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 15th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:July 19, 2013
Daiwa Office Investment Corporation
Stock Exchange Listing: TSE
8976
URL: http://www.daiwa-office.co.jp
Nobuaki Omura, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Akira Yamanouchi, President and Representative Director
Yuji Shinotsuka, Vice President and Representative Director
TEL: +81-3-6215-9649
and Head of Finance Department

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

August 26, 2013
August 12, 2013

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 15th Fiscal Period
15th Fiscal Period: Fiscal period ended May 2013 (from December 1, 2012 to May 31, 2013)
14th Fiscal Period: Fiscal period ended November 2012 (from June 1, 2012 to November 30, 2012)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
15thPeriod14th
PeriodOperating income

Ordinary income

Net income¥7,615 million

0.6%¥3,308 million

5.1%¥2,590 million

9.5%¥2,589 million

9.3%¥7,566 million

1.8%¥3,146 million

1.8%¥2,364 million

16.9%¥2,369 million

17.2%

Net income
per unit
15th
Period14th
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥6,541

1.3%

0.8%

34.0%

¥5,986

1.2%

0.7%

31.3%

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

15th
Period14th
PeriodTotal
distribution
amountDistribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payoutDistribution
amount to
net assets¥6,542¥2,589 million¥0¥– million

100.0%

1.3%¥5,986¥2,369 million¥0¥– million

100.0%

1.2%(3) Financial Position
15th
Period14th
PeriodUnitholders’ equity tototal assets

Net assets
per unit

Total assets

Net assets¥342,572 million¥201,345 million

58.8%¥508,707¥325,665 million¥201,117 million

61.8%¥508,132-1-

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period(4) Cash FlowsNet cashprovided by (used in)operating activities
15th
Period14th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥3,349 million(¥17,187 million)¥13,848 million¥16,057 million¥3,465 million(¥2,889 million)(¥1,330 million)¥16,046 million

2. Management Status Forecasts for the 16th Fiscal Period
16th Fiscal Period: Fiscal period ended November 2013 (from June 1, 2013 to November 30, 2013)[% figures show the period-over-period increase (decrease)]

Operating revenue
16th
Period¥8,242 million

8.2%

Operating income¥3,576 million

8.1%

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

16th
Period(Reference)

Ordinary income¥2,852 million

10.1%

Net income¥2,850 million

10.1%

Distribution amount in excess of earnings per unit

¥7,200¥0

Estimated net income per unit for the 16th Fiscal Period: ¥7,200

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) Number of Investment Units Issued and Outstanding(i) Number of investment units issued and outstanding at end of period (including treasury units):
15th Fiscal Period: 395,798 units
14th Fiscal Period: 395,798 units(ii) Number of treasury units at end of period:
15th Fiscal Period:– units
14th Fiscal Period:– units(Note) Please refer to “Notes to Per Unit Information” on page 28 for the number of investment units used as the basis for calculating
the net income per unit.
*Explanation on the Appropriate Use of the Management Status Forecasts, and Other Matters of Special Note
The forecast figures set forth herein are the current prospects based on information currently available to the Investment Corporation andcontain elements of uncertainty. Accordingly, the actual operating revenue, operating income, ordinary income, net income anddistribution amount per unit may vary due to changes in the status. Moreover, the forecasts set forth herein should not be construed as aguarantee of distribution amounts. For details on the assumptions underlying the forecast figures above, please refer to “2. Management
Policy and Management Status; 2.2. Management Status; Assumptions for the Management Status Forecasts for the 16th Fiscal Period
and 17th Fiscal Period” on page 10.

-2-Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
Disclosure is omitted because there are no significant changes from the “Structure of the Investment Corporation”
set out in the most recent periodic securities report (yuka shoken hokokusho) (submitted on February 22, 2013).

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 22, 2013) as at the date of this document.
2.2. Management Status(1) Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Daiwa Office Investment Corporation (former name DA Office Investment Corporation) (the “Investment
Corporation”) was established on July 11, 2005 in accordance with the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate AssetManagement Co., Ltd. (former name K.K. daVinci Select) (the “Asset Manager”) as the organizer. After its
establishment, the Investment Corporation implemented an additional issuance of investment units through apublic 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 332,086 million yen as of the last day of May 2013.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets
based on a clear portfolio development policy of specializing in investment in office buildings, with aparticular focus on investment in a total floor area of more than about 2,000m2 situated in downtown Tokyo,
as well as through dedicated efforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment (from December 2012 to May 2013)
The Japanese economy during the fiscal period under review saw economic policies, centering on monetary
policies, lead to rapid correction of the appreciation of the yen and rise of stock prices. In addition,
improvement in consumer confidence was accompanied by recovery in personal consumption as well as
improvement in corporate earnings and employment.
In the office building leasing market in central Tokyo, the vacancy rate was on a decreasing trend, butthere were signs of the decrease ceasing in the second half. On the other hand, office rent showed increase forlarge buildings depending on area and was on a slightly downward trend as a market on the whole.
In the office building transaction market, with the ongoing favorable equity financing environment andpositive lending attitude of financial institutions, property acquisitions by real estate companies and funds(including J-REITs) increased substantially.
b. Management Performance
In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sales ofproperties) over the medium to long term, the Investment Corporation continued to work on “external
growth,” which aims to boost revenue through acquisition of properties, and “internal growth,” which aims tomaximize income generating from existing properties.
Concerning external growth, the Investment Corporation acquired “shinyon curumu Building” (acquisition
price: 9,650 million yen) in a partly vacant state in December 2012 and April 2013. The Investment
Corporation also acquired “Honshu Meieki Building” (acquisition price: 5,300 million yen) in February 2013
and “Kamiooka Eye Mark Building” (acquisition price: 2,000 million yen) in March 2013. Additional
acquisition of the compartmentalized ownership interest, etc. of “Sunline Building No. 7” (acquisition price:
230 million yen) was also made, resulting in the Investment Corporation holding all of the property’s
compartmentalized ownership interest, etc. As a result, the Investment Corporation’s assets undermanagement as of the end of the 15th Fiscal Period (May 31, 2013) totaled 41 properties, the sum total ofacquisition prices of which amounted to 332,086 million yen.

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Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
Concerning internal growth, while the office leasing market weakened, the Investment Corporation did
acquire a low-occupancy property. Nevertheless, striving to enhance tenant satisfaction levels and conducting
proactive leasing, such as strengthening collaboration with leasing brokers and property managers, proved
effective in increasing the floor area contracted for tenancy in the 15th Fiscal Period to a level above that ofthe previous fiscal period. As a result, the occupancy rate as of the end of the 15th Fiscal Period (May 31,2013) was 95%.
C. Overview of Capital Procurementa. Status of Interest-Bearing Liabilities(i) Procurement of Capital for New Property Acquisitions
In the 15th Fiscal Period, the Investment Corporation made the following borrowings to fund the acquisitionof shinyon curumu Building, Honshu Meieki Building and Kamiooka Eye Mark Building (each a newproperty) and the compartmentalized ownership interest, etc. portion of the existing property Sunline
Building No. 7.
• A total amount of 4,000 million yen was borrowed from Development Bank of Japan Inc. and Shinsei
Bank, Ltd. on December 3, 2012 to fund the acquisition of a new property (shinyon curumu Building;
December 3, 2012 delivery portion).
• A total amount of 5,500 million yen was borrowed from Sumitomo Mitsui Banking Corporation,
Sumitomo Mitsui Trust Bank, Limited, Tokio Marine & Nichido Fire Insurance Co., Ltd., The
Yamaguchi Bank, Ltd. and The Higashi-Nippon Bank, Limited on February 1, 2013 to fund theacquisition of a new property (Honshu Meieki Building; February 1, 2013 delivery).
• 2,000 million yen was borrowed from Resona Bank, Ltd. on March 1, 2013 to fund the acquisition of anew property (Kamiooka Eye Mark Building; March 1, 2013 delivery).
• 200 million yen was borrowed from Fukoku Mutual Life Insurance Company on March 29, 2013 to fundthe acquisition of the compartmentalized ownership interest, etc. portion of the existing property Sunline
Building No. 7 (March 29, 2013 and May 29, 2013 delivery).
• A total amount of 4,500 million yen was borrowed from Sumitomo Mitsui Trust Bank, Limited,
Development Bank of Japan Inc., Aozora Bank, Ltd., The Gunma Bank, Ltd. and The Musashino Bank,
Ltd. on April 12, 2013 to fund the acquisition of a new property (shinyon curumu Building; April 12,2013 delivery portion).
(ii) Procurement of Capital for Repayment of Borrowings (Refinancing)In the 15th Fiscal Period, the Investment Corporation made the following borrowings to fund the repaymentof borrowings that were due for repayment.
• 1,000 million yen was borrowed from ORIX Bank Corporation on January 10, 2013 to fund therepayment of the 1,000 million yen borrowed from said bank that was due for repayment on January 10,
2013.
• A total amount of 4,500 million yen was borrowed from Aozora Bank, Ltd. and The Kagawa Bank, Ltd.
on February 28, 2013 to fund the repayment of the total amount of 4,481 million yen borrowed from
Aozora Bank, Ltd. and The Kagawa Bank, Ltd. that was due for repayment on February 28, 2013.
(iii) 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 15th
Fiscal Period (May 31, 2013) stood at 128,300 million yen (long-term loans payable: 119,800 million yen;investment corporation bonds: 8,500 million yen). The balance of the current portion of long-term loans
payable stood at 32,400 million yen and the balance of the current portion of investment corporation bonds
stood at 5,000 million yen.
Concerning borrowings in the 15th Fiscal Period, the Investment Corporation advanced diversification oflenders by borrowing from new lenders (life insurance companies, nonlife insurance companies and regionalbanks). In addition, with borrowings centering on periods of between 5 years and 7 years, the averageremaining period was extended from 2.25 years (14th Fiscal Period) to 2.49 years (15th Fiscal Period).
Furthermore, liabilities costs were lowered by reducing credit spread interest.

-4-

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
List of Borrowings in the 15th Fiscal Period
LenderDevelopment Bank of Japan Inc.
Shinsei Bank, Ltd.
ORIX Bank Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Yamaguchi Bank, Ltd.
The Higashi-Nippon Bank, LimitedAozora Bank, Ltd.
Aozora Bank, Ltd.
The Kagawa Bank, Ltd.
Resona Bank, Ltd.
Fukoku Mutual Life Insurance Company
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
Aozora Bank, Ltd.
The Gunma Bank, Ltd.
The Musashino Bank, Ltd.

Loan amount(million yen)
2,000
2,000
1,000
2,000
1,500
1,000
500
500
2,000
1,500
1,000
2,000
200
1,500
1,000
1,000
500
500

Drawdown
date
2012/12/03
2012/12/03
2013/01/10
2013/02/01
2013/02/01
2013/02/01
2013/02/01
2013/02/01
2013/02/28
2013/02/28
2013/02/28
2013/03/01
2013/03/29
2013/04/12
2013/04/12
2013/04/12
2013/04/12
2013/04/12

Repayment
date
2017/11/30
2017/11/30
2018/02/28
2020/02/28
2020/02/28
2017/11/30
2017/11/30
2018/02/28
2020/02/28
2016/08/31
2019/02/28
2020/02/28
2016/05/31
2019/11/29
2019/11/29
2019/05/31
2018/05/31
2018/05/31

Loanperiod
5.0 years
5.0 years
5.1 years
7.1 years
7.1 years
4.8 years
4.8 years
5.1 years
7.0 years
3.5 years
6.0 years
7.0 years
3.2 years
6.6 years
6.6 years
6.1 years
5.1 years
5.1 years

Balance of Borrowings from Each Financial Institution (as of May 31, 2013)
End of the 15th Fiscal Period
LenderShare(million yen)
Sumitomo Mitsui Banking Corporation
23,50019.62%Development Bank of Japan Inc.
16,75013.98%
Sumitomo Mitsui Trust Bank, Limited
16,35013.65%
Shinsei Bank, Ltd.
10,0008.35%
Resona Bank, Ltd.
9,000
7.51%
Mizuho Bank, Ltd. (Note 2)
7,900
6.59%
Aozora Bank, Ltd.
6,000
5.01%
Kansai Urban Banking Corporation
5,000
4.17%
Mizuho Trust and Banking Co., Ltd.
4,500
3.76%
Mitsubishi UFJ Trust and Banking Corporation
3,000
2.50%
The Bank of Fukuoka, Ltd.
3,000
2.50%
ORIX Bank Corporation
2,500
2.09%
The Gunma Bank, Ltd.
2,500
2.09%
The Shizuoka Bank, Ltd.
2,000
1.67%
The Musashino Bank, Ltd.
1,500
1.25%
The Hiroshima Bank, Ltd.
1,000
0.83%
The 77 Bank, Ltd.
1,000
0.83%
The Kagawa Bank, Ltd.
1,000
0.83%
Tokio Marine & Nichido Fire Insurance Co., Ltd.
1,000
0.83%
The Bank of Yokohama, Ltd.
500
0.42%
The Yamaguchi Bank, Ltd.
500
0.42%
The Higashi-Nippon Bank, Limited
500
0.42%
Taiyo Life Insurance Company
300
0.25%
Nippon Life Insurance Company
300
0.25%
Fukoku Mutual Life Insurance Company
200
0.17%
Total
119,800
100%(Note 1) Share is rounded to two decimal places.
(Note 2) Mizuho Corporate Bank, Ltd. merged with Mizuho Bank, Ltd. with itself as the surviving company
on July 1, 2013 and changed its trade name to Mizuho Bank, Ltd. on the same date.
-5-

