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 11th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:July 13, 2011
Daiwa Office Investment Corporation
Stock Exchange Listing: TSE
8976
URL: http://www.daiwa-office.co.jp
Kazuo Otaka, Executive Director
Daiwa Real Estate Asset Management Co. Ltd.
Akira Yamanouchi, President and Representative Director
Yuji Shinotsuka, Vice President and Representative
TEL: (03) 6215-9649
Director and Head of Finance Department

Scheduled date of submission of periodic securities report (yuka shoken hokokusho): August 25, 2011
Scheduled date of start of distribution payments:
August 15, 2011
[Amounts are rounded down to the nearest million yen, except for per unit figures]

1. Status of Management and Assets for the 11th Fiscal Period
11th Fiscal Period: Fiscal period ended May 2011 (from December 1, 2010 to May 31, 2011)
10th Fiscal Period: Fiscal period ended November 2010 (from June 1, 2010 to November 30, 2010)(1) Management[% figures show the period-on-period increase (decrease)]

11th
Period10th
PeriodOperating revenue

Operating income

Ordinary income

Net income¥6,758 million

5.2% ¥2,823 million

13.8% ¥1,587 million

24.6% ¥1,453 million

13.3%¥6,424 million(8.0%) ¥2,481 million(16.1%) ¥1,273 million(28.2%) ¥1,282 million(38.2%)Net income
per unit

11th
Period10th
PeriodRatio ofnet income tounitholders’ equity

Ratio ofordinary income tototal assets

Ratio ofordinary income tooperating revenue¥3,671

0.7%

0.5%

23.5%

¥3,239

0.6%

0.4%

19.8%

(2) Distributions[Total distribution amounts are rounded down to the nearest million yen]

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

11th
Period10th
PeriodTotal
distribution
amountDistribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payoutRatio ofdistribution
amount to
net assets¥3,671¥1,452 million¥0¥– million

100.0%

0.7%¥3,240¥1,282 million¥0¥– million

100.0%

0.6%(Note) Dividend payout = Total distribution amount (excluding total distribution amount in excess of earnings) ÷ Net income × 100(3) Financial Position

11th
Period10th
PeriodRatio ofunitholders’ equity tototal assets

Net assets
per unit

Total assets

Net assets¥298,626 million¥200,234 million

67.1%¥505,899¥294,562 million¥200,063 million

67.9%¥505,468-1-

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period(4) Cash Flows

11th
Period10th
PeriodNet cashprovided by (used in)operating activities

Net cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥3,228 million(¥9,387 million)¥2,189 million¥14,535 million¥2,852 million(¥8,609 million)¥8,257 million¥18,503 million

2. Management Status Forecasts for the 12th Fiscal Period
12th Fiscal Period: Fiscal period ending November 2011 (from June 1, 2011 to November 30, 2011)[% figures show the period-on-period increase (decrease)]

Operating revenue

12th
Period ¥7,420 million

Operating income

9.8% ¥3,182 million

12.7% ¥1,624 million

Distribution amount per unit
12th
Period(Reference)

Ordinary income(excluding distribution amount in excess of earnings)

2.4%

Net income¥1,622 million

11.7%

Distribution amount in excess of earnings per unit

¥4,100¥0

Estimated net income per unit for 12th Fiscal Period: ¥4,100

3. Other(1) Changes in Accounting Policies(i) Changes accompanying amendments to accounting standards, etc.: None(ii) Changes other than (i):None(2) Number of Investment Units Issued and Outstanding(i) Number of investment units issued and outstanding at end of period (including own investment units):
11th Fiscal Period: 395,798 units
10th Fiscal Period: 395,798 units(ii) Number of own investment units at end of period:
11th Fiscal Period:– units
10th Fiscal Period:– units(Note) Please refer to “Notes on Per Unit Information” on page 31 for the number of investment units used as the basis for calculating
the net income per unit.
*Explanation on the Appropriate Use of the Management Status Forecasts, and Other Matters of Special Note
The forecast figures set forth herein are the current prospects based on information currently available to the Investment Corporation andcontain elements of uncertainty. Accordingly, the actual operating revenue, operating income, ordinary income, net income anddistribution amount per unit may vary due to changes in the status. Moreover, the forecasts set forth herein should not be construed as aguarantee of distribution amounts. For details on the assumptions underlying the forecast figures above, please refer to “2. Management
Policy and Management Status; 2.2. Management Status; Assumptions for the Management Status Forecasts for the 12th Fiscal Period
and 13th Fiscal Period .

-2-

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
Daiwa Office Investment Corporation (the “Investment Corporation”) changed the general administrator related to theoperation of the administrative instruments from The Sumitomo Trust and Banking Co., Ltd. to Daiwa Real Estate
Asset Management Co., Ltd. on July 11, 2011.
Please refer to page 52 later in this document in detail.

2. Management Policy and Management Status
2.1 Management Policy
Disclosure is omitted because there are no significant changes from the “Investment Policy,” “Investment
Target” and “Distribution Policy” set out in the most recent periodic securities report (yuka shoken hokokusho)(submitted on February 24, 2011).
2.2 Management Status(1) Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Daiwa Office Investment Corporation (former name DA Office Investment Corporation, hereinafter called“the 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) (the “Investment
Trust Act”) with Daiwa Real Estate Asset Management Co., Ltd. (the “Asset Manager”) as the organizer.
After its establishment, the Investment Corporation implemented an additional issuance of investment units
through a public offering (99,600 units) on October 18, 2005 and then listed on the Tokyo Stock Exchange,
Inc. (TSE) Real Estate Investment Trust Section (stock code: 8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price),
subsequent activities, such as additional acquisition of properties and replacement of portfolio properties,
resulted in the assets under management amounting to 287,345 million yen as of the last day of May 2011.
The Investment Corporation strives to secure stable revenue and maximize returns for unitholders based ona clear portfolio development policy of specializing in investment in office buildings, with a particular focus
on investment in A Class buildings (refers to buildings with a total floor area of 30,000m2 or more) and B
Class buildings (refers to buildings with a total floor area of 2,000m2 or more, but less than 30,000m2)
situated in downtown Tokyo, as well as through dedicated efforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performance(a) Investment Environment
The Japanese economy during the fiscal period under review showed signs of a recovery against a
backdrop of the recovery in the global economy. However, the Great East Japan Earthquake that occurredon March 11, 2011 wrought about great damages, and immediately after the earthquake, there were blows to
the economy such as a decrease in production activities and slump in consumption. However, since then,along with the recovery of production facilities and the supply chain for parts and equipment, restrictions
that were placed on production activities started to loosen and household and business sentiment isgradually improving. Under such circumstances, there are now signs that production activities andconsumption is moving towards a recovery.
In terms of the office leasing market, there is a trend among tenants to relocate in order to consolidate or
expand their offices. As a result, vacancy rates are seesawing. New advertised rents are on a downward
trend, but the scale of decline is becoming smaller, and looks as though it is bottoming out.
In the office transaction market, easing of the lending attitude of financial institutions caused thepurchase demand by real estate companies and funds (including REITs) to increase. Postponements andsuch of transactions, etc. were seen immediately following the Great East Japan Earthquake, but the market
is gradually returning to a calm state and transactions have resumed.

(b) Management Performance
In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sales ofproperties) over the medium and long term, the Investment Corporation worked on “external growth,”
which aims to boost revenue through acquiring and selling properties, and “internal growth,” which aims tomaximize income generating from existing properties.

-3-

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
Concerning External growth, acquiring “Daiwa Kayabacho Building” (acquisition price: 5,600 million
yen) in March 25, 2011 and “Jimbocho Place ” (acquisition price: 3,550 million yen) in March 29, 2011
contributed to improving the long-term EPS.
As a result, the Investment Corporation’s assets under management as of the end of the 11th Fiscal Period(May 31, 2011) totaled 35 properties, the sum total of acquisition prices of which amounted to 287,345
million yen. Moreover, this results in investments in the five central wards of Tokyo, which the Investment
Corporation positions as a top priority investment area, accounting for 91.6% of the entire portfolio (basedon acquisition price).
Concerning Internal Growth, in spite of the severe office leasing market conditions, the occupancy rate at
the end of the 11th Fiscal Period maintained to 95.4% through strengthening collaboration with leasing
brokers and property managers. Moreover the Investment Corporation proactively pursues improvements oftenant satisfaction by strengthening relations with tenants.
C. Overview of Capital Procurementa. Situation of Interest-bearing Liabilities
On March 18, 2011, the Investment Corporation borrowed 2,000 million yen in total from Risona Bank, Ltd.
to refinance the borrowing 2,000 million yen on March 21, 2008. On March 25, 2011, the Investment
Corporation also borrowed 4,000 million yen in total from Risona Bank, Ltd. and Sumitomo Mitsui Banking
Corporation to purchase acquisition properties.
On May 25, 2011, the Investment Corporation repaid 1,400 million yen borrowed from Mizuho Bank, Ltd.
on September 18, 2009 ahead of schedule by utilizing a new loan 1,000 million yen from Shinsei Bank andcash reserves.
Contractual repayments of 41.25 million yen in total were made to Development Bank of Japan Inc. and
The Kagawa Bank, Ltd. on February 28, 2011. Moreover, contractual repayments of 84.375 million yen in
total were made to Sumitomo Mitsui Banking Corporation, The Sumitomo Trust and Banking Co., Ltd.,
Development Bank of Japan Inc., The Chuo Mitsui Trust and Banking Company, Limited, Taiyo Life
Insurance Company and The Gunma Bank, Ltd. on May 31, 2011.
As a result, the balance of interest-bearing liabilities outstanding as at the end of the 11th Fiscal Periodstood at 86,250 million yen (long-term loans payable: 77,750 million yen; investment corporation bonds:
8,500 million yen). Furthermore, of long-term loans payable, the balance of the current portion of interestbearing liabilities outstanding stood at 38,958.75 million yen (including 258.75 million yen in contractual
repayments).
In addition, for the purpose of hedging the risks of rises in interest rates, of the loans with floating interest
rates, the interest rate has been capped for the 7,100 million yen loan whose principal repayment is due on
February 20, 2012.
Borrowing List in 11th Period
LenderAmount(million yen)
Risona Bank Ltd.
2,000
Risona Bank Ltd.
2,000
Sumitomo Mitsui
2,000Banking Corporation
Shinsei Bank Ltd.
1,000

Drawdown Date

Repayment Date

2011/3/18
2011/3/25
2011/3/25

2014/3/18
2014/3/18
2014/3/25

Borrowing
Period3 years
3 years
3 years

2011/5/25

2013/11/29

2.5 years

Borrowing Amount by each financial institution as of May 31, 2011
Amount in the 11th
LenderPeriod (million yen)Aozora Bank, Ltd.
23,100Shinsei Bank, Ltd.
10,100
Risona Bank Ltd.
7,000
Sumitomo Mitsui Banking Corporation
6,925
Kansai Urban Banking Corporation
5,500
American Life Insurance Company
5,000
Mizuho Bank, Ltd.
3,500
-4-

Rate
29.71
12.99
9.00
8.91
7.07
6.43
4.50

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
The Sumitomo Trust and Banking Co., Ltd.
Development Bank of Japan, Inc.
The Bank of Fukuoka, Ltd.
The Chuo Mitsui Trust and Banking Co., Ltd.
ORIX Trust and Banking Corporation
The Shizuoka Bank, Ltd.
The Kagawa Bank Ltd.
The 77 Bank，Ltd.
The Gunma Bank, Ltd.
Taiyo Life Insurance Co., Ltd.
Total

3,447.5
2,737.5
2,000
1,977.5
1,500
1,000
992.5
992.5
988.75988.7577,750

4.43
3.52
2.57
2.54
1.93
1.29
1.28
1.28
1.27
1.27
100.00b. Collateral Situation
All properties excluding the following 12 properties owned by the Investment Corporation are collateralized.
The total amount of the collateral properties is 177,296 million yen and the each appraisal value of unsecured
properties is as indicated below.
Property Name

Appraisal Value(million yen)

Daiwa Sarugakucho
2,490
BPS Square
1,660
Daiwa Tsukiji 616
2,410
Benex S-3
3,410
Sunline Building No. 7
2,280
Shinjuku Maynds Tower (two-sevenths of all)35,333
Daiwa Kodenmacho
1,920
Daiwa Jimbocho
3,820
Daiwa Nishi-Shimbashi
5,680
Daiwa Kudan (Note)
3,990
Daiwa Kayabacho Building
5,980
Jimbocho Place
3,660
Subtotal
72,633Collateral Properties
177,296
Total
249,930(Note) Daiwa Kudan was changed from Kyodo Building (Kudan Ichigo-kan) on July 1, 2011. In this report,
property name is described as a new name “Daiwa Kudan”.
c. Rating Information (as of May 31, 2011)
Credit Rating Agency
RatingR&I
A

Outlook
Stabled. Shelf Registration
The Investment Corporation filed the shelf registration on March 16, 2010 as the below.
Investment Corporation Bonds
Planned Issue Amount
100 billion yen
Planned Issue Period
From March 24, 2010 to March 23, 2012
Use of funds
Funds for acquisition of specified assets, repayment of loans, redemption of
investment corporation bonds, refund of leasehold and security deposits,
and payment of repairs, etc.; funds for working capital; etc.

D. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance forthe 11th Fiscal Period of 6,758 million yen in operating revenue, 2,823 million yen in operating income,-5-

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
1,587 million yen in ordinary income, 134 million yen in extraordinary expenses (70 million yen in Loss on
disaster and 63 million yen in Provision for loss on disaster) by accounting for repair expenses to fix lightlydamaged cracks, etc. of some owned buildings by Great East Japan Earthquake and 1,453 million yen in net
income.
Concerning distributions, to ensure that the amount equivalent to distributions from earnings would be
included in the amount of tax-deductible expenses based on application of special provisions for taxation of
corporation tax (Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957;
including amendments thereto) (the “Special Taxation Measures Act”)), the Investment Corporation decided
to distribute the entire amount of unappropriated retained earnings, excluding fractions of the distribution
amount per unit that are less than 1 yen. Accordingly, the Investment Corporation declared a distribution
amount per unit of 3,671 yen.
(2) Outlook for the Next Fiscal Period
A. Investment Environment
Going forward, the Japanese economy is expected to grow due to an increase in demand that accompanies
earthquake reconstruction efforts as recovery of productive facilities and the supply chain of parts andequipment that were damaged by the Great East Japan Earthquake progress and production and consumption
moves toward a recovery. On the other hand, due to the progress in both the recovery of facilities of powercompanies and the state of progress made by households and companies in saving electricity, concerns over ashortage in electricity are starting to wane. However, caution is seen in the business confidence of companies,
particularly among non-manufacturers. In addition, there are concerns about the impact on production
activities of the power supply restrictions stemming from the cessation of operations of nuclear power plants.
As a result, there is a possibility that the Japanese economy may experience downward pressure.
Under such prospects, the slow downward trend of the vacancy rates of the office leasing market is
expected to continue. However, since the recent Great East Japan Earthquake a movement is seen among
tenants to prefer buildings that have advanced disaster prevention performance, such as seismic performanceand emergency power generating capabilities, when selecting buildings to move into. Due to this, it is thoughtthat the market will divide into two extremes going forward. Moreover, although newly advertised rents are
expected to gradually bottom out, it is anticipated that a considerable amount of time is needed for them toenter a recovery trend.
In the office transaction market, acquisition demand by real estate companies and funds (including REITs)
is expected to stay solid due to the influence of the easing of lending attitudes of financial institutions.
However, as mentioned before, the market is expected to divide into two extremes since office buildings as
an investment target are being selected from the perspective of disaster prevention performance.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Under such office leasing market conditions, the tenant side is also expected to become more selectivewith properties. Consequently, the Investment Corporation will carry out operational management under
the following policy in an aim to enhance the competitiveness of existing properties and thereby increase
the long-term EPS over the medium and long term.
(i) Maintain and raise occupancy rates
Strive to maintain and raise occupancy rates through the provision of office environments of hightenant satisfaction levels by maintaining the quality of buildings and equipment and proactively
implementing renovations, etc. of common-use areas and thereby lowering vacancy risks.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium and long term through further strengthening of good
relationships with existing tenants, as well as proactively tapping the needs of new tenants bydiscerning the market environment.
(iii) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of hightenant satisfaction levels through implementing efficient operational management and reviewing
systematic construction work by optimally leveraging the economies of scale achieved fromproactively realizing external growth.
b. Strategy for New Property Investments-6-

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
Based on various growth strategies, the Investment Corporation will concentrate its investment in A Class
and B Class buildings by maintaining a balance with the financing situation.
In principal, the Investment Corporation will invest in properties around Tokyo, but the Investment
Corporation will look into the investments in the competitive properties in the areas other than Tokyo froma viewpoint of territorially-distributed investments.
As pipeline support, in addition to expanding its own information-sourcing channels, the Investment
Corporation will search for properties that meet its investment criteria by proactively gathering real estatetransaction market information through greater collaboration with the Asset Manager and Sponsor Groupand utilizing the Group’s extensive network of clients, partners, etc.
During the 11th Fiscal Period, the Investment Corporation acquired Daiwa Kayabacho Building andJimbocho Place, which are situated in the five central wards of Tokyo. Remarkably, Daiwa Kayabacho
Building was a first property which the Investment Corporation acquired from the current sponsor. The
Investment Corporation believes that acquisition of these properties will contribute to further stabilizationand enhancement of the portfolio, and it will continue to strive to acquire properties that are 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 LTV ratio of 40% to 50% at maximum.
(ii) Diversify repayment deadlines, targeting 20.0 billion yen as the maximum amount of interest-bearing
liabilities that shall become due during any single fiscal period.
(iii) Aim to have long-term loans account for at least 60% to 70% of total loans.
(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 distributions paid, separately from working capital.
C. Material Fact after the Announcementa. Acquisition of Assets
The Investment Corporation purchased trust beneficial interest in real estate on July 8, 2011.
Overview of the Type of Asset(i) Type of Asset
Trust beneficial interest in real estate(ii) Property NameE SPACE TOWER(iii) Location

3-6 Maruyamacho Shibuya-ku, Tokyo
24,000 million yen(excluding acquisition costs, consumption tax, etc.)(iv) Acquisition Price(v) Date of Execution of Purchase
Agreement(vi) Date of Delivery(vii) Seller

June 30, 2011
July 8, 2011
Endeavor Realty Fund Ltd.

b. Borrowing of Funds
The Investment Corporation borrowed loans on July 8, 2011
The funds were borrowed to provide for acquisition of the property and costs associated with its acquisition
and the remaining amount was allocated to cash reserves.

LenderDrawdown
Date

Loan
AmountInterest Rate

Repayment
Date

Borrowing /Repayment Method

Sumitomo Mitsui
Banking
Corporation

July 8,2011

13,5003month Japanese Yen TIBOR+0.60% (Note1, Note2)

July 8,2014

Unsecured
Repayment in lump
sum

-7-

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
Mizuho Trust &Banking Co., Ltd.

July 8,
2011

3,000

3month Japanese Yen TIBOR+0.60% (Note1, Note2)

July 8,2014

Unsecured
Repayment in lumpsum

Aozora Bank,
Ltd.

July 8,
2011

1,500

3month Japanese Yen TIBOR+0.60% (Note1, Note2)

July 8,2014

Unsecured
Repayment in lumpsum

Shinsei Bank,
Ltd.

July 8,
2011

1,000

3month Japanese Yen TIBOR+0.60% (Note1, Note2)

July 8,2014

Unsecured
Repayment in lumpsum

The Sumitomo
Trust & Banking
Co., Ltd.

July 8,
2011

5,000

3month Japanese Yen TIBOR+0.50% (Note1, Note3)

July 8,2013

Unsecured
Repayment in lumpsum

The Bank ofFukuoka, Ltd.

July 8,
2011

1,000

3month Japanese Yen TIBOR+0.50% (Note1, Note3)

July 8,2013

Unsecured
Repayment in lumpsum

Orix Trust andBanking
Corporation

July 8,
2011

1,000

3month Japanese Yen TIBOR+0.40% (Note1, Note4)

January 10,
2013

Unsecured
Repayment in lumpsum

(Note 1) Interest payment dates are last business day of February, May, August and November. Interest Rate is calculated
based on 3 month Japanese Yen TIBOR which Japanese Bankers Association (“JBA”) releases two business days
prior to interest payment date. (The applicable interest rate from July 8, 2011 to August 31, 2011 is calculated
based on 2 month Japanese Yen TIBOR which JBA released on July 6, 2011.)(Note 2) The applicable interest rate from June 1, 2014 to July 8, 2014 is calculated based on 1 month Japanese Yen TIBOR
which JBA is going to release on May 28, 2014.
(Note 3) The applicable interest rate from June 1, 2013 to July 8, 2013 is calculated based on 1 month Japanese Yen TIBOR
which JBA is going to release on May 29, 2013.
(Note 4) The applicable interest rate from December 1, 2012 to January 10, 2013 is calculated based on 1 month Japanese
Yen TIBOR which JBA is going to release on November 28, 2012.

D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 12th Fiscal Period (fiscal
period ending November 2011 (from June 1, 2011 to November 30, 2011)). For the assumptions underlying
the management status forecasts, please refer to the “Assumptions for the Management Status Forecasts forthe 12th Fiscal Period and 13th Fiscal Period.
Operating revenue
Operating income
Ordinary income
Net income
Distribution amount per unit
Distribution amount in excess of earnings per unit

7,420 million yen
3,182 million yen
1,624 million yen
1,622 million yen
4,100 yen
0 yen

In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 12th Fiscal
Period and 13th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following
management status for the 13th Fiscal Period (fiscal period ending May 2012 (from December 1, 2011 to
May 31, 2012)).
Operating revenue
Operating income
Ordinary income
Net income
Distribution amount per unit
Distribution amount in excess of earnings per unit

7,207 million yen
3,069 million yen
1,921 million yen
1,919 million yen
4,850 yen
0 yen

(Note) The forecast figures above are the current forecasts calculated based on certain assumptions.
Accordingly, the actual operating revenue, operating income, ordinary income, net income,-8-

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
distribution amount per unit and distribution amount in excess of earnings per unit may vary due tochanges in the status. Moreover, the forecasts set forth herein should not be construed as a guaranteeof distribution amounts.
Assumptions for the Management Status Forecasts for the 12th Fiscal Period and 13th Fiscal Period
Item
Assumptions• 12th Fiscal Period:
Assets under management are assumed to be the 36 properties. 35 properties as of May 31,
2011 and 1 property purchased on July 8, 2011.
• 13th Fiscal Period:
Assets undermanagement
Assets under management are assumed to be the 36 properties.
• It is assumed that there are no changes in the assets under management (new property
acquisitions, sale of portfolio properties, etc.) through to the end of the 13th Fiscal Period.
• The actual number of properties may vary due to changes in the assets under management.
• Rent revenue from existing properties is calculated based on historical data and taking into
Operatingaccount variable factors.
revenue• It is assumed that there is no gain (loss) on sales of real estate properties.
• Expenses related to rent business, which constitute a major component of operating
expenses, are calculated based on historical data and taking into account variable factors.
• Repair expenses for buildings are recorded as expenses in the amount expected to benecessary in the respective fiscal period based on the medium- and long-term repair planestablished by the Asset Manager.
• Operating income from property leasing (excluding gain on sales of real estate properties)
Operatingafter deducting expenses related to rent business (including depreciation) is expected to be
expenses
4,041 million yen in the 12th Fiscal Period and 3,890 million yen in the 13th Fiscal Period.
• Outsourcing expenses are expected to be 529 million yen in the 12th Fiscal Period and 600
million yen in the 13th Fiscal Period.
• Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 605 million
yen in the 12th Fiscal Period and 639 million yen in the 13th Fiscal Period.
• Depreciation is expected to be 1,368 million yen in the 12th Fiscal Period and 1,384 million
yen in the 13th Fiscal Period.
• Non-operating expenses in the 12th Fiscal Period are expected to be 1,557 million yen, of
which the interest expenses and borrowing related expenses are expected to be 1,546 million
Non-operatingyen.
expenses• Non-operating expenses in the 13th Fiscal Period are expected to be 1,147 million yen, of
which the interest expenses and borrowing related expenses are expected to be 1,139 million
yen.
• The total amount of interest-bearing liabilities is assumed to be 111,616.875 million yen at
the end of the 12th Fiscal Period and 111,491.25 million yen at the end of the 13th Fiscal
Period.
• In the 12th Fiscal Period, the Investment Corporation decided to borrow a total of 26.0
billion yen to provide for acquisition of the new property, etc.
• During the 12th Fiscal Period, of 5,500 million yen (due by June 30, 2011) that is to becomedue for repayment, 5,000 million yen will be refinanced. The total of 6,500 million yen(3,000 million yen due by Aug 31, 2011 and 3,500 million yen due by Sep 30,2011) will beInterest-bearing
refinanced in the entire amount. Some interest-bearing liabilities are assumed to be repaid
liabilities
ahead of schedule and refinanced in the entire amount in the 12th Fiscal Period. And 133.125
million yen that is to become due for contractual repayment (41.25 million yen due byAugust 31, 2011; 7.5 million yen due by September 16, 2011; 84.375 million yen due by
November 30, 2011) will be repaid using cash reserves.
• The total amount of interest-bearing liabilities in the 13th Fiscal Period is based on theassumption that, all loans that are to become due for repayment, will be refinanced in theentire amount. The total amount of interest-bearing liabilities in the 13th Fiscal Period is
also based on the assumption that the 125.625 million yen that is to become due for-9-Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
Item

Assumptions
contractual repayment (41.25 million yen due by February 29, 2012; 84.375 million yen due
by May 31, 2012) will be repaid using cash reserves.

Number ofinvestment units
issued andoutstanding• The number of investment units issued and outstanding is assumed to be the 395,798 units
issued and outstanding as of the date of submission of this document, and there is assumed to
be no additional issuance of investment units through to May 31, 2012.

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

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

2.3. Investment Risks
Disclosure is omitted because there are no significant changes from the “Investment Risks” set out in the periodic
securities report (yuka shoken hokokusho) submitted on February 24, 2011.

- 10 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

3. Financial Statements
3.1. Balance Sheets

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Other
Accumulated depreciation
Other, net
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
Intangible assets
Right of trademark
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits in trust
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets

10th Fiscal Period(Unit: thousand yen)
11th Fiscal Period[As of Nov 30, 2010][As of May 31, 2011]

*1

*1
*1
*1
*1
*1
*1
*1

*1

- 11 -

13,191,204
5,312,762
176,919
119,735
766,50318
224,878
19,792,022
4,058(1,854)2,204
3,456(3,456)–58,527,997(9,284,724)
49,243,272
779,508(69,839)
709,669
743,396(225,280)
518,116
64,513(16,678)
47,835
6,302(6,302)–
218,730,714
22,408269,274,222
1,383
4,970,290
7,047
4,978,722

*1

*1
*1
*1
*1
*1
*1
*1

*1

9,164,744
5,370,579
174,669–
626,451
21
230,461
15,566,926
4,058(2,109)1,949
3,456(3,456)–
61,891,282(10,518,559)
51,372,722
788,860(80,205)
708,654755,291(256,904)
498,386
69,972(21,969)
48,0036,302(6,302)–
225,160,517
27,738277,817,973
1,250
4,970,290
6,268
4,977,809

113,684
334,655
18,107466,448274,719,392

113,684
92,644
14,806
221,135
283,016,919

51,03751,037
294,562,452

42,50142,501
298,626,347

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for loss on disaster
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
Other
Total noncurrent liabilities
Total liabilities

10th Fiscal Period(Unit: thousand yen)
11th Fiscal Period[As of Nov 30, 2010][As of May 31, 2011]*1*1

Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets*2- 12 -

593,106
14,258,750
237,901794
28,537807,721–
176,938
16,103,749
8,500,000
60,016,875
5,375,088
4,496,746
6,527
78,395,236
94,498,986*1*1

875,740
38,958,750
245,156
849
43,826
716,01763,721
236,082
41,140,144
8,500,000
38,791,250
5,339,027
4,617,729
4,074
57,252,081
98,392,226

198,780,951

198,780,951

1,282,514
1,282,514
200,063,466
200,063,466
294,562,452

1,453,170
1,453,170
200,234,121
200,234,121
298,626,347*2

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

3.2. Statements of Income

10th Fiscal Period[From: June 1, 2010
To: November 30, 2010]

