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 12th Fiscal Period
January 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): February 23, 2012
Scheduled date of start of distribution payments:
February 13, 2012
[Amounts are rounded down to the nearest million yen, except for per unit figures]

1. Status of Management and Assets for the 12th Fiscal Period
12th Fiscal Period: Fiscal period ended November 2011 (from June 1, 2011 to November 30, 2011)
11th Fiscal Period: Fiscal period ended May 2011 (from December 1, 2010 to May 31, 2011)(1) Management[% figures show the period-over-period increase (decrease)]

12th
Period11th
PeriodOperating revenue

Operating income

Ordinary income

Net income¥7,605 million

12.5% ¥3,317 million

17.5% ¥1,767 million

11.4% ¥1,766 million

21.6%¥6,758 million

5.2% ¥2,823 million

13.8% ¥1,587 million

24.6% ¥1,453 million

13.3%

Net income
per unit

12th
Period11th
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥4,464

0.9%

0.6%

23.2%

¥3,671

0.7%

0.5%

23.5%

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

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

12th
Period11th
PeriodTotal
distribution
amountDistribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payoutDistribution
amount to
net assets¥4,464¥1,766 million¥0¥– million

100.0%

0.9%¥3,671¥1,452 million¥0¥– million

100.0%

0.7%(Note) Dividend payout = Total distribution amount (excluding total distribution amount in excess of earnings) ÷ Net income × 100(3) Financial Position
12th
Period11th
PeriodUnitholders’ equity tototal assets

Net assets
per unit

Total assets

Net assets¥323,217 million¥200,548 million

62.0%¥506,692¥298,626 million¥200,234 million

67.1%¥505,899-1-

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period(4) Cash Flows

12th
Period11th
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¥3,264 million(¥23,779 million)¥22,214 million¥16,235 million¥3,228 million(¥9,387 million)¥2,189 million¥14,535 million

2. Management Status Forecasts for the 13th Fiscal Period
13th Fiscal Period: Fiscal period ending May 2012 (from December 1, 2011 to May 31, 2012)[% figures show the period-over-period increase (decrease)]

Operating revenue

13th
Period ¥7,269 million

Operating income(4.4%) ¥3,004 million(9.4%) ¥1,921 million

Distribution amount per unit
13th
Period(Reference)

Ordinary income(excluding distribution amount in excess of earnings)

8.7%

Net income¥1,919 million

8.7%

Distribution amount in excess of earnings per unit

¥4,850¥0

Estimated net income per unit for 13th Fiscal Period: ¥4,850

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):
12th Fiscal Period: 395,798 units
11th Fiscal Period: 395,798 units(ii) Number of treasury units at end of period:
12th Fiscal Period:– units
11th Fiscal Period:– units(Note) Please refer to “Notes on Per Unit Information” on page 27 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 13th Fiscal Period
and 14th Fiscal Period .

-2-

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
There were no major changes to the “Structure of the Investment Corporation” from the most recent securities
report (yuka shoken hokokusho) (submitted on August 25, 2011), and accordingly this information is omitted fromthis document.

2. Management Policy and Management Status
2.1 Management Policy
Disclosure is omitted because there are no significant changes from the “Investment Policy,” “Investment
Target” and “Distribution Policy” set out in the most recent periodic securities report (yuka shoken hokokusho)(submitted on August 25, 2011).
2.2 Management Status(1) Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Daiwa Office Investment Corporation (former name DA Office Investment Corporation, hereinafter called“the Investment Corporation”) was established on July 11, 2005 in accordance with the Act on Investment
Trusts and Investment Corporations (Act No. 198 of 1951; including amendments thereto) (the “Investment
Trust Act”) with Daiwa Real Estate Asset Management Co., Ltd. (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 311,345 million yen as of the last day of November,
2011.
The Investment Corporation strives to secure stable revenue and maximize returns for unitholders based ona clear portfolio development policy of specializing in investment in office buildings, with a particular focus
on investment in A Class buildings (refers to buildings with a total floor area of 30,000m2 or more) and B
Class buildings (refers to buildings with a total floor area of 2,000m2 or more, but less than 30,000m2)
situated in downtown Tokyo, as well as through dedicated efforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performance(a) Investment Environment
The Japanese economy during the fiscal period under review 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. Although there had
been suspension of transactions immediately following the Great East Japan Earthquake, the market has
gradually calmed down and transactions have also resumed.
(b) Management Performance
In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sales ofproperties) over the medium to long term, the Investment Corporation worked on “external growth,” whichaims to boost revenue through acquiring and selling properties, and “internal growth,” which aims tomaximize income generating from existing properties.
Concerning external growth, acquiring “E SPACE TOWER” (acquisition price: 24,000 million yen) in
July 8, 2011 contributed to improving the long-term EPS.
As a result, the Investment Corporation’s assets under management as of the end of the 12th Fiscal Period(November 30, 2011) totaled 36 properties, the sum total of acquisition prices of which amounted to-3-

