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 13th Fiscal Period
July 13, 2012
Daiwa Office Investment Corporation
Stock Exchange Listing: TSE
8976
URL: http://www.daiwa-office.co.jp
Representative:
Kazuo Otaka, Executive Director
Name of Asset Manager: Daiwa Real Estate Asset Management Co. Ltd.
Representative:
Akira Yamanouchi, President and Representative Director
Inquiries to:
Yuji Shinotsuka, Vice President and Representative
TEL: +81-3-6215-9649
Director and Head of Finance Department
Name of REIT Issuer:
Stock Code No.:

Scheduled date of submission of periodic securities report (yuka shoken hokokusho): August 24, 2012
Scheduled date of start of distribution payments:
August 3, 2012
Preparing presentation material: Yes
Hold a financial brief meeting: Yes (for institutional investors and analysts)[Amounts are rounded down to the nearest million yen, except for per unit figures]

1. Status of Management and Assets for the 13th Fiscal Period
13th Fiscal Period: Fiscal period ended May 2012 (from December 1, 2011 to May 31, 2012)
12th Fiscal Period: Fiscal period ended November 2011 (from June 1, 2011 to November 30, 2011)(1) Management[% figures show the period-over-period increase (decrease)]

13th
Period12th
PeriodOperating revenue

Operating income

Ordinary income

Net income¥7,431 million(2.3%) ¥3,090 million(6.8%) ¥2,022 million

14.4% ¥2,021 million

14.4%¥7,605 million

12.5% ¥3,317 million

17.5% ¥1,767 million

11.4% ¥1,766 million

21.6%

Net income
per unit

13th
Period12th
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥5,106

1.0%

0.6%

27.2%

¥4,464

0.9%

0.6%

23.2%

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

13th
Period12th
PeriodTotal
distribution
amountDistribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payoutDistribution
amount to
net assets¥5,107¥2,021 million¥0¥– million

100.0%

1.0%¥4,464¥1,766 million¥0¥– million

100.0%

0.9%(3) Financial Position
13th
Period12th
PeriodUnitholders’ equity tototal assets

Net assets
per unit

Total assets

Net assets¥325,315 million¥200,800 million

61.7%¥507,330¥323,217 million¥200,548 million

62.0%¥506,692-1-

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period(4) Cash Flows

13th
Period12th
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¥3,820 million(¥2,962 million)(¥292 million)¥16,801 million¥3,264 million(¥23,779 million)¥22,214 million¥16,235 million

2. Management Status Forecasts for the 14th Fiscal Period
14th Fiscal Period: Fiscal period ending November 2012 (from June 1, 2012 to November 30, 2012)[% figures show the period-over-period increase (decrease)]

Operating revenue

14th
Period ¥7,413 million

Operating income(0.2%) ¥2,973 million(3.8%) ¥2,179 million

Distribution amount per unit
14th
Period(Reference)

Ordinary income(excluding distribution amount in excess of earnings)

7.7%

Net income¥2,177 million

7.7%

Distribution amount in excess of earnings per unit

¥5,500¥0

Estimated net income per unit for 14th Fiscal Period: ¥5,500

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies due to amended accounting standards: None(ii) Changes other than (i):None(iii) Changes in accounting estimates:None(iv) Retrospective restatement:
None(2) Number of Investment Units Issued and Outstanding(i) Number of investment units issued and outstanding at end of period (including treasury units):
13th Fiscal Period: 395,798 units
12th Fiscal Period: 395,798 units(ii) Number of treasury units at end of period:
13th Fiscal Period:– units
12th Fiscal Period:– units(Note) Please refer to “Notes on Per Unit Information” on page 26 for the number of investment units used as the basis forcalculating 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 14th Fiscal Period
and 15th Fiscal Period .

-2-

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
Please refer to“5. Reference Information 5.3.Affiliated Juridical Persons of the Investment Corporation”on page47.

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 23, 2012).
The Investment Corporation will propose the amendments to the articles of incorporation including “Targets andPolicy of Asset Management” in the 7th Unitholder’s Meeting held on August 20, 2012. And the Asset Manager
decided to amend the asset management guideline of the internal regulation on July 13, 2012 (effective date:August 21, 2012).
Concerning the partial amendments to article of incorporation, please refer to the press release “Noticeconcerning Amendments to Articles of Incorporation and Election of Directors, etc.” announced on July 13, 2012.
Additionally concerning change of the asset management guideline, please refer to the press release “Noticeconcerning Partial Amendments of Internal Rule (the Asset Management Guideline) of Asset Manager”
announced on July 13, 2012 and the extraordinary report filed on July 13, 2012.
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. (former name K.K. daVinci Select,hereinafter called “Asset Manager”) as the organizer. After its establishment, the Investment Corporation
implemented an additional issuance of investment units through a public offering (99,600 units) on October18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE) Real Estate Investment Trust Section(stock code: 8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price),
subsequent activities, such as additional acquisition of properties and replacement of portfolio properties,
resulted in the assets under management amounting to 313,256 million yen as ended May, 2012.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets
based on a clear portfolio development policy of specializing in investment in office buildings, with aparticular focus on investment in a total floor area of more than about 2,000m2 situated in downtown Tokyo,
as well as through dedicated efforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performance(a) Investment Environment
The Japanese economy during the fiscal period under review was on a modest recovery, partly due to anincrease in demand for reconstruction following the Great East Japan Earthquake, despite concerns over thesovereign risk in Europe.
In terms of the office leasing market, the gap between supply and demand expanded due to construction
completion of development projects primarily in central Tokyo from 2011 to 2012. Vacancy rates remained
high trend and new advertised rents continued to remain at low levels due to uncertainty of economy
forecasting.
The office transaction market saw an increase in the purchase demand by real estate companies and funds(including REITs) as a result of the easing lending attitudes of financial institutions, though there had beensuspension of transactions immediately following the Great East Japan Earthquake. Additionally, from the
supply shortage of prime properties, the market can be said to be gradually improved.
(b) Management Performance
In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sales ofproperties) over the medium to long term, the Investment Corporation worked on “external growth,” which-3-Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
aims to boost revenue through acquiring and selling properties, and “internal growth,” which aims tomaximize income generating from existing properties.
Concerning external growth, the Investment Corporation acquired the land ownership (site) of “Daiwa
Sarugakucho” (acquisition price: 190 million yen) in March 30, 2012 and “Nihonbashi Hongokucho Tosei
Building” (acquisition price: 1,721 million yen) in May 11, 2012.
As a result, the Investment Corporation’s assets under management as of the end of the 13th Fiscal Period(May 31, 2012) totaled 37 properties, the sum total of acquisition prices of which amounted to 313,256
million yen.
Concerning internal growth, in spite of the severe office leasing market conditions and occurrence oftenant leaving in part, the Investment Corporation conducted through raising relation with tenants byimproving tenants’ satisfaction and strengthening collaboration with leasing brokers and property managers.
As a result, the occupancy rate at the end of the 13th Fiscal Period maintained to 94.3%.
C. Overview of Capital Procurementa. Situation of Interest-bearing Liabilities
On May 11,2012, the Investment Corporation borrowed 1,700 million yen from Development Bank of Japan
Inc. to purchase acquisition properties.
On May 21, 2012, the Investment Corporation borrowed 195,000 million yen in total from Development
Bank of Japan, Inc., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Mizuho
Trust and Banking Co., Ltd., Shinsei Bank, Ltd., Mizuho Corporate Bank, Limited and The Bank of
Yokohama, Ltd. to refinance the borrowing 196,000 million yen from Aozora Bank, Ltd. on May 21, 2009.
Moreover, the balance of repayments was paid using cash on hand.
Contractual repayments of 41.25 million yen in total were made to Development Bank of Japan Inc. and The
Kagawa Bank, Ltd. on February 29, 2012. Moreover, contractual repayments of 84.375 million yen in total
were made to Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Development
Bank of Japan Inc., Taiyo Life Insurance Company and The Gunma Bank, Ltd. on May 31, 2012.
As a result, the balance of interest-bearing liabilities outstanding as at the end of the 13th Fiscal Period stoodat 111,391.25 million yen (long-term loans payable: 102,891.25 million yen; investment corporation bonds:
8,500 million yen). Furthermore, of long-term loans payable, the balance of the current portion ofinterest-bearing liabilities outstanding stood at 22,291.25 million yen (including 41.25 million yen incontractual repayments).
In 13th Fiscal Period, the Investment Corporation agreed to enter into the interest-rate swap contracts tooffset the risks of the future interest payments for the total of 54,900 million yen borrowings to hedge
interest rate risk.
Borrowing List in 13th Period
LenderDevelopment Bank of Japan, Inc.
Development Bank of Japan, Inc.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust and Banking Co.,Ltd.
Shinsei Bank, Ltd.
Mizuho Corporate Bank, Limited
The Bank of Yokohama,Ltd.

Amount(million yen)
1,700

Drawdown Date

Repayment Date

2012/5/11

2017/5/10

Borrowing
Period5 years

6,500
4,000

2012/5/21
2012/5/21

2017/5/22
2017/5/31

5 years
5 years

3,000

2012/5/21

2017/5/31

5 years

1,500

2012/5/21

2017/5/31

5 years

2,000
2,000
500

2012/5/21
2012/5/21
2012/5/21

2016/5/31
2015/5/29
2015/5/29

4 years
3 years
3 years-4-

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

Borrowing Amount by each financial institution as of May 31, 2012
Amount in the 13th
LenderRate (%)
Period (million yen)
Sumitomo Mitsui Banking Corporation
24,38723.70
Development Bank of Japan, Inc.
13,787
13.40
Sumitomo Mitsui Trust Bank, Limited
13,383
13.01
Shinsei Bank, Ltd.
8,000
7.78
Risona Bank Ltd.
7,000
6.80
Mizuho Corporate Bank, Limited
6,900
6.71
Aozora Bank, Ltd.
5,000
4.86
Kansai Urban Banking Corporation
5,000
4.86
Mizuho Trust and Banking Co., Ltd.
4,500
4.37
Mitsubishi UFJ Trust and Banking Corporation
3,000
2.92
The Bank of Fukuoka, Ltd.
3,000
2.92
ORIX Bank Corporation
2,500
2.43
The Gunma Bank, Ltd.
1,981
1.93
The Shizuoka Bank, Ltd.
1,000
0.97
985
0.96
The 77 Bank，Ltd.
The Kagawa Bank Ltd.
985
0.96
Taiyo Life Insurance Co., Ltd.
981
0.95
The Bank of Yokohama,Ltd.
500
0.49
Total
102,891
100.00(Note 1) Ratio is rounded to two decimal places.
(Note 2) Sumitomo Mitsui Banking Corporation, Chuo Mitsui Trust and Banking Co., Ltd. and Chuo Mitsui
Asset Trust and Banking Company, Limited merged and became Sumitomo Mitsui Trust Bank,
Limited on April 1, 2012,.
b. Rating Information (as of May 31, 2012)
Credit Rating Agency
RatingR&I
A

Outlook
Stablec. Shelf Registration
The Investment Corporation filed the shelf registration on April 3, 2012 as below.
Investment Corporation Bonds
Planned Issue Amount
100 billion yen
Planned Issue Period
From April 11, 2012 to April 10, 2014
Use of funds
Funds for acquisition of specified assets, repayment of loans, redemption of
investment corporation bonds(including short-term 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 performancefor the 13th Fiscal Period of 7,431 million yen in operating revenue, 3,090 million yen in operating income,
2,022 million yen in ordinary income, 2,021 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 5,107 yen.

