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 20th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:

January 20, 2016
Daiwa Office Investment Corporation
Stock Exchange Listing: TSE
8976
URL: http://www.daiwa-office.co.jp
Nobuaki Omura, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Akira Yamanouchi, President and Representative Director
Yuji Shinotsuka, Vice President and Representative Director
TEL: +81-3-6215-9649
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:February 23, 2016
February 16, 2016

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

1. Status of Management and Assets for the 20th Fiscal Period
20th Fiscal Period: Fiscal period ended November 2015 (from June 1, 2015 to November 30, 2015)
19th Fiscal Period: Fiscal period ended May 2015 (from December 1, 2014 to May 31, 2015)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
20thPeriod19th
PeriodOperating income

Ordinary income

Net income¥11,837 million

14.0%¥5,614 million

17.7%¥4,689 million

16.3%¥4,688 million

16.3%¥10,387 million

6.4%¥4,770 million

7.5%¥4,032 million

10.7%¥4,031 million

10.7%

Net income
per unit
20th
Period19th
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥9,692

2.0%

1.1%

39.6%

¥9,141

1.8%

1.0%

38.8%

(Note) Net income per unit is calculated using the following daily weighted average number of investment units issued and outstanding:
20th Period: 483,754 units; 19th Period: 441,000 units(2) Distributions
Distribution amount
per unit(excluding distribution
amount in excess of earnings)

20thPeriod19th
PeriodTotal distribution amount(excluding distribution
amount in excess of earnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Distribution
amount to
net assets

Dividend
payout¥9,688¥4,688 million¥0¥– million

100.0%

1.9%¥9,142¥4,031 million¥0¥– million

100.0%

1.8%(3) Financial Position
Total assets
20th
Period19th
PeriodUnitholders’ equity tototal assets

Net assets

Net assets
per unit¥460,705 million¥247,700 million

53.8%¥511,777¥432,232 million¥222,954 million

51.6%¥505,566-1-

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(4) Cash FlowsNet cashprovided by (used in)operating activities
20th
Period19th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥6,530 million(¥31,677 million)¥21,056 million¥18,700 million¥27,578 million(¥49,414 million)¥26,859 million¥22,790 million

2. Management Status Forecasts for the 21st Fiscal Period and 22nd Fiscal Period
21st Fiscal Period: Fiscal period ending May 2016 (from December 1, 2015 to May 31, 2016)
22nd Fiscal Period: Fiscal period ending November 2016 (from June 1, 2016 to November 30, 2016)[% figures show the period-over-period increase (decrease)]

Operating revenue
21stPeriod22nd
PeriodOperating income

Net income¥11,922 million

0.7%¥5,567 million(0.8%)¥4,769 million

1.7%¥4,767 million

1.7%¥12,132 million

1.8%¥5,601 million

0.6%¥4,793 million

0.5%¥4,791 million

0.5%

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

21stPeriod22nd
PeriodOrdinary income

Distribution amount in excess of earnings per unit

¥9,850¥0¥9,900¥0(Reference) Estimated net income per unit for the 21st Fiscal Period: ¥9,850; 22nd Fiscal Period: ¥9,900

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies due to amended accounting standards, etc.:
None(ii) Changes in accounting policies other than (i):None(iii) Changes in accounting estimates:None(iv) Retrospective restatement:
None(2) Total Number of Investment Units Issued and Outstanding(i) Total number of investment units issued and outstanding at end of period (including treasury units):
20th Fiscal Period: 484,000 units
19th Fiscal Period:(ii) Total number of treasury units at end of period:
20h Fiscal Period:– units
19th Fiscal Period:

441,000 units– units(Note) Please refer to “Notes to Per Unit Information” on page 27 for the number of investment units used as the basis for calculating the net
income per unit.
* Presentation of the status of implementation of audit proceduresThis financial report (kessan tanshin) is exempt from the audit procedures pursuant to the Financial Instruments and Exchange Act (Act No. 25
of 1948; including amendments thereto) (hereinafter referred to as the “Financial Instruments and Exchange Act”) and, at the time of disclosure ofthis financial report (kessan tanshin), the audit procedures pursuant to the Financial Instruments and Exchange Act have not been completed.
* Explanation of the appropriate use of the management status forecasts, and other matters of special note
The forecast figures are forward-looking statements based on information currently available to Daiwa Office Investment Corporation andinvolve uncertainties. Accordingly, the actual operating revenue, operating income, ordinary income, net income and distribution amount per unit
may vary due to changes in the status. In addition, the forecast is not a guarantee of the distribution amount. For details on the assumptions
underlying the forecast figures above, please refer to “Assumptions for the Management Status Forecasts for the 21st Fiscal Period and 22nd Fiscal
Period” on page 9.

-2-

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
Disclosure is omitted because there are no significant changes from the “Structure of the Investment Corporation” set out inthe most recent periodic securities report (yuka shoken hokokusho) (submitted on August 25, 2015).

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 August 25,2015) as of date of this document.
2.2. Management Status(1) Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Investment Corporation was established on July 11, 2005 in accordance with the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate Asset Management Co., Ltd.
(former name K.K. daVinci Select) (the “Asset Manager”) as the organizer. After its establishment, the Investment
Corporation implemented an additional issuance of investment units through a public offering (99,600 units) on October18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE) Real Estate Investment Trust Section (stock code:8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price), subsequent activities,
such as additional acquisition of properties and replacement of portfolio properties, resulted in the assets undermanagement amounting to 445,777 million yen as of the last day of November 2015.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets based on aclear portfolio development policy of specializing in investment in office buildings, with a particular focus on investment
in a total floor area of more than about 2,000m2 situated in downtown Tokyo, as well as through dedicated efforts toheighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment (from June 2015 to November 2015)
The Japanese economy during the fiscal period under review saw a modest recovery against the backdrop of the
improving employment and income environments, the improvement in corporate performance and increase in capital
investment boosted by the continuous yen depreciation from the Bank of Japan’s monetary easing measures as well as thedepression of prices due to low crude oil prices.
In the office building leasing market in central Tokyo, with new supply having settled down, the vacancy rate took aturn after peaking in June 2013, dropping to 4.19% at the end of November 2015. Led by improvement in the vacancy rate
for large buildings, the overall vacancy rate that includes small- to medium-sized buildings also continues to be on an
improving trend. The drop in the vacancy rate has led to an increase in office rent in some areas, and the market as awhole continues to see increase in rent, albeit slight.
For the office building transaction market, an appetite for property acquisitions continued to be strong among real estatecompanies, funds (including J-REITs) and oversea investors with the continuing proactive lending attitude by financial
institutions backed by the forecast of an increase in property prices in accordance with expectations for economic
recovery.
b. Management Performance
In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sales of properties) over the
medium to long term, the Investment Corporation continued to work on “external growth,” which aims to boost revenue
through acquisition of properties, and “internal growth,” which aims to maximize income generating from owned
properties.
Concerning external growth, the Investment Corporation acquired “River Gate” (acquisition price: 28,000 million yen)in June 2015, “Daiwa Hatchobori ekimae” (acquisition price: 2,871 million yen) and “Daiwa Hatchobori ekimae West”(acquisition price: 1,647 million yen) in September 2015. As a result, the Investment Corporation’s assets undermanagement as of the end of the 20th Fiscal Period (November 30, 2015) totaled 50 properties, the sum total ofacquisition prices of which amounted to 445,777 million yen.
Concerning internal growth, while the office leasing market weakened, the Investment Corporation conducted proactive
leasing, such as capturing needs for floor expansion within the same property through strengthening relationships withexisting tenants and reinforcing collaboration with leasing brokers and property managers. As a result, the occupancy rate
as of the end of the 20th Fiscal Period (November 30, 2015) was 98.3%.

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Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
C. Overview of Capital Procurementa. Procurement of Capital for New Property Acquisitions
In the 20th Fiscal Period, the Investment Corporation issued the following investment units to fund the acquisition of new
properties.
・A public offering with the payment date on June 1, 2015 (41,045 issued units, paid-in price of 563,914 per unit, a total
paid-in price of 23,145,850,130 yen) and a third-party allotment with the payment date on June 24, 2015 (1,955 issued
units, paid in price of 563,914 per unit, a total paid-in price of 1,102,451,870 yen) were implemented to fund theacquisition of a new property (River Gate) acquired on June 2, 2015 and to procure part of repayment funds for the
borrowings made to acquire new properties (Glass City Shibuya and Meguro Place Tower) acquired on May 1, 2015.
In the 20th Fiscal Period, the Investment Corporation made the following borrowings to fund the acquisition of new
properties.
・A total of 5,000 million yen was borrowed from the Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking
Corporation, Sumitomo Mitsui Trust Bank, Ltd. and Nippon Life Insurance Company on September 11, 2015 to fundthe acquisition of new properties (Daiwa Hatchobori ekimae and Daiwa Hatchobori ekimae West) acquired on the sameday.
A commitment-type term loan agreement with a 20,500 million yen maximum available borrowing amount was
concluded with Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited,
Resona Bank, Ltd. and Shinsei Bank, Ltd. on April 27, 2015, but the agreement ended with the expiration of theborrowing period on June 17, 2015.
b. Procurement of Capital for Repayment of Borrowings
In the 20th Fiscal Period, the Investment Corporation made the following borrowings to fund the repayment of borrowings
that were due for repayment.
・A total amount of 5,500 million yen was borrowed from Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust
Bank, Limited and Mizuho Bank, Ltd. on July 31, 2015 to fund part of the repayment of a total of 9,500 million yen
borrowed from Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank, Limited that was due forrepayment on the same day. The remaining 4,000 million yen was allocated from cash on hand.
・A total amount of 4,500 million yen was borrowed from Sumitomo Mitsui Banking Corporation, The Nishi-Nippon City
Bank, Ltd., The 77 Bank, Ltd. and The Musashino Bank, Ltd. on August 31, 2015 to fund the repayment of a total of
4,500 million yen borrowed from The Shizuoka Bank, Ltd., The 77 Bank, Ltd., The Musashino Bank, Ltd. and
Sumitomo Mitsui Banking Corporation that was due for repayment on the same day.
・A total amount of 1,600 million yen was borrowed from The Gunma Bank, Ltd., Nippon Life Insurance Company and
Taiyo Life Insurance Company on November 30, 2015 to fund the repayment of a total of 1,600 million yen borrowed
from The Gunma Bank, Ltd., Nippon Life Insurance Company and Taiyo Life Insurance Company that was due forrepayment on the same day.
c. Status of Interest-Bearing Liabilities at End of the Fiscal Period under Review
As a result of the above, the balance of interest-bearing liabilities outstanding as of the end of the 20th Fiscal Period(November 30, 2015) stood at 192,300 million yen (short-term loans payable: 5,500 million yen; long-term loans payable:
181,700 million yen; investment corporation bonds: 5,100 million yen). The balance of the current portion of long-termloans payable stood at 3,700 million yen.
During the 20th Fiscal Period, the Investment Corporation made borrowings centering on periods of between 7 years
and 8.5 years with the maximum being 9 years, and the average remaining period of interest-bearing liabilities as of theend of the 20th Fiscal Period stands at 4.59 years.
Furthermore, the Investment Corporation concluded the interest-rate swap agreement to fixate future interest payment
for the total borrowing of 19,400 million yen in order to offset the risks of the possible increase of the interest rate.
List of Borrowings in the 20th Fiscal Period
Loan amount(million yen)
2,500
2,000
1,000
1,000
2,000
1,000
500

LenderSumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
The Musashino Bank, Ltd.
The Nishi-Nippon City Bank Limited
The 77 Bank, Ltd.
Sumitomo Mitsui Banking Corporation-4-

Drawdown
date
2015/7/31
2015/7/31
2015/7/31
2015/8/31
2015/8/31
2015/8/31
2015/8/31

Repayment
date
2016/7/29
2016/7/29
2016/7/29
2020/8/31
2022/8/31
2022/8/31
2024/8/30

Loanperiod
1.0 year
1.0 year
1.0 year
5.0 years
7.0 years
7.0 years
9.0 years

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Nippon Life Insurance Company
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Gunma Bank, Ltd.
Nippon Life Insurance Company
Taiyo Life Insurance Company

1,000
1,000
1,000
1,000
1,000
1,000
300
300

2015/9/11
2015/9/11
2015/9/11
2015/9/11
2015/9/11
2015/11/30
2015/11/30
2015/11/30

2019/8/30
2022/8/31
2024/2/29
2024/2/29
2024/8/30
2022/2/28
2022/8/31
2022/11/30

Balance of Borrowings from Each Financial Institution (as of November 30, 2015)
End of the 20th Fiscal Period
Lender(million yen)
Sumitomo Mitsui Banking Corporation
39,900Sumitomo Mitsui Trust Bank, Limited
24,850Development Bank of Japan Inc.
20,250Mizuho Bank, Ltd.
18,400
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
14,500Shinsei Bank, Ltd.
13,000Resona Bank, Ltd.
11,500Mitsubishi UFJ Trust and Banking Corporation
6,000
The Bank of Fukuoka, Ltd.
5,500
Kansai Urban Banking Corporation
5,000
Mizuho Trust and Banking Co., Ltd.
5,000
Aozora Bank, Ltd.
4,500
ORIX Bank Corporation
2,500
The Gunma Bank, Ltd.
2,500
The 77 Bank, Ltd.
2,000
The Musashino Bank, Ltd.
2,000
Tokio Marine & Nichido Fire Insurance Co., Ltd.
2,000
The Nishi-Nippon City Bank Limited
2,000
The Higashi-Nippon Bank, Limited
1,500
Nippon Life Insurance Company
1,300
The Kagawa Bank, Ltd.
1,000
The Hiroshima Bank, Ltd.
1,000
The Yamaguchi Bank, Ltd.
500
Taiyo Life Insurance Company
300
Fukoku Mutual Life Insurance Company
200
Total
187,200(Note 1) Share is rounded to two decimal places.

4.0 years
7.0 years
8.5 years
8.5 years
9.0 years
6.3 years
6.8 years
7.0 years

Share
21.31
13.27
10.82
9.83
7.75
6.94
6.14
3.21
2.94
2.67
2.67
2.40
1.34
1.34
1.07
1.07
1.07
1.07
0.80
0.69
0.53
0.53
0.27
0.16
0.11
100.00d. Rating Information (as of November 30, 2015)
Credit rating agency
R&I
Japan Credit Rating Agency

RatingA+
AA-

Outlook
StableStablee. Shelf Registration
The Investment Corporation filed a shelf registration statement on July 17, 2014 as below. The total issuable amountas of the date of this document is 94.9 billion yen.
Investment corporation bonds (excluding short-term investment corporation bonds)
Planned issue amount
100 billion yen
Planned issue period
From July 25, 2014 to July 24, 2016-5-

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period

Use of funds

Funds for acquisition of specified assets, repayment of borrowings, redemption of
investment corporation bonds (including short-term investment corporation bonds),
refund of leasehold and security deposits, payment of repairs, and funds for working
capital, etc.

D. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance for the 20th
Fiscal Period of 11,837 million yen in operating revenue, 5,614 million yen in operating income, 4,689 million yen in
ordinary income and 4,688 million yen in net income.
Concerning distributions, to ensure that the amount equivalent to distributions from earnings would be included in theamount of tax-deductible expenses based on application of special provisions for taxation of corporation tax (Article 67-15
of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957; including amendments thereto) (the “Special
Taxation Measures Act”)), 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 per unit of 9,688 yen.

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Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period(2) Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy going forward is expected to see a moderate economic recovery through recovery in personal
spending against the backdrop of favorable employment environment and the improved income environment whilevarious economic measures, centering on the public works projects and financial policies promoted by the Abeadministration and the monetary easing policy implemented by Bank of Japan continue. However, factors, such as
downward swing of the Chinese economy, upset in emerging markets accompanying the U.S. exit strategy, drop in stock
prices around the world due to geopolitical risks, downturn of the Eurozone economy and future development of the“triple fall (in bonds, yen and stocks)” against the backdrop of concerns over losing fiscal discipline, pose potential risksof disrupting the Japanese real economy and financial environment, and are thus thought to require attention.
In the Tokyo office building leasing market, while new supply is on a low note, factors such as improvement in
employment are stimulating demand, resulting in the vacancy rate dropping. Improvement in corporate performance isforecast to increase demand for office floor space and rent is expected to improve as a consequence. In the office building
transaction market, backed by the favorable financing environment and expectations of rent rising, among other factors,
property acquisition appetite among investors overseas, real estate companies and funds (including J-REITs) is thought togrow even stronger.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Under the office leasing market conditions described above, the tenant side is also expected to become more selectivewith properties. Consequently, the Investment Corporation will carry out operational management under the following
policy with an aim to enhance the competitiveness of existing properties and thereby increase the long-term EPS over the
medium to long term.
(i) Maintain and raise occupancy rates
Concerning existing tenants, strive to reduce vacancy risks by improving the quality of buildings, equipment andmanagement system. In addition, concerning new tenants, strive to maintain and raise occupancy rates through theprovision of services that are of higher satisfaction levels than competing properties through proactive participationin the market.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium to long term through further strengthening good relationships withexisting tenants, as well as proactively tapping the needs of new tenants by discerning the market environment.
(iii) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of high tenant satisfactionlevels by implementing efficient operational management and reviewing systematic construction work by optimallyleveraging the economies of scale achieved from proactively realizing external growth.
b. Strategy for New Property Investments
The Investment Corporation will invest in office buildings that have a total floor area of about 2,000m2 or more based on
various external growth strategies, while maintaining a balance with the asset acquisition environment and financing
situation. In principle, considerations will focus on Tokyo as the investment target area, but the Investment Corporation
will also consider investing in competitive properties in cities other than Tokyo from a viewpoint ofterritorially-distributed investments.
As pipeline support, in addition to expanding its own information-sourcing channels, the Investment Corporation willcontinue to search for properties that meet its investment criteria by proactively gathering real estate transaction market
information through greater collaboration with the Asset Manager and Sponsor Group and utilizing the Group’s
extensive network of clients, partners, etc.
In the 20th Fiscal Period, the Investment Corporation acquired “River Gate,” “Daiwa Hatchobori ekimae,” and“Daiwa Hatchobori ekimae West” which is located in Tokyo. The Investment Corporation believes that acquisition ofthese properties will contribute to further stabilization and enhancement of the portfolio. The Investment Corporation
will continue to strive to acquire properties in line with the investment strategy described above.
c. Financial Strategy
The Investment Corporation will conduct disciplined financial management of the following basic content.
(i) Control leverage by keeping the ratio of interest-bearing liabilities (LTV) 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 thatshall become due during any single fiscal period as a principle.
(iii) Aim to have long-term loans account for at least 70% of total loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.
(v) Pursuant to its fund management rules, maintain stability in its financial standing by managing necessary funds,
such as the amount equivalent to distributions paid, separately from working capital.

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Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
C. Significant Subsequent Events
Not applicable.
D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 21st Fiscal Period (fiscal period ending
May 2016 (from December 1, 2015 to May 31, 2016)). For the assumptions underlying the management status forecasts,
please refer to the “Assumptions for the Management Status Forecasts for the 21st Fiscal Period and 22nd Fiscal Period”
on page 9.
21st Fiscal Period (fiscal period ending May 2016 (from December 1, 2015 to May 31, 2016))
Operating revenue
11,922 million yen
Operating income
5,567 million yen
Ordinary income
4,769 million yen
Net income
4,767 million yen
Distribution amount per unit
9,850 yen
Distribution amount in excess of earnings per unit
- yen
In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 21st Fiscal Period and 22nd
Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status for the 22nd
Fiscal Period (fiscal period ending November 2016 (from June 1, 2016 to November 30, 2016)).
22nd Fiscal Period (fiscal period ending November 2016 (from June 1, 2016 to November 30, 2016))
Operating revenue
12,132 million yen
Operating income
5,601 million yen
Ordinary income
4,793 million yen
Net income
4,791 million yen
Distribution amount per unit
9,900 yen
Distribution amount in excess of earnings per unit
- yen
(Note) The forecast figures above are the current forecasts calculated based on certain assumptions. Accordingly, theactual operating revenue, operating income, ordinary income, net income, distribution amount per unit anddistribution amount in excess of earnings per unit may vary due to changes in the status. Moreover, the forecasts
set forth herein should not be construed as a guarantee of distribution amounts.

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Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
Assumptions for the Management Status Forecasts for the 21st Fiscal Period and 22nd Fiscal Period
Item
Assumptions
 21st Fiscal Period:
Assets under management are assumed to be the 50 properties owned as of November 30, 2015.
Assets under 22nd Fiscal Period
management
Assets under management are assumed to be the 50 properties described above.
 The actual number of properties may vary due to changes in the assets under management other thanabove.
 Rent revenue from existing properties is calculated based on historical data and taking into accountOperatingvariable factors.
revenue It is assumed that there is no gain (loss) on sales of real estate properties.
 Expenses related to rent business, which constitute a major component of operating expenses, arecalculated based on historical data and taking into account variable factors.
 Repair expenses for buildings are recorded as expenses in the amount expected to be necessary in therespective fiscal period based on the medium to long term repair plan established by the AssetManager.
 Operating income from property leasing (excluding gain on sales of real estate properties) after
deducting expenses related to rent business (including depreciation) is expected to be 6,771 million
yen in the 21st Fiscal Period and 6,822 million yen in the 22nd Fiscal Period.
 Consignment expenses are expected to be 845 million yen in the 21st Fiscal Period and 877 million
Operatingyen in the 22nd Fiscal Period.
expenses Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 887 million yen in the
21st Fiscal Period and 1,059 million yen in the 22nd Fiscal Period.
 While, in general, fixed property tax, city planning tax, etc. in the transaction of real estate, etc. are
calculated on a pro rata basis and reimbursed at the time of acquisition with the current owner, but for
the Investment Corporation, the amount equivalent to the reimbursement is included in the cost of
acquisition and thus it is not recognized as expenses in the period of acquisition of properties. As such,
fixed property tax, city planning tax, etc. of fiscal 2016 for properties acquired in 2015 shall berecorded as expenses starting from the fiscal period ending November 2016.
 Depreciation is expected to be 1,727 million yen in the 21st Fiscal Period and 1,753 million yen in the
22nd Fiscal Period.
 Non-operating expenses in the 21st Fiscal Period are expected to be 798 million yen, of which theinterest expenses, interest expenses on investment corporation bonds and borrowing related expenses
Non-operating
are expected to be 793 million yen.
expenses Non-operating expenses in the 22nd Fiscal Period are expected to be 808 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related expenses
are expected to be 803 million yen.
 The total amount of interest-bearing liabilities is assumed to be 192,300 million yen at the end of the
21st Fiscal Period and 192,300 million yen at the end of the 22nd Fiscal Period.
In
the 21st Fiscal Period, it is assumed that all of the 2,200 million yen of borrowings due forInterest-bearing
repayment on May 31, 2016 will be refinanced.
liabilities
 In the 22nd Fiscal Period, it is assumed that all of the 5,500 million yen of borrowings due forrepayment on July 29, 2016 and the 1,500 million yen of borrowing due for repayment on August 31,
2016 will be refinanced.
Total number of The total number of investment units is assumed to be 484,000 units as of November 30, 2015.
investment units It is assumed that there are no changes to the number of investment units other than stated above until
issued andthe end of the 22nd Fiscal Period such as through the issuance of new investment units, etc.
outstanding
Distribution amount
per unit The distribution amount per unit is calculated based on the cash distribution policy as set out in thearticles of incorporation of the Investment Corporation.
 The distribution amount per unit may vary depending on a variety of factors, such as changes in theassets under management, changes in the rent revenue due to tenant changes and other causes, andincurrence of unforeseen repairs.