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Periodb. Rating Information (as of May 31, 2013)
Credit rating agency
RatingR&I
A

Outlook
Stablec. Shelf Registration
The Investment Corporation filed a shelf registration statement on April 3, 2012 as below.
Investment corporation bonds (excluding short-term investment corporation bonds)
Planned issue amount 100 billion yen
Planned issue period
From April 11, 2012 to April 10, 2014
Funds for acquisition of specified assets, repayment of loans, redemption of
investment corporation bonds (including short-term investment corporation
Use of funds
bonds), refund of leasehold and security deposits, and payment of repairs, etc.;
funds for working capital; etc.
D. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance forthe 15th Fiscal Period of 7,615 million yen in operating revenue, 3,308 million yen in operating income, 2,590
million yen in ordinary income and 2,589 million yen in net income.
Concerning distributions, to ensure 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”)), the Investment Corporation decided to
distribute the entire amount of unappropriated retained earnings, excluding fractions of the distribution amount
per unit that are less than 1 yen. Accordingly, the Investment Corporation declared a distribution amount perunit of 6,542 yen.
(2) Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy ahead is expected to see the effects of monetary easing and various economic measures
as well as pickup in overseas economies lead to moderate economic recovery through improvement incorporate earnings, centering on public-investment- and exports-related companies, and recovery in personal
spending. However, the rise in long-term interest rates, overseas economic / overseas financial market
uncertainty, relations with various other countries and consumption tax hike may likely serve as downwardrisks on the Japanese economy and are thus thought to require attention.
In the office building leasing market, improvement in corporate earnings / employment, decrease in supplyof newly-built buildings / vacancies and undervalued rent are expected to stimulate demand, resulting inmoderate improvement in both the vacancy rate and rent, centering on prime properties. In addition, in theoffice building transaction market, backed by the favorable financing environment, drop in expected cap rateand expectations of rent hitting bottom, etc., the demand to purchase by real estate companies and funds(including J-REITs) is thought to grow even stronger.

-6-

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Under the office leasing market conditions described above, the tenant side is also expected to become more
selective with properties. Consequently, the Investment Corporation will carry out operational management
under the following policy with an aim to enhance the competitiveness of existing properties and thereby
increase the long-term EPS over the medium to long term.
(i) Maintain and raise occupancy rates
Concerning existing tenants, strive to reduce vacancy risks by improving the quality of buildings,
equipment and management system. In addition, concerning new tenants, strive to maintain and raiseoccupancy rates through the provision of services that are of higher satisfaction levels than competing
properties 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 systematicconstruction 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 2,000m2 or
more based on various external growth strategies, while maintaining a balance with the asset acquisition
environment and financing situation. In principle, considerations will focus on Tokyo as the investment target
area, but the Investment Corporation will also consider investing in competitive properties in cities other thanTokyo from a viewpoint 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
real estate transaction market information through greater collaboration with the Asset Manager and Sponsor
Group and utilizing the Group’s extensive network of clients, partners, etc.
In the 15th Fiscal Period, the Investment Corporation acquired “shinyon curumu Building,” which islocated in Tokyo, “Honshu Meieki Building,” which is located in Nagoya City, Aichi Prefecture, and“Kamiooka Eye Mark Building,” which is located in Yokohama City, Kanagawa Prefecture, as well as
making additional acquisition of the compartmentalized ownership interest, etc. of “Sunline Building No. 7”
remaining other than the part of the compartmentalized ownership interest, etc. already held by theInvestment Corporation. The Investment Corporation believes that acquisition of these properties willcontribute to further stabilization and enhancement of the portfolio. The Investment Corporation willcontinue 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.
Starting from the 16th Fiscal Period, the management indices in financial management will be changed fromthe ratio of interest-bearing liabilities to acquisition price that has been used to date to the ratio ofinterest-bearing liabilities to total assets (LTV).
(i) Control leverage by keeping the ratio of interest-bearing liabilities to total assets within the range of
40% to 50% at maximum, taking into consideration also the real LTV, etc., as a principle.
(ii) Diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing
liabilities 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 total loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.
(v) Pursuant to its fund management rules, maintain stability in its financial standing by managing
necessary funds, such as the amount equivalent to distributions paid, separately from working capital.

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Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
C. Significant Subsequent Eventsa. Acquisition of Assets(i) The Investment Corporation acquired a trust beneficial interest in real estate on July 3, 2013 as follows.
Summary of Acquired Asset
Property nameTosen Dogenzaka Daini Building
Type of asset
Trust beneficial interest in real estate
Location (indication of residential address)28-1 Maruyamacho, Shibuya-ku, Tokyo
Acquisition price4,500 million yen(excluding acquisition costs, consumption tax, etc.)
Date of execution of purchase agreement
June 25, 2013
Date of delivery
July 3, 2013
SellerNot disclosed(ii) The Investment Corporation determined to acquire a trust beneficial interest in real estate on July 19,
2013 as follows.
Summary of Acquired Asset
Property name
Akasaka Business Place
Type of asset
Trust beneficial interest in real estate
Location (indication of residential address)
2-14-5 Akasaka, Minato-ku, Tokyo
Acquisition price
9,200 million yen(excluding acquisition costs, consumption tax, etc.)
Date of execution of purchase agreement
July 19, 2013
Date of delivery
August 9, 2013 (scheduled)
SellerHakuba Capital 1 TMK
b. Borrowing of Funds(i) The Investment Corporation borrowed funds on July 3, 2013 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “a.
Acquisition of Assets (i),” etc.
Borrowing/
Drawdown
Loan amount
Repayment
LenderInterest rate
Repayment
date(million yen)datemethodBBA 3 month
UnsecuredJapanese Yen
Shinsei Bank, Ltd.
2013/07/03
1,000
2020/11/30 Repayment in
LIBOR + 0.35%
lump sum(Note 1)
JBA 1 monthThe
UnsecuredJapanese Yen
Higashi-Nippon
2013/07/03
1,000
2020/11/30 Repayment in
TIBOR + 0.35%
Bank, Limited
lump sum(Note 2)
JBA 1 month
Sumitomo Mitsui
UnsecuredJapanese Yen
Banking2013/07/03
1,600
2020/08/31 Repayment in
TIBOR + 0.35%
Corporation
lump sum(Note 2)
Unsecured
Development Bank
2013/07/03
1,000
0.833%
2018/08/31 Repayment inof Japan Inc.
lump sum(Note 1) Interest payment dates shall be the end of February, May, August and November and therepayment date (If any such date is not a business day, the immediately following businessday, and if such date falls within the next month, the immediately last business day of themonth.). The base rate applicable to the calculation period for the interest payable on aninterest payment date shall be calculated based on the 3 month Japanese Yen LIBOR which
British Banker’s Association (“BBA”) announces 2 business days prior to the first day of theinterest calculation period.

-8-Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period(Note 2) Interest payment dates shall be the end of every month and the repayment date (If any suchdate is not a business day, the immediately following business day, and if such date falls
within the next month, the immediately last business day of the month.). The base rateapplicable to the calculation period for the interest payable on an interest payment date shallbe calculated based on the 1 month Japanese Yen TIBOR which Japanese Bankers
Association (“JBA”) announces 2 business days prior to the first day of the interest calculation
period.
(ii) The Investment Corporation decided to borrow funds on July 19, 2013 as below.
The funds will be borrowed to provide for part of the acquisition of the new property listed above in “a.
Acquisition of Assets (ii),” etc.
Borrowing/
Loan amount
Drawdown
Repayment
LenderInterest rate
Repayment
date(million yen)datemethodJBA 1 month
Sumitomo Mitsui
UnsecuredJapanese Yen
Banking2013/08/09
1,400
2021/05/31 Repayment in
TIBOR + 0.35%
Corporation
lump sum(Note 1)
JBA 1 month
Unsecured
Sumitomo Mitsui
Japanese Yen
2013/08/09
1,000
2021/02/26 Repayment inTrust Bank, Limited
TIBOR + 0.35%
lump sum(Note 1)
JBA 1 month
Unsecured
The Bank ofJapanese Yen
2013/08/09
1,000
2018/08/31 Repayment inFukuoka, Ltd.
TIBOR + 0.27%
lump sum(Note 1)
BBA 3 month
Tokio Marine &UnsecuredJapanese Yen
Nichido Fire
2013/08/09
1,000
2018/07/31 Repayment in
LIBOR + 0.27%
Insurance Co., Ltd.
lump sum(Note 2)
(Note 1) Interest payment dates shall be the end of every month and the repayment date (If any suchdate is not a business day, the immediately following business day, and if such date falls
within the next month, the immediately last business day of the month.). The base rateapplicable to the calculation period for the interest payable on an interest payment date shallbe calculated based on the 1 month Japanese Yen TIBOR which Japanese Bankers
Association (“JBA”) announces 2 business days prior to the first day of the interest calculation
period.
(Note 2) Interest payment dates shall be the end of February, May, August and November and therepayment date (If any such date is not a business day, the immediately following businessday, and if such date falls within the next month, the immediately last business day of themonth.). The base rate applicable to the calculation period for the interest payable on aninterest payment date shall be calculated based on the 3 month Japanese Yen LIBOR which
British Banker’s Association (“BBA”) announces 2 business days prior to the first day of theinterest calculation period.
D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 16th Fiscal Period (fiscal
period ending November 2013 (from June 1, 2013 to November 30, 2013)). For the assumptions underlying
the management status forecasts, please refer to the “Assumptions for the Management Status Forecasts for the
16th Fiscal Period and 17th Fiscal Period” on page 10.
The following is forecast as the main factors of increase/decrease from the 15th Fiscal Period.
(Increase in operating revenue and operating income)• Acquisition of new properties (Tosen Dogenzaka Daini Building and Akasaka Business Place) leading toincrease in rent revenue.

-9-Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

16th Fiscal Period (fiscal period ending November 2013 (from June 1, 2013 to November 30, 2013))
Operating revenue
8,242 million yen
Operating income
3,576 million yen
Ordinary income
2,852 million yen
Net income
2,850 million yen
Distribution amount per unit
7,200 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 16th Fiscal
Period and 17th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following
management status for the 17th Fiscal Period (fiscal period ending May 2014 (from December 1, 2013 to May
31, 2014)).
17th Fiscal Period (fiscal period ending May 2014 (from December 1, 2013 to May 31, 2014))
Operating revenue
8,235 million yen
Operating income
3,628 million yen
Ordinary income
2,891 million yen
Net income
2,889 million yen
Distribution amount per unit
7,300 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 tochanges in the status. Moreover, the forecasts set forth herein should not be construed as a guaranteeof distribution amounts.
Assumptions for the Management Status Forecasts for the 16th Fiscal Period and 17th Fiscal Period
Item
Assumptions• 16th Fiscal Period:
Assets under management are assumed to be the 41 properties held as of May 31, 2013, plus
the 1 property delivered on July 3, 2013 and the 1 property scheduled to be delivered on
Assets under
August 9, 2013, to total 43 properties.
management• 17th Fiscal Period:
Assets under management are assumed to be the 43 properties above.
• The actual number of properties may vary due to changes in the assets under management.
• 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, are calculated based on historical data and taking into account variable factors.
• Repair expenses for buildings are recorded as expenses in the amount expected to benecessary in the respective fiscal period based on the medium to long term repair planestablished by the Asset Manager.
• Operating income from property leasing (excluding gain on sales of real estate properties)
Operatingafter deducting expenses related to rent business (including depreciation) is expected to be
expenses
4,462 million yen in the 16th Fiscal Period and 4,506 million yen in the 17th Fiscal Period.
• Consignment expenses are expected to be 622 million yen in the 16th Fiscal Period and 621
million yen in the 17th Fiscal Period.
• Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 693 million
yen in the 16th Fiscal Period and 700 million yen in the 17th Fiscal Period.
• Depreciation is expected to be 1,323 million yen in the 16th Fiscal Period and 1,334 million
yen in the 17th Fiscal Period.