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
311,345 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 12th Fiscal Period maintained to 92.4%.
C. Overview of Capital Procurementa. Situation of Interest-bearing Liabilities
On June 30, 2011, the Investment Corporation borrowed 5,000 million yen in total from Kansai Urban
Banking Corporation to refinance the borrowing 5,500 million yen on June 30, 2008. On July 8, 2011, theInvestment Corporation also borrowed 26,000 million yen in total from Sumitomo Mitsui Banking
Corporation, Mizuho Trust and Banking Co., Ltd. Aozora Bank, Ltd., Shinsei Bank Ltd., The Sumitomo
Trust and Banking Co., Ltd., The Bank of Fukuoka, Ltd. and ORIX Bank Corporation (former name ORIX
Trust and Banking Corporation).
On August 31, 2011, the Investment Corporation borrowed 3,000 million yen from Risona Bank Ltd. torefinance the borrowing 3,000 million yen on August 29, 2008.
On September 30, 2011, the Investment Corporation borrowed 13,900 million yen in total from
Development Bank of Japan, Inc., Shinsei Bank, Ltd., Mizuho Corporate Bank, Limited, Mitsubishi UFJ
Trust and Banking Corporation and The Gunma Bank, Ltd. for the repayment of 3,500 million yen from
Mizuho Bank, Ltd. on September 30, 2008 and the early repayment of 12,100million yen in total 7,100
million yen borrowed from Shinsei Bank, Ltd. on February 20, 2009 and 5,000 million yen borrowed from
American Life Insurance Company on September 2, 2008. Moreover, the balance of repayments was paidusing 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 August 31, 2011, and a contractual repayment of 7.5 million yen was made to The 77
Bank，Ltd. on September 16, 2011. Moreover, contractual repayments of 84.375 million yen in total weremade to Sumitomo Mitsui Banking Corporation, The Sumitomo Trust and Banking Co., Ltd., Development
Bank of Japan Inc., The Chuo Mitsui Trust and Banking Company, Limited, Taiyo Life Insurance Company
and The Gunma Bank, Ltd. on November 30, 2011.
As a result, the balance of interest-bearing liabilities outstanding as at the end of the 12th Fiscal Period stoodat 109,916.875 million yen (long-term loans payable: 101,416.875 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 35,535.625 million yen (including 166.875 million yen incontractual repayments).
Borrowing List in 12th Period
LenderKansai Urban Banking Corporation
Sumitomo Mitsui Banking
Corporation
Mizuho Trust and Banking Co.,
Ltd.
Aozora Bank, Ltd.
Shinsei Bank, Ltd.
The Sumitomo Trust and Banking
Co., Ltd.
The Bank of Fukuoka, Ltd.
ORIX Bank Corporation
Risona Bank Ltd.
Development Bank of Japan, Inc.
Shinsei Bank, Ltd.
Mizuho Corporate Bank, Limited
Mitsubishi UFJ Trust and Banking

Amount(million yen)
5,000

Drawdown Date

Repayment Date

2011/6/30

2013/6/28

Borrowing
Period2 years

13,5002011/7/8

2014/7/8

3 years

3,000

2011/7/8

2014/7/8

3 years

1,500
1,000
5,000

2011/7/8
2011/7/8
2011/7/8

2014/7/8
2014/7/8
2013/7/8

3 years
3 years
2 years

1,000
1,000
3,000
3,000
2,000
4,900
3,000

2011/7/8
2011/7/8
2011/8/31
2011/9/30
2011/9/30
2011/9/30
2011/9/30

2013/7/8
2013/1/10
2015/2/27
2015/3/31
2015/3/31
2014/3/31
2014/3/31

2 years
1.5 years
3.5 years
3.5 years
3.5 years
2.5 years
2.5 years-4-Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
Corporation
The Gunma Bank, Ltd.

1,000

2011/9/30

Borrowing Amount by each financial institution as of November 30, 2011
Amount in the 12th
LenderPeriod (million yen)Aozora Bank, Ltd.
24,600Sumitomo Mitsui Banking Corporation
20,406The Sumitomo Trust and Banking Co., Ltd.
8,434
Risona Bank Ltd.
7,000
Shinsei Bank, Ltd.
6,000
Development Bank of Japan, Inc.
5,662
Kansai Urban Banking Corporation
5,000
Mizuho Corporate Bank, Limited
4,900
The Bank of Fukuoka, Ltd.
3,000
Mizuho Trust and Banking Co., Ltd.
3,000
Mitsubishi UFJ Trust and Banking Corporation
3,000
ORIX Bank Corporation
2,500
The Gunma Bank, Ltd.
1,985
The Chuo Mitsui Trust and Banking Co., Ltd.
1,970
The Shizuoka Bank, Ltd.
1,000
The Kagawa Bank Ltd.
988
The 77 Bank，Ltd.
985
Taiyo Life Insurance Co., Ltd.
985
Total
101,416(Note) Ratio is rounded to three decimal place.