-9-Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
Item
Distribution amountin excess of earnings
per unit

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

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

2.3. Investment Risks
Disclosure is omitted because there are no significant changes from the “Part I: Fund Information; Section 1: Fund Status; 3.
Investment Risks” set out in the most recent periodic securities report (yuka shoken hokokusho) (submitted on August 25,2015).

- 10 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period

3. Financial Statements
3.1. Balance Sheets

19th Fiscal Period[As of May 31, 2015]
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Other in trust
Accumulated depreciation
Other in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment*1- 11 -(Unit: thousand yen)
20th Fiscal Period[As of Nov. 30, 2015]

16,703,952
6,086,861
275,792－
403,224
185
72,37823,542,394

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

3,119,987(1,629,652)
1,490,335
10,296(2,999)7,297
18,958(7,645)
11,312
12,302,226
3,448
90,901,721(16,661,537)
74,240,183
902,042(160,128)
741,913707,599(367,021)
340,577
150,964(66,677)
84,287
4,336(4,336)－
314,767,115
408,642404,397,340

3,124,851(1,716,825)
1,408,025
14,344(3,335)
11,00818,958(8,507)
10,45012,302,226
3,572
101,181,076(18,232,206)
82,948,869
963,538(173,574)
789,963
777,674(388,194)
389,479
175,565(76,822)
98,742
4,336(4,336)－
338,450,955
27,451
436,440,746*1Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period

19th Fiscal Period[As of May 31, 2015]
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits in trust
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets*3- 12 -(Unit: thousand yen)
20th Fiscal Period[As of Nov. 30, 2015]

883
2,407,101
306,884
3,518
2,718,387

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

113,684
1,304,601
110,867
10,0201,539,174
408,654,902

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

35,34435,344432,232,640

32,39032,390460,705,737

889,756
9,500,000
8,300,000
632,431824
342,585
1,298,771
357,535
21,321,905

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

5,100,000
168,400,000
8,960,270
5,152,526
343,138
187,955,935
209,277,840

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

219,155,572

243,403,874

4,031,830
4,031,830
223,187,402

4,689,024
4,689,024
248,092,898(232,601)(232,601)
222,954,800
432,232,640(392,515)(392,515)
247,700,383
460,705,737*3

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
3.2. Statements of Income

19th Fiscal Period[From: Dec. 1, 2014
To: May 31, 2015]
Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Investment unit issuance expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 13 -(Unit: thousand yen)
20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]

*1
*1
*2

10,112,468
34,234
240,546
10,387,249*1*1

11,777,301
60,694－
11,837,995*1

4,486,646
838,943
20,432
67,73821,2785,400
176,787
5,617,225
4,770,023*1

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

798
867
11,652
13,318771
804
11,998
13,574566,001
16,892
159,621－8,365
750,879
4,032,462
4,032,462
886
5
892
4,031,570
260
4,031,830

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

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
3.3. Statements of Unitholders’ Equity
19th Fiscal Period (from December 1, 2014 to May 31, 2015](Unit: thousand yen)
Total valuation and translation
adjustments

Unitholders’ equity
Surplus

Total net assets(203,635)

222,593,092

Unappropriatedretained earnings(undisposed
loss)

Total Surplus

219,155,572

3,641,156

3,641,156

222,796,728

Dividends from surplus(3,640,896)(3,640,896)(3,640,896)(3,640,896)

Net income

4,031,570

4,031,570

4,031,570

4,031,570

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

Total valuationand translation
adjustments

Unitholders’capital(203,635)

Changes of items during theperiodNet changes of items otherthan shareholders’ equity
Net changes of items other than

(28,966)(28,966)－

390,674

390,674

390,674(28,966)(28,966)

361,708

219,155,572

4,031,830

4,031,830

223,187,402(232,601)(232,601)

222,954,800

shareholders’ equity
Balance at end of current period(28,966)

20th Fiscal Period (from June 1, 2015 to November 30, 2015](Unit: thousand yen)
Total valuation and translation
adjustments

Unitholders’ equity
Surplus

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

Total Surplus

219,155,572

4,031,830

4,031,830

Total unitholders’ Deferred gains orequitylosses on hedges

223,187,402(232,601)

Total valuationand translation
adjustments(232,601)

Total net assets

222,954,800

Changes of items during theperiodIssuance of investment units

24,248,302

24,248,302

24,248,302

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

Net income

4,688,815

4,688,815

4,688,815

4,688,815

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

24,248,302

657,193

657,193

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

24,745,582

243,403,874

4,689,024

4,689,024

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

247,700,383- 14 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
3.4. Statements of Cash Distributions

Item
I.
II.

Unappropriated retained earnings
Distribution amount[Distribution amount per unit]
III. Retained earnings carried forward
Method for calculating distribution amount19th Fiscal Period[From: Dec. 1, 2014
To: May 31, 2015]
Amount (yen)4,031,830,382
4,031,622,000[9,142]
208,382
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(441,000 units) in an amount that is
not in excess of unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 4,031,622,000
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

- 15 -

20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]
Amount (yen)4,689,024,142
4,688,992,000[9,688]32,142
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(484,000 units) in an amount that is
not in excess of unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 4,688,992,000
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
3.5. Statements of Cash Flows

19th Fiscal Period[From: Dec. 1, 2014
To: May 31, 2015]
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Investment unit issuance expenses
Interest income
Interest expenses(Increase) Decrease in operating accounts receivable(Increase) Decrease in consumption taxes refund receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Decrease from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
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 short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 16 -*1(Unit: thousand yen)
20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]

4,032,462
1,555,388
2,938
－
(798)
582,893
28,202
243,388(80,704)(118,588)
80,444
342,585
142,070(210,252)
21,334,754
222,262
28,157,048
798(578,393)(1,037)
27,578,415

4,689,624
1,704,769
2,954
160,735(771)
608,647
36,956(515,291)
16,59995,226
123,956(285,428)
642,252
98,548－(230,111)
7,148,669
771(617,859)(854)
6,530,727(22,916)(50,177,798)(780)
214,501
1,591,294(1,013,048)(5,849)(49,414,596)(13,262)(34,088,858)－
1,281,904
1,407,399(264,439)(402)(31,677,660)

9,500,000(2,500,000)
34,000,000(10,500,000)－(3,640,869)
26,859,130
5,022,949
17,767,863
22,790,813

5,500,000(9,500,000)
11,100,000(6,100,000)
24,087,566(4,031,177)
21,056,388(4,090,543)
22,790,813
18,700,269*1Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
3.6. Notes to the Going Concern
Not applicable.
3.7. Notes to Significant Accounting Policies
1.
Accumulated depreciation method(1)
for noncurrent assets

2.
3.

Accounting policies fordeferred assets
Accounting standards for recording
revenues and expenses

4.

Hedge accounting approaches

5.

Scope of funds in thestatements of cash flows

Property, plant and equipment (including trust assets)
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as follows:
Buildings
2~64 years
Structures
4~56 years
Machinery and equipment
4~23 years
Tools, furniture and fixtures
5~18 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
Investment corporation bonds issuance costs
Amortized using the straight-line method over the period up to redemption.
Accounting for fixed property tax, etc.
Concerning fixed property tax, city planning tax, depreciated asset tax, etc. forowned real estate in trust, of the tax amount that has been broken down into
installments, the method of accounting for the amount corresponding to theconcerned fiscal period as expenses related to rent business is adopted.
Concerning the amount equivalent to fixed property tax, etc. for the initialfiscal year that shall be borne by the Investment Corporation in correlation withacquisitions of real estate or trust beneficial interest that have real estate as
assets in trust, the amount is not expensed but is rather included in the cost of
acquisition of the concerned real estate property.
The amount equivalent to fixed property tax, etc. that was included in the costof acquisition of real estate properties in the 19th Fiscal Period is 92,107
thousand yen and 20th Fiscal Period is 125,633 thousand yen.
(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet the requirements
for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate cap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge risks
stipulated in the Investment Corporation’s articles of incorporation inaccordance with the Investment Corporation’s risk management policy.
Method for assessing the effectiveness of hedging(4) The effectiveness of hedging is assessed by the correlation between the change
in aggregated amount of cash flow of the hedging instruments and the change
in aggregated amount of cash flow of the hedged items.
Interest rate swaps that meet the requirements for special accounting are
omitted from assessment of the effectiveness.
The funds (cash and cash equivalents) in the statements of cash flows consist of cashon hand and cash in trust; deposits that can be withdrawn at any time and deposits intrust; and short-term investments with a maturity of 3 months or less from the date ofacquisition, which are readily convertible to cash and bear only an insignificant riskof price fluctuation.

- 17 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
6.

Other significant matters forming
basis for preparation of financial
statements

(1)

(2)

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

3.8. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting and asset retirement obligations,disclosure is omitted because there is no substantial need for such disclosure in the financial report (kessan tanshin).
[Notes to Balance Sheets]*1. Advanced depreciation amount for noncurrent assets acquired by government subsidies, etc.
19th Fiscal Period[As of May 31, 2015]
Buildings in trust

20th Fiscal Period[As of November 30, 2015]

32,898 thousand yen

Buildings in trust

32,898 thousand yen

2. Commitment-type term loan agreement
The Investment Corporation concluded a commitment-type term loan agreements with five transacting banks during the
fiscal period under review. As of the end of the fiscal period under review, there is no balance of borrowings based on thisagreement.
19th Fiscal Period[As of May 31, 2015]

20th Fiscal Period[As of November 30, 2015]

Total amount of commitment-type term loans
Balance of borrowings

20,500,000 thousand yen－thousand yen－thousand yen－thousand yen

Difference

20,500,000 thousand yen－thousand yen*3. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
19th Fiscal Period[As of May 31, 2015]

20th Fiscal Period[As of November 30, 2015]

50,000 thousand yen

50,000 thousand yen- 18 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing(Unit: thousand yen)
19th Fiscal Period[From: Dec. 1, 2014
To: May 31, 2015]
A.