-5-

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period(2) Outlook for the Next Fiscal Period
A. Investment Environment
Going forward, the Japanese economy is expected to grow, as production activities and consumption will
recover from the drop caused by the Great East Japan Earthquake, boosted by the increased demand
accompanying the post-quake reconstruction efforts.
On the other hand, there are some risks in Japanese economy because of the government debt serious
problems in Europe, the steep appreciation of the yen and the power supply restrictions.
Under such an outlook, the office leasing market seems to maintain an excess of supply because
construction completion of development projects primarily in central Tokyo continues until 2012.
In the office transaction market, acquisition demand by real estate companies and funds (including REITs) is
expected to remain solid, given such factors as the easing of lending attitudes of financial institutions.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Under office leasing market conditions described above, the tenant side is also expected to become more
selective with properties. Consequently, the Investment Corporation will carry out operational
management under the following policy in an aim to enhance the competitiveness of existing properties
and thereby increase the long-term EPS over the medium to long term.
(i) Maintain and raise occupancy rates
Strive to reduce vacancy risks through improving the quality of buildings, equipment andmanagement system toward existing tenants. And strive to maintain and raise occupancy rates
through the provision of more comfortable service than competitor by participating in the market
aggressively for new tenants.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium to long term through further strengthening a good
relationship with existing tenants, as well as proactively tapping the needs of new tenants bydiscerning the market environment.
(iii) Lower operational management costs
Strive to do 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
Based on various growth strategies, the Investment Corporation will concentrate its investment in a total
floor area of more than about 2,000m2 by watching the property market and maintaining a balance with thefinancing situation.
In principal, the Investment Corporation will invest in properties around Tokyo, but will also look into
the investments in the competitive properties in the areas other than Tokyo from a viewpoint ofterritorially-distributed investments.
As pipeline support, in addition to expanding its own information-sourcing channels, the Investment
Corporation will 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 13th Fiscal Period, the Investment Corporation acquired the land ownership (site) of “Daiwa
Sarugakucho” and “Nihonbashi Hongokucho Tosei Building”, which are situated in the five central wardsof Tokyo. The Investment Corporation believes that acquisition of these properties will contribute tofurther stabilization and enhancement of the portfolio, and the Investment Corporation strives to acquire
properties in line with the investment strategy described above.

-6-

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Periodc. 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 of acquisition price as aprinciple.
(ii) Diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing
liabilities that shall become due during any single fiscal period as a principle.
(iii) Aim to have long-term loans account for at least 70% of total loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.
(v) Pursuant to its fund management rules, maintain stability in its financial standing by managing
necessary funds, such as the amount distributions paid, separately from working capital.
C. Material Fact after the Announcement
Not applicable.
D.

Outlook for Management Status
The Investment Corporation forecasts the following management status for the 14th Fiscal Period (fiscal
period ending November 2012 (from June 1, 2012 to November 30, 2012)). For the assumptions underlying
the management status forecasts, please refer to the “Assumptions for the Management Status Forecasts forthe 14th Fiscal Period and 15th Fiscal Period.
(Decrease in operating revenue)
Decrease in Rent revenue –due to the movig out of the main tenant of Daiwa Jimbocho and Daiwa Kudan
etc.
(Decrease in non -operating expenses)
Improvement of debt cost by refinancing 196,000 million yen during the 13th Fiscal Period.
Operating revenue
Operating income
Ordinary income
Net income
Distribution amount per unit
Distribution amount in excess of earnings per unit

7,413 million yen
2,973 million yen
2,179 million yen
2,177 million yen
5,500 yen
0 yen

In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 14th Fiscal
Period and 15th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following
management status for the 15th Fiscal Period (fiscal period ending May 2013 (from December 1, 2012 to
May 31, 2013)).
Operating revenue
Operating income
Ordinary income
Net income
Distribution amount per unit
Distribution amount in excess of earnings per unit

7,080 million yen
2,923 million yen
2,179 million yen
2,177 million yen
5,500 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,
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.

-7-

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

Assumptions for the Management Status Forecasts for the 14th Fiscal Period and 15th Fiscal Period
Item
Assumptions• 14th Fiscal Period:
Assets under management are assumed to be the 37 properties as of May 31, 2012.
Assets under• 15th Fiscal Period:
management
Assets under management are assumed to be the 37 properties.
• The actual number of properties may vary due to changes in the assets under management.
Operatingrevenue

OperatingexpensesNon-operating
expenses

Interest-bearing
liabilities

Number ofinvestment units
issued andoutstanding
Distribution amount
per unit
Distribution amount• Rent revenue from existing properties is calculated based on historical data and taking into
account variable factors.
• It is assumed that there is no gain (loss) on sales of real estate properties.
• Expenses related to rent business, which constitute a major component of operating
expenses, are calculated based on historical data and taking into account variable factors.
• Repair expenses for buildings are recorded as expenses in the amount expected to benecessary in the respective fiscal period based on the medium to long term repair planestablished by the Asset Manager.
• Operating income from property leasing (excluding gain on sales of real estate properties)
after deducting expenses related to rent business (including depreciation) is expected to be
3,794 million yen in the 14th Fiscal Period and 3,717 million yen in the 15th Fiscal Period.
• Outsourcing expenses are expected to be 560 million yen in the 14th Fiscal Period and 548
million yen in the 15th Fiscal Period.
• Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 667 million
yen in the 14th Fiscal Period and 700 million yen in the 15th Fiscal Period.
• Depreciation is expected to be 1,304 million yen in the 14th Fiscal Period and 1,229 million
yen in the 15th Fiscal Period.
• Non-operating expenses in the 14th Fiscal Period are expected to be 794 million yen, of
which the interest expenses and borrowing related expenses are expected to be 781 million
yen.
• Non-operating expenses in the 15th Fiscal Period are expected to be 744 million yen, of
which the interest expenses and borrowing related expenses are expected to be 732 million
yen.
• The total amount of interest-bearing liabilities is assumed to be 112,081.25 million yen at theend of the 14th Fiscal Period and 112,100 million yen at the end of the 15th Fiscal Period.
• In the 14th Fiscal Period, 11,843.75 million yen that is to become due for repayment (due by
September 18, 2012) will be refinanced in the entire amount of borrowing on the contract
12,500 million yen. 3,925 million yen that is to become due for repayment (due by
November 30, 2012) will be refinanced in the entire amount of borrowing on the contract
4,000 million yen. And 41.25 million yen that is to become due for contractual repayment(due by August 31, 2012) will be repaid using cash reserves.
• In the 15th Fiscal Period, 1,000 million yen that is to become due for repayment (due by
January 10, 2013) will be refinanced in the entire amount. 5,481.25 million yen that is tobecome due for repayment (due by February 28, 2013) will be refinanced in the entire
amount of borrowing on the contract 5,500 million yen.
• 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, 2013.
• 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.
• At present, there is no plan to make any distribution in excess of earnings (distribution-8-

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
Itemin excess of earnings
per unit
Other

Assumptions
amount in excess of earnings per unit).
• It is assumed that there are no changes to laws and ordinances, the tax system, accounting
standards, listing regulations, the rules of The Investment Trusts Association, Japan, etc. thatwill 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 23, 2012.

-9-

Daiwa Office Investment Corporation (8976) Financial Report for the 13th 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
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Other
Accumulated depreciation
Other, net
Land
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
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits in trust
Long-term prepaid expenses
Deferred tax assets- 10 -

12th Fiscal Period(Unit: thousand yen)
13th Fiscal Period[As of November 30, 2011][As of May 31, 2012]

10,818,425
5,416,757
185,288
84,177
391,08920
70,241
16,966,000

11,504,131
5,296,967
284,801－
244,403
16
101,782
17,432,103

－
－
－
－
－
－
4,058
(2,337)
1,721
3,456(3,456)－－
67,274,713(11,821,542)
55,453,170
828,424(91,316)
737,108
781,924(285,121)
496,802
71,940(27,630)
44,3106,302(6,302)－
244,177,050
16,148300,926,312

3,045,266(1,105,180)
1,940,086
6,697(1,446)
5,251
7,299(4,457)2,841
3,741(3,741)－
12,302,226
65,669,119(12,038,204)
53,630,915
823,429(101,101)
722,328
793,278(313,457)
479,820
76,938(31,765)
45,173
6,017(6,017)–
235,483,406
22,721
304,634,771

*1

1,285
－
4,970,290
5,530
4,977,107

2,013
2,407,101
306,884
4,793
2,720,792

113,684
190,532－

113,684
368,076
1,172

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
Derivatives assets
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total Valuation and translation adjustments
Total net assets
Total liabilities and net assets

9,958
10,020502,912
307,858,476

33,91833,918323,217,575

25,33525,335
325,315,915

12th Fiscal Period(Unit: thousand yen)
13th Fiscal Period[As of November 30, 2011][As of May 31, 2012]*2- 11 -－
10,020314,236306,217,656

