environment
Although it continues to hover at low levels due to the impact of COVID-19 for the time being, the Japanese economy
going forward is expected to head toward recovery with vaccinations and other measures to contain the spread of
COVID-19 leading to normalization of economic activities. Nevertheless, since the Japanese economy may slow down
due to prolongation of the COVID-19 pandemic (spread of highly contagious variants, delay in vaccination rollout,etc.), interest rate trends and other factors. Accordingly, careful attention is required.
In the Tokyo office building leasing market, although recovery is expected with normalization of economic activities
going forward, developments in office consolidations and relocations to smaller offices triggered by COVID-19 leading
to the vacancy rate rising and rent dropping moderately mainly in central Tokyo continue to warrant close monitoring.
In the office building transaction market, backed by the favorable financing environment, among other factors, theproperty acquisition appetite among overseas investors, real estate companies and funds (including J-REITs) is thought
to remain strong. However, the prolongation of the COVID-19 pandemic, interest rate trends and other factors may
impact future developments in the transaction market.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
As to macro trends for the office market, the impact of moves by large companies occupying prime office buildings
to consolidate to a head office by canceling contracts for surrounding medium-scale office buildings and other increasein contract cancellations are thought to continue partly due to prolongation of the impact of COVID-19. At present,
although moves for large office space are weak, the Investment Corporation is managing to proceed with leasing by
setting flexible terms and conditions and secure slight increase in rent upon tenant replacement. Going forward, needsfor offices are likely to vary for companies in line with the diversification of work styles and place. Therefore, theInvestment Corporation considers that maintaining/improving competitiveness of buildings to qualify as prime officesthat can increase the productivity of employees and accommodate needs of the times and environment will be thefuture issue, and is determined to continue carrying out operational management under the following policy.
(i) Maintain and raise occupancy rates
Concerning existing tenants, strive to reduce cancellation risks by improving the quality of buildings, equipment
and management system. In addition, concerning new tenants, strive to maintain and raise occupancy rates
through the provision of highly satisfactory services from gaining deeper understanding of tenant needs throughproactive involvement in the market.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium to long term through further strengthening good relationships withexisting tenants, as well as proactively tapping the needs of new tenants by discerning the market environment.
(iii) Control operational management costs
Strive to control operational management costs based on maintaining office environments with high tenantsatisfaction levels by implementing efficient operational management and reviewing systematic construction
work through optimal leveraging of economies of scale achieved from proactively realizing external growth.
b. Strategy for New Property Investments
The Investment Corporation will invest in office buildings that have a total floor area of about 2,000 m2 or more basedon various external growth strategies, while maintaining a balance with the asset acquisition environment andfinancing situation. In principle, considerations will focus on Tokyo as the investment target area, but the Investment
Corporation will also consider investing in competitive properties in cities other than Tokyo from a viewpoint ofterritorially-distributed investments.
As pipeline support, in addition to expanding its own information-sourcing channels, the Investment Corporation
will continue to search for properties that meet its investment criteria by proactively gathering real estate transaction
market information through greater collaboration with the Asset Manager and Sponsor Group and utilizing the Group’s
extensive network of clients, partners, etc.
c. Financial Strategy
The Investment Corporation will conduct disciplined financial management of the following basic content.
(i) Control leverage by keeping the ratio of interest-bearing liabilities to total assets (LTV) within the range of 40%
to 50% at maximum, taking into consideration also the LTV, etc. based on appraisal value, as a principle.
(ii) Diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing liabilities
that shall become due during any single fiscal period as a principle.
(iii) Aim to have long-term loans account for at least 70% of balance of loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.
(v) Pursuant to its fund management rules, maintain stability in its financial standing by managing necessary funds,
such as the amount equivalent to distributions paid, separately from working capital.

－ 5 －Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
C. Significant Subsequent Events
Not applicable.
(Reference Information)
Amendments to the Investment Policy
The Investment Corporation’s investment policy was amended on July 19, 2021, following the resolution passed at themeeting of the board of directors of the Asset Manager held on the same day to partially amend the asset management
guidelines that provide the basic policy for the management of the assets of the Investment Corporation. Amid anincreasingly harsh property acquisition environment, the Investment Corporation and the Asset Manager decided toseek to acquire quality properties through “investment in development properties based on appropriate risk management”
as part of proactive external growth strategies. To that end, the Asset Manager’s asset management guidelines are being
amended to set specific investment criteria for development properties, namely the investment criteria for the case ofinvestment in the form of the Asset Manager itself becoming the party ordering contract work and the investment criteria
for the case of reconstruction and such of portfolio assets, and also to make other required amendments. For the amended
investment policy, please refer to the press release “Notice Concerning Partial Amendments to Asset Management
Guidelines of the Asset Manager” dated July 19, 2021, and the extraordinary report submitted on the same day.
D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 32nd Fiscal Period (fiscal period ending
November 2021 (from June 1, 2021 to November 30, 2021)). For the assumptions underlying the management status
forecasts, please refer to the “Assumptions for the Management Status Forecasts for the 32nd Fiscal Period and 33rd
Fiscal Period” on page 7.
32nd Fiscal Period (fiscal period ending November 2021 (from June 1, 2021 to November 30, 2021))
Operating revenue
13,851 million yen
Operating income
7,308 million yen
Ordinary income
6,737 million yen
Net income
6,735 million yen
Distribution amount per unit
14,000 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 32nd Fiscal Period and33rd Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status forthe 33rd Fiscal Period (fiscal period ending May 2022 (from December 1, 2021 to May 31, 2022)).
33rd Fiscal Period (fiscal period ending May 2022 (from December 1, 2021 to May 31, 2022))
Operating revenue
13,697 million yen
Operating income
7,308 million yen
Ordinary income
6,738 million yen
Net income
6,736 million yen
Distribution amount per unit
14,000 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.

－ 6 －Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
Assumptions for the Management Status Forecasts for the 32nd Fiscal Period and 33rd Fiscal Period
Item
Assumptions

Assets undermanagement

 32nd Fiscal Period: Assets under management are assumed to be the 59 properties owned as of
May 31, 2021.
 33rd Fiscal Period: Assets under management are assumed to be the properties mentioned above.
 The actual number of properties may vary due to changes in the assets under management otherthan above.

Operatingrevenue Rent revenue from existing properties is calculated based on historical data and taking into
account variable factors.
 No gain or loss on sale of real estate is assumed to arise.

Operatingexpenses Expenses related to rent business, which constitute a major component of operating expenses, arecalculated based on historical data and taking into account variable factors.
 Repair expenses for buildings are recorded as expenses in the amount expected to be necessary
in the respective fiscal period based on the medium to long term repair plan established by the
Asset Manager.
 Operating income from property leasing (excluding gain on sale from real estate properties) after
deducting expenses related to rent business (including depreciation) is expected to be 8,688
million yen in the 32nd Fiscal Period and 8,681 million yen in the 33rd Fiscal Period.
 Consignment expenses are expected to be 1,038 million yen in the 32nd Fiscal Period and 994
million yen in the 33rd Fiscal Period.
 Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 1,144 million yen
in the 32nd Fiscal Period and 1,143 million yen in the 33rd 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 ofproperties. As such, fixed property tax, city planning tax, etc. for properties acquired will berecorded as expenses starting from the fiscal year following the acquisition year.
 Depreciation is expected to be 1,806 million yen in the 32nd Fiscal Period and 1,806 million yen
in the 33rd Fiscal Period.

Non-operating
expenses Non-operating expenses in the 32nd Fiscal Period are expected to be 570 million yen, of which
the interest expenses, interest expenses on investment corporation bonds, and borrowing related
expenses are expected to be 563 million yen.
 Non-operating expenses in the 33rd Fiscal Period are expected to be 570 million yen, of which
the interest expenses, interest expenses on investment corporation bonds, and borrowing related
expenses are expected to be 564 million yen.

 The total amount of interest-bearing liabilities is assumed to be 203,350 million yen at the end ofInterest-bearing
liabilities

Total number ofinvestment units
issued andoutstanding

the 32nd Fiscal Period and 203,350 million yen at the end of the 33rd Fiscal Period.
 In the 32nd Fiscal Period, it is assumed that the entire amount of borrowings due for repayment
on August 31, 2021 (1,000 million yen), and November 30, 2021 (6,500 million yen) is
refinanced.
 In the 33rd Fiscal Period, it is assumed that the entire amount of borrowings due for repayment
on February 28, 2022 (2,000 million yen), March 31, 2022 (2,000 million yen), and May 31, 2022
(12,400 million yen) is refinanced.
 The total number of investment units issued and outstanding is assumed to be the 488,088 units
as of May 31, 2021.

 It is assumed that there are no changes to the number of investment units other than stated above
until the end of the 33rd Fiscal Period through the issuance of new investment units, etc.

－ 7 －Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
Item

Assumptions

Distribution amount
per unit The distribution amount per unit is calculated based on the cash distribution policy as set out inthe articles of incorporation of the Investment Corporation.
 The distribution amount per unit for the 32nd Fiscal Period is based on the assumption that part
(97 million yen) of the reserve for reduction entry retained as internal reserves will be reversedand distributed. Reversal of reserve for reduction entry may change depending on the
management status.
 The distribution amount per unit for the 33rd Fiscal Period is based on the assumption that part
(97 million yen) of the reserve for reduction entry retained as internal reserves will be reversedand distributed. Reversal of reserve for reduction entry may change depending on the
management status.
 The distribution amount per unit may vary depending on a variety of factors, such as changes in
the assets under management, changes in the rent revenue due to tenant changes and other causes,
and incurrence of unforeseen repairs.

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

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

1.2. Investment Risks
Disclosure is omitted because there are no significant changes from the “Part I: Fund Information; Section 1: Fund Status;
3. Investment Risks” set out in the most recent periodic securities report (yuka shoken hokokusho) (submitted on February
17, 2021).

－ 8 －Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

2. Financial Statements
2.1. Balance Sheets(Unit: Thousands of yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets

30th Fiscal Period[As of Nov. 30, 2020]

31st Fiscal Period[As of May 31, 2021]

28,137,822
3,712,586
367,681334,706
70,12032,622,918

28,515,172
3,696,461
195,627
357,076
83,50932,847,848

3,287,710(2,535,980)
751,730
14,344(7,915)
6,428
20,207(14,149)
6,057
12,302,226
4,555
108,924,859(27,454,212)
81,470,647
772,607(210,939)
561,668
893,239(509,450)
383,788
315,131(191,804)
123,326
356,251,046
33,446
451,894,923

3,298,171(2,608,711)
689,460
14,344(8,356)
5,987
20,847(15,075)
5,771
12,302,226
3,786
108,495,377(28,653,187)
79,842,189
772,739(221,472)
551,266
884,250(512,570)
371,680
333,390(199,989)
133,400
353,434,357
50,081
447,390,211*1, *2*2*2

107
2,398,275
306,884
9,627
2,714,895－ 9 －*1, *2*2*2

52
2,398,275
306,8846,251
2,711,464

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period(Unit: Thousands of yen)

Investments and other assets
Leasehold and guarantee deposits in trust
Long-term prepaid expenses
Deferred tax assets
Derivatives
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Deferred tax liabilities
Derivatives liabilities
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets－ 10 －

30th Fiscal Period[As of Nov. 30, 2020]

31st Fiscal Period[As of May 31, 2021]

113,684
1,051,039
16,150－97,517
1,278,392
455,888,210

113,684
1,098,268－
3,956
90,507
1,306,416
451,408,092

59,39559,395488,570,524

54,391
54,391
484,310,332

1,673,045
3,600,000
24,200,000
672,515723
312,827
2,453,412
608,779
33,521,303

924,290
2,400,000
21,500,000
634,448888
335,635
2,366,227
573,944
28,735,434

9,000,000
167,650,000
20,495,726
1,954,549－
257,802179,599
199,537,677
233,058,980