B.

C.

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

20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]
11,777,301
60,694

10,112,468
34,234
10,146,702

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

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

791,273
1,024,278
811,787
14,355
227,519
1,553,853
63,578

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

11,837,995

4,486,646

5,026,334

5,660,056

6,811,661*2. Breakdown of gain on sales of real estate properties (Unit: thousand yen)
19th Fiscal Period [From: December 1, 2014 To: May 31, 2015]
Proceeds from sales of real estate properties
Cost of sales of real estate properties

21,846,254
21,325,541
280,166

Other expenses on sales

240,546

Gain on sales of real estate properties

Individual sales prices are not disclosed as the consent of buyers was not obtained. The 685,892 thousand yen of gain on sales of realestate properties and 445,345 thousand yen of loss on sale of real estate properties are offset in the above gain on sales of real estate
properties.

20th Fiscal Period [From: June 1, 2015 To: November 30, 2015]
Not applicable.
[Notes to Statements of Unitholders’ Equity]
19th Fiscal Period[From: Dec. 1, 2014
To: May 31, 2015]

20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]*1. Total number of investment units authorized and numberof investment units issued and outstanding
Total number of investment units authorized
Number of investment units issued and outstanding- 19 -

2,000,000 units

2,000,000 units

441,000 units

484,000 units

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period[Notes to Statements of Cash Flows]*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the statements of cash flows(Unit: thousand yen)
19th Fiscal Period[From: Dec. 1, 2014
To: May 31, 2015]
Cash and deposits
Cash and deposits in trust

16,703,952
6,086,861
22,790,813

Cash and cash equivalents

20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]
16,618,092
2,082,177
18,700,269[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation bonds and issuanceof new investment units, etc. for the acquisition and repair of investment properties, the payments of dividends and thereimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates, and dispersing
maturity dates in order to secure financial stability and avoid future fluctuation risk of interest rates.
The Investment Corporation manages surplus funds through safe and highly liquid money claims and securities (inprinciple, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks.
(b) Contents and risk of financial instruments and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds for theacquisition of investment properties (such as trust beneficial interest in real estate) and the reimbursement of current debts
and bonds. While these debts and bonds are exposed to liquidity risk, the Investment Corporation manages the risk by
maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt to total debt athigh levels, and diversifying lenders with particular focus on domestic financial institutions.
Bank borrowings with floating interest rates are exposed to interest rate risk and the risk is controlled by using
derivative instruments (interest swap transaction). Moreover, a commitment-type term loan is used in order to reduce fundprocurement risk when acquiring properties using forward commitments, etc.
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount of cash flow of
the hedging instruments and the change in aggregated amount of cash flow of the hedged items. Interest rate swaps thatmeet the requirements for special accounting are omitted from assessment of the effectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions establishedby the basic policy of risk management.
Security deposits from tenants are exposed to liquidity risk upon tenants moving out and the Investment Corporation
reduces the risk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) and are managed
by limiting the terms to short durations and establishing credit rating level of counterparties, etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instruments with noavailable market price is determined by using price reasonably estimated. As various factors are incorporated into thesecalculations, the resulting value may differ if different assumptions are provided. Furthermore, the contractual amounts ofderivative transactions do not represent the market risk involved in these derivative transactions.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values and their differences are as follows. Please note that the following table does not include
those for which discerning of fair value is recognized to be extremely difficult (please refer to (Note 2)).

- 20 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
19th Fiscal Period [As of May 31, 2015]
Carrying amount

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

16,703,952

16,703,952－(2) Cash and deposits in trust

6,086,861

6,086,861－

22,790,813

22,790,813－(3) Short-term loans payable

9,500,000

9,500,000－(4) Current portion of long-term loans payable

8,300,000

8,303,752

3,752(5) Investment corporation bonds

5,100,000

5,081,325(18,674)

168,400,000

168,552,647

152,647

191,300,000

191,437,725

137,725(343,641)(343,641)－

Total assets(6) Long-term loans payable
Total liabilities
Derivative transactions (*)
20th Fiscal Period [As of November 30, 2015]

Carrying amount

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

16,618,092

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

2,082,177

2,082,177－

18,700,269

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

5,500,000

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

3,700,000

3,702,739

2,739(5) Investment corporation bonds

5,100,000

5,149,380

49,380178,000,000

178,318,164

318,164

192,300,000

192,670,284

370,284

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

Derivative transactions (*)－(579,871)(579,871)(*) The value of assets and liabilities arising from derivatives are indicated at net basis. The amount in parentheses represents thenet liability position.
(Note 1) Methods to estimate fair value of financial instruments and matters concerning derivative transactions.
Assets(1) Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and thus isstated at that book value.
Liabilities(3) Short-term loans payable; (4) Current portion of long-term loans payable; (6) Long-term loans payable
As those with floating interest rates reflect market interest rates within a short period of time and the Investment
Corporation’s credit capability does not differ markedly from the execution, the fair value is approximately the same as
the book value and thus is stated at that book value. Those with fixed interest rates, on the other hand, are based on themethod of calculating by discounting the sum total amount of principal and interest (*) by the reasonably estimatedinterest rate in the case that the same type of borrowings are undertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest is handled
together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions] below.)(5) Investment corporation bonds
The fair value of the investment corporation bonds issued by the Investment Corporation is based on the market price.
Derivative transactions
Please refer to [Notes to Derivative transactions] below.

- 21 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period(Note 2) Financial products for which it is extremely difficult to estimate fair value.
(Unit: thousand yen)
19th Fiscal Period[As of May 31, 2015]

20th Fiscal Period[As of November 30, 2015]

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

15,531,882
8,960,270
1,005,375
5,152,526
Total
14,112,797
16,537,258
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees ofrental properties are not subject to disclosure of market price because discerning of the market price is recognized to be
extremely difficult as future cash flows cannot be reasonably estimated due to there being no fair value and difficulty incalculation of the actual deposit period.

(Note 3) Redemption schedule for monetary claims due after the settlement of accounts.
19th Fiscal Period [As of May 31, 2015](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Cash and deposits

16,703,952

–

–

–

–

–

Cash and deposits in trust

6,086,861

–

–

–

–

–

Total

22,790,813

–

–

–

–

–

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

16,618,092

–

–

–

–

–

2,082,177

–

–

–

–

–

18,700,269

–

–

–

–

–

Over 5 years

20th Fiscal Period [As of November 30, 2015](Unit: thousand yen)

Cash and deposits
Cash and deposits in trust
Total

Over 5 years(Note 4) Amount of repayment of short-term loans payable, current portion of long-term loans payable, long-term loans payable
and investment corporation bonds scheduled to be due after the settlement of accounts.
19th Fiscal Period [As of May 31, 2015](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Short-term loans payable

9,500,000

－

－

－

－

－

Current portion of
long-term loans payable

8,300,000

－

－

－

－

－

Over 5 years

Investment corporation bonds

－

－

－

－

3,000,000

2,100,000

Long-term loans payable－

18,200,000

19,400,000

21,500,000

24,000,000

85,300,000

17,800,000

18,200,000

19,400,000

21,500,000

27,000,000

87,400,000

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Short-term loans payable

5,500,000

－

－

－

－

－

Current portion of
long-term loans payable

3,700,000

－

－

－

－

－

－

－

－

3,000,000－

2,100,000－

28,250,000

17,350,000

22,000,000

31,600,000

78,800,000

9,200,000

28,250,000

17,350,000

25,000,000

31,600,000

80,900,000

Total

20th Fiscal Period [As of November 30, 2015](Unit: thousand yen)

Investment corporation bonds
Long-term loans payable
Total- 22 -

Over 5 years

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
19th Fiscal Period [As of May 31, 2015]
Not applicable.
20th Fiscal Period [As of November 30, 2015]
Not applicable.
(2) Transactions for which hedge accounting is applied
19th Fiscal Period [As of May 31, 2015]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
quoted by partner
66,400,000
64,400,000(343,641)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans－
32,850,000
27,350,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
99,250,000
91,750,000(343,641)
20th Fiscal Period [As of November 30, 2015]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Based on priceLong-termtransaction
accounting
quoted by partner
loans
82,800,000
81,300,000(579,871)
Fixed payable
methodfinancial institution
payableFloating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
(*)
loans
－
30,350,000
28,350,000
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
113,150,000
109,650,000(579,871)(*) Since the derivative financial instruments qualifying for the special accounting for interest rate swaps are accounted for as one
transaction together with their hedged item, long-term loans payable, the fair value of these derivatives is included in that ofrelated long-term loans payable. (Please refer to “Notes to Financial Instruments (2) Matters Concerning Fair Value, etc. of
Financial Instruments (Note 1) Liabilities (4) (6)”).

- 23 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period[Notes to Transactions with Related Parties](1) Transactions with related parties
19th Fiscal Period [From: December 1, 2014 To: May 31, 2015]
Not applicable.
20th Fiscal Period [From: June 1, 2015 To: November 30, 2015]
Not applicable.

(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 spreadof senior bonds and subordinated bonds in the market (bank bonds) and verification from the spread of subordinatedinvestment 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 interestin the internal rule of the Asset Manager.
(2) Notes to parent company and significant affiliated companies
19th Fiscal Period [From: December 1, 2014 To: May 31, 2015]
Parent company’s information
Daiwa Securities Group Inc. (listed on the Tokyo Stock Exchange and Nagoya Stock Exchange)
20th Fiscal Period [From: June 1, 2015 To: November 30, 2015]
Not applicable.

- 24 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th 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)
19th Fiscal Period[From: Dec. 1, 2014
To: May 31, 2015]

20th Fiscal Period[From: June 1, 2015
To: Nov. 30, 2015]

Carrying amount
Balance at beginning of period

378,935,080

406,699,107

Amount of increase (decrease) during period

27,764,026

32,424,591

Balance at end of period

406,699,107

439,123,698

410,990,000

459,820,000

Fair value at end of period(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) for rental properties during the 19th Fiscal Period, the amount of increase is mainly
attributable to acquisition of 6 properties (48,785 million yen), and the amount of decrease is mainly attributable to salesof 5 properties (21,325 million yen) and depreciation (1,553 million yen). Of the amount of increase (decrease) for rental
properties during the 20th Fiscal Period, the amount of increase is mainly attributable to acquisition of 3 properties(32,518 million yen) and the amount of decrease is mainly attributable to depreciation (1,703 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.”- 25 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th 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
19th Fiscal Period [From: December 1, 2014 To: May 31, 2015]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment are inexcess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90% of
the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer accounts
for less than 10% of the operating revenue on statements of income.
20th Fiscal Period [From: June 1, 2015 To: November 30, 2015]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one segment are inexcess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excess of 90% of
the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer accounts
for less than 10% of the operating revenue on statements of income.