Operating revenue
Rent revenue – real estate
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on donation of noncurrent assets
Total extraordinary income
Extraordinary expenses
Loss on disaster
Provision for loss on disaster
Total extraordinary expenses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)[From: December 1, 2010
To: May 31, 2011]*1*16,374,684
49,803
6,424,488*1*1

6,715,058
43,7286,758,786*1

3,194,661
516,632
14,57583,794
27,773
4,880
100,667
3,942,984
2,481,503*1

3,165,923
542,152
14,80982,61236,2225,400
87,886
3,935,007
2,823,779

1,788
1,903
1,142
4,834

1,464
6,029
1,685
9,179

719,395
92,015
391,405
9,866
1,212,683
1,273,655

729,850
96,480410,557
8,536
1,245,425
1,587,534

9,713
9,713

610
610

–
–
–
1,283,368
986
4
991
1,282,377
137
1,282,514- 13 -(Unit: thousand yen)
11th Fiscal Period*2*270,342
63,721
134,063
1,454,080
1,042
(2)
1,039
1,453,041
129
1,453,170

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

3.3. Statements of Unitholders’ Equity

10th Fiscal Period
Unitholders’ equity
Unitholders’ capital
Balance at end of previous period
Changes of items during period
Total changes of items during period
Balance at end of current period
Surplus
Unappropriated retained earnings (undisposed loss)
Balance at end of previous period
Changes of items during period
Dividends from surplus
Net income
Total changes of items during period
Balance at end of current period
Total Surplus
Balance at end of previous period
Changes of items during period
Dividends from surplus
Net income
Total changes of items during period
Balance at end of current period
Total unitholders’ equity
Balance at end of previous period
Changes of items during period
Dividends from surplus
Net income
Total changes of items during period
Balance at end of current period[From: June 1, 2010
To: November 30, 2010][From: December 1, 2010
To: May 31, 2011]

198,780,951

198,780,951*1

Total net assets
Balance at end of previous period
Changes of items during period
Dividends from surplus
Net income
Total changes of items during period
Balance at end of current period- 14 -(Unit: thousand yen)
11th Fiscal Period–
198,780,951*1–
198,780,951

2,076,493

1,282,514(2,076,356)
1,282,377(793,978)1,282,514(1,282,385)
1,453,041
170,655
1,453,170

2,076,493

1,282,514(2,076,356)
1,282,377(793,978)1,282,514(1,282,385)
1,453,041
170,655
1,453,170

200,857,444

200,063,466(2,076,356)
1,282,377(793,978)200,063,466(1,282,385)
1,453,041
170,655
200,234,121

200,857,444

200,063,466(2,076,356)
1,282,377(793,978)200,063,466(1,282,385)
1,453,041
170,655
200,234,121

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

3.4. Statements of Cash Distributions

Item
I. Unappropriated retained earnings
II. Distribution amount[Distribution amount per unit]
III. Retained earnings carried forward
Method for calculating distribution amount10th Fiscal Period[From: June 1, 2010
To: November 30, 2010]
Amount (yen)1,282,514,781
1,282,385,520[3,240]129,261Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of
the amount equivalent to 90% of
its distributable earnings as
defined in Article 67-15 of the Act
on Special Measures Concerning
Taxation” but no more than theamount of earnings as specified in
Article 32, Item 1 of theInvestment Corporation’s articles
of incorporation, the Investment
Corporation decided the
distributions from earnings that itshall pay out shall be themaximum value of the integral
multiple of the number of units
issued and outstanding (395,798
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, theInvestment Corporation declared a
distribution amount of
1,282,385,520 yen. Furthermore,
the Investment Corporation shallnot distribute cash in excess ofearnings as stipulated in Article
32, Item 2 of its articles ofincorporation.

- 15 -

11th Fiscal Period[From: December 1, 2010
To: May 31, 2011]
Amount (yen)1,453,170,330
1,452,974,458[3,671]
195,872
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of
the amount equivalent to 90% of
its distributable earnings as
defined in Article 67-15 of the Act
on Special Measures Concerning
Taxation” but no more than theamount of earnings as specified in
Article 32, Item 1 of theInvestment Corporation’s articles
of incorporation, the Investment
Corporation decided the
distributions from earnings that itshall pay out shall be themaximum value of the integral
multiple of the number of units
issued and outstanding (395,798
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, theInvestment Corporation declared a
distribution amount of
1,452,974,458 yen. Furthermore,
the Investment Corporation shallnot distribute cash in excess ofearnings as stipulated in Article
32, Item 2 of its articles ofincorporation.

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

3.5. Statements of Cash FlowsNet cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Interest income
Interest expenses
Increase (decrease) in provision for loss on disaster(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
Increase (decrease) in long-term advances received
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from intangible assets
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
Repayments of tenant security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds
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 -

10th Fiscal Period(Unit: thousand yen)
11th Fiscal Period[From: June 1, 2010
To: November 30, 2010][From: December 1, 2010
To: May 31, 2011]

1,283,368
1,237,420
7,866(1,788)811,411–(34,817)(87,205)(399)(10,418)(31,192)(12,213)155,002319,612(2,452)(13,030)
3,621,162
1,788(770,028)(544)
2,852,378

1,454,080
1,282,285
8,536(1,464)
826,33163,721
2,250
119,735
140,052(69,732)
7,255
15,289(91,703)
242,010(2,452)
55,953
4,052,148
1,464(823,838)(987)
3,228,787(2,183)(9,504,225)(7,374)
507,739
933,943(415,956)(121,372)(8,609,428)–(9,472,147)–
249,951
402,361(338,036)(229,353)(9,387,225)

5,500,000(133,125)
4,965,833(2,075,329)
8,257,379
2,500,328
16,003,638
18,503,967

7,000,000(3,525,625)–(1,284,580)
2,189,794(3,968,643)
18,503,967
14,535,323*1*1

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

3.6. Notes on the Going Concern Assumption
10th Fiscal Period[From: June 1, 2010
To: November 30, 2010]
Not applicable.

11th Fiscal Period[From: December 1, 2010
To: May 31, 2011]
Not applicable.

3.7. Significant Accounting Policies
Item
1. Accumulated
depreciation method
for noncurrent assets

10th Fiscal Period[From: June 1, 2010
To: November 30, 2010](1) Property, plant and equipment
The straight-line method is adopted.
The useful life of primary property,
plant and equipment are as follows:
Tools, furniture and fixtures
5 years
Buildings in trust
2~49 years
Structures in trust
4~50 years
Machinery and equipment in trust 2~22 years
Tools, furniture and fixtures in trust 3~18 years

11th Fiscal Period[From: December 1, 2010
To: May 31, 2011]
(1) Property, plant and equipment
The straight-line method is adopted.
The useful life of primary property,
plant and equipment are as follows:
Tools, furniture and fixtures
5 years
Buildings in trust
2~49 years
Structures in trust
4~50 years
Machinery and equipment in trust 2~23 years
Tools, furniture and fixtures in trust 3~18 years(2) Intangible assets(2) Intangible assets
The straight-line method is adopted.
The straight-line method is adopted.
(3) Long-term prepaid expenses(3) Long-term prepaid expenses
The straight-line method is adopted.
The straight-line method is adopted.
2. Accounting for(1) Investment corporation bond issuance(1) Investment corporation bonds issuancedeferred assets
costs
costs
Amortized using the straight-line method
Amortized using the straight-line method
over the period up to redemption.
over the period up to redemption.
3. Criteria for provision(1) Provision for loss on disaster－
The provision for loss on disaster isestimated at the rational amount to pay
out repair expenses etc. related to theGreat East Japan Earthquake at the endof May, 2011.
4. Standards for
Accounting for fixed property tax, etc.
Accounting for fixed property tax, etc.
recording revenues
Concerning fixed property tax, city
Concerning fixed property tax, cityand expenses
planning tax, depreciated asset tax, etc.
planning tax, depreciated asset tax, etc.
for owned real estate in trust, of the tax
for owned real estate in trust, of the tax
amount that has been broken down intoamount that has been broken down into
installments, the method of accounting
installments, the method of accounting
for the amount corresponding to thefor the amount corresponding to theconcerned fiscal period as expenses
concerned fiscal period as expenses
related to rent business is adopted.
related to rent business is adopted.

- 17 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

5. Hedge accounting
approaches

6. Scope of funds inthe statements ofcash flows

Concerning the amount equivalent toConcerning the amount equivalent to
fixed property tax, etc. for the initial
fixed property tax, etc. for the initialfiscal year that shall be borne by thefiscal year that shall be borne by theInvestment Corporation in a correlation
Investment Corporation in a correlation
with acquisitions of real estate or trustwith acquisitions of real estate or trust
beneficial interest that have real estate as
beneficial interest that have real estate as
assets in trust, the amount is notassets in trust, the amount is not
expensed but is rather included in the
expensed but is rather included in thecost of acquisition of the concerned realcost of acquisition of the concerned realestate property. The amount equivalentestate property.
to fixed property tax, etc. that was
included in the cost of acquisition of realestate properties in the fiscal period
under review is 19,130 thousand yen.
(1)
Hedge accounting approach(1)
Hedge accounting approach
Special accounting is adopted forSpecial accounting is adopted forinterest rate caps that meet theinterest rate caps that meet therequirements for special accounting.
requirements for special accounting.
(2)
Hedging instruments and hedged(2)
Hedging instruments and hedged
items
items
Hedging instruments:
Hedging instruments:
Interest rate cap transactions
Interest rate cap transactions
Hedged items:
Hedged items:
Interest on loans
Interest on loans(3)
Hedging policy(3)
Hedging policy
The Investment Corporation conducts
The Investment Corporation conducts
derivative transactions to hedge risks
derivative transactions to hedge risks
stipulated in the Investment
stipulated in the Investment
Corporation’s articles of incorporation in
Corporation’s articles of incorporation inaccordance with the Investment
accordance with the Investment
Corporation’s risk management policy.
Corporation’s risk management policy.
(4)
Method for assessing the effectiveness (4)Method for assessing the effectivenessof hedging
of hedging
Assessment of the effectiveness is
Assessment of the effectiveness isomitted because interest rate caps meetomitted because interest rate caps meetthe requirements for special accounting.
the requirements for special accounting.
The funds (cash and cash equivalents) in the The funds (cash and cash equivalents) in thestatements of cash flows consist of cash onstatements of cash flows consist of cash on
hand and cash in trust; deposits that can be
hand and cash in trust; deposits that can bewithdrawn at any time and deposits in trust; withdrawn at any time and deposits in trust;and short-term investments with a maturity
and short-term investments with a maturityof 3 months or less from the date ofof 3 months or less from the date ofacquisition, which are readily convertible to acquisition, which are readily convertible tocash and bear only an insignificant risk ofcash and bear only an insignificant risk ofprice fluctuation.
price fluctuation.

- 18 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

10th Fiscal Period
11th Fiscal Period[From: June 1, 2010
[From: December 1, 2010
To: November 30, 2010]
To: May 31, 2011]
7. Other significant(1) Accounting method for trust beneficial(1) Accounting method for trust beneficial
matters forming basis
interest that have real estate properties asinterest that have real estate properties asfor preparation ofassets in trust
assets in trust
financial statements
Concerning owned trust beneficial
Concerning owned trust beneficial
interest that have real estate properties asinterest that have real estate properties asassets in trust, all accounts of assets andassets in trust, all accounts of assets andliabilities within assets in trust as well as
liabilities within assets in trust as well as
all accounts of revenues and expenses
all accounts of revenues and expenses
incurred from the assets in trust are
incurred from the assets in trust arerecorded in the relevant account item ofrecorded in the relevant account item of
the balance sheets and statements ofthe balance sheets and statements ofincome.
income.
The following material items of the
The following material items of theassets in trust recorded in the relevant
assets in trust recorded in the relevant
account item are separately listed on theaccount item are separately listed on thebalance sheets.
balance sheets.
Item(i) Cash and deposits in trust(ii) Buildings in trust; structures intrust; machinery and equipment intrust; tools, furniture and fixtures intrust; other tangible assets in trust;land in trust; and construction inprogress in trust(iii) Leasehold rights in trust(iv) Lease and guarantee deposits in trust(v) Tenant leasehold and security
deposits in trust(i) Cash and deposits in trust(ii) Buildings in trust; structures intrust; machinery and equipment intrust; tools, furniture and fixtures intrust; other tangible assets in trust;land in trust; and construction inprogress in trust(iii) Leasehold rights in trust(iv) Lease and guarantee deposits in trust(v) Tenant leasehold and security
deposits in trust(2) Accounting for consumption taxes(2) Accounting for consumption taxes
Consumption tax and local consumption
Consumption tax and local consumption
tax are accounted for by the taxtax are accounted for by the taxexclusion method and consumption taxes
exclusion method and consumption taxes
that are not tax-deductible are expensed
that are not tax-deductible are expensed
in the fiscal period under review.
in the fiscal period under review.
The consumption taxes relating to
The consumption taxes relating to
noncurrent assets, etc. that are not taxnoncurrent assets, etc. that are not taxdeductible are recorded as long-term
deductible are recorded as long-term
prepaid expenses and amortized in equal
prepaid expenses and amortized in equal
installments over 5 years.
installments over 5 years.