- 10 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
Item
Non-operating
expenses

Interest-bearing
liabilities

Assumptions• Non-operating expenses in the 16th Fiscal Period are expected to be 723 million yen, of
which the interest expenses, interest expenses on investment corporation bonds, andborrowing related expenses are expected to be 718 million yen.
• Non-operating expenses in the 17th Fiscal Period are expected to be 737 million yen, of
which the interest expenses, interest expenses on investment corporation bonds, andborrowing related expenses are expected to be 732 million yen.
• The total amount of interest-bearing liabilities is assumed to be 142,300 million yen at theend of the 16th Fiscal Period and 142,300 million yen at the end of the 17th Fiscal Period.
• The assumption is that, in the 16th Fiscal Period, the 5,000 million yen in investment
corporation bonds that became due for redemption on June 24, 2013, the 5,000 million yen inloans that became due for repayment on June 28, 2013, the 6,000 million yen in loans that
became due for repayment on July 8, 2013, the 2,000 million yen in loans that is to becomedue for repayment on July 31, 2013, the 3,500 million yen in loans that is to become due forrepayment on September 30, 2013 and the 6,000 million yen in loans that is to become due
for repayment on November 29, 2013 will be refinanced in the entire amount. In addition,
new borrowing of 4,600 million yen (drawdown on July 3, 2013) as funds for the acquisitionof Tosen Dogenzaka Daini Building, which was acquired on July 3, 2013, is assumed.
Furthermore, new borrowing of 9,400 million yen (drawdown scheduled for August 9, 2013)as funds for the acquisition of Akasaka Business Place, for which a real estate trust beneficial
interest purchase agreement was executed on July 19, 2013, is assumed.
• The assumption is that, in the 17th Fiscal Period, the 4,000 million yen in loans that is tobecome due for repayment on March 18, 2014, the 2,000 million yen in loans that is tobecome due for repayment on March 25, 2014 and the 8,900 million yen in loans that is tobecome due for repayment on March 31, 2014 will each be refinanced in the entire amount.

Number ofinvestment units
issued andoutstanding• The number of investment units issued and outstanding is assumed to be the 395,798 units
issued and outstanding as of the date of submission of this document, and there is assumed to
be no additional issuance of investment units through to May 31, 2014.

Distribution amount
per unit• The distribution amount per unit is calculated based on the cash distribution policy as set out
in the articles of incorporation of the Investment Corporation.
• The distribution amount per unit may vary depending on a variety of factors, such as changes
in the assets under management, changes in the rent revenue due to tenant changes and othercauses, and incurrence of unforeseen repairs.

Distribution amount• At present, there is no plan to make any distribution in excess of earnings (distribution
in excess of earnings
amount in excess of earnings per unit).
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
Other
Trusts Association, Japan, etc. that will affect the abovementioned forecast figures.
• It is assumed that there will be no major unforeseen changes in general economic trends, realestate market conditions, etc.
2.3. Investment Risks
Disclosure is omitted because there are no significant changes from the “Part I: Fund Information; Section 1:
Fund Status; 3. Investment Risks” set out in the most recent periodic securities report (yuka shoken hokokusho)(submitted on February 22, 2013).

- 11 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

3. Financial Statements
3.1. Balance Sheets

14th Fiscal Period[As of Nov. 30, 2012]
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Other
Accumulated depreciation
Other, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Other in trust
Accumulated depreciation
Other in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment*1- 12 -(Unit: thousand yen)
15th Fiscal Period[As of May 31, 2013]11,336,277
4,710,687
261,649－
246,572
18
94,278
16,649,484

10,948,755
5,109,017
230,151
248,781
262,955
3,166
119,179
16,922,006

3,047,562(1,192,192)
1,855,370
10,296(1,655)
8,641
7,299(4,836)
2,463
3,741(3,741)－
12,302,226
787
66,638,834(13,210,517)
53,428,316
831,407(112,263)
719,144802,223(342,212)
460,011
81,324(37,945)
43,3796,017(6,017)－
236,574,999
352,661
305,748,002

3,107,374(1,279,598)
1,827,775
10,296(1,924)
8,372
7,299(5,214)
2,085
3,741(3,741)－
12,502,216
4,031
72,858,509(14,356,490)
58,502,018
848,241(123,691)
724,550
822,579(370,945)
451,634
86,066(44,192)
41,874
6,017(6,017)－248,202,878
35,796322,303,233*1

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

14th Fiscal Period[As of Nov. 30, 2012]
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits in trust
Long-term prepaid expenses
Deferred tax assets
Derivatives assets
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets*2- 13 -(Unit: thousand yen)
15th Fiscal Period[As of May 31, 2013]

1,824
2,407,101
306,884
4,055
2,719,866

1,636
2,407,101
306,884
3,583
2,719,206

113,684
387,956
18,817
1,119
10,020531,597
308,999,466

113,684
483,942
11,321
1,234
10,020620,202
325,642,642

16,752
16,752
325,665,703

8,216
8,216
342,572,865

546,346
5,000,000
22,981,250
258,426797
85,802
831,967
207,903
29,912,493

571,325
5,000,000
32,400,000
261,090779
32,427874,930
120,598
39,261,151

3,500,000
80,600,000
6,457,058
4,025,769
52,63894,635,466
124,547,959

3,500,000
87,400,000
6,659,828
4,374,420
32,093
101,966,343
141,227,494

198,780,951

198,780,951

2,369,494
2,369,494
201,150,445

2,589,422
2,589,422
201,370,373(32,701)(32,701)
201,117,743
325,665,703(25,003)(25,003)
201,345,370
342,572,865*2Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
3.2. Statements of Income

Operating revenue
Rent revenue – real estate
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on donation of noncurrent assets
Total extraordinary 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)

14th Fiscal Period[From: June 1, 2012
To: Nov. 30, 2012](Unit: thousand yen)
15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]*1*1

7,384,164
182,049
7,566,213*1*1

7,519,690
95,383
7,615,074*1

3,601,886
621,489
16,26463,88623,1375,400
87,362
4,419,425
3,146,788*1

3,499,437
634,585
16,654
61,07820,657
5,400
68,525
4,306,339
3,308,734

1,386
1,082
2,938
5,406
*2

534,555
97,319142,687
12,684787,247
2,364,947
5,314
5,314
2,370,262
977
(1)
976
2,369,286
207
2,369,494- 14 -

923
1,023
13,275
15,222*2

492,196
95,533
135,545
10,632733,9072,590,049－－
2,590,049
869
5874
2,589,175
247
2,589,422

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
3.3. Statements of Unitholders’ Equity
14th Fiscal Period[From: June 1, 2012
To: Nov. 30, 2012]
Unitholders’ equity
Unitholders’ capital
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period
Surplus
Unappropriated retained earnings (undisposed loss)
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total Surplus
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total unitholders’ equity
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of current period
Total valuation and translation adjustments
Balance at beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of current period
Total net assets
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of current period- 15 -(Unit: thousand yen)
15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]

198,780,951*1－
198,780,951

198,780,951*1－
198,780,951

2,021,548

2,369,494(2,021,340)
2,369,286
347,9452,369,494(2,369,246)
2,589,175
219,928
2,589,422

2,021,548

2,369,494(2,021,340)
2,369,286
347,9452,369,494(2,369,246)
2,589,175
219,928
2,589,422

200,802,499

201,150,445(2,021,340)
2,369,286
347,945
201,150,445(2,369,246)
2,589,175
219,928
201,370,373(2,032)(32,701)(30,669)(30,669)(32,701)

7,698
7,698
(25,003)(2,032)(32,701)(30,669)(30,669)(32,701)

7,698
7,698
(25,003)200,800,467

201,117,743(2,021,340)
2,369,286(30,669)
317,276
201,117,743(2,369,246)
2,589,175
7,698
227,626
201,345,370

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
3.4. Statements of Cash Distributions

Item
I. Unappropriated retained earnings
II. Distribution amount[Distribution amount per unit]
III. Retained earnings carried forward
Method for calculating distribution amount14th Fiscal Period[From: June 1, 2012
To: Nov. 30, 2012]
Amount (yen)2,369,494,076
2,369,246,828[5,986]247,248
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of
the amount equivalent to 90% of
its distributable earnings as
defined in Article 67-15 of the Act
on Special Measures Concerning
Taxation” but no more than theamount of earnings as specified in
Article 32, Item 1 of theInvestment Corporation’s articles
of incorporation, the Investment
Corporation decided the
distributions from earnings that itshall pay out shall be themaximum value of the integral
multiple of the number of units
issued and outstanding (395,798
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, theInvestment Corporation declared a
distribution amount of
2,369,246,828 yen. Furthermore,
the Investment Corporation shallnot distribute cash in excess ofearnings as stipulated in Article
32, Item 2 of its articles ofincorporation.

- 16 -

15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]
Amount (yen)2,589,422,414
2,589,310,516[6,542]
111,898
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of
the amount equivalent to 90% of
its distributable earnings as
defined in Article 67-15 of the Act
on Special Measures Concerning
Taxation” but no more than theamount of earnings as specified in
Article 32, Item 1 of theInvestment Corporation’s articles
of incorporation, the Investment
Corporation decided the
distributions from earnings that itshall pay out shall be themaximum value of the integral
multiple of the number of units
issued and outstanding (395,798
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, theInvestment Corporation declared a
distribution amount of
2,589,310,516 yen. Furthermore,
the Investment Corporation shallnot distribute cash in excess ofearnings as stipulated in Article
32, Item 2 of its articles ofincorporation.

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
3.5. Statements of Cash FlowsNet cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Interest income
Interest expenses(Increase) Decrease in operating accounts receivable(Increase) Decrease in consumption taxes refund receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
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 long-term loans payable
Repayment of long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 17 -

14th Fiscal Period[From: June 1, 2012
To: Nov. 30, 2012](Unit: thousand yen)
15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]

2,370,262
1,306,935
8,583(1,386)
631,875
23,151－(2,169)(23,542)(3,278)(77,344)(44,959)(19,879)(68,087)
4,100,160
1,386(634,768)(857)
3,465,920

2,590,049
1,281,373
8,536
(923)
587,730
31,498(248,781)(16,382)(68,851)(884)(53,374)
42,962(95,986)(103,539)
3,953,427
923(604,367)(887)
3,349,095(10,842)(2,745,006)－
456,312
189,987(475,954)(304,396)(2,889,900)(238,242)(17,500,043)(279)
311,407759,494(229,658)(289,821)(17,187,143)

17,500,000(16,810,000)(2,020,153)(1,330,153)(754,133)
16,801,099
16,046,965

21,700,000(5,481,250)(2,369,894)
13,848,855
10,807
16,046,965
16,057,772*1*1

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
3.6. Notes to the Going Concern
Not applicable.
3.7. Notes to Significant Accounting Policies
1.
Accumulated depreciation(1) Property, plant and equipment (including trust assets)method for noncurrent assets
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as follows:
Buildings
2~64 years
Structures
4~56 years
Machinery and equipment
2~23 years
Tools, furniture and fixtures
5~18 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
2.
Accounting policies for
Investment corporation bonds issuance costs
deferred assets
Amortized using the straight-line method over the period up to
redemption.
3.
Accounting standards for
Accounting for fixed property tax, etc.
recording revenues and expenses
Concerning fixed property tax, city planning tax, depreciated asset tax,
etc. for owned real estate in trust, of the tax amount that has beenbroken down into installments, the method of accounting for the amountcorresponding to the concerned fiscal period as expenses related to rent
business is adopted.
Concerning the amount equivalent to fixed property tax, etc. for the
initial fiscal year that shall be borne by the Investment Corporation incorrelation with acquisitions of real estate or trust beneficial interest
that have real estate as assets in trust, the amount is not expensed but israther 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 in the 14th Fiscal Period
is 7,947 thousand yen and 15th Fiscal Period is 49,317 thousand yen.
4.
Hedge accounting approaches(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet therequirements for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate cap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge
risks stipulated in the Investment Corporation’s articles of incorporationin accordance 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 thechange 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.

- 18 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
5.

Scope of funds in thestatements of cash flows

6.

Other significant mattersforming basis for preparation offinancial statements

The funds (cash and cash equivalents) in the statements of cash flows consistof cash on hand and cash in trust; deposits that can be withdrawn at any timeand deposits in trust; and short-term investments with a maturity of 3 months
or less from the date of acquisition, which are readily convertible to cash andbear only an insignificant risk of price fluctuation.
(1) Accounting method for trust beneficial interest in real estate, etc.
Concerning owned trust beneficial interest that have real estate
properties as assets in trust, all accounts of assets and liabilities within
assets in trust as well as all accounts of revenues and expenses incurredfrom the assets in trust are recorded in the relevant account item of thebalance sheets and statements of income.
The following material items of the assets in trust recorded in therelevant 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 intrust, tools, furniture and fixtures in trust, other tangible assets intrust, land in trust and construction in progress in trust(iii) Leasehold rights in trust(iv) Lease and guarantee deposits in trust(v) Tenant leasehold and security deposits in trust(2) Accounting method for consumption taxes
Consumption tax and local consumption tax are accounted for by the
tax-exclusion method and consumption taxes that are not tax-deductible
are expensed in the fiscal period under review.
The consumption taxes relating to noncurrent assets, etc. that are nottax-deductible are amortized in equal installments over 5 years.