- 26 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period[Notes to Per Unit Information]
19th Fiscal Period
20th Fiscal Period[From: Dec. 1, 2014
[From: June 1, 2015
To: May 31, 2015]
To: Nov. 30, 2015]
Net assets per unit
505,566 yen
511,777 yen
Net income per unit
9,141.88 yen
9,692.56 yen(Note 1) The net income per unit was calculated by dividing the net income by the daily weighted average number of investment
units issued and outstanding. The diluted net income per unit is not stated as there are no diluted investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
19th Fiscal Period
20th Fiscal Period[From: Dec. 1, 2014
[From: June 1, 2015
To: May 31, 2015]
To: Nov. 30, 2015]
Net income (thousand yen)
4,031,570
4,688,815
Amounts not attributable to common unitholders (thousand yen)－－
Net income attributable to common investment units (thousand yen)
4,031,570
4,688,815
Average number of investment units during the period (unit)
441,000
483,754[Notes to Significant Subsequent Events]
Not applicable.
3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
The Investment Corporation resolved to issue new investment units at its Board of Directors meeting held on April 27, 2015 andMay 20, 2015. Payments were completed for the public offering and third-party allotment on June 1, 2015 and June 24, 2015,
respectively. The overview of capital increase up to the end of the 20th Fiscal Period is as follows.

Payment date

Description

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

Unitholders’ capital(million yen)
Increase(Decrease)

Notes

Balance

Incorporation through private
400
400
200
200 (Note 1)
placement
Capital increase through public
October 18, 2005
99,600100,000
49,49849,698 (Note 2)
offering
Capital increase through public
July 10, 2007
100,000
200,000
75,316125,015 (Note 3)
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
Capital increase through public
July 2, 2014
41,092436,890
18,522
217,303 (Note 7)
offering
Capital increase by way of a
July 30, 2014
4,110
441,000
1,852
219,155 (Note 8)
third-party allotment
Capital increase through public
June 1, 2015
41,045
482,045
23,145242,301 (Note 9)
offering
Capital increase by way of aJune 24, 2015
1,955
484,000
1,102
243,403 (Note 10)
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 paid in: 496,975 yen) to procure funds for acquisition of properties to be acquired 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 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 price of 753,165 yen
per unit (amount 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 price of 431,949 yen
per unit (amount paid in: 431,949 yen) to fund repayment of loans and redemption of investment corporation bonds.
July 11, 2005

- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period(Note 6) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 192,705 yen
per unit (amount paid in: 192,705 yen) to fund repayment of loans, capital expenditure to enhance property value,acquisition of property, etc.
(Note 7) The Investment Corporation issued new investment units through public offering at an issue price of 466,537 yen per unit
(amount paid in: 450,746 yen) to procure funds for acquisition of acquisition properties, etc.
(Note 8) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 450,746 yen
per unit (amount paid in: 450,746 yen) to procure funds for acquisition of acquisition properties, etc.
(Note 9) The Investment Corporation issued new investment units through public offering at an issue price of 583,050 yen per unit
(amount paid in: 563,914 yen) to procure funds for acquisition of acquisition properties, repayment of borrowings, etc.
(Note 10) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 563,914 yen
per unit (amount paid in: 563,914 yen) to procure funds for acquisition of acquisition properties, repayment of borrowings,
etc.

- 28 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th 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.

5. Reference Information
5.1. Investment Status
Type of asset

Real estate

Trust beneficial interestin real estate

Use

OfficeOfficeRegion20th Fiscal Period(As of November 30, 2015)
Total amount owned
As a percentage of total(million yen) (Note 1)
assets (%)

Five Central Wards of Tokyo

16,138

3.5

Five Central Wards of Tokyo

368,91880.1

Greater Tokyo

34,514

7.5

Major Regional Cities

19,551

4.2

439,123

95.3

21,582

4.7

460,705

100.0[439,123][95.3]

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

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
5.2. Investment Real Estate Properties (As of November 30, 2015)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Carrying
Estimated price at
Type ofprice
amountend of period
RegionProperty namespecified(million yen) (million yen)(million yen)
asset
(Note 4)(Note 5)(Note 6)
Daiwa Ginza
14,10013,30815,800Real estate
Daiwa Ginza Annex
3,050
2,830
3,260
Daiwa Shibaura
8,265
8,022
7,350
Daiwa Minami-Aoyama
4,550
4,465
4,250
Daiwa Sarugakucho
3,190
3,226
3,270
Daiwa A Hamamatsucho (Note 8)
2,865
2,827
3,220
Daiwa Jingumae
2,800
2,698
2,230
Daiwa Shibadaimon
2,578
2,398
2,860
Daiwa Misakicho
2,346
2,196
2,680
Daiwa Shimbashi 510
2,080
2,131
2,420
Daiwa Tsukijiekimae
1,560
1,354
1,550
Daiwa Tsukiji
1,240
1,172
1,360
Daiwa Tsukishima
7,840
7,006
9,080
Daiwa Nihonbashi Horidomecho
2,520
2,496
2,450
Daiwa Azabudai
1,600
1,543
1,750
Daiwa Kyobashi
3,460
3,313
3,180
Daiwa Kojimachi 4-chome
2,910
2,851
2,670
Daiwa Onarimon
13,86013,47812,800Shinjuku Maynds Tower (Note 8)
133,800
130,383
116,000Five
SHIBUYA
EDGE
5,900
5,724
4,650
Central
Trust
2,460
2,409
2,060
Wards of Daiwa Kodenmacho
beneficial
Tokyo
Daiwa Jimbocho
4,150
4,101
3,230
interest in(Note 1)
Daiwa Nishi-Shimbashi
5,000
4,877
5,330
real estate
Daiwa Kudan
4,000
3,828
3,270
Daiwa Kayabacho Building
5,600
5,395
7,460
Daiwa Jimbocho 3-chome
3,550
3,469
4,420
E SPACE TOWER
24,00023,70332,300Daiwa Nihonbashi Hongokucho
1,721
1,653
2,110
shinyon curumu
9,650
9,847
12,000Daiwa Shibuya Dougenzaka
4,500
4,484
6,380
Daiwa Akasaka
9,200
9,411
12,100Daiwa Shibuya Miyamasuzaka
7,000
7,207
8,040
Azabu Green Terrace
14,00014,286
15,700Daiwa Ebisu 4-chome
4,135
4,288
5,120
LAQUAS Higashi Shinjuku
8,450
8,642
9,830
Concept Aoyama
9,800
10,056
11,200Shinsen Place
4,800
4,922
6,020
Glass City Shibuya
16,00016,12417,500River Gate
28,00028,21829,800Daiwa Hatchobori ekimae
2,871
2,984
3,060
Daiwa Hatchobori ekimae West
1,647
1,713
1,700
Total for Five Central Wards of Tokyo (41 properties)
391,048
385,057
401,460- 30 -

Investment
ratio
(%)
(Note 7)
3.2
0.7
1.9
1.0
0.7
0.6
0.6
0.6
0.5
0.5
0.3
0.3
1.8
0.6
0.4
0.8
0.7
3.1
30.0
1.3
0.6
0.9
1.1
0.9
1.3
0.8
5.4
0.4
2.2
1.0
2.1
1.6
3.1
0.9
1.9
2.2
1.1
3.6
6.3
0.6
0.4
87.7

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period

RegionProperty nameDaiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Greater Daiwa Osaki 3-chome
Tokyo(Note 2) Daiwa Kamiooka
Integral Tower
Meguro Place Tower
Total for Greater Tokyo (6 properties)
Major
Daiwa Minami-Senba
Regional Daiwa Meieki
Cities(Note 3) Kitahama Grand Building

Type ofspecified
asset

Trust
beneficial
interest inreal estate

Trustbeneficial
interest inreal estate

Acquisition
price

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

(Note 4)(Note 5)(Note 6)

2,958
7,710
1,650
2,000
15,2205,600
35,138
4,810
5,300

2,745
7,293
1,660
1,993
15,183
5,639
34,514
4,679
5,350

3,490
5,790
2,240
2,420
17,5006,110
37,5502,660
7,150

Investment
ratio
(%)
(Note 7)
0.7
1.7
0.4
0.4
3.4
1.3
7.9
1.1
1.2

9,481
9,521
11,0002.1
Total for Major Regional Cities (3 properties)
19,591
19,551
20,810
4.4
Total (50 properties)
445,777
439,123459,820100.0(Note 1) “Five Central Wards of Tokyo” means Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards.
(Note 2) “Greater Tokyo” means Tokyo excluding the Five Central Wards of Tokyo, Kanagawa, Chiba and Saitama prefectures.
(Note 3) “Major Regional Cities” means Osaka area (i.e., Osaka, Kyoto and Hyogo prefectures), Nagoya area (Aichi, Mie andGifu prefectures) and ordinance-designated cities and core cities under the Local Autonomy Act.
(Note 4) Acquisition price is excluding acquisition costs, fixed property tax, city planning tax, consumption tax and local
consumption tax.
(Note 5) Carrying amount is the book value after deducting depreciation as of November 30, 2015.
(Note 6) Estimated price at end of period is the price as of November 30, 2015 stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii Appraisal & Investment
Consulting, Inc. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 7) Investment ratio is the acquisition price of each property expressed as a percentage of the total amount of acquisition
prices, rounded to one decimal place.
(Note 8) For Daiwa A Hamamatsucho Building and Shinjuku Maynds Tower, the figures are those pertaining to the Investment
Corporation’s ownership interest.

- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
5.2.2. Summary of Building and Leasing of Investment Real Estate
RegionProperty nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho (Note 8)
Daiwa A Hamamatsucho
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho (Note 8)
Daiwa Shimbashi 510
Daiwa Tsukijiekimae
Daiwa Tsukiji
Five Central
Wards of Daiwa Tsukishima
Tokyo
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note 9)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building (Note 8)

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

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

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

July 1963

8,175.26

7,680.00

27

93.9

382,686

Aug. 1972

2,032.11

2,032.11

7

100.0

92,412

Oct. 1987

9,619.67

9,497.22

53

98.7

238,616

Sept. 1990

2,715.54

2,715.546

100.0

123,977

June 1985

3,657.43

3,657.43

1

100.0

-

July 1993

3,663.38

3,663.38

12

100.0

132,499

Dec. 1997

2,198.61

2,198.61

4

100.0

71,016

Nov. 1996

2,386.48

2,386.48

6

100.0

85,670July 1996

2,137.53

2,137.53

1

100.0

-

Apr. 1974

2,676.52

2,668.12

7

99.6

85,074Jan. 1996

2,659.59

2,659.59

6

100.0

56,471

Jan. 1990

1,487.82

1,328.52

4

89.2

45,660July 1996

8,426.85

8,426.853

100.0

283,096

Apr. 1993

2,850.81

2,850.81

8

100.0

81,633Apr. 1984

1,697.88

1,697.88

10

100.0

53,479Oct. 1974

3,265.83

3,265.83

9

100.0

98,503Oct. 1987

2,690.90

2,690.90

7

100.0

91,419Apr. 1973

11,614.92

11,614.92

7

100.0

331,178

Sept. 1995

45,543.97

43,791.03

35

96.1

2,537,759

Aug. 2006

2,480.65

2,480.65

5

100.0

115,426

Mar. 1985

2,379.31

2,379.31

8

100.0

64,340Mar. 1997

3,164.26

3,164.26

7

100.0

103,301

July 1993

4,815.84

4,815.84

11

100.0

147,221Mar. 1987

2,882.61

2,882.61

6

100.0

78,796

Apr. 2010

5,899.11

5,899.11

1

100.0

-

- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period

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

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

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Feb. 2010

2,889.34

2,889.34

8

100.0

111,538

Oct. 2002

13,960.87

13,960.87

6

100.0

777,230

May 2010

2,143.08

2,143.08

6

100.0

55,918Jan. 2012

6,751.31

6,751.31

18

100.0

309,245

Mar. 1988

4,144.90

3,812.47

5

91.9

147,462

Sept. 1990

8,739.17

7,731.93

19

88.4

296,961

Dec. 1988

6,327.95

6,327.95

8

100.0

227,895

Sept. 2009

13,234.39

13,234.39

10

100.0

452,934

Dec. 1997

2,885.64

2,885.64

1

100.0

-

Aug. 2010

7,498.33

7,498.33

4

100.0

227,234

Nov. 2001

4,421.79

4,421.79

5

100.0

209,064

Sept. 2001

2,811.35

2,811.35

1

100.0

-

Feb. 2004

8,566.73

8,566.73

11

100.0

384,989

Feb. 1994

32,062.96

30,563.43

88

95.3

869,586

Feb. 2006

2,622.42

2,622.429

100.0

34,026

Feb. 1996

1,723.24

1,723.24

9

100.0

19,070261,906.35

256,528.80

459

97.9

9,946,780

June 1993

4,461.47

4,461.47

7

100.0

117,523

July 1991

6,548.17

6,548.17

13

100.0

178,507

Sept. 2007

1,786.06

1,786.06

5

100.0

54,847

Total for Five Central Wards of Tokyo (41 properties)
Daiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Daiwa Osaki 3-chome
GreaterTokyo