- 19 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

3.8. Change in Accounting Policy
10th Fiscal Period[From: June 1, 2010 To: November 30, 2010]
Adoption of Accounting Standard for Asset Retirement
Obligations
From the fiscal period ended November 30, 2010, theInvestment Corporation adopted the “Accounting Standard
for Asset Retirement Obligations” (Accounting Standards
Board of Japan (hereinafter, “ASBJ”) Statement No. 18
issued on March 31, 2008) and the “Guidance on
Accounting Standard for Asset Retirement Obligations”(ASBJ Guidance No. 21 issued on March 31, 2008). There
was no effect on ‘the Investment Corporation’s revenues
and expenses.
3.9. Change in Presentation
10th Fiscal Period[From: June 1, 2010 To: November 30, 2010]
In the statements of income, “Interest expense on
investment corporation bonds”, which used to be included
in “Interest expense” until the fiscal period ended May 31,
2010, have been presented as a separate account becauseof materiality.
The amounts of “Interest expense” and “Interest expense
on investment corporation bonds” were as follows if they
were recorded as separate accounts at the fiscal period
ended May 31, 2010.
(1) Interest expense: ¥716,335 thousand(2) Interest expense on investment corporation bonds:¥52,599 thousand- 20 -

11th Fiscal Period[From: December 1, 2010 To: May 31, 2011]

11th Fiscal Period[From: December 1, 2010 To: May 31, 2011]

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
3.10 Notes to Financial Statements
Concerning notes on lease transactions, securities, retirement benefits, tax-effect accounting, derivativetransactions and asset retirement obligations, disclosure is omitted because there is thought to be no substantial
need for such disclosure in the financial report (kessan tanshin).
[Notes to Balance Sheets]
10th Fiscal Period[From: June 1, 2010 To: November 30, 2010]

11th Fiscal Period[From: December 1, 2010 To: May 31, 2011]*1. Pledged assets and secured liabilities*1. Pledged assets and secured liabilities

The following are the assets that are pledged ascollateral.
(Unit: thousand yen)
Cash and deposits in trust
4,693,237
Buildings in trust
41,950,334
Structures in trust
604,554
Machinery and equipment in trust
459,648
Tools, furniture and fixtures in trust
44,667
Other in trust–
Land in trust
190,766,117
Construction in progress in trust
22,373
Leasehold rights in trust
4,970,290
Total
243,511,225

The following are the assets that are pledged ascollateral.
(Unit: thousand yen)
Cash and deposits in trust
3,787,369
Buildings in trust
32,837,142
Structures in trust
484,297
Machinery and equipment in trust
367,027
Tools, furniture and fixtures in trust
35,124
Other in trust－
Land in trust
163,817,609
Construction in progress in trust
17,044
Leasehold rights in trust
2,281,475
Total
203,627,092

The following are the liabilities secured by pledged
assets.
(Unit: thousand yen)
Current portion of long-term loans payable
14,258,750
Long-term loans payable
54,516,875
Total
68,775,625

The following are the liabilities secured by pledged
assets.
(Unit: thousand yen)
Current portion of long-term loans payable
38,951,250
Long-term loans payable
20,806,250
Total
59,757,500*2. Minimum net assets as provided in Article 67,*2. Minimum net assets as provided in Article 67,
Paragraph 4 of the Act on Investment Trusts andParagraph 4 of the Act on Investment Trusts andInvestment Corporations
Investment Corporations
50,000 thousand yen
50,000 thousand yen- 21 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period[Notes to Statements of Income]10th Fiscal Period
11th Fiscal Period[From: June 1, 2010 To: November 30, 2010][From: December 1, 2010 To: May 31, 2011]*1. Breakdown of operating income (loss) from property *1. Breakdown of operating income (loss) from property
leasingleasing(Unit: thousand yen)
(Unit: thousand yen)
A. Property leasing revenue
A. Property leasing revenue
Rent revenue – real estate
6,374,684
Rent revenue – real estate
6,715,058
Other lease business revenue
49,803
Other lease business revenue
43,728
Total property leasing revenue
6,424,488
Total property leasing revenue
6,758,786
B. Property leasing expenses
Consignment expenses
Utilities expenses
Taxes and dues
Non-life insurance expenses
Repair expenses
Depreciation
Other lease business expenses
Total property leasing expenses

534,440
624,108
560,634
13,106
163,878
1,235,682
62,8103,194,661

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

463,342565,645594,935
12,091
187,178
1,281,117
61,611
3,165,923

C. Operating income (loss) fromproperty leasing [A – B]

3,229,827

C. Operating income (loss) fromproperty leasing [A – B]

3,592,863*2 Breakdown of Extraordinary expenses
The expenses are repair costs etc, by the Great East
Japan Earthquake.

[Notes to Statements of Unitholders’ Equity]
10th Fiscal Period[From: June 1, 2010 To: November 30, 2010]*1. Total number of investment units authorized andnumber of investment units issued and outstanding

11th Fiscal Period[From: December 1, 2010 To: May 31, 2011]*1. Total number of investment units authorized andnumber of investment units issued and outstanding

Total number of investment units authorized
2,000,000 units
Number of investment units issued and outstanding
395,798 units

Total number of investment units authorized
2,000,000 units
Number of investment units issued and outstanding
395,798 units[Notes to Statements of Cash Flows]
10th Fiscal Period
11th Fiscal Period[From: June 1, 2010 To: November 30, 2010][From: December 1, 2010 To: May 31, 2011]*1. Relationship between cash and cash equivalents at end *1. Relationship between cash and cash equivalents at endof period in the statements of cash flows and theof period in the statements of cash flows and theamount stated in the balance sheetsamount stated in the balance sheets(As of November 30, 2010)(As of May 31, 2011)(Unit: thousand yen)
(Unit: thousand yen)
Cash and deposits
13,191,204
Cash and deposits
9,164,744
Cash and deposits in trust
5,312,762
Cash and deposits in trust
5,370,579
Cash and cash equivalents
18,503,967
Cash and cash equivalents
14,535,323- 22 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period[Notes on Financial Instruments]
10th Fiscal Period [from June 1, 2010 to November 30, 2010](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation uses various financing methods (such as bank borrowings, issuance ofinvestment corporation bonds, equity finance) for the acquisition and repair of investment properties, thepayments of dividends and the reimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates,and dispersing maturity dates.
The Investment Corporation manages surplus funds through safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks.
(b) Contents and risk of financial instruments and policies and related risk management
The Investment Corporation uses proceeds from the financing of debts and investment corporation bonds
for the acquisition of investment properties and the reimbursement of current debts and bonds. While thesedebts and bonds are exposed to liquidity risk, DOI manages the risk by maintaining the LTV ratio at low
levels, dispersing maturity dates, maintaining the ratio of long-term debt to total debt at high levels, anddiversifying 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 byusing derivative instruments (IRS).
Security deposits from tenants are exposed to liquidity risk and DOI reduces the risk by pooling funds toa certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions) and aremanaged by limiting the terms to short durations.
(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 no available market price is determined by using price reasonably estimated. As various
factors are incorporated into these calculations, the resulting value may differ if different assumptions areprovided. Also, market risk involved in derivative financial instruments is not represented by the contract
amounts of derivative financial instruments.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values as of November 30, 2010 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)).
(Unit: thousand yen)
Carrying amount
Fair value
Difference(1) Cash and deposits
13,191,204
13,191,204–(2) Cash and deposits in trust
5,312,762
5,312,762–
Total assets
18,503,967
18,503,967–(1) Current portion of long-term loans payable
14,258,750
14,298,433
39,683(2) Investment corporation bond
8,500,000
8,509,500
9,500(3) Long-term loans payable
60,016,875
60,241,171
224,296
Total liabilities
82,775,625
83,049,104
273,479(1) Derivative transactions
8,107
574
(7,533)(Note 1) Method of calculation of 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 is stated at that book value.
Liabilities(1) Current portion of long-term loans payable; (3) Long-term loans payable- 23 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
As those with floating interest rates reflect market interest rates within a short period of time, the fair value isapproximately the same as the book value and thus is stated at that book value. Those with fixed interest rates,on the other hand, are based on the method of calculating by discounting the sum total amount of principal andinterest by the rate reasonably estimated as being applicable in the event of a similar drawdown.
(2) Investment corporation bondConcerning the fair value of investment corporation bonds issued by the Investment Corporation, as these arebased on floating interest rates and reflect market interest rates within a short period of time, the fair value isapproximately the same as the book value and thus is stated at that book value.
Derivative transactions(1) Derivative transactions(a) Transactions for which hedge accounting is not applied
Not applicable.
(b) Transactions for which hedge accounting is applied
The contract amount, amount equivalent to the principal provided in the contract, etc. as of the settlementof accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)
Hedge accounting
approachSpecial accounting
for interest rate caps

Type, etc. of
derivative transaction

Main hedged item

Interest rate cap transaction Long-term loans payable

Method ofcalculation ofthat fair value

Contract amount, etc.
Of which,over 1 year

Fair value

7,100,000 7,100,000

574**Based on price quoted by partner financial institution.
(Note 2) Tenant leasehold and security deposits (carrying amount: 5,375,088 thousand yen) and tenant leasehold andsecurity deposits in trust (carrying amount: 4,496,746 thousand yen) that are deposited by lessees of rental
properties are not subject to disclosure of fair value because discerning of the fair value is recognized to be
extremely difficult as future cash flows cannot be reasonably estimated due to there being no market priceand difficulty of calculation of the actual deposit period from when lessees move in to when they move out.
(Note 3) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts(Unit: thousand yen)
Within 2 years,
but over 1 year

Within 1 year
Cash and deposits
Cash and deposits in trust
Total

13,191,204
5,312,762
18,503,967

Within 3 years,
but over 2 years–––

Within 4 years,
but over 3 years–––

Within 5 years,
but over 4 years

–
–
–

–
–
–

(Note 4) Amount of repayment of investment corporation bond and long-term loans payable scheduled to be due
after the settlement of accounts(Unit: thousand yen)
Current portion of
long-term loans payable
Investment corporation bondLong-term loans payable
Total

Within 1 year

Within 2 years,
but over 1 year

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

14,258,750

–

–

–

–

–

–
–
14,258,750–
44,035,625
44,035,625

5,000,000
15,981,250
20,981,250

–
–
–

–
–
–

3,500,000–
3,500,000- 24 -

Over 5 years

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
11th Fiscal Period [from December 1, 2010 to May 31, 2011](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation uses various financing methods (such as bank borrowings, issuance ofinvestment corporation bonds, equity finance) for the acquisition and repair of investment properties, thepayments of dividends and the reimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates,and dispersing maturity dates.
The Investment Corporation manages surplus funds through safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks.
(b) Contents and risk of financial instruments and policies and related risk management
The Investment Corporation uses proceeds from the financing of debts and investment corporation bonds
for the acquisition of investment properties and the reimbursement of current debts and bonds. While thesedebts and bonds are exposed to liquidity risk, DOI manages the risk by maintaining the LTV ratio at low
levels, dispersing maturity dates, maintaining the ratio of long-term debt to total debt at high levels, anddiversifying 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 byusing derivative instruments (IRS).
Security deposits from tenants are exposed to liquidity risk and DOI reduces the risk by pooling funds toa 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.
(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 no available market price is determined by using price reasonably estimated. As various
factors are incorporated into these calculations, the resulting value may differ if different assumptions areprovided. Also, market risk involved in derivative financial instruments is not represented by the contract
amounts of derivative financial instruments.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values as of May 31, 2011 and their differences are as follows. Please note thatthe following table does not include those for which discerning of fair value is recognized to be extremely
difficult (please refer to (Note 2)).
(Unit: thousand yen)
Carrying amount
Fair value
Difference(1) Cash and deposits
9,164,744
9,164,744－(2) Cash and deposits in trust
5,370,579
5,370,579－
Total assets
14,535,323
14,535,323－(1) Current portion of long-term loans payable
38,958,750
38,977,858
19,108(2) Investment corporation bonds
8,500,000
8,508,500
8,500(3) Long-term loans payable
38,791,250
38,989,518
198,268
Total liabilities
86,250,000
86,475,876
225,876(1) Derivative transactions
4,806
9(4,796)(Note 1) Method of calculation of 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 is stated at that book value.
Liabilities(1) Current portion of long-term loans payable; (3) Long-term loans payable- 25 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
As those with floating interest rates reflect market interest rates within a short period of time, the fair value isapproximately the same as the book value and thus is stated at that book value. Those with fixed interest rates,on the other hand, are based on the method of calculating by discounting the sum total amount of principal andinterest by the rate reasonably estimated as being applicable in the event of a similar drawdown.
(2) Investment corporation bonds
Concerning the fair value of investment corporation bonds issued by the Investment Corporation, as these arebased on floating interest rates and reflect market interest rates within a short period of time, the fair value isapproximately the same as the book value and thus is stated at that book value.
Derivative transactions(1) Derivative transactions(a) Transactions for which hedge accounting is not applied
Not applicable.
(b) Transactions for which hedge accounting is applied
The contract amount, amount equivalent to the principal provided in the contract, etc. as of the settlementof accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Of which,over 1 year

Hedge accounting
approach

Type, etc. of
derivative transaction

Main hedged item

Special accounting
for interest rate caps

Interest rate cap transaction

Current portion of longterm loans payable

7,100,000

Method ofcalculation ofthat fair value

Fair value

9

－

*

*Based on price quoted by partner financial institution.
(Note 2) Tenant leasehold and security deposits (carrying amount: 5,339,027 thousand yen) and tenant leasehold andsecurity deposits in trust (carrying amount: 4,617,729 thousand yen) that are deposited by lessees of rental
properties are not subject to disclosure of fair value because discerning of the fair value is recognized to be
extremely difficult as future cash flows cannot be reasonably estimated due to there being no market priceand difficulty of calculation of the actual deposit period from when lessees move in to when they move out.
(Note 3) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts(Unit: thousand yen)
Within 2 years,
but over 1 year

Within 1 year
Cash and deposits
Cash and deposits in trust
Total

9,164,744
5,370,579
14,535,323

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

－
－
－

－
－
－

－
－
－

－
－
－

(Note 4) Amount of repayment of investment corporation bond and long-term loans payable scheduled to be due
after the settlement of accounts(Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Current portion of
long-term loans payable

38,958,750

－

－

－

－

－

Investment corporation bonds－－
38,958,750－
21,291,250
21,291,250

5,000,000
17,500,000
22,500,000

－
－
－

－
－
－

3,500,000－
3,500,000

Long-term loans payable
Total

Within 3 years, Within 4 years, Within 5 years,
but over 2 years but over 3 years but over 4 years- 26 -

Over 5 years

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period[Notes on Transactions with Related Parties]
10th Fiscal Period [from June 1, 2010 to November 30, 2011](1) Parent company, major unitholder, etc.
% of voting
Balance atrights, etc. held Relation
Amount of
Capitalend ofNature ofName oftransaction
stock orwithClassificati
Business by related party
transactio
Account
periodcompany, Location(thousandon
investment description (held in the
Related(thousand
n
etc.
yen)
s in capital
Parties
Investmentyen)
Corporation)
Payment
Investment
of interest
corporation 3,500,000(Held in the
expensebond
Daiwa
Investment
on
Other
Securities Chiyoda247.3
Holding
Corporation) Provision investmen
51,285affiliatedGroup ku, Tokyo billion yen company Directly:13.11% of capitaltcompany
Other
Indirectly:15.16
Inc.
corporatio
18,649(current%n bonds
liabilities)(Note1)(Note 1) Issuance terms, etc. for investment corporation bonds were determined by conducting a multifaceted
analysis, including the disparity in the spread of investment corporation bonds of other similar investment
corporation bonds and the spread of senior bonds and subordinated bonds in the market (bank bonds) andverification from the spread of subordinated investment corporation bonds issued in the past in Japan.
(2) Subsidiaries and related companies, etc.
Not applicable.
(3) Companies, etc. with same parent company and subsidiaries, etc. of other affiliated companies
Not applicable.
(4) Officers and major unitholders, etc.
Not applicable.
11th Fiscal Period [from December 1, 2010 to May 31, 2011](1) Parent company, major unitholder, etc.
% of voting rights,
Capital stock
Amount ofBalance at
etc. held byRelationshiporBusiness
Nature of transaction
end of period
related party (heldwithLocation
Account
investments description
transaction (thousand(thousandin the Investment related party
in capital
yen)
yen)
Corporation)
Payment of
Investment(Held in theinterest
corporation
3,500,000
Daiwa
Investment
expenses onbond
Chiyoda-ku,
247.3
Holding
Provision of
Securities
Corporation)
49,986
investment
Tokyobillion yen
company
capital
Other
Group Inc.
Directly:13.11%
corporation(current
20,496
Indirectly:15.16%
bonds
liabilities)(Note 1)Name ofClassification company,
etc.