546,670
35,535,625
309,641987
9,217
862,004
173,277
37,437,424

911,636
22,291,250
261,881696
163,146876,926
279,867
24,785,405

8,500,000
65,881,250
6,250,338
4,598,914－
1,621
85,232,125
122,669,549

8,500,000
80,600,000
6,024,873
4,592,006
13,163－99,730,042
124,515,448

198,780,951

198,780,951

1,767,074
1,767,074
200,548,026

2,021,548
2,021,548
200,802,499－－
200,548,026
323,217,575(2,032)(2,032)200,800,467
325,315,915*2

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

3.2. Statements of Income

12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]

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
Subsidy
Total extraordinary income
Extraordinary expenses
Loss on reduction of noncurrent assets
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)- 12 -(Unit: thousand yen)
13th Fiscal Period[From: December 1, 2011
To: May 31, 2012]*1*1

7,550,598
55,181
7,605,780*1*1

7,338,152
93,3607,431,513*1

3,471,700
607,648
15,84566,47840,4605,400
81,227
4,288,759
3,317,020*1

3,533,104
605,808
16,14757,64630,302
5,400
93,062
4,341,471
3,090,042

711
5,491
5,269
11,473

2,014
6,824
3,494
12,333

761,640
96,950692,923
9,080
1,560,594
1,767,898

703,954
96,326
266,813
12,983
1,080,077
2,022,298－－

32,89832,898－－1,767,898
1,018
1
1,020
1,766,878
195
1,767,074

32,89832,8982,022,298
979
3
982
2,021,315
232
2,021,548

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

3.3.Statements of Unitholders’ Equity
12th Fiscal Period
Unitholders’ equity
Unitholders’ capital
Balance at beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at end of current period
Surplus
Unappropriated retained earnings (undisposed loss)
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total Surplus
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Total unitholders’ equity
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at end of current period
Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Total Valuation and translation adjustments
Balance at beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Total net assets
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period- 13 -(Unit: thousand yen)
13th Fiscal Period[From: June 1, 2011
To: November 30, 2011][From: December 1, 2011
To: May 31, 2012]

198,780,951

198,780,951*1–
198,780,951*1–
198,780,951

1,453,170

1,767,074(1,452,974)
1,766,878
313,904
1,767,074(1,766,842)
2,021,315
254,473
2,021,548

1,453,170

1,767,074(1,452,974)
1,766,878
313,904
1,767,074(1,766,842)
2,021,315
254,473
2,021,548

200,234,121

200,548,026(1,452,974)
1,766,878
313,904
200,548,026(1,766,842)
2,021,315
254,473
200,802,499

–

–

–
–
–

(2,032)(2,032)(2,032)

–

–

–
–
–

(2,032)(2,032)(2,032)200,234,121

200,548,026(1,452,974)
1,766,878–
313,904
200,548,026(1,766,842)
2,021,315(2,032)
252,441
200,800,467

Daiwa Office Investment Corporation (8976) Financial Report for the 13th 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 amount12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]
Amount (yen)1,767,074,730
1,766,842,272[4,464]
232,458
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
1,766,842,272 yen. Furthermore,
the Investment Corporation shallnot distribute cash in excess ofearnings as stipulated in Article
32, Item 2 of its articles ofincorporation.

- 14 -

13th Fiscal Period[From: December 1, 2011
To: May 31, 2012]
Amount (yen)2,021,548,364
2,021,340,386[5,107]
207,978
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of
the amount equivalent to 90% of
its distributable earnings as
defined in Article 67-15 of the Act
on Special Measures Concerning
Taxation” but no more than theamount of earnings as specified in
Article 32, Item 1 of theInvestment Corporation’s articles
of incorporation, the Investment
Corporation decided the
distributions from earnings that itshall pay out shall be themaximum value of the integral
multiple of the number of units
issued and outstanding (395,798
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, theInvestment Corporation declared a
distribution amount of
2,021,340,386 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 13th Fiscal Period

3.5. Statements of Cash Flows

12th Fiscal Period
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Interest income
Interest expenses
Subsidy
Loss on reduction of noncurrent assets
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
Proceeds from subsidy
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -(Unit: thousand yen)
13th Fiscal Period[From: June 1, 2011
To: November 30, 2011][From: December 1, 2011
To: May 31, 2012]

1,767,898
1,349,080
8,583
(711)
858,591––(63,721)(10,619)(84,177)
235,361(114,248)
64,485(34,609)145,986(97,887)(2,452)
91,642
4,113,201
711(848,350)(880)
3,264,682

2,022,298
1,368,583
8,583(2,014)800,281(32,898)
32,898－(99,512)
84,177
146,685274,711(48,356)
153,929
14,921(177,544)(1,621)80,3004,625,421
2,014(805,821)(1,289)3,820,325–(24,671,359)(178)
362,637
1,210,383(680,080)(443)–(23,779,041)(337,503)(2,299,787)(125,534)
490,600
56,972(716,066)(63,881)
32,898(2,962,300)

47,900,000(24,233,125)(1,452,656)
22,214,218
1,699,859
14,535,323
16,235,183

21,200,000(19,725,625)(1,766,483)(292,108)565,916
16,235,183
16,801,099*1*1

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
3.6.Notes to the Going Concern
Not applicable.
3.7. Significant Accounting Policies
1.

Accumulated depreciation method
for noncurrent assets

2.

Accounting policies for deferredassets3.

Accounting standards for recording
revenues and expenses

4.

Hedge accounting approaches(1) Property, plant and equipment (Including the trust)The straight-line method is adopted.
The useful life of primary property, plant and equipment are as
follows:
Buildings
2~56 years
Structures
4~56 years
Machinery and equipment
2~23 years
Tools, furniture and fixtures
5~18 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
Investment corporation bonds issuance costs
Amortized using the straight-line method over the period up to
redemption.
Accounting for fixed property tax, etc.
Concerning fixed property tax, city planning tax, depreciated asset
tax, etc. for owned real estate in trust, of the tax amount that has
been broken down into installments, the method of accounting forthe amount corresponding to the concerned fiscal period as expenses
related to rent business is adopted.
Concerning the amount equivalent to fixed property tax, etc. for the
initial fiscal year that shall be borne by the Investment Corporation
in a correlation with acquisitions of real estate or trust beneficial
interest that have real estate as assets in trust, the amount is not
expensed but is rather included in the cost of acquisition of theconcerned real estate property.
The amount equivalent to fixed property tax, etc. that was includedin the cost of acquisition of real estate properties in the 12th Fiscal
Period is 57,361 thousand yen and 13th Fiscal Period is 6,195
thousand yen.
(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special treatment is adopted to those interest-rate swap contracts
that meet the criteria for such special treatment.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate cap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions tohedge risks stipulated in the Investment Corporation’s articles ofincorporation in accordance with the Investment Corporation’s risk
management policy.
(4) Method for assessing the effectiveness of hedging
The effectiveness of hedging is assessed by the correlation
between the change in aggregated amount of cash flow of thehedging instruments and the change in aggregated amount of cash
flow of the hedged items.
- 16 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

5.

Scope of funds in the statements ofcash flows

6.

Other significant matters forming
basis for preparation of financial
statements

Interest rate swap that meet the requirements for special treatment
is omitted from assessment of the effectiveness.
The funds (cash and cash equivalents) in the statements of cash
flows consist of cash on hand and cash in trust; deposits that can bewithdrawn at any time and deposits in trust; and short-term
investments with a maturity of 3 months or less from the date ofacquisition, which are readily convertible to cash and bear only an
insignificant risk of price fluctuation.
(1) Accounting method for trust beneficiary interests in real estate andother assets
Concerning owned trust beneficial interest that have real estate
properties as assets in trust, all accounts of assets and liabilities
within assets in trust as well as all accounts of revenues andexpenses incurred from the assets in trust are recorded in the relevant
account item of the balance sheets and statements of income.
The following material items of the assets in trust recorded in therelevant account item are separately listed on the balance sheets.
(i) Cash and deposits in trust(ii) Buildings in trust, structures in trust, machinery and equipmentin trust, tools, furniture and fixtures in trust, other tangible assets intrust, land in trust and construction in progress in trust(iii) Leasehold rights in trust(iv) Lease and guarantee deposits in trust(v) Tenant leasehold and security deposits in trust(2)
Accounting method for consumption taxes
Consumption tax and local consumption tax are accounted for by
the tax-exclusion method and consumption taxes that are nottax-deductible are expensed in the fiscal period under review.
The consumption taxes relating to noncurrent assets, etc. that are
not tax-deductible are amortized in equal installments over 5 years.

3.8. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting and asset retirement
obligations, disclosure is omitted because there is no substantial need for such disclosure in the financial report(kessan tanshin).
[Notes to Balance Sheets]*1. Advanced depreciation amount for noncurrent assets acquired by government subsidies, etc.
12th Fiscal Period[From: June 1, 2011 To: November 30, 2011](Unit: thousand yen)

13th Fiscal Period[From: December 1, 2011 To: May 31, 2012]―

32,898*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment

Corporations(Unit: thousand yen)

12th Fiscal Period[From: June 1, 2011 To: November 30, 2011]

13th Fiscal Period[From: December 1, 2011 To: May 31, 2012]

50,000- 17 -

50,000Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing (Unit: thousand yen)
12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]
Ａ．Property leasing revenue
Rent revenue – real estate
Other lease business revenue
Total property leasing revenue
Ｂ．Property leasing expenses
Consignment expenses
Utilities expenses
Taxes and dues
Non-life insurance expenses
Repair expenses
Depreciation
Other lease business expenses
Total property leasing expenses
Ｃ．Operating income (loss) fromproperty leasing [A – B]

7,550,598
55,18113th Fiscal Period[From: December 1, 2011
To: May 31, 2012]
7,338,152
93,3607,605,780
509,445649,283
604,537
12,751
290,405
1,347,971
57,3037,431,513
573,208
654,823
637,796
11,831
233,867
1,367,437
54,1383,471,700

3,533,104

4,134,079

3,898,409[Notes to Statements of Unitholders’ Equity]
12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]

13th Fiscal Period[From: December 1, 2011
To: May 31, 2012]*1. Total number of investment units
authorized and number of investment units
issued and outstanding
Total number of investment units authorized
Number of investment units issued andoutstanding