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

Daiwa Kamiooka

S / SRC
B3 / 7F

May 2011

2,630.30

2,630.30

9

100.0

83,882Integral Tower (Note 10)

S/SRC
B2/18F

June 1993

17,778.14

17,697.94

999.5

581,096

Meguro Place Tower

S/SRC
B2/14F

July 2009

3,519.50

3,519.50

14

100.0

146,812

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

Construction
completion(Note 2)

Daiwa Meieki
Kitahama Grand Building

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

36,723.64

36,643.44

57

99.7

1,162,669

Sept. 1986

5,703.50

5,703.50

13

100.0

90,643

Dec. 2007

7,461.90

7,461.90

23

100.0

250,848

Feb. 2008

13,517.62

13,517.62

6

100.0

326,358

26,683.02
325,313.01

26,683.02
319,855.26

42
558

100.0
98.3

667,850
11,777,301

Total for Major Regional Cities (3 properties)
Total (52 properties)(Note 1) “Structure and number of floors” are the entries in the real estate registry of the building of the applicable investment
real estate property. “S” refers to steel-framed structure, “RC” refers to reinforced concrete structure, “SRC” refers tosteel-framed reinforced concrete structure, “B” refers to floors below ground and “F” refers to floors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment real estate
property.
- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period(Note 3) “Leasable floor area” represents the floor area of the building of the applicable property that is leasable, not including
the leasable area of the land (including level parking space), and is the floor area indicated in the lease contract, etc. as ofNovember 30, 2015.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease agreements, etc. executed with
end-tenants as of November 30, 2015.
(Note 5) “Total number of tenants” is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 6) “Occupancy rate” is the figure arrived at when leased floor area is divided by leasable floor area, rounded down to one
decimal place.
(Note 7) “Rent revenue during current period” is rent income, common area charges income, parking lot income and otherincome generated from the applicable investment real estate property during the 19th Fiscal Period, rounded down to thenearest thousand yen.
(Note 8) Not shown for such reasons as consent was not obtained from major tenants to disclose the rent revenue during current
period for the properties.
(Note 9) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the common
ownership interest corresponding to six-sevenths of the entire property. Accordingly, leasable floor area and leased floorarea are the floor areas corresponding to six-sevenths of the entire building.
(Note 10) The buildings consist of three registrations. Of these, the details of the major building are shown here.

- 34 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A. Capital Expenditures for the 21st Fiscal Period
The following are the principal capital expenditures arising from renovation construction work, etc. currently planned forexisting portfolio properties. Please note that the expected construction amount includes portions that are expensed as aseparate account item of accounting costs.
Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Integral Tower(Suginami-ku, Tokyo)
River Gate
(Chuo-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

Expected construction amount (million yen)
Scheduled
implementation
Amount paid
Total amount
Total amountperiodduring current period
already paid
From: Jan. 2016132－－
To: May 2016
From: Dec. 2015
123－－
To: May 2016

PurposeReplacement of hot-water coilRepair work of exterior walls
Additional installment of special highvoltage electric substation bank and
MCB board

From: Jan. 2016
To: May 2016
From: Jan. 2016
To: May 2016
From: Jan. 2016
To: May 2016

Reinforcement of security system
Additional installment of security
cameras

120

－

－

92

－

－

76

－

－

B. Capital Expenditures during the 20th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the 20th
Fiscal Period. Capital expenditures for the 20th Fiscal Period amounted to 1,087 million yen and, when combined with the 320
million yen in repair expenses charged to the 20th Fiscal Period expenses, totals 1,408 million yen in construction work were
implemented.
Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Ebisu 4-chome(Shibuya-ku, Tokyo)
Daiwa Akasaka(Minato-ku, Tokyo)

PurposeConstruction amount paid
(million yen)

PeriodRenovation work for central supervisory system
Renovation work for air-conditioning system
Establishment of entrance on the public open space side

Other

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

Oct. 2013
Sep. 2015
Jun. 2015
Aug. 2015
Jan. 2015
Sep. 2015
Jun. 2015
Nov. 2015

Total

392
111
106
476
1,087

C. Reserve Amount for Long-Term Repair Plans (Reserve for Repairs)
The Investment Corporation sets aside the following reserve for repairs from cash flows during the fiscal period for thepayment of future major repairs.
(Unit: million yen)
16th
17th
18th
19th
20th
FiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscal period[From: June 1, 2013
To: Nov. 30, 2013]

Balance of reserve at
beginning of previous
periodAmount of reserve incurrent period
Reversal of reserve incurrent period
Amount carried forward to
next period[From: Dec. 1, 2013
To: May 31, 2014][From: June 1, 2014
To: Nov. 30, 2014][From: Dec. 1, 2014
To: May 31, 2015][From: June 1, 2015
To: Nov. 30, 2015]

806

830

1,021

1,199

2,742

181

794

764

1,678

－

156

603

586

135

1,682

830

1,021

1,199

2,742

1,060

- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period

5.2.4. Summary of Estimated Price at End of Period (As of November 30, 2015)
Summary of Appraisal Report
Property nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho
Daiwa A Hamamatsucho (Note 2)
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho
Daiwa Shimbashi 510
Daiwa Tsukijiekimae (Note 3)
Daiwa Tsukiji
Daiwa Tsukishima
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Daiwa Onarimon
Shinjuku Maynds Tower (Note 4)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building
Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Shibuya Dougenzaka
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Azabu Green Terrace
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Concept Aoyama
Shinsen Place
Glass City Shibuya
River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Daiwa Higashi-Ikebukuro
Daiwa Shinagawa North

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

Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminal
cap rate
rate
(%)
(%)

15,800

16,1003.9

15,500

3.7

4.1

3,260

3,300

3.8

3,210

3.6

4.0

7,350

7,460

4.3

7,300

4.1

4.5

4,250

4,290

4.2

4,210

4.0

4.4

3,270

3,310

4.8

3,220

4.6

5.0

3,220

3,280

4.1

3,190

3.9

4.3

2,230

2,250

4.1

2,210

3.9

4.3

2,860

2,940

3.9

2,830

3.7

4.1

2,680

2,710

4.2

2,660

4.0

4.4

2,420

2,500

4.4

2,380

4.2

4.6

1,550

1,570

4.6

1,540

4.6

4.8

1,360

1,350

4.5

1,370

4.5

4.7

9,080

9,130

4.4

9,060

4.1

4.6

2,450

2,490

4.4

2,410

4.2

4.6

1,750

1,760

4.3

1,740

4.1

4.5

3,180

3,220

4.3

3,140

4.1

4.5

2,670

2,820

4.0

2,600

3.8

4.2

12,80013,100

4.1

12,5003.9

4.3

116,000

142,000

3.6

132,000

3.4

3.8

4,650

4,730

4.0

4,560

3.8

4.2

2,060

2,080

4.6

2,030

4.4

4.8

3,230

3,320

4.4

3,190

4.4

4.6

5,330

5,460

4.1

5,280

3.9

4.3

3,270

3,360

4.2

3,250

4.2

4.4

7,460

7,590

3.7

7,410

3.5

3.9

4,420

4,520

3.7

4,370

3.5

3.9

32,30032,9003.6

31,600

3.4

3.8

2,110

2,140

4.3

2,090

4.1

4.5

12,00012,1003.6

11,900

3.4

3.8

6,380

6,690

3.8

6,240

3.6

4.0

12,10012,400

3.6

12,000

3.4

3.8

8,040

8,080

3.9

8,000

3.6

4.0

15,70015,8004.1

15,500

3.8

4.2

5,120

5,140

4.0

5,110

3.8

4.2

9,830

10,200

3.6

9,670

3.4

3.8

11,20011,500

3.6

11,000

3.4

3.8

6,020

6,080

3.7

5,990

3.6

3.9

17,50017,6003.7

17,3003.4

3.8

29,80030,0004.3

29,600

4.0

4.4

3,060

3,210

3.8

3,000

3.6

4.0

1,700

1,780

3.9

1,670

3.7

4.1

3,490

3,550

4.5

3,460

4.3

4.7

5,790

5,830

4.6

5,740

4.4

4.8

- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
Summary of Appraisal Report
Property name

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

Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminal
cap rate
rate
(%)
(%)

2,240
2,260
4.1
2,230
3.9
4.3
Daiwa Osaki 3-chome
2,420
2,410
4.9
2,430
4.7
5.1
Daiwa Kamiooka
17,50017,900
4.1
17,3003.9
4.3
Integral Tower
6,110
6,340
3.9
6,010
3.7
4.1
Meguro Place Tower
2,660
2,700
5.1
2,620
4.9
5.3
Daiwa Minami-Senba
7,150
7,310
4.5
7,080
4.5
4.7
Daiwa Meieki
11,00011,300
4.1
10,900
3.9
4.3
Kitahama Grand Building
459,820
491,860
471,600
Total(Note 1) “Estimated price at end of period” is the price as of November 30, 2015stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii Appraisal & Investment
Consulting, Inc. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 2) For Daiwa A Hamamatsucho, the prices are those pertaining to the Investment Corporation’s ownership interest.
(Note 3) Discount rate for Daiwa Tsukijiekimae is the figure after the 4th fiscal year (4.4% in 1st year and 4.5% in 2nd and 3rd
fiscal years).
(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment Corporation’sownership interest, and the price indicated by the direct capitalization method and price indicated by the DCF method
are the prices pertaining to the entire Property.