9,000,000
170,450,000
20,272,859
1,942,181
2,240
210,647
174,578
202,052,507
230,787,942*3*4

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

251,551,759(6,458,395)
245,093,364

710,209710,209
7,124,746
7,834,956
255,711,192

1,038,691
1,038,691
7,549,897
8,588,589
253,681,953(199,648)(199,648)
255,511,543
488,570,524(159,563)(159,563)
253,522,389
484,310,332*4

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
2.2. Statements of Income(Unit: Thousands of yen)
30th Fiscal Period[From: June 1, 2020
To: Nov. 30, 2020]
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
Insurance income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)－ 11 －

31st Fiscal Period[From: Dec. 1, 2020
To: May 31, 2021]

*1
*1
*2

14,482,210
31,325336,387
14,849,922

*1
*1
*2

13,887,151
140,695
1,026,965
15,054,812*1

5,696,598
1,199,825
24,32479,286
19,536
7,200
107,151
7,133,923
7,715,998*1

5,454,733
1,188,807
24,30373,343
18,7867,200
150,049
6,917,224
8,137,588

17
623
14,706220
15,567

15
624
2,622
2,042
5,304

450,182
20,796130,096
5,319
606,394
7,125,172
7,125,172
725
13
738
7,124,433
313
7,124,746

419,271
26,276135,066
11,499592,1137,550,779
7,550,779
889
(7)
882
7,549,897－
7,549,897

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
2.3. Statements of Unitholders’ Equity
30th Fiscal Period [From: June 1, 2020 To: November 30, 2020](Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

SurplusReserve for
reduction entry

Total voluntary
retained earnings

Unappropriatedretained earnings(undisposed
loss)

710,209710,2096,687,380

7,397,590

Dividends from surplus(6,687,067)(6,687,067)

Net income

7,124,433

7,124,433

Balance at beginning of current
fiscal period

Unitholders’capitalDeduction fromunitholders’ capital

Unitholders’capital, net

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

247,876,236

Voluntary retained earnings

Total surplus

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

－

－

－

－

－

437,365

437,365

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

247,876,236

710,209710,209

7,124,746

7,834,956

Unitholders’ equity Valuation and translation adjustments

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

255,273,826(146,523)

Total valuationand translation
adjustments

Total net assets(146,523)

255,127,303

Changes of items during theperiodDividends from surplus(6,687,067)(6,687,067)

Net income

7,124,433

7,124,433

Net changes of items other(53,125)(53,125)(53,125)

437,365(53,125)(53,125)

384,240

255,711,192(199,648)(199,648)

255,511,543

than shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period－ 12 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
31st Fiscal Period [From: December 1, 2020 To: May 31, 2021](Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

SurplusReserve for
reduction entry

Total voluntary
retained earnings

Unappropriatedretained earnings(undisposed
loss)

710,209710,209

7,124,746

7,834,956

328,482

328,482(328,482)－

Dividends from surplus(6,796,264)(6,796,264)

Net income

7,549,897

7,549,897

Balance at beginning of current
fiscal period

Unitholders’capitalDeduction fromunitholders’ capital

Unitholders’capital, net

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

247,876,236

Voluntary retained earnings

Total surplus

Changes of items during theperiodProvision of reserve for
reduction entry

Acquisition of own
investment units
Cancellation of own(2,782,872)(2,782,872)－(2,782,872)(2,782,872)

328,482

328,482

425,150

753,632

251,551,759(6,458,395)

245,093,364

1,038,691

1,038,691

7,549,897

8,588,589

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

Own
investment units
Balance at beginning of current
fiscal period－

Valuation and translation adjustments

Total unitholders’ Deferred gains orequitylosses on hedges

255,711,192(199,648)

Total valuationand translation
adjustments

Total net assets(199,648)

255,511,543

Changes of items during theperiodProvision of reserve for－－

Dividends from surplus(6,796,264)(6,796,264)

Net income

7,549,897

7,549,897(2,782,872)(2,782,872)(2,782,872)

2,782,872－－

reduction entry

Acquisition of own
investment units
Cancellation of own
investment units
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period40,08540,08540,085－(2,029,239)

40,08540,085(1,989,153)－

253,681,953(159,563)(159,563)

253,522,389－ 13 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
2.4. Statements of Cash Distributions

Item

30th Fiscal Period[From: June 1, 2020
To: Nov. 30, 2020]

31st Fiscal Period[From: Dec. 1, 2020
To: May 31, 2021]

Amount (Yen)Amount (Yen)I.

Unappropriated retained earnings

7,124,746,976

7,549,897,400

II.

Distribution amount

6,796,264,509

6,833,232,000[13,817][14,000]

328,482,467

716,665,400[Distribution amount per unit]
III. Voluntary retained earnings
Provision of reserve for reduction entry
IV. Retained earnings carried forward
Method for calculating distribution amount－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 of theInvestment Corporation’s articles ofincorporation,
theInvestment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(491,877 units) in an amount that is
not in excess of the amount remaining
after deducting provision of reserve
for reduction entry defined in Article65-7 of the Act on Special Measures
Concerning
Taxationfromunappropriated retained earnings.
Accordingly,
theInvestment
Corporation declared a distribution
amount of 6,796,264,509 yen.
Furthermore,theInvestment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

－ 14 －－
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 of theInvestment Corporation’s articles ofincorporation,
theInvestment
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(488,088 units) in an amount that is
not in excess of the amount remaining
after deducting provision of reserve
for reduction entry defined in Article65-7 of the Act on Special Measures
Concerning
Taxationfromunappropriated retained earnings.
Accordingly,
theInvestment
Corporation declared a distribution
amount of 6,833,232,000 yen.
Furthermore,theInvestment
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 31st Fiscal Period
2.5. Statements of Cash Flows(Unit: Thousands of yen)

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Interest income
Interest expenses(Increase) Decrease in operating accounts receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Decrease from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
Repayments of tenant security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds
Purchase of own investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period－ 15 －

30th Fiscal Period[From: June 1, 2020
To: Nov. 30, 2020]

31st Fiscal Period[From: Dec. 1, 2020
To: May 31, 2021]

7,125,172
1,830,601
3,818
(17)
470,979(102,235)
16,693
388,221
25,344(80,541)
112,238(4,175)2,103,922
80,187
11,970,208
17(471,840)(998)
11,497,387

7,550,779
1,819,933
5,003
(15)
445,547
172,053(22,370)(267,338)(6,745)22,808(87,185)(47,228)
3,130,260
71,477
12,786,980
15(445,419)(724)
12,340,850(1,719)(4,336,207)
679,772
100,932(658,731)(63,623)(4,279,576)(18,985)(1,047,108)924,256
8,362(1,147,123)(20,729)(1,301,328)

2,500,000(3,900,000)
14,100,000(16,600,000)
3,868,783－(6,685,886)(6,717,103)
500,707
31,349,701
31,850,409

2,400,000(3,600,000)
16,800,000(16,700,000)－(2,782,872)(6,795,425)(10,678,297)
361,225
31,850,409
32,211,634*1*1Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
2.6. Notes to the Going Concern
Not applicable.
2.7. Notes to Significant Accounting Policies
1. Accumulated depreciation(1) Property, plant and equipment (including trust assets)method for noncurrent assets
The straight-line method is adopted.
The useful life of primary property, plant and equipment is as follows:
Buildings
2~64 years
Structures
10~56 years
Machinery and equipment
10~23 years
Tools, furniture and fixtures
4~15 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
2. Accounting policies for
Investment corporation bonds issuance costs
deferred assets
Amortized using the straight-line method over the period up to redemption.
3. Accounting standards for
Accounting for fixed property tax, etc.
recording revenues and expenses
Concerning fixed property tax, city planning tax, depreciated asset tax, etc. forowned real estate or trust beneficiary interest in real estate, of the tax amount thathas been broken down into installments, the method of accounting for the amountcorresponding to the concerned fiscal period as expenses related to rent businessis adopted.
Concerning the amount equivalent to fixed property tax, etc. for the initial fiscal
year that shall be borne by the Investment Corporation in correlation withacquisitions of real estate or trust beneficiary interest that have real estate as assets
in trust, the amount is not expensed but is rather included in the cost of acquisitionof the concerned real estate property. The amount equivalent to fixed property tax,
etc. that was included in the cost of acquisition of real estate properties is 1,113
thousand yen in the 30th Fiscal Period and nil in the 31st Fiscal Period.
4. Hedge accounting approaches(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet the requirements
for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate swap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge risks
stipulated in the Investment Corporation’s articles of incorporation in accordancewith the Investment Corporation’s risk management policy.
(4) Method for assessing the effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between the change inaggregated amount of cash flow of the hedging instruments and the change inaggregated 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.
5. Scope of funds in the
The funds (cash and cash equivalents) in the statements of cash flows consist of cash onstatements of cash flows
hand and cash in trust; deposits that can be withdrawn at any time and deposits in trust;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 risk ofprice fluctuation.

－ 16 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
6.

Other significant mattersforming basis for preparation offinancial statements

(1)

(2)

Accounting method for trust beneficiary interest in real estate, etc.
Concerning owned trust beneficiary 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 are recordedin the relevant account item of the balance sheets and statements of income.
The following material items of the assets in trust recorded in the relevant accountitem are separately listed on the balance sheets.
(i) Cash and deposits in trust(ii) Buildings in trust, structures in trust, machinery and equipment in trust, tools,
furniture and fixtures in trust, land in trust and construction in progress intrust(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 thefiscal period under review.
The consumption taxes relating to noncurrent assets, etc. that are not taxdeductible are amortized in equal installments over 5 years.

2.8. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting and asset retirement
obligations, disclosure is omitted because there is no substantial need for such disclosure in the financial report (kessan
tanshin).
[Notes to Balance Sheets]*1. Advanced depreciation amount for property, plant and equipment acquired by government subsidies, etc.
30th Fiscal Period[As of Nov. 30, 2020]
Buildings in trust

31st Fiscal Period[As of May 31, 2021]

32,898 thousand yen

32,898 thousand yen*2. Advanced depreciation amount for property, plant and equipment acquired through exchange
30th Fiscal Period[As of Nov. 30, 2020]
Buildings in trust
Structures in trust
Land in trust
Total

31st Fiscal Period[As of May 31, 2021]

182,563 thousand yen
283 thousand yen
887,074 thousand yen

182,563 thousand yen
283 thousand yen
887,074 thousand yen

1,069,921 thousand yen

1,069,921 thousand yen*3. Status of cancellation of own investment units
30th Fiscal Period[As of Nov. 30, 2020]

31st Fiscal Period[As of May 31, 2021]

Total number of units cancelled
5,992 units
9,781 units
Total amount cancelled
3,675,523 thousand yen
6,458,395 thousand yen(Note) The number of own units cancelled during the 31st Fiscal Period is 3,789 units, and the total amount cancelled is2,782,872 thousand yen.
*4. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
30th Fiscal Period[As of Nov. 30, 2020]
Buildings in trust

31st Fiscal Period[As of May 31, 2021]

50,000 thousand yen－ 17 －

50,000 thousand yen

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing(Unit: Thousands of yen)
30th Fiscal Period[From: June 1, 2020
To: Nov. 30, 2020]
A. Property leasing revenue
Rent revenue – real estate
Other lease business revenue

14,482,210
31,325

Total property leasing revenue

31st Fiscal Period[From: Dec. 1, 2020
To: May 31, 2021]
13,887,151
140,695

14,513,535

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

1,019,499
915,742
1,169,520
19,990670,253
1,827,171
74,421

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

14,027,847
1,036,453
774,452
1,145,554
19,940583,977
1,816,503
77,8505,696,598

5,454,733

8,816,936

8,573,113*2. Breakdown of gain on sales of real estate properties(Unit: Thousands of yen)
30th Fiscal Period [From: June 1, 2020 To: November 30, 2020]
Daiwa Shimbashi 510
Proceeds from sales of real estate properties
Cost of sales of real estate properties