2014/3/31

2.5 years

Rate (%)
24.26
20.12
8.32
6.90
5.92
5.58
4.92
4.83
2.96
2.96
2.96
2.47
1.96
1.94
0.99
0.97
0.97
0.97
100.00b. Collateral Situation
The Investment Corporation released all security interests on September 30, 2011. (Please confirm the news
release on September 26, 2011 “Release of Security Interests”.
c. Rating Information (as of November 30, 2011)
Credit Rating Agency
RatingR&I
A

Outlook
Stabled. Shelf Registration
The Investment Corporation filed the shelf registration on March 16, 2010 as below.
Investment Corporation Bonds
Planned Issue Amount
100 billion yen
Planned Issue Period
From March 24, 2010 to March 23, 2012
Use of funds
Funds for acquisition of specified assets, repayment of loans, redemption of
investment corporation bonds, refund of leasehold and security deposits,
and payment of repairs, etc.; funds for working capital; etc.
D. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performancefor the 12th Fiscal Period of 7,605 million yen in operating revenue, 3,317 million yen in operating income,
1,767 million yen in ordinary income, 1,766 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-5-

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Periodamount per unit that are less than 1 yen. Accordingly, the Investment Corporation declared a distribution
amount per unit of 4,464 yen.
(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 maintain and raise occupancy rates through the provision of office environments of hightenant satisfaction levels by maintaining the quality of buildings and equipment and proactively
implementing renovations, etc. of common-use areas and thereby lowering vacancy risks.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium 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 Class
and B Class buildings by watching the property market and maintaining a balance with the financing
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 12th Fiscal Period, the Investment Corporation acquired “E SPACE TOWER”, which aresituated in the five central wards of Tokyo. The Investment Corporation believes that acquisition of theseproperties will contribute to further 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 12th 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 13th Fiscal Period (fiscal
period ending May 2012 (from December 1, 2011 to May 31, 2012)). For the assumptions underlying themanagement status forecasts, please refer to the “Assumptions for the Management Status Forecasts for the
13th Fiscal Period and 14th Fiscal Period.
Operating revenue
Operating income
Ordinary income
Net income
Distribution amount per unit
Distribution amount in excess of earnings per unit

7,269 million yen
3,004 million yen
1,921 million yen
1,919 million yen
4,850 yen
0 yen

In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 13th Fiscal
Period and 14th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following
management status for the 14th Fiscal Period (fiscal period ending November 2012 (from June 1, 2012 toNovember 30, 2012)).
Operating revenue
Operating income
Ordinary income
Net income
Distribution amount per unit
Distribution amount in excess of earnings per unit

7,055 million yen
2,927 million yen
2,119 million yen
2,117 million yen
5,350 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 12th Fiscal Period

Assumptions for the Management Status Forecasts for the 13th Fiscal Period and 14th Fiscal Period
Item
Assumptions• 13th Fiscal Period:
Assets under management are assumed to be the 36 properties as of November 30, 2011.
Assets under• 14th Fiscal Period:
management
Assets under management are assumed to be the 36 properties.
• The actual number of properties may vary due to changes in the assets under management.
Operatingrevenue

OperatingexpensesNon-operating
expenses

Interest-bearing
liabilities• 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
3,806 million yen in the 13th Fiscal Period and 3,732 million yen in the 14th Fiscal Period.
• Outsourcing expenses are expected to be 565 million yen in the 13th Fiscal Period and 546
million yen in the 14th Fiscal Period.
• Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 639 million
yen in the 13th Fiscal Period and 690 million yen in the 14th Fiscal Period.
• Depreciation is expected to be 1,376 million yen in the 13th Fiscal Period and 1,290 million
yen in the 14th Fiscal Period.
• Non-operating expenses in the 13th Fiscal Period are expected to be 1,082 million yen, of
which the interest expenses and borrowing related expenses are expected to be 1,073 million
yen.
• Non-operating expenses in the 14th Fiscal Period are expected to be 807 million yen, of
which the interest expenses and borrowing related expenses are expected to be 798 million
yen.
• The total amount of interest-bearing liabilities is assumed to be 109,791.25 million yen at theend of the 13th Fiscal Period and 109,750 million yen at the end of the 14th Fiscal Period.
• The total amount of interest-bearing liabilities in the 13th Fiscal Period is based on theassumption that, all loans that are to become due for repayment will be refinanced in theentire amount. And 125.625 million yen that is to become due for contractual repayment(41.25 million yen due by February 29, 2012; 84.375 million yen due by May 31, 2012) will
be repaid using cash reserves.
• The total amount of interest-bearing liabilities in the 14th Fiscal Period is based on theassumption that, all loans that are to become due for repayment will be refinanced in theentire amount. The total amount of interest-bearing liabilities in the 14th Fiscal Period is also
based on the assumption that the 41.25 million yen that is to become due for contractual
repayment (due by August 31, 2012) will be repaid using cash reserves.

