This translation of the original Japanese Notice is provided solely for information purposes. Should there be
any discrepancy between this translation and the Japanese original, the latter shall prevail.

REIT Financial Report for the 25th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:

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

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

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

TEL: +81-3-6215-9649
August 17, 2018
August 10, 2018

Yes
Yes (for institutional investors and analysts)[Amounts are rounded down to the nearest million yen, except for per unit figures]

1. Status of Management and Assets for the 25th Fiscal Period
25th Fiscal Period: Fiscal period ended May 2018 (from December 1, 2017 to May 31, 2018)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
25thPeriod24th
PeriodOperating income

Ordinary income

Net income¥13,440 million

5.5%¥6,678 million

8.1%¥5,888 million

7.9%¥5,887 million

7.9%¥12,735 million

1.5%¥6,177 million

0.7%¥5,456 million

1.8%¥5,455 million

1.8%

Net income
per unit

Net income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue

25th¥11,882
2.3%
1.2%
Period24th¥10,957
2.1%
1.1%
Period(Note) Net income per unit is calculated using the following average number of investment units during the period:
25th Fiscal Period: 495,505 units; 24th Fiscal Period: 497,869 units

43.8%
42.8%

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

Total distribution
amount(excluding distribution
amount in excess ofearnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payoutDistribution
amount to
net assets

25th¥11,150¥5,484 million¥0¥– million
93.2%
2.2%
Period24th¥10,957¥5,455 million¥0¥– million
100.0%
2.1%
Period(Note) Distribution amount per unit for the 25th Fiscal Period is calculated by dividing the amount obtained by deducting
provision of reserve for reduction entry (¥403 million) from unappropriated retained earnings by the total number ofinvestment units issued and outstanding. The main difference between distribution amount per unit and net income
per unit is due to the calculation. As acquisition and cancellation of own investment units were carried out, dividend
payout for the 25th Fiscal Period is obtained by using the following calculation formula, rounded to one decimal
place.
Dividend payout = Total distribution amount (excluding distribution amount in excess of earnings) / Net income x
100

-1-

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

(3) Financial Position
25th
Period24th
PeriodUnitholders’ equity tototal assets

Net assets
per unit

Total assets

Net assets¥467,040 million¥253,676 million

54.3%¥515,730¥483,173 million¥256,796 million

53.1%¥515,790(4) Cash FlowsNet cashprovided by (used in)operating activities
25th
Period24th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥77,961 million(¥37,368 million)(¥24,480 million)¥32,070 million¥6,572 million(¥5,233 million)(¥5,358 million)¥15,958 million

2. Management Status Forecasts for the 26th Fiscal Period and 27th Fiscal Period
26th Fiscal Period: Fiscal period ending November 2018 (from June 1, 2018 to November 30, 2018)
27th Fiscal Period: Fiscal period ending May 2019 (from December 1, 2018 to May 31, 2019)[% figures show the period-over-period increase (decrease)]

Operating revenue
26thPeriod27th
PeriodOperating income

Ordinary income¥13,029 million(3.1%) ¥6,459 million(3.3%)¥5,830 million(1.0%)¥5,828 million(1.0%)¥12,964 million(0.5%) ¥6,531 million

1.1¥5,904 million

1.3%¥5,902 million

1.3%

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

26th
Period27th
PeriodNet income

Distribution amount in excess of earnings per unit

¥11,850¥0¥12,000¥0(Reference) Estimated net income per unit for the 26th Fiscal Period: ¥11,850; 27th Fiscal Period: ¥12,000

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):
25th Fiscal Period: 491,877 units
24th Fiscal Period: 497,869 units(ii) Total number of treasury units at end of period:
25th Fiscal Period:– units
24th Fiscal Period:– units(Note) Please refer to “Notes to Per Unit Information” on page 30 for the number of investment units used as the basis for calculating the net
income per unit.
* Presentation of the status of implementation of audit proceduresThis financial report (kessan tanshin) is exempt from the audit procedures pursuant to the Financial Instruments and Exchange Act (Act No. 25 of
1948; including amendments thereto) (hereinafter referred to as the “Financial Instruments and Exchange Act”) and, at the time of disclosure ofthis financial report (kessan tanshin), the audit procedures pursuant to the Financial Instruments and Exchange Act have not been completed.
* Explanation of the appropriate use of the management status forecasts, and other matters of special note
The forecast figures are forward-looking statements based on information currently available to Daiwa Office Investment Corporation and involve
uncertainties. Accordingly, the actual operating revenue, operating income, ordinary income, net income and distribution amount per unit mayvary due to changes in the status. In addition, the forecast is not a guarantee of the distribution amount. For details on the assumptions underlying
the forecast figures above, please refer to “Assumptions for the Management Status Forecasts for the 26th Fiscal Period and 27th Fiscal Period” onpage 11.

-2-

○ Table of Contents
1. Affiliated Juridical Persons of the Investment Corporation ................................................................................... 4
2. Management Policy and Management Status......................................................................................................... 4
2.1. Management Policy ......................................................................................................................................... 4
2.2. Management Status.......................................................................................................................................... 4
2.2.1. Overview of the Fiscal Period under Review ............................................................................................ 4
2.2.2. Outlook for the Next Fiscal Period ............................................................................................................ 7
2.3. Investment Risks............................................................................................................................................ 12
3. Financial Statements ............................................................................................................................................ 13
3.1. Balance Sheets ............................................................................................................................................... 13
3.2. Statements of Income .................................................................................................................................... 15
3.3. Statements of Unitholders’ Equity ................................................................................................................. 16
3.4. Statements of Cash Distributions................................................................................................................... 18
3.5. Statements of Cash Flows .............................................................................................................................. 19
3.6. Notes to the Going Concern .......................................................................................................................... 20
3.7. Notes to Significant Accounting Policies ...................................................................................................... 20
3.8. Notes to Financial Statements ....................................................................................................................... 22
3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding................................................ 31
4. Changes in Directors ............................................................................................................................................ 32
4.1. Changes in Directors at the Investment Corporation ..................................................................................... 32
4.2. Changes in Directors at the Asset Manager .................................................................................................... 33
5. Reference Information.......................................................................................................................................... 37
5.1. Investment Status ........................................................................................................................................... 37
5.2. Investment Real Estate Properties (As of May 31, 2018) ............................................................................... 38
5.2.1. Price and Investment Ratio of Investment Real Estate Properties ........................................................... 38
5.2.2. Summary of Building and Leasing of Investment Real Estate ................................................................ 40
5.2.3. Capital Expenditures for Assets under Management .............................................................................. 43
5.2.4. Summary of Estimated Price at End of Period (As of May 31, 2018) .................................................... 44
5.2.5. Status of Income (Loss), etc. of Individual Properties ............................................................................ 46-3-

1. Affiliated Juridical Persons of the Investment Corporation
With regard to silent partnership equity in Godo kaisha Yokohama Office Management owned by the Investment
Corporation which was described in the “Structure of the Investment Corporation” “(3) Structure of silent partnership in
which the Investment Corporation invests” set out in the most recent periodic securities report (yuka shoken hokokusho)(submitted on February 21, 2018), the investment has been terminated as the company was dissolved due to closure ofbusiness on April 30, 2018.
Disclosure is omitted for other parts because no significant changes have been made.

2. Management Policy and Management Status
2.1. Management Policy
Disclosure is omitted because there are no significant changes from the “Investment Policy,” “Investment Target” and“Distribution Policy” set out in the most recent periodic securities report (yuka shoken hokokusho) (submitted on
February 21, 2018) as of date of this document.
The Investment Corporation plans to submit a proposal for partial amendments to the Articles of Incorporation,
including the “Targets and Policy of Asset Management,” for discussion at the 10th General Meeting of Unitholders
scheduled to be held on August 20, 2018.
[Targets and Policy of Asset Management]
As a result of the revision to Regulation for Real Estate Investment Trusts and Real Estate Investment Corporations(the “Association’s Regulation”) of The Investment Trusts Association, Japan, shares and contribution of certain
Foreign Real Estate Holding Corporations were added to real estate, etc. (as defined in the Article 3, Paragraph 2 of
the Association’s Regulation). Accordingly, amendments will be made to add the shares or contribution of the Foreign
Real Estate Holding Corporations to real estate, etc. stipulated in the Articles of Incorporation of the Investment
Corporation.
[Asset Management Fees to the Asset Manager]
In order to focus on management results and shift to an asset management fee system that improves the incentive forraising distributable amount, amendments will be made to link Management Fee I (based on assets under management),
which was linked to the Investment Corporation’s cumulative acquisition price, to the total appraisal value of asset
under management and to lower the fee rate from 0.1% to 0.05%, while at the same time raising the fee rate ofManagement Fee III (based on distributable amount), which is linked to distributable amount, from 2.0% to 3.5%.
These changes to the Articles of Incorporation shall take effect on December 1, 2018, which is the first day of the 27th
Fiscal Period of the Investment Corporation.
For details of proposals regarding partial amendments to the Articles of Incorporation, please refer to the press
release “Notice concerning Amendments to Articles of Incorporation and Appointment of Directors, Etc.” dated July18, 2018.
2.2. Management Status
2.2.1. Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Investment Corporation was established on July 11, 2005 in accordance with the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate AssetManagement Co., Ltd. (former name K.K. daVinci Select) (the “Asset Manager”) as the organizer. After its
establishment, the Investment Corporation implemented an additional issuance of investment units through a public
offering (99,600 units) on October 18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE) Real Estate
Investment Trust Section (stock code: 8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price), subsequent
activities, such as additional acquisition of properties and replacement of portfolio properties, resulted in the assets
under management amounting to 439,441 million yen as of the last day of May 2018.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets basedon a clear portfolio development policy of specializing in investment in office buildings, with a particular focus on
investment in a total floor area of more than about 2,000 m2 situated in downtown Tokyo, as well as throughdedicated efforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment (from December 2017 to May 2018)
The Japanese economy during the fiscal period under review saw real GDP growth rate (Second Preliminary
Estimates) for January to March 2018 at an annual rate of -0.6%, indicating a temporary standstill in the recovery
trend that had continued for eight consecutive quarters under the ongoing quantitative/qualitative monetary easing
policy by the Bank of Japan.
In the office building leasing market in central Tokyo, with new supply having settled down, the vacancy rate
took a turn after peaking in June 2013, dropping to 2.68% at the end of May 2018. Led by improvement in thevacancy rate for existing large buildings, the overall vacancy rate that includes small- to medium-sized buildings
also continues to be on an improving trend. The drop in the vacancy rate has led to an increase in office rent in someareas, and the market as a whole continues to see increase in rent, albeit slight.

-4-For the office building transaction market, a strong appetite for property acquisitions continued among real estatecompanies, funds (including J-REITs) and overseas investors with the continuing proactive lending attitude byfinancial institutions.
b. Management Performance
In view of increasing the ordinary EPS (EPS (net income per unit) after deducting gain on sale from properties) overthe medium to long term, the Investment Corporation continued to work on “external growth,” which aims to boost
revenue through acquisition of properties, and “internal growth,” which aims to maximize income generating from
owned properties.
Concerning external growth, the Investment Corporation acquired “CONCURRED Yokohama” (acquisition
price: 38,100 million yen) and “Daiwa Kanda East” (Note) (acquisition price: 4,200 million yen). Furthermore, theInvestment Corporation divested “Daiwa Meieki Building” in December 2017, and three-sevenths out of
six-sevenths of co-ownership interest in “Shinjuku Maynds Tower” in February 2018. As a result, the Investment
Corporation’s assets under management as of the end of the 25th Fiscal Period (May 31, 2018) totaled 55 properties,
the sum total of acquisition prices of which amounted to 439,441 million yen.
Concerning internal growth, while the office leasing market remained strong, the Investment Corporation
conducted proactive leasing, such as capturing needs for floor expansion within the same property throughstrengthening relationships with existing tenants and reinforcing collaboration with leasing brokers and property
managers. Consequently, the occupancy rate as of the end of the 25th Fiscal Period (May 31, 2018) was 99.0%.
(Note) The name of Nippon Manpower Building was changed to Daiwa Kanda East on July 1, 2018. The same
applies hereinafter in this document.
C. Overview of Capital Procurementa. Procurement of Capital for Repayment of Borrowings
In the 25th Fiscal Period, the Investment Corporation made the following borrowings to fund the acquisition of new
properties and the repayment of borrowings.
・ The Investment Corporation took out loans of 39,000 million yen in total from Sumitomo Mitsui Banking
Corporation, Sumitomo Mitsui Trust Bank, Ltd., Mizuho Bank, Ltd. and MUFG Bank, Ltd. on January 11, 2018
to fund the acquisition of a new property (CONCURRED Yokohama) acquired on the same day.
・The Investment Corporation took out loans of 5,000 million yen in total from Sumitomo Mitsui Trust Bank, Ltd.
on February 28, 2018 to fund the repayment of loans of 6,850 million yen borrowed from Sumitomo Mitsui
Trust Bank, Ltd., ORIX Bank Corporation and The Higashi-Nippon Bank, Limited which were due forrepayment on the same day; and used cash on hand to repay the remaining amount.
・The Investment Corporation took out loans of 1,000 million yen in total from The Musashino Bank, Ltd. and The
Gunma Bank, Ltd. on May 31, 2018 to fund the repayment of loans of 1,000 million yen in total borrowed fromthe same banks which were due for repayment on the same day.
The Investment Corporation executed early repayment of loans of 41,000 million yen in total borrowed from
Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Ltd., Mizuho Bank, Ltd. and MUFG Bank,
Ltd. on March 30, 2018.
In addition, The Investment Corporation executed early repayment of loans of 11,500 million yen in totalborrowed from Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Ltd. and Mizuho Trust & Banking Co., Ltd. on April 27, 2018.
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 25th Fiscal Period(May 31, 2018) stood at 188,950 million yen in total (long-term loans payable: 183,850 million yen; investment
corporation bonds: 5,100 million yen). The balance of the current portion of long-term loans payable stood at
15,500 million yen.
The average remaining period of interest-bearing liabilities as of the end of the 25th Fiscal Period stands at 4.2
years.
List of Borrowings in the 25th Fiscal Period
Loan amount(million yen)
12,000
9,000
9,000
9,000
5,000
500
500

LenderSumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.
The Gunma Bank, Ltd.
The Musashino Bank, Ltd.

-5-

Drawdown
date
2018/1/11
2018/1/11
2018/1/11
2018/1/11
2018/2/28
2018/5/31
2018/5/31

Repayment
date
2018/5/31
2018/5/31
2018/5/31
2018/5/31
2026/2/27
2025/5/30
2026/5/29

Loanperiod
0.4 year
0.4 year
0.4 year
0.4 year
8.0 years
7.0 years
8.0 years

Balance of Borrowings from Each Financial Institution (as of May 31, 2018)
End of the 25th Fiscal Period
Lender(million yen)
Sumitomo Mitsui Banking Corporation
36,400Sumitomo Mitsui Trust Bank, Limited
22,500Development Bank of Japan Inc.
21,750MUFG Bank, Ltd.
20,500Mizuho Bank, Ltd.
18,400Shinsei Bank, Ltd.
14,000Resona Bank, Ltd.
12,500
The Bank of Fukuoka, Ltd.
5,500
Mizuho Trust and Banking Co., Ltd.
5,500
Kansai Urban Banking Corporation
5,000
Aozora Bank, Ltd.
3,000
The Nishi-Nippon City Bank Limited
3,000
The Gunma Bank, Ltd.
2,500
The 77 Bank, Ltd.
2,000
The Musashino Bank, Ltd.
2,000
Tokio Marine & Nichido Fire Insurance Co., Ltd.
2,000
The Yamaguchi Bank, Ltd.
2,000
ORIX Bank Corporation
1,500
Nippon Life Insurance Company
1,300
The Kagawa Bank, Ltd.
1,000
The Higashi-Nippon Bank, Limited
1,000
Taiyo Life Insurance Company
300
Fukoku Mutual Life Insurance Company
200
Total
183,850(Note) Share is rounded to two decimal places.