2,000,000 units

2,000,000 units

395,798 units

395,798 units[Notes to Statements of Cash Flows]*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the cash flow statements.
(Unit: thousand yen)
12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]
Cash and deposits
Cash and deposits in trust
Cash and cash equivalents

10,818,425
5,416,757
16,235,183- 18 -

13th Fiscal Period[From: December 1, 2011
To: May 31, 2012]
11,504,131
5,296,967
16,801,099

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation
bonds and equity finance for the acquisition and repair of investment properties, the payments of dividends
and the reimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates,and dispersing maturity dates.
The Investment Corporation manages surplus funds through safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks.
(b) Contents and risk of financial instruments and policies and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation
bonds for the acquisition of investment properties and the reimbursement of current debts and bonds.
While these debts and bonds are exposed to liquidity risk, the Investment Corporation manages the risk by
maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt
to total debt at high levels, and diversifying lenders with particular focus on domestic financial institutions.
Bank borrowings with floating interest rates are exposed to interest rate risk and the risk is controlled byusing derivative instruments (IRS).
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount ofcash flow of the hedging instruments and the change in aggregated amount of cash flow of the hedged
items. Interest rate swap that meet the requirements for special treatment is omitted from assessment of theeffectiveness.
Enforcement and management of derivative transactions are carried out in accordance with theprovisions established by the basic policy of risk management.
Security deposits from tenants are exposed to liquidity risk and the Investment Corporation reduces therisk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on)
and are managed by limiting the terms to short durations.
(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.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values and their differences are as follows. Please note that the following table
does not include those for which discerning of fair value is recognized to be extremely difficult (please refer to(Note 2)).
(Unit: thousand yen)
Carrying amount
Fair value
Difference(1) Cash and deposits
10,818,425
10,818,425―(2) Cash and deposits in trust
5,416,757
5,416,757―
Total assets
16,235,183
16,235,183―(1) Current portion of long-term loans payable
35,535,625
35,591,428
55,803(2) Investment corporation bonds
8,500,000
8,505,500
5,500(3) Long-term loans payable
65,881,250
65,838,142(43,107)
Total liabilities
109,916,875
109,935,070
18,195- 19 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period(Unit: thousand yen)
Carrying amount
Fair value
Difference(1) Cash and deposits
11,504,131
11,504,131－(2) Cash and deposits in trust
5,296,967
5,296,967－
Total assets
16,801,099
16,801,099－(1) Current portion of long-term loans payable
22,291,250
22,327,560
36,310(2) Investment corporation bonds
8,500,000
8,507,500
7,500(3) Long-term loans payable
80,600,000
80,377,337(222,662)
Total liabilities
111,391,250
111,212,398(178,851)(1) Derivative transactions (*)(3,204)(3,204)－(*) The value of assets and liabilities arising from derivatives are indicated at net basis. The amount in parentheses
represents the net liability position.
(Note 1) Method of calculation of fair value of financial instruments.
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
As those with floating interest rates reflect market interest rates within a short period of time and theInvestment Corporation’s credit capability is not differ markedly from the execution, the fair value isapproximately the same as the book value and thus is stated at that book value. Those with fixed interest rates,on the other hand, are based on the method of calculating by discounting the sum total amount of principal andinterest (*) by the reasonably estimated interest rate in the case that the same type of borrowings areundertaken.
(*) For long-term debts that are subject to special treatment of interest rate swap, the interest is handled together withapplicable interest rate swaps. (Please refer to [Notes to Derivative transactions] below.)(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 and theInvestment Corporation’s credit capability is not differ markedly from the execution, the fair value isapproximately the same as the book value and thus is stated at that book value.
Derivative transactions
Please refer to [Notes to Derivative transactions] below.
(Note 2) Financial products for which they are extremely difficult to estimate fair value (Unit: thousand yen)
12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]

13th Fiscal Period[From: December 1, 2011
To: May 31, 2012]

Tenant leasehold and security deposits
6,250,338
6,024,873
Tenant leasehold and security deposits in trust
4,598,914
4,592,006
Total
10,849,253
10,616,879
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are depositedby lessees of rental properties are not subject to disclosure of market price because discerning of the market
price is recognized to be extremely difficult as future cash flows cannot be reasonably estimated due to there
being no fair value and difficulty in calculation of the actual deposit period.

- 20 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period(Note 3) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts.
12th Fiscal Period [From: June 1, 2011 To: November 30, 2011](Unit: thousand yen)
Within 1
year
Cash and deposits
Cash and deposits in trust
Total

10,818,425
5,416,757
16,235,183

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Over 5 years

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

13th Fiscal Period [From: December 1, 2011 To: May 31, 2012](Unit: thousand yen)
Within 1
year
Cash and deposits
Cash and deposits in trust
Total

11,504,131
5,296,967
16,801,099

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Over 5 years

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

(Note 4) Amount of repayment of investment corporation bond and long-term loans payable scheduled to be due
after the settlement of accounts
12th Fiscal Period [From: June 1, 2011 To: November 30, 2011](Unit: thousand yen)
Current portion of
long-term loans payable
Investment corporation bonds
Long-term loans payable
Total

Within 1 year

Within 2 years,
but over 1 year

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

35,535,625

―

―

―

―

―

―
―
35,535,625

5,000,000
23,981,250
28,981,250―
33,900,000
33,900,000―
8,000,000
8,000,000―――

3,500,000―
3,500,000

Over 5 years

13th Fiscal Period [From: December 1, 2011 To: May 31, 2012](Unit: thousand yen)
Current portion of
long-term loans payable
Investment corporation bonds
Long-term loans payable
Total

Within 1 year

Within 2 years,
but over 1 year

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

22,291,250

－

－

－

－

－

－
－
22,291,250

5,000,000
32,400,000
37,400,000－
29,500,000
29,500,000－
2,000,000
2,000,000－
16,700,000
16,700,000

3,500,000－
3,500,000- 21 -

Over 5 years

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period[Notes to Derivative transactions](1) Transactions for which hedge accounting is not applied
12th Fiscal Period [From: June 1, 2011 To: November 30, 2011]
Not applicable.
13th Fiscal Period [From: December 1, 2011 To: May 31, 2012]
Not applicable.
(2) Transactions for which hedge accounting is applied
12th Fiscal Period [From: June 1, 2011 To: November 30, 2011]
Not applicable.
13th Fiscal Period [From: December 1, 2011 To: May 31, 2012]
About derivative transactions for which hedge accounting is applied, the contract amount, amountequivalent to the principal provided in the contract, etc. as of the settlement of accounts for each hedge
accounting approach are as follows.
Contract amount
Fair
hedge
(thousand yen)Type of derivative
Method used forvalue
hedged items
accounting
Due after 1 (thousand calculating fair valuetransactions
methodyear
yen)
Based on price quoted
Interest rate swap
Long-term
Processing
41,900,000 41,900,000 (3,204) by the financial
Paid/fixed anddebts
principle
institution.
received/floating
SpecialInterest rate swap
Long-term
treatment ofPaid/fixed and13,000,000 13,000,000 （※）
debts
interest ratereceived/floating
swap
Total

54,900,000 54,900,000 (3,204)(※) Since the derivative financial instruments qualifying for the special treatment of interest-rate swaps areaccounted for as one transaction together with their hedged item, long-term debt, the fair value of thesederivatives is included in that of related long-term debt. ( Please refer to“Notes to Financial Instruments (2)Matters Concerning Fair Value, etc. of Financial Instruments (Note 1) (3)).

- 22 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period[Notes to Transactions with Related Parties](1) Transactions with Related Parties
12th Fiscal Period [from June 1, 2011 to November 30, 2012]
Name ofClassification company,
etc.

Other
affiliatedcompany

Location

Rate of voting
Capital stockrights, etc. held by RelationshiporBusiness
Nature ofrelated party (heldwithinvestments description
transactionin the Investment related party
in capital
Corporation)

Daiwa
Chiyoda-ku,
247.3
SecuritiesTokyobillion yen
Group Inc.

Holdingcompany

Payment of(Held in theinterest
Investment
expenses on
Provision of
Corporation)
investment
capital
Directly:13.11%
corporation
Indirectly:15.16%
bonds(Note 1,2)

Amount oftransaction(thousandyen)

49,944

Account

Balance at
end of period(thousandyen)

Investment
corporationbonds

3,500,000

Other(current
liabilities)

20,429Amount of transaction doesn’t include consumption tax.
(Note 1) Issuance terms, etc. for investment corporation bonds were determined by conducting a multifaceted
analysis, including the disparity in the spread of investment corporation bonds of other similar investment
corporation bonds and the spread of senior bonds and subordinated bonds in the market (bank bonds) andverification from the spread of subordinated investment corporation bonds issued in the past in Japan.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning
conflict of interest in the internal rule of the Asset Manager.
13th Fiscal Period [from December 1, 2011 to May 31, 2012]
Name ofClassification company,etc.

Parentcompany

Location

Rate of voting
Capital stockrights, etc. held by RelationshiporBusiness
Nature ofrelated party (heldwithinvestments description
transactionin the Investment related party
in capital
Corporation)

Daiwa
Chiyoda-ku,
247.3
SecuritiesTokyobillion yen
Group Inc.