3.8. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting and asset retirement
obligations, disclosure is omitted because there is no substantial need for such disclosure in the financial report(kessan tanshin).
[Notes to Balance Sheets]*1. Advanced depreciation amount for noncurrent assets acquired by government subsidies, etc.
14th Fiscal Period[As of November 30, 2012]
32,898 thousand yen

15th Fiscal Period[As of May 31, 2013]
32,898 thousand yen*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
14th Fiscal Period[As of November 30, 2012]
50,000 thousand yen- 19 -

15th Fiscal Period[As of May 31, 2013]
50,000 thousand yen

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing

A. Property leasing revenue
Rent revenue – real estate
Other lease business revenue
Total property leasing revenue
B. Property leasing expenses
Consignment expenses
Utilities expenses
Taxes and dues
Non-life insurance expenses
Repair expenses
Depreciation
Other lease business expenses
Total property leasing expenses
C. Operating income (loss) fromproperty leasing [A – B]

14th Fiscal Period[From: June 1, 2012
To: Nov. 30, 2012](Unit: thousand yen)
15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]

7,384,164
182,049

7,519,690
95,3837,566,213

549,515
737,020
652,109
11,847280,098
1,305,782
65,511

7,615,074
591,513678,874
671,598
12,101
215,111
1,280,206
50,031

3,601,886

3,499,437

3,964,327

4,115,636

14th Fiscal Period[From: June 1, 2012
To: Nov. 30, 2012](Unit: thousand yen)
15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]*2. Transactions with major unitholders

Transactions other than business transaction
Interest expenses on investment corporation bonds

50,31348,527[Notes to Statements of Unitholders’ Equity]
14th Fiscal Period[From: June 1, 2012
To: Nov. 30, 2012]

15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]*1. Total number of investment units authorized andnumber of investment units issued and outstanding
Total number of investment units authorized
Number of investment units issued and outstanding

2,000,000 units

2,000,000 units

395,798 units

395,798 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)
14th Fiscal Period
15th Fiscal Period[From: June 1, 2012
[From: Dec. 1, 2012
To: Nov. 30, 2012]
To: May 31, 2013]
Cash and deposits
11,336,277
10,948,755
Cash and deposits in trust
4,710,687
5,109,017
Cash and cash equivalents
16,046,965
16,057,772- 20 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation bonds
and issuance of new investment units, etc. for the acquisition and repair of investment properties, the paymentsof dividends 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 safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks.
(b) Contents and risk of financial instruments and policies and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds
for the acquisition of investment properties (such as trust beneficial interest in real estate) and thereimbursement of current debts and bonds. While these debts and bonds are exposed to liquidity risk, theInvestment Corporation manages the risk by maintaining the LTV ratio at low levels, dispersing maturity dates,
maintaining the ratio of long-term debt to total debt at high levels, and diversifying lenders with particularfocus on domestic financial institutions.
Bank borrowings with floating interest rates are exposed to interest rate risk and the risk is controlled byusing derivative instruments (interest swap transaction).
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount ofcash 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 theeffectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions
established by the basic policy of risk management.
Security deposits from tenants are exposed to liquidity risk upon tenants moving out and the Investment
Corporation reduces the risk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) andare managed by limiting the terms to short durations and establishing credit rating level of counterparties, etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instrumentswith no available market price is determined by using price reasonably estimated. As various factors areincorporated 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 inthese derivative transactions.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values and their differences are as follows. Please note that the following table does
not include those for which discerning of fair value is recognized to be extremely difficult (please refer to (Note2)).
14th Fiscal Period [As of November 30, 2012](1) Cash and deposits(2) Cash and deposits in trust
Total assets(1) Current portion of investment corporation bonds(2) Current portion of long-term loans payable(3) Investment corporation bonds(4) Long-term loans payable
Total liabilities
Derivative transactions (*)

Carrying amount
11,336,277
4,710,687
16,046,965
5,000,000
22,981,250
3,500,000
80,600,000
112,081,250(51,519)- 21 -

Fair value
11,336,277
4,710,687
16,046,965
5,004,000
22,983,566
3,500,000
80,596,241
112,083,807(51,519)(Unit: thousand yen)
Difference
－
－
－
4,000
2,316
－
(3,758)2,557－

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

15th Fiscal Period [As of May 31, 2013](1) Cash and deposits(2) Cash and deposits in trust
Total assets(1) Current portion of investment corporation bonds(2) Current portion of long-term loans payable(3) Investment corporation bonds(4) Long-term loans payable
Total liabilities
Derivative transactions (*)

Carrying amount
10,948,755
5,109,017
16,057,772
5,000,000
32,400,000
3,500,000
87,400,000
128,300,000(39,478)

Fair value
10,948,755
5,109,017
16,057,772
5,005,500
32,400,577
3,500,000
87,010,905
127,916,982(39,478)(Unit: thousand yen)
Difference
－
－
－
5,500
577
－
(389,094)(383,017)－(*) The value of assets and liabilities arising from derivatives are indicated at net basis. The amount in parentheses
represents the net liability position.
(Note 1) Method of calculation of fair value of financial instruments and matters concerning derivatives.
Assets(1) Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value
and thus is stated at that book value.
Liabilities(1) Current portion of investment corporation bonds; (3) Investment corporation bonds
Concerning the fair value of investment corporation bonds issued by the Investment Corporation, as these arebased on floating interest rates and reflect market interest rates within a short period of time and theInvestment Corporation’s credit capability does not differ markedly from the execution, the fair value isapproximately the same as the book value and thus is stated at that book value.
(2) Current portion of long-term loans payable; (4) Long-term loans payable
As those with floating interest rates reflect market interest rates within a short period of time and theInvestment Corporation’s credit capability does not differ markedly from the execution, the fair value isapproximately the same as the book value and thus is stated at that book value. Those with fixed interest rates,on the other hand, are based on the method of calculating by discounting the sum total amount of principal andinterest (*) by the reasonably estimated interest rate in the case that the same type of borrowings areundertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest ishandled together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions]below.)
Derivative transactions
Please refer to [Notes to Derivative transactions] below.
(Note 2) Financial products for which it is extremely difficult to estimate fair value.
(Unit: thousand yen)
14th Fiscal Period[As of Nov. 30, 2012]

15th Fiscal Period[As of May 31, 2013]

Tenant leasehold and security deposits
6,457,058
6,659,828
Tenant leasehold and security deposits in trust
4,025,769
4,374,420
Total
10,482,828
11,034,249
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited bylessees of rental properties are not subject to disclosure of market price because discerning of the market priceis recognized to be extremely difficult as future cash flows cannot be reasonably estimated due to there being
no fair value and difficulty in calculation of the actual deposit period.

- 22 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period(Note 3) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts.
14th Fiscal Period [As of November 30, 2012](Unit: thousand yen)
Cash and deposits
Cash and deposits in trust
Total

Within 1 year

Within 2 years,
but over 1 year

11,336,277
4,710,687
16,046,965－－－

Within 3 years, Within 4 years, Within 5 years,
but over 2 years but over 3 years but over 4 years

－
－
－

－
－
－

Over 5 years

－
－
－

－
－
－

15th Fiscal Period [As of May 31, 2013](Unit: thousand yen)
Cash and deposits
Cash and deposits in trust
Total

Within 1 year

Within 2 years,
but over 1 year

10,948,755
5,109,017
16,057,772－－－

Within 3 years, Within 4 years, Within 5 years,
but over 2 years but over 3 years but over 4 years

－
－
－

－
－
－

Over 5 years

－
－
－

－
－
－

(Note 4) Amount of repayment of investment corporation bond and long-term loans payable scheduled to be due
after the settlement of accounts.
14th Fiscal Period [As of November 30, 2012](Unit: thousand yen)
Current portion of
investment corporation bonds
Current portion of
long-term loans payable
Investment corporation bonds
Long-term loans payable
Total

Within 1 year

Within 2 years,
but over 1 year

Within 3 years, Within 4 years, Within 5 years,
but over 2 years but over 3 years but over 4 years

5,000,000

－

－

－

－

－

22,981,250

－

－

－

－

－

－
－
27,981,250－
33,900,000
33,900,000－
16,600,000
16,600,000－
2,000,000
2,000,000－
22,750,000
22,750,000

3,500,000
5,350,000
8,850,000

Over 5 years

15th Fiscal Period [As of May 31, 2013](Unit: thousand yen)
Current portion of
investment corporation bonds
Current portion of
long-term loans payable
Investment corporation bonds
Long-term loans payable
Total

Within 1 year

Within 2 years,
but over 1 year

Within 3 years, Within 4 years, Within 5 years,
but over 2 years but over 3 years but over 4 years

5,000,000

－

－

－

－

－

32,400,000

－

－

－

－

－

－
－
37,400,000－
29,500,000
29,500,000－
8,300,000
8,300,000－
18,200,000
18,200,000－
19,400,000
19,400,000

3,500,000
12,000,000
15,500,000- 23 -

Over 5 years

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
14th Fiscal Period [As of November 30, 2012]
Not applicable.
15th Fiscal Period [As of May 31, 2013]
Not applicable.
(2) Transactions for which hedge accounting is applied
14th Fiscal Period [As of November 30, 2012]
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)
Hedge
Main
Method ofContract amount, etc.
Type, etc. of
accounting
hedgedFair value
calculation of
Of which,
derivative transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
43,900,000
37,900,000(51,519) quoted by partner
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
27,350,000
27,350,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total
71,250,000
65,250,000(51,519)
15th Fiscal Period [As of May 31, 2013]
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)
Hedge
Main
Method ofContract amount, etc.
Type, etc. of
accounting
hedgedFair value
calculation of
Of which,
derivative transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
43,900,000
26,000,000(39,478) quoted by partner
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
27,350,000
27,350,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total
71,250,000
53,350,000(39,478)(*) Since the derivative financial instruments qualifying for the special accounting for interest rate swaps areaccounted for as one transaction together with their hedged item, long-term loans payable, the fair value of thesederivatives is included in that 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 (2) (4)”).

- 24 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period[Notes to Transactions with Related Parties](1) Transactions with related parties
14th Fiscal Period [From: June 1, 2012 To: November 30, 2012]
Name ofClassification company,etc.

Parentcompany

Location

Capital stockorBusiness
investments description
in capital

Daiwa
Chiyoda-ku,
247.3
SecuritiesTokyobillion yen
Group Inc.

Holdingcompany

Percentage ofBalance at
Amount ofvoting rights, etc.
Relationship
Nature of transaction Accounting end of period
held by relatedwith related
item
transaction (thousand(thousandparty (held in the
party
yen)
yen)
Investment
Corporation)
Payment of
Investment
interest
3,500,000
corporation(Held in the
expenses on
bonds
Investment
Provision of investment
50,313
Corporation)
capitalcorporation
Other
Directly: 13.11%
bonds(current
21,166
Indirectly: 32.57%(Notesliabilities)
1 and 2)Of the amounts above, the amount of transaction does not include consumption tax, etc.
(Note 1) Issuance terms, etc. for investment corporation bonds were determined by conducting a multifaceted
analysis, including the disparity in the spread of investment corporation bonds of other similar investment
corporation bonds and the spread of senior bonds and subordinated bonds in the market (bank bonds) andverification from the spread of subordinated investment corporation bonds issued in the past in Japan.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning
conflict of interest in the internal rule of the Asset Manager.
15th Fiscal Period [From: December 1, 2012 To: May 31, 2013]
Name ofClassification company,etc.

Parentcompany

Location

Capital stockorBusiness
investments description
in capital

Daiwa
Chiyoda-ku,
247.3
SecuritiesTokyobillion yen
Group Inc.