Share (%)
(Note)
19.80
12.24
11.83
11.15
10.01
7.61
6.80
2.99
2.99
2.72
1.63
1.63
1.36
1.09
1.09
1.09
1.09
0.82
0.71
0.54
0.54
0.16
0.11
100.00c. Rating Information (as of May 31, 2018)
Credit rating agency
R&I
Japan Credit Rating Agency

RatingA+
AA-

Outlook
StablePositive

D. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance for the
25th Fiscal Period of 13,440 million yen in operating revenue, 6,678 million yen in operating income, 5,888 million
yen in ordinary income and 5,887 million yen in net income.
Concerning distributions, it is planned that the amount equivalent to distributions from earnings would be
included in the amount of tax-deductible expenses based on application of special provisions for taxation of
corporation tax (Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957; including
amendments thereto) (the “Special Taxation Measures Act”)). On that basis, the Investment Corporation decided to
distribute almost the entire amount (excluding fractions of the distribution amount per unit that are less than 1 yen )remaining after reserving part of unappropriated retained earnings as reduction entry and deducting provision ofreserve for reduction entry from unappropriated retained earnings, through application of “Special Provisions on
Taxation in the case of advance acquisition of land and such in 2009 and 2010” (Article 66-2 of the Special
Taxation Measures Act). Accordingly, the Investment Corporation declared a distribution amount per unit of 11,150
yen.
In the fiscal period under review, 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
and then cancelled all of the units. Such was executed for the enhancement of capital efficiency and return of profits
to unitholders, after comprehensively taking into consideration the level of investment unit price, status of cash on
hand, financial condition, market environment, etc. The total number of investment units acquired/cancelled during
the fiscal period under review was 5,992 (1.2% of the total number of investment units issued and outstanding
before the acquisition/cancellation), and the total acquisition price was 3,675,523,000 yen. As a result of theacquisition/cancellation of own investment units, a distribution amount per unit increased by 134 yen.

-6-

2.2.2. Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy going forward was expected to continue to expand backed by solid trends in personal spending
against the backdrop of a favorable employment environment and the improved income environment while themonetary easing policy implemented by Bank of Japan continued. However, the pace of growth is expected to stall
temporarily due to factors which will slow export, such as the ending of inventory accumulation in Japan and the U.S.
and ECB’s announcement of plans to scale down quantitative easing. In addition, factors such as policies set out by the
U.S. President Donald Trump, the downward swing of the Chinese economy, deterioration of European economy, riseof crude oil price, stricter overtime work regulations and consumption tax hike scheduled for October 2019 pose
potential risks of disrupting the Japanese real economy and financial environment, and are thus thought to require
attention.
In the Tokyo office building leasing market, factors such as improvement in employment are stimulating demand,
resulting in the vacancy rate dropping. Improvement in corporate performance is forecasted to increase demand for
office floor space and rent is expected to continue rising moderately as a consequence. In the office building
transaction market, backed by the favorable financing environment, among other factors, the property acquisition
appetite among investors overseas, real estate companies and funds (including J-REITs) is thought to remain strong.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
While office leasing market conditions remain strong, large-scale relocations to new buildings for consolidation,etc. have become noticeable. Therefore, the Investment Corporation intends to improve its skill in building
management by constantly attempting to grasp the latest tenant needs and market conditions, regularly reviewing
management systems and such in order to be able to promptly respond when secondary or tertiary vacancies, etc.
arise. Consequently, the Investment Corporation will carry out operational management under the following policy
with an aim to enhance the competitiveness of existing properties and thereby increase the long-term EPS over the
medium to long term.
(i)

Maintain and raise occupancy rates
Concerning existing tenants, strive to reduce cancellation risks by improving the quality of buildings,
equipment and management system. In addition, concerning new tenants, strive to maintain and raiseoccupancy rates through the provision of highly satisfactory services from gaining deeper understanding of
tenant needs through proactive participation in the market.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium to long term through further strengthening good relationships
with existing tenants, as well as proactively tapping the needs of new tenants by discerning the market
environment.
(iii) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of high tenantsatisfaction levels by implementing efficient operational management and reviewing systematic construction
work by optimally leveraging the economies of scale achieved from proactively realizing external growth.
b. Strategy for New Property Investments
The Investment Corporation will invest in office buildings that have a total floor area of about 2,000 m2 or more
based on various external growth strategies, while maintaining a balance with the asset acquisition environment
and financing situation. In principle, considerations will focus on Tokyo as the investment target area, but theInvestment Corporation will also consider investing in competitive properties in cities other than Tokyo from aviewpoint of territorially-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 realestate transaction market information through greater collaboration with the Asset Manager and Sponsor Groupand utilizing the Group’s extensive network of clients, partners, etc.
Furthermore, in the 25th Fiscal Period, the Investment Corporation acquired “CONCURRED Yokohama”
located in Yokohama City, Kanagawa Prefecture and “Daiwa Kanda East” located in Tokyo. The Investment
Corporation believes that acquisition of these properties will contribute to further stabilization and enhancement of
the portfolio. The Investment Corporation will continue to strive to acquire properties in line with the investment
strategy described above.
c. Financial Strategy
The Investment Corporation will conduct disciplined financial management of the following basic content.
(i) Control leverage by keeping the ratio of interest-bearing liabilities to total assets (LTV) within the range of
40% to 50% at maximum, taking into consideration also the LTV, etc. based on appraisal value, as aprinciple.
(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.

-7-

(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.

-8-

C. Significant Subsequent Eventsa. The Investment Corporation acquired trust beneficial interest in real estate on July 7, 2018 as follows.
Summary of Asset Acquired
Property namePrime Kanda Building

Type of asset

Trust beneficial interest in domestic real estate (Note 1)

Location

2-8-2 Kanda Suda-cho, Chiyoda-ku, Tokyo

Acquisition Price

1,800 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

May 23, 2018

Date of delivery

June 7, 2018

SellerNot disclosed (Note 2)(Note 1)
(Note 2)

The asset is a trust beneficial interest with compartmentalized ownership of the B1 floor, part of thefirst floor and floors 4 to 10 as primary asset in trust.
The seller is a domestic special purpose company, which has not agreed to disclose its name.

b. The Investment Corporation decided on June 18, 2018 to acquire trust beneficial interest in real estate as follows
Summary of Asset Acquired
Property nameKita-Shinagawa Gotenyama Building)Type of asset

Trust beneficial interest in domestic real estate

Location

3-3-5 Kita-Shinagawa, Shinagawa-ku, Tokyo

Acquisition Price

2,500 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

June 18, 2018

Date of delivery

September 13, 2018 (Planned)

SellerDanke Holdings Co., Ltd.

-9-

D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 26th Fiscal Period (fiscal period
ending November 2018 (from June 1, 2018 to November 30, 2018)). For the assumptions underlying themanagement status forecasts, please refer to the “Assumptions for the Management Status Forecasts for the 26th
Fiscal Period and 27th Fiscal Period” on page 11.
26th Fiscal Period (fiscal period ending November 2018 (from June 1, 2018 to November 30, 2018))
Operating revenue
13,029 million yen
Operating income
6,459 million yen
Ordinary income
5,830 million yen
Net income
5,828 million yen
Distribution amount per unit
11,850 yen
Distribution amount in excess of earnings per unit
0 yen
In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 26th Fiscal Period and27th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status
for the 27th Fiscal Period (fiscal period ending May 2019 (from December 1, 2018 to May 31, 2019)).
27th Fiscal Period (fiscal period ending May 2019 (from December 1, 2018 to May 31, 2019))
Operating revenue
12,964 million yen
Operating income
6,531 million yen
Ordinary income
5,904 million yen
Net income
5,902 million yen
Distribution amount per unit
12,000 yen
Distribution amount in excess of earnings per unit
0 yen
(Note) The forecast figures above are the current forecasts calculated based on certain assumptions. Accordingly,
the actual operating revenue, operating income, ordinary income, net income, distribution amount per unit
and distribution amount in excess of earnings per unit may vary due to changes in the status. Moreover, theforecasts set forth herein should not be construed as a guarantee of distribution amounts.

- 10 -

Assumptions for the Management Status Forecasts for the 26th Fiscal Period and 27th Fiscal Period
Item
Assumptions
 26th Fiscal Period: Assets under management are assumed to be the 55 properties owned as of
May 31, 2018, plus the 1 property (Prime Kanda Building) acquired in June 2018 and 1 property(Kita-Shinagawa Gotenyama Building) to be acquired in September 2018, to total 57 properties.
Assets undermanagement
 27th Fiscal Period: Assets under management are assumed to be the above 57 properties.
 The actual number of properties may vary due to changes in the assets under management otherthan above.
 Rent revenue from existing properties is calculated based on historical data and taking into
Operatingaccount variable factors.
revenue It is assumed that there is no gain (loss) on sales of real estate properties.
 Expenses related to rent business, which constitute a major component of operating expenses, arecalculated based on historical data and taking into account variable factors.
 Repair expenses for buildings are recorded as expenses in the amount expected to be necessary
in 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 7,769
million yen in the 26th Fiscal Period and 7,841 million yen in the 27th Fiscal Period.
 Consignment expenses are expected to be 886 million yen in the 26th Fiscal Period and 889
million yen in the 27th Fiscal Period.
 Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 1,045 million yen
in the 26th Fiscal Period and 1,030 million yen in the 27th Fiscal Period.
While, in general, fixed property tax, city planning tax, etc. in the transaction of real estate, etc.
Operatingare calculated on a pro rata basis and reimbursed at the time of acquisition with the current
expenses
owner, but for the Investment Corporation, the amount equivalent to the reimbursement isincluded in the cost of acquisition and thus it is not recognized as expenses in the period ofacquisition of properties. As such, fixed property tax, city planning tax, etc. for properties
acquired in 2018 will be recorded as expenses starting from the fiscal 2019.
 Depreciation is expected to be 1,708 million yen in the 26th Fiscal Period and 1,745 million yen
in the 27th Fiscal Period.
 Asset Management Fees are expected to be 1,056 million yen in the 26th Fiscal Period and 1,054
million yen in the 27th Fiscal Period. For the 27th Fiscal Period, the amount is calculated basedon the amended fee rate stated in “2. Management Policy and Management Status 2.1.
Management Policy [Asset Management Fees to the Asset Manager] on page 4, assuming theamendments to the Articles of Incorporation be approved (The total appraisal value of asset
under management to be multiplied by Management Fee I is the estimated value as of the end of
the 25th Fiscal Period.) .
 Non-operating expenses in the 26th Fiscal Period are expected to be 628 million yen, of which
the interest expenses, interest expenses on investment corporation bonds, and borrowing related
Non-operating
expenses are expected to be 624 million yen.
expenses Non-operating expenses in the 27th Fiscal Period are expected to be 626 million yen, of which
the interest expenses, interest expenses on investment corporation bonds, and borrowing related
expenses are expected to be 621 million yen.
 The total amount of interest-bearing liabilities is assumed to be 187,950 million yen at the end of
the 26th Fiscal Period and 187,950 million yen at the end of the 27th Fiscal Period
 In the 26th Fiscal Period, it is assumed that the entire amount of borrowings due for repayment
on July 31, 2018 (1,000 million yen) will be refinanced. As to the borrowings due for repayment
Interest-bearing
on August 31, 2018 (4,500 million yen), it is assumed that 1,000 million yen will be repaid asliabilities
scheduled and the remaining 3,500 million yen will be refinanced.
 In the 27th Fiscal Period, it is assumed that the entire amount of borrowings due for repayment
on February 28, 2019 (2,500 million yen), March 29, 2019 (6,000 million yen) and May 31,
2019 (1,500 million yen) will be refinanced.
 The total number of investment units issued and outstanding is assumed to be 491,877 units as of
Total number of
May 31, 2018.
investment units
issued and It is assumed that there are no changes to the number of investment units other than stated above
outstanding
until the end of the 27th Fiscal Period through the issuance of new investment units, etc.
 The distribution amount per unit is calculated based on the cash distribution policy as set out inthe articles of incorporation of the Investment Corporation.
Distribution amount The distribution amount per unit may vary depending on a variety of factors, such as changes in
per unit
the assets under management, changes in the rent revenue due to tenant changes and othercauses, and incurrence of unforeseen repairs.

- 11 -

Item
Distribution amountin excess of earnings
per unit
Other

Assumptions
 At present, there is no plan to make any distribution in excess of earnings (distribution amount inexcess of earnings per unit).
 It is assumed that there are no changes to laws and ordinances, the tax system, accounting
standards, listing regulations, the rules of Tokyo Stock Exchange, Inc. and The Investment
Trusts Association, Japan, etc. that will affect the abovementioned forecast figures.
 It is assumed that there will be no major unforeseen changes in general economic trends, realestate market conditions, etc.

2.3. Investment Risks
The following content will be added as “(b) Risk that asset to be acquired cannot be incorporated into the portfolio” to“Part I: Fund Information; Section 1: Fund Status; 3. Investment Risks; 3.1. Risk Factors; 3.1.6. Other” set out in themost recent periodic securities report (yuka shoken hokokusho) (submitted on February 21, 2018).
(b) Risk that asset to be acquired cannot be incorporated into the portfolio
The Investment Corporation has concluded a purchase agreement for trust beneficial interest in Kita-Shinagawa
Gotenyama Building and future acquisition is scheduled.
However, the Investment Corporation may not be able to acquire the property above as scheduled because of
failure to fulfill certain terms and conditions provided in the agreement or because of cancellation of the agreement
due to such factors as significant changes in the market environment, financing environment, etc. or individual
circumstances of the seller or the Investment Corporation during the period from the date of this document to asset
acquisition. In such case, the Investment Corporation may not be able to generate the projected operating revenue
and, as a result, the distribution amount per unit may fall below the projected amount.
In addition, “Part I: Fund Information; Section 1: Fund Status; 3. Investment Risks; 3.1. Risk Factors; 3.1.4. Risks
concerning Real Estate and Beneficial Interest in Trust; (xxii) Risk concerning forward commitments” set out in theabovementioned periodic securities report (yuka shoken hokokusho) will be amended as follows (amendments areunderlined)(xxii) Risk concerning forward commitments
The Investment Corporation may use forward commitments (forward commitments is defined as “a sale andpurchase agreement binding for forward and future transactions, with respect to which the settlement and delivery
take place one or more months after the signing of the agreement”) to acquire real estate or trust beneficial interest
that have real estate as assets in trust. When the purchase agreement is cancelled due to the buyer’s circumstances,the buyer will be liable for damages due to default in obligations. Moreover, regardless of proof of the amount ofdamages, etc., there may be an agreement made to the effect that a penalty that is a certain percentage of thepurchasing price of the real estate or trust beneficial interest that have real estate as assets in trust shall apply. In theevent of forward commitments, there is a certain period of time from the signing of the agreement to the settlementand delivery. In cases where the Investment Corporation fails to procure funds for the real estate acquisition due tosuch factors as changes in the market environment or other cases leading to the need to cancel the purchaseagreement during that period, there is a possibility that the financial condition of the Investment Corporation will
deteriorate due to payment of the penalty, etc.
The Investment Corporation has concluded a purchase agreement for trust beneficial interest in Kita-Shinagawa
Gotenyama Building and future acquisition is scheduled. This purchase agreement falls under the category of theforward commitments above. If there is a violation of any of the provisions of the purchase agreement with the sellerof the property by either the Investment Corporation or the seller, the other party can cancel the purchase agreementand demand an amount equivalent to 10% of the purchasing price as a penalty.