Holdingcompany

Payment of(Held in theinterest
expenses on
Investment
Provision of
investment
Corporation)
capital
Directly:13.11%
corporation
bonds
Indirectly:32.57%(Note 1,2)

Amount oftransaction(thousandyen)

49,576

Account

Balance at
end of period(thousandyen)

Investment
corporationbonds

3,500,000

Other(current
liabilities)

20,429Amount of transaction doesn’t include consumption tax.
(Note 1) Issuance terms, etc. for investment corporation bonds were determined by conducting a multifaceted
analysis, including the disparity in the spread of investment corporation bonds of other similar investment
corporation bonds and the spread of senior bonds and subordinated bonds in the market (bank bonds) andverification from the spread of subordinated investment corporation bonds issued in the past in Japan.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning
conflict of interest in the internal rule of the Asset Manager.
(2) Notes to parent company and significant affiliate company
13th Fiscal Period [from December 1, 2011 to May 31, 2012]
Parent company’s information
Daiwa Securities Group Inc. (listed on the Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya Stock
Exchange)- 23 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period[Notes to Investment and Rental Properties]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions.
The carrying amount, amount of increase (decrease) during current period and fair value for these rental properties
are as follows.
(Unit: thousand yen)
12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]

13th Fiscal Period[From: December 1, 2011
To: May 31, 2012]

Carrying amount
Balance at beginning of the Fiscal
PeriodAmount of increase (decrease)during current period
Balance at end of the Fiscal Period
Fair value at end of the period

282,758,576

305,878,732

23,120,156

1,445,809

305,878,732

307,324,542

272,300,000

273,530,000(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 12th Fiscal Period, the amount of increase is mainly attributableto acquisition of E SPACE TOWER (24,000 million yen), and the amount of decrease is mainly attributableto depreciation (1,347 million yen). Of the amount of increase (decrease) during 13th Fiscal Period, theamount of increase is mainly attributable to acquisition of Daiwa Sarugakucho (right of land)” (acquisition
price: 190 million yen) and “Nihonbashi Hongokucho Tosei Building” (acquisition price: 1,721 million yen),and the amount of decrease is mainly attributable to depreciation (1,367 million yen).
(Note 3) The fair value at end of current period presents the appraisal value estimated by an external real estateappraisers.
The income (loss) for investment and rental properties are described as presented in ” Notes to Statements ofIncome”.

- 24 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period[Segment Information etc.](1) Segment Information
Segment Information has been omitted because the Investment Corporation has no segment except the property
leasing business.
(2) Related Information
12th Fiscal Period [From: June 1, 2011 To: November 30, 2011]① Information about products and services
Information about products and services has been omitted because sale from external customers for one segment isin excess of 90% of operating income.
② Information about geographical areas
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 on the statement of 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 on the balance sheet.
③ Information about major customers
Information about principal customers has been omitted because each sale from a single external customer
accounts for less than 10% of the operating income.
13th Fiscal Period [from December 1, 2011 to May 31, 2012]① Information about products and services
Information about products and services has been omitted because sale from external customers for one segment isin excess of 90% of operating income.
② Information about geographical areas
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 on the statement of 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 on the balance sheet.
③ Information about major customers
Information about principal customers has been omitted because each sale from a single external customer
accounts for less than 10% of the operating income.

- 25 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period[Notes to Per Unit Information]
12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]

13th Fiscal Period[From: December 1, 2011
To: May 31, 2012]

Net assets per unit
506,692 yen
507,330 yen
Net income per unit
4,464.09 yen
5,106.93 yen(Note 1) The net income per unit was calculated by dividing the net income by the daily weighted average number ofinvestment units issued and outstanding.The diluted net income per unit is not stated as there are no diluted
investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
12th Fiscal Period
13th Fiscal Period[From: June 1, 2011 [From: December 1, 2011
To: November 30, 2011]
To: May 31, 2012]
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 the period(unit)

1,766,878―

2,021,315―

1,766,878

2,021,315

395,798

395,798[Notes to Significant Subsequent Events]
Not applicable.
3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
Number of investment units
Unitholders’ capitalissued and outstanding(million yen)(units)Payment date
Description
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.

- 26 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period(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.

- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

4. Changes in Directors
4.1. Changes in Directors at the Investment Corporation
Not applicable.
Kazuo Otaka will resign from executive director on August 20, 2012 at his term. The Investment Corporation will
provide the agenda of the appointment of the executive director at the 7th Unitholder’s meeting on August 20, 2012.
Candidate of Executive Director : Nobuaki Omura (effective August 20, 2012)
Name
Career summary
NobuakiApr. 1971 Joined Daiwa Securities Co. Ltd. (currently, Daiwa Securities Group Inc.)
Omura
May. 1996 Head of Accounting Department and Operating Department
Feb. 1997 Head of Fixed Income Department
Jun. 1997 Director
Oct. 1997 General Manager of Fixed Income & Treasury and Derivative Products
Dec. 1997 Officer of Financial Products
Nov. 1998 Officer of Financial Products and International Operating Department
Feb. 1999 Senior Officer of Investment Bank Operation and Overseas Office
Apr. 1999 Executive Managing Director of Daiwa SB Capital Markets Co. Ltd.
Feb. 2000 Officer of Investment Bank Operation, M&A and Structured Finance
Apr. 2001 Senior Officer of Corporate Finance and Officer of Principal FinanceJun. 2002 Senior Officer of Overseas
Jun. 2003 Senior Executive Director
Apr. 2006 President, Daiwa SB Investments Ltd.
Apr. 2010 Special Advisor
Mar. 2012 Resigned from Special Advisor
Aug. 2012 Executive Director of Daiwa Office Investment Corporation (planned)
4.2. Changes in Directors at the Asset Manager
Changes in directors took place at the Asset Manager, effective March 31, April 1 and June 25, 2012.
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

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.

- 28 -

Number ofshares held－

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
Title

Name

Career summary
Apr. 2010
May 2010

Vice President
andRepresentative
Director (Headof Fundmanagement
Department)

YoshikiNishigaki

Apr. 1992
May 1996
Feb. 2006
Mar. 2007
Mar. 2008
Nov. 2008
May 2010
Aug. 2010
Feb. 2011
Apr. 2012

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

Yuji
Shinotsuka

Apr. 1989
June 2009
July 2009

Nov. 2009
Apr. 2011

Director(Head of
Administration
Department)

Naoyuki Owa

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

Director(non-executive)

Toshihiro
Matsui

Apr. 1985
May 2004
Apr. 2005
Oct. 2005
Oct. 2006

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)
Vice-President and Representative Director (Head ofFund management Department) (current position)
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 ofBusiness Planning and Finance 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)- 29 -

Number ofshares held

－

－

－

－

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
Title

Name

Career summary
Apr. 2007
Oct. 2008
Apr. 2009
July 2009
Apr. 2011

Director(non-executive)

MikitaKomatsu

Apr. 1985
Oct. 2005
Oct. 2008
Apr. 2010
Apr. 2011
Apr. 2012

Statutory
Auditor(non-executive)

Toshihiko
Onishi

Apr. 1984
Apr. 2007

Apr. 2008

Sept. 2009

Apr. 2010
Apr. 2011
June 2011(Note 1)
(Note 2)
(Note 3)

Head of Fixed Income, Currency andCommodities (FICC) Department
Head of Business Planning Department of Daiwa
Securities Group Inc.
Executive Officer
Director (non-executive) of Daiwa Real Estate AssetManagement Co., Ltd.
Executive Managing Director of Daiwa Securities
Group Inc. (current position)
Joined Daiwa Securities Co. Ltd.
Head of Finance Department, Daiwa Securities GroupInc.
President of Daiwa Securities SMBC Europe Limited(currently Daiwa Capital Markets Europe Limited)
Senior Managing Director, Daiwa Securities CapitalMarkets Co. Ltd.
Senior Managing Director , Daiwa Securities GroupInc (current position)
Director (non-executive) of Daiwa Real Estate AssetManagement Co., Ltd. (current position)
Joined Daiwa Securities Co. Ltd. (currently, Daiwa
Securities Group Inc.)
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.
Executive Officers of Daiwa Securities SMBC Co.
Ltd., and Representative Director and Deputy
President of Daiwa Securities SMBC Principal
Investments Co. Ltd.
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.
Executive Officers of Daiwa Securities CapitalMarkets Co. Ltd.(Deputy Head of Corporate Financeand Co-Head of Global Investment Banking)Corporate Executive Officers of Daiwa Securities
Group Inc. (current position)
Auditor (non-executive) of Daiwa Real Estate AssetManagement Co., Ltd. (current position)
Director of Daiwa Securities Group Inc. (current
position)

Hikari Sakagami resigned from Director (non-executive) on March 31, 2012.
Mikita Komatsu assumed office as Director (non-executive) on April 1, 2012.
Atusko Takahashi resigned from Director (full-time) on June 25, 2012.

- 30 -

Number ofshares held－－

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

5. Reference Information
5.1. Investment Status
13th Fiscal Period(As of May 31, 2012)
Type of asset
Use
RegionTotal amount owned
As a percentage of(million yen)
total assets(Note 1)(%)
Real estate
OfficeFive Central Wards of Tokyo
16,656
5.1
Five Central Wards of Tokyo
267,631
82.3
Trust beneficial
OfficeTokyo Metropolitan Area
18,178
5.6
interest in real estate
Major Regional Cities
4,858
1.5
Total
307,324
94.5
Deposits and other assets
17,991
5.5
325,315
100.0
Total amount of assets (Note 3)[307,324][94.5](Note 1) The total amount owned is the carrying amount (the book value after deducting depreciation).
(Note 2) Type of asset of Daiwa Ginza and Daiwa Ginza Annex was changed from trust beneficial interest in realestate to real estate because the Investment Corporation dissolved the trust agreement of Daiwa Ginza andDaiwa Ginza Annex with The Bank of New York Mellon Securities Company Ltd. on December 12, 2011.
(Note 3) The figures in parentheses [ ] under “Total amount of assets” shows the portion of the applicable asset that,in effect, corresponds to the holding of real estate properties. You release the trust agreement.

- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
5.2. Investment Real Estate Properties (As of May 31, 2012)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
RegionFive
CentralWards of
Tokyo
(Note 1)

Property nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho (Note 8)
Daiwa A Hamamatsucho (Note 9)
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho
Daiwa Shimbashi 510
BPS Square
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 9)
Daiwa Onarimon
Shinjuku Maynds Tower (Note 9)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building
Jimbocho PlaceE SPACE TOWER
Nihonbashi Hongokucho Tosei
Building

Type ofspecific
assetsReal estate

Trustbeneficial
interest inreal estate

Total for Five Central Wards of Tokyo (32properties)

Tokyo
Metropolit
an Area(Note 2)

Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
Benex S-3
Daiwa Shinagawa North

Total for Tokyo Metropolitan Area (4 properties)

Major
Regional
Cities(Note 3)

Daiwa Minami-Senba- 32 -

Acquisition
price

Carrying
amount(million yen)(million yen)

(Note 4)(Note 5)

Estimated Investme
price at end nt ratio(%)
of period(million yen)
(Note
(Note 6)
7)
14,000
4.5
2,960
1.0
7,400
2.6
3,930
1.5
2,720
1.0
2,870
0.9
1,930
0.9
2,620
0.8
2,470
0.7
2,320
0.7
1,510
0.5
1,420
0.4
2,400
0.8
7,660
2.5
2,340
0.8
1,740
0.5
3,790
1.3
6,780
2.4
4,270
1.5
2,900
1.1
2,170
0.9
13,0004.4
108,000
42.7
3,940
1.9
1,900
0.8
2,760
1.3
4,860
1.6
2,820
1.3
6,110
1.8
3,660
1.1
26,0007.7

14,100
3,050
8,265
4,550
3,190
2,865
2,800
2,578
2,346
2,080
1,560
1,240
2,440
7,840
2,520
1,600
3,930
7,420
4,620
3,460
2,680
13,860133,800
5,900
2,460
4,150
5,000
4,000
5,600
3,550
24,00013,722
2,933
8,132
4,487
3,172
2,808
2,746
2,447
2,219
2,134
1,368
1,212
2,309
7,214
2,502
1,563
3,829
7,168
4,545
3,369
2,643
13,651
131,543
5,822
2,440
4,165
5,128
3,972
5,590
3,606
24,094

1,721

1,740

1,810

0.5

289,175
3,653
2,958
4,950
7,710
19,271

284,287
3,445
2,819
4,433
7,480
18,178255,060
3,220
3,510
3,200
5,690
15,620

92.3
1.2
0.9
1.6
2.5
6.2

4,810

4,858

2,850

1.5

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
Total for Major Regional Cities (1 property)

4,810
4,858
2,850
1.5
313,256
307,324
273,530100.0(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), Kanagawa, Chiba andSaitama 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 deducting depreciation amount as of May 31, 2012.
(Note 6) Estimated price at end of period is the price that has May 31, 2012 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., Morii Appraisal & Investment Consulting, Inc. and Japan Real Estate Institute inaccordance with the articles of incorporation of the Investment Corporation and the rules of The Investment
Trusts Association, Japan.
(Note 7) Investment ratio is the acquisition price of the applicable trust beneficial interest expressed as a percentageof the total amount of acquisition prices, rounded to one decimal place.
(Note 8) Acquisition price of Daiwa Sarugakucho is 3,190 million yen because the Investment Corporation acquired
the land ownership (site) of Daiwa Sarugakucho at the acquisition price of 190 million yen on March 30,
2012.
(Note 9) For Daiwa A Hamamatsucho, Sunline Building No. 7 and Shinjuku Maynds Tower, the figures are thosepertaining to the Investment Corporation’s ownership interest.
Total (37properties)- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th 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
7,190.02 1（26）86.9
322,919
B3 / 12F
SRC
Daiwa Ginza Annex
Aug. 1972
1（7）2,032.99
2,032.99
100.0
64,448
B3 / 8F
SRC
Daiwa Shibaura
Oct. 1987
9,626.35
9,471.11 1（52）98.3
261,958
B1 / 12FS / SRC
Daiwa Minami-Aoyama
Sept. 1990
1（6）2,715.54
2,715.54
100.0
105,122
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
3,663.38
3,663.38 1（11）100.0
137,785
B2 / 10FRC
Daiwa Jingumae
Dec. 1997
1（4）2,198.61
2,198.61
100.0
56,151B1 / 4F
SRC / RC
Daiwa Shibadaimon
Nov. 1996
1（5）2,385.58
1,861.38
78.0
64,147
B1 / 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（8）2,715.61
2,708.79
99.7
86,138
B1 / 8FSRC
BPS Square (Note 8)
Jan. 1996
1（0）2,852.97
0.00
0.0
10F
SRC
Daiwa Tsukiji
Jan. 1990
1（5）1,487.82
1,487.82
100.0
51,634
B1 / 7F
SRC
Daiwa Tsukiji 616
Mar. 1994
1（8）2,932.65
2,632.52
89.7
77,720B1 / 9FS
Five Central Daiwa Tsukishima
July 1996
1（3）8,426.85
8,426.85
100.0
286,3705F
Wards of
SRC
Tokyo
Nihombashi MS Building
Apr. 1993
1（8）2,850.81
2,850.81
100.0
75,368
B2 / 7F
SRC
Daiwa Azabudai
Apr. 1984
1（9）1,705.44
1,705.44
100.0
60,034
B2 / 9F
SRC / S
Daiwa Shibuya SS
July 1977
2,967.65
2,584.28 1（11）87.0
112,332
B1 / 9F
SRC
Daiwa Nihombashi Honcho
Jan. 1964
7,419.75
6,325.52 1（11）85.2
143,954
B1 / 10F
SRC
Daiwa Ginza 1-chome
Jan. 1962
3,758.43
3,644.39 1（12）96.9
97,902B2 / 11F
SRC
Daiwa Kyobashi
Oct. 1974
1（8）3,255.01
2,884.77
88.6
56,681B1 / 8F
SRC
Sunline Building No. 7
Oct. 1987
1（7）2,405.04
2,126.98
88.4
63,668
B2 / 9F
SRC
Daiwa Onarimon
Apr. 1973 11,615.37 11,615.37
1（9）
100.0
358,681
9F
S / SRC
Shinjuku Maynds Tower (Note 9)
Sept. 1995 45,544.04 45,539.31 1（37）99.9
2,546,329
B3 / 34FRC
SHIBUYA EDGE
Aug. 2006
1（6）2,480.65
2,480.65
100.0
115,182
B1 / 9F
SRC
Daiwa Kodenmacho
Mar. 1985
1（8）2,379.31
2,379.31
100.0
64,684
8F
S
Daiwa JimbochoMar. 1997
1（2）3,166.62
653.1020.6
57,150B1 / 8F
SRC
Daiwa Nishi-Shimbashi
July 1993
1（9）4,815.84
3,835.35
79.6
113,237
B1 / 10F
SRC
Mar. 1987
Daiwa Kudan
1（4）3,072.87
2,706.01
88.0
115,311
9F- 34 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th 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（7）2,889.34
2,889.34
100.0
108,730
9F
S・SRC
E SPACE TOWER
Oct.2002 13,960.85 13,960.85
1（7）
100.0
677,807
B1／15F
Nihonbashi Hongokucho
S
May.2010
1（6）2,143.08
2,143.08
100.0
4,816
8F
Tosei Building
Total for Five Central Wards of Tokyo (32 properties)
177,435.57 166,407.64 32（299）93.7
6,604,519
S
Daiwa KinshichoJan. 1992
1（6）5,468.85
5,468.85
100.0
148,409
B1 / 5F
SRC / S
Daiwa Higashi-Ikebukuro
June 1993
Tokyo
1（5）
4,631.75
4,175.37
90.1
129,122
B1 / 9F
Metropolitan
S / SRC
Area
Benex S-3
Feb. 1994
7,470.30
7,218.90 1（24）96.6
155,494
B1 / 12F
SRC
Daiwa Shinagawa North
July 1991
6,551.33
6,551.33 1（14）100.0
192,421
B1 / 11F
Total for Tokyo Metropolitan Area (4 properties)
24,122.23 23,414.45 4（49）97.0
625,448
Major
SRC
Regional Daiwa Minami-Senba
Sept. 1986
1（7）5,719.54
5,719.54
100.0
108,185
B1 / 8F
CitiesTotal for Major Regional Cities (1 property)
1（7）5,719.54
5,719.54
100.0
108,185
Total (37 properties)
207,277.34 195,541.63 37（355）
94.3
7,338,152(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 November 30, 2010.
(Note 5) “Total number of tenants” when there is a master lease agreement is stated as “1” with the number ofend-tenants 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 13th 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 tosix-sevenths of the entire Property. Accordingly, leasable floor area and leased floor area are the floor areas
corresponding to six-sevenths of the entire building.

- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A
Capital Expenditures for 14th Fiscal Period
The following are the principal capital expenditures arising from renovation construction work, etc. currently
planned for existing portfolio properties. Please note that the expected construction amount includes portions
that are expensed as a separate account item of accounting costs.
Name of real estate properties(Location)
Daiwa Sarugakucho(Chihyoda-ku, Tokyo)
BPS Square(Chuo-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa A Hamamatsucho(Chuo-ku, Tokyo)

B

PurposeRenovation work for common area
Construction work for updating
package air conditioners
Construction work for iron parts
paint of roof etc. (east side)
Construction work for installationof CT soundproof wall
Construction work for updating
package air conditioners

Scheduled
implementation
periodFrom: Mar. 2012
To: June. 2012
From: July. 2012
To: Sep. 2012
From: Sep. 2012
To: Nov. 2012
From: June. 2012
To: Aug. 2012
From: July. 2012
To: Nov. 2012

Expected construction amount (million yen)
Total
Amount paid
Total amountamount during current period already paid
187

–

–

75

–

–

40

–

–

36

–

–

32

–

–

Capital Expenditures during 13th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented
during the 13th Fiscal Period. Capital expenditures for the 13th Fiscal Period amounted to 640 million yen
and, when combined with the 233 million yen in repair expenses charged to 13th Fiscal Period expenses,
totals 874 million yen in construction work implemented.

Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Nishi-Shimbashi(Minato-ku, Tokyo)
Daiwa Jimbocho(Chihyoda-ku, Tokyo)
Nihombashi MS Building(Chuo-ku, Tokyo)

Purpose

PeriodConstruction work for Introduction of heat source
Construction work for energy conservation
Renovation work for common area
Construction work for value-up on 5F.

Other
Total

From: Dec. 2011
To: May. 2012
From: Aug. 2011
To: Dec. 2011
From: Jan. 2012
To: Feb. 2012
From: Dec. 2011
To: Jan. 2012
From: Dec. 2011
To: May 2012

Construction amount paid
(million yen)
245
131
40
10
212
640

Reserve amount for Long-Term Repair Plans (Reserve for Repairs)
The Investment Corporation sets aside the following reserve for repairs from cash flows during the fiscal
period for the payment of future major repairs.
(Unit: million yen)
9th Fiscal
10th Fiscal
11th Fiscal
12th Fiscal
13th Fiscal
PeriodPeriodPeriodPeriodPeriod[From:Dec
1,[From:
June[From:Dec
1,[From:
June
1,[From:
Dec 1,
Fiscal period
2009
1,2010
2010
2011
2011
To: May 31,
To: Nov 30,
To: May 31,
To: Nov 30,
To: May 31,
2010]
2010]
2011]
2011]
2012]
Balance of reserve at
–
643
803
1,369
1,239
end of previous
period–306
Amount of reserve in
643
386
601
current period
Reversal of reserve in
–
226
36
130
487
current period
Amount carried
643
803
1,369
1,239
1,058
forward to next
periodC- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

5.2.4.