Holdingcompany

Percentage ofBalance at
Amount ofvoting rights, etc.
Relationship
Nature of transaction Accounting end of period
held by relatedwith related(thousanditem
transaction (thousand
party (held in the
party
yen)
yen)
Investment
Corporation)
Payment of
Investment
interest
corporation
3,500,000(Held in the
expenses on
bonds
Investment
Provision of investment
48,527
Corporation)
capitalcorporation
Other
Directly: 14.99%
bonds(current
20,304
Indirectly: 32.57%(Notesliabilities)
1 and 2)Of the amounts above, the amount of transaction does not include consumption tax, etc.
(Note 1) Issuance terms, etc. for investment corporation bonds were determined by conducting a multifaceted
analysis, including the disparity in the spread of investment corporation bonds of other similar investment
corporation bonds and the spread of senior bonds and subordinated bonds in the market (bank bonds) andverification from the spread of subordinated investment corporation bonds issued in the past in Japan.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning
conflict of interest in the internal rule of the Asset Manager.
(2) Notes to parent company and significant affiliated companies
14th Fiscal Period [From: June 1, 2012 To: November 30, 2012]
Parent company’s information
Daiwa Securities Group Inc. (listed on the Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya
Stock Exchange)
15th Fiscal Period [From: December 1, 2012 To: May 31, 2013]
Parent company’s information
Daiwa Securities Group Inc. (listed on the Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya
Stock Exchange)- 25 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period[Notes to Investment and Rental Properties]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The carrying
amount, amount of increase (decrease) during period and fair value for these rental properties are as follows.
(Unit: thousand yen)
14th Fiscal Period
15th Fiscal Period[From: June 1, 2012
[From: Dec. 1, 2012
To: Nov. 30, 2012]
To: May 31, 2013]
Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period

307,324,542

308,107,273

782,731

16,869,079

308,107,273

324,976,352

276,330,000

302,510,000(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 14th Fiscal Period, the amount of
increase is mainly attributable to acquisition of West Park Osaki (1,650 million yen) and the amount ofdecrease is mainly attributable to depreciation (1,305 million yen). Of the amount of increase (decrease) for
rental properties during the 15th Fiscal Period, the amount of increase is mainly attributable to acquisition of
shinyon curumu Building (9,650 million yen), Honshu Meieki Building (5,300 million yen) and Kamiooka
Eye Mark Building (2,000 million yen) and the amount of decrease is mainly attributable to depreciation(1,280 million yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by an external real estate appraiser.
The income (loss) for investment and rental properties are as presented in “Notes to Statements of Income.”- 26 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period[Segment Information, etc.](1) Segment Information
Segment information has been omitted because the Investment Corporation has no segment except the property
leasing business.
(2) Related Information
14th Fiscal Period [From: June 1, 2012 To: November 30, 2012]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 excessof 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, plantand equipment located in Japan is in excess of 90% of the amount of property, plant and equipment onbalance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
15th Fiscal Period [From: December 1, 2012 To: May 31, 2013]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 excessof 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, plantand equipment located in Japan is in excess of 90% of the amount of property, plant and equipment onbalance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer
accounts for less than 10% of the operating revenue on statements of income.

- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period[Notes to Per Unit Information]
14th Fiscal Period
15th Fiscal Period[From: June 1, 2012
[From: Dec. 1, 2012
To: Nov. 30, 2012]
To: May 31, 2013]
Net assets per unit
508,132 yen
508,707 yen
Net income per unit
5,986.09 yen
6,541.66 yen(Note 1) The net income per unit was calculated by dividing the net income by the daily weighted average number ofinvestment units issued and outstanding. The diluted net income per unit is not stated as there are no diluted
investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
14th Fiscal Period
15th Fiscal Period[From: June 1, 2012
[From: Dec. 1, 2012
To: Nov. 30, 2012]
To: May 31, 2013]
Net income (thousand yen)
2,369,286
2,589,175
Amounts not attributable to common unitholders (thousand yen)――
Net income attributable to common investment units (thousand yen)
2,369,286
2,589,175
Average number of investment units during the period (unit)
395,798
395,798[Notes to Significant Subsequent Events](1) Acquisition of Assets(i) The Investment Corporation acquired a trust beneficial interest in real estate on July 3, 2013 as follows.
Summary of Acquired Asset
Property nameTosen Dogenzaka Daini Building
Type of asset
Trust beneficial interest in real estate
Location (indication of residential address)28-1 Maruyamacho, Shibuya-ku, Tokyo
Acquisition price4,500 million yen(excluding acquisition costs, consumption tax, etc.)
Date of execution of purchase agreement
June 25, 2013
Date of delivery
July 3, 2013
SellerNot disclosed(ii) The Investment Corporation determined to acquire a trust beneficial interest in real estate on July 19,
2013 as follows.
Summary of Acquired Asset
Property name
Akasaka Business Place
Type of asset
Trust beneficial interest in real estate
Location (indication of residential address)
2-14-5 Akasaka, Minato-ku, Tokyo
Acquisition price
9,200 million yen(excluding acquisition costs, consumption tax, etc.)
Date of execution of purchase agreement
July 19, 2013
Date of delivery
August 9, 2013 (scheduled)
SellerHakuba Capital 1 TMK(2) Borrowing of Funds(i) The Investment Corporation borrowed funds on July 3, 2013 as below.
The funds were borrowed to provide for the acquisition of the new property listed above in “(1)Acquisition of Assets (i),” etc.

- 28 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

LenderDrawdown
date

Loan amount(million yen)

Shinsei Bank, Ltd.

2013/07/03

1,000

The
Higashi-Nippon
Bank, Limited

2013/07/03

1,000

Sumitomo Mitsui
Banking
Corporation

2013/07/03

1,600Interest rate
BBA 3 month
Japanese Yen
LIBOR + 0.35%(Note 1)
JBA 1 month
Japanese Yen
TIBOR + 0.35%(Note 2)
JBA 1 month
Japanese Yen
TIBOR + 0.35%(Note 2)

Repayment
date

Borrowing/
Repayment
method2020/11/30

Unsecured
Repayment inlump sum

2020/11/30

Unsecured
Repayment inlump sum

2020/08/31

Unsecured
Repayment inlump sum

Unsecured
Repayment inlump sum(Note 1) Interest payment dates shall be the end of February, May, August and November and therepayment date (If any such date is not a business day, the immediately following businessday, and if such date falls within the next month, the immediately last business day of themonth.). The base rate applicable to the calculation period for the interest payable on aninterest payment date shall be calculated based on the 3 month Japanese Yen LIBOR which
British Banker’s Association (“BBA”) announces 2 business days prior to the first day of theinterest calculation period.
(Note 2) Interest payment dates shall be the end of every month and the repayment date (If any suchdate is not a business day, the immediately following business day, and if such date falls
within the next month, the immediately last business day of the month.). The base rateapplicable to the calculation period for the interest payable on an interest payment date shallbe calculated based on the 1 month Japanese Yen TIBOR which Japanese Bankers
Association (“JBA”) announces 2 business days prior to the first day of the interest calculation
period.
Development Bankof Japan Inc.

2013/07/03

1,000

0.833%

2018/08/31(ii) The Investment Corporation decided to borrow funds on July 19, 2013 as below.
The funds will be borrowed to provide for part of the acquisition of the new property listed above in “(1)Acquisition of Assets (ii),” etc.
Borrowing/
Drawdown
Loan amount
Repayment
LenderInterest rate
Repayment
date(million yen)datemethodJBA 1 month
Sumitomo Mitsui
UnsecuredJapanese Yen
Banking2013/08/09
1,400
2021/05/31 Repayment in
TIBOR + 0.35%
Corporation
lump sum(Note 1)
JBA 1 month
Unsecured
Sumitomo Mitsui
Japanese Yen
2013/08/09
1,000
2021/02/26 Repayment inTrust Bank, Limited
TIBOR + 0.35%
lump sum(Note 1)
JBA 1 month
Unsecured
The Bank ofJapanese Yen
2013/08/09
1,000
2018/08/31 Repayment inFukuoka, Ltd.
TIBOR + 0.27%
lump sum(Note 1)
BBA 3 month
Tokio Marine &UnsecuredJapanese Yen
Nichido Fire
2013/08/09
1,000
2018/07/31 Repayment in
LIBOR + 0.27%
Insurance Co., Ltd.
lump sum(Note 2)- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period(Note 1) Interest payment dates shall be the end of every month and the repayment date (If any suchdate is not a business day, the immediately following business day, and if such date falls
within the next month, the immediately last business day of the month.). The base rateapplicable to the calculation period for the interest payable on an interest payment date shallbe calculated based on the 1 month Japanese Yen TIBOR which Japanese Bankers
Association (“JBA”) announces 2 business days prior to the first day of the interest calculation
period.
(Note 2) Interest payment dates shall be the end of February, May, August and November and therepayment date (If any such date is not a business day, the immediately following businessday, and if such date falls within the next month, the immediately last business day of themonth.). The base rate applicable to the calculation period for the interest payable on aninterest payment date shall be calculated based on the 3 month Japanese Yen LIBOR which
British Banker’s Association (“BBA”) announces 2 business days prior to the first day of theinterest calculation period.
3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
Number of investment units
Unitholders’ capitalissued and outstanding(million yen)
Payment date
Description
Notes(units)Increase
Increase
Balance
Balance(Decrease)(Decrease)
Incorporation throughJuly 11, 2005
400
400
200
200 (Note 1)
private placement
Capital increase throughOctober 18, 2005
99,600100,000
49,49849,698 (Note 2)
public offering
Capital increase throughJuly 10, 2007
100,000
200,000
75,316125,015 (Note 3)
public offering
Capital increase by way of a
August 7, 2007
5,000
205,000
3,765
128,781 (Note 4)
third-party allotment
Capital increase by way of aJune 4, 2008
138,905
343,905
59,999188,780 (Note 5)
third-party allotment
Capital increase by way of a
July 1, 2009
51,893395,798
10,000198,780 (Note 6)
third-party allotment(Note 1) The Investment Corporation was incorporated at an issue price of 500,000 yen per unit.
(Note 2) The Investment Corporation issued new investment units through public offering at an issue price of
515,000 yen per unit (amount to be paid in: 496,975 yen) to procure funds for acquisition of properties to beacquired upon listing, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of
781,060 yen per unit (amount to be paid in: 753,165 yen) to procure funds for acquisition of acquisition
properties, etc.
(Note 4) The Investment Corporation issued new investment units by way of a third-party allotment at an issue priceof 753,165 yen per unit (amount to be paid in: 753,165 yen) to fund part of acquisition of acquisition
properties, etc.
(Note 5) The Investment Corporation issued new investment units by way of a third-party allotment at an issue priceof 431,949 yen per unit (amount to be paid in: 431,949 yen) to fund repayment of loans and redemption of
investment corporation bonds.
(Note 6) The Investment Corporation issued new investment units by way of a third-party allotment at an issue priceof 192,705 yen per unit (amount to be paid in: 192,705 yen) to fund repayment of loans, capital expenditure
to enhance property value, acquisition of property, etc.

- 30 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
4. Changes in Directors
4.1. Changes in Directors at the Investment Corporation
Not applicable.
4.2. Changes in Directors at the Asset Manager
Not applicable.

- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

5. Reference Information
5.1. Investment Status
15th Fiscal Period(As of May 31, 2013)
Total amount owned
As a percentage of(million yen)
total assets(Note 1)(%)

Type of asset

Use

RegionReal estate (Note 2)

OfficeFive Central Wards of Tokyo

16,746

4.9

Five Central Wards of Tokyo

276,153

80.6

Greater Tokyo

21,756

6.4

Major Regional Cities

10,3193.0

324,976

94.9

17,596

5.1

342,572100.0[324,976][94.9]

Trust beneficial
interest in real estate

OfficeTotal
Deposits and other assets
Total amount of assets (Note 3)(Note 1) The total amount owned is the carrying amount (the book value after deducting depreciation in the case ofreal estate and trust beneficial interest in real estate).
(Note 2) Additional acquisition of the compartmentalized ownership interest, etc. of “Sunline Building No. 7” wasmade in March 2013 and May 2013. The additionally-acquired compartmentalized ownership interest, etc.
is categorized and counted as real estate.
(Note 3) The figures in parentheses [ ] under “Total amount of assets” shows the portion of the applicable asset that,in effect, corresponds to the holding of real estate properties. The amount of construction in progress(including construction in progress in trust) is not included in the amount of real estate and trust beneficial
interest in real estate.

- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
5.2. Investment Real Estate Properties (As of May 31, 2013)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Type ofprice
RegionProperty namespecifiedEstimated price Investment
ratio
at end of period(million yen)(%)
(Note 6)(Note 7)
14,7004.2(million yen)(million yen)

(Note 4)
14,100(Note 5)
13,600

3,050

2,902

3,100

0.9

Daiwa Shibaura

8,265

8,093

7,470

2.5

Daiwa Minami-Aoyama

4,550

4,470

4,010

1.4

Daiwa Sarugakucho

3,190

3,275

3,090

1.0

Daiwa A Hamamatsucho (Note 8)

2,865

2,808

2,830

0.9

Daiwa Jingumae

2,800

2,727

2,050

0.8

Daiwa Shibadaimon

2,578

2,422

2,640

0.8

Daiwa Misakicho

2,346

2,196

2,480

0.7

2,080

2,126

2,310

0.6

1,560

1,398

1,400

0.5

1,240

1,200

1,420

0.4

2,440

2,275

2,370

0.7

Daiwa Tsukishima

7,840

7,081

7,850

2.4

Nihombashi MS

2,520

2,480

2,410

0.8

Daiwa Azabudai

1,600

1,552

1,730

0.5

Daiwa Shibuya SS

3,930

3,799

3,830

1.2

Daiwa Nihombashi Honcho

7,420

7,130

6,980

2.2

Daiwa Ginza 1-chome

4,620

4,523

4,480

1.4

Daiwa Kyobashi

3,460

3,348

3,030

1.0

2,910

2,873

2,600

0.9

Daiwa Onarimon

13,86013,597

13,300

4.2

Shinjuku Maynds Tower (Note 8)

133,800

130,907

113,000

40.3

SHIBUYA EDGE

5,900

5,792

4,040

1.8

Daiwa Kodenmacho

2,460

2,429

1,960

0.7

4,150

4,121

2,780

1.2

5,000

5,037

4,710

1.5

4,000

3,937

2,830

1.2

5,600

5,535

6,300

1.7

Jimbocho Place

3,550

3,567

3,670

1.1

E SPACE TOWER

24,00023,98026,500

7.2

Nihonbashi Hongokucho Tosei

1,721

1,719

1,830

0.5

shinyon curumu

9,650

9,983

10,1002.9

299,055

292,899

273,800

90.1

asset
Daiwa Ginza
Daiwa Ginza Annex

Daiwa Shimbashi 510
Daiwa Tsukijiekimae (Note 9)
Daiwa Tsukiji
Daiwa Tsukiji 616

Five
CentralWards of
Tokyo
(Note 1)

Carrying
amountSunline Building No. 7 (Note 10)

Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho

Real estate

Trustbeneficial
interest inreal estate

Real estate/ Trustbeneficial
interest inreal estate

Trustbeneficial
interest inreal estate

Total for Five Central Wards of Tokyo (33 properties)- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
Estimated price Investment
ratio
at end of period(million yen)(%)
(Note 6)(Note 7)3,320
1.1

Acquisition
price

Carrying
amount(million yen)(million yen)

(Note 4)
3,653

(Note 5)
3,395

2,958

2,784

3,480

0.9

4,950

4,375

3,260

1.5

7,710

7,421

5,820

2.3

1,650

1,704

1,930

0.5

Kamiooka Eye Mark

2,000

2,074

2,040

0.6

Total for Greater Tokyo (6 properties)
Major
Daiwa Minami-Senba
Regional
CitiesHonshu Meieki(Note 3)
Total for Major Regional Cities (2 properties)

22,921

21,756

19,850

6.9

4,810

4,800

2,860

1.4

5,300

5,519

6,000

1.6

10,110

10,3198,860

3.0

RegionProperty name

Type ofspecifiedasset

Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
GreaterTokyo(Note 2)Benex S-3
Daiwa Shinagawa NorthWest Park Osaki

Trust
beneficial
interest inreal estate

Trustbeneficial
interest inreal estate

Total (41 properties)
332,086
324,976
302,510100.0(Note 1) “Five Central Wards of Tokyo” means Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards.
(Note 2) “Greater Tokyo” means Tokyo excluding the Five Central Wards of Tokyo, Kanagawa, Chiba and Saitama
prefectures.
(Note 3) “Major Regional Cities” means Osaka area (i.e., Osaka, Kyoto and Hyogo prefectures), Nagoya area (Aichi,
Mie and Gifu prefectures) and ordinance-designated cities and core cities under the Local Autonomy Act.
(Note 4) Acquisition price is excluding acquisition costs, fixed property tax, city planning tax, consumption tax andlocal consumption tax.
(Note 5) Carrying amount is the book value after deducting depreciation as of May 31, 2013.
(Note 6) Estimated price at end of period is the price as of May 31, 2013 stated in appraisal reports prepared by realestate appraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii
Appraisal & Investment Consulting, Inc. and Japan Real Estate Institute in accordance with the articles ofincorporation of the Investment Corporation and the rules of The Investment Trusts Association, Japan.
(Note 7) Investment ratio is the acquisition price of each property expressed as a percentage of the total amount ofacquisition prices, rounded to one decimal place.
(Note 8) For Daiwa A Hamamatsucho Building and Shinjuku Maynds Tower, the figures are those pertaining to theInvestment Corporation’s ownership interest.
(Note 9) The property name was changed from the former name BPS Square to Daiwa Tsukijiekimae Building on
May 1, 2013. Please note that, in principle, the property is referred to by the new name in this document.
(Note 10) The type of specified asset of the compartmentalized ownership portion that was additionally acquired on
March 29, 2013 and May 29, 2013 is real estate.

- 34 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
5.2.2. Summary of Building and Leasing of Investment Real Estate
Rent revenue
Structure
Total
Occupancy
duringandConstruction Leasable
Leasednumber of
ratecurrent period
RegionProperty namenumber of completion floor area floor area
tenants(%)
floors(Note 2)
(Note 3)(Note 4)(thousand yen)
(Note 5)(Note 6)(Note 1)
(Note 7)
SRC
Daiwa Ginza
July 1963
8,267.13
7,977.58
27
96.4
355,700
B3 / 12F
SRC
Daiwa Ginza Annex
Aug. 1972
2,032.99
2,032.99
7
100.0
90,295
B3 / 8F
SRC
Daiwa Shibaura
Oct. 1987
9,626.38
8,418.7850
87.4
225,225
B1 / 12FS / SRC
Daiwa Minami-Aoyama
Sept. 1990
2,715.54
2,556.80
5
94.1
119,924
B2 / 5F
SRC
Daiwa Sarugakucho (Note 8)
June 1985
3,657.43
3,657.43
1
100.0
8F
SRC
Daiwa A Hamamatsucho
July 1993
3,663.38
3,663.38
13
100.0
132,443
B2 / 10FRC
Daiwa Jingumae
Dec. 1997
2,198.61
2,198.61
4
100.0
52,939B1 / 4F
SRC / RC
Daiwa Shibadaimon
Nov. 1996
2,386.02
2,386.02
7
100.0
83,062
B1 / 7F
S
Daiwa Misakicho (Note 8)
July 1996
2,137.53
2,137.53
1
100.0
8F
SRC
Daiwa Shimbashi 510
Apr. 1974
2,693.06
2,686.24
7
99.7
80,418
B1 / 8F
SRC
Daiwa Tsukijiekimae (Note 8)
Jan. 1996
2,659.59
275.41
1
10.3
10F
SRC
Daiwa Tsukiji
Jan. 1990
1,487.82
1,487.82
5
100.0
46,955
B1 / 7F
SRC
Daiwa Tsukiji 616
Mar. 1994
2,931.93
2,931.93
9
100.0
66,064
B1 / 9F
S
Daiwa Tsukishima
July 1996
8,426.85
8,426.853
100.0
279,484
5F
Five Central
SRC
Apr. 1993
2,850.81
2,850.81
9
100.0
83,012
Wards of Nihombashi MS
B2 / 7F
Tokyo
SRC
Daiwa Azabudai
Apr. 1984
1,697.38
1,697.38
10
100.0
42,213B2 / 9F
SRC / S
Daiwa Shibuya SS
July 1977
2,969.11
2,969.11
12
100.0
98,516
B1 / 9F
SRC
Daiwa Nihombashi Honcho
Jan. 1964
7,418.61
7,247.52
13
97.6
180,903
B1 / 10F
SRC
Daiwa Ginza 1-chome
Jan. 1962
3,758.43
3,347.84
11
89.0
112,364
B2 / 11F
SRC
Daiwa Kyobashi
Oct. 1974
3,265.83
3,252.75
9
99.5
70,037
B1 / 8F
SRC
Sunline Building No. 7
Oct. 1987
2,690.90
2,584.70
8
96.0
83,931B2 / 9F
SRC
Daiwa Onarimon
Apr. 1973 11,615.37 11,615.37
9
100.0
350,652
9F
S / SRC
Shinjuku Maynds Tower (Note 9)
Sept. 1995 45,544.00 43,233.10
3494.9
2,285,878
B3 / 34FRC
SHIBUYA EDGE
Aug. 2006
2,480.65
2,480.65
5
100.0
108,956
B1 / 9F
SRC
Daiwa Kodenmacho
Mar. 1985
2,379.31
2,379.31
8
100.0
59,201
8F
S
Daiwa JimbochoMar. 1997
3,164.26
3,164.26
7
100.0
53,640B1 / 8F
SRC
Daiwa Nishi-Shimbashi
July 1993
4,815.84
4,815.84
12
100.0
120,566
B1 / 10F
SRC
Daiwa Kudan
Mar. 1987
2,882.61
2,882.61
7
100.0
51,0729F
S / SRC
Daiwa Kayabacho (Note 8)
Apr. 2010
5,899.11
5,899.11
1
100.0
B1 / 8F- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
Structure
Rent revenue
Total
OccupancyandduringConstruction Leasable
Leasednumber of
rate
RegionProperty namenumber of completion floor area floor area
current period
tenants(%)(thousand yen)floors(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 1)S
Jimbocho Place
Feb. 2010
2,889.34
2,889.34
7
100.0
111,999
9F
S / SRCE SPACE TOWER
Oct. 2002 13,960.85 13,960.85
7
100.0
682,517
B1 / 15F
S
Nihonbashi Hongokucho Tosei
May 2010
2,143.08
2,143.08
6
100.0
60,9758F
S / RCshinyon curumu
Jan. 2012
6,756.45
3,778.98
7
55.9
117,318
B2 / 11F
Total for Five Central Wards of Tokyo (33 properties)
184,066.20 174,029.98
322
94.5
6,576,637
S
Daiwa KinshichoJan. 1992
5,378.02
5,378.026
100.0
129,646
B1 / 5F
SRC / S
Daiwa Higashi-Ikebukuro
June 1993
4,589.17
4,589.176
100.0
132,296
B1 / 9FS / SRC
Benex S-3
Feb. 1994
7,470.18
7,338.82
25
98.2
145,592
B1 / 12F
Greater
SRC
Tokyo
Daiwa Shinagawa North
July 1991
6,549.98
6,549.98
13
100.0
176,375
B1 / 11F
S / RCWest Park Osaki
Sept. 2007
1,786.58
1,786.58
5
100.0
57,409B1 / 6F
S / SRC
Kamiooka Eye MarkMay 2011
2,630.30
2,630.30
9
100.0
40,768
B3 / 7F
Total for Greater Tokyo (6 properties)
28,404.23 28,272.87
64
99.5
682,088
SRC
Major
Daiwa Minami-Senba
Sept. 1986
5,719.54
5,719.54
6
100.0
114,133
B1 / 8F
Regional
S
CitiesHonshu Meieki
Dec. 1997
7,461.90
6,378.61
18
85.4
146,830
12F
Total for Major Regional Cities (2 properties)
13,181.44 12,098.15
24
91.7
260,964
Total (41 properties)
225,651.87 214,401.00
410
95.0
7,519,690(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 to floors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment
real estate property.
(Note 3) “Leasable floor area” represents the floor area of the building of the applicable investment real estate
property that is leasable, not including the leasable area of the land (including level parking space), and is
the floor area indicated in the leasing contract, etc.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease or subleaseagreements executed with end-tenants as of May 31, 2013.
(Note 5) “Total number of tenants” is the number of end-tenants (Properties excluding Daiwa Ginza Building, Daiwa
Ginza Annex and the compartmentalized ownership portion of Sunline Building No. 7 that was additionallyacquired on March 29, 2013 and May 29, 2013 have a master lease agreement). When there is a tenant
occupying multiple buildings, the concerned tenant is counted and stated for each individual building.
(Note 6) “Occupancy rate” is the figure arrived at when leased floor area is divided by leasable floor area, rounded
down to one decimal place.
(Note 7) “Rent revenue during current period” is rent income, common area charges income, parking lot income andother income generated from the applicable investment real estate property during the 15th 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 property.
(Note 9) Leasable floor area and leased floor area are calculated for the common ownership interest in the real estatein trust pertaining to trust beneficial interest held by the Investment Corporation, which corresponds tosix-sevenths of the entire Property. Accordingly, leasable floor area and leased floor area are the floor areas
corresponding to six-sevenths of the entire building.

- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A. Capital Expenditures for 16th Fiscal Period
The following are the principal capital expenditures arising from renovation construction work, etc. currently
planned for existing portfolio properties. Please note that the expected construction amount includes portions
that are expensed as a separate account item of accounting costs.
Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Shibuya SS(Shibuya-ku, Tokyo)
Daiwa Ginza(Chuo-ku, Tokyo)

PurposeRenovation work for common area
Upgrading of lighting for exclusivearea
Replacement of CO2 fire
extinguisher cylinder valve
Renovation work for north sidecurtain wall portion
Renovation work for below-groundventilation system

Scheduled
implementation
periodFrom: Aug. 2013
To: Oct. 2013
From: Aug. 2013
To: Oct. 2013
From: Aug. 2013
To: Oct. 2013
From: Oct. 2013
To: Nov. 2013
From: Sept. 2013
To: Nov. 2013

Expected construction amount (million yen)
Total
Amount paid
Total amountamount during current period already paid
41

–

–

40

–

–

27

–

–

22

–

–

20

–

–

B. Capital Expenditures during 15th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented
during the 15th Fiscal Period. Capital expenditures for the 15th Fiscal Period amounted to 277 million yen and,
when combined with the 215 million yen in repair expenses charged to 15th Fiscal Period expenses, totals 493
million yen in construction work implemented.
Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

Purpose

PeriodRenovation work for common area on 4F, 15F and 17F
Renovation work for common area on 3F, 18F and 21F
Construction work for upgrading of integrating
watt-meters, etc.