- 12 -

3. Financial Statements
3.1. Balance Sheets

24th Fiscal Period[As of Nov. 2017]
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Income taxes receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets*1

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

28,687,859
3,383,052
180,947
16,267
338,534
5,348
36,81732,648,828

3,253,750
ሺ2,064,500)
1,189,250
14,344
ሺ5,220)
9,124
23,975
ሺ11,726)
12,24912,302,226
3,619
105,126,884
ሺ23,767,949)
81,358,934
970,959
ሺ222,278)
748,681998,774
ሺ475,578)
523,196257,137
ሺ125,831)
131,306
360,772,887
1,519,315
458,570,791

3,260,320
ሺ2,148,056)
1,112,264
14,344
ሺ5,691)
8,652
19,917
ሺ8,805)
11,111
12,302,226
3,687
100,613,702
ሺ20,611,255)
80,002,446
722,262ሺ159,378)
562,883
765,971ሺ378,845)
387,125
228,474
ሺ117,569)
110,904
335,174,786
821,310
430,497,400433
2,398,275
306,884
28,1992,733,792- 13 -(Unit: thousand yen)
25th Fiscal Period[As of May 31, 2018]*1378
2,398,275
306,884
24,6792,730,218

24th Fiscal Period[As of Nov. 2017]
Investments and other assets
Investment securities
Lease and guarantee deposits in trust
Long-term prepaid expenses
Deferred tax assets
Derivatives
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
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

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

113,684
903,806
35,14583,26810,0201,145,925
434,373,544

20,58920,589483,173,437

17,651
17,651
467,040,024

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

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

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

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

251,551,759
251,551,759*3- 14 -(Unit: thousand yen)
25th Fiscal Period[As of May 31, 2018]*2

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

164,162
164,1625,455,377
5,619,540
257,171,299

164,162
164,162
5,887,688
6,051,850
253,928,086(375,211)(375,211)
256,796,087
483,173,437

ሺ251,915)
ሺ251,915)
253,676,171
467,040,024*3

3.2. Statements of Income

24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]
Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sales of real estate properties
Dividend income
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Miscellaneous income
Insurance income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Loss on fire
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 15 -(Unit: thousand yen)
25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]*1*1

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

*1
*1
*2

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

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

5,410,175
1,064,807
24,79676,50019,7387,200
158,669
6,761,887
6,678,741

91
479
1,589
2,160

9
697
137,418898
139,024

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

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

3.3. Statements of Unitholders’ Equity
24th Fiscal Period (from June 1, 2017 to November 30, 2017)(Unit: thousand yen)
Unitholders’ equity
Surplus

Voluntary retained earnings
Unitholders’capital

Total unitholders’equityUnappropriatedretained earnings(undisposed loss)

Total Surplus

5,359,285

5,523,447

257,075,206

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

Net income

5,455,154

5,455,154

5,455,154

Balance at beginning of current
fiscal period

251,551,759

Reserve for
reduction entry

Total voluntary
retained earnings

164,162

164,162

Changes of items during theperiodNet changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period－－－96,092

96,092

96,092

251,551,759

164,162

164,1625,455,377

5,619,540

257,171,299

Total valuation and translation
adjustments

Balance at beginning of current
fiscal period

Deferred gains orlosses on hedges

Total valuationand translation
adjustments

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

256,560,625

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

Net income

5,455,154

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

139,369

139,369

139,369

139,369

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

256,796,087- 16 -

25th Fiscal Period (from December 1, 2017 to May 31, 2018)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital
Unitholders’capitalBalance at beginning of current
fiscal period

Deduction fromunitholders' capital－

251,551,759

Surplus
Unitholders'
capital, net

251,551,759

Reserve for
reduction entry

Total voluntary
retained earnings

Unappropriatedretained earnings(undisposed
loss)

164,162

164,1625,455,377

5,619,540

ሺ5,455,150)

ሺ5,455,150)

5,887,460

5,887,460

Voluntary retained earnings

Total Surplus

Changes of items during theperiodDividends from surplus
Net income
Acquisition of own
investment units
Cancellation of own

ሺ3,675,523)

ሺ3,675,523)－

ሺ3,675,523)

ሺ3,675,523)－－

432,310432,310

251,551,759

ሺ3,675,523)

247,876,236

164,162

164,162

5,887,688

6,051,850

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

Unitholders’ equity

Own investment
units
Balance at beginning of current
fiscal period－

Total unitholders’ Deferred gains orequitylosses on hedges

Total valuationand translation
adjustments

Total net assets

ሺ375,211)

ሺ375,211)

256,796,087

257,171,299

Changes of items during theperiodሺ5,455,150)

ሺ5,455,150)

5,887,460

5,887,460

ሺ3,675,523)

ሺ3,675,523)

ሺ3,675,523)

3,675,523－－

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

123,296

123,296－

ሺ3,243,213)

123,296

123,296

ሺ3,119,917)－

253,928,086

ሺ251,915)

ሺ251,915)

253,676,171- 17 -

3.4. Statements of Cash Distributions

Item
I.
II.

Unappropriated retained earnings
Distribution amount[Distribution amount per unit]
III. Voluntary retained earnings
Provision of reserve for reduction entry
IV. Retained earnings carried forward
Method for calculating distribution amount24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]
Amount (yen)5,455,377,793
5,455,150,633(10,957)
227,160
Pursuant to the policy that “theInvestment
Corporation
shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(497,869 units) in an amount that is
not in excess of unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 5,455,150,633
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

- 18 -

25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]
Amount (yen)5,887,688,126
5,484,428,550(11,150)
403,259,576
Pursuant to the policy that “theInvestment
Corporation
shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(491,877 units) in an amount that is
not in excess of the remaining amountobtained after deducting provision ofreserve for reduction entry defined in
Article 66-2 of the Special Taxation
Measures Act from unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 5,484,428,550
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

3.5. Statements of Cash Flows

24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Interest income
Interest expenses(Increase) Decrease in operating accounts receivable
Decrease (increase) in accounts receivable - other(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Decrease from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Purchase of investment securities
Proceeds from withdrawal of investment securities
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
Repayments of tenant security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of own investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 19 -*1(Unit: thousand yen)
25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]

5,456,041
1,772,415
2,954
ሺ91)
564,727
ሺ77,107)－27,453
ሺ286,501)
ሺ543)
ሺ79,493)
5,631
68,370－ሺ316,146)
7,137,710
91(564,819)(956)
6,572,025

5,888,241
1,775,614
2,938(9)
558,975
41,314
ሺ2,214)
5,857
ሺ27,529)
8,045
39,40327,551
99,01369,827,449
293,398
78,538,048
9(558,883)(17,257)
77,961,917(48,802)(1,562,150)
ሺ31,259)
ሺ3,951,142)－
970,585－
ሺ610,851)－
ሺ5,233,620)(7,835)(43,357,161)－－
3,951,142
2,835,391
1,562,855
ሺ2,246,747)
ሺ106,455)
ሺ37,368,810)

1,000,000－
10,550,000
ሺ11,550,000)－(5,358,341)(5,358,341)
ሺ4,019,936)
19,978,415
15,958,479

39,000,000
ሺ41,000,000)
6,000,000
ሺ19,350,000)
ሺ3,675,523)(5,455,151)(24,480,674)
16,112,432
15,958,479
32,070,911

3.6. Notes to the Going Concern
Not applicable.
3.7. Notes to Significant Accounting Policies
Evaluation criteria and method for
Securities
assetsOther securities
Securities without fair value
Moving-average cost method is adopted.
A method to take in the amount equivalent to ownership interest in silent
partnership on a net basis is adopted for silent partnership equity interest.
2.
Accumulated depreciation method(1) Property, plant and equipment (including trust assets)
for noncurrent assets
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as follows:
Buildings
2~64 years
Structures
10~56 years
Machinery and equipment
7~23 years
Tools, furniture and fixtures
5~15 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
3.
Accounting policies for
Investment corporation bonds issuance costs
deferred assets
Amortized using the straight-line method over the period up to redemption.
4.
Accounting standards for recording Accounting for fixed property tax, etc.
revenues and expenses
Concerning fixed property tax, city planning tax, depreciated asset tax, etc. forowned real estate in trust, of the tax amount that has been broken down into
installments, the method of accounting for the amount corresponding to theconcerned fiscal period as expenses related to rent business is adopted.
Concerning the amount equivalent to fixed property tax, etc. for the initialfiscal year that shall be borne by the Investment Corporation in correlation withacquisitions of real estate or trust beneficial interest that have real estate as
assets in trust, the amount is not expensed but is rather included in the cost of
acquisition of the concerned real estate property. The amount equivalent to
fixed property tax, etc. that was included in the cost of acquisition of real estate
properties is 0 yen in the 24th Fiscal Period and 126,300 thousand yen in the
25th Fiscal Period.
5.
Hedge accounting approaches(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet the requirements
for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate swap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge risks
stipulated in the Investment Corporation’s articles of incorporation inaccordance with the Investment Corporation’s risk management policy.
(4) Method for assessing the effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between the change
in aggregated amount of cash flow of the hedging instruments and the change
in aggregated amount of cash flow of the hedged items.
Interest rate swaps that meet the requirements for special accounting are
omitted from assessment of the effectiveness.
6.
Scope of funds in the
The funds (cash and cash equivalents) in the statements of cash flows consist of cash
statements of cash flows
on hand and cash in trust; deposits that can be withdrawn at any time and deposits intrust; and short-term investments with a maturity of 3 months or less from the date ofacquisition, which are readily convertible to cash and bear only an insignificant riskof price fluctuation.

1.

- 20 -

7.

Other significant matters forming
basis for preparation of financial
statements

(1)

(2)

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

- 21 -

3.8. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting and asset retirement
obligations, disclosure is omitted because there is no substantial need for such disclosure in the financial report (kessan
tanshin).
[Notes to Balance Sheets]*1. Advanced depreciation amount for noncurrent assets acquired by government subsidies, etc.
24th Fiscal Period[As of November 30, 2017]
Buildings in trust

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

32,898 thousand yen

Buildings in trust

32,898 thousand yen*2. Status of cancellation of own investment units
24th Fiscal Period[As of November 30, 2017]

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

Total number of investment units
cancelled
Total amount cancelled

5,992 units
3,675,523 thousand yen*3. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations

24th Fiscal Period[As of November 30, 2017]

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

50,000 thousand yen

50,000 thousand yen[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing(Unit: thousand yen)
24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]
A.

B.

C.

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

25th Fiscal Period[From: Dec. 1, 2017
To: May 31, 2018]
12,868,665
41,40912,718,363
16,863
12,735,226
969,049
1,095,647
1,110,288
14,770267,966
1,768,826
52,684

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

962,222
998,451
1,108,572
14,249505,704
1,772,039
48,9355,279,234

5,410,175

7,455,991

7,499,899*2. Breakdown of gain (loss) on sales of real estate properties (Unit: thousand yen)
24th Fiscal Period [From: June 1, 2017 To: November 30, 2017]
Not applicable.

- 22 -

12,910,074

25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Daiwa Meieki
Proceeds from sales of real estate
properties
Cost of sales of real estate properties
Other expenses on sales

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

Gain on sales of real estate properties

2,959,463

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

2,477,729[Notes to Statements of Unitholders’ Equity]
24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]
Total number of investment units authorized and number ofinvestment units issued and outstanding
Total number of investment units authorized
Total number of investment units issued and outstanding- 23 -

2,000,000 units
497,869 units

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

2,000,000 units
491,877 units

[Notes to Statements of Cash Flows]*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the statements of cash flows(Unit: thousand yen)
24th Fiscal Period
25th Fiscal Period[From: June 1, 2017
[From: Dec. 1, 2017
To: Nov. 30, 2017]
To: May 31, 2018]
Cash and deposits
14,289,857
28,687,859
Cash and deposits in trust
1,668,622
3,383,052
Cash and cash equivalents
15,958,479
32,070,911[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation bonds andissuance of new investment units, etc. for the acquisition and repair of investment properties, the payments ofdividends and the reimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates, anddispersing maturity dates in order to secure financial stability and avoid future fluctuation risk of interest rates.
The Investment Corporation manages surplus funds through deposits and safe and highly liquid money claims
and securities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks attributable toliabilities of the Investment Corporation.
(b) Contents and risk of financial instruments and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds for theacquisition of investment properties (such as trust beneficial interest in real estate) and the reimbursement of current
debts and bonds. While these debts and bonds are exposed to liquidity risk, the Investment Corporation manages therisk by maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt tototal debt at high levels, and diversifying lenders with particular focus on domestic financial institutions.
Bank borrowings etc. with floating interest rates are exposed to interest rate risk and the risk is controlled byusing derivative instruments (interest rate swap transaction) for some long-term borrowings to avoid interest rate
rise and to fix interest expense.
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount of cash
flow of the hedging instruments and the change in aggregated amount of cash flow of the hedged items. Interest rate
swaps that meet the requirements for special accounting are omitted from assessment of the effectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions
established by the basic policy of risk management. Tenant leasehold and security deposits and tenant leasehold andsecurity deposits in trust are exposed to liquidity risk upon tenants moving out and the Investment Corporation
reduces the risk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) and aremanaged by limiting the terms to short durations and establishing credit rating level of counterparties (except forcheckable deposit), etc.
Investment securities are for investments in silent partnerships and are exposed to credit risk of issuers, fluctuation
risk of values, etc., of real estate, etc. and interest rate. However, such risks are controlled by regularly discerning
the financial status of issuers and values, etc. of real estate, etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instruments with noavailable market price is determined by using price reasonably estimated. As various factors are incorporated into
these calculations, the resulting value may differ if different assumptions are provided. Furthermore, the contractual
amounts of derivative transactions do not represent the market risk involved in these derivative transactions.