Summary of Estimated Price at End of Period (As of May 31, 2012)
Property nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho
Daiwa A Hamamatsucho (Note 2)
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho
Daiwa Shimbashi 510
BPS Square
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 2)
Daiwa Onarimon
Shinjuku Maynds Tower (Note 3)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building
Jimbocho PlaceE SPACE TOWER
Nihonbashi Hongokucho Tosei
Building
Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
Benex S-3
Daiwa Shinagawa North
Daiwa Minami-Senba
Total

Summary of Appraisal Report
Estimated priceDirect capitalization method
DCF method
Price indicatedat end of periodby the costPrice
Terminal(million yen)Price
Cap rate
Discount rate
approach(million
cap
rate(Note 1)(million yen)(%)(%)(million yen)
yen)(%)
14,000
2,960
7,400
3,930
2,720
2,870
1,930
2,620
2,470
2,320
1,510
1,420
2,400
7,660
2,340
1,740
3,790
6,780
4,270
2,900
2,170
13,000108,000
3,940
1,900
2,760
4,860
2,820
6,110
3,660
26,00015,000
3,010
7,510
4,010
2,760
2,930
1,970
2,710
2,510
2,360
1,610
1,420
2,410
7,740
2,380
1,780
4,000
7,150
4,520
3,050
2,300
13,300132,000
4,140
1,920
3,000
5,040
3,030
6,240
3,770
26,300

4.5
4.4
5.1
4.8
5.3
4.8
4.7
4.7
5.1
5.0
5.2
5.1
5.0
5.2
4.9
4.8
4.8
4.9
4.7
4.9
4.8
4.7
4.0
4.6
5.2
5.1
4.9
4.9
4.5
4.5
4.3

13,600
2,900
7,350
3,850
2,670
2,850
1,890
2,580
2,450
2,280
1,460
1,420
2,390
7,630
2,300
1,700
3,700
6,620
4,160
2,830
2,110
12,700123,000
3,860
1,870
2,660
4,780
2,740
6,060
3,610
25,600

4.2
4.1
4.9
4.5
5.0
4.6
4.4
4.5
4.9
4.7
5.2
5.1
4.7
4.9
4.6
4.5
4.5
4.5
4.3
4.6
4.5
4.4
3.8
4.3
4.9
5.1
4.6
4.9
4.3
4.3
4.1

4.8
4.7
5.3
5.1
5.6
5.0
5.0
4.9
5.3
5.3
5.5
5.4
5.2
5.4
5.2
5.1
5.1
5.2
5.0
5.2
5.1
5.0
4.1
4.9
5.5
5.4
5.1
5.2
4.7
4.7
4.5

10,100
2,770
5,580
3,340
1,600
1,780
2,030
1,600
1,320
1,770
950
668
1,160
4,190
1,570
1,200
2,710
3,960
3,820
1,890
3,130
10,00098,500
2,840
959
2,570
3,360
1,970
4,560
3,200
21,200

1,810

1,870

5.1

1,790

4.9

5.3

1,330

3,220
3,510
3,200
5,690
2,850
273,530

3,280
3,540
3,220
5,960
2,900
302,640

5.4
5.2
5.8
5.2
5.5
-

3,190
3,490
3,180
5,580
2,790
285,640

5.1
5.0
5.5
4.9
5.2
-

5.6
5.4
6.1
5.5
5.8
-

2,110
2,070
3,280
4,440
1,880
221,407(Note 1) “Estimated price at end of period” is the price that has May 31, 2012 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., Morii Appraisal & Investment Consulting, Inc. and Japan Real Estate Institute inaccordance with the articles of incorporation of the Investment Corporation and the rules of The Investment
Trusts Association, Japan.
(Note 2) For Daiwa A Hamamatsucho and Sunline Building No. 7, the prices are those pertaining to the Investment
Corporation’s ownership interest.
(Note 3) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment
Corporation’s ownership interest, and the price indicated by the direct capitalization method, price indicatedby the DCF method and price indicated by the cost approach are the prices pertaining to the entire Property.

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period
5.2.5.

Status of Income (Loss), etc. of Individual Properties
The following table listed the status of income (loss), etc. of each property for the 13th Fiscal Period (fromDecember 1, 2011 to May 31, 2012). Income (loss) information is presented in the “Significant Accounting
Policies” outlined earlier.
Region

Daiwa
Ginza

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

14,100

3,050

8,265

4,550

3,190

4.5

1.0

2.6

1.5

1.0

13,722

2,933

8,132

4,487

3,172

14,000

2,960

7,400

3,930

2,720

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

Daiwa
Shibaura

26

7

52

6

1

Leasable floor area (m2)

8,273.05

2,032.99

9,626.35

2,715.54

3,657.43

Leased floor area (m2)

7,190.02

2,032.99

9,471.11

2,715.54

3,657.43

End of May 2010

89.2

86.5

99.1

100.0

100.0

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

Occupancy rate (%)

End of Nov. 2011

84.9

100.0

99.1

100.0

0.0

End of May 2012

86.9

100.0

98.3

100.0

100.0

183

183

183

183

183

322,919

64,448

264,758

105,122－322,919

64,448261,958

105,122

－

－

－

2,800

－

－

159,401

40,50389,98640,745－

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
Ginza Annex

Daiwa
Daiwa
Minami-Aoyam Sarugakuchoa(Note 4)

Property name

Investment ratio (%)

Leasing
information

Five Central Wards of Tokyo

19,440

5,093

16,233

5,730－

Utilities expenses

26,993

5,204

22,4107,306－

Taxes and dues

26,361

8,810

20,588

11,883

－

456

111

455

165

－

Repair expenses

5,247

3,260

5,237

4,281

－

Depreciation (C)68,889Non-life insurance expenses

18,02325,061

11,377－

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

12,011－

0－－

163,517

23,945

174,771

64,377－

232,40741,968

199,833

75,754(20,696)

Capital expenditures (F) (thousand yen)

4,460

2,516

12,117736

12,321

227,947

39,452

187,71575,018(33,018)

49.36

62.85

33.99

38.76

－

55,332

18,09037,993

22,973

5,497

128,190

34,770218,640

111,190

162,170

NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2012 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

RegionDaiwa A
Hamamatsucho

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

2,865

2,800

2,578

2,346

2,080

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

Daiwa
Shibadaimon

Daiwa
Shimbashi 510

0.9

0.9

0.8

0.7

0.7

2,808

2,746

2,447

2,219

2,134

2,870

1,930

2,620

2,470

2,320

11

4

5

1

8

Leasable floor area (m2)

3,663.38

2,198.61

2,385.58

2,137.53

2,715.61

Leased floor area (m2)

3,663.38

2,198.61

1,861.38

2,137.53

2,708.79

100.0

0.0

100.0

100.0

88.2

Occupancy rate (%)
End of May 2010
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

End of Nov. 2011

100.0

78.5

100.0

100.0

97.4

End of May 2012

100.0

100.0

78.0

100.0

99.7

183

183

183

183

183

137,785

56,15164,147－

86,138

137,785

56,15164,147－

86,138

－

－

－

－

－

70,996

29,372

36,635－59,504

10,828

7,250

10,105－

7,294

Utilities expenses

9,110

4,764

5,209

－

5,612

Taxes and dues

9,208

6,602

6,297

－

5,667

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 4)

Property nameAcquisition price (million yen)

Leasing
information

Five Central Wards of Tokyo

Non-life insurance expenses

210

81

128

－

125

Repair expenses

668

503

36

－

34,259Depreciation (C)11,56910,08014,859－6,484

29,400

89

－

－

61

66,78926,77827,511－

26,63378,35836,85842,371

65,521

33,118Other 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)

8,933

825

1,911

－

1,415

NCF [(E) – (F)] (thousand yen)

69,42436,03340,45965,521

31,703

51.53

52.31

57.11

－

69.08

17,137

12,708

12,204

10,30011,190115,840

84,98098,390129,500

117,390

Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2012 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th 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)
Leasable floor area (m2)
Leased floor area (m2)
Leasing
information

Income(loss)
information

Five Central Wards of TokyoBPS Square(Note 4)

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

2.5

0.8

1,368

1,212

2,309

7,214

2,502

1,510

1,420

2,400

7,660

2,340

0

5

8

3

8

2,852.97

1,487.82

2,932.65

8,426.85

2,850.81

0.00

1,487.82

2,632.52

8,426.85

2,850.81

100.0

85.1

100.0

100.0

100.0

Occupancy rate (%)
End of May 2010
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

End of Nov. 2011

100.0

100.0

100.0

100.0

100.0

End of May 2012

0.0

100.0

89.7

100.0

100.0

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

183

183

183

183

183

－

51,634

77,720286,370

75,368－51,634

77,720286,370

75,368Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses

－

－

－

－

－

－

19,73642,431

120,90933,189

－

3,526

6,338

14,407

6,241

Utilities expenses

－

3,192

6,790

24,117

5,597

Taxes and dues

－

4,150

7,214

13,802

7,036

Non-life insurance expenses

－

62

139

338

142

Repair expenses

－

1,756

1,433

331

2,207

Depreciation (C)

－

7,048

20,484

67,912

11,963

－

－

31

－

－

－

31,89835,288

165,461

42,17814,25038,94655,773

233,373

54,142Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)
NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2012 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)

674

1,489

6,092

210

10,824

13,57537,457

49,680233,163

43,317

－

38.22

54.60

42.22

44.04

10,005

7,629

13,31826,53812,980114,750

49,77073,410331,450

139,000- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th 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
AzabudaiDaiwa Shibuya
SS

Daiwa
Nihombashi
HonchoDaiwa
Ginza 1-chome

Daiwa
Kyobashi

May 2006

May 2006

July 2006

July 2006

July 2006

1,600

3,930

7,420

4,620

3,460

0.5

1.3

2.4

1.5

1.1

1,563

3,829

7,168

4,545

3,369

1,740

3,790

6,780

4,270

2,900

9

11

11

12

8

Leasable floor area (m2)