Other
affiliatedcompany(Note 1) Issuance terms, etc. for investment corporation bonds were determined by conducting a multifaceted
analysis, including the disparity in the spread of investment corporation bonds of other similar investment
corporation bonds and the spread of senior bonds and subordinated bonds in the market (bank bonds) andverification from the spread of subordinated investment corporation bonds issued in the past in Japan.
(2) Subsidiaries and related companies, etc.
Not applicable.

- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period(3) Companies, etc. with same parent company and subsidiaries, etc. of other affiliated companies
Name ofClassification company,
etc.

Subsidiary of
Daiwa
Other
Property
affiliatedCo.,Ltd.
company

Location

Chuo-ku,Tokyo% of voting rights,
Capital stock
etc. held byRelationship
Nature oforBusinesswithrelated party (heldtransaction
investments description
in the Investment related party
in capital
Corporation)

Amount oftransaction(thousandyen)

Account

Balance at
end of period(thousandyen)

Purchase of Purchase of
Trust
Trust
beneficial
beneficial
interest ininterest inreal estate
real estate

5,600,000

－

－

100
million yen

Real Estate
Rent
Business－(Note 1) Purchase of Trust beneficial interest in real estate was determined based on the market. Terms andconditions with interested persons were determined according to the regulation concerning conflict ofinterest in the internal rule of the Asset Manager.
(Note 2) The above amount of transaction is excluding consumption tax.
(4) Officers and major unitholders, etc.
Not applicable.

- 28 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period[Notes on Investment and Rental Property]
10th Fiscal Period [from June 1, 2010 to November 30, 2010]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The
carrying amount, amount of increase (decrease) during current period and fair value as of November 30, 2010 forthese rental properties are as follows.
(Unit: thousand yen)
Carrying amount
Fair value at end of
Balance at end ofAmount of increase (decrease)
Balance at end ofcurrent periodprevious period
during current period
current period
265,860,150
8,359,749
274,219,899
242,859,000(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) during current period, the amount of increase is mainly attributable toacquisition of Daiwa Nishi-Shimbashi (5,000 million yen) and Daiwa Kudan (4,000 million yen), and theamount of decrease is mainly attributable to depreciation (1,235 million yen).
(Note 3) The fair value at end of current period shows the appraisal value as appraised by an outside real estateappraiser.
The income (loss) in the 10th Fiscal Period for investment and rental properties are described as presented in ”
Notes to Statements of Income”.
11th Fiscal Period [from December 1, 2010 to May 31, 2011]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The
carrying amount, amount of increase (decrease) during current period and fair value as of May 31, 2011 for theserental properties are as follows.
(Unit: thousand yen)
Carrying amount
Fair value at end of
Balance at end ofAmount of increase (decrease)
Balance at end ofcurrent periodprevious period
during current period
current period
274,219,899
8,538,676
282,758,576
249,930,000(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) during current period, the amount of increase is mainly attributable toacquisition of Daiwa Kayabacho (5,600 million yen) and Jimbocho Place (3,550 million yen), and theamount of decrease is mainly attributable to depreciation (1,281 million yen).
(Note 3) The fair value at end of current period shows the appraisal value as appraised by an outside real estateappraiser.
The income (loss) in the 11th Fiscal Period for investment and rental properties are described as presented in ”
Notes to Statements of Income”.

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period[Segment Information etc.]
10th Fiscal Period [from June 1, 2010 to November 30, 2010][Additional Information]
Financial Accounting Standard for Segment Information Disclosure (Accounting Standards 17 March 27, 2009) and
Accounting Standards on Disclosure of Segment Information (Application Guidance of Accounting Standards 20
March 27, 2008) are adopted in the 10th Period.
(1) Segment Information
Segment Information has been omitted because the Investment Corporation has no segment except the property
leasing business.
(2) Related Information(a) Information by product and service
Information by products and service has been omitted because sale from external customers for one segment is inexcess of 90% of operating income.
(b) Information by geographical segment
A. Information of Revenue
Information of Revenue has been omitted because sale from external customers in Japan is in excess of 90% of
operating income.
B. Information of Tangible Fixed Assets
Information of Tangible Fixed Assets has been omitted because the tangible fixed asset located in Japan excesses
90% of total tangible fixed assets from the balance sheet.
(c) Information by principal customer
Information by principal customer has been omitted because each sale from a single external customer accounts forless than 10% of the operating income.
For your information, the prior segment information complied with this accounting rule has been omitted because theInvestment Corporation has no segments except property leasing business.
11th Fiscal Period [from December 1, 2010 to May 31, 2011](1) Segment Information
Segment Information has been omitted because the Investment Corporation has no segment except the property
leasing business.
(2) Related Information(a) Information by product and service
Information by products and service has been omitted because sale from external customers for one segment is inexcess of 90% of operating income.
(b) Information by geographical segment
A. Information of Revenue
Information of Revenue has been omitted because sale from external customers in Japan is in excess of 90% of
operating income.
B. Information of Tangible Fixed Assets
Information of Tangible Fixed Assets has been omitted because the tangible fixed asset located in Japan excesses
90% of total tangible fixed assets from the balance sheet.
(c) Information by principal customer
Information by principal customer has been omitted because each sale from a single external customer accounts forless than 10% of the operating income.

- 30 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period[Notes on Per Unit Information]
10th Fiscal Period[From: June 1, 2010 To: November 30, 2010]
Net assets per unit
505,468 yen
Net income per unit
3,239.98 yen

11th Fiscal Period[From: December 1, 2010 To: May 31, 2011]
Net assets per unit
505,899 yen
Net income per unit
3,671.16 yen

The net income per unit was calculated by dividing thenet income by the daily weighted average number ofinvestment units issued and outstanding.
The diluted net income per unit is not stated as there
are no diluted investment units.

The net income per unit was calculated by dividing thenet income by the daily weighted average number ofinvestment units issued and outstanding.
The diluted net income per unit is not stated as there
are no diluted investment units.

(Note) The basis for calculating the net income per unit is as follows.

Net income (thousand yen)Amounts not attributable to common unitholders (thousand yen)
Net income attributable to common investment units (thousand yen)
Average number of investment units during period (unit)- 31 -

10th Fiscal Period

11th Fiscal Period[From: June 1, 2010
To: November 30, 2010][From: December 1, 2010
To: May 31, 2011]

1,282,377–
1,282,377
395,798

1,453,041―
1,453,041
395,798

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period[Notes on Subsequent Material Events]
10th Fiscal Period[From: June 1, 2010 To: November 30, 2010]—

11th Fiscal Period[From: December 1, 2010 To: May 31, 2011]
1. Acquisition of Assets
The Investment Corporation purchased trust beneficial
interest in real estate on July 8, 2011 as below.
Overview of the Type of Asset(1) Type of Asset
Trust beneficial interest in real estate(2) Property Name E SPACE TOWER(3) Location
3-6 Maruyamacho Shibuya-ku, Tokyo(4) Acquisition Price 24,000 million yen(excluding acquisition costs andconsumption tax, etc.)(5) Date ofJune 30, 2011
Execution ofPurchase
Agreement(6) Date of Delivery July 8, 2011(7) Seller
Endeavor Realty Fund Ltd.
2. Borrowing of Funds
The Investment Corporation borrowed loan on July 8,
2011. The funds will be borrowed to provide foracquisition of the property and costs associated with its
acquisition. The remaining amount will be allocated to
cash reserves.
LenderSumitomo
Mitsui
Banking
Corporation
MizuhoTrust &
BankingCo., Ltd.

Loan
AmountInterest Rate

Drawdown DateBorrowing /Repayment
MethodRepayment Date13,5003month Japanese Yen
TIBOR +0.60%(Note1, Note2)

July 8,2011

Unsecured
Repaymentin lump sum

July 8,
2014

3,000

3month Japanese Yen
TIBOR +0.60%(Note1, Note2)

July 8,2011

Unsecured
Repaymentin lump sum

July 8,2014

AozoraBank, Ltd.

1,500

ShinseiBank, Ltd.

1,000

The
Sumitomo
Trust &
BankingCo., Ltd.
The Bank ofFukuoka,Ltd.
Orix Trustand Banking
Corporation

5,000

1,000
1,000

3month Japanese Yen
TIBOR +0.60%(Note1, Note2)
3month Japanese Yen
TIBOR +0.60%(Note1, Note2)
3month Japanese Yen
TIBOR +0.50%(Note1, Note3)
3month Japanese Yen
TIBOR +0.50%(Note1, Note3)
3month Japanese Yen
TIBOR +0.40%(Note1, Note4)

July 8,2011
July 8,2011
July 8,2011
July 8,2011
July 8,2011

Unsecured
Repaymentin lump sum
Unsecured
Repaymentin lump sum
Unsecured
Repaymentin lump sum
Unsecured
Repaymentin lump sum
Unsecured
Repaymentin lump sum

July 8,
2014
July 8,
2014
July 8,2013
July 8,2013
January
10, 2013(Note 1) * Interest payment dates are last business day of
February, May, August and November. Interest Rate is
calculated based on 3 month Japanese Yen TIBOR which
Japanese Bankers Association (“JBA”) releases twobusiness days prior to interest payment date. (The applicableinterest rate from July 8, 2011 to August 31, 2011 is
calculated based on 2 month Japanese Yen TIBOR which
JBA was release on July 6, 2011.)(Note 2) * The applicable interest rate from June 1, 2014 to
July 8, 2014 is calculated based on 1 month Japanese Yen- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
TIBOR which JBA is going to release on May 28, 2014.
(Note 3) * The applicable interest rate from June 1, 2013 toJuly 8, 2013 is calculated based on 1 month Japanese Yen
TIBOR which JBA is going to release on May 29, 2013.
(Note 4) * The applicable interest rate from December 1,
2012 to January 10, 2013 is calculated based on 1 month
Japanese Yen TIBOR which JBA is going to release on
November 28, 2012.

3.11.

Increase (Decrease) in Number of Investment Units Issued and Outstanding
Number of investment units
Unitholders’ capitalissued and outstanding(million yen)
Payment date
Description(units)Increase
Increase
Balance
Balance(Decrease)(Decrease)
Incorporation throughJuly 11, 2005
400
400
200
200
private placement
Capital increase throughOctober 18, 2005
99,600100,000
49,49849,698public offering
Capital increase throughJuly 10, 2007
100,000
200,000
75,316125,015
public offering
Capital increase by way of a
August 7, 2007
5,000
205,000
3,765
128,781third-party allotment
Capital increase by way of aJune 4, 2008
138,905
343,905
59,999188,780
third-party allotment
Capital increase by way of a
July 1, 2009
51,893395,798
10,000198,780
third-party allotment

Notes(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(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 (issue amount: 496,975 yen) to procure funds for acquisition of properties to beacquired upon listing, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of
781,060 yen per unit (issue amount: 753,165 yen) to procure funds for acquisition of acquisition properties,
etc.
(Note 4) The Investment Corporation issued new investment units by way of a third-party allotment at an issue priceof 753,165 yen per unit (issue amount: 753,165 yen) to fund part of acquisition of acquisition properties, etc.
(Note 5) The Investment Corporation issued new investment units by way of a third-party allotment at an issue priceof 431,949 yen per unit (issue amount: 431,949 yen) to fund repayment of loans and redemption of
investment corporation bonds.
(Note 6) The Investment Corporation issued new investment units by way of a third-party allotment at an issue priceof 192,705 yen per unit (issue amount: 192,705 yen) to fund repayment of loans, capital expenditure toenhance property value, acquisition of property, etc.

- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

4. Change in Directors
4.1. Change in Directors at the Investment Corporation
Not applicable.
4.2. Change in Directors at the Asset Manager
Changes in directors took place at the Asset Manager, effective March 31, 2011 and July 22, 2011.
The following presents the status of directors at the Asset Manager as of the date of this document.
Title

Name

President andRepresentative
Director

Akira
Yamanouchi

Career summary
Apr. 1986
Apr. 2002
May 2002
Mar. 2003
Aug. 2004
Aug. 2006
Feb. 2008
Feb. 2008
Feb. 2009
Mar. 2009
July 2009
Mar. 2010
Apr. 2010
May 2010

Vice President
andRepresentative
Director

YoshikiNishigaki

Apr. 1992
May 1996
Feb. 2006
Mar. 2007
Mar. 2008
Nov. 2008
May 2010
Aug. 2010
Feb. 2011

Joined Marubeni Corporation
Joined Pacific Management Corporation (currently,
Pacific Holdings, Inc.)
Temporarily transferred to Pacific Investment
Advisors Corporation (currently, AD Investment
Management Co., Ltd.)
President and Representative Director of PacificInvestment Advisors Corporation (with employmenttransfer)
Executive Director of Nippon Residential Investment
Corporation (currently, Advance Residence
Investment Corporation)
Resigned from office as Executive Director
Resigned from office as President and Representative
Director of Pacific Investment Advisors Corporation
President and Representative Director of PacificInvestment Partners Inc. (currently, Cushman &Wakefield Asset Management K.K.)
Representative Director (part-time basis) of Pacific
Holdings, Inc.
Resigned from Pacific Holdings, Inc.
Executive Managing Director of Cushman &Wakefield Asset Management K.K.
Resigned from Cushman & Wakefield AssetManagement K.K.
Advisor of Daiwa Real Estate Asset Management Co.,Ltd.
President and Representative Director (current
position)
Joined Cititrust & Banking Corporation
Joined K.K. DaVinci Advisors
Transferred to K.K. DaVinci Select (currently, Daiwa
Real Estate Asset Management Co., Ltd.)
Head of IR & Business Planning Department
President and Representative Director
Executive Director, DA Office Investment
Corporation (currently, Daiwa Office Investment
Corporation)
Vice President and Representative Director, Daiwa
Real Estate Asset Management Co., Ltd.
Resigned from Executive Director, Daiwa Office
Investment CorporationVice-President and Representative Director (Head ofAdvisory Department) (current position)- 34 -

Number ofshares held－－

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
Title

Name

Vice-President
andRepresentative
Director (Headof Corporate
Planning and
Finance
Department)

Yuji
Shinotsuka

Career summary
Apr. 1989
June 2009
July 2009

Nov. 2009
Apr. 2011

Director (Headof Investment
Management
Department)

AtsukoTakahashi

Apr. 1991
June 1992
Apr. 2002
Apr. 2005
Nov. 2008

Director (Headof
Administration
Department)

Naoyuki Owa

Apr. 1986
Apr. 1990
June 2006
Oct. 2006
July 2009

Director (parttime basis)

Toshihiro
Matsui

Apr. 1985
May 2004
Apr. 2005
Oct. 2005
Oct. 2006
Apr. 2007
Oct. 2008
Apr. 2009
July 2009

Joined Daiwa Securities Co. Ltd. (currently, Daiwa
Securities Group Inc.)
Head of Corporate Planning Department
Temporarily transferred to Daiwa Real Estate AssetManagement Co., Ltd.
Vice-President and Representative Director (Head of
IR & Planning Department)
Vice-President and Representative Director (Head ofCorporate Planning Department)
Vice-President and Representative Director (Head ofCorporate Planning and Finance Department) (current
position)
Joined Recruit Co., Ltd.
Temporarily transferred to K.K. Recruit Building
Management (currently, XYMAX corporation)
Concurrently temporarily transferred to XYMAX
Alpha corporation (currently, XYMAX AXIS
corporation)
Joined K.K. DaVinci Advisors
Manager of Acquisition Team
K.K. DaVinci Select (currently, Daiwa Real Estate
Asset Management Co., Ltd.) (with employmenttransfer)
Director (Head of Investment Management
Department) (current position)
Joined Tokyo High Court as Court Administrative
Official
Joined Daiwa Securities Co. Ltd. (currently, Daiwa
Securities Group Inc.)
Head of Corporate Planning Department and Treasury
Department of Daiwa Securities SMBC Co., Ltd.
(currently, Daiwa Securities Capital Markets Co. Ltd.)
Head of Corporate Planning Department of Daiwa
Securities Group Inc.
Temporarily transferred to Daiwa Real Estate AssetManagement Co., Ltd.
Director (Head of Administration Department)(current position)
Joined Daiwa Securities Co. Ltd. (currently, Daiwa
Securities Group Inc.)
Head of Corporate Institutions Department (V) of
Daiwa Securities SMBC Co., Ltd. (currently, Daiwa
Securities Capital Markets Co. Ltd.)
Head of Corporate Institutions Department (IV)
Head of Corporate Finance Department
Head of Corporate Finance Department (I)Head of Fixed Income, Currency andCommodities (FICC) Department
Head of Corporate Planning Department of Daiwa
Securities Group Inc.
Executive Officer
Director (part-time basis) of Daiwa Real Estate AssetManagement Co., Ltd.

- 35 -

Number ofshares held
－

－

－

－

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
Title

Name

Career summary

Executive Managing Director of Daiwa Securities
Group Inc. (current position)
Director (part- Hikari
Apr. 1984 Joined Daiwa Securities Co. Ltd. (currently, Daiwa
time basis)
Sakagami
Securities Group Inc.)
Apr. 2001 Head of Corporate Planning Department of Daiwa
Securities SMBC Co., Ltd. (currently, Daiwa
Securities Capital Markets Co. Ltd.)
July 2004 Head of Accounting & Finance Department of Daiwa
Securities Co. Ltd.
Oct. 2005 Head of Headquarters Relocation Department of
Daiwa Securities Group Inc.
Oct. 2008 Head of Finance Department (current position)
July 2009 Director (part-time basis) of Daiwa Real Estate AssetManagement Co., Ltd. (current position)
Statutory
ToshihikoApr. 1984 Joined Daiwa Securities Co. Ltd. (currently, Daiwa
Auditor (partOnishi
Securities Group Inc.)
time basis)
Apr. 2007 Managing Director, Assistant to Head of Planning of
Daiwa Securities SMBC Co. Ltd. (currently, Daiwa
Securities Capital Markets Co. Ltd.)
Executive Managing Director of Daiwa Securities
SMBC Principal Investments Co. Ltd.
Apr. 2008 Executive Officers of Daiwa Securities SMBC Co.
Ltd., and Representative Director and Deputy
President of Daiwa Securities SMBC Principal
Investments Co. Ltd.
Sept. 2009 Executive Officers of Daiwa Securities SMBC Co.
Ltd.(Head of Principal Investments)
Representative Director and Chairman of the Board of
Daiwa Securities SMBC Principal Investments Co.
Ltd.
Apr. 2010 Executive Officers of Daiwa Securities CapitalMarkets Co. Ltd.(Deputy Head of Corporate Financeand Co-Head of Global Investment Banking)Apr. 2011 Corporate Executive Officers of Daiwa Securities
Group Inc. (current position)
Apr. 2011 Auditor of Daiwa SB Investments Ltd. (current
position)
Apr. 2011 Auditor of Daiwa Property Co., Ltd. (current position)
June 2011 Auditor of Daiwa Real Estate Asset Management Co.,
Ltd. (current position)
Director of Daiwa Securities Group Inc.(current
position)(Note 1) Toshihiko Onishi assumed office as Auditor (part-time basis) on June 22, 2011.
(Note 2) Yoji Ueda resigned from office as Director on March 31, 2011.
(Note 3) Shigeharu Tominaga resigned from office as Auditor (part-time basis) on June 22, 2011.

Number ofshares held

Apr. 2011- 36 -－－

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

5. Reference Information
5.1. Investment Status
11th Fiscal Period(As of May 31, 2011)
Type of asset
Use
RegionTotal amount owned
As a percentage of(million yen)
total assets(Note 1)(%)
Five Central Wards of Tokyo
259,452
86.9
OfficeTokyo Metropolitan Area
18,398
6.2
Trust beneficial
interest in real estate
Major Regional Cities
4,907
1.6
Total
282,758
94.7
Deposits and other assets
15,867
5.3
298,626
100.0
Total amount of assets (Note 2)[282,758][94.7](Note 1) The total amount owned is the carrying amount (the book value after depreciation in the case of real estatein trust).
(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.

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
5.2. Investment Real Estate Properties (As of May 31, 2011)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Carrying
priceamountRegionProperty name(million yen) (million yen)
(Note 4)(Note 5)
Daiwa Ginza
14,10013,625
Daiwa Ginza Annex
3,050
2,935
Daiwa Shibaura
8,265
8,148
Daiwa Minami-Aoyama
4,550
4,503
Daiwa Sarugakucho
3,000
2,964
Daiwa A Hamamatsucho (Note 8)
2,865
2,822
Daiwa Jingumae
2,800
2,759
Daiwa Shibadaimon
2,578
2,466
Daiwa Misakicho
2,346
2,247
Daiwa Shimbashi 510
2,080
2,145
BPS Square
1,560
1,401
Daiwa Tsukiji
1,240
1,224
Daiwa Tsukiji 616
2,440
2,340
7,840
7,346
Five Central Daiwa Tsukishima
Nihombashi MS Building
2,520
2,501
Wards ofTokyo
Daiwa Azabudai
1,600
1,576
(Note 1)
Daiwa Shibuya SS
3,930
3,851
Daiwa Nihombashi Honcho
7,420
7,218
Daiwa Ginza 1-chome
4,620
4,545
Daiwa Kyobashi
3,460
3,394
Sunline Building No. 7 (Note 8)
2,680
2,651
Daiwa Onarimon
13,86013,707
Shinjuku Maynds Tower (Note 8)
133,800
132,218
SHIBUYA EDGE
5,900
5,851
Daiwa Kodenmacho
2,460
2,454
Daiwa Jimbocho
4,150
4,162
Daiwa Nishi-Shimbashi
5,000
5,116
Daiwa Kudan
4,000
4,015
Daiwa Kayabacho Building
5,600
5,625
Jimbocho Place
3,550
3,630
Total for Five Central Wards of Tokyo (30 properties)
263,264
259,452
Daiwa
Kinshicho
3,653
3,495
Tokyo
Daiwa
Higashi-Ikebukuro
2,958
2,862
Metropolitan
Area
Benex S-3
4,950
4,501
(Note 2)
Daiwa Shinagawa North
7,710
7,539
Total for Tokyo Metropolitan Area (4 properties)
19,271
18,398
Major
Regional
Daiwa Minami-Senba
4,810
4,907
Cities(Note 3)
Total for Major Regional Cities (1 property)
4,810
4,907
Total (35properties)
287,345
282,758- 38 -

Estimated price Investment
at end of periodratio(million yen)(%)
(Note 6)(Note 7)
13,900
4.9
2,900
1.1
7,290
2.9
3,980
1.6
2,490
1.0
2,910
1.0
2,020
1.0
2,820
0.9
2,410
0.8
2,540
0.7
1,660
0.5
1,370
0.4
2,410
0.8
7,710
2.7
2,420
0.9
1,830
0.6
3,940
1.4
6,980
2.6
4,190
1.6
3,130
1.2
2,280
0.9
14,4004.8
106,000
46.6
4,060
2.1
1,920
0.9
3,820
1.4
5,680
1.7
3,990
1.4
5,980
1.9
3,660
1.2
230,690
91.6
3,570
1.3
3,570
1.0
3,410
1.7
5,770
2.7
16,320
6.7
2,920

1.7

2,920
249,9301.7
100.0

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period(Note 1) “Five Central Wards of Tokyo” are the Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards.
(Note 2) “Tokyo Metropolitan Area” is Tokyo (excluding the Five Central Wards of Tokyo), and the Kanagawa,Chiba and Saitama Prefectures.
(Note 3) “Major Regional Cities” are the Osaka metropolitan area (Osaka, Kyoto and Hyogo Prefectures), Nagoya
metropolitan area (Aichi and Mie Prefectures), ordinance-designated cities (Sapporo, Sendai, Niigata,
Shizuoka, Hamamatsu, Okayama, Hiroshima, Kitakyushu and Fukuoka Cities), and Hakodate, Asahikawa,
Aomori, Morioka, Akita, Koriyama, Iwaki, Utsunomiya, Maebashi, Toyama, Kanazawa, Nagano, Gifu,
Otsu, Nara, Wakayama, Kurashiki, Fukuyama, Shimonoseki, Takamatsu, Matsuyama, Kochi, Kurume,
Nagasaki, Kumamoto, Oita, Miyazaki and Kagoshima Cities.
(Note 4) Acquisition price is the transaction value (excluding the amount equivalent to consumption taxes) of theapplicable trust beneficial interest stated in the trust beneficial interest transaction contract.
(Note 5) Carrying amount is the book value after depreciation amount as of May 31, 2011.
(Note 6) Estimated price at end of period is the price that has May 31, 2011 as the date of the price opinion stated inappraisal reports prepared by real estate appraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real
Estate Appraisal Co., Ltd. and Morii Appraisal & Investment Consulting, Inc. in accordance with thearticles of incorporation of the Investment Corporation and the rules of The Investment Trusts Association,
Japan.
(Note 7) Investment ratio is the acquisition price of the applicable trust beneficial interest expressed as a percentageof the total amount of acquisition prices, rounded to one decimal place.
(Note 8) For Daiwa A Hamamatsucho, Sunline Building No. 7 and Shinjuku Maynds Tower, the figures are thosepertaining to the Investment Corporation’s ownership interest.

- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
5.2.2. Summary of Building and Leasing of Investment Real Estate
Structure
Rent revenue
Total
OccupancyandConstruction Leasable
Leasedduringnumber of
rate
RegionProperty namenumber of completion floor area floor area
current period
tenants(%)(thousand yen)
(Note 2)
(Note 3)(Note 4)
floors(Note 5)(Note 6)(Note 7)(Note 1)SRC
Daiwa Ginza
July 1963
8,273.05
6,632.08 1（24）80.1
329,343
B3 / 12F
SRC
Daiwa Ginza Annex
Aug. 1972
1（6）2,032.52
1,789.58
88.0
101,703
B3 / 8F
SRC
Daiwa Shibaura
Oct. 1987
9,626.35
9,512.02 1（54）98.8
233,066
B1 / 12FS / SRC
Daiwa Minami-Aoyama
Sept. 1990
1（6）2,715.54
2,715.54
100.0
127,423
B2 / 5F
SRC
Daiwa Sarugakucho (Note 8)
June 1985
1（1）－3,657.43
3,657.43
100.0
8F
SRC
Daiwa A Hamamatsucho
July 1993
3,671.25
3,671.25 1（12）100.0
142,078
B2 / 10FRC
Daiwa Jingumae
Dec. 1997
1（3）2,198.61
1,726.65
78.5
38,603
B1 / 4F
SRC / RC
Daiwa Shibadaimon
Nov. 1996
1（5）2,384.70
2,384.70
100.0
97,389B1 / 7F
S
Daiwa Misakicho (Note 8)
July 1996
1（1）－2,137.53
2,137.53
100.0
8F
SRC
Daiwa Shimbashi 510
Apr. 1974
1（9）2,803.80
2,803.80
100.0
91,194
B1 / 8FSRC
BPS Square (Note 8)
Jan. 1996
1（1）－2,852.97
2,852.97
100.0
10F
SRC
Daiwa Tsukiji
Jan. 1990
1（5）1,487.82
1,487.82
100.0
47,742
B1 / 7F
SRC
Daiwa Tsukiji 616
Mar. 1994
1（9）2,932.65
2,932.65
100.0
80,591B1 / 9FS
Five Central Daiwa Tsukishima
July 1996
1（3）8,426.85
8,426.85
100.0
284,2705F
Wards of
SRC
Tokyo
Nihombashi MS Building
Apr. 1993
1（9）2,920.19
2,920.19
100.0
81,582B2 / 7F
SRC
Daiwa Azabudai
Apr. 1984
1（9）1,705.44
1,705.44
100.0
65,474
B2 / 9F
SRC / S
Daiwa Shibuya SS
July 1977
2,980.92
2,980.92 1（11）100.0
134,613
B1 / 9F
SRC
Daiwa Nihombashi Honcho
Jan. 1964
7,419.75
5,460.20 1（10）73.5
113,178
B1 / 10F
SRC
Daiwa Ginza 1-chome
Jan. 1962
3,757.77
3,682.57 1（11）97.9
118,811
B2 / 11F
SRC
Daiwa Kyobashi
Oct. 1974
1（5）3,220.47
1,356.37
42.1
72,107
B1 / 8F
SRC
Sunline Building No. 7
Oct. 1987
1（7）2,405.15
1,917.75
79.7
71,939B2 / 9F
SRC
Daiwa Onarimon
Apr. 1973 11,615.37 11,615.37
1（9）
100.0
441,543
9F
S / SRC
Shinjuku Maynds Tower (Note 9)
Sept. 1995 45,544.04 45,539.31 1（37）99.9
2,346,390
B3 / 34FRC
SHIBUYA EDGE
Aug. 2006
1（7）2,480.65
2,480.65
100.0
111,206
B1 / 9F
SRC
Daiwa Kodenmacho
Mar. 1985
1（8）2,379.31
2,379.31
100.0
62,618
8F
S
Daiwa JimbochoMar. 1997
1（2）3,166.84
3,166.84
100.0
160,377
B1 / 8F
SRC
Daiwa Nishi-Shimbashi
July 1993
1（8）4,815.84
3,810.89
79.1
163,664
B1 / 10F
SRC
Mar. 1987
Daiwa Kudan
1（4）3,104.23
3,104.23
100.0
118,550
9F- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