- 24 -

(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)).
24th Fiscal Period [As of November 30, 2017](1) Cash and deposits(2) Cash and deposits in trust
Total assets(3) Short-term loans payable(4) Current portion of long-term loans payable(5) Investment corporation bonds(6) Long-term loans payable
Total liabilities
Derivative transactions (*)

Carrying amount
14,289,857
1,668,622
15,958,479
2,000,000
17,350,000
5,100,000
179,850,000
204,300,000(548,483)

Fair value
14,289,857
1,668,622
15,958,479
2,000,000
17,364,931
5,175,450
179,753,467
204,293,849(548,483)(Unit: thousand yen)
Difference－－－－
14,93175,450
ሺ96,532)
ሺ6,150)－25th Fiscal Period [As of May 31, 2018](Unit: thousand yen)
Carrying amount
Fair value
Difference(1) Cash and deposits
28,687,859
28,687,859－(2) Cash and deposits in trust
3,383,052
3,383,052－
Total assets
32,070,911
32,070,911－(3) Short-term loans payable－－－(4) Current portion of long-term loans payable
15,500,000
15,510,391
10,391(5) Investment corporation bonds
5,100,000
5,168,640
68,640(6) Long-term loans payable
168,350,000
168,312,077
ሺ37,922)
Total liabilities
188,950,000
188,991,109
41,109Derivative transactions (*)(368,207)(368,207)－(*) 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 andthus is stated at that book value.
Liabilities(3) Short-term loans payable; (4) Current portion of long-term loans payable; (6) Long-term loans payable
As those with floating interest rates reflect market interest rates within a short period of time and the Investment
Corporation’s credit capability does not differ markedly from the execution, the fair value is approximately thesame as the book value and thus is stated at that book value. Those with fixed interest rates, on the other hand, arebased on the method of calculating by discounting the sum total amount of principal and interest (*) by thereasonably estimated interest rate in the case that the same type of borrowings is undertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest is handled
together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions] below.)(5) Investment corporation bonds
The fair value of the investment corporation bonds issued by the Investment Corporation is based on the market
price.

- 25 -

Derivative transactions
Please refer to [Notes to Derivative transactions] below.
(Note 2) Carrying amount of financial products for which it is extremely difficult to estimate fair value
24th Fiscal Period[As of November 30, 2017](Unit: thousand yen)
25th Fiscal Period[As of May 31, 2018]

3,951,142
17,140,303
491,739－
17,709,854
1,792,654

Investment securities*1
Tenant leasehold and security deposits*2
Tenant leasehold and security deposits in trust*2

Total
21,583,184
19,502,509(*1) Silent partnership equity interest recorded as investment securities are not subject to disclosure of fair value as there isno market price and discerning of the fair value is recognized to be extremely difficult.
(*2) Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lesseesof rental properties are not subject to disclosure of fair value because discerning of the fair value is recognized to be
extremely difficult as future cash flows cannot be reasonably estimated due to there being no market price anddifficulty in calculation of the actual deposit period, which is the period from tenants’ move-ins to move-outs.
(Note 3) Redemption schedule for monetary claims due after the settlement of accounts.
24th Fiscal Period [As of November 30, 2017](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Cash and deposits

14,289,857

–

–

–

–

–

Cash and deposits in trust

1,668,622

–

–

–

–

–

Total

15,958,479

–

–

–

–

–

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Cash and deposits

28,687,859

－

－

－

－

－

Cash and deposits in trust

3,383,052

－

－

－

－

－

32,070,911

－

－

－

－

－

Over 5 years

25th Fiscal Period [As of May 31, 2018](Unit: thousand yen)

Total

Over 5 years(Note 4) Amount of repayment of short-term loans payable, current portion of long-term loans payable, long-term loans
payable and investment corporation bonds scheduled to be due after the settlement of accounts.
24th Fiscal Period [As of November 30, 2017](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Short-term loans payable

2,000,000

－

－

－

－

－

Current portion of
long-term loans payable

17,350,000

－

－

－

－

－

Investment corporation bonds－

3,000,000－－－

2,100,000

Long-term loans payable－

22,000,000

31,600,000

24,200,000

31,600,000

70,450,000

19,350,000

25,000,000

31,600,000

24,200,000

31,600,000

72,550,000

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

15,500,000

－

－

－

－

－

Investment corporation bonds－

3,000,000－－－

2,100,000

Long-term loans payable－

19,500,000

33,300,000

21,500,000

30,600,000

63,450,000

15,500,000

22,500,000

33,300,000

21,500,000

30,600,000

65,550,000

Total

Over 5 years

25th Fiscal Period [As of May 31, 2018](Unit: thousand yen)
Current portion of
long-term loans payableTotal- 26 -

Over 5 years

[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
24th Fiscal Period [As of November 30, 2017]
Not applicable.
25th Fiscal Period [As of May 31, 2018]
Not applicable.
(2) Transactions for which hedge accounting is applied
24th Fiscal Period [As of November 30, 2017]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to theprincipal provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as
follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Long-term
Principle
Based on pricetransaction
loans
accounting
quoted by partner
112,600,000
105,100,000
ሺ548,483)
Fixed payablepayablemethodfinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
(*)
loans
－
14,350,000
7,000,000
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
126,950,000
112,100,000
ሺ548,483)
25th Fiscal Period [As of May 31, 2018]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Method of
Main
Type, etc. of derivative
accounting
Fair value
calculation ofhedgedOf which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Long-term
Based on pricePrinciple
transaction
loans
quoted by partner
accounting
105,100,000
96,100,000
ሺ368,207)
Fixed payablepayablefinancial institution
methodFloating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans－
4,500,000
2,000,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
109,600,000
98,100,000
ሺ368,207)(*) 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)”).

- 27 -

[Notes to Transactions with Related Parties](1) Parent company and major corporate unitholders, etc.
24th Fiscal Period [From: June 1, 2017 To: November 30, 2017]
Not applicable.
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Not applicable.
(2) Affiliated companies, etc.
24th Fiscal Period [From: June 1, 2017 To: November 30, 2017]
Not applicable.
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Not applicable.
(3) Sister companies, etc.
24th Fiscal Period [From: June 1, 2017 To: November 30, 2017]
Not applicable.
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Rate of voting
Balance at
Capital stockrights, etc. held Relation
Transaction
end ofName of company,
orBusinessby related
withNature ofamount Acco
Category
Location
periodetc.
investments description party (held in Related transaction (thousand unt(thousandin capital
the Investment Parties
yen)
yen)
Corporation)

Subsidiary
Godo kaishaof OtherChuo-ku,
Yokohama OfficeaffiliatedTokyo
Managementcompany

400,000
yen

Real estatebusiness－

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

Of amounts indicated above, transaction amount does not include consumption tax, etc.
(Note 1) Transaction terms and conditions were determined based on the market.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning conflictof interest in the internal rule of the Asset Manager.
(Note 3) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is quasi
co-ownership equivalent to 75% of the entire CONCURRED Yokohama.
(4) Officers and major individual unitholders, etc.
24th Fiscal Period [From: June 1, 2017 To: November 30, 2017]
Not applicable.
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]
Not applicable.

- 28 -－

[Notes to Investment and Rental Properties]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The carrying
amount, amount of increase (decrease) during period and fair value for these rental properties are as follows.
(Unit: thousand yen)
24th Fiscal Period[From: June 1, 2017
To: Nov. 30, 2017]

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

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

460,986,036

459,753,017(1,233,019)(27,375,454)

459,753,017

432,377,563

527,130,000

506,040,000(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 24th Fiscal Period, the amount of decrease ismainly attributable to depreciation (1,768 million yen). The amount of increase in the 25th Fiscal Period is mainly
attributable to acquisition of two properties (CONCURRED Yokohama and Daiwa Kanda East) (42,300 million
yen) and the amount of decrease is mainly attributable to divestment of Daiwa Meieki Building and Shinjuku
Maynds Tower (three-sevenths out of six-sevenths of co-ownership interest) (69,827 million yen) and depreciation(1,772 million yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by external real estate appraisers.
The income (loss) for investment and rental properties are as presented in the aforementioned “Notes to Statements of Income.”[Notes to Segment Information, etc.](1) Segment Information
Segment information has been omitted because the Investment Corporation has no segment except the property leasing
business.
(2) Related Information
24th Fiscal Period [From: June 1, 2017 To: November 30, 2017]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment
are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of
90% of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance
sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales figure to a single externalcustomer accounts for less than 10% of the operating revenue on statements of income.
25th Fiscal Period [From: December 1, 2017 To: May 31, 2018]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment
are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of
90% of the operating revenue on statements of income.
B. Property, plant and equipment- 29 -

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 externalcustomer accounts for less than 10% of the operating revenue on statements of income.
[Notes to Per Unit Information]
24th Fiscal Period
25th Fiscal Period[From: June 1, 2017
[From: Dec. 1, 2017
To: Nov. 30, 2017]
To: May 31, 2018]
Net assets per unit
515,790 yen
515,730 yen
Net income per unit
10,957 yen
10,882 yen(Note 1) Net income per unit is calculated by dividing net income by the average number of investment units during theperiod. The diluted net income per unit is not stated as there are no diluted investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
24th Fiscal Period
25th Fiscal Period[From: June 1, 2017
[From: Dec. 1, 2017
To: Nov. 30, 2017]
To: May 31, 2018]
Net income (thousand yen)
5,455,154
5,887,460
Amounts not attributable to common unitholders (thousand yen)－－
Net income attributable to common investment units (thousand yen)
5,455,154
5,887,460
Average number of investment units during the period (unit)
497,869
495,505[Notes to Significant Subsequent Events]
1. Acquisition of Assets(a) The Investment Corporation acquired trust beneficial interest in real estate on June 7, 2018 as follows.
Summary of Asset Acquired
Property namePrime Kanda Building

Type of asset

Trust beneficial interest in domestic real estate (Note 1)

Location

2-8-2 Kanda Suda-cho, Chiyoda-ku, Tokyo

Acquisition Price

1,800 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

May 23, 2018

Date of delivery

June 7, 2018

SellerNot disclosed (Note 2)(Note 1)
(Note 2)

The asset is a trust beneficial interest with compartmentalized ownership of the B1 floor, part of thefirst floor and floors 4 to 10 as primary asset in trust.
The seller is a domestic special purpose company, which has not agreed to disclose its name.

(b) The Investment Corporation decided on June 18, 2018 to acquire trust beneficial interest in real estate as
follows
Summary of Asset Acquired
Property nameKita-Shinagawa Gotenyama Building

Type of asset

Trust beneficial interest in domestic real estate

Location

3-3-5 Kita-Shinagawa, Shinagawa-ku, Tokyo

Acquisition Price

2,500 million yen(excluding associated acquisition costs, consumption tax, etc.)

Date of conclusion of purchase agreement

June 18, 2018

Date of delivery

September 13, 2018 (Planned)

SellerDanke Holdings Co., Ltd.

- 30 -

3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
Since no capital increase, etc. were conducted in the 25th Fiscal Period, there is no change to unitholders’ capital, etc.
The overview of capital increase in the most recent 5 years up to the end of the 25th Fiscal Period is as follows.
Number of investment units
Unitholders’ capitalissued and outstanding(million yen)(units)Payment date
Description
Notes
Increase
Increase
Balance
Balance(Decrease)(Decrease)
Capital increase through public
July 2, 2014
(Note 1)
41,092436,890
18,522
217,303
offering
Capital increase by way of a
July 30, 2014
(Note 2)4,110
441,000
1,852
219,155
third-party allotment
Capital increase through public
June 1, 2015
(Note 3)41,045
482,045
23,145242,301
offering
Capital increase by way of aJune 24, 2015
(Note 4)
1,955
484,000
1,102
243,403
third-party allotment
Capital increase through public
August 2, 2016
(Note 5)
12,700496,700
7,461
250,864
offering
Capital increase by way of a
August 31, 2016
(Note 6)
1,169
497,869686
251,551
third-party allotment
May 31, 2018 Cancellation(Note 7)
(5,992)491,877(3,675)
247,876(Note 1) The Investment Corporation issued new investment units through public offering at an issue price of 466,537 yen perunit (paid-in price: 450,746 yen) to procure funds for acquisition of properties, etc.
(Note 2) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of
450,746 yen per unit (paid-in price: 450,746 yen) to procure funds for acquisition of properties, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of 583,050 yen perunit (paid-in price: 563,914 yen) to procure funds for acquisition of properties, repayment of borrowings, etc.
(Note 4) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of
563,914 yen per unit (paid-in price: 563,914 yen) to procure funds for acquisition of properties, repayment ofborrowings, etc.
(Note 5) The Investment Corporation issued new investment units through public offering at an issue price of 607,425 yen perunit (paid-in price: 587,489 yen) to procure funds for repayment of borrowings, etc.
(Note 6) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of
587,489 yen per unit (paid-in price: 587,489 yen) to procure funds for repayment of borrowings, etc.
(Note 7) In the period from March 1, 2018 to May 18, 2018, the Investment Corporation acquired own investment units
through market purchase at the Tokyo Stock Exchange based on a discretionary transaction agreement with asecurities 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.

- 31 -

4. Changes in Directors
4.1. Changes in Directors at the Investment Corporation
Not applicable.
Yoshimi Murakami will resign from executive director on August 20, 2018 at his term.
The Investment Corporation plans to submit the proposal for the appointment of the executive director at the 10th
Unitholder’s meeting scheduled to be held on August 20, 2018 as follows. If the proposal is approved, the candidate
shall assume the office on the same day.
Candidate for Executive Director: Motoi Takahashi

Name

Motoi
Takahashi

Career summary
Apr. 1980
Apr. 1999
Jul. 2002
Jun. 2003
Jun. 2004
Apr. 2005
Apr. 2006
Apr. 2008
Jan. 2010

Apr. 2010

Apr. 2011
Apr. 2016

Joined Daiwa Securities Co. Ltd. (currently, Daiwa Securities Group
Inc.)
Managing Director of Capital Market I Department of Daiwa Securities
SB Capital Markets Co. Ltd. (currently, Daiwa Securities Co. Ltd.)
Head of Corporate Finance III Department of Daiwa Securities SMBC
Co. Ltd. (currently, Daiwa Securities Co. Ltd.)
Head of Corporate Finance II Department of Daiwa Securities SMBC
Co. Ltd. (currently, Daiwa Securities Co. Ltd.)
Head of Corporate Finance I Department of Daiwa Securities SMBC Co.
Ltd. (currently, Daiwa Securities Co. Ltd.)
Senior Managing Director (in charge of planning) of Daiwa Securities
SMBC Co. Ltd. (currently, Daiwa Securities Co. Ltd.)
Senior Managing Director (in charge of public institutions) of Daiwa
Securities SMBC Co. Ltd. (currently, Daiwa Securities Co. Ltd.)
Executive Managing Director (in charge of public institutions) of Daiwa
Securities SMBC Co. Ltd. (currently, Daiwa Securities Co. Ltd.)
Executive Managing Director (in charge of public institutions) of Daiwa
Securities Capital Markets Co. Ltd. (currently, Daiwa Securities Co.
Ltd.)
Executive Managing Director (in charge of syndicate, capital market,
initial public offering and investment programs) of Daiwa Securities
Capital Markets Co. Ltd. (currently, Daiwa Securities Co. Ltd.)
Senior Executive Managing Director of Daiwa Institute of Research Ltd.
Advisor of Daiwa Institute of Research Ltd.