Number ofinvestment units
issued andoutstanding• The number of investment units issued and outstanding is assumed to be the 395,798 units
issued and outstanding as of the date of submission of this document, and there is assumed to
be no additional issuance of investment units through to November 30, 2012.

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

-8-Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
Item
Assumptions
Distribution amount• At present, there is no plan to make any distribution in excess of earnings (distribution
in excess of earnings
amount in excess of earnings per unit).
per unit• It is assumed that there are no changes to laws and ordinances, the tax system, accounting
standards, listing regulations, the rules of The Investment Trusts Association, Japan, etc. that
Other
will affect the abovementioned forecast figures.
• It is assumed that there will be no major unforeseen changes in general economic trends, realestate market conditions, etc.

2.3. Investment Risks
Disclosure is omitted because there are no significant changes from the “Investment Risks” set out in the periodic
securities report (yuka shoken hokokusho) submitted on August 25, 2011.

-9-

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

3. Financial Statements
3.1. Balance Sheets

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

11th Fiscal Period(Unit: thousand yen)
12th Fiscal Period[As of May 31, 2011][As of Nov 30, 2011]

9,164,744
5,370,579
174,669–
626,451
21
230,461
15,566,926

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

4,058(2,109)1,949
3,456(3,456)–
61,891,282(10,518,559)
51,372,722
788,860(80,205)
708,654755,291(256,904)
498,386
69,972(21,969)
48,0036,302(6,302)–
225,160,517
27,738277,817,973

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

1,250
4,970,290
6,268
4,977,809

1,285
4,970,290
5,530
4,977,107

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

113,684
190,532
10,020314,236306,217,656

42,50142,501
298,626,347

33,91833,918323,217,575

*1

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

*1

- 10 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for loss on disaster
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Other
Total noncurrent liabilities
Total liabilities

11th Fiscal Period(Unit: thousand yen)
12th Fiscal Period[As of May 31, 2011][As of Nov 30, 2011]

875,740
38,958,750
245,156
849
43,826
716,01763,721
236,082
41,140,144

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

8,500,000
38,791,250
5,339,027
4,617,729
4,074
57,252,081
98,392,226

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

198,780,951

198,780,951

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

1,767,074
1,767,074
200,548,026
200,548,026
323,217,575*1*1

Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets*2- 11 -*2

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

3.2. Statements of Income

Operating revenue
Rent revenue – real estate
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on donation of noncurrent assets
Total extraordinary income
Extraordinary expenses
Loss on disaster
Provision for loss on disaster
Total extraordinary expenses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

11th Fiscal Period(Unit: thousand yen)
12th Fiscal Period[From: December 1, 2010
To: May 31, 2011][From: June 1, 2011
To: November 30, 2011]*1*1

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

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

3,165,923
542,152
14,80982,61236,2225,400
87,886
3,935,007
2,823,779*1

3,471,700
607,648
15,84566,47840,4605,400
81,227
4,288,759
3,317,020*2*2- 12 -

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

711
5,491
5,269
11,473729,850
96,480410,557
8,536
1,245,425
1,587,534

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

610
610

－
－

70,342
63,721
134,063
1,454,080
1,042
(2)
1,039
1,453,041
129
1,453,170－－－
1,767,898
1,018
1
1,020
1,766,878
195
1,767,074

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

3.3. Statements of Unitholders’ Equity

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
Total net assets
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

11th Fiscal Period(Unit: thousand yen)
12th Fiscal Period[From: December 1, 2010
To: May 31, 2011][From: June 1, 2011
To: November 30, 2011]

198,780,951*1- 13 -–
198,780,951

198,780,951*1–
198,780,951

1,282,514

1,453,170(1,282,385)
1,453,041
170,655
1,453,170(1,452,974)
1,766,878
313,904
1,767,074

1,282,514

1,453,170(1,282,385)
1,453,041
170,655
1,453,170(1,452,974)
1,766,878
313,904
1,767,074

200,063,466

200,234,121(1,282,385)
1,453,041
170,655
200,234,121(1,452,974)
1,766,878
313,904
200,548,026

200,063,466

200,234,121(1,282,385)
1,453,041
170,655
200,234,121(1,452,974)
1,766,878
313,904
200,548,026

Daiwa Office Investment Corporation (8976) Financial Report for the 12th 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 amount11th Fiscal Period[From: December 1, 2010
To: May 31, 2011]
Amount (yen)1,453,170,330
1,452,974,458[3,671]
195,872
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of
the amount equivalent to 90% of
its distributable earnings as
defined in Article 67-15 of the Act
on Special Measures Concerning
Taxation” but no more than theamount of earnings as specified in
Article 32, Item 1 of theInvestment Corporation’s articles
of incorporation, the Investment
Corporation decided the
distributions from earnings that itshall pay out shall be themaximum value of the integral
multiple of the number of units
issued and outstanding (395,798
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, theInvestment Corporation declared a
distribution amount of
1,452,974,458 yen. Furthermore,
the Investment Corporation shallnot distribute cash in excess ofearnings as stipulated in Article
32, Item 2 of its articles ofincorporation.