2,530,000
2,103,922
89,690

Other expenses on sales
Gain on sales of real estate properties

336,387

31st Fiscal Period [From: December 1, 2020 To: May 31, 2021]
Daiwa Kyobashi
Proceeds from sales of real estate properties
Cost of sales of real estate properties

4,200,000
3,130,260
42,774

Other expenses on sales
Gain on sales of real estate properties

1,026,965－ 18 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period[Notes to Statements of Unitholders’ Equity]
30th Fiscal Period[From: June 1, 2020
To: Nov. 30, 2020]

31st Fiscal Period[From: Dec. 1, 2020
To: May 31, 2021]

Total number of investment units authorized andtotal number of investment units issued and outstanding
Total number of investment units authorized
Total number of investment units issued and outstanding

2,000,000 units

2,000,000 units

491,877 units

488,088 units[Notes to Statements of Cash Flows]*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the statements of cash flows(Unit: Thousands of yen)
30th Fiscal Period[From: June 1, 2020
To: Nov. 30, 2020]
Cash and deposits
Cash and deposits in trust
Cash and cash equivalents

28,137,822
3,712,586
31,850,409

31st Fiscal Period[From: Dec. 1, 2020
To: May 31, 2021]
28,515,172
3,696,461
32,211,634[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation bonds andissuance of new investment units, etc. for the acquisition and repair of investment properties, the payments of dividends
and the reimbursement 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 futurefluctuation risk of interest rates.
The Investment Corporation manages surplus funds through deposits and safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate fluctuation risks attributable
to liabilities of the Investment Corporation.
(b) Contents and risk of financial instruments and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds for theacquisition of investment properties (such as trust beneficiary interest in real estate) and the reimbursement of current
debts and bonds. While these debts and bonds are exposed to liquidity risk, the Investment Corporation manages therisk by maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt tototal debt at high levels, and diversifying lenders with particular focus on domestic financial institutions. Bank
borrowings etc. with floating interest rates are exposed to interest rate fluctuation risk and the risk is controlled by using
derivative instruments (interest rate swap transaction) for some long-term borrowings to avoid interest rate fluctuation
risk and to fix interest expense.
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount of cash flow of
the hedging instruments and the change in aggregated amount of cash flow of the hedged items. Interest rate swaps thatmeet the requirements for special accounting are omitted from assessment of the effectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions establishedby the basic policy of risk management.
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust are exposed to liquidity risk
upon tenants moving out and the Investment Corporation reduces the risk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) and aremanaged by limiting the terms to short durations and establishing credit rating level of counterparties (except forcheckable deposit), etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instruments with noavailable market price is determined by using price reasonably estimated. As various factors are incorporated into thesecalculations, the resulting value may differ if different assumptions are provided. Furthermore, the contractual amountsof derivative transactions do not represent the market risk involved in these derivative transactions.

－ 19 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values and their differences are as follows. Please note that the following table does notinclude those for which discerning of fair value is recognized to be extremely difficult (please refer to (Note 2)).
30th Fiscal Period [As of November 30, 2020]
Carrying amount

Fair value(Unit: Thousands of yen)
Difference(1) Cash and deposits

28,137,822

28,137,822－(2) Cash and deposits in trust

3,712,586

3,712,586－

31,850,409

31,850,409－

Total assets(3) Short-term loans payable

3,600,000

3,600,060

60(4) Current portion of long-term loans payable

24,200,000

24,203,301

3,301(5) Investment corporation bonds

9,000,000

8,974,990(25,010)

167,650,000

167,717,967

67,967

204,450,000

204,496,319

46,319(291,287)(291,287)－(6) Long-term loans payable
Total liabilities
Derivative transactions (*)
31st Fiscal Period [As of May 31, 2021]

Carrying amount

Fair value(Unit: Thousands of yen)
Difference(1) Cash and deposits

28,515,172

28,515,172－(2) Cash and deposits in trust

3,696,461

3,696,461－

32,211,634

32,211,634－(3) Short-term loans payable

2,400,000

2,400,000－(4) Current portion of long-term loans payable

21,500,000

21,523,879

23,879(5) Investment corporation bonds

9,000,000

8,979,070(20,930)

170,450,000

170,268,022(181,977)

203,350,000

203,170,972(179,027)

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

Derivative transactions (*)(232,803)(232,803)－(*) The value of receivables and payables arising from derivatives are indicated at net basis. The amount in parentheses
represents the net liability position.
(Note 1) Methods to estimate fair value of financial instruments and matters concerning derivative transactions
Assets(1) Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and thus isstated at that book value.
Liabilities(3) Short-term loans payable; (4) Current portion of long-term loans payable; (6) Long-term loans payable
As those with floating interest rates reflect market interest rates within a short period of time and the Investment
Corporation’s credit capability does not differ markedly from the execution, the fair value is approximately the same as
the book value and thus is stated at that book value. Those with fixed interest rates, on the other hand, are based on themethod of calculating by discounting the sum total amount of principal and interest (*) by the reasonably estimatedinterest rate in the case that the same type of borrowings is undertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest is handled
together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions] below.)(5) Investment corporation bonds
The fair value of the investment corporation bonds issued by the Investment Corporation is based on the market price.
Derivative transactions
Please refer to [Notes to Derivative Transactions] below.

－ 20 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period(Note 2) Carrying amount of financial products for which it is extremely difficult to estimate fair value(Unit: Thousands of yen)
30th Fiscal Period[As of Nov. 30, 2020]
Tenant leasehold and security deposits*
Tenant leasehold and security deposits in trust*

31st Fiscal Period[As of May 31, 2021]

20,495,726
1,954,549

20,272,859
1,942,181

Total
22,450,275
22,215,041(*) Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees ofrental properties are not subject to disclosure of fair value because discerning of the fair value is recognized to be extremely
difficult as future cash flows cannot be reasonably estimated due to there being no market price and difficulty in calculationof the actual deposit period, which is the period from tenants’ move-ins to move-outs.
(Note 3) Redemption schedule for monetary claims due after the settlement of accounts
30th Fiscal Period [As of November 30, 2020](Unit: Thousands of yen)

Cash and deposits
Cash and deposits in trust

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

28,137,822

－

－

－

－

Over 5 years－

3,712,586

－

－

－

－

－

31,850,409

－

－

－

－

－

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Cash and deposits

28,515,172

－

－

－

－

－

Cash and deposits in trust

3,696,461

－

－

－

－

－

32,211,634

－

－

－

－

－

Total

31st Fiscal Period [As of May 31, 2021](Unit: Thousands of yen)

Total

Over 5 years(Note 4) Amount of repayment of short-term loans payable, current portion of long-term loans payable, investment corporation
bonds, and long-term loans payable scheduled to be due after the settlement of accounts
30th Fiscal Period [As of November 30, 2020](Unit: Thousands of yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Short-term loans payable

3,600,000

－

－

－

－

－

Current portion of
long-term loans payable

24,200,000

－

－

－

－

－

－

－

－

3,800,000

1,500,000

3,700,000－

31,600,000

26,200,000

24,300,000

20,550,000

65,000,000

27,800,000

31,600,000

26,200,000

28,100,000

22,050,000

68,700,000

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Short-term loans payable

2,400,000

－

－

－

－

－

Current portion of
long-term loans payable

21,500,000

－

－

－

－

－

Investment corporation bonds

－

－

－

3,800,000

1,500,000

3,700,000

Long-term loans payable－

30,600,000

25,600,000

27,350,000

20,700,000

66,200,000

23,900,000

30,600,000

25,600,000

31,150,000

22,200,000

69,900,000

Investment corporation bonds
Long-term loans payable
Total

Over 5 years

31st Fiscal Period [As of May 31, 2021](Unit: Thousands of yen)

Total

－ 21 －

Over 5 years

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
30th Fiscal Period [As of November 30, 2020]
Not applicable.
31st Fiscal Period [As of May 31, 2021]
Not applicable.
(2) Transactions for which hedge accounting is applied
30th Fiscal Period [As of November 30, 2020]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: Thousands of yen)Contract amount, etc.
Hedge
Type, etc. of
Main
Method ofaccounting
derivative
hedgedFairvalue
calculationof
Of which,approachtransaction
itemthat fair value
over 1 year
Interest rate swap
Based on pricePrinciple
Long-termtransaction(291,287)
quoted by partner
accounting
loans
116,500,000
93,300,000
Fixed payablefinancial institution
methodpayableFloating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
11,100,000
11,100,000(*)－
for interest
Fixed payablepayablerate swaps
Floating receivable
Total
127,600,000
104,400,000(291,287)－
31st Fiscal Period [As of May 31, 2021]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: Thousands of yen)Contract
amount,etc.
Type, etc. of
Main
Hedge
Method ofaccounting
derivative
hedgedFair value
calculation of
Of which,approachtransaction
itemthat fair value
over 1 year
Interest rate swap
Based on pricePrinciple
Long-termtransaction(232,803)
quoted by partner
accounting
loans
99,800,000
82,800,000
Fixed payablefinancial institution
methodpayableFloating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
20,500,000
20,500,000(*)－
for interest
Fixed payablepayablerate swaps
Floating receivable
Total
120,300,000
103,300,000(232,803)－(*) Since the derivative financial instruments qualifying for the special accounting for interest rate swaps are accounted for as
one transaction together with their hedged item, long-term loans payable, the fair value of these derivatives is included inthat of related long-term loans payable. (Please refer to “Notes to Financial Instruments (2) Matters Concerning Fair Value,etc. of Financial Instruments (Note 1) Liabilities (4) (6).”)－ 22 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period[Notes to Transactions with Related Parties](1) Transactions with related parties① Parent company and major corporate unitholders, etc.
30th Fiscal Period [From: June 1, 2020 To: November 30, 2020]
Not applicable.
31st Fiscal Period [From: December 1, 2020 To: May 31, 2021]
Not applicable.
② Affiliated companies, etc.
30th Fiscal Period [From: June 1, 2020 To: November 30, 2020]
Not applicable.
31st Fiscal Period [From: December 1, 2020 To: May 31, 2021]
Not applicable.
③ Sister companies, etc.
30th Fiscal Period [From: June 1, 2020 To: November 30, 2020]
Not applicable.
31st Fiscal Period [From: December 1, 2020 To: May 31, 2021]
Not applicable.
④ Officers and major individual unitholders, etc.
30th Fiscal Period [From: June 1, 2020 To: November 30, 2020]
Not applicable.
31st Fiscal Period [From: December 1, 2020 To: May 31, 2021]
Not applicable.
(2)

Information about parent company or any material affiliated company
30th Fiscal Period [From: June 1, 2020 To: November 30, 2020]
Not applicable.
31st Fiscal Period [From: December 1, 2020 To: May 31, 2021]
Parent company’s information
Daiwa Securities Group Inc. (listed on Tokyo Stock Exchange, Inc. and Nagoya Stock Exchange, Inc.)[Notes to Investment and Rental Properties]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The carrying amount,amount of increase (decrease) during period and fair value for these rental properties are as follows.
(Unit: Thousands of yen)
30th Fiscal Period[From: June 1, 2020
To: Nov. 30, 2020]

31st Fiscal Period[From: Dec. 1, 2020
To: May 31, 2021]

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

453,876,951

454,562,081

685,129(4,520,578)

454,562,081

450,041,503

573,850,000

572,160,000(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) for rental properties during the 30th Fiscal Period, the amount of increase ismainly attributable to acquisition of Nihonbashi-Bakurocho 1-Chome Development Site (land) (3,775 million yen),and the amount of decrease is mainly attributable to divestment of Daiwa Shimbashi 510 (2,103 million yen) anddepreciation (1,827 million yen). For the 31st Fiscal Period, the amount of decrease is mainly attributable todivestment of Daiwa Kyobashi (3,130 million yen) and depreciation (1,816 million yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by external real estate appraisers.
The income (loss) for investment and rental properties are as presented in the aforementioned “Notes to Statements of Income.”－ 23 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period[Notes to Segment Information, etc.](1) Segment Information
Segment information has been omitted because the Investment Corporation has no segment except the property leasing
business.
(2) Related Information
30th Fiscal Period [From: June 1, 2020 To: November 30, 2020]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment
are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90%of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales figure to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
31st Fiscal Period [From: December 1, 2020 To: May 31, 2021]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment
are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90%of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales figure to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
[Notes to Per Unit Information]

Net assets per unit

30th Fiscal Period[From: June 1, 2020
To: Nov. 30, 2020]

31st Fiscal Period[From: Dec. 1, 2020
To: May 31, 2021]

519,462 yen

519,419 yen

Net income per unit
14,484 yen
15,412 yen(Note 1) Net income per unit is calculated by dividing net income by the average number of investment units during the period.
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.