- 32 -

Number ofshares owned(shares)―

4.2. Changes in Directors at the Asset Manager
The following is the directors at the Asset Manager as of the date of this document.
Title
President andRepresentative
Director

Name
Akira
YamauchiCareer summary
Apr. 1986
Apr. 2002
May 2002

Mar. 2003
Aug. 2004

Feb. 2008

Feb. 2009
Jul. 2009
Apr. 2010
May 2010
Vice-President
And Representative
Director (Head ofCorporate Division
and Business
Planning
Department)

Yuji
Shinotsuka

Apr. 1989
Jun. 2009
Jul. 2009
Nov. 2009

Apr. 2011

Oct. 2012

Dec. 2012
Jan. 2014
Aug. 2014
Apr. 2016

Apr. 2017

Numberof shares
owned(shares)

Joined Marubeni Corporation
Joined Pacific Management Corporation
Temporarily transferred to Pacific Investment Advisors
Corporation(currently, AD Investment Management Co., Ltd.)
President and Representative Director of Pacific Investment
Advisors Corporation (with employment transfer)
Executive Director of Nippon Residential Investment
Corporation(currently, Advance Residence Investment Corporation)
President and Representative Director of Pacific Investment
Partners Inc.
(currently, Cushman & Wakefield Asset Management K.K.)
Representative Director (part-time) of Pacific Holdings, Inc.
Executive Managing Director of Cushman & Wakefield
Asset Management K.K.
Advisor of Daiwa Real Estate Asset Management Co., Ltd.
President and Representative Director of Daiwa Real Estate
Asset Management Co., Ltd. (current position)―

Joined Daiwa Securities Co. Ltd.
(currently, Daiwa Securities Group Inc.)
Head of Corporate Planning Department of Daiwa
Securities Group Inc.
Temporarily transferred to Daiwa Real Estate AssetManagement Co., Ltd.
Vice-President and Representative Director (Head of IR &Planning Department) of Daiwa Real Estate AssetManagement Co., Ltd.
Vice-President and Representative Director (Head ofBusiness Planning and Finance Department) of Daiwa Real
Estate Asset Management Co., Ltd.
Vice-President and Representative Director (Head ofCorporate Planning Department) of Daiwa Real Estate
Asset Management Co., Ltd.
Executive Director of Daiwa Residential Private Investment
Corporation (current position)
Executive Director of Nippon Healthcare Investment
Corporation
Resigned from office as Executive Director of Nippon
Healthcare Investment CorporationVice-President and Representative Director (Head ofCorporate Planning Department) of Daiwa Real Estate
Asset Management Co., Ltd. (with employment transfer)Vice-President and Representative Director (Head ofCorporate Division and Business Planning Department) of
Daiwa Real Estate Asset Management Co., Ltd.
(current position)―- 33 -

TitleName

Vice President andRepresentative
Director (Head of
Private Fund
Division and Private
Fund management
Department)

YoshikiNishigaki

Career summary
Apr. 1992
May 2004
Feb. 2006
Mar. 2007
Mar. 2008
Nov. 2008
May 2010
Aug. 2010
Feb. 2011
Apr. 2012
Oct. 2013

Apr. 2014

Apr. 2017

Executive Managing
Director (Head of
Acquisition andAsset Management
Division andOrigination
Department)

ToshioFukushima

Apr. 1992
Jul. 2004
Aug. 2009
Mar. 2011
Jun. 2013
Nov. 2015
Apr. 2016
Apr. 2017

Oct. 2017

Apr. 2018

Director (Head of
Administration

HajimeImbe

Apr. 1988

Numberof shares
owned(shares)

Joined Cititrust & Banking Corporation
Joined K.K. daVinci Advisors
Transferred to K.K. daVinci Select(currently, Daiwa Real Estate Asset Management Co., Ltd.)
Head of IR & Business Planning Department of Daiwa Real
Estate Asset Management Co., Ltd.
President and Representative Director Executive of Daiwa
Real Estate Asset Management Co., Ltd.
Director of DA Office Investment Corporation(currently, Daiwa Office Investment Corporation)
Vice President and Representative Director of Daiwa Real
Estate Asset Management Co., Ltd.
Resigned from Executive Director of Daiwa Office
Investment CorporationVice-President and Representative Director (Head ofAdvisory Department) of Daiwa Real Estate AssetManagement Co., Ltd.
Vice-President and Representative Director (Head ofCustomer Relations Department and Private FundManagement Department) of Daiwa Real Estate AssetManagement Co., Ltd.
Vice-President and Representative Director (Head of
Private Fund Management Department) of Daiwa Real
Estate Asset Management Co., Ltd
Vice-President and Representative Director (Head of
Private Fund Division and Private Fund Management
Department) of Daiwa Real Estate Asset Management Co.,
Ltd. (current position)―

Joined Tokyu Land Corporation
Joined Pacific Management Corporation
Joined Mitsubishi Estate Co., Ltd.
Joined Daiwa Real Estate Asset Management Co., Ltd.
Head of Acquisition Department of Daiwa Real Estate
Asset Management Co., Ltd.
Head of Acquisition Department and Origination Departmentof Daiwa Real Estate Asset Management Co., Ltd.
Head of Asset Management Department and Origination
Department of Daiwa Real Estate Asset Management Co., Ltd.
Director and Head of Acquisition and Asset Management
Division, Asset Management Department and Origination
Department of Daiwa Real Estate Asset Management Co., Ltd.
Director and Head of Acquisition and Asset Management
Division and Origination Department of Daiwa Real Estate
Asset Management Co., Ltd.
Executive Managing Director and Head of Acquisition andAsset Management Division and Origination Department of
Daiwa Real Estate Asset Management Co., Ltd. (current
position)―

Joined Daiwa Securities Co. Ltd.
(currently, Daiwa Securities Group Inc.)―- 34 -

TitleName

Department)

Career summary
Jun. 2006
Apr. 2009

Jan. 2010
Oct. 2010
Apr. 2012
Apr. 2013
Apr. 2017

Mar. 2018
Director(part-time)

MikitaKomatsu

Apr. 1985
Oct. 2005
Oct. 2008
Apr. 2010
Apr. 2011
Apr. 2012
Apr. 2013
Apr. 2016
Jun. 2016

Director(part-time)

Naoya
Otani

Apr. 1988
Jun. 2006
Apr. 2009

Jul. 2011

Apr. 2017
Jun. 2017
AuditorTamaki
Shibayama

Apr. 1982
Sept. 1986

Numberof shares
owned(shares)Managing Director of Human Resources Department of
Daiwa Securities Group Inc.
Managing Director of Investment Banking Strategic
Planning Department of Daiwa Securities SMBC Co. Ltd.
(currently, Daiwa Securities Co. Ltd.)Managing Director of Global Investment Banking Planning
Department of Daiwa Securities Capital Markets Co. Ltd.
Managing Director of Corporate Business Planning
Department of Daiwa Securities Co. Ltd.
Managing Director of Corporate Division Planning
Department of Daiwa Securities Co. Ltd.
Managing Director of Corporate Business Planning
Department of Daiwa Securities Co. Ltd.
Temporarily transferred to Daiwa Real Estate AssetManagement Co., Ltd.
Director and Head of Administration Department of Daiwa
Real Estate Asset Management Co., Ltd. (current position)
Executive Director of Daiwa Hotel Private Investment
Corporation (current position)
Joined Daiwa Securities Co. Ltd.
(currently, Daiwa Securities Group Inc.)
Head of Finance Department of Daiwa Securities Group Inc.
President of Daiwa Securities SMBC Europe Limited(currently Daiwa Capital Markets Europe Limited)
Senior Managing Director of Daiwa Securities CapitalMarkets Co. Ltd.
Senior Managing Director of Daiwa Securities Group Inc.
Director (part-time) of Daiwa Real Estate AssetManagement Co., Ltd. (current position)
Executive Managing Director of Daiwa Securities Group Inc.
Senior Managing Director of Daiwa Securities Group Inc.
Director and Senior Managing Director of Daiwa Securities
Group Inc. (current position)―

Joined Daiwa Securities Co. Ltd.
(currently, Daiwa Securities Group Inc.)
Managing Director of Legal Department and Corporate
Planning Department of Daiwa Securities Group Inc.
Managing Director of Corporate Planning Department of
Daiwa Securities
SMBC Co. Ltd. (currently, Daiwa Securities Co. Ltd.)Managing Director of Corporate Planning Department of
Daiwa Securities Group Inc. (current position)
Managing Director of Corporate Planning Department of
Daiwa Securities Co. Ltd. (current position)
Director of Daiwa Real Estate Asset Management Co. Ltd.
(part-time) (current position)
Auditor of Nippon Record Keeping Network Co., Ltd.
(part-time) (current position)―

Joined the Japan Chamber of Commerce and Industry
Joined Daiwa Securities Co., Ltd.

―- 35 -

TitleName

Career summary

Apr, 2002

Oct. 2010
Apr. 2012
Apr. 2015
Auditor (part-time)

Morimasa
MatsudaApr. 1989
Jun. 2007

Dec. 2009

Apr. 2011
Apr. 2013
Apr. 2016

Jun. 2016
Auditor (part-time)

Shinji Kiso

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

Numberof shares
owned(shares)(currently Daiwa Securities Group Inc.)
General Manager of Initial Public Offering Department of
Daiwa Securities
SMBC Co., Ltd. (currently Daiwa Securities Co. Ltd.)
Head of Corporate Auditor’s Office of Daiwa Securities
Capital Markets Co., Ltd.
Managing Director of Corporate Clients Banking
Department (VII) of Daiwa Securities Co., Ltd.
Auditor of Daiwa Real Estate Asset Management Co. Ltd.
(current position)
Joined Daiwa Securities Co. Ltd.
(currently, Daiwa Securities Group Inc.)
Managing Director of Corporate Planning Department of
Daiwa Securities SMBC Co. Ltd.
(currently, Daiwa Securities Co. Ltd.)Managing Director of Asia Strategic Planning Departmentof Daiwa Securities SMBC Co. Ltd.
(currently, Daiwa Securities Co. Ltd.)Managing Director of Investor Relations Office of Daiwa
Securities Group Inc.
Managing Director of Internal Audit Department of Daiwa
Securities Group Inc.
Executive Director of Daiwa Securities Group Inc.
Auditor of Daiwa Real Estate Asset Management Co. Ltd.
(part-time) (current position)
Director of Daiwa Securities Group Inc. (current position)―

Joined Daiwa Securities SMBC Co., Ltd.
(currently, Daiwa Securities Co., Ltd.)
Corporate Planning Department of Daiwa Securities Group Inc.
(current position)
Corporate Planning Department of Daiwa Securities Co., Ltd.
(current position)
Director (part-time) of ASTMAX Co., Ltd.
(current position)
Auditor (part-time) of Daiwa Real Estate AssetManagement Co. Ltd. (current position)
Director (part-time) of Money Partners Group Co., Ltd.
(current position)
Auditor (part-time) of IDI infrastructures, Inc.
(current position)―(Note) Toshio Fukushima assumed office as Executive Managing Director on April 1, 2018.

- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period

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

Trust beneficial
interest in real estate

25th Fiscal Period(As of May 31, 2018)
Total amount owned
As a percentage of(million yen) (Note 1)
total assets (%)

Use

RegionOfficeFive Central Wards of Tokyo(Note 2)

15,832

3.4

Five Central Wards of Tokyo

330,163

70.7

Greater Tokyo (Note 3)

77,104

16.5

Major Regional Cities(Note 4)

9,276

2.0

432,377

92.6

34,6627.4

467,040100.0[432,377][92.6]

OfficeTotal
Deposits and other assets
Total amount of assets (Note 5)(Note 1) The total amount owned is the carrying amount (the book value after depreciation in the case of real estate and trust
beneficial interest in real estate).
(Note 2) The Five Central Wards of Tokyo are Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards.
(Note 3) Tokyo Metropolitan Area is Tokyo, Kanagawa, Chiba and Saitama Prefectures (excluding the Five Central Wards ofTokyo).
(Note 4) Regional Major Cities are the Osaka metropolitan area (Osaka, Kyoto and Hyogo Prefectures), Nagoya metropolitan
area (Aichi, Mie and Gifu Prefectures), and ordinance-designated cities and core cities set forth in the Local Autonomy
Act.
(Note 5) The figures in parentheses [ ] under “Total amount of assets” shows the portion of the applicable asset that, in effect,
corresponds to the holding of real estate properties. The amount of construction in progress (including constructionin progress in trust) is not included in the amount of real estate and trust beneficial interest in real estate.

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
5.2. Investment Real Estate Properties (As of May 31, 2018)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Carrying
Type
of
price
amountRegionProperty namespecified asset (million yen) (million yen)
(Note 1)
(Note 2)
Daiwa Ginza
14,10013,064
Real estate
Daiwa Ginza Annex
3,050
2,767
8,265
8,014
Daiwa Shibaura
Daiwa Minami-Aoyama
4,550
4,425
Daiwa Sarugakucho
3,190
3,194
Daiwa A Hamamatsucho (Note 5)
2,865
2,777
Daiwa Jingumae
2,800
2,711
Daiwa Shibadaimon
2,578
2,398
Daiwa Misakicho
2,346
2,151
Daiwa Shimbashi 510
2,080
2,141
Daiwa Tsukijiekimae
1,560
1,289
Daiwa Tsukiji
1,240
1,141
Daiwa Tsukishima
7,840
6,888
Daiwa Nihonbashi Horidomecho
2,520
2,465
Daiwa Azabudai
1,600
1,516
Daiwa Kyobashi
3,460
3,225
Daiwa Kojimachi 4-chome
2,910
2,846
Daiwa Onarimon
13,86013,348
Shinjuku Maynds Tower (Note 5)
66,90064,538Daiwa SHIBUYA EDGE
5,900
5,655
Daiwa Kodenmacho
2,460
2,374
Daiwa Jimbocho
4,150
4,003
Five
5,000
4,735
Central Daiwa Nishi-Shimbashi
Trust
Wards of Daiwa Kayabacho Building
5,600
5,259
beneficial
Tokyo
interest
inreal
Daiwa Jimbocho 3-chome
3,550
3,373
estateE SPACE TOWER
24,00023,610Daiwa Nihonbashi Hongokucho
1,721
1,592
shinyon curumu
9,650
9,685
Daiwa Akasaka
9,200
9,422
Daiwa Shibuya Miyamasuzaka
7,000
7,200
Daiwa Azabu Terrace
14,00014,080Daiwa Ebisu 4-chome
4,135
4,254
LAQUAS Higashi Shinjuku
8,450
8,484
Daiwa Aoyama
9,800
10,031
Shinsen Place
4,800
4,890
Glass City Shibuya
16,00015,979Daiwa River Gate
28,00028,001
Daiwa Hatchobori ekimae
2,871
2,944
Daiwa Hatchobori ekimae West
1,647
1,726
Daiwa Nishi-Shinjuku
13,71013,947
Kirin Nihonbashi Building
8,180
8,278
Daiwa Higashi-nihonbashi
6,370
6,339
Square Daikanyama Building
2,280
2,383
Shinjuku West Building
942
981
Daiwa Kanda Mikura-cho Building
1,592
1,601
Daiwa Kanda East
4,200
4,249
Total for Five Central Wards of Tokyo
352,922345,996(46 Properties)- 38 -

Estimated price at Investment
end of periodratio(million yen)(%)
(Note 3)(Note 4)
17,400
3.2
3,840
0.7
7,870
1.9
4,640
1.0
3,840
0.7
3,610
0.7
2,460
0.6
3,110
0.6
2,860
0.5
2,530
0.5
2,000
0.4
1,610
0.3
10,500
1.8
2,660
0.6
1,930
0.4
3,450
0.8
2,810
0.7
13,7003.2
62,600
15.2
5,190
1.3
2,260
0.6
3,620
0.9
6,570
1.1
8,170
1.3
5,060
0.8
33,500
5.5
2,560
0.4
15,6002.2
14,000
2.1
9,350
1.6
16,600
3.2
6,040
0.9
10,8001.9
12,400
2.2
6,720
1.1
18,3003.6
30,900
6.4
3,320
0.7
1,850
0.4
15,800
3.1

8,290
6,780
2,620
1,230
1,710
5,120

1.9
1.4
0.5
0.2
0.4
1.0

407,780

80.3

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period

RegionProperty nameDaiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Daiwa Osaki 3-chome
Greater Daiwa Kamiooka
Tokyo
Integral Tower
Daiwa Meguro Square
Daiwa Ogikubo
CONCURRED Yokohama (Note 5)
Total for Greater Tokyo (8 properties)
Major
Regional
CitiesDaiwa Kitahama

Total for Major Regional Cities (1 property)
Total (55 properties)

Acquisition
Carrying
Type ofprice
amountspecified asset (million yen) (million yen)
(Note 1)
(Note 2)
2,958
2,661
7,710
7,169
1,650
1,605
Trust
2,000
1,911
beneficial
interest in real
15,22015,917
estate
5,600
5,531
3,800
3,989
38,10038,31577,038
77,104Trust
beneficial
9,481
9,276
interest in realestate9,481
9,276
439,441
432,377

Estimated price at Investment
end of periodratio(million yen)(%)
(Note 3)(Note 4)
4,050
0.7
6,170
1.8
2,340
0.4
2,750
0.5
20,500
3.5
6,810
1.3
4,540
0.9
39,4008.7
86,56017.5
11,7002.2

11,700506,0402.2
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, 2018.
(Note 3) Estimated price at end of period is the price as of May 31, 2018 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 Building, Shinjuku Maynds Tower and CONCURRED Yokohama, the figures arethose pertaining to the Investment Corporation’s ownership interest.

- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
5.2.2. Summary of Building and Leasing of Investment Real Estate
RegionProperty nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho (Note 8)
Daiwa A Hamamatsucho
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho (Note 8)
Daiwa Shimbashi 510
Daiwa Tsukijiekimae
Daiwa Tsukiji
Daiwa Tsukishima
Daiwa Nihonbashi
Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Five Central
Wards ofDaiwa Kojimachi 4-chomeTokyo
Daiwa Onarimon
Shinjuku Maynds Tower(Note 9)Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho Building(Note 8)Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi
Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya
Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome(Note 8)LAQUAS Higashi Shinjuku

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

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

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

July 1963

8,114.85

7,715.7826

95.0

371,555

Aug. 1972

2,032.11

2,032.11

7

100.0

94,457

Oct. 1987

9,619.67

9,537.85

54

99.1

257,404

Sept. 1990

2,715.54

2,304.37

5

84.8

127,380

June 1985

3,657.43

3,657.432

100.0(Not disclosed)

July 1993

3,663.38

3,663.38

12

100.0

135,078

Dec. 1997

2,198.61

2,198.61

4

100.0

74,785

Nov. 1996

2,386.48

2,386.48

6

100.0

86,155

July 1996

2,137.53

2,137.531

100.0(Not disclosed)

Apr. 1974

2,595.76

2,595.76

7

100.0

66,205Jan. 1996

2,659.59

2,659.59

6

100.0

58,617Jan. 1990

1,487.44

1,487.445

100.0

51,726

July 1996

8,425.69

8,425.69

4

100.0

270,637

Apr. 1993

2,850.81

2,850.818

100.0

84,185

Apr. 1984

1,697.88

1,697.88

10

100.0

55,571

Oct. 1974

3,265.83

3,265.83

10

100.0

92,251

Oct. 1987

2,695.31

2,695.31

7

100.0

86,137

Apr. 1973

11,614.92

11,614.92

8

100.0

355,219

Sept. 1995

22,771.98

22,738.68

39

99.8

1,861,818

Aug. 2006

2,480.65

2,480.65

5

100.0

126,961

Mar. 1985

2,379.31

2,379.318

100.0

64,968Mar. 1997

3,164.26

3,164.26

7

100.0

106,977

July 1993

4,815.84

4,815.84

11

100.0

174,861

Apr. 2010

5,899.11

5,899.111

100.0(Not disclosed)

Feb. 2010

2,889.34

2,889.34

8

100.0

104,483

Oct. 2002

13,960.87

13,960.87

11

100.0

742,540

May 2010

2,143.08

2,143.08

5

100.0

57,230Jan. 2012

6,751.31

6,720.8117

99.5

370,014

Sept. 1990

8,746.48

8,746.48

19

100.0

335,679

Dec. 1988

6,329.00

6,329.00

7

100.0

246,718

Sept. 2009

13,234.39

13,192.63

11

99.6

466,978

Dec. 1997

2,951.70

2,951.701

100.0(Not disclosed)

Aug. 2010

7,498.33

7,498.334

100.0

226,481- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
StructureandRegionProperty namenumber offloors(Note 1)
S / RC
Daiwa Aoyama
B1 / 7F
RC
Shinsen Place (Note 8)
B1 / 9FS / SRC
Glass City Shibuya
B1 / 11F
S / SRC /Daiwa River GateRC
B2 / 20FS / SRC
Daiwa Hatchobori ekimae
B1 / 10F
Daiwa Hatchobori ekimae
SRC
West
B1 / 9F
SRC / RC /Daiwa Nishi-Shinjuku
S
B2 / 11F
Kirin Nihonbashi Building
S / SRC
7F(Note 8)Daiwa Higashi-nihonbashi
S
7F
Building
Square Daikanyama Building
S
6F(Note 8)RC
Shinjuku West Building
4F
Daiwa Kanda Mikura-cho
SRC
B1 / 7F
Building
S
Daiwa Kanda East
9F
Total for Five Central Wards of Tokyo (46 properties)
SRC / S
Daiwa Higashi-Ikebukuro
B1 / 9F
SRC
Daiwa Shinagawa North
B1 / 11F
S / RC
Daiwa Osaki 3-chome
B1 / 6F
S / SRC
Daiwa Kamiooka
B3 / 7F
GreaterTokyo
S / SRC
Integral Tower (Note 10)
B2 / 18FS / SRC
Daiwa Meguro Square
B2 / 14F
SRC
Daiwa Ogikubo
B1 / 7F
CONCURRED Yokohama
S / SRC(Note 11)
B1 / 20F
Total for Greater Tokyo (8 properties)
Daiwa Meieki
S
Major(Note 12)
12F
Regional
S / SRC
CitiesDaiwa Kitahama
B1 / 16F
Total for Major Regional Cities (2 properties)
Total (56 properties)

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

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

Nov. 2001

4,426.10

4,426.10

7

100.0

248,326

Sept. 2001

2,811.35

2,811.351

100.0(Not disclosed)

Feb. 2004

8,566.73

8,566.73

9

100.0

419,281Feb. 1994

32,055.85

31,873.76

92

99.4

1,035,249

Feb. 2006

2,622.42

2,622.429

100.0

80,096

Feb. 1996

1,723.15

1,723.15

8

100.0

46,583

Aug. 1991

6,967.61

6,967.617

100.0

335,754

Feb. 1999

5,630.17

5,630.171

100.0(Not disclosed)

Mar. 2008

5,015.88

5,015.88

5

100.0

170,674

Mar. 2001

1,588.35

1,588.351

100.0(Not disclosed)

Mar. 1989

1,120.58

1,120.58

8

100.0

38,098Jan. 1991

1,719.51

1,719.51

7

100.0

46,530Feb. 2005

3,918.02

3,599.56

4

91.8

87,622

258,000.20

256,502.03

495

99.4

10,459,577

June 1993

4,461.47

4,461.478

100.0

127,028

July 1991

6,548.17

6,548.17

12

100.0

191,154

Sept. 2007

1,786.06

1,786.06

5

100.0

65,424

May 2011

2,630.30

2,630.30

9

100.0

93,325June 1993

17,778.14

17,778.14

9

100.0

592,062

July 2009

3,519.50

3,519.50

16

100.0

148,235

Nov. 1990

3,849.63

3,849.63

12

100.0

120,889

Feb. 2008

28,052.98

26,167.53

32

93.2

735,742

68,626.25

66,740.80

103

97.2

2,073,861

Dec. 2007

-

-

-

-

24,729Feb. 2008

13,517.62

13,517.62

8

100.0

310,496

13,517.62
340,144.07

13,517.62
336,760.45

8
606

100.0
99.0

335,226
12,868,665(Note 1) “Structure and number of floors” are the entries in the real estate registry of the building of the applicable
investment real estate property. “S” refers to steel-framed structure, “RC” refers to reinforced concrete structure,“SRC” refers to steel-framed reinforced concrete structure, “B” refers to floors below ground and “F” refers tofloors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment realestate property.
(Note 3) “Leasable floor area” represents the floor area of the building of the applicable property that is leasable, notincluding the leasable area of the land (including level parking space), and is the floor area indicated in the lease
contract, etc. as of May 31, 2018.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease agreements, etc. executedwith end-tenants as of May 31, 2018.
(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.

- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period(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 25th Fiscal Period, rounded down to the nearest thousand yen.
(Note 8) Not shown for such reasons as consent was not obtained from major tenants to disclose the rent revenue during
current period for the properties.
(Note 9) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the co-ownershipinterest corresponding to three-sevenths of the entire property. Accordingly, leasable floor area and leased floor area
are the floor areas corresponding to three-sevenths of the entire building. On February 28, 2018, the three-sevenths
co-ownership out of the six-sevenths co-ownership of the property was divested. Rent revenue during current period
uses a figure for the six-sevenths co-ownership before the divestment date and that for the three-sevenths
co-ownership after the divestment date.
(Note 10) The buildings consist of three registrations. Of these, the details of the major building are shown here.
(Note 11) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the quasi
co-ownership interest corresponding to 75% of the entire property. Accordingly, leasable floor area and leased floorarea are the floor areas corresponding to 75% of the entire building.
(Note 12) The property was divested on December 20, 2017. This is reflected in the totals for the number of properties and therent revenue during current period.

- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A. Scheduled Capital Expenditures for the 25th Fiscal Period

The following are the principal capital expenditures arising from renovation construction work, etc. currently planned forexisting portfolio properties. Please note that the expected construction amount includes portions that are expensed as aseparate account item of accounting costs.
Name of real estate
properties(Location)
Daiwa Akasaka(Minato-ku, Tokyo)
Integral Tower(Suginami-ku, Tokyo)
Daiwa Shibuya
Miyamasuzaka(Shibuya-ku, Tokyo)

Daiwa Onarimon(Minato-ku, Tokyo)
Kirin Nihonbashi Building(Chuo-ku, Tokyo)

Expected construction amount (million yen)
Scheduled
implementation
Amount paid
Total amount
Total amountperiodduring current period
already paid
From: Nov. 2016
－
654
1,084
To Nov. 2018
From: Jun. 2018－－986
To Nov. 2019

PurposeUpgrading of air-conditioning system
Upgrading of air-conditioning system(West side)
Repair of exterior walls
Upgrading of air-conditioning system
Changing lighting in exclusive areas to
LED (green leasing)

From:
To

Mar. 2018
Dec. 2018

From:
To
From:
To

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

256

15

4

235

－

－

181

－

－

B. Capital Expenditures during the 25th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the25th Fiscal Period. Capital expenditures for the 25th Fiscal Period amounted to 1,564 million yen and, when combinedwith the 505 million yen in repair expenses charged to the 25th Fiscal Period expenses, totals 2,069 million yen in
construction work were implemented.
Name of real estate properties(Location)
Integral Tower(Suginami-ku, Tokyo)
Integral Tower(Suginami-ku, Tokyo)

E SPACE TOWER(Shibuya-ku, Tokyo)
Other

PurposeConstruction amount paid
(million yen)

PeriodUpgrading of air-conditioning system
Construction of power receiving and transforming facility
Upgrading of air-conditioning system

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

Mar. 2017
Apr. 2018
Mar. 2017
Dec. 2017
Mar. 2018
May 2018

914
178
91
380
1,564

Total

C. Reserve Amount for Long-Term Repair Plans (Reserve for Repairs)
The Investment Corporation sets aside the following reserve for repairs from cash flows during the fiscal period for thepayment of future major repairs.
(Unit: million yen)
21st
22nd
23rd
24th
25th
FiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscal period[From: Dec. 1, 2015
To: May 31, 2016]

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

1,060

1,843

2,043

1,900

1,839

1,255

524

84

1,417

－

472

324

227

1,478

263

1,843

2,043

1,900

1,839

1,576

- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
5.2.4. Summary of Estimated Price at End of Period (As of May 31, 2018)

Property nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho
Daiwa A Hamamatsucho (Note2)
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho
Daiwa Shimbashi 510
Daiwa Tsukijiekimae (Note 3)
Daiwa Tsukiji
Daiwa Tsukishima
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note4)
Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho Building
Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Daiwa Aoyama
Shinsen Place
Glass City Shibuya
Daiwa River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Daiwa Nishi-Shinjuku
Kirin Nihonbashi Building
Daiwa Higashi-nihonbashi
Building
Square Daikanyama Building(Note 5)
Shinjuku West Building
Daiwa
Kanda
Mikura-cho

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

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

Cap rate(%)

DCF method
Price(million yen)

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

17,400
3,840
7,870
4,640
3,840

17,800
3,850
7,900
4,700
3,890

3.5
3.5
4.0
3.8
4.4

17,000
3,820
7,850
4,570
3,780

3,610

3,670

3.7

3,580

3.5

3.9

2,460
3,110
2,860
2,530
2,000
1,610
10,500
2,660
1,930
3,450
2,810
13,700

2,500
3,180
2,900
2,550
1,990
1,610
10,600
2,710
1,970
3,500
2,830
14,000

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

2,420
3,080
2,840
2,500
2,010
1,610
10,400
2,600
1,890
3,390
2,780
13,400

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

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

62,600147,000

3.2

144,000

3.0

3.4

5,190
2,260
3,620
6,570
8,170
5,060
33,5002,560
15,60014,0009,350
16,6006,040
10,80012,4006,720
18,30030,9003,320
1,850
15,800
8,290

5,290
2,270
3,690
6,720
8,320
5,190
34,2002,590
15,90014,3009,490
16,9005,960
11,10012,7006,820
18,40031,0003,450
1,920
16,400
8,460

3.7
4.2
3.9
3.5
3.3
3.3
3.3
3.9
3.2
3.2
3.6
3.8
3.7
3.3
3.2
3.3
3.5
4.0
3.5
3.6
3.3
4.0

5,090
2,240
3,590
6,510
8,100
5,010
32,7002,550
15,40013,9009,210
16,3006,070
10,60012,2006,670
18,10030,7003,260
1,820
15,600
8,120

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

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

6,780

6,950

3.9

6,700

3.7

4.1

2,620

2,650

3.4

2,600

3.4

3.6

1,230
1,710

1,240
1,740

3.7
4.0

1,220
1,690

3.5
4.0

3.9
4.2

- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period

Property name

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

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

Cap rate(%)

DCF method
Price(million yen)

Discount Terminalrate
cap rate(%)(%)

Building
Daiwa Kanda East
5,120
5,140
3.9
5,100
3.5
3.9
Daiwa Higashi-Ikebukuro
4,050
4,110
4.1
4,030
3.9
4.3
Daiwa Shinagawa North
6,170
6,270
4.2
6,060
4.0
4.4
Daiwa Osaki 3-chome
2,340
2,370
3.8
2,330
3.6
4.0
Daiwa Kamiooka
2,750
2,760
4.5
2,740
4.3
4.7
Integral Tower
20,50020,8003.7
20,400
3.5
3.9
Daiwa Meguro Square
6,810
6,970
3.5
6,740
3.3
3.7
Daiwa Ogikubo
4,540
4,620
3.9
4,500
3.7
4.1
CONCURRED Yokohama
39,40040,8004.3
38,8004.1
4.5(Note 6)
Daiwa Kitahama
11,70012,0003.8
11,600
3.6
4.0
Total
506,040
598,640
581,770(Note 1) “Estimated price at end of period” is the price as of May 31, 2018 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 3rd fiscal year (4.1% for the 2nd fiscal year).
(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment
Corporation’s ownership interest, and the price indicated by the direct capitalization method and price indicated by
the DCF method are the prices pertaining to the entire Property.
(Note 5) Discount rate for Square Daikanyama Building is the figure after the 11th fiscal year (3.5% up to the 10th fiscal
year).
(Note 6) For CONCURRED Yokohama, Price indicates a price pertaining to the Investment Corporation’s ownershipinterest.

- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
5.2.5. Status of Income (Loss), etc. of Individual Properties
The following table lists the status of income (loss), etc. of each property for the 25th Fiscal Period (from December 1,
2017 to May 31, 2018). Income (loss) information is presented in accordance with “3. Financial Statements; 3.7. Notes to
Significant Accounting Policies” outlined earlier.
RegionProperty name

Daiwa
Ginza

Daiwa
Ginza Annex

Daiwa
Shibaura

Daiwa
MinamiAoyama

Daiwa
Sarugakucho(Note 3)Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

Investment ratio (%)

14,100

3,050

8,265

4,550

3,190

3.2

0.7

1.9

1.0

0.7

Carrying amount (million yen)

13,064

2,767

8,014

4,425

3,194

Estimated price at end of period(million yen)

17,400

3,840

7,870

4,640

3,840

Total number of tenants (Note 1)

26

7

54

5

2

Leasable floor area (m2)

8,114.85

2,032.11

9,619.67

2,715.54

3,657.43

Leased floor area (m2)

7,715.78

2,032.11

9,537.85

2,304.37

3,657.43

End of May 2016

93.9

100.0

99.1

84.8

100.0

End of Nov. 2016

94.9

100.0

97.6

100.0

100.0

End of May 2017

96.9

100.0

90.3

100.0

100.0

End of Nov. 2017

89.3

100.0

99.1

100.0

100.0

End of May 2018

95.0

100.0

99.1

84.8

100.0

182

182

182

182

182

380,455

94,457259,169

137,607(Not disclosed)

Rent revenue – real estate

371,555

94,457

257,404

127,380(Not disclosed)

Other lease business revenue

8,900

－

1,764

10,226(Not disclosed)

Total property leasing expenses (B)(thousand yen)

174,735

31,59989,61839,135(Not disclosed)

Consignment expenses

24,081

5,304

16,1485,865(Not disclosed)

Utilities expenses

24,334

5,789

18,7586,284(Not disclosed)

Taxes and dues

27,911

9,104

19,588

11,931(Not disclosed)

369

86

338

134

(Not disclosed)

Repair expenses

11,331

1,013

5,080

646

(Not disclosed)

Depreciation (C)74,864

10,30029,682

14,273(Not disclosed)

20－(Not disclosed)

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Non-life insurance expenses

Other lease business expenses

Reference
information

11,841－

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

205,72062,858

169,551

98,471(Not disclosed)

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

280,584

73,158199,234

112,745

45,607

Capital expenditures (F) (thousand
yen)

4,716

1,853

3,359

1,904

480

NCF [(E) – (F)] (thousand yen)

275,868

71,305

195,874

110,841

45,127

Expense rate (%) [(B) ÷ (A)]

45.93

33.45

34.58

28.44

(Not disclosed)

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

86,510347,210

185,215

171,199

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

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property nameDaiwa A
Hamamatsucho

Daiwa Jingumae

Daiwa
Shibadaimon

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Daiwa Misakicho Daiwa Shimbashi(Note 3)510
Oct. 2005

Oct. 2005

Acquisition price (million yen)

2,865

2,800

2,578

2,346

2,080

Investment ratio (%)

0.7

0.6

0.6

0.5

0.5

Carrying amount (million yen)

2,777

2,711

2,398

2,151

2,141

Estimated price at end of period(million yen)

3,610

2,460

3,110

2,860

2,530

Total number of tenants (Note 1)

12

4

6

1

7

Leasable floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,595.76

Leased floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,595.76

End of May 2016

100.0

100.0

100.0

100.0

88.0

End of Nov. 2016

100.0

100.0

100.0

100.0

99.6

End of May 2017

100.0

100.0

100.0

100.0

99.6

End of Nov. 2017

100.0

100.0

100.0

100.0

89.4

End of May 2018

100.0

100.0

100.0

100.0

100.0

182

182

182

182

182

135,078

74,785

86,155(Not disclosed)

66,205

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Reference
information

135,078

74,785

86,155(Not disclosed)

66,205

Other lease business revenue

－

－

－

(Not disclosed)－

Total property leasing expenses (B)(thousand yen)

74,597

24,904

31,101(Not disclosed)

36,009Consignment expenses

10,352

4,058

7,114

(Not disclosed)

6,613

Utilities expenses

8,566

4,690

5,896

(Not disclosed)

5,039

Taxes and dues

8,770

6,357

6,254

(Not disclosed)

5,664

157

73

107

(Not disclosed)

109

Non-life insurance expenses
Repair expenses

2,231

496

291

(Not disclosed)

10,012

Depreciation (C)15,1199,221

11,436(Not disclosed)

8,570

Other lease business expenses

29,4007－(Not disclosed)－

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

60,48149,88055,054(Not disclosed)

30,195

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

75,60059,102

66,491

63,00538,765

Capital expenditures (F) (thousand
yen)

990

741

－

324

22,151

NCF [(E) – (F)] (thousand yen)

74,61058,36066,491

62,681

16,614

Expense rate (%) [(B) ÷ (A)]

55.22

33.30

36.10

(Not disclosed)

54.39

17,93913,473

12,795

10,752

12,070100,430

117,930

150,927

182,856

169,555

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 47 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Tsukijiekimae

Daiwa
Tsukiji

Daiwa
Tsukishima

Daiwa
Nihonbashi
Horidomecho

Daiwa Azabudai

Acquisition dateJan. 2006

Jan. 2006

Mar. 2006

May 2006

May 2006

Acquisition price (million yen)

1,560

1,240

7,840

2,520

1,600

Investment ratio (%)

0.4

0.3

1.8

0.6

0.4

Carrying amount (million yen)

1,289

1,141

6,888

2,465

1,516

Estimated price at end of period(million yen)

2,000

1,610

10,500

2,660

1,930

Total number of tenants (Note 1)

6

5

4

8

10

Leasable floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

Leased floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

End of May 2016

100.0

89.2

100.0

100.0

100.0

End of Nov. 2016

100.0

100.0

56.7

100.0

100.0

End of May 2017

100.0

100.0

100.0

100.0

100.0

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

Occupancy rate (%)
Leasing
information

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)(thousand yen)

58,61751,876

270,637

84,18556,444

Rent revenue – real estate

Income (loss)
information

58,61751,726

270,637

84,18555,571Other lease business revenue

－

150

－

－

872

Total property leasing expenses (B)(thousand yen)

28,472

18,820100,590

32,553

21,346

Consignment expenses

4,271

3,542

12,398

5,122

3,654

Utilities expenses

5,853

2,849

14,277

4,967

3,134

Taxes and dues

5,067

3,861

13,727

6,719

4,916

256

116

65

Non-life insurance expenses

86

55

Repair expenses

34

1,058

2,446

594

402

Depreciation (C)13,141

7,452

57,48415,032

9,173

Other lease business expenses

Reference
information

18

－

－

－

－

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

30,14533,055170,046

51,63135,097

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

43,28740,508

227,530

66,66444,271

Capital expenditures (F) (thousand
yen)

1,199

4,616

7,971

11,318

10,218

NCF [(E) – (F)] (thousand yen)

42,08835,892

219,559

55,34534,052

Expense rate (%) [(B) ÷ (A)]

48.57

36.28

37.17

38.67

37.82

10,4298,053

28,53013,738

10,140120,530

109,848

102,930

234,846

108,280

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

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property nameDaiwa Kyobashi

Acquisition dateJul. 2006

Daiwa Kojimachi
Daiwa Onarimon
4-chomeOct. 2006

Dec. 2006

Shinjuku Maynds
Tower(Note 4)

Daiwa
SHIBUYAEDGE

Jul. 2007 andNov. 2007

Jul. 2007

Acquisition price (million yen)

3,460

2,910

13,86066,9005,900

Investment ratio (%)

0.8

0.7

3.2

15.2

1.3

Carrying amount (million yen)

3,225

2,846

13,34864,538

5,655

Estimated price at end of period(million yen)

3,450

2,810

13,70062,6005,190

Total number of tenants (Note 1)

10

7

8

39

5

Leasable floor area (m2)

3,265.83

2,695.31

11,614.92

22,771.98

2,480.65

Leased floor area (m2)

3,265.83

2,695.31

11,614.92

22,738.68

2,480.65

End of May 2016

100.0

100.0

100.0

98.8

100.0

End of Nov. 2016

88.2

100.0

100.0

99.2

100.0

End of May 2017

87.9

100.0

100.0

96.6

100.0

End of Nov. 2017

87.9

100.0

100.0

96.6

100.0

End of May 2018

Occupancy rate (%)
Leasing
information

100.0

100.0

100.0

99.8

100.0

Number of days of asset management

182

182

182

182

182

Total property leasing revenue (A)(thousand yen)

92,251

86,137355,219

1,861,881

126,961

Rent revenue – real estate

Income (loss)
information

92,251

86,137355,219

1,861,818

126,961

Other lease business revenue

－

－

－

62

－

Total property leasing expenses (B)(thousand yen)

43,792

42,636

132,882

903,218

67,442

Consignment expenses

8,498

6,772

16,224

124,168

7,128

Utilities expenses

7,395

6,765

22,885201,302

6,991

Taxes and dues

7,110

14,94634,925

253,508

7,226

112

126

355

2,399

92

Non-life insurance expenses
Repair expenses

596

889

26,961

20,06829,404

Depreciation (C)20,027

13,137

31,529299,952

16,598Other lease business expenses

Reference
information

50

－

－

1,819

－

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

48,45943,501

222,337

958,662

59,518

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

68,48756,638

253,866

1,258,615

76,117

Capital expenditures (F) (thousand
yen)

1,018

15,972

10,55755,036－

NCF [(E) – (F)] (thousand yen)

67,46940,665

243,308

1,203,578

76,117

Expense rate (%) [(B) ÷ (A)]

47.47

49.50

37.41

48.51

53.12

14,85931,86575,490257,627

15,171

140,200

169,753459,880

4,460,870

62,460

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

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Kodenmacho

Acquisition dateAug. 2007

Daiwa Jimbocho

Daiwa
NishiShimbashi

Daiwa
Kayabacho
Building(Note 3)

Daiwa Jimbocho3-chomeMar. 2010

Aug. 2010

Mar. 2011

Mar. 2011

Acquisition price (million yen)

2,460

4,150

5,000

5,600

3,550

Investment ratio (%)

0.6

0.9

1.1

1.3

0.8

Carrying amount (million yen)

2,374

4,003

4,735

5,259

3,373

Estimated price at end of period(million yen)

2,260

3,620

6,570

8,170

5,060

Total number of tenants (Note 1)

8

7

11

1

8

Leasable floor area (m2)2,379.31

3,164.26

4,815.84

5,899.11

2,889.34

Leased floor area (m2)2,379.31

3,164.26

4,815.84

5,899.11

2,889.34

End of May 2016

100.0

100.0

100.0

100.0

100.0

End of Nov. 2016

100.0

100.0

100.0

100.0

100.0

End of May 2017

100.0

100.0

100.0

100.0

100.0

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

Occupancy rate (%)
Leasing
information

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)(thousand yen)

64,968106,977

174,861(Not disclosed)

115,919

64,968Rent revenue – real estate

Income (loss)
information

106,977

174,861(Not disclosed)

104,483

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

－

－

－

(Not disclosed)

11,436

23,464

49,95084,739(Not disclosed)

45,530Consignment expenses

4,059

6,228

16,351(Not disclosed)

9,694

Utilities expenses

4,458

7,078

11,005(Not disclosed)

6,459

Taxes and dues

3,642

10,89815,750(Not disclosed)

9,366

Non-life insurance expenses

82

118

214

(Not disclosed)

109

Repair expenses

666

4,297

6,432

(Not disclosed)

64

Depreciation (C)9,731

21,06934,985(Not disclosed)

19,836

822

260

－

(Not disclosed)－

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

41,50457,026

90,121(Not disclosed)

70,389

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

51,23578,096125,106

148,621

90,225

Capital expenditures (F) (thousand
yen)

490

470

2,747

－

－

NCF [(E) – (F)] (thousand yen)

50,74577,626

122,359

148,621

90,225

Expense rate (%) [(B) ÷ (A)]

36.12

46.69

48.46

(Not disclosed)

39.28

7,585

22,77932,18525,63919,653

187,580

125,988(Note 5)82,470

Other lease business expenses

Reference
information

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

100,234

128,200- 50 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
RegionProperty name

E-SPACE
TOWER

Daiwa
Nihonbashi
Hongokucho

shinyoncurumuDaiwa Akasaka

Daiwa Shibuya
Miyamasuzaka

Acquisition dateJul. 2011

May 2012

Dec. 2012 andApr. 2013

Aug. 2013

Sep. 2013

Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

24,000

1,721

9,650

9,200

7,000

5.5

0.4

2.2

2.1

1.6

Carrying amount (million yen)

23,610

1,592

9,685

9,422

7,200

Estimated price at end of period(million yen)

33,5002,560

15,60014,0009,350

Total number of tenants (Note 1)

Investment ratio (%)

11

5

17

19

7

Leasable floor area (m2)

13,960.87

2,143.08

6,751.31

8,746.48

6,329.00

Leased floor area (m2)

13,960.87

2,143.08

6,720.81

8,746.48

6,329.00

Occupancy rate (%)
Leasing
information

End of May 2016

100.0

100.0

100.0

100.0

100.0

End of Nov. 2016

96.8

100.0

100.0

100.0

100.0

End of May 2017

100.0

100.0

99.5

100.0

100.0

End of Nov. 2017

92.8

100.0

99.5

91.4

100.0

End of May 2018

100.0

100.0

99.5

100.0

100.0

182

182

182

182

182

742,540

57,230370,014335,679

246,718

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

Income (loss)
information

742,540

57,230370,014335,679

246,718

Other lease business revenue

－

－

－

－

－

Total property leasing expenses (B)(thousand yen)