Structure
Rent revenue
Total
OccupancyandConstruction Leasable
Leasedduringnumber of
rate
RegionProperty namenumber of completion floor area floor area
current period
tenants(%)(thousand yen)floors(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 1)
Daiwa Kayabacho Building (Note S/SRC
Apr.2010
1（1）－5,899.11
5,899.11
100.0
8)
B1/8F
S
Jimbocho PlaceFeb.2010
1（3）2,889.34
2,889.34
100.0
29,6149F
Total for Five Central Wards of Tokyo (30 properties)
161,505.49 153,639.36 30(280)95.1
5,998,588
S
Daiwa KinshichoJan. 1992
1（6）5,468.85
5,468.85
100.0
149,522
B1 / 5F
SRC / STokyo
Daiwa Higashi-Ikebukuro
June 1993
1（6）4,630.94
4,537.71
97.9
143,306
B1 / 9F
Metropolitan
S / SRC
Area
Benex S-3
Feb. 1994
7,470.28
7,146.81 1（23）95.6
158,773
B1 / 12F
SRC
Daiwa Shinagawa North
July 1991
6,551.33
6,551.33 1（13）100.0
158,658
B1 / 11F
Total for Tokyo Metropolitan Area (4 properties)
24,121.40 23,704.70 4（48）98.2
610,261
Major
SRC
Regional Daiwa Minami-Senba
Sept. 1986
1（6）5,719.54
5,249.30
91.7
106,209
B1 / 8F
CitiesTotal for Major Regional Cities (1 property)
1（6）5,719.54
5,249.30
91.7
106,209
Total (35 properties)
191,346.43 182,593.36 35(334)
95.4
6,715,058(Note 1) “Structure and number of floors” are the entries in the real estate registry of the building of the applicable
investment real estate property. “S” refers to steel-framed structure, “RC” refers to reinforced concrete
structure, “SRC” refers to steel-framed reinforced concrete structure, “B” refers to floors below ground and“F” refers to floors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment
real estate property.
(Note 3) “Leasable floor area” represents the floor area of the building of the applicable investment real estate
property that is leasable, not including the leasable area of the land (including level parking space), and is
the floor area indicated in the leasing contract, etc.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease or subleaseagreements executed with end-tenants as of May 31, 2010.
(Note 5) “Total number of tenants” when there is a master lease agreement is stated as “1” with the number of endtenants given in parentheses [ ]. When there is a tenant occupying multiple buildings, the concerned tenant
is counted and stated for each individual building.
(Note 6) “Occupancy rate” is the figure arrived at when leased floor area is divided by leasable floor area, rounded
down to one decimal place.
(Note 7) “Rent revenue during current period” is rent income, common area charges income, parking lot income andother income generated from the applicable investment real estate property during the 11th Fiscal Period,
rounded down to the nearest thousand yen.
(Note 8) Not disclosed due to tenant’s request.
(Note 9) Leasable floor area and leased floor area are calculated for the common ownership interest in the real estatein trust pertaining to trust beneficial interest held by the Investment Corporation, which corresponds to sixsevenths of the entire Property. Accordingly, leasable floor area and leased floor area are the floor areas
corresponding to six-sevenths of the entire building.

- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A
Schedule of Capital Expenditures
The following are the principal capital expenditures arising from renovation construction work, etc. currently
planned for existing portfolio properties. Please note that the expected construction amount includes portions
that are expensed as a separate account item of accounting costs.
Name of real estate properties(Location)

Renovation work for air
conditioning, power andcommon area.
Construction work for
replacement of disasterprevention equipment.

Daiwa Sarugakucho(Chihyoda-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

B

Scheduled
implementation
periodPurposeExpected construction amount (million yen)Amount paid
Total amount
Total amountduring current period already paid

From: Sep. 2011
To: Nov. 2011

350

–

–

From: Oct. 2011
To: Nov. 2011

42

–

–

Capital Expenditures during Period
The following summarizes the primary construction work that constitutes capital expenditures implemented
during the 11th Fiscal Period. Capital expenditures for the 11th Fiscal Period amounted to 540 million yen
and, when combined with the 187 million yen in repair expenses charged to 11th Fiscal Period expenses,
totals 727 million yen in construction work implemented.

Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Other

Purpose

PeriodConstruction work for replacement of cold-water coilin air-conditioning system on each floor

From: Mar. 2011
To: May. 2011
From: Mar. 2011
Updating security equipment.
To: May. 2011
Construction work for replacement of gondola rope and From: Apr. 2011
Communications equipment .
To: May. 2011
Construction work for air-condition equipment on 27
From: Jan. 2011
floors.
To: Feb. 2011
Construction work for replacement of common area’s
From: Jan. 2011
floor and wall on 27,30 and 33 floors.
To: Apr. 2011
From: Dec. 2010
To: May 2011

Total

Construction amount paid
(million yen)
249
105
13
10
10
151
540

C

Monies Set Aside 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 to be allocated to payment of such funds as future major repairs.
(Unit: thousand yen)
9th Fiscal Period
10th Fiscal Period
11th Fiscal Period[From: December 1,[From: June 1, 2010
[From: December 1,
Fiscal period
2009
To: November 30,
2010
To: May 31, 2010]
2010]
To: May 31, 2011]－
Balance of reserve at end of previous period
643
803
Amount of reserve in current period
643
386
601
－
Reversal of reserve in current period
226
36
Amount carried forward to next period
643
803
1,369

- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
5.2.4.

Summary of Estimated Price at End of Period (As of May 31, 2011)

Property nameSummary of Appraisal Report
Estimated price Direct capitalization method
DCF method
Price indicatedat end of periodby the costPrice
Terminal(million yen)approachPrice
Cap rate
Discount rate
(million
cap rate(Note 1)(million yen)(million yen)
(%)
(%)
yen)
(%)
(Note 2)

Daiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho
Daiwa A Hamamatsucho (Note 5)
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho
Daiwa Shimbashi 510

13,900
2,900
7,290
3,980
2,490
2,910
2,020
2,820
2,410
2,540

15,200
3,070
7,320
4,070
2,650
2,940
2,100
2,880
2,440
2,550

4.6
4.5
5.2
4.9
5.3
4.9
4.7
4.8
5.2
5.2

13,400
2,830
7,280
3,880
2,420
2,900
1,990
2,800
2,390
2,520

BPS Square

1,660

1,670

5.3

1,650

1,370
2,410
7,710
2,420
1,830
3,940
6,980
4,190
3,130
2,280
14,400106,000
4,060
1,920
3,820
5,680

1,390
2,440
7,770
2,460
1,870
4,110
7,680
4,550
3,400
2,390
15,500132,000
4,140
2,030
3,920
5,800

5.2
5.1
5.3
5.0
5.0
5.0
5.1
4.8
5.0
5.0
4.9
4.0
4.6
5.3
5.2
5.0

1,360
2,400
7,680
2,370
1,790
3,870
6,680
4,030
3,020
2,230
13,900121,000
3,970
1,870
3,780
5,630

3,990

3,920

5.0

4,030

5,980
3,660
3,570
3,570
3,410
5,770
2,920
249,930

6,080
3,710
3,620
3,580
3,580
6,350
2,940
282,120

4.6
4.6
5.5
5.3
5.8
5.2
5.5
-

5,930
3,640
3,550
3,560
3,340
5,520
2,890
262,100

Daiwa Tsukiji
Daiwa Tsukiji 616
Daiwa Tsukishima
Nihombashi MS Building
Daiwa Azabudai
Daiwa Shibuya SS
Daiwa Nihombashi Honcho
Daiwa Ginza 1-chome
Daiwa Kyobashi
Sunline Building No. 7 (Note 5)
Daiwa Onarimon
Shinjuku Maynds Tower (Note 6)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building
Jimbocho Place
Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
Benex S-3
Daiwa Shinagawa North
Daiwa Minami-Senba
Total

4.3
4.2
5.0
4.6
5.0
4.7
4.4
4.6
5.0
4.9
5.1（Note３）
5.3（Note４）
5.2
4.8
5.0
4.7
4.7
4.7
4.7
4.4
4.7
4.7
4.6
3.8
4.3
5.0
5.2
4.7
4.9（Note３）
5.0（Note４）
4.4
4.4
5.3
5.1
5.5
4.9
5.2
-

4.9
4.8
5.4
5.2
5.6
5.1
5.0
5.0
5.4
5.5

11,100
2,890
5,750
3,390
1,370
1,830
2,120
1,660
1,330
1,780

5.6

970

5.5
5.3
5.5
5.3
5.3
5.3
5.4
5.1
5.3
5.3
5.2
4.1
4.9
5.6
5.5
5.2

691
1,220
4,110
1,600
1,220
2,880
4,150
4,160
1,940
3,200
10,100102,000
3,190
991
2,640
3,500

5.3

2,000

4.8
4.8
5.7
5.5
6.1
5.5
5.8
-

4,720
3,290
2,160
2,150
3,430
4,690
1,910
206,132(Note 1) “Estimated price at end of period” is the price that has May 31, 2011 as the date of the price opinion statedin appraisal reports prepared by real estate appraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real
Estate Appraisal Co., Ltd., and Morii Appraisal & Investment Consulting, Inc. in accordance with thearticles of incorporation of the Investment Corporation and the rules of The Investment Trusts Association,
Japan.
(Note 2) “Price indicated by the cost approach” is rounded down to the nearest million yen.
(Note 3) The discount rate for the 1st year
(Note 4) The discount rate for the 2rd or subsequent years.
(Note 5) For Daiwa A Hamamatsucho and Sunline Building No. 7, the prices are those pertaining to the Investment
Corporation’s ownership interest.
(Note 6) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment
Corporation’s ownership interest, and the price indicated by the direct capitalization method, price indicatedby the DCF method and price indicated by the cost approach are the prices pertaining to the entire Property.

- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
5.2.5.

Status of Income (Loss), etc. of Individual Properties
The following table summarizes the status of income (loss), etc. for the 11th Fiscal Period (from December 1,
2010 to May 31, 2011) for each individual property as a list. Income (loss) information is presented inaccordance with the “Significant Accounting Policies” outlined earlier in this document.
RegionFive Central Wards of Tokyo

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

14,100

3,050

8,265

4,550

3,000

4.9

1.1

2.9

1.6

1.0

13,625

2,935

8,148

4,503

2,964

13,900

2,900

7,290

3,980

2,490

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

Leasing
information

24

6

54

6

1

Leasable floor area (m2)

8,273.05

2,032.52

9,626.35

2,715.54

3,657.43

Leased floor area (m2)

6,632.08

1,789.58

9,512.02

2,715.54

3,657.43

End of May 2009

94.9

96.6

90.3

80.6

100.0

End of Nov. 2009

85.4

86.4

88.5

100.0

100.0

End of May 2010

89.2

86.5

99.1

100.0

100.0

Occupancy rate (%)

End of Nov. 2010

91.1

86.5

97.1

100.0

100.0

End of May 2011

80.1

88.0

98.8

100.0

100.0

182

182

182

182

182

329,343

101,703

235,866

127,423－

329,343

101,703

233,066

127,423

－

－

－

2,799

－

－

160,995

37,827

141,346

35,685－

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

Daiwa
Shibaura

Daiwa
Sarugakucho(Note 5)

Daiwa
Ginza

Investment ratio (%)

Daiwa
Ginza Annex

Daiwa
MinamiAoyama

Property name22,372

5,745

20,356

5,305－

Utilities expenses

23,113

4,391

19,011

6,565－

Taxes and dues

24,913

8,206

20,293

11,388

－

522

125

507

184

－

Repair expenses

10,222

1,668

57,3901,161－

Depreciation (C)67,459Non-life insurance expenses

17,67323,788

11,077－

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

12,391

17

－

2

－

168,348

63,87594,51991,737－

235,808

81,549118,308

102,814100,254

Capital expenditures (F) (thousand yen)

4,371

1,140

17,379－－231,437

80,408100,928

102,814100,254

48.88

37.19

59.93

28.01

－

52,682

17,46840,706

23,594

6,067

128,190

34,770218,640

111,190

162,170

NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral

Yes

Yes

- 44 -

Yes

Yes

None

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

RegionFive Central Wards of Tokyo
Daiwa A
Hamamatsucho

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

Investment ratio (%)

1.0

1.0

0.9

0.8

0.7

2,822

2,759

2,466

2,247

2,145

2,910

2,020

2,820

2,410

2,540

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

Leasing
information

Daiwa
Shibadaimon

Daiwa
Shimbashi 510

12

3

5

1

9

Leasable floor area (m2)