Net income (Thousands of yen)Amounts not attributable to common unitholders (Thousands of yen)
Net income attributable to common investment units (Thousands of yen)
Average number of investment units during the period (Units)[Notes to Significant Subsequent Events]
Not applicable.

－ 24 －

30th Fiscal Period[From: June 1, 2020
To: Nov. 30, 2020]

31st Fiscal Period[From: Dec. 1, 2020
To: May 31, 2021]

7,124,433

7,549,897－－

7,124,433

7,549,897

491,877

489,860

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
2.9. Increase (Decrease) in Total Number of Investment Units Issued and Outstanding
In the 31st Fiscal Period, the Investment Corporation acquired own investment units and cancelled all of the acquired own
investment units. Increase (decrease) in the total number of investment units issued and outstanding and unitholders’ capital,
net in the most recent 5 years up to the end of the 31st Fiscal Period is as follows.

Date

Description

Total number of investment units
issued and outstanding(Units)Increase(Decrease)

BalanceUnitholders’ capital, net(Millions of yen)
(Note 1)
Increase(Decrease)

Notes

BalanceAugust 2, 2016

Capital increase throughpublic offering

12,700496,700

7,461

250,864(Note 2)

August 31, 2016

Capital increase by way ofthird-party allotment

1,169

497,869686

251,551(Note 3)

May 31, 2018 Cancellation(5,992)491,877(3,675)

247,876(Note 4)

May 31, 2021 Cancellation(3,789)488,088(2,782)245,093(Note 5)(Note 1) Unitholders’ capital, net = Unitholders’ capital – Deduction from unitholders’ capital(Note 2) The Investment Corporation issued new investment units through public offering at an issue price of 607,425 yen perunit (paid-in price: 587,489 yen) to procure funds for repayment of borrowings, etc.
(Note 3) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 587,489
yen per unit (paid-in price: 587,489 yen) to procure funds for repayment of borrowings, etc.
(Note 4) In the period from March 1, 2018, to May 18, 2018, the Investment Corporation acquired own investment units throughmarket purchase at the Tokyo Stock Exchange based on a discretionary transaction agreement with a securities company.
The Investment Corporation cancelled all of the acquired own investment units (5,992 units) on May 31, 2018, based on
the resolution at its board of directors’ meeting held on May 28, 2018.
(Note 5) In the period from February 24, 2021, to May 14, 2021, the Investment Corporation acquired own investment units
through market purchase at the Tokyo Stock Exchange based on a discretionary transaction agreement with a securities
company. The Investment Corporation cancelled all of the acquired own investment units (3,789 units) on May 31, 2021,
based on the resolution at its board of directors’ meeting held on May 26, 2021.

－ 25 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

3. Reference Information
3.1. Investment Status
31st Fiscal Period(As of May 31, 2021)
Type of asset

Use

RegionReal estate

OfficeTrustbeneficiaryinterest inreal estate

OfficeTotal amount owned(Millions of yen)
(Note 1)

As a percentage of
total assets(%)

Five Central Wards of Tokyo (Note 2)

15,401

3.2

Five Central Wards of Tokyo (Note 2)

345,499

71.3

Greater Tokyo (Note 3)

80,11216.5

Major Regional Cities (Note 4)

9,028

1.9

450,041

92.9

34,2687.1

484,310100.0[450,041][92.9]

Subtotal
Deposits and other assets
Total amount of assets (Note 5)(Note 1) “Total amount owned” is the carrying amount (the book value after depreciation in the case of real estate and trust
beneficiary interest in real estate).
(Note 2) “Five Central Wards of Tokyo” are Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards.
(Note 3) “Greater Tokyo” is Tokyo, Kanagawa, Chiba and Saitama Prefectures (excluding the Five Central Wards of Tokyo).
(Note 4) “Major Regional Cities” are the Osaka metropolitan area (Osaka, Kyoto and Hyogo Prefectures), Nagoya metropolitan
area (Aichi, Mie and Gifu Prefectures), and ordinance-designated cities and core cities set forth in the Local Autonomy
Act.
(Note 5) The figures in parentheses [ ] under “Total amount of assets” show 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 beneficiary interest in real estate.

－ 26 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
3.2. Investment Real Estate Properties (As of May 31, 2021)
3.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Type ofprice
RegionProperty namespecified(Millions of
asset
yen)
(Note 1)
Daiwa Ginza
14,100Real estate
Daiwa Ginza Annex
3,050
8,265
Daiwa Shibaura
Daiwa Minami-Aoyama
4,550
Daiwa Sarugakucho
3,190
Daiwa A Hamamatsucho (Note 5)
2,865
Daiwa Jingumae
2,800
Daiwa Shibadaimon
2,578
Daiwa Misakicho
2,346
Daiwa Tsukijiekimae
1,560
Daiwa Tsukiji
1,240
Daiwa Tsukishima
7,840
Daiwa Nihonbashi Horidomecho
2,520
Daiwa Azabudai
1,600
Daiwa Kojimachi 4-chome
2,910
Shinjuku Maynds Tower (Note 5)
66,900Daiwa SHIBUYA EDGE
5,900
Daiwa Kodenmacho
2,460
Daiwa Nishi-Shimbashi
5,000
Daiwa Kayabacho
5,600
Daiwa Jinbocho 3-chome
3,550
E SPACE TOWER
24,000Daiwa Nihonbashi Hongokucho
1,721
shinyon curumu
9,650
Five
Central Daiwa Akasaka
9,200
Trust
Wards of Daiwa Shibuya Miyamasuzaka
beneficiary
7,000
Tokyo
interest in
Daiwa Azabu Terrace
14,000real estate
Daiwa Ebisu 4-chome
4,135
LAQUAS Higashi Shinjuku
8,450
Daiwa Aoyama
9,800
Shinsen Place
4,800
Daiwa Shibuya Square
16,000Daiwa River Gate
28,000Daiwa Hatchobori ekimae
2,871
Daiwa Hatchobori ekimae West
1,647
Daiwa Nishi-Shinjuku
13,710Kirin Nihonbashi
8,180
Daiwa Higashi-Nihonbashi
6,370
Daiwa Daikanyama
2,280
Daiwa Shinjuku West942
Daiwa Kanda Mikuracho
1,592
Daiwa Kanda East
4,200
Daiwa Kandasudacho
2,295
Daiwa Sasazuka Tower
15,500Daiwa Sasazuka
3,000
Daiwa Harumi
11,200Daiwa Mita 2-Chome
2,635
Nihonbashi Central Square (Note 5)
3,521
Nihonbashi-Bakurocho 1-Chome
3,775
Development Site (land) (Note 6)
Total for Five Central Wards of Tokyo
371,298(49 properties)－ 27 －

Carrying
amount(Millions ofyen)(Note 2)
12,672
2,729
8,038
4,390
3,099
2,700
2,661
2,341
2,108
1,244
1,103
6,610
2,380
1,473
2,822
63,461
5,563
2,322
4,608
5,097
3,255
23,421
1,515
9,509
10,0807,271
13,833
4,167
8,316
9,984
4,897
15,79827,487
2,884
1,702
13,919
8,312
6,261
2,360
985
1,612
4,217
2,370
15,922
3,170
11,2081,583
3,614

Estimated priceInvestment
at end of period
ratio(Millions of(%)yen)(Note 4)(Note 3)
17,900
3.1
3,960
0.7
8,430
1.8
4,740
1.0
4,260
0.7
3,970
0.6
3,130
0.6
4,060
0.6
3,120
0.5
2,310
0.3
1,750
0.3
10,800
1.7
3,030
0.5
1,950
0.3
2,920
0.6
64,300
14.5
5,450
1.3
2,330
0.5
7,370
1.1
8,230
1.2
5,270
0.8
36,600
5.2
2,690
0.4
16,5002.1
15,5002.0
13,1001.5
18,300
3.0
6,440
0.9
11,3001.8
12,200
2.1
6,800
1.0
22,2003.5
34,300
6.1
3,290
0.6
1,970
0.4
17,400
3.0
8,360
1.8
7,150
1.4
3,620
0.5
1,250
0.2
1,850
0.3
5,770
0.9
2,820
0.5
16,000
3.4
3,570
0.7
12,700
2.4
4,020
0.6
3,820
0.8

3,803

4,250

0.8

360,900

463,050

80.5

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionProperty nameDaiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Daiwa Kamiooka
Daiwa Ogikubo Tower
Greater
Daiwa Meguro SquareTokyo
Daiwa Ogikubo
CONCURRED Yokohama (Note 5)
Daiwa Shinagawa Gotenyama
Daiwa Nakano-Sakaue
Total for Greater Tokyo (9 properties)
Major
Regional
CitiesDaiwa Kitahama

Type ofspecified
asset

Trust
beneficiaryinterest inreal estate

Trustbeneficiaryinterest inreal estate

Acquisition
price(Millions ofyen)(Note 1)
2,958
7,710
2,000
15,2205,600
3,800
38,1002,500
2,750
80,638Carrying
amount(Millions ofyen)(Note 2)
2,551
6,989
1,805
16,213
5,409
3,965
37,7622,569
2,845
80,112

9,481

9,028

Estimated priceInvestment
at end of period
ratio(Millions of(%)yen)(Note 4)(Note 3)
4,370
0.6
6,300
1.7
2,900
0.4
23,200
3.3
7,280
1.2
4,820
0.8
41,200
8.3
2,880
0.5
2,860
0.6
95,81017.5
13,3002.1

Total for Major Regional Cities (1 property)
9,481
9,028
13,3002.1
Total (59 properties)
461,418
450,041
572,160
100.0(Note 1) “Acquisition price” is excluding acquisition costs, fixed property tax, city planning tax, consumption tax and local
consumption tax.
(Note 2) “Carrying amount” is the book value after depreciation as of May 31, 2021.
(Note 3) “Estimated price at end of period” is the price as of May 31, 2021, stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation &Advisory K.K. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 4) “Investment ratio” is the acquisition price of each property expressed as a percentage of the total amount of acquisition
prices, rounded to one decimal place.
(Note 5) For Daiwa A Hamamatsucho, Shinjuku Maynds Tower, Nihonbashi Central Square and CONCURRED Yokohama,the figures are those pertaining to the Investment Corporation’s ownership interest.
(Note 6) The Investment Corporation plans to develop an office building on the property, and the developed and completedbuilding are scheduled to be delivered by November 2022.