- 14 -

12th 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.

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

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

11th Fiscal Period(Unit: thousand yen)
12th Fiscal Period[From: December 1, 2010
To: May 31, 2011][From: June 1, 2011
To: November 30, 2011]

1,454,080
1,282,285
8,536(1,464)
826,33163,721
2,250
119,735
140,052(69,732)
7,255
15,289(91,703)
242,010(2,452)
55,953
4,052,148
1,464(823,838)(987)
3,228,787

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(9,472,147)–
249,951
402,361(338,036)(229,353)(9,387,225)(24,671,359)(178)
362,637
1,210,383(680,080)(443)(23,779,041)

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

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

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

3.6. Notes to the Going Concern
12th Fiscal Period[From: June 1, 2011 To: November 30, 2011 ]Not applicable.
3.7. Significant Accounting Policies
1.

Accumulated depreciation method
for noncurrent assets(1) Property, plant and equipment
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as
follows:
Tools, furniture and fixtures
5 years
Buildings in trust
2~56 years
Structures in trust
4~56 years
Machinery and equipment in trust 2~23 years
Tools, furniture and fixtures in trust 3~18 years

2.

Accounting policies for deferredassets3.

Accounting standards for provision4.

Accounting standards for recording
revenues and expenses(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. Provision for loss on disaster
Provision for loss on disaster
A Provision for loss on disaster is recognized at an estimated amountas of the fiscal period end in order to provide for expected
expenditure for recovery costs, etc. related to the Great East Japan
Earthquake.
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 fiscal period
under review is 57,361 thousand yen.

- 16 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

5.

6.

7.

Hedge accounting approaches(1)

Hedge accounting approach
Special accounting is adopted for interest rate caps that meet therequirements for special accounting.
(2)
Hedging instruments and hedged items
Hedging instruments:
Interest rate cap transactions
Hedged items:
Interest on loans(3)
Hedging policy
The Investment Corporation conducts derivative transactions tohedge risks stipulated in the Investment Corporation’s articles ofincorporation in accordance with the Investment Corporation’srisk management policy.
(4)
Method for assessing the effectiveness of hedging
Assessment of the effectiveness is omitted because interest rate
caps meet the requirements for special accounting.
Scope of funds in the statements of
The funds (cash and cash equivalents) in the statements of cash flows
cash flows
consist of cash on hand and cash in trust; deposits that can be withdrawn
at any time and deposits in trust; and short-term investments with amaturity of 3 months or less from the date of acquisition, which arereadily convertible to cash and bear only an insignificant risk of pricefluctuation.
Other significant matters forming basis (1) Accounting method for trust beneficiary interests in real estate andfor preparation of financial statements
other 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 therelevant account item of the balance sheets and statements ofincome.
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 intrust, machinery and equipment intrust, tools, furniture and fixtures intrust, other tangible assets in trust,land in trust and construction inprogress in trust(iii) Leasehold rights in trust(iv) Lease and guarantee deposits in trust(v) Tenant leasehold and security
deposits in trust(2) Accounting 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 nottax-deductible are amortized in equal installments over 5 years.

- 17 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

3.8. Additional Information
12th Fiscal Period[From: June 1, 2011 To: November 30, 2011]
Accounting Standards for Accounting Changes and Error Corrections
The Investment Corporation has applied “Accounting Standards for Accounting Changes and Error Corrections”(Accounting Standards Board of Japan (ASBJ) Statement No.24; December 4, 2009) and “Guidance on AccountingStandards for Accounting Changes and Error Corrections” (Accounting Standards Board of Japan (ASBJ) Guidance
No.24; December 4, 2009), starting with accounting changes and corrections of past to be conducted after the
beginning of the fiscal period under review.
3.9. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting, derivativetransactions and asset retirement obligations, disclosure is omitted because there is no substantial need for suchdisclosure in the financial report (kessan tanshin).
[Notes to Balance Sheets]
11th Fiscal Period[From: December 1, 2010 To: May 31, 2011]

12th Fiscal Period[From: June 1, 2011 To: November 30, 2011]*1. Pledged assets and secured liabilities

1. Pledged assets and secured liabilities

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

Not applicable.