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th 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 20th Fiscal Period (from June 1, 2015 toNovember 30, 2015). Income (loss) information is presented in accordance with “3. Financial Statements; 3.7. Notes to
Significant Accounting Policies” outlined earlier.
RegionPrice
information

Five Central Wards of Tokyo

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

14,100

3,050

8,265

4,550

3,190

3.2

0.7

1.9

1.0

0.7

Carrying amount (million yen)

13,308

2,830

8,022

4,465

3,226

Estimated price at end of period(million yen)

15,800

3,260

7,350

4,250

3,270

Number of tenants (Note 1)

Daiwa
Shibaura

Daiwa
Sarugakucho(Note 4)

Daiwa
Ginza

Investment ratio (%)

Daiwa
Ginza Annex

Daiwa
MinamiAoyama

Property name

27

7

53

6

1

Leasable floor area (m2)8,175.26

2,032.11

9,619.67

2,715.54

3,657.43

Leased floor area (m2)

7,680.00

2,032.11

9,497.22

2,715.54

3,657.43

End of Nov. 2013

86.9

100.0

90.2

94.1

100.0

End of May 2014

92.6

100.0

98.7

100.0

100.0

End of Nov. 2014

92.1

100.0

98.3

100.0

100.0

End of May 2015

91.8

100.0

99.5

100.0

100.0

End of Nov. 2015

93.9

100.0

98.7

100.0

100.0

183

183

183

183

183

382,686

92,412240,003

127,439－

382,686

92,412

238,616

123,977

－

－

－

1,386

3,462

－

166,219

41,754

94,116

41,468－

Consignment expenses

20,4295,378

16,085

6,862－

Utilities expenses

28,9006,889

22,626

8,757－

Taxes and dues

28,0079,106

19,626

11,874－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Non-life insurance expenses

439

101

407

151

－

Repair expenses

6,213

2,414

9,884

763

－

Depreciation (C)70,38917,86325,485

13,059－Other lease business expenses

11,841－－－－

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

216,466

50,658145,886

85,970－NOI (E) [(D) + (C)] (thousand yen)

286,855

68,522

171,372

99,03083,213

6,702

2,208

7,078

11,223

20,219NCF [(E) – (F)] (thousand yen)

280,152

66,313

164,293

87,80662,994

Expense rate (%) [(B) ÷ (A)]

43.44

45.18

39.21

32.54

－

55,966

18,05338,66823,24013,349346,060

86,510347,210

185,215

171,199

Capital expenditures (F) (thousand yen)

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property nameDaiwa A
Hamamatsucho

Daiwa Jingumae

Daiwa
Shibadaimon

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

2,865

2,800

2,578

2,346

2,080

Daiwa Misakicho Daiwa Shimbashi(Note 4)510

Investment ratio (%)

0.6

0.6

0.6

0.5

0.5

Carrying amount (million yen)

2,827

2,698

2,398

2,196

2,131

Estimated price at end of period(million yen)

3,220

2,230

2,860

2,680

2,420

Number of tenants (Note 1)

12

4

6

1

7

Leasable floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,676.52

Leased floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,668.12

End of Nov. 2013

100.0

100.0

100.0

100.0

99.4

End of May 2014

100.0

100.0

100.0

100.0

99.4

End of Nov. 2014

100.0

100.0

100.0

100.0

99.6

End of May 2015

100.0

100.0

100.0

100.0

99.6

End of Nov. 2015

100.0

100.0

100.0

100.0

99.6

183

183

183

183

183

132,499

71,01685,670－85,074132,499

71,01685,670－85,074

－

－

－

－

－

－

26,849

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Reference
information

74,73225,82433,688

Consignment expenses

10,321

4,229

7,059

－

5,219

Utilities expenses

9,884

6,330

7,877

－

7,403

Taxes and dues

8,785

6,365

6,257

－

5,706
116

Non-life insurance expenses

186

83

116

－

Repair expenses

1,583

1,347

2,799

－

807

Depreciation (C)14,571

7,462

9,576

－

7,594

Other lease business expenses

29,4007－－－

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

57,76645,191

51,982－58,225

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

72,33752,65361,55963,29465,819

Capital expenditures (F) (thousand yen)

21,051

6,941

1,941

3,042

633

NCF [(E) – (F)] (thousand yen)

51,28645,711

59,61860,251

65,185

Expense rate (%) [(B) ÷ (A)]

56.40

36.36

39.32

－

31.56

17,302

12,73012,144

10,325

11,344100,430

117,930

150,927

182,856

169,555

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Nihonbashi
Horidomecho

Daiwa AzabudaiMar. 2006

May 2006

May 2006

1,240

7,840

2,520

1,600

Property name

Daiwa
Tsukijiekimae

Daiwa
Tsukiji

Daiwa
Tsukishima

Acquisition dateJan. 2006

Jan. 2006

Acquisition price (million yen)

1,560

Investment ratio (%)

0.3

0.3

1.8

0.6

0.4

Carrying amount (million yen)

1,354

1,172

7,006

2,496

1,543

Estimated price at end of period(million yen)

1,550

1,360

9,080

2,450

1,750

Number of tenants (Note 1)

6

4

3

8

10

Leasable floor area (m2)2,659.59

1,487.82

8,426.85

2,850.81

1,697.88

Leased floor area (m2)2,659.59

1,328.52

8,426.85

2,850.81

1,697.88

End of Nov. 2013

100.0

100.0

100.0

100.0

100.0

End of May 2014

100.0

100.0

100.0

100.0

100.0

End of Nov. 2014

100.0

100.0

100.0

87.8

100.0

End of May 2015

100.0

89.2

100.0

100.0

100.0

End of Nov. 2015

100.0

89.2

100.0

100.0

100.0

183

183

183

183

183

56,47145,660283,096

81,63353,47956,47145,660283,096

81,63353,479

－

－

－

－

－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

29,881

22,219108,192

33,16721,090Consignment expenses

4,198

3,574

12,406

5,188

3,617

Utilities expenses

6,604

3,208

27,062

5,748

3,745

Taxes and dues

5,074

3,869

13,639

6,720

4,912

Non-life insurance expenses

98

58

305

129

81

Repair expenses

427

4,277

793

1,187

138

Depreciation (C)13,4607,230

53,984

14,193

8,594

18

－

－

－

－

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

26,58923,441

174,904

48,46532,388

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

40,04930,672

228,889

62,65840,983

Capital expenditures (F) (thousand yen)

1,040

2,290

420

5,584

1,838

NCF [(E) – (F)] (thousand yen)

39,00928,382

228,469

57,07339,145

Expense rate (%) [(B) ÷ (A)]

52.92

48.66

38.22

40.63

39.44

10,113

7,673

27,278

13,167

9,804

120,530

109,848

102,930

234,846

108,280

Other lease business expenses

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
RegionPrice
information

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

SHIBUYAEDGE

Property nameDaiwa Kyobashi

Acquisition dateJuly 2006

Oct. 2006

Dec. 2006

July 2007 andNov. 2007

July 2007

Acquisition price (million yen)

3,460

2,910

13,860133,800

5,900

Investment ratio (%)

0.8

0.7

3.1

30.0

1.3

Carrying amount (million yen)

3,313

2,851

13,478130,383

5,724

Estimated price at end of period(million yen)

3,180

2,670

12,800116,000

4,650

Number of tenants (Note 1)

9

7

7

35

5

Leasable floor area (m2)

3,265.83

2,690.90

11,614.92

45,543.97

2,480.65

Leased floor area (m2)

3,265.83

2,690.90

11,614.92

43,791.03

2,480.65

End of Nov. 2013

100.0

100.0

100.0

95.7

100.0

End of May 2014

100.0

100.0

100.0

94.7

100.0

End of Nov. 2014

100.0

100.0

100.0

94.0

100.0

End of May 2015

100.0

100.0

100.0

98.8

100.0

End of Nov. 2015

100.0

100.0

100.0

96.1

100.0

183

183

183

183

183

98,50391,419331,178

2,557,822

115,426

98,50391,419331,178

2,537,759

115,426－－－

20,063－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

43,50044,847112,904

1,180,124

41,109Consignment expenses

5,945

5,884

16,127

152,168

8,031

Utilities expenses

8,877

8,126

27,353

293,383

8,119

Taxes and dues

7,120

14,94834,931

247,173

7,250

Non-life insurance expenses

135

136

420

3,705

109

Repair expenses

1,885

4,239

3,450

92,547

1,416

Depreciation (C)19,536

11,51030,620383,315

16,182

－

－

－

7,831

－

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

55,003

46,572

218,273

1,377,698

74,316

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

74,53958,083248,894

1,761,013

90,499

Capital expenditures (F) (thousand yen)

5,149

3,420

10,745512,116

1,773

NCF [(E) – (F)] (thousand yen)

69,38954,663

238,149

1,248,897

88,726

Expense rate (%) [(B) ÷ (A)]

44.16

49.06

34.09

46.14

35.62

14,09829,62769,806494,235

14,493140,200

169,753459,880

4,460,870

62,460

Other lease business expenses

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
NishiShimbashi

Daiwa
Kayabacho
Building(Note 4)

Property name

Daiwa
Kodenmacho

Daiwa Jimbocho

Acquisition dateAug. 2007

Mar. 2010

Aug. 2010

Sept. 2010

Mar. 2011

Acquisition price (million yen)

2,460

4,150

5,000

4,000

5,600

Daiwa
Kudan

Investment ratio (%)

0.6

0.9

1.1

0.9

1.3

Carrying amount (million yen)

2,409

4,101

4,877

3,828

5,395

Estimated price at end of period(million yen)

2,060

3,230

5,330

3,270

7,460

Number of tenants (Note 1)

8

7

11

6

1

Leasable floor area (m2)2,379.31

3,164.26

4,815.84

2,882.61

5,899.11

Leased floor area (m2)2,379.31

3,164.26

4,815.84

2,882.61

5,899.11

End of Nov. 2013

100.0

100.0

100.0

100.0

100.0

End of May 2014

100.0

100.0

100.0

100.0

100.0

End of Nov. 2014

100.0

100.0

100.0

100.0

100.0

End of May 2015

100.0

100.0

96.3

100.0

100.0

End of Nov. 2015

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

64,340103,301

147,22188,308－64,340103,301

147,22178,796

－

－

－

－

9,512

－

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Reference
information

23,78048,49780,29358,440－Consignment expenses

4,052

6,814

15,6009,999－

Utilities expenses

5,302

8,108

12,062

8,339－

Taxes and dues

3,637

10,91015,7518,750－

Non-life insurance expenses

86

141

240

119

－

Repair expenses

548

1,019

2,694

6,706

－

Depreciation (C)9,331

21,46233,944

24,524－

Other lease business expenses

822

40

－

－

－

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

40,56054,803

66,927

29,868－

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

49,891

76,266

100,872

54,393

148,234

Capital expenditures (F) (thousand yen)

1,252

2,560

2,513

3,869

－

NCF [(E) – (F)] (thousand yen)

48,63973,706

98,35850,523

148,234

Expense rate (%) [(B) ÷ (A)]

36.96

46.95

54.54

66.18

－

7,274

21,49831,167

17,441

25,060100,234

128,200

187,580

181,61038,440

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo
Daiwa
Nihonbashi
Hongokucho

Property nameDaiwa Jimbocho3-chomeE-SPACETOWER

Acquisition dateMar. 2011

July 2011

May 2012

Dec. 2012 andApr. 2013

July 2013

Acquisition price (million yen)

3,550

24,000

1,721

9,650

4,500

shinyoncurumuDaiwa Shibuya
Dougenzaka

Investment ratio (%)

0.8

5.4

0.4

2.2

1.0

Carrying amount (million yen)

3,469

23,703

1,653

9,847

4,484

Estimated price at end of period(million yen)