－ 28 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
3.2.2. Summary of Building and Leasing of Investment Real Estate

RegionProperty nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho(Note 8)Daiwa A Hamamatsucho
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho(Note 8)Daiwa Tsukijiekimae
Daiwa Tsukiji
Daiwa Tsukishima
Daiwa Nihonbashi
Horidomecho
Daiwa Azabudai
Daiwa Kyobashi(Note 9)Daiwa Kojimachi 4-chome
Five Central
Shinjuku Maynds Tower
Wards of(Note 10)Tokyo
Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho(Note 8)Daiwa Jinbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi
Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya
Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome(Note 8)LAQUAS Higashi Shinjuku
Daiwa Aoyama
Shinsen Place(Note 8)Daiwa Shibuya Square

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

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leasedfloor area(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

Rent revenue
duringcurrent period(Thousands ofyen)(Note 7)

July 1963

8,114.93

8,091.03

23

99.7

435,354

Aug. 1972

2,032.11

2,032.11

7

100.0

82,990Oct. 1987

9,619.67

9,496.94

54

98.7

249,525

Sept. 1990

2,715.54

2,715.545

100.0

131,412June 1985

3,657.43

3,657.432

100.0(Not disclosed)

July 1993

3,663.38

3,663.38

12

100.0

135,197

Dec. 1997

2,198.61

2,198.61

4

100.0

59,621

Nov. 1996

2,386.48

2,386.48

7

100.0

100,989

July 1996

2,137.53

2,137.531

100.0(Not disclosed)

Jan. 1996

2,659.59

2,659.59

6

100.0

71,109Jan. 1990

1,487.44

1,487.44

6

100.0

49,211

July 1996

8,425.69

8,425.69

4

100.0

269,249

Apr. 1993

2,848.91

2,848.91

7

100.0

87,640

Apr. 1984

1,697.88

1,697.88

11

100.0

53,163Oct. 1974

－

－

－

－

13,932

Oct. 1987

2,695.31

2,695.31

7

100.0

90,614

Sept. 1995

22,768.41

22,678.72

37

99.6

1,388,580

Aug. 2006

2,480.65

2,480.655

100.0

130,455

Mar. 1985

2,379.31

2,379.31

8

100.0

67,221

July 1993

4,815.84

4,815.84

11

100.0

186,232

Apr. 2010

5,899.11

5,899.111

100.0(Not disclosed)

Feb. 2010

2,889.34

2,545.957

88.1

110,740

Oct. 2002

13,960.87

13,960.87

13

100.0

786,067

May 2010

2,143.08

2,143.08

6

100.0

75,419Jan. 2012

6,751.31

6,303.18

16

93.3

355,783

Sept. 1990

8,750.60

8,466.73

12

96.7

360,826

Dec. 1988

6,328.98

5,580.10

788.1

323,070

Sept. 2009

13,234.39

13,234.39

11

100.0

469,337

Dec. 1997

2,951.70

2,951.701

100.0(Not disclosed)

Aug. 2010

7,498.33

7,498.33

4

100.0

232,075

Nov. 2001

4,426.10

4,426.107

100.0

236,779

Sept. 2001

2,811.35

2,811.351

100.0(Not disclosed)

Feb. 2004

8,566.73

8,566.73

12

100.0

481,432－ 29 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leasedfloor area(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

Rent revenue
duringcurrent period(Thousands ofyen)(Note 7)

Feb. 1994

32,055.85

26,752.13

92

83.4

958,808

Feb. 2006

2,622.42

2,622.429

100.0

85,387

Feb. 1996

1,734.68

1,734.68

9

100.0

48,923

Aug. 1991

6,967.61

6,967.61

7

100.0

407,699

Feb. 1999

5,630.17

5,630.171

100.0(Not disclosed)

Mar. 2008

5,015.88

5,015.88

5

100.0

177,395

Mar. 2001

1,642.83

1,642.83

1

100.0(Not disclosed)

Mar. 1989

1,118.74

1,118.74

9

100.0

38,594Jan. 1991

1,719.51

1,719.51

7

100.0

51,184

Feb. 2005

3,980.56

3,980.56

5

100.0

144,126

Aug. 1990

2,211.64

2,211.64

7

100.0

67,561Feb. 1993

16,158.16

16,158.16

7

100.0

389,554

Dec. 1991

3,828.95

3,828.95

9

100.0

88,504Jan. 2008

11,227.10

11,227.10

7

100.0

344,561

Mar. 2017

2,101.61

2,101.611

100.0(Not disclosed)

Jan. 2010

1,837.05

1,837.05

10

100.0

90,361

－

－

－

－

－

274,849.36

267,485.05

501

97.3

10,956,592

June 1993

4,462.28

4,462.28

9

100.0

142,583

July 1991

6,546.03

6,235.34

13

95.2

172,109

May 2011

2,630.30

2,630.30

9

100.0

92,673June 1993

17,778.14

16,747.26

994.2

601,358

July 2009

3,519.50

3,519.50

16

100.0

171,425

Nov. 1990

3,849.63

3,849.63

11

100.0

128,395

Feb. 2008

28,052.98

27,787.39

37

99.0

1,067,619

July 1992

2,396.96

2,396.96

7

100.0

80,026

Jan. 1995

2,869.13

2,869.13

6

100.0

73,052

72,104.95

70,497.79

117

97.7

2,529,244

13,517.62

13,517.62

7

100.0

401,299

Total for Major Regional Cities (1 property)

13,517.62

13,517.62

7

100.0

401,299

Total (60 properties)

360,471.93

351,500.46

625

97.5

13,887,137

RegionProperty nameDaiwa River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimaeWestDaiwa Nishi-Shinjuku
Kirin Nihonbashi(Note 8)Daiwa Higashi-Nihonbashi
Daiwa Daikanyama(Note 8)Daiwa Shinjuku West
Five Central
Wards of Daiwa Kanda MikurachoTokyo
Daiwa Kanda East
Daiwa Kandasudacho
Daiwa Sasazuka Tower
Daiwa Sasazuka
Daiwa Harumi
Daiwa Mita 2-Chome(Note 8)
Nihonbashi Central Square(Note 11)
Nihonbashi-Bakurocho 1Chome Development Site
(land) (Note 12)

Structureandnumber offloors(Note 1)
S / SRC /RC
B2 / 20FS / SRC
B1 / 10F
SRC
B1 / 9F
SRC / RC /S
B2 / 11F
S / SRC
7F
S
7F
S
6F
RC
4F
SRC / S
B1 / 7F
S
9F
S / RC
B1 / 10F
SRC / RC /S
B2 / 18F
SRC / S
B1 / 8FS
B1 / 12F
S
8F
S
8F
－

－

Total for Five Central Wards of Tokyo (50 properties)
Daiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Daiwa Kamiooka
Daiwa Ogikubo Tower(Note 13)
GreaterTokyo

Daiwa Meguro Square
Daiwa Ogikubo
CONCURRED Yokohama(Note 14)
Daiwa Shinagawa Gotenyama
Daiwa Nakano-Sakaue

SRC / S
B1 / 9F
SRC
B1 / 11F
S / SRC
B3 / 7FS / SRC
B2 / 18FS / SRC
B2 / 14F
SRC
B1 / 7FS / SRC
B1 / 20F
SRC / S
8F
SRC
B1 / 8F

Total for Greater Tokyo (9 properties)
Major
Regional
CitiesDaiwa Kitahama

S / SRC
B1 / 16F

Feb. 2008－ 30 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st 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, 2021.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease agreements, etc. executedwith end tenants as of May 31, 2021.
(Note 5) “Total number of tenants” is the number of end tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 6) “Occupancy rate” is the figure arrived at when leased floor area is divided by leasable floor area, rounded down to
one decimal place.
(Note 7) “Rent revenue during current period” is rent income, common area charges income, parking lot income and otherincome generated from the applicable investment real estate property (excluding other lease business revenue) during
the 31st Fiscal Period, rounded down to the nearest thousand yen. The rent revenue during current period for Daiwa
Shimbashi 510, which was divested on November 12, 2020, of 14 thousand yen is not included.
(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 property was divested on December 23, 2020. This is reflected in the totals for the number of properties and therent revenue during current period.
(Note 10) The real estate in trust pertaining to trust beneficiary interest held by the Investment Corporation is the co-ownershipinterest corresponding to three-sevenths of the entire property. Accordingly, leasable floor area and leased floor area
are the floor areas corresponding to three-sevenths of the entire building.
(Note 11) The real estate in trust pertaining to trust beneficiary interest held by the Investment Corporation is thecompartmentalized ownership building. Of the rent revenue, the Investment Corporation’s ownership ratio of revenue
from the master lease business (rent income, etc.) is 183,715/301,220, based on the agreement, etc. among thecompartmentalized co-owners of the property. Leasable floor area and leased floor area are figures corresponding to
183,715/301,220 of the area subject to the business while total number of tenants and occupancy rate are figures forthe entirety of the area subject to the business.
(Note 12) The Investment Corporation plans to develop an office building on the property.
(Note 13) The buildings consist of three registrations. Of these, the details of the major building are shown here.
(Note 14) The real estate in trust pertaining to trust beneficiary interest held by the Investment Corporation is the quasi coownership interest corresponding to 75% of the entire property. Accordingly, leasable floor area and leased floor area
are the floor areas corresponding to 75% of the entire building.

－ 31 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
3.2.3. Capital Expenditures for Assets Under Management
A. Scheduled Capital Expenditures
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.
Expected construction amount(Millions of yen)
Name of
Scheduled
AmountTotal
real estate properties
Purposeimplementation
Total
paid
duringamount(Location)
periodamountcurrent
already
periodpaid
From: June 2021
Shinjuku Maynds Tower
Renovation of air-conditioning
51－－
facilities
To: Nov. 2021
(Shibuya-ku, Tokyo)
Daiwa Kayabacho(Chuo-ku, Tokyo)

Addition of humidifiers

From: June 2021
To: Nov. 2021

48

－

－

Daiwa Minami-Aoyama(Minato-ku, Tokyo)

Upgrading of air-conditioning
facilities

From: June 2021
To: Nov. 2021

33

－

－

CONCURRED Yokohama(Yokohama-shi, Kanagawa)

Renovation of exterior walls

From: June 2021
To: Nov. 2021

29

－

－

Daiwa Ginza(Chuo-ku, Tokyo)

Upgrading of private power
generation facilities

From: June 2021
To: Nov. 2021

21

－

－

B. Capital Expenditures During the 31st Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the 31st
Fiscal Period for existing portfolio properties. Capital expenditures for the 31st Fiscal Period amounted to 436 million yen
and, when combined with the 583 million yen in repair expenses charged to the 31st Fiscal Period expenses, totals 1,020
million yen in construction work implemented.
Name ofreal estate properties(Location)

Construction amount paid
(Millions of yen)

Purpose

PeriodDaiwa Tsukishima(Chuo-ku, Tokyo)

Upgrading of air-conditioningdrain

From: Dec. 2020
To: Apr. 2021

50

Daiwa Akasaka(Minato-ku, Tokyo)

Construction work for furnishedoffice on 1F

From: Apr. 2021
To: May 2021

43

Daiwa River Gate
(Chuo-ku, Tokyo)

Renovation of power receiving
and transforming facility

From: May 2021
To: May 2021

23

Other

318
Total

436

C. Reserve Amount for Long-Term Repair Plans (Reserve for Repairs)
The Investment Corporation sets aside the following reserve for repairs from cash flows during the fiscal period for thepayment of future major repairs.
(Unit: Millions of yen)
27th
28th
29th
30th
31st
FiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscal period[From: Dec. 1, 2018
To: May 31, 2019][From: June 1, 2019
To: Nov. 30, 2019][From: Dec. 1, 2019
To: May 31, 2020][From: June 1, 2020
To: Nov. 30, 2020][From: Dec. 1, 2020
To: May 31, 2021]