The following are the liabilities secured by pledged
assets.
(Unit: thousand yen)
Current portion of long-term loans payable
38,951,250
Long-term loans payable
20,806,250
Total
59,757,500*2. Minimum net assets as provided in Article 67,*2. Minimum net assets as provided in Article 67,
Paragraph 4 of the Act on Investment Trusts andParagraph 4 of the Act on Investment Trusts andInvestment Corporations
Investment Corporations
50,000 thousand yen
50,000 thousand yen- 18 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period[Notes to Statements of Income]11th Fiscal Period
12th Fiscal Period[From: December 1, 2010 To: May 31, 2011][From: June 1, 2011
To: November 30, 2011]*1. Breakdown of operating income (loss) from property *1. Breakdown of operating income (loss) from property
leasingleasing(Unit: thousand yen)
(Unit: thousand yen)
A. Property leasing revenue
A. Property leasing revenue
Rent revenue – real estate
6,715,058
Rent revenue – real estate
7,550,598
Other lease business revenue
43,728Other lease business revenue
55,181
Total property leasing revenue
6,758,786
Total property leasing revenue
7,605,780
B. Property leasing expenses
Consignment expenses
Utilities expenses
Taxes and dues
Non-life insurance expenses
Repair expenses
Depreciation
Other lease business expenses
Total property leasing expenses

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

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

509,445649,283
604,537
12,751
290,405
1,347,971
57,3033,471,700

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

3,592,863

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

4,134,079*2 Breakdown of Extraordinary expenses
The expenses are repair costs etc, by the Great East
Japan Earthquake.

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

12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]*1. Total number of investment units authorized andnumber of investment units issued and outstanding

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

Total number of investment units authorized
2,000,000 units
Number of investment units issued and outstanding
395,798 units[Notes to Statements of Cash Flows]
11th Fiscal Period
12th Fiscal Period[From: December 1, 2010 To: May 31, 2011][From: June 1, 2011
To: November 30, 2011]*1. Relationship between cash and cash equivalents at end *1. Relationship between cash and cash equivalents at endof period in the statements of cash flows and theof period in the statements of cash flows and theamount stated in the balance sheetsamount stated in the balance sheets(As of May 31, 2011)(As of November 30, 2011)(Unit: thousand yen)
(Unit: thousand yen)
Cash and deposits
9,164,744
Cash and deposits
10,818,425
Cash and deposits in trust
5,370,579
Cash and deposits in trust
5,416,757
Cash and cash equivalents
14,535,323
Cash and cash equivalents
16,235,183- 19 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period[Notes to Financial Instruments]
11th Fiscal Period [from December 1, 2010 to May 31, 2011](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation 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).
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 aremanaged by limiting the terms to short durations.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial
instruments with no available market price is determined by using price reasonably estimated. As various
factors are incorporated into these calculations, the resulting value may differ if different assumptions areprovided. Also, market risk involved in derivative financial instruments is not represented by the contract
amounts of derivative financial instruments.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values as of May 31, 2011 and their differences are as follows. Please notethat 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
9,164,744
9,164,744―(2) Cash and deposits in trust
5,370,579
5,370,579―
Total assets
14,535,323
14,535,323―(1) Current portion of long-term loans payable
38,958,750
38,977,858
19,108(2) Investment corporation bonds
8,500,000
8,508,500
8,500(3) Long-term loans payable
38,791,250
38,989,518
198,268
Total liabilities
86,250,000
86,475,876
225,876(1) Derivative transactions
4,806
9(4,796)(Note 1) Method of calculation of fair value of financial instruments, and matters concerning derivative transactions
Assets(1) Cash and deposits (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value
and thus is stated at that book value.
Liabilities(1) Current portion of long-term loans payable (3) Long-term loans payable- 20 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
As those with floating interest rates reflect market interest rates within a short period of time, the fair value isapproximately the same as the book value and thus is stated at that book value. Those with fixed interest
rates, on the other hand, are based on the method of calculating by discounting the sum total amount ofprincipal and interest by the rate reasonably estimated as being applicable in the event of a similar drawdown.
(2) Investment corporation bonds
Concerning the fair value of investment corporation bonds issued by the Investment Corporation, as these arebased on floating interest rates and reflect market interest rates within a short period of time, the fair value isapproximately the same as the book value and thus is stated at that book value.
Derivative transactions(1) Derivative transactions(a) Transactions for which hedge accounting is not applied
Not applicable.
(b) Transactions for which hedge accounting is applied
The contract amount, amount equivalent to the principal provided in the contract, etc. as of the settlementof accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)
Hedge accounting
approachSpecial accounting
for interest rate caps