3,671.25

2,198.61

2,384.70

2,137.53

2,803.80

Leased floor area (m2)

3,671.25

1,726.65

2,384.70

2,137.53

2,803.80

100.0

100.0

100.0

100.0

100.0

End of Nov. 2009

100.0

100.0

100.0

100.0

88.2

End of May 2010

100.0

0.0

100.0

100.0

88.2

Occupancy rate (%)
End of May 2009

End of Nov. 2010

100.0

78.5

100.0

100.0

100.0

End of May 2011

100.0

78.5

100.0

100.0

100.0

182

182

182

182

182

142,078

38,636103,226－

91,194142,078

38,603

97,389－91,194

－

33

5,837

－

－

70,441

25,55340,491－

23,102

10,461

3,952

10,325－

5,256

Utilities expenses

8,634

4,450

6,178

－

4,969

Taxes and dues

9,071

6,488

6,014

－

5,965

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

Daiwa
Jingumae

Daiwa
Misakicho(Note 5)

Property nameNon-life insurance expenses

233

91

141

－

139

Repair expenses

404

652

3,434

－

294

Depreciation (C)12,236

9,829

14,395－

6,416

29,400

89

－

－

60

71,636

13,08262,735－68,091

83,873

22,911

77,131

69,28374,508Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)

3,201

2,508

－

－

579

NCF [(E) – (F)] (thousand yen)

80,671

20,403

77,131

68,67373,929

49.58

66.14

39.23

－

25.33

18,23913,203

12,31010,965

11,298115,840

84,98098,390129,500

117,390

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral

Yes

Yes

- 45 -

Yes

Yes

Yes

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

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

Leasing
information

Income(loss)
information

Five Central Wards of TokyoBPS Square(Note 5)

Daiwa
Tsukiji

Daiwa
Tsukiji 616

Daiwa
Tsukishima

Nihombashi
MS Building

Jan. 2006

Jan. 2006

Mar. 2006

Mar. 2006

May 2006

1,560

1,240

2,440

7,840

2,520

0.5

0.4

0.8

2.7

0.9

1,401

1,224

2,340

7,346

2,501

1,660

1,370

2,410

7,710

2,420

1

5

9

3

9

Leasable floor area (m2)

2,852.97

1,487.82

2,932.65

8,426.85

2,920.19

Leased floor area (m2)

2,852.97

1,487.82

2,932.65

8,426.85

2,920.19

100.0

100.0

100.0

100.0

85.9

End of Nov. 2009

100.0

100.0

100.0

100.0

100.0

End of May 2010

100.0

85.1

100.0

100.0

100.0

Occupancy rate (%)
End of May 2009

End of Nov. 2010

100.0

85.1

87.0

100.0

100.0

End of May 2011

100.0

100.0

100.0

100.0

100.0

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

182

182

182

182

182

－

47,74280,591

284,270

81,582－47,74280,591

284,270

81,582Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses

－

－

－

－

－

－

19,97450,154

117,138

28,666

－

4,937

6,663

12,433

5,024

Utilities expenses

－

2,814

6,750

22,382

4,863

Taxes and dues

－

4,182

7,453

13,378

7,189

Non-life insurance expenses

－

69

155

374

157

Repair expenses

－

948

359

1,044

188

Depreciation (C)

－

7,022

28,772

67,526

11,241

－

－

－

－

－

－

27,76830,436167,131

52,916

49,11034,79059,209234,657

64,158Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)
NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral

－

1,045

2,979

9,896

2,898

49,11033,74456,229224,761

61,260

－

41.84

62.23

41.21

35.14

10,7898,257

14,26327,604

13,900114,750

49,77073,410331,450

139,000

None- 46 -

Yes

None

Yes

Yes

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

RegionProperty nameAcquisition date

Five Central Wards of Tokyo
Daiwa
Azabudai

Daiwa
Ginza 1-chome

Daiwa
Kyobashi

May 2006

July 2006

July 2006

July 2006

1,600

3,930

7,420

4,620

3,460

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

0.6

1.4

2.6

1.6

1.2

1,576

3,851

7,218

4,545

3,394

1,830

3,940

6,980

4,190

3,130

9

11

10

11

5

Leasable floor area (m2)

1,705.44

2,980.92

7,419.75

3,757.77

3,220.47

Leased floor area (m2)

1,705.44

2,980.92

5,460.20

3,682.57

1,356.37

97.2

93.0

100.0

90.7

100.0

Occupancy rate (%)
End of May 2009
End of Nov. 2009

87.9

91.3

84.9

78.9

100.0

End of May 2010

100.0

100.0

38.2

78.9

88.1

End of Nov. 2010

100.0

100.0

65.2

97.4

100.0

End of May 2011

100.0

100.0

73.5

97.9

42.1

182

182

182

182

182

65,474

134,613113,178

118,811

72,10765,474

134,613113,178

118,811

72,107

－

－

－

－

－

19,71541,95765,34546,50237,530

3,506

6,296

10,108

6,660

7,447

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

Daiwa
Nihombashi
HonchoMay 2006

Acquisition price (million yen)

Leasing
information

Daiwa Shibuya
SS

Utilities expenses

2,964

8,453

11,816

6,777

5,452

Taxes and dues

5,280

11,007

12,739

7,839

6,994

Non-life insurance expenses

102

169

355

173

164

Repair expenses

508

554

1,808

6,533

618

Depreciation (C)7,353

15,47728,516

18,442

16,853

－

－

－

74

－

45,75892,65547,83372,30934,576

53,112

108,133

76,35090,75251,430

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

7,217

12,520

543

1,339

1,865

NCF [(E) – (F)] (thousand yen)

45,894

95,61275,80689,412

49,565

30.11

31.17

57.74

39.14

52.05

10,384

21,28023,84916,771

14,25567,880113,840

116,900

191,730

61,450

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral

Yes

Yes

- 47 -

Yes

Yes

Yes

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

RegionFive Central Wards of Tokyo
Shinjuku
Maynds Tower(Note 4)

Property nameSunlineBuilding No. 7

Acquisition date

Oct. 2006

Dec. 2006

Acquisition price (million yen)

2,680

13,860July and Nov.
2007
133,800

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

0.9

4.8

2,651

Daiwa
Kodenmacho
Aug. 2007

5,900

2,460

46.6

2.1

0.9

13,707132,218

5,851

2,454

2,280

14,400106,000

4,060

1,920

7

9

37

7

8

Leasable floor area (m )2,405.15

11,615.37

45,544.04

2,480.65

2,379.31

Leased floor area (m2)

1,917.75

11,615.37

45,539.31

2,480.65

2,379.31

End of May 2009

97.2

97.3

99.9

100.0

100.0

End of Nov. 2009

76.9

86.6

99.1

100.0

100.0

End of May 2010

79.7

100.0

78.1

100.0

86.8

End of Nov. 2010

80.5

100.0

99.9

100.0

100.0

End of May 2011

79.7

100.0

99.9

100.0

100.0

182

182

182

182

182

72,998441,543

2,348,714

121,564

62,61871,939441,543

2,346,390

111,206

62,618

1,059

－

2,323

10,357－50,176

142,886

1,239,203

43,374

21,297

Occupancy rate (%)

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

SHIBUYAEDGE
July 2007

2

Leasing
information

Daiwa
Onarimon

5,787

16,679152,000

9,559

4,024

Utilities expenses

4,999

19,522

274,128

5,678

4,190

Taxes and dues

14,64336,722

265,758

7,210

3,848

158

527

4,544

132

95

Repair expenses

15,22340,062

19,221

4,149

165

Depreciation (C)9,363

29,371

515,729

16,642

8,150

Non-life insurance expenses

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

－

－

7,820

－

822

22,822

298,657

1,109,510

78,19041,32032,186

328,029

1,625,239

94,83249,471

Capital expenditures (F) (thousand yen)

4,364

904

440,230－

559

NCF [(E) – (F)] (thousand yen)

27,821

327,124

1,185,009

94,832

48,912

68.74

32.36

52.76

35.68

34.01

28,43773,313527,097

14,8897,649

68,810236,800

2,502,610

48,29070,970

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateralNone- 48 -Yes

Yes (Note4)

Yes

None

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

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

Leasing
information

Mar. 2010

Aug. 2010

Sep. 2010

Daiwa
Kayabacho
Building(Note 5)Mar. 2011

4,150

5,000

4,000

5,600

Daiwa
Jimbocho

Daiwa NishiDaiwa Kudan
Shimbashi

JimbochoPlace
Mar. 2011
3,550

1.4

1.7

1.4

1.9

1.2

4,162

5,116

4,015

5,625

3,630

3,820

5,680

3,990

5,980

3,660

2

8

4

1

3

Leasable floor area (m2)

3,166.84

4,815.84

3,104.23

5,899.11

2,889.34

Leased floor area (m2)

3,166.84

3,810.89

3,104.23

5,899.11

2,889.34

－

－

－

－

－

End of Nov. 2008

－

－

－

－

－

End of May 2009

100.0

－

－

－

－

End of Nov. 2009

100.0

85.5

90.7

－

－

End of May 2010

100.0

79.1

100.0

100.0

100.0

182

182

182

68

64

160,377

184,982

118,550－

29,614160,377

163,664

118,550－

29,614－

21,317－－－44,07988,44737,789－12,685

7,636

19,229

6,550

－

2,246

10,244

9,717

7,068

－

507

－

77

8

－

1

Occupancy rate (%)
End of May 2008

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

Five Central Wards of Tokyo

Utilities expenses
Taxes and dues
Non-life insurance expenses

185

308

156

－

55

Repair expenses

2,774

12,44480－

40

Depreciation (C)22,99946,66723,926

－

9,808

238

3

0

－

27

116,298

96,53480,760－16,929139,297

143,202104,686

58,587

26,737

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)
NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)
Status of pledge as collateral239

11,446100－－

139,058

131,756

104,586

58,587

26,737

27.48

47.81

31.88

－

42.84

22,42533,597

17,928－－126,090

187,140

141,450

38,44026,390None- 49 -

None

None

None

None

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period

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

Leasing
information

Daiwa
HigashiIkebukuro

Daiwa
Kinshicho

Benex S-3

Daiwa
Shinagawa
North

Daiwa
MinamiSenba

Oct. 2005

Oct. 2005

May 2006

July 2007

Aug. 2007

3,653

2,958

4,950

7,710

4,810

1.3

1.0

1.7

2.7

1.7

3,495

2,862

4,501

7,539

4,907

3,570

3,570

3,410

5,770

2,920

6

6

23

13

6

Leasable floor area (m2)

5,468.85

4,630.94

7,470.28

6,551.33

5,719.54

Leased floor area (m2)

5,468.85

4,537.71

7,146.81

6,551.33

5,249.30

100.0

100.0

100.0

91.8

100.0

End of Nov. 2008

100.0

100.0

67.2

100.0

63.2

End of May 2009

100.0

100.0

80.4

90.8

63.2

End of Nov. 2009

100.0

97.9

100.0

95.2

91.7

End of May 2010

100.0

97.9

95.6

100.0

91.7

182

182

182

182

182

149,522

143,306

158,773

158,658

106,209

149,522

143,306

158,773

158,658

106,209

－

－

－

－

－

69,70060,503116,339

85,86075,691

15,09011,742

17,483

16,796

14,464

Utilities expenses

10,67615,013

16,274

13,527

9,399

Taxes and dues

13,046

9,678

24,49319,365

17,430Occupancy rate (%)
End of May 2008

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

Major
Regional
CitiesTokyo Metropolitan Area

Non-life insurance expenses

308

297

463

416

278

Repair expenses

2,179

247

1,151

879

129

Depreciation (C)28,40023,52456,47334,86633,990

－

－

－

9

－

79,82182,80242,434

72,79730,517108,222

106,326

98,907

107,664

64,507

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)
NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
for fiscal 2011 (thousand yen)
Reference
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral

651

658

5,207

3,686

1,985

107,570

105,668

93,700103,978

62,522

46.62

42.22

73.27

54.12

71.27

25,551

19,21332,63838,361

23,245

285,600

141,210

402,880

191,640

107,090

Yes

Yes

None

Yes

Yes

- 50 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period(Note 1) Number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses thought
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 thought 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) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is common
ownership interest corresponding to six-sevenths of the entire Property. Of this, the common ownershipinterest corresponding to four-sevenths of the entire Property is pledged as collateral.
(Note 5) Not disclosed due to tenant’s request.

- 51 -

Daiwa Office Investment Corporation (8976) Financial Report for the 11th Fiscal Period
5.3. Affiliated Juridical Persons of the Investment Corporation

Asset Manager
General Administrator
related to the operationof the administrative
instruments
Daiwa Real Estate AssetManagement Co., Ltd.
(Note 2)
(4)

(1)

Investment Corporation(2)

Daiwa Office
Investment Corporation
General Meeting ofUnitholders
Executive Director:
Kazuo Otaka

The Sumitomo Trust andBanking Co., Ltd.
(Note 1)
(3)

Administrator ofUnitholders Register
The Chuo Mitsui Trust andBanking Company, Limited

Supervisory Director:
Takayuki Hiraishi
Supervisory Director:
Hiroshi Sakuma

General Administrator
Asset Custodian(5)

General Administrator(Investment Corporation Bonds)

Supporting Company

Accounting Auditor

Daiwa Securities
Group Inc.

KPMG AZSA LLC

Sumitomo Mitsui
Banking Corporation(Note 1) Daiwa Office Investment Corporation changed the general administrative contract on July 11, 2011. And
the Investment Corporation has converted the general administrator related to the operation of theadministrative instruments from The Sumitomo Trust and Banking Co., Ltd. to Daiwa Real Estate AssetManagement Co., Ltd. In addition the Investment Corporation also changed partial asset custody agreementon the same day.
(Note 2) The Investment Corporation has contracted the general administrative agreement related to the operation of
the administrative instruments with Daiwa Real Estate Asset Management Co., Ltd. on July 11, 2011. The
Investment Corporation has changed the general administrator related to the operation of the administrative
instruments to Daiwa Real Estate Asset Management Co., Ltd. on July 11, 2011.
(1) Asset management contract / General administrative contract related(2) General administrative affairs contract / Asset custodian contract(3) Unitholder register, etc. management contract / Special account management contract(4) Sponsor support agreement(5) Fiscal agency agreement- 52 -