1,629

2,089

2,150

2,150

2,190

460

61

－

40

－

Reversal of reserve incurrent period

－

－

－

－

－

Amount carried forward
to next period

2,089

2,150

2,150

2,190

2,190

Balance of reserveat beginning ofcurrent period
Amount of reserve incurrent period－ 32 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
3.2.4. Summary of Estimated Price at End of Period (As of May 31, 2021)

Property name

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

Summary of Appraisal Report
Direct capitalization method

DCF method

Daiwa Ginza

17,90018,1003.3

Discount Terminalrate
cap rate(%)(%)
17,600
3.1
3.5

Daiwa Ginza Annex

3,960

4,050

3.3

3,870

3.1

3.5

Daiwa Shibaura

8,430

8,370

3.9

8,450

3.7

4.1

Daiwa Minami-Aoyama

4,740

4,800

3.7

4,680

3.5

3.9

Daiwa Sarugakucho

4,260

4,320

4.2

4,190

4.0

4.4

3,970

4,070

3.6

3,930

3.4

3.8

3,130

3,180

3.6

3,080

3.4

3.8

Daiwa Shibadaimon

4,060

4,130

3.5

4,030

3.3

3.7

Daiwa Misakicho
Daiwa Tsukijiekimae(Note 3)
Daiwa Tsukiji

3,120

3,170

3.8

3,100

3.6

4.0

2,310

2,340

4.1

2,300

4.1

4.3

1,750

1,760

3.9

1,750

3.9

4.1

Daiwa Tsukishima

10,80010,9004.0

10,700

3.7

4.2

Daiwa Nihonbashi Horidomecho

3,030

3,050

3.8

3,010

3.6

4.0

Daiwa Azabudai

1,950

1,980

3.8

1,920

3.6

4.0

Daiwa Kojimachi 4-chome
Shinjuku Maynds Tower(Note 4)
Daiwa SHIBUYA EDGE

2,920

2,960

3.5

2,870

3.3

3.7

64,300152,000

3.1

147,000

2.9

3.3

5,450

5,580

3.5

5,320

3.3

3.7

Daiwa Kodenmacho

2,330

2,370

4.0

2,290

3.8

4.2

Daiwa Nishi-Shimbashi

7,370

7,520

3.4

7,300

3.2

3.6

Daiwa Kayabacho

8,230

8,370

3.3

8,170

3.1

3.5

Daiwa Jinbocho 3-chome

5,270

5,390

3.3

5,220

3.1

3.5

E SPACE TOWER

36,60037,4003.0

35,7002.8

3.2

Daiwa Nihonbashi Hongokucho

2,690

2,710

3.9

2,680

3.7

4.1

shinyon curumu

16,50016,8003.1

16,400

2.9

3.3

Daiwa Akasaka

15,50015,9003.2

15,300

3.0

3.4

Daiwa Shibuya Miyamasuzaka

13,10013,3003.3

12,800

3.1

3.5

Daiwa Azabu Terrace

18,30018,6003.5

17,900

3.3

3.7

Daiwa Ebisu 4-chome

6,440

6,450

3.6

6,440

3.7

3.8

LAQUAS Higashi Shinjuku

11,30011,7003.3

11,100

3.1

3.5

Daiwa Aoyama

12,20012,5003.2

12,100

3.0

3.4

Shinsen Place

6,800

6,970

3.3

6,720

3.2

3.5

Daiwa Shibuya Square

22,20022,4003.3

21,900

3.1

3.5

Daiwa River Gate

34,30034,5003.7

34,000

3.4

3.8

Daiwa Hatchobori ekimae

3,290

3,390

3.4

3,250

3.2

3.6

Daiwa Hatchobori ekimae West

1,970

2,030

3.5

1,950

3.3

3.7

Daiwa Nishi-Shinjuku

17,40017,7003.3

17,200

3.1

3.5

Kirin Nihonbashi

8,360

8,460

3.8

8,260

3.5

3.9

Daiwa A Hamamatsucho(Note 2)
Daiwa Jingumae

Price(Millions of yen)

－ 33 －

Cap rate(%)

Price(Millions of yen)

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

Property name

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

Summary of Appraisal Report
Direct capitalization method

DCF method

Daiwa Higashi-Nihonbashi
Daiwa Daikanyama(Note 5)
Daiwa Shinjuku West

7,150

7,300

3.8

Discount Terminalrate
cap rate
(%)
(%)
7,080
3.6
4.0

3,620

3,670

3.2

3,600

3.2

3.4

1,250

1,260

3.8

1,240

3.6

4.0

Daiwa Kanda Mikuracho

1,850

1,850

3.8

1,850

3.8

4.0

Daiwa Kanda East

5,770

5,890

3.4

5,650

3.2

3.6

Daiwa Kandasudacho

2,820

2,890

3.6

2,790

3.6

3.8

Daiwa Sasazuka Tower

16,00016,5003.8

15,800

3.6

4.0

Daiwa Sasazuka

3,570

3,690

3.9

3,520

3.7

4.1

Daiwa Harumi

12,70012,8003.6

12,500

3.6

3.8

Daiwa Mita 2-Chome
Nihonbashi Central Square(Note 6)
Nihonbashi-Bakurocho 1-Chome
Development Site (land) (Note 7)
Daiwa Higashi-Ikebukuro

4,020

4,090

3.7

3,940

3.5

3.9

3,820

3,900

3.4

3,730

3.2

3.6

4,250

－

－

－

－

－

4,370

4,420

4.0

4,350

3.8

4.2

Daiwa Shinagawa North

6,300

6,420

4.0

6,170

3.8

4.2

Daiwa Kamiooka

2,900

2,930

4.5

2,890

4.3

4.7

Daiwa Ogikubo Tower

23,20023,5003.6

23,100

3.4

3.8

Daiwa Meguro Square

7,280

7,460

3.5

7,200

3.3

3.7

Daiwa Ogikubo
CONCURRED Yokohama(Note 8)Daiwa Shinagawa Gotenyama

4,820

4,900

3.9

4,780

3.7

4.1

41,20042,3004.2

40,700

4.0

4.4

2,880

2,930

3.9

2,860

3.7

4.1

Daiwa Nakano-Sakaue

2,860

2,960

4.0

2,810

3.7

4.2

Daiwa Kitahama

13,30013,5003.7

13,200

3.5

3.9

Price
(Millions of yen)

Cap rate(%)

Price(Millions of yen)Total
572,160
664,380
644,240－－－(Note 1) “Estimated price at end of period” is the price as of May 31, 2021, stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation &Advisory K.K. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 2) For Daiwa A Hamamatsucho, the prices are those pertaining to the Investment Corporation’s ownership interest.
(Note 3) Discount rate for Daiwa Tsukijiekimae is the figure after the third fiscal year (4.0% up to the second fiscal year).
(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment
Corporation’s ownership interest, and the price indicated by the direct capitalization method and price indicated by
the DCF method are the prices pertaining to the entire property.
(Note 5) Discount rate for Daiwa Daikanyama is the figure after the 11th fiscal year (3.3% up to the 10th fiscal year).
(Note 6) For Nihonbashi Central Square, the prices are those pertaining to the Investment Corporation’s ownership interest.
(Note 7) For Nihonbashi-Bakurocho 1-Chome Development Site (land), the estimated price at end of period is the income
approach price indicated by the direct capitalization method (development leasing-type).
(Note 8) For CONCURRED Yokohama, the prices are those pertaining to the Investment Corporation’s ownership interest.

－ 34 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period
3.2.5. Status of Income (Loss), Etc. of Individual Properties
The following table lists the status of income (loss), etc. of each property for the 31st Fiscal Period (from December 1, 2020, to
May 31, 2021). Income (loss) information is presented in accordance with “2. Financial Statements; 2.7. Notes to Significant
Accounting Policies” outlined earlier.
RegionFive Central Wards of Tokyo

Property name

Daiwa
Ginza

Daiwa
Ginza Annex

Daiwa
Shibaura

Daiwa
MinamiAoyama

Daiwa
Sarugakucho(Note 3)Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (Millions of yen)

14,100

3,050

8,265

4,550

3,190

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

3.1

0.7

1.8

1.0

0.7

12,672

2,729

8,038

4,390

3,099

Estimated price at end of period(Millions of yen)

17,900

3,960

8,430

4,740

4,260

Total number of tenants (Note 1)

23

7

54

5

2

8,114.93

2,032.11

9,619.67

2,715.54

3,657.43

8,091.03

2,032.11

9,496.94

2,715.54

3,657.43

99.6

100.0

99.1

100.0

100.0

2

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

End of May 2019
End of Nov. 2019

99.4

100.0

99.5

100.0

100.0

End of May 2020

99.4

100.0

97.9

100.0

100.0

End of Nov. 2020

99.7

93.2

98.3

100.0

100.0

End of May 2021

99.7

100.0

98.7

100.0

100.0

182

182

182

182

182

435,354

99,290252,072

131,412(Not disclosed)

435,354

82,990249,525

131,412(Not disclosed)

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

Income(loss)
information

Other lease business revenue－

16,3002,547－(Not disclosed)

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

159,706

58,361

104,456

39,794(Not disclosed)

Consignment expenses

23,502

10,701

21,565

5,973(Not disclosed)

Utilities expenses

16,437

4,077

11,042

4,389(Not disclosed)

Taxes and dues

33,946

11,26820,803

12,938(Not disclosed)

528

123

474

182

(Not disclosed)

3,522

22,437

13,258

1,391(Not disclosed)

Depreciation (C)65,278

8,818

37,292

14,917(Not disclosed)

Other lease business expenses

16,489934

20－(Not disclosed)

275,648

40,928

147,616

91,617(Not disclosed)

340,927

49,746

184,908

106,535

98,958

6,356

4,745

11,881－

300

334,570

45,001

173,027

106,535

98,658

36.68

58.78

41.44

30.28

(Not disclosed)

67,77822,31741,022

25,594

14,071

400,440

80,790302,630

184,61396,757

Non-life insurance expenses
Repair expenses

Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 35 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
A Hamamatsucho

Daiwa
Jingumae

Daiwa
Shibadaimon

Daiwa
Misakicho(Note 3)

Daiwa
Tsukijiekimae

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Jan. 2006

Acquisition price (Millions of yen)

2,865

2,800

2,578

2,346

1,560

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

0.6

0.6

0.6

0.5

0.3

2,700

2,661

2,341

2,108

1,244

Estimated price at end of period(Millions of yen)

3,970

3,130

4,060

3,120

2,310

Total number of tenants (Note 1)

12

4

7

1

6

3,663.38

2,198.61

2,386.48

2,137.53

2,659.59

3,663.38

2,198.61

2,386.48

2,137.53

2,659.59

100.0

100.0

100.0

100.0

100.0

End of Nov. 2019

100.0

100.0

100.0

100.0

100.0

End of May 2020

100.0

78.5

100.0

100.0

100.0

End of Nov. 2020

100.0

78.5

100.0

100.0

100.0

End of May 2021

100.0

100.0

100.0

100.0

100.0

182

182

182

182

182

135,197

59,621

100,989(Not disclosed)

71,109135,197

59,621

100,989(Not disclosed)

71,1092

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

End of May 2019

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

Income(loss)
information

Other lease business revenue

－

－

－

(Not disclosed)－

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

70,40344,68848,914(Not disclosed)

28,237

Consignment expenses

10,283

14,197

7,840(Not disclosed)

3,935

Utilities expenses

5,853

2,285

3,826

(Not disclosed)

3,262

Taxes and dues

9,050

6,905

6,639

(Not disclosed)

5,268

Non-life insurance expenses

226

99

146

(Not disclosed)

118

Repair expenses

852

12,09919,894(Not disclosed)

1,496

Depreciation (C)14,736

9,093

10,567(Not disclosed)

14,138Other lease business expenses

29,4007－(Not disclosed)

18

64,794

14,93352,074(Not disclosed)