Type, etc. of
derivative transaction

Contract amount, etc.
Of which,over 1 year

Main hedged item

Interest rate cap transaction Long-term loans payable

7,100,000

Method ofcalculation ofthat fair value

Fair value

―

9

※

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

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

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

Within 3 years,
but over 2 years–––

Within 4 years,
but over 3 years–––

Within 5 years,
but over 4 years

–
–
–

–
–
–

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

Within 1 year

Within 2 years,
but over 1 year

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

38,958,750

―

―

―

―

―

―
―
38,958,750―
21,291,250
21,291,250

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

―
―
―

―
―
―

3,500,000―
3,500,000- 21 -

Over 5 years

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
12th Fiscal Period [from June 1, 2011 to November 30, 2011](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).
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 as of November 30, 2011 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(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, the fair value isapproximately the same as the book value and thus is stated at that book value. Those with fixed interest- 22 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
rates, on the other hand, are based on the method of calculating by discounting the sum total amount ofprincipal and interest by the rate reasonably estimated as being applicable in the event of a similar drawdown.
(2) Investment corporation bonds
Concerning the fair value of investment corporation bonds issued by the Investment Corporation, as these arebased on floating interest rates and reflect market interest rates within a short period of time, the fair value isapproximately the same as the book value and thus is stated at that book value.
(Note 2) Tenant leasehold and security deposits (carrying amount: 6,250,338 thousand yen) and tenant leasehold andsecurity deposits in trust (carrying amount: 4,598,914 thousand yen) that are deposited by lessees of rental
properties are not subject to disclosure of fair value because discerning of the fair value is recognized to be
extremely difficult as future cash flows cannot be reasonably estimated due to there being no market priceand difficulty in calculation of the actual deposit period.
(Note 3) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts(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

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

(Note 4) Amount of repayment of investment corporation bond and long-term loans payable scheduled to be due
after the settlement of accounts(Unit: thousand yen)
Current portion of
long-term loans payable
Investment corporation 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- 23 -

Over 5 years

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period[Notes to Transactions with Related Parties]
11th Fiscal Period [from December 1, 2010 to May 31, 2012]
Rate of voting
Balance at
CapitalAmount ofrights, etc. held Relation
Name of
Nature ofend ofClassificati
stock orBusiness by related partywithtransaction
Account
periodcompany, Locationtransactio
investment description (held in the
Related(thousandon
etc.
n(thousands in capital
Investment
Partiesyen)
yen)Corporation)
Payment
Investment
of interest
corporation 3,500,000(Held in the
expensebonds
Daiwa
Investment
on
Other
247.3
Holding
Corporation) Provision investmen
Securities Chiyoda-k
49,986affiliatedGroupu, Tokyo billion yen company Directly:13.11% of capitaltcompany
Other
Inc.
Indirectly:15.16
corporatio
20,496(current%n bonds
liabilities)(Note1,2)

Subsidiary
Daiwa
of Other
Property
affiliatedCo.,Ltd.
company

Chuo-ku,
100
Tokyo million yen

Real Estate
Rent
Business－

Purchase
Purchaseof Trustof Trust
beneficial
beneficial
5,600,000
interest ininterest inreal estate
real estate(Note2,3)－－

Amount of transactions 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.
(Note 3) Purchase of Trust beneficial interest in real estate was determined based on the market.
12th Fiscal Period [from June 1, 2011 to November 30, 2011]
Name ofClassification company,
etc.

Other
affiliatedcompany

Location

Rate of voting
Capital stockrights, etc. held by Relationship
Business
Nature oforrelated 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:15.16%(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.

- 24 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period[Notes to Investment and Rental Properties]
11th Fiscal Period [from December 1, 2010 to May 31, 2011]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The
carrying amount, amount of increase (decrease) during current period and fair value as of May 31, 2011 for theserental properties are as follows.
(Unit: thousand yen)
Carrying amount
Fair value at end of
Balance at beginning ofAmount of increase (decrease)
Balance at end ofcurrent period
11th Fiscal Period
during current period
11th Fiscal Period
274,219,899
8,538,676
282,758,576
249,930,000(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) during current period, the amount of increase is mainly attributable toacquisition of Daiwa Kayabacho (5,600 million yen) and Jimbocho Place (3,550 million yen), and theamount of decrease is mainly attributable to depreciation (1,281 million yen).
(Note 3) The fair value at end of current period presents the appraisal value estimated by an external real estateappraisers.
The income (loss) for the 11th Fiscal Period for investment and rental properties are described as presented in ”
Notes to Statements of Income”.
12th Fiscal Period [from June 1, 2011 to November 30, 2011]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The
carrying amount, amount of increase (decrease) during current period and fair value as of November 30, 2011 forthese rental properties are as follows.
(Unit: thousand yen)
Carrying amount
Fair value at end of
Balance at beginning ofAmount of increase (decrease)
Balance at end ofcurrent period
12th Fiscal Period
during current period
12th Fiscal Period
282,758,576
23,120,156
305,878,732
272,300,000(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) during current period, the amount of increase is mainly attributable toacquisition of E SPACE TOWER (24,000 million yen), and the amount of decrease is mainly attributable todepreciation (1,347 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 the 12th Fiscal Period for investment and rental properties are described as presented in ”
Notes to Statements of Income”.

- 25 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period[Segment Information etc.]
11th Fiscal Period [from December 1, 2010 to May 31, 2011][Additional Information](1) Segment Information
Segment Information has been omitted because the Investment Corporation has no segment except the property
leasing business.
(2) Related Information(a) Information 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.
(b) 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.
(c) 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.
12th Fiscal Period [from June 1, 2011 to November 30, 2011](1) Segment Information
Segment Information has been omitted because the Investment Corporation has no segment except the property
leasing business.
(2) Related Information(a) Information 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.
(b) 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.
(c) 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.