4,420

32,3002,110

12,0006,380

Number of tenants (Note 1)

8

6

6

18

5

Leasable floor area (m2)2,889.34

13,960.87

2,143.08

6,751.31

4,144.90

Leased floor area (m2)2,889.34

13,960.87

2,143.08

6,751.31

3,812.47

100.0

100.0

100.0

67.5

100.0

Occupancy rate (%)
Leasing
information

End of Nov. 2013
End of May 2014

88.1

89.1

100.0

96.3

100.0

End of Nov. 2014

100.0

100.0

100.0

100.0

100.0

End of May 2015

100.0

96.4

100.0

100.0

100.0

End of Nov. 2015

100.0

100.0

100.0

100.0

91.9

183

183

183

183

183

111,538

777,230

55,918309,245

151,462

111,538

777,230

55,918309,245

147,462

－

－

－

－

4,000

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

Income (loss)
information

46,269234,366

27,288118,844

67,900Consignment expenses

7,702

47,2494,780

23,193

12,374

Utilities expenses

8,249

57,723

3,576

25,474

14,609Taxes and dues

9,397

56,895

4,421

33,625

13,589Non-life insurance expenses

124

655

76

330

212

Repair expenses

1,070

7,305

1,274

390

9,251

Depreciation (C)19,72464,464

13,16035,83017,864

－

72

－

－

－

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

65,268542,863

28,630190,400

83,562

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

84,993607,328

41,790226,231

101,426

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

554

14,534－155

12,848

NCF [(E) – (F)] (thousand yen)

84,439592,794

41,790226,076

88,577

Expense rate (%) [(B) ÷ (A)]

41.48

30.15

48.80

38.43

44.83

18,757

113,750

8,829

67,174

27,167

26,390317,590

22,401

65,855230,176

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
RegionProperty nameAcquisition date
Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

Daiwa Akasaka

Daiwa Shibuya
Miyamasuzaka

Aug. 2013

Sept. 2013

9,200

7,000

Azabu Green
TerraceDaiwa Ebisu
4-chome (Note4)

Jul. 2014

Dec. 2014

14,000LAQUAS
Higashi Shinjuku
Dec. 2014

4,135

8,450

Investment ratio (%)

2.1

1.6

3.1

0.9

1.9

Carrying amount (million yen)

9,411

7,207

14,286

4,288

8,642

Estimated price at end of period(million yen)

12,1008,040

15,700

5,120

9,830

Number of tenants (Note 1)

19

8

10

1

4

Leasable floor area (m2)

8,739.17

6,327.95

13,234.39

2,885.64

7,498.33

Leased floor area (m2)

7,731.93

6,327.95

13,234.39

2,885.64

7,498.33

95.6

100.0

－

－

－

－

－

－

－

Occupancy rate (%)
Leasing
information

End of Nov. 2013
End of May 2014

100.0

100.0

－

End of Nov. 2014

85.8

100.0

100.0

End of May 2015

85.8

100.0

100.0

0.0

100.0

End of Nov. 2015

88.4

100.0

100.0

100.0

100.0

183

183

183

183

183

296,961

227,895

452,934－

227,234

296,961

227,895

452,934－

227,234

－

－

－

－

－

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

Income (loss)
information

173,615

90,777

174,806－

83,448

Consignment expenses

36,34924,241

32,486－

11,996

Utilities expenses

43,53018,02651,783－17,802

Taxes and dues

33,10919,98031,865－

20,227

429

300

615

－

316

Repair expenses

34,579

5,797

7,769

－

654

Depreciation (C)25,61722,40650,286－32,290

－

24

－

－

158

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

123,345

137,117

278,127－

143,786

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

148,962

159,524

328,414(39,117)

176,076

Capital expenditures (F) (thousand yen)

131,525

29,5082,052

132,557－

NCF [(E) – (F)] (thousand yen)

17,437130,015

326,362(171,675)

176,076

Expense rate (%) [(B) ÷ (A)]

58.46

39.83

38.59

－

36.72

65,96339,906

63,232

17,84240,367

430,612416,816

325,054

115,410

125,440

Non-life insurance expenses

Other lease business expenses

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period

RegionFive Central Wards of Tokyo

Property nameConcept Aoyama

Shinsen Place

Daiwa
Glass City Shibuya(Note 4)

River Gate

Hatchobori
ekimaeAcquisition dateMar. 2015

Mar. 2015

May 2015

Jun. 2015

Sep. 2015

Acquisition price (million yen)

9,800

4,800

16,00028,0002,871

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

2.2

1.1

3.6

6.3

0.6

10,056

4,922

16,12428,2182,984

Estimated price at end of period(million yen)

11,2006,020

17,50029,800

3,060

5

1

11

88

9

4,421.79

2,811.35

8,566.73

32,062.96

2,622.42

4,421.79

2,811.35

8,566.73

30,563.43

2,622.42

End of Nov. 2013

－

－

－

－

－

End of May 2014

－

－

－

－

－

End of Nov. 2014

－

－

－

－

－

End of May 2015

85.9

100.0

100.0

－

－

End of Nov. 2015

100.0

100.0

100.0

95.3

100.0

183

183

183

182

81

209,064－

394,788

881,91434,026

209,064－

384,989

869,586

34,026

－

－

9,798

12,328－46,548－86,632

381,494

11,097

Consignment expenses

17,975－

18,546

114,836

3,874

Utilities expenses

9,390

－

34,451

105,942

1,851

0

－

229

18

8

159

－

377

1,813

58

1,873

－

856

10,715300

17,148－32,170148,099

4,969

Number of tenants (Note 1)
2

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

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

Income (loss)
information

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

－

－

－

69

34

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

162,516－

308,155

500,420

22,928

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

179,665

125,645

340,326

648,519

27,898

7,064

－

301

31,653450

NCF [(E) – (F)] (thousand yen)

172,601

125,645

340,024

616,865

27,448

Expense rate (%) [(B) ÷ (A)]

22.26

－

21.94

43.26

32.61

－

－

－

－

－

97,530112,510202,340

1,970,900

114,190

Capital expenditures (F) (thousand yen)

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period

Price
information

RegionFive Central
Wards of Tokyo

Property name

Daiwa
Hatchobori
ekimae West

Acquisition date

Sep. 2015

Oct. 2005

Acquisition price (million yen)

1,647Greater Tokyo
Daiwa
Daiwa Shinagawa
Higashi-IkebukuroNorth

Daiwa Osaki
3-chomeDaiwa Kamiooka

July 2007

Sept. 2012

Mar. 2013

2,958

7,710

1,650

2,000

Investment ratio (%)

0.4

0.7

1.7

0.4

0.4

Carrying amount (million yen)

1,713

2,745

7,293

1,660

1,993

Estimated price at end of period(million yen)

1,700

3,490

5,790

2,240

2,420

Number of tenants (Note 1)

9

7

13

5

9

Leasable floor area (m2)

1,723.24

4,461.47

6,548.17

1,786.06

2,630.30

Leased floor area (m2)

1,723.24

4,461.47

6,548.17

1,786.06

2,630.30

End of Nov. 2013

－

100.0

100.0

100.0

92.2

End of May 2014

－

92.2

100.0

88.4

85.4

End of Nov. 2014

－

100.0

100.0

100.0

85.4

End of May 2015

－

100.0

90.0

100.0

100.0

End of Nov. 2015

100.0

100.0

100.0

100.0

100.0

81

183

183

183

183

19,070117,523

178,507

54,84783,882

19,070117,523

178,507

54,84783,882

－

－

－

－

－

6,633

58,654

93,23323,51537,084

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

2,913

10,851

18,763

3,630

5,634

Utilities expenses

953

13,06817,965

3,833

6,751

Taxes and dues

8

8,658

18,520

3,903

6,358

Non-life insurance expenses

30

233

354

69

118

Repair expenses

625

2,585

3,939

845

366

Depreciation (C)2,067

23,25733,681

11,232

17,854

34

－

9

－

－

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

12,43658,86885,27331,332

46,798

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

14,504

82,126

118,955

42,56564,653

Other lease business expenses

Capital expenditures (F) (thousand yen)

Reference
information

300

1,091

9,026

7,796

4,243

NCF [(E) – (F)] (thousand yen)

14,20481,035

109,928

34,76860,409

Expense rate (%) [(B) ÷ (A)]

34.79

49.91

52.23

42.87

44.21

－

17,11835,791

7,807

12,71584,620228,260

331,160

37,912

24,782

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 20th Fiscal Period
RegionPrice
information

Greater Tokyo

Major Regional Cities

Property name

Integral Tower

Meguro Place
Tower

Acquisition date

May 2014

May 2015

Aug. 2007

Feb. 2013

Aug. 2014

Acquisition price (million yen)

15,220

5,600

4,810

5,300

9,481

Investment ratio (%)

Daiwa
Minami-Senba

Daiwa Meieki

Kitahama Grand
Building

3.4

1.3

1.1

1.2

2.1

Carrying amount (million yen)

15,183

5,639

4,679

5,350

9,521

Estimated price at end of period(million yen)

17,500

6,110

2,660

7,150

11,000

Number of tenants (Note 1)

9

14

13

23

6

Leasable floor area (m2)

17,778.14

3,519.50

5,703.50

7,461.90

13,517.62

Leased floor area (m2)

17,697.94

3,519.50

5,703.50

7,461.90

13,517.62

End of Nov. 2013

－

－

100.0

81.3

－

End of May 2014

96.7

－

75.7

98.4

－

End of Nov. 2014

99.5

－

95.7

100.0

100.0

End of May 2015

99.5

100.0

100.0

98.5

100.0

End of Nov. 2015

99.5

100.0

100.0

100.0

100.0

183

183

183

183

183

581,096

146,81290,643250,848

326,358

581,096

146,81290,643250,848

326,358

－

－

－

－

－

318,764

43,09273,64796,511

152,493

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Consignment expenses

53,0789,437

15,857

21,38425,151

Utilities expenses

84,585

10,771

12,684

18,57640,070

Taxes and dues

44,231

36

10,50820,15332,935

Non-life insurance expenses

894

177

237

390

595

Repair expenses

43,434

132

2,033

999

465

Depreciation (C)92,35922,53632,32635,00853,179

180

－

－

－

96

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

262,331103,719

16,996

154,336

173,864

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

354,690

126,256

49,322

189,344

227,043

Capital expenditures (F) (thousand yen)

57,580

1,146

5,984

180

1,197

NCF [(E) – (F)] (thousand yen)

297,109125,110

43,338189,164

225,846

Expense rate (%) [(B) ÷ (A)]

54.86

29.35

81.25

38.47

46.73

88,050－21,01540,30365,871

834,324

110,053

184,360

170,803

264,054

Other lease business expenses

Reference
information

Annual amount of fixed property tax, etc. forfiscal 2015 (thousand yen)
Estimated long-term repair expenses (thousandyen) (Note 2)(Note 1) Number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, the concerned tenant iscounted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimated to arise over the
12-year period from the 1st year to the 12th year as stated in the building investigation diagnosis report.
(Note 3) Estimated long-term repair expenses of “Daiwa Kayabacho Building” are the total amount of repair expenses and renewal
expenses estimated to arise over the 10-year period from the 1st year to the 10th year as stated in the building investigation
diagnosis report.
(Note 4) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc. for the property.

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