42,872

79,53024,026

62,642

40,11057,010

2,926

－

－

23,747－76,60424,026

62,642

16,36257,010

52.07

74.95

48.44

(Not disclosed)

39.71

17,988

13,792

12,92010,641

10,498103,380

99,70087,656

114,585

79,450Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 36 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
Tsukiji

Daiwa
Tsukishima

Daiwa
Nihonbashi
Horidomecho

Daiwa
Azabudai

Daiwa
Kyobashi(Note 4)

Acquisition dateJan. 2006

Mar. 2006

May 2006

May 2006

July 2006

Acquisition price (Millions of yen)

1,240

7,840

2,520

1,600

－

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

0.3

1.7

0.5

0.3

－

1,103

6,610

2,380

1,473

－

Estimated price at end of period(Millions of yen)

1,750

10,800

3,030

1,950

－

Total number of tenants (Note 1)

6

4

7

11

－

1,487.44

8,425.69

2,848.91

1,697.88－

1,487.44

8,425.69

2,848.91

1,697.88

－

100.0

100.0

100.0

100.0

100.0

2

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

End of May 2019
End of Nov. 2019

100.0

100.0

100.0

100.0

100.0

End of May 2020

100.0

100.0

100.0

100.0

100.0

End of Nov. 2020

100.0

100.0

100.0

100.0

100.0

End of May 2021

100.0

100.0

100.0

100.0

－

Number of days of asset management

182

182

182

182

22

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

49,211

269,249

87,64053,991

13,932

49,211

269,249

87,64053,163

13,932Rent revenue – real estate

Income(loss)
information

Other lease business revenue

－

－

－

828

－

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

24,217

117,01435,101

22,612

12,825

Consignment expenses

6,057

13,254

4,901

7,019

699

Utilities expenses

1,790

8,035

3,719

2,029

1,680

Taxes and dues

4,098

15,096

6,995

5,064

7,138

75

347

157

88

19

Repair expenses

4,164

24,086

3,822

766

343

Depreciation (C)8,031

56,193

15,505

7,643

2,944

－

－

－

－

－

24,994

152,235

52,53931,3791,107

33,025

208,429

68,04439,023

4,052－

55,111

2,874

976

－

33,025

153,317

65,16938,046

4,052

49.21

43.46

40.05

41.88

92.05

8,133

29,85913,816

10,099－97,348

136,680

147,575

110,990－

Non-life insurance expenses

Other lease business expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 37 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
Kojimachi 4chome

Shinjuku
MayndsTower

Daiwa
SHIBUYAEDGE

Daiwa
Kodenmacho

Daiwa
NishiShimbashi

Acquisition date

Oct. 2006

July 2007 andNov. 2007

July 2007

Aug. 2007

Aug. 2010

Acquisition price (Millions of yen)

2,910

66,900

5,900

2,460

5,000

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

0.6

14.5

1.3

0.5

1.1

2,822

63,461

5,563

2,322

4,608

Estimated price at end of period(Millions of yen)

2,920

64,300

5,450

2,330

7,370

Total number of tenants (Note 1)

7

37

5

8

11

2,695.31

22,768.41

2,480.65

2,379.31

4,815.84

2,695.31

22,678.72

2,480.65

2,379.31

4,815.84

100.0

99.3

100.0

100.0

100.0

2

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

End of May 2019
End of Nov. 2019

100.0

95.1

100.0

100.0

100.0

End of May 2020

100.0

100.0

100.0

100.0

100.0

End of Nov. 2020

100.0

100.0

100.0

100.0

100.0

End of May 2021

100.0

99.6

100.0

100.0

100.0

Number of days of asset management

182

182

182

182

182

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

90,614

1,388,580

130,455

67,221

186,232

90,614

1,388,580

130,455

67,221

186,232

Rent revenue – real estate

Income(loss)
information

Other lease business revenue

－

－

－

－

－

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

45,149535,090

38,091

34,711

81,474

Consignment expenses

5,349

84,917

5,972

5,228

15,103

Utilities expenses

4,671

113,598

5,432

3,754

7,295

Taxes and dues

16,402

126,493

8,131

3,834

16,223

171

2,295

128

114

290

Repair expenses

3,257

7,009

1,851

12,715

4,795

Depreciation (C)15,296

199,848

16,574

8,242

37,766

－

928

－

822

－

45,464853,490

92,36432,510104,757

60,761

1,053,338

108,938

40,752

142,524

1,332

8,960

171

932

871

59,4291,044,378

108,767

39,820141,653

49.83

38.54

29.20

51.64

43.75

32,527

266,565

16,236

7,658

32,230142,915

5,834,950

45,35084,051

178,710Non-life insurance expenses

Other lease business expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 38 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
Kayabacho(Note 3)

Daiwa
Jinbocho
3-chomeE SPACE
TOWER

Daiwa
Nihonbashi
Hongokucho

shinyoncurumuAcquisition dateMar. 2011

Mar. 2011

July 2011

May 2012

Dec. 2012 andApr. 2013

Acquisition price (Millions of yen)

5,600

3,550

24,000

1,721

9,650

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

1.2

0.8

5.2

0.4

2.1

5,097

3,255

23,421

1,515

9,509

Estimated price at end of period(Millions of yen)

8,230

5,270

36,6002,690

16,500Total number of tenants (Note 1)

1

7

13

6

16

5,899.11

2,889.34

13,960.87

2,143.08

6,751.31

5,899.11

2,545.95

13,960.87

2,143.08

6,303.18

100.0

88.1

89.6

100.0

100.0

2

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

End of May 2019
End of Nov. 2019

100.0

100.0

97.0

93.9

100.0

End of May 2020

100.0

100.0

100.0

100.0

100.0

End of Nov. 2020

100.0

100.0

92.8

100.0

96.7

End of May 2021

100.0

88.1

100.0

100.0

93.3

182

182

182

182

182

(Not disclosed)

110,740

795,067

75,419355,783

Rent revenue – real estate(Not disclosed)

110,740

786,067

75,419355,783

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

Income(loss)
information

Other lease business revenue(Not disclosed)

－

9,000

－

－

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

(Not disclosed)

42,371

244,814

23,831

124,415

Consignment expenses(Not disclosed)

7,053

71,895

3,457

27,668

Utilities expenses(Not disclosed)

4,723

30,124

2,252

14,374

Taxes and dues

(Not disclosed)

9,930

62,312

4,554

37,984Non-life insurance expenses(Not disclosed)

150

777

93

401

Repair expenses(Not disclosed)

634

7,423

56

6,197

Depreciation (C)(Not disclosed)

19,87972,164

13,41837,790

Other lease business expenses(Not disclosed)

－

116

－

－

(Not disclosed)

68,368550,252

51,587

231,368

152,670

88,247

622,41765,006269,158253－

27,049－17,010152,417

88,247595,367

65,006

252,148(Not disclosed)

38.26

30.79

31.60

34.97

25,51519,809124,052

9,087

75,768138,850

98,780696,050

50,940166,089

Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 39 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
AkasakaDaiwa
ShibuyaMiyamasuzaka

Daiwa
Azabu Terrace

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

Acquisition dateAug. 2013

Sept. 2013

July 2014

Dec. 2014

Dec. 2014

Acquisition price (Millions of yen)

9,200

7,000

14,000

4,135

8,450

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

2.0

1.5

3.0

0.9

1.8

10,0807,271

13,833

4,167

8,316

Estimated price at end of period(Millions of yen)

15,50013,10018,3006,440

11,300Total number of tenants (Note 1)

12

7

11

1

4

8,750.60

6,328.98

13,234.39

2,951.70

7,498.33

8,466.73

5,580.10

13,234.39

2,951.70

7,498.33

100.0

100.0

100.0

100.0

100.0

2

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

End of May 2019
End of Nov. 2019

100.0

100.0

100.0

100.0

100.0

End of May 2020

100.0

100.0

100.0

100.0

100.0

End of Nov. 2020

100.0

100.0

100.0

100.0

100.0

End of May 2021

96.7

88.1

100.0

100.0

100.0

182

182

182

182

182

378,112

323,070

469,657(Not disclosed)

232,075

Rent revenue – real estate

360,826

323,070

469,337(Not disclosed)

232,075

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

Income(loss)
information

Other lease business revenue

17,286－320(Not disclosed)－

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

160,323

80,721

154,135(Not disclosed)

79,781

Consignment expenses

27,134

16,58031,830(Not disclosed)

10,547

Utilities expenses

14,3489,074

30,883(Not disclosed)

10,474

Taxes and dues

35,53023,70733,740(Not disclosed)

21,157

517

378

729

(Not disclosed)

367

Repair expenses

18,961

3,426

2,928

(Not disclosed)

3,336

Depreciation (C)58,782

27,51954,023(Not disclosed)

33,739Other lease business expenses

5,047

36

－

(Not disclosed)

158

217,788242,348

315,521(Not disclosed)

152,294

276,571

269,867

369,545

100,993

186,033

62,553

2,517

1,573

520

4,639

214,018

267,350

367,971

100,473

181,394

42.40

24.99

32.82

(Not disclosed)

34.38

70,63346,70567,093

19,334

41,980327,392

457,625

491,112

98,692

162,700

Non-life insurance expenses

Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 40 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
AoyamaShinsen Place(Note 3)

Daiwa
Shibuya Square

Daiwa
River Gate

Daiwa
Hatchobori
ekimaeAcquisition dateMar. 2015

Mar. 2015

May 2015

June 2015

Sept. 2015

Acquisition price (Millions of yen)

9,800

4,800

16,00028,0002,871

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

2.1

1.0

3.5

6.1

0.6

9,984

4,897

15,79827,4872,884

Estimated price at end of period(Millions of yen)

12,2006,800

22,20034,3003,290

Total number of tenants (Note 1)

7

1

12

92

9

4,426.10

2,811.35

8,566.73

32,055.85

2,622.42

4,426.10

2,811.35

8,566.73

26,752.13

2,622.42

100.0

100.0

100.0

99.7

100.0

2

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

End of May 2019
End of Nov. 2019

100.0

100.0

100.0

98.9

100.0

End of May 2020

100.0

100.0

100.0

99.4

100.0

End of Nov. 2020

85.9

100.0

100.0

96.4

100.0

End of May 2021

100.0

100.0

100.0

83.4

100.0

182

182

182

182

182

236,779(Not disclosed)

481,432

963,067

85,387

236,779(Not disclosed)

481,432

958,808

85,387

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

Income(loss)
information

Other lease business revenue－(Not disclosed)

－

4,259

－

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

61,410(Not disclosed)

94,165578,988

36,332

Consignment expenses

20,460(Not disclosed)

15,92882,156

8,945

Utilities expenses

4,554(Not disclosed)

16,10598,1594,645

Taxes and dues

15,295(Not disclosed)

26,930104,485

9,300

188

(Not disclosed)

458

2,056

156

Repair expenses

1,462(Not disclosed)

3,088

155,137

2,854

Depreciation (C)19,449(Not disclosed)

31,653

136,873

10,430－(Not disclosed)

－

120

－

175,369(Not disclosed)

387,266

384,078

49,054

194,818

125,393418,920

520,951

59,485

434

3,045

3,406

54,592

735

194,384

122,347

415,513466,359

58,75025.94(Not disclosed)

19.56

60.12

42.55

30,46917,18856,961200,111

18,352

175,290

178,610234,380

2,001,250

159,500

Non-life insurance expenses

Other lease business expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 41 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
Hatchobori
ekimae West

Daiwa
Nishi-Shinjuku

Kirin
Nihonbashi(Note 3)

Daiwa
HigashiNihonbashi

Daiwa
Daikanyama(Note 3)Acquisition date

Sept. 2015

Mar. 2016

May 2016

June 2016

June 2016

Acquisition price (Millions of yen)