- 26 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period[Notes to Per Unit Information]
11th Fiscal Period[From: December 1, 2010 To: May 31, 2011]
Net assets per unit
505,899 yen
Net income per unit
3,671.16 yen

12th Fiscal Period[From: June 1, 2011 To: November 30, 2011]
Net assets per unit
506,692 yen
Net income per unit
4,464.09 yen

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

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

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

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

11th Fiscal Period

12th Fiscal Period[From: December 1, 2010
To: May 31, 2011][From: June 1, 2011
To: November 30, 2011]

1,453,041―
1,453,041
395,798

1,766,878―
1,766,878
395,798[Notes to Significant Subsequent Events]
12th Fiscal Period[From: June 1, 2011
To: November 30, 2011]
Not applicable.

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

Notes(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 1) The Investment Corporation was incorporated at an issue price of 500,000 yen per unit.
(Note 2) The Investment Corporation issued new investment units through public offering at an issue price of
515,000 yen per unit (issue amount: 496,975 yen) to procure funds for acquisition of properties to beacquired upon listing, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of
781,060 yen per unit (issue amount: 753,165 yen) to procure funds for acquisition of acquisition properties,etc.
- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th 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.

- 28 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

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

Name

President andRepresentative
Director

Akira
Yamanouchi

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

Vice President
andRepresentative
Director (Headof Advisory
Department)

YoshikiNishigaki

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

Joined Marubeni Corporation
Joined Pacific Management Corporation (currently,
Pacific Holdings, Inc.)
Temporarily transferred to Pacific Investment
Advisors Corporation (currently, AD Investment
Management Co., Ltd.)
President and Representative Director of PacificInvestment Advisors Corporation (with employmenttransfer)
Executive Director of Nippon Residential Investment
Corporation (currently, Advance Residence
Investment Corporation)
Resigned from office as Executive Director
Resigned from office as President and Representative
Director of Pacific Investment Advisors Corporation
President and Representative Director of PacificInvestment Partners Inc. (currently, Cushman &Wakefield Asset Management K.K.)
Representative Director (part-time basis) of Pacific
Holdings, Inc.
Resigned from Pacific Holdings, Inc.
Executive Managing Director of Cushman &Wakefield Asset Management K.K.
Resigned from Cushman & Wakefield AssetManagement K.K.
Advisor of Daiwa Real Estate Asset Management Co.,Ltd.
President and Representative Director (current
position)
Joined Cititrust & Banking Corporation
Joined K.K. DaVinci Advisors
Transferred to K.K. DaVinci Select (currently, Daiwa
Real Estate Asset Management Co., Ltd.)
Head of IR & Business Planning Department
President and Representative Director
Executive Director, DA Office Investment Corporation(currently, Daiwa Office Investment Corporation)
Vice President and Representative Director, Daiwa
Real Estate Asset Management Co., Ltd.
Resigned from Executive Director, Daiwa Office
Investment CorporationVice-President and Representative Director (Head ofAdvisory Department) (current position)- 29 -

Number ofshares held－－

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
Title
Vice-President
andRepresentative
Director (Headof Business
Planning and
Finance
Department)

Name
Yuji
Shinotsuka

Career summary
Apr. 1989
June 2009
July 2009

Nov. 2009
Apr. 2011

Director(Construction
manager)

AtsukoTakahashi

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

Director(Head of
Administration
Department)

Naoyuki Owa

Nov. 2011
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
Apr. 2007
Oct. 2008
Apr. 2009
July 2009

Joined Daiwa Securities Co. Ltd. (currently, Daiwa
Securities Group Inc.)
Head of Corporate Planning Department
Temporarily transferred to Daiwa Real Estate AssetManagement Co., Ltd.
Vice-President and Representative Director (Head of
IR & Planning Department)
Vice-President and Representative Director (Head ofCorporate Planning Department)
Vice-President and Representative Director (Head ofBusiness Planning and Finance Department) (current
position)
Joined Recruit Co., Ltd.
Temporarily transferred to K.K. Recruit Building
Management (currently, XYMAX corporation)
Concurrently temporarily transferred to XYMAX
Alpha corporation (currently, XYMAX AXIS
corporation)
Joined K.K. DaVinci Advisors
Manager of Acquisition Team
K.K. DaVinci Select (currently, Daiwa Real Estate
Asset Management Co., Ltd.) (with employmenttransfer)
Director (Head of Investment Management
Department)
Director (Construction manager) (current position)
Joined Tokyo High Court as Court Administrative
Official
Joined Daiwa Securities Co. Ltd. (currently, Daiwa
Securities Group Inc.)
Head of Corporate Planning Department and Treasury
Department