247,524

26,956116,264

137,873

82,215

Consignment expenses

60,9785,582

22,46927,005

22,797

Utilities expenses

46,0493,171

21,96332,037

13,896

Taxes and dues

56,762

4,398

33,35733,15020,129

565

67

280

357

250

Non-life insurance expenses
Repair expenses

12,405461

2,050

17,9702,581

Depreciation (C)70,347

13,274

36,11627,35022,500

Other lease business expenses

Reference
information

416

－

25

－

60

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

495,015

30,273

253,750

197,805

164,502

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

565,363

43,548289,866

225,156

187,002

Capital expenditures (F) (thousandyen)

91,6901,623

14,302

48,5791,910

NCF [(E) – (F)] (thousand yen)473,672

41,925275,564

176,576

185,091

Expense rate (%) [(B) ÷ (A)]

33.33

47.10

31.42

41.07

33.32

119,252

9,055

70,37968,72942,224574,150

50,940166,089

430,612416,816

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 51 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
RegionProperty nameDaiwa Azabu
TerraceDaiwa Ebisu
4-chome(Note 3)LAQUAS
HigashiShinjuku

Daiwa Aoyama

Shinsen Place(Note 3)Acquisition dateJul. 2014

Dec. 2014

Dec. 2014

Mar. 2015

Mar. 2015

Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

14,000

4,135

8,450

9,800

4,800

3.2

0.9

1.9

2.2

1.1

Carrying amount (million yen)

14,080

4,254

8,484

10,031

4,890

Estimated price at end of period(million yen)

16,6006,040

10,80012,4006,720

Investment ratio (%)

Total number of tenants (Note 1)

11

1

4

7

1

Leasable floor area (m2)

13,234.39

2,951.70

7,498.33

4,426.10

2,811.35

Leased floor area (m2)

13,192.63

2,951.70

7,498.33

4,426.10

2,811.35

End of May 2016

94.9

100.0

100.0

91.4

100.0

End of Nov. 2016

99.6

100.0

100.0

100.0

100.0

End of May 2017

99.6

100.0

100.0

85.9

100.0

End of Nov. 2017

99.6

100.0

100.0

100.0

100.0

End of May 2018

99.6

100.0

100.0

100.0

100.0

182

182

182

182

182

466,978(Not disclosed)

226,481248,326(Not disclosed)

466,978(Not disclosed)

226,481248,326(Not disclosed)

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

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

Total property leasing expenses (B)(thousand yen)

161,239(Not disclosed)

85,25856,061(Not disclosed)

Consignment expenses

30,408(Not disclosed)

16,854

12,163(Not disclosed)

Utilities expenses

45,773(Not disclosed)

12,5006,841(Not disclosed)

Taxes and dues

31,725(Not disclosed)

20,334

12,710(Not disclosed)

Non-life insurance expenses

508(Not disclosed)

262

129

(Not disclosed)

Repair expenses

1,509(Not disclosed)

2,613

4,661

(Not disclosed)

Depreciation (C)51,314(Not disclosed)

32,466

19,554(Not disclosed)(Not disclosed)

Other lease business expenses

Reference
information－(Not disclosed)

226－

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

305,739(Not disclosed)

141,222

192,264(Not disclosed)

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

357,053

ሺ60,268)

173,689

211,819

116,938

Capital expenditures (F) (thousandyen)

17,748

3,210

222

－

323

NCF [(E) – (F)] (thousand yen)339,305

ሺ63,478)

173,467

211,819

116,615

Expense rate (%) [(B) ÷ (A)]

34.53

(Not disclosed)

37.64

22.58

(Not disclosed)

65,86019,232

41,872

26,892

17,099325,054

115,410

125,440

97,530112,510Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 52 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
RegionFive Central Wards of Tokyo
Glass City

Property nameDaiwa River Gate

ShibuyaAcquisition date

May 2015

Jun. 2015

Daiwa
Daiwa Hatchobori Daiwa Hatchobori
ekimaeekimae West
Nishi-Shinjuku
Sep. 2015

Sep. 2015

Mar. 2016

Acquisition price (million yen)

16,00028,000

2,871

1,647

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

3.6

6.4

0.7

0.4

3.1

15,97928,001

2,944

1,726

13,947

Estimated price at end of period(million yen)

18,30030,900

3,320

1,850

15,800Total number of tenants (Note 1)

9

92

9

8

7

8,566.73

32,055.85

2,622.42

1,723.15

6,967.61

8,566.73

31,873.76

2,622.42

1,723.15

6,967.61

End of May 2016

100.0

98.6

100.0

100.0

99.3

End of Nov. 2016

100.0

95.1

100.0

100.0

99.3

End of May 2017

100.0

90.3

100.0

100.0

99.3

End of Nov. 2017

100.0

98.1

100.0

100.0

100.0

End of May 2018

100.0

99.4

100.0

100.0

100.0

182

182

182

182

182

419,281

1,038,944

80,096

46,583335,754419,281

1,035,249

80,096

46,583335,7542

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

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

Income (loss)
information

Other lease business revenue

－

3,695

－

－

－

Total property leasing expenses (B)(thousand yen)

149,530

489,944

34,027

16,993

88,994

Consignment expenses

16,206

83,876

7,818

4,551

15,717

Utilities expenses

23,238

119,803

5,560

2,804

16,847

Taxes and dues

27,191

103,867

8,979

4,025

35,320Non-life insurance expenses

313

1,517

109

56

267

Repair expenses

49,525

14,606

1,248

315

2,483

Depreciation (C)33,054

166,152

10,3105,239

18,359Other lease business expenses

Reference
information

－

120

－

－

－

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

269,750

549,000

46,06829,589246,759

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

302,805

715,152

56,37934,829265,119

Capital expenditures (F) (thousandyen)－

54,698

824

1,464

8,224

NCF [(E) – (F)] (thousand yen)

302,805

660,453

55,55533,365

256,894

Expense rate (%) [(B) ÷ (A)]

35.66

47.16

42.48

36.48

26.51

56,600202,022

18,341

8,377

74,448202,340

1,970,900

114,190

84,620284,170

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 53 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
RegionProperty nameAcquisition date

Price
information

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

Jun. 2016

SquareDaikanyama
Building(Note 3)

Shinjuku West
Building

Daiwa Kanda
Mikura-cho
Building

Jun. 2016

Jul. 2016

Dec. 2016

Acquisition price (million yen)

8,180

6,370

2,280

942

1,592

Investment ratio (%)

1.9

1.4

0.5

0.2

0.4

Carrying amount (million yen)

8,278

6,339

2,383

981

1,601

Estimated price at end of period(million yen)

8,290

6,780

2,620

1,230

1,710

Total number of tenants (Note 1)

1

5

1

8

7

Leasable floor area (m2)

5,630.17

5,015.88

1,588.35

1,120.58

1,719.51

Leased floor area (m2)

5,630.17

5,015.88

1,588.35

1,120.58

1,719.51

End of May 2016

100.0

－

－

－

－

End of Nov. 2016

100.0

100.0

100.0

100.0

－

End of May 2017

100.0

100.0

100.0

100.0

69.5

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

182

182

182

182

182

Occupancy rate (%)
Leasing
information

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

Income (loss)
information(Not disclosed)

170,674(Not disclosed)

38,09846,530Rent revenue – real estate(Not disclosed)

170,674(Not disclosed)

38,09846,530

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

Total property leasing expenses (B)(thousand yen)

(Not disclosed)

58,492(Not disclosed)

33,48816,393

Consignment expenses(Not disclosed)

11,677(Not disclosed)

3,204

5,663

Utilities expenses(Not disclosed)

9,309(Not disclosed)

2,467

2,109

Taxes and dues

(Not disclosed)

11,337(Not disclosed)

3,113

3,373

Non-life insurance expenses(Not disclosed)

178(Not disclosed)

36

47

Repair expenses(Not disclosed)

863(Not disclosed)

22,417248

Depreciation (C)(Not disclosed)

25,126(Not disclosed)

2,248

4,952

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

112,182(Not disclosed)

4,610

30,136

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

108,940

137,308

49,681

6,859

35,089

Capital expenditures (F) (thousand
yen)

1,340

542

－

－

1,179

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

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

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

107,600

136,765

49,681

6,859

33,910(Not disclosed)

34.27(Not disclosed)

87.90

35.23

22,124

23,139

9,673

6,224

6,950

216,720

158,880

45,044

79,33074,026- 54 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period

RegionFive Central
Wards ofTokyo

Greater Tokyo

Property nameDaiwa Kanda
East

Daiwa
Daiwa Shinagawa
Higashi-Ikebukur
NorthoAcquisition dateJan. 2018

Acquisition price (million yen)Price
information

Oct. 2005

4,200

Jul. 2007

2,958

7,710

Daiwa Osaki
3-chomeDaiwa Kamiooka

Sep. 2012

Mar. 2013

1,650

2,000

Investment ratio (%)

1.0

0.7

1.8

0.4

0.5

Carrying amount (million yen)

4,249

2,661

7,169

1,605

1,911

Estimated price at end of period(million yen)

5,120

4,050

6,170

2,340

2,750

Total number of tenants (Note 1)

4

8

12

5

9

Leasable floor area (m2)

3,918.02

4,461.47

6,548.17

1,786.06

2,630.30

Leased floor area (m2)

3,599.56

4,461.47

6,548.17

1,786.06

2,630.30

End of May 2016

－

100.0

100.0

78.9

89.8

End of Nov. 2016

－

100.0

100.0

100.0

93.7

End of May 2017

－

100.0

100.0

100.0

100.0

End of Nov. 2017

－

100.0

100.0

100.0

100.0

End of May 2018

Occupancy rate (%)
Leasing
information

Income (loss)
information

91.8

100.0

100.0

100.0

100.0

Number of days of asset management

140

182

182

182

182

Total property leasing revenue (A)(thousand yen)

89,922

127,028

191,154

65,424

93,325

Rent revenue – real estate

87,622

127,028

191,154

65,424

93,325

Other lease business revenue

2,300

－

－

－

－

Total property leasing expenses (B)(thousand yen)

29,86760,954

86,77922,70438,712

Consignment expenses

8,581

11,097

17,544

3,712

5,680

Utilities expenses

5,514

13,246

14,418

3,122

7,981

Taxes and dues

8

8,580

18,327

3,922

6,283

Non-life insurance expenses

99

188

290

58

100

Repair expenses

2,185

4,003

1,261

480

600

Depreciation (C)13,47823,83734,937

11,40818,065

－

－

－

－

－

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

60,054

66,074

104,374

42,71954,612

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

73,53389,911

139,31254,12872,678

Capital expenditures (F) (thousand yen)

6,089

6,610

19,084339－

NCF [(E) – (F)] (thousand yen)

67,443

83,301

120,227

53,78972,678

Expense rate (%) [(B) ÷ (A)]

33.22

47.98

45.40

34.70

41.48

－

17,05936,8608,012

12,830133,611228,260

331,160

54,91563,700

Other lease business expenses

Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2018 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 55 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
Major
Regional
CitiesRegionGreater Tokyo

Property name

Integral Tower

Daiwa Meguro
CONCURRED Daiwa Meieki
Daiwa Ogikubo
SquareYokohama(Note 6)

Acquisition date

May 2014

May 2015

Acquisition price (million yen)
Investment ratio (%)

Jul. 2016

Jan. 2018

Feb. 201315,220

5,600

3,800

38,100－Price
information Carrying amount (million yen)

3.5

1.3

0.9

8.7

－

15,917

5,531

3,989

38,315－

Estimated price at end of period(million yen)

20,500

6,810

4,540

39,400－Total number of tenants (Note 1)

9

16

12

32

－

Leasable floor area (m )17,778.14

3,519.50

3,849.63

28,052.98－

Leased floor area (m2)

17,778.14

3,519.50

3,849.63

26,167.53－

End of May 2016

99.5

100.0

－

－

100.0

End of Nov. 2016

100.0

96.1

100.0

－

100.0

End of May 2017

100.0

100.0

100.0

－

100.0

End of Nov. 2017

100.0

100.0

100.0

－

97.0

End of May 2018

100.0

100.0

100.0

93.2

－

182

182

182

141

20

592,062

148,235

120,889735,742

26,729592,062

148,235

120,889735,742

24,729

－

－

－

－

2,000

343,767

56,59838,954204,186

33,414

Consignment expenses

57,871

11,547

10,95557,7703,250

Utilities expenses

71,746

7,948

5,752

47,026

3,531

Taxes and dues

44,423

13,5237,772

118,8402

Occupancy rate (%)
Leasing
information

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

Income(loss)
information

Non-life insurance expenses

743

147

126

594

34

Repair expenses

81,822

640

1,466

5,132

1,808

Depreciation (C)86,72922,79012,881

93,310

5,949

430

－

－

350

－

248,295

91,636

81,934

531,555

ሺ6,685)

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

335,025

114,427

94,816

624,866

ሺ736)

1,105,627

1,184

1,715

8,154

－

NCF [(E) – (F)] (thousand yen)

ሺ770,601)

113,242

93,100616,711

ሺ736)

58.06

38.18

32.22

27.75

－

89,53527,38916,100－－834,324

110,053

161,340

718,980－

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property
Reference tax, etc. for fiscal 2018 (thousand
information yen)
Estimated long-term repair
expenses(thousand yen) (Note 2)- 56 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period
RegionMajor Regional Cities

Property nameDaiwa Kitahama

Acquisition dateAug. 2014

Acquisition price (million yen)

9,481

Investment ratio (%)

2.2

Price
information Carrying amount (million yen)

9,276

Estimated price at end of period(million yen)

11,700Total number of tenants (Note 1)

8

Leasable floor area (m2)

13,517.62

Leased floor area (m2)

13,517.62

Occupancy rate (%)
Leasing
information

End of May 2016

100.0

End of Nov. 2016

100.0

End of May 201798.8

End of Nov. 2017

100.0

End of May 2018

100.0

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

Income(loss)
information

182
310,496
310,496－
153,503

Consignment expenses

33,019

Utilities expenses

29,902

Taxes and dues

32,770Non-life insurance expenses

492

Repair expenses

3,340

Depreciation (C)53,881Other lease business
expenses
Operating income (loss) fromproperty leasing (D) [(A) – (B)](thousand yen)
NOI (E) [(D) + (C)] (thousandyen)
Capital expenditures (F) (thousandyen)

96
156,993
210,874
9,446

NCF [(E) – (F)] (thousand yen)

201,428

Expense rate (%) [(B) ÷ (A)]49.44

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

67,667

264,054- 57 -

Daiwa Office Investment Corporation (8976) Financial Report for the 25th Fiscal Period(Note 1) Total number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimated to arise
over the 12-year period from the 1st year to the 12th year as stated in the building investigation diagnosis report.
(Note 3) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc. forthe property.
(Note 4) The three-sevenths co-ownership out of the six-sevenths co-ownership of Shinjuku Maynds Tower was divested on
February 28, 2018.
(Note 5) Estimated long-term repair expenses of “Daiwa Kayabacho Building” are the total amount of repair expenses andrenewal expenses estimated to arise over the 10-year period from the 1st year to the 10th year as stated in thebuilding investigation diagnosis report.
(Note 6) Daiwa Meieki Building was divested on December 20, 2017.

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