Other

Construction amount paid
(million yen)

From: Nov. 2012
To: Dec. 2012
From: Apr. 2013
To: May 2013
From: Apr. 2013
To: May 2013
From: Dec. 2012
To: May 2013

22
20
19
215

Total

277

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 the payment of future major repairs.
(Unit: million yen)
11th
12th
13th
14th
15th
Fiscal Period
Fiscal Period
Fiscal Period
Fiscal Period
Fiscal Period
Fiscal period
Balance of reserve at
end of previous period
Amount of reserve incurrent period
Reversal of reserve incurrent period
Amount carried forward
to next period[From: Dec. 1, 2010
To: May 31, 2011][From: June 1, 2011
To: Nov. 30, 2011][From: Dec. 1, 2011
To: May 31, 2012][From: June 1, 2012
To: Nov. 30, 2012][From: Dec. 1, 2012
To: May 31, 2013]

803

1,369

1,239

1,058

611

601

－

306

89

619

36

130

487

536

424

1,369

1,239

1,058

611

806

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period
5.2.4. Summary of Estimated Price at End of Period (As of May 31, 2013)
Summary of Appraisal Report
Estimated price
DCF method
at end of period Direct capitalization method
Property nameDiscount Terminal(million yen)
Price
Price
Cap raterate
cap rate(Note 1)(million yen)(million yen)
(%)
(%)
(%)
Daiwa Ginza
14,70015,7004.3
14,200
4.0
4.6
Daiwa Ginza Annex
3,100
3,150
4.2
3,040
3.9
4.5
Daiwa Shibaura
7,470
7,560
5.0
7,430
4.8
5.2
Daiwa Minami-Aoyama
4,010
4,090
4.6
3,930
4.3
4.9
Daiwa Sarugakucho
3,090
3,140
5.1
3,040
4.8
5.4
Daiwa A Hamamatsucho (Note 2)
2,830
2,860
4.7
2,820
4.5
4.9
Daiwa Jingumae
2,050
2,060
4.5
2,040
4.2
4.8
Daiwa Shibadaimon
2,640
2,700
4.6
2,610
4.4
4.8
Daiwa Misakicho
2,480
2,500
5.1
2,470
4.9
5.3
Daiwa Shimbashi 510
2,310
2,390
4.8
2,270
4.5
5.1
Daiwa Tsukijiekimae
1,400
1,500
5.1
1,360
5.1
5.4
Daiwa Tsukiji
1,420
1,450
5.0
1,410
5.0
5.3
Daiwa Tsukiji 616
2,370
2,400
4.9
2,360
4.6
5.1
Daiwa Tsukishima
7,850
7,890
5.1
7,830
4.8
5.3
Nihombashi MS
2,410
2,460
4.8
2,350
4.5
5.1
Daiwa Azabudai
1,730
1,770
4.6
1,690
4.3
4.9
Daiwa Shibuya SS
3,830
4,010
4.6
3,750
4.3
4.9
Daiwa Nihombashi Honcho
6,980
7,330
4.7
6,830
4.3
5.0
Daiwa Ginza 1-chome
4,480
4,730
4.5
4,370
4.1
4.8
Daiwa Kyobashi
3,030
3,090
4.7
2,960
4.4
5.0
Sunline Building No. 7
2,600
2,730
4.4
2,540
4.1
4.7
Daiwa Onarimon
13,30013,500
4.5
13,100
4.2
4.8
Shinjuku Maynds Tower (Note 3)
113,000
139,000
3.8
129,000
3.6
4.0
SHIBUYA EDGE
4,040
4,240
4.4
3,960
4.1
4.7
Daiwa Kodenmacho
1,960
2,000
5.0
1,910
4.7
5.3
Daiwa Jimbocho
2,780
2,970
5.0
2,700
5.0
5.3
Daiwa Nishi-Shimbashi
4,710
4,890
4.8
4,630
4.5
5.0
Daiwa Kudan
2,830
3,040
4.8
2,750
4.8
5.1
Daiwa Kayabacho
6,300
6,390
4.4
6,260
4.2
4.6
Jimbocho Place
3,670
3,760
4.4
3,630
4.2
4.6
E SPACE TOWER
26,50026,9004.2
26,1004.0
4.4
Nihonbashi Hongokucho Tosei
1,830
1,860
5.0
1,820
4.8
5.2
shinyon curumu
10,10010,400
4.3
10,000
4.1
4.5
Daiwa Kinshicho
3,320
3,380
5.3
3,290
5.1
5.5
Daiwa Higashi-Ikebukuro
3,480
3,510
5.2
3,470
5.0
5.4
Benex S-3
3,260
3,320
5.6
3,200
5.3
5.9
Daiwa Shinagawa North
5,820
5,960
5.0
5,680
4.7
5.3
West Park Osaki
1,930
1,950
4.8
1,920
4.6
5.0
Kamiooka Eye Mark
2,040
2,030
5.6
2,040
5.4
5.8
Daiwa Minami-Senba
2,860
2,900
5.5
2,820
5.2
5.8
Honshu Meieki
6,000
6,100
5.2
5,950
5.2
5.4
Total
302,510
333,610315,530-- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period(Note 1) “Estimated price at end of period” is the price as of May 31, 2013 stated in appraisal reports prepared byreal estate appraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii
Appraisal & Investment Consulting, Inc. and Japan Real Estate Institute in accordance with the articles ofincorporation 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 ownershipinterest.
(Note 3) 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 priceindicated by the DCF method are the prices pertaining to the entire Property.

- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th 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 15th Fiscal Period (fromDecember 1, 2012 to May 31, 2013). Income (loss) information is presented in accordance with “3. Financial
Statements; 3.7. Notes to Significant Accounting Policies” outlined earlier.
RegionFive Central Wards of Tokyo

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

14,100

3,050

8,265

4,550

3,190

4.2

0.9

2.5

1.4

1.0

13,600

2,902

8,093

4,470

3,275

14,700

3,100

7,470

4,010

3,090

27

7

50

5

1

8,267.13

2,032.99

9,626.38

2,715.54

3,657.43

7,977.58

2,032.99

8,418.78

2,556.80

3,657.43

End of May 2011

80.1

88.0

98.8

100.0

100.0

End of Nov. 2011

84.9

100.0

99.1

100.0

0.0

End of May 2012

86.9

100.0

98.3

100.0

100.0

End of Nov. 2012

94.3

100.0

98.8

100.0

100.0

End of May 2013

96.4

100.0

87.4

94.1

100.0

182

182

182

182

182

355,700

90,295

241,949

122,624－355,700

90,295225,225

119,924－－－

16,7242,700－

165,483

38,784

98,11039,483－19,084

5,269

15,938

5,825

－
－

2

Leasable floor area (m )2Leased floor area (m )Leasing
information

Occupancy rate (%)

Number of days of asset management
Total property leasing revenue (A)(thousand yen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses
Income(loss)
information

Daiwa
Shibaura

Daiwa
Sarugakucho(Note 4)

Daiwa
Ginza

Investment ratio (%)
Price
Carrying
amount (million yen)
information
Estimated price at end of period(million yen)
Number of tenants (Note 1)

Daiwa
Ginza Annex

Daiwa
MinamiAoyama

Property nameUtilities expenses

28,8505,820

20,051

7,594

Taxes and dues

27,6809,116

19,262

11,573

－

456

109

432

157

－

Repair expenses

8,062

396

17,113

3,094－

Depreciation (C)69,507

18,072

25,292

11,239－11,841

－

20

－

－

190,216

51,511

143,838

83,140－259,724

69,583

169,131

94,37988,287

Non-life insurance expenses

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

11,017

5,081

5,091

5,484

1,152

NCF [(E) – (F)] (thousand yen)

248,70764,501

164,039

88,894

87,134

46.52

42.95

40.55

32.20

－

55,191

18,05337,88522,923

13,299128,190

34,770218,640

111,190

162,170

Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

RegionFive Central Wards of Tokyo

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

2,865

2,800

2,578

2,346

2,080

Investment ratio (%)
Price
Carrying
amount (million yen)
information
Estimated price at end of period(million yen)
Number of tenants (Note 1)

0.9

0.8

0.8

0.7

0.6

2,808

2,727

2,422

2,196

2,126

2,830

2,050

2,640

2,480

2,310

13

4

7

1

7

3,663.38

2,198.61

2,386.02

2,137.53

2,693.06

3,663.38

2,198.61

2,386.02

2,137.53

2,686.24

End of May 2011

100.0

78.5

100.0

100.0

100.0

End of Nov. 2011

100.0

78.5

100.0

100.0

97.4

End of May 2012

100.0

100.0

78.0

100.0

99.7

End of Nov. 2012

100.0

100.0

100.0

100.0

99.7

End of May 2013

100.0

100.0

100.0

100.0

99.7

182

182

182

182

182

132,443

52,93983,062－80,418132,443

52,93983,062－80,418

－

－

－

－

－

73,021

26,31332,012－

28,075

10,912

4,215

6,677

－

5,930

2

Leasable floor area (m )2Leased floor area (m )Leasing
information

Occupancy rate (%)

Number of days of asset management
Total property leasing revenue (A)(thousand yen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses
Income(loss)
information

Daiwa
Shibadaimon

Daiwa
Shimbashi 510

Daiwa A
Hamamatsucho

Acquisition price (million yen)

Daiwa
Jingumae

Daiwa
Misakicho(Note 4)

Property nameUtilities expenses

9,512

5,001

6,698

－

5,957

Taxes and dues

8,655

6,354

6,271

－

5,612

197

85

118

－

118

1,950

507

91

－

3,728

Non-life insurance expenses
Repair expenses
Depreciation (C)Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

12,391

10,142

12,156－

6,677

29,400

7

－

－

50

59,422

26,62651,050－52,342

71,81336,76963,206

68,90859,020Capital expenditures (F) (thousand yen)

21,396

1,233

1,199

3,344

410

NCF [(E) – (F)] (thousand yen)

50,41735,53562,00765,56458,610

55.13

49.70

38.54

－

34.91

17,037

12,604

12,162

10,293

11,087

115,840

84,98098,390129,500

117,390

Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
Tsukijiekimae(Note 4)

Acquisition dateJan. 2006
1,560

Acquisition price (million yen)
Investment ratio (%)
Price
Carrying
amount (million yen)
information
Estimated price at end of period(million yen)
Number of tenants (Note 1)

Daiwa
Tsukishima

Nihombashi
MSJan. 2006

Mar. 2006

Mar. 2006

May 2006

1,240

2,440

7,840

2,520

0.5

0.4

0.7

2.4

0.8

1,200

2,275

7,081

2,480

1,400

1,420

2,370

7,850

2,410

1

5

9

3

9

2,659.59

1,487.82

2,931.93

8,426.85

2,850.81

275.41

1,487.82

2,931.93

8,426.85

2,850.81

End of May 2011

100.0

100.0

100.0

100.0

100.0

End of Nov. 2011

100.0

100.0

100.0

100.0

100.0

End of May 2012

0.0

100.0

89.7

100.0

100.0

End of Nov. 2012

0.0

100.0

100.0

100.0

100.0

End of May 2013

Leasable floor area (m )2Leased floor area (m )Income(loss)
information

Daiwa
Tsukiji 616

1,398

2

Leasing
information

Daiwa
TsukijiOccupancy rate (%)

10.3

100.0

100.0

100.0

100.0

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

182

182

182

182

182

－

52,983

72,638279,484

83,012－

46,95566,064279,484

83,012Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses

－

6,028

6,574

－

－

－

20,10344,818120,965

34,363

－

5,454

7,553

12,188

4,945

Utilities expenses

－

3,028

6,756

24,421

6,088

Taxes and dues

－

3,847

6,741

13,2686,575

Non-life insurance expenses

－

59

130

320

135

Repair expenses

－

573

2,981

2,801

4,953

Depreciation (C)

－

7,141

20,65567,964

11,664

－

－

－

－

－

－

32,88027,820158,519

48,648(10,908)

40,021

48,475

226,484

60,313

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)
NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)

5,698

495

4,749

690

1,597

(16,607)

39,52643,726

225,794

58,715

－

37.94

61.70

43.28

41.40

10,007

7,589

13,194

26,427

12,941

114,750

49,77073,410331,450

139,000- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

RegionFive Central Wards of Tokyo

Acquisition date
Acquisition price (million yen)
Investment ratio (%)
Price
Carrying
amount (million yen)
information
Estimated price at end of period(million yen)
Number of tenants (Note 1)