1,705.44

2,967.65

7,419.75

3,758.43

3,255.01

Leased floor area (m2)

1,705.44

2,584.28

6,325.52

3,644.39

2,884.77

100.0

100.0

38.2

78.9

88.1

Occupancy rate (%)
End of May 2010
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

End of Nov. 2011

100.0

100.0

73.5

88.1

53.7

End of May 2012

100.0

87.0

85.2

96.9

88.6

183

183

183

183

183

61,415

123,350

143,954

106,647

56,68160,034112,332

143,954

97,902

56,681

1,380

11,018

－

8,744

－

20,55857,46866,85550,27047,991

3,701

8,324

10,723

10,071

14,872

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

3,404

8,721

13,327

7,326

5,894

Taxes and dues

5,199

10,65912,085

8,390

7,177

Non-life insurance expenses

92

152

315

155

146

Repair expenses

362

13,506

1,456

5,157

2,783

Depreciation (C)7,796

16,10328,947

19,095

17,116

－

－

－

74

－

40,85665,882

77,09956,376

8,690

48,653

81,985106,046

75,47125,806

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)

1,349

8,345

－

18,2294,707

NCF [(E) – (F)] (thousand yen)

47,30473,640106,046

57,24221,098

33.47

46.59

46.44

47.14

84.67

9,713

19,01023,264

15,747

13,99067,880113,840

116,900

191,730

61,450

Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2012 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

RegionFive Central Wards of Tokyo

Property nameSunlineBuilding No. 7

Acquisition date

Oct. 2006

Dec. 2006

Acquisition price (million yen)

2,680

13,860July andNov. 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

4.4

2,643

SHIBUYAEDGE

Daiwa
Kodenmacho
Aug. 2007

5,900

2,460

42.7

1.9

0.8

13,651

131,543

5,822

2,440

2,170

13,000108,000

3,940

1,900

7

9

37

6

8

Leasable floor area (m )2,405.04

11,615.37

45,544.04

2,480.65

2,379.31

Leased floor area (m2)2,126.98

11,615.37

45,539.31

2,480.65

2,379.31

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

End of Nov. 2011

68.1

87.1

99.9

100.0

100.0

End of May 2012

88.4

100.0

99.9

100.0

100.0

183

183

183

183

183

63,668358,6812,569,616

115,182

64,684

63,668358,6812,546,329

115,182

64,684－－23,286－－

39,468

114,742

1,275,739

37,57921,921

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

Shinjuku
Maynds Tower

July 2007

2

Leasing
information

Daiwa
Onarimon

7,707

25,505

148,615

6,094

4,013

Utilities expenses

5,503

20,993288,990

6,296

4,258

Taxes and dues

14,341

36,682

269,849

7,448

3,824

142

475

4,099

118

86

Non-life insurance expenses
Repair expenses

2,051

1,624

27,597928

668

Depreciation (C)9,721

29,462532,827

16,693

8,247

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

－

－

3,758

－

822

24,200243,938

1,293,877

77,602

42,76233,922

273,400

1,826,704

94,29551,009

Capital expenditures (F) (thousand yen)

7,256

740

300,335

3,562

2,319

NCF [(E) – (F)] (thousand yen)

26,665

272,660

1,526,369

90,732

48,690

61.99

31.99

49.65

32.63

33.89

26,97767,303494,710

14,632

7,264

68,810236,800

2,502,610

48,29070,970

Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2012 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th 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 4)Mar. 2011

4,150

5,000

4,000

5,600

Daiwa
Nishi-Shimbas Daiwa Kudan
hi

Daiwa
Jimbocho

JimbochoPlace
Mar. 2011
3,550

1.3

1.6

1.3

1.8

1.1

4,165

5,128

3,972

5,590

3,606

2,760

4,860

2,820

6,110

3,660

2

9

4

1

7

Leasable floor area (m2)

3,166.62

4,815.84

3,072.87

5,899.11

2,889.34

Leased floor area (m2)

653.103,835.35

2,706.01

5,899.11

2,889.34

100.0

－

－

－

－

End of Nov. 2010

100.0

85.5

90.7

－

－

End of May 2011

100.0

79.1

100.0

100.0

100.0

End of Nov. 2011

100.0

55.0

88.1

100.0

100.0

End of May 2012

20.6

79.6

88.0

100.0

100.0

183

183

183

183

183

92,150113,237

115,311－

108,730

57,150113,237

115,311－

108,730

35,000－－－－92,351

103,698

78,280－33,856

14,491

19,318

11,511－

7,594

Occupancy rate (%)
End of May 2010

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

6,109

9,301

6,796

－

6,394

Taxes and dues

11,212

16,957

8,990

－

17

Non-life insurance expenses

164

277

138

－

142

Repair expenses

36,213

7,506

26,709－－Depreciation (C)23,92050,334

24,134－

19,708

238

3

－

－

－

(201)

9,539

37,030－74,87323,71959,873

61,164

160,502

94,581Other 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)

48,158139,162

3,231

－

－

NCF [(E) – (F)] (thousand yen)

(24,439)(79,289)

57,933

160,502

94,581

－

91.58

67.89

－

31.14

21,18731,304

17,05225,50018,833126,090

187,140

141,450

38,44026,390

Expense rate (%) [(B) ÷ (A)]
Reference Annual amount of fixed property tax, etc.
information for fiscal 2012 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

RegionProperty nameAcquisition date
Acquisition price (million yen)Price
information

Leasing
information

1,721

3,653

2,958

Benex S-3
May 2006
4,950

7.7

0.5

1.2

0.9

1.6

24,094

1,740

3,445

2,819

4,433

26,000

1,810

3,220

3,510

3,200

7

6

6

5

24

Leasable floor area (m2)

13,960.85

2,143.08

5,468.85

4,631.75

7,470.30

Leased floor area (m2)

13,960.85

2,143.08

5,468.85

4,175.37

7,218.90

End of May 2010

－

－

100.0

100.0

80.4

End of Nov. 2010

－

－

100.0

97.9

100.0

End of May 2011

－

－

100.0

97.9

95.6

Occupancy rate (%)

End of Nov. 2011

100.0

－

100.0

97.9

89.5

End of May 2012

100.0

100.0

100.0

90.1

96.6

183

21

183

183

183

677,807

4,816

148,409

135,753

155,494

677,807

4,816

148,409129,122

155,494

－

－

－

6,630

－

158,3442,855

89,783

61,528103,143

47,595659

19,58011,706

19,25742,218－

11,57415,017

18,74915－

13,0699,630

23,955

Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses
Utilities expenses
Taxes and dues
Non-life insurance expenses

724

10

280

269

419

Repair expenses

4,934

－

16,901

2,600

1,472

Depreciation (C)62,7382,185

28,37722,30339,290

118

－

－

－

－

519,462

1,960

58,62674,22552,351

582,201

4,146

87,00396,52891,641Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

Reference
information

24,000Investment ratio (%)
Carrying amount (million yen)
Estimated price at end of period(million yen)
Number of tenants (Note 1)

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

Income (loss)
information

Five Central Wards ofTokyo Metropolitan Area
Tokyo
Nihonbashi
Daiwa
E-SPACE Hongokucho
Daiwa
Higashi-Ikeb
TOWER Tosei
Kinshicho
ukuro
Building
July. 2011
May. 2012
Oct. 2005
Oct. 2005

Capital expenditures (F) (thousand yen)

16,366

－

3,348

985

2,842

NCF [(E) – (F)] (thousand yen)

565,835

4,146

83,65595,542

88,799

23.36

59.29

60.50

45.32

66.33

114,694－

23,383

17,54630,537

317,590

22,401

285,600

141,210

402,880

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
for fiscal 2012 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period

RegionTokyo
Metropolitan
Area

Major Regional
CitiesProperty name

Daiwa
Shinagawa
North

Daiwa
Minami-Senba

Acquisition date
Acquisition price (million yen)Price
information

Leasing
information

7,710

4,810

Investment ratio (%)

2.5

1.5

7,480

4,858

5,690

2,850

14

7

Leasable floor area (m2)

6,551.33

5,719.54

Leased floor area (m2)

6,551.33

5,719.54

90.8

63.2

End of Nov. 2010

95.2

91.7

End of May 2011

100.0

91.7

Occupancy rate (%)
End of May 2010

End of Nov. 2011

100.0

91.7

End of May 2012

100.0

100.0

183

183

196,921108,185

192,421108,185

4,500－

89,24773,827

15,314

14,840

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

15,766

9,480

Taxes and dues

19,644

17,060Non-life insurance expenses

377

250

Repair expenses

4,985

1,198

Depreciation (C)33,15930,998－－

107,674

34,357140,834

65,355

5,581

9,889

135,253

55,465

45.32

68.24

36,32821,749191,640

107,090

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

Aug. 2007

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

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

Income (loss)
information

July 2007

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
etc. for fiscal 2012 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th Fiscal Period(Note 1) Number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimatedto arise over the 12-year period from the 1st year to the 12th year as stated in the building investigation
diagnosis report.
(Note 3) Estimated long-term repair expenses of Daiwa Kayabacho Building are the total amount of repair expenses
and renewal expenses estimated to arise over the 10-year period from the 1st year to the 10th year as statedin the building investigation diagnosis report.
(Note 4) Not disclosed due to tenant’s request.
(Note 5) The Investment Corporation released all security interests on September 30, 2011.

- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 13th 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

Sumitomo Mitsui Trust
Bank, Limited(Note 1)
(3)

Administrator ofUnitholders Register
Sumitomo Mitsui Trust
Bank, Limited(Note 2)

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) Sumitomo Mitsui Banking Corporation changed corporate name to “Sumitomo Mitsui Trust Bank, Limited”
on April 1, 2012.
(Note 2) The Chuo Mitsui Trust and Banking Co., Ltd. changed corporate name to “Sumitomo Mitsui Trust Bank,
Limited” on April 1, 2011.
(1)
(2)
(3)
(4)
(5)

Asset management contract / General administrative contract related
General administrative affairs contract / Asset custodian contract
Unitholder register, etc. management contract / Special account management contract
Sponsor support agreement
Fiscal agency agreement- 47 -