1,647

13,710

8,180

6,370

2,280

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

0.4

3.0

1.8

1.4

0.5

1,702

13,919

8,312

6,261

2,360

Estimated price at end of period(Millions of yen)

1,970

17,400

8,360

7,150

3,620

Total number of tenants (Note 1)

9

7

1

5

1

1,734.68

6,967.61

5,630.17

5,015.88

1,642.83

1,734.68

6,967.61

5,630.17

5,015.88

1,642.83

100.0

100.0

100.0

100.0

100.0

2

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

End of May 2019
End of Nov. 2019

100.0

90.5

100.0

100.0

100.0

End of May 2020

100.0

100.0

100.0

100.0

100.0

End of Nov. 2020

95.8

100.0

100.0

100.0

100.0

End of May 2021

100.0

100.0

100.0

100.0

100.0

Number of days of asset management

182

182

182

182

182

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

48,923

407,699(Not disclosed)

177,395(Not disclosed)

48,923

407,699(Not disclosed)

177,395(Not disclosed)

Rent revenue – real estate

Income(loss)
information

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

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

22,596

91,289(Not disclosed)

60,185(Not disclosed)

Consignment expenses

5,417

16,965(Not disclosed)

10,394(Not disclosed)

Utilities expenses

2,263

12,668(Not disclosed)

7,751(Not disclosed)

Taxes and dues

4,265

39,294(Not disclosed)

11,696(Not disclosed)

81

372

(Not disclosed)

242(Not disclosed)

Repair expenses

5,718

1,398

(Not disclosed)

2,162(Not disclosed)

Depreciation (C)4,851

20,587(Not disclosed)

27,937(Not disclosed)－

3(Not disclosed)－(Not disclosed)

26,327

316,410(Not disclosed)

117,209(Not disclosed)

31,178336,997

161,495

145,146

56,221

2,542

1,540

1,552

789

770

28,635335,457

159,942

144,357

55,451

46.19

22.39

(Not disclosed)

33.93(Not disclosed)

8,457

77,39322,08823,14911,02991,420252,590

116,090

157,360

45,044Non-life insurance expenses

Other lease business expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 42 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
Shinjuku West

Daiwa
Kanda Mikuracho

Daiwa
Kanda East

Daiwa
Kandasudacho

Daiwa
Sasazuka Tower

Acquisition dateJuly 2016

Dec. 2016

Jan. 2018

June 2018 andNov. 2018

Oct. 2018

Acquisition price (Millions of yen)

942

1,592

4,200

2,295

15,500Investment ratio (%)
Price
information Carrying amount (Millions of yen)

0.2

0.3

0.9

0.5

3.4

985

1,612

4,217

2,370

15,922Estimated price at end of period(Millions of yen)

1,250

1,850

5,770

2,820

16,000Total number of tenants (Note 1)

9

7

5

7

7

1,118.74

1,719.51

3,980.56

2,211.64

16,158.16

1,118.74

1,719.51

3,980.56

2,211.64

16,158.16

100.0

100.0

100.0

100.0

100.0

2

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

End of May 2019
End of Nov. 2019

100.0

100.0

100.0

100.0

100.0

End of May 2020

100.0

100.0

100.0

100.0

100.0

End of Nov. 2020

100.0

100.0

100.0

97.6

100.0

End of May 2021

100.0

100.0

100.0

100.0

100.0

Number of days of asset management

182

182

182

182

182

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

38,596

51,184

144,126

67,561

389,554

38,594

51,184

144,126

67,561

389,554

Rent revenue – real estate

Income(loss)
information

Other lease business revenue

2

－

－

－

－

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

12,955

16,38048,84021,843

339,669

Consignment expenses

4,129

5,204

11,120

6,003

64,224

Utilities expenses

2,055

1,943

7,154

2,719

45,616

Taxes and dues

3,114

3,543

10,4374,610

55,538

49

66

179

84

935

Repair expenses

1,377

346

1,423

1,478

113,247

Depreciation (C)

2,228

5,276

18,525

6,945

60,106

－

－

－

－

－

25,64134,803

95,28545,71849,88527,86940,079113,81052,664

109,992

－

1,570

3,088

－

23,10827,86938,509110,72252,66486,883

33.57

32.00

33.89

32.33

87.19

6,254

6,943

20,507

8,949

109,343

79,33074,026

133,61176,730718,270

Non-life insurance expenses

Other lease business expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 43 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
Sasazuka

Daiwa
Harumi

Daiwa
Mita 2-Chome(Note 3)

Nihonbashi
Central Square

NihonbashiBakurocho 1Chome
Development Site
(land) (Note 5)

Acquisition date

Dec. 2018

Feb. 2019

July 2019

May 2020

Nov. 2020

Acquisition price (Millions of yen)

3,000

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

0.7

2.4

0.6

0.8

0.8

3,170

11,208

1,583

3,614

3,803

Estimated price at end of period(Millions of yen)

3,570

12,700

4,020

3,820

4,250

Total number of tenants (Note 1)

9

7

1

10

－

Leasable floor area (m )3,828.95

11,227.10

2,101.61

1,837.05－

Leased floor area (m2)

3,828.95

11,227.10

2,101.61

1,837.05－

2

11,200

2,635

3,521

3,775

Occupancy rate (%)
Leasing
information

Income(loss)
information

End of May 2019

96.0

47.3

－

－

－

End of Nov. 2019

92.7

100.0

100.0

－

－

End of May 2020

95.1

100.0

100.0

100.0

－

End of Nov. 2020

100.0

100.0

100.0

100.0

－

End of May 2021

100.0

100.0

100.0

100.0

－

Number of days of asset management

182

182

182

182

182

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

91,693

344,561(Not disclosed)

90,361－

Rent revenue – real estate

88,504

344,561(Not disclosed)

90,361－Other lease business revenue

3,189

－

(Not disclosed)－－

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

43,277151,074(Not disclosed)

19,497－

Consignment expenses

11,52041,741(Not disclosed)

6,030

－

Utilities expenses

8,004

17,833(Not disclosed)

3,850

－

Taxes and dues

9,283

27,349(Not disclosed)

11

－

171

532

(Not disclosed)

91－

Non-life insurance expenses
Repair expenses

1,741

7,407

(Not disclosed)

1,096

－

Depreciation (C)12,55635,782(Not disclosed)

8,416

－

－

20,426(Not disclosed)－－

48,416

193,486(Not disclosed)

70,864－60,973229,269

67,06579,280－11,183

10,162

1,623

298

－

49,789219,106

65,442

78,981

－

47.20

43.85

(Not disclosed)

21.58

－

17,82354,16017,836

11,438－129,490

253,020

5,360

134,280－

Other lease business expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 44 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionGreater Tokyo

Property name

Daiwa
HigashiIkebukuro

Daiwa
Shinagawa North

Daiwa
Kamiooka

Daiwa
Ogikubo Tower

Daiwa
Meguro Square

Acquisition date

Oct. 2005

July 2007

Mar. 2013

May 2014

May 2015

Acquisition price (Millions of yen)

2,958

7,710

2,000

15,2205,600

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

0.6

1.7

0.4

3.3

1.2

2,551

6,989

1,805

16,213

5,409

Estimated price at end of period(Millions of yen)

4,370

6,300

2,900

23,2007,280

Total number of tenants (Note 1)

9

13

9

9

16

4,462.28

6,546.03

2,630.30

17,778.14

3,519.50

4,462.28

6,235.34

2,630.30

16,747.26

3,519.50

100.0

100.0

100.0

99.6

100.0

2

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

End of May 2019
End of Nov. 2019

100.0

100.0

100.0

100.0

100.0

End of May 2020

100.0

100.0

100.0

100.0

100.0

End of Nov. 2020

100.0

100.0

100.0

100.0

100.0

End of May 2021

100.0

95.2

100.0

94.2

100.0

182

182

182

182

182

142,583

173,059

92,673682,124

171,425

142,583

172,10992,673

601,358

171,425

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

Income(loss)
information

Other lease business revenue

－

950

－

80,766－

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

55,872

97,43937,239292,981

56,634

Consignment expenses

11,142

27,454

5,488

59,282

9,464

Utilities expenses

9,426

8,741

5,736

47,295

6,884

Taxes and dues

8,535

18,8286,361

44,976

13,777

274

406

142

1,038

205

Repair expenses

1,459

5,215

1,365

8,924

2,657

Depreciation (C)25,03336,792

18,144

131,344

23,644

－

－

－

120

－

86,71175,62055,433389,143

114,790

111,744

112,41373,578520,487

138,435

7,195

2,292

907

16,463－

104,549

110,120

72,670504,023

138,435

39.19

56.30

40.18

42.95

33.04

16,58936,96912,676

87,07927,276294,300

441,710

63,700575,795

122,800

Non-life insurance expenses

Other lease business expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)－ 45 －

Daiwa Office Investment Corporation (8976) Financial Report for the 31st Fiscal Period

RegionMajor
Regional Cities

Greater Tokyo

Property name

Daiwa
Ogikubo

CONCURRED
Yokohama

Daiwa
Shinagawa
Gotenyama

Daiwa
Nakano-Sakaue

Daiwa
Kitahama

Acquisition dateJuly 2016

Jan. 2018

Sept. 2018

Dec. 2019

Aug. 2014

Acquisition price (Millions of yen)

3,800

38,100

2,500

2,750

9,481

Investment ratio (%)
Price
information Carrying amount (Millions of yen)

0.8

8.3

0.5

0.6

2.1

3,965

37,762

2,569

2,845

9,028

Estimated price at end of period(Millions of yen)

4,820

41,200

2,880

2,860

13,300Total number of tenants (Note 1)

11

37

7

6

7

3,849.63

28,052.98

2,396.96

2,869.13

13,517.62

3,849.63

27,787.39

2,396.96

2,869.13

13,517.62

100.0

98.7

100.0

－

86.9

End of Nov. 2019

100.0

100.0

100.0

－

100.0

End of May 2020

100.0

98.4

100.0

100.0

100.0

End of Nov. 2020

100.0

99.7

100.0

100.0

100.0

End of May 2021

100.0

99.0

100.0

100.0

100.0

182

182

182

182

182

128,395

1,070,469

82,42273,052401,299

128,395

1,067,619

80,02673,052401,2992

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

End of May 2019

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

Income(loss)
information

Other lease business revenue

－

2,850

2,395

－

－

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

35,889311,781

20,35530,668

154,993

Consignment expenses

9,493

56,867

4,889

8,792

27,199

Utilities expenses

4,555

65,693

3,068

4,818

30,399Taxes and dues

8,203

57,855

5,501

7,072

34,523

171

784

107

144

717

Repair expenses

2,308

14,657

1,036

1,199

5,087

Depreciation (C)11,156

115,923

5,751

8,632

56,970

－

－

－

8

96

92,506758,687

62,06742,384

246,306

103,663874,61167,81851,016303,276

3,990

34,533452

2,024

10,57999,673840,078

67,36648,992

292,696

27.95

29.13

24.70

41.98

38.62

16,327

115,596

11,012

13,874

68,918161,340

718,980

102,564

193,251

275,080

Non-life insurance expenses

Other lease business expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](Thousands of yen)
NOI (E) [(D) + (C)](Thousands of yen)
Capital expenditures (F)(Thousands of yen)
NCF [(E) – (F)](Thousands of yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
Reference
information etc. for fiscal 2021 (Thousands of yen)
Estimated long-term repair expenses(Thousands of yen) (Note 2)(Note 1) Total number of tenants is the number of end tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimated to arise
over the 12-year period from the first year to the twelfth year as stated in the building investigation diagnosis report.
(Note 3) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc. forthe property.
(Note 4) Daiwa Kyobashi was divested on December 23, 2020.
(Note 5) For Nihonbashi-Bakurocho 1-Chome Development Site (land), the plan is to develop an office building on theproperty.

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