Daiwa
Ginza 1-chome

May 2006

May 2006

July 2006

July 2006

July 2006

1,600

3,930

7,420

4,620

3,460

Daiwa
Kyobashi

0.5

1.2

2.2

1.4

1.0

3,799

7,130

4,523

3,348

1,730

3,830

6,980

4,480

3,030

10

12

13

11

9

1,697.38

2,969.11

7,418.61

3,758.43

3,265.83

1,697.38

2,969.11

7,247.52

3,347.84

3,252.75

End of May 2011

100.0

100.0

73.5

97.9

42.1

End of Nov. 2011

100.0

100.0

73.5

88.1

53.7

End of May 2012

100.0

87.0

85.2

96.9

88.6

End of Nov. 2012

80.2

100.0

97.6

98.8

100.0

End of May 2013

100.0

100.0

97.6

89.0

99.5

182

182

182

182

182

42,213

98,516

180,903112,364

72,272

42,213

98,516

180,903112,364

70,037

－

－

－

－

2,234

22,49851,27363,96347,59644,576

5,601

6,521

8,260

6,674

6,088

Utilities expenses

3,469

9,120

13,552

7,659

8,026

Taxes and dues

4,865

9,537

11,843

7,873

7,043

Non-life insurance expenses

87

140

297

148

141

Repair expenses

615

9,694

579

5,318

5,790

Depreciation (C)7,858

16,25929,42919,84817,487

－

－

－

74

－

19,71547,243116,939

64,76827,69527,57363,502

146,369

84,61645,182

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

Number of days of asset management
Total property leasing revenue (A)(thousand yen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses
Income(loss)
information

Daiwa
Nihombashi
Honcho1,552

2

Leasing
information

Daiwa
Shibuya SS

Daiwa
Azabudai

Property name

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

3,701

1,818

7,902

2,237

13,875

NCF [(E) – (F)] (thousand yen)

23,871

61,683

138,467

82,37831,307

53.30

52.05

35.36

42.36

61.68

9,605

18,51722,961

15,567

13,79867,880113,840

116,900

191,730

61,450

Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

RegionFive Central Wards of Tokyo

Property nameSunlineBuilding No. 7(Note 5)Acquisition date

Oct. 2006

Dec. 2006

Acquisition price (million yen)

2,910

13,860July and Nov.
2007
133,800

Investment ratio (%)

0.9

4.2

40.3

2,873

13,5972,600

SHIBUYAEDGE

Daiwa
Kodenmacho

July 2007

Aug. 2007

5,900

2,460

1.8

0.7

130,907

5,792

2,429

13,300113,000

4,040

1,960

8

9

34

5

8

Leasable floor area (m )2,690.90

11,615.37

45,544.00

2,480.65

2,379.31

Leased floor area (m2)

2,584.70

11,615.37

43,233.10

2,480.65

2,379.31

End of May 2011

79.7

100.0

99.9

100.0

100.0

End of Nov. 2011

68.1

87.1

99.9

100.0

100.0

End of May 2012

88.4

100.0

99.9

100.0

100.0

End of Nov. 2012

100.0

100.0

98.3

100.0

100.0

End of May 2013

96.0

100.0

94.9

100.0

100.0

182

182

182

182

182

83,931

350,8022,337,137

108,956

59,201

83,931

350,652

2,285,878

108,956

59,201－

150

51,258－－41,415

105,614

1,174,345

36,50622,710Price
information Carrying amount (million yen)
Estimated price at end of period(million yen)
Number of tenants (Note 1)
2

Leasing
information

Shinjuku
Maynds Tower

Occupancy rate (%)

Number of days of asset management
Total property leasing revenue (A)(thousand yen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses
Income(loss)
information

Daiwa
Onarimon

5,756

16,207

170,767

5,807

3,993

Utilities expenses

6,851

24,391

269,350

6,583

4,684

Taxes and dues

13,61633,677

253,706

7,319

3,632

Non-life insurance expenses

146

434

3,987

110

86

Repair expenses

4,759

1,357

106,439

222

1,103

Depreciation (C)10,28429,545365,375

16,462

8,387

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

－

－

4,718

－

822

42,515245,188

1,162,792

72,45036,49152,800274,734

1,528,167

88,91344,878

Capital expenditures (F) (thousand yen)

372

3,091

117,449

2,156

851

52,427

271,643

1,410,717

86,75744,026

49.34

30.11

50.25

33.51

38.36

26,67367,268494,001

14,538

7,190

68,810236,800

2,502,610

48,29070,970

NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

RegionFive Central Wards of Tokyo
Jimbocho
Place

Acquisition dateMar. 2010

Aug. 2010

Sept. 2010

Mar. 2011

Mar. 2011

4,150

5,000

4,000

5,600

3,550

Investment ratio (%)
Price
Carrying
amount (million yen)
information
Estimated price at end of period(million yen)
Number of tenants (Note 1)

1.2

1.5

1.2

1.7

1.1

4,121

5,037

3,937

5,535

3,567

2,780

4,710

2,830

6,300

3,670

7

12

7

1

7

3,164.26

4,815.84

2,882.61

5,899.11

2,889.34

3,164.26

4,815.84

2,882.61

5,899.11

2,889.34

End of May 2011

100.0

79.1

100.0

100.0

100.0

End of Nov. 2011

100.0

55.0

88.1

100.0

100.0

End of May 2012

20.6

79.6

88.0

100.0

100.0

End of Nov. 2012

86.7

80.7

100.0

100.0

100.0

End of May 2013

100.0

100.0

100.0

100.0

100.0

182

182

182

182

182

53,640120,566

51,072－111,999

53,640120,566

51,072－111,999

－

－

－

－

－

52,566

97,57948,494－44,028

8,951

18,963

5,197

－

7,484

2

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

Number of days of asset management
Total property leasing revenue (A)(thousand yen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses
Income(loss)
information

Daiwa
Kayabacho(Note 4)

Daiwa
Kudan

Daiwa
Jimbocho

Acquisition price (million yen)

Leasing
information

Daiwa
NishiShimbashi

Property nameUtilities expenses

7,367

10,559

7,334

－

7,269

Taxes and dues

10,78415,806

8,550

－

9,433

Non-life insurance expenses

139

256

119

－

133

Repair expenses

621

1,431

2,867

－

－

Depreciation (C)24,46350,56024,424－

19,708

238

3

－

－

－

1,074

22,986

2,578－

67,97025,53773,54627,003

148,155

87,678Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)

4,069

9,280

1,835

－

－

NCF [(E) – (F)] (thousand yen)

21,46864,26625,168148,155

87,678

98.00

80.93

94.95

－

39.31

20,91230,996

16,87525,185

18,663126,090

187,140

141,450

38,44026,390

Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

RegionFive Central Wards of Tokyo

Acquisition dateJuly 2011

Acquisition price (million yen)

24,000

Daiwa
HigashiIkebukuro

Daiwa
Kinshicho

Dec. 2012 andApr. 2013
1,721
9,650

May 2012

Oct. 2005

Oct. 2005

3,653

2,958

0.5

2.9

1.1

0.9

23,980

1,719

9,983

3,395

2,784

26,5001,830

10,100

3,320

3,480

7

6

7

6

6

Leasable floor area (m )13,960.85

2,143.08

6,756.45

5,378.02

4,589.17

Leased floor area (m2)

13,960.85

2,143.08

3,778.98

5,378.02

4,589.17

End of May 2011

－

－

－

100.0

97.9

End of Nov. 2011

100.0

－

－

100.0

97.9

End of May 2012

100.0

100.0

－

100.0

90.1

End of Nov. 2012

100.0

100.0

－

100.0

100.0

End of May 2013

100.0

100.0

55.9

100.0

100.0

182

182

180

182

182

689,373

60,975

117,318

129,646

132,296

682,51760,975

117,318

129,646

132,296

6,856

－

－

－

－

225,216

20,94752,20570,87860,574Price
information Carrying amount (million yen)
Estimated price at end of period(million yen)
Number of tenants (Note 1)
2

Occupancy rate (%)

Number of days of asset management
Total property leasing revenue (A)(thousand yen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses
Income(loss)
information

shinyoncurumu(Note 6)

7.2

Investment ratio (%)

Leasing
information

Nihonbashi
Hongokucho
Tosei

E-SPACE
TOWER

Property nameGreater Tokyo

55,716

4,208

22,216

13,443

12,029

Utilities expenses

45,302

3,490

5,750

12,481

16,128

Taxes and dues

57,3695

1

11,984

8,794

Non-life insurance expenses

700

85

234

268

255

Repair expenses

2,521

－

－

4,026

1,190

Depreciation (C)63,48913,15724,00328,674

22,175

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

116

－

－

－

－

464,156

40,027

65,112

58,76871,722

527,646

53,184

89,11687,44393,898

Capital expenditures (F) (thousand yen)

6,200

150

5,043

4,930

6,959

521,446

53,034

84,07282,512

86,938

32.67

34.35

44.50

54.67

45.79

112,9228,856

35,42023,356

17,468317,590

22,401

65,855

285,600

141,210

NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

RegionGreater Tokyo

Property name

Benex S-3

Acquisition dateWest Park
Osaki

Kamiooka
Eye Mark

Daiwa
Minami-Senba

July 2007

Sept. 2012

Mar. 2013

Aug. 2007

Acquisition price (million yen)

4,950

7,710

1,650

2,000

4,810

Investment ratio (%)

1.5

2.3

0.5

0.6

1.4

4,375

7,421

1,704

2,074

4,800

3,260

5,820

1,930

2,040

2,860

25

13

5

9

6

2

Leasable floor area (m )7,470.18

6,549.98

1,786.58

2,630.30

5,719.54

Leased floor area (m2)

7,338.82

6,549.98

1,786.58

2,630.30

5,719.54

Occupancy rate (%)
End of May 2011

95.6

100.0

－

－

91.7

End of Nov. 2011

89.5

100.0

－

－

91.7

End of May 2012

96.6

100.0

－

－

100.0

End of Nov. 2012

88.0

100.0

100.0

－

92.7

End of May 2013

98.2

100.0

100.0

100.0

100.0

182

182

182

92

182

145,592

176,375

57,40940,768116,990

145,592

176,375

57,40940,768114,133

－

－

－

－

2,857

99,33583,853

18,91615,094

71,372

Number of days of asset management
Total property leasing revenue (A)(thousand yen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses
Income(loss)
information

Daiwa
ShinagawaNorth

May 2006

Price
information Carrying amount (million yen)
Estimated price at end of period(million yen)
Number of tenants (Note 1)

Leasing
information

Major Regional
Cities

20,56615,302

3,834

4,085

13,631

Utilities expenses

18,764

15,052

3,655

2,068

9,848

Taxes and dues

15,26918,7144

16

10,874Non-life insurance expenses

397

378

75

71

254

Repair expenses

4,563

1,714

413

－

5,357

Depreciation (C)39,77432,69010,933

8,852

31,406

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

－

－

－

－

－

46,256

92,521

38,492

25,67445,61886,030125,21149,42534,52777,025

Capital expenditures (F) (thousand yen)

10,093

3,956

－

－

3,032

NCF [(E) – (F)] (thousand yen)

75,936

121,254

49,42534,52773,993

68.23

47.54

32.95

37.02

61.01

30,48436,155

7,890－

21,206

402,880

191,640

37,912

24,782

107,090

Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 47 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period

RegionMajor Regional
CitiesProperty name

Honshu Meieki

Acquisition dateFeb. 2013

Acquisition price (million yen)

5,300

Investment ratio (%)

1.6

Price
information Carrying amount (million yen)
Estimated price at end of period(million yen)
Number of tenants (Note 1)
2

Leasing
information

6,000
18

Leasable floor area (m )7,461.90

Leased floor area (m2)

6,378.61

Occupancy rate (%)
End of May 2011－

End of Nov. 2011－

End of May 2012－

End of Nov. 2012－

End of May 2013

85.4

Number of days of asset management
Total property leasing revenue (A)(thousand yen)
Rent revenue – real estate
Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses
Income(loss)
information

5,519

120
146,830
146,830－
58,814
21,889

Utilities expenses

6,574

Taxes and dues

17

Non-life insurance expenses

296

Repair expenses

6,890

Depreciation (C)23,135

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

111,151

Capital expenditures (F) (thousand yen)325

NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)

11
88,016

110,82640.06－
170,803- 48 -

Daiwa Office Investment Corporation (8976) Financial Report for the 15th Fiscal Period(Note 1) 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 estimatedto arise over the 12-year period from the 1st year to the 12th year as stated in the building investigation
diagnosis report.
(Note 3) Estimated long-term repair expenses of “Daiwa Kayabacho Building” are the total amount of repair
expenses and renewal expenses estimated to arise over the 10-year period from the 1st year to the 10th year
as stated in the building investigation diagnosis report.
(Note 4) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue,
etc. for the property.
(Note 5) Additional acquisition of compartmentalized ownership interest of “Sunline Building No. 7” was made inMarch 2013 and May 2013. The number of days of asset management, annual amount of fixed property tax,
etc. for fiscal 2013 and estimated long-term repair expenses are shown without taking into consideration the
additionally-acquired compartmentalized ownership interest portion.
(Note 6) “shinyon curumu Building” was acquired in December 2012 and April 2013. The number of days of asset
management and annual amount of fixed property tax, etc. for fiscal 2013 is shown for the December 2012acquisition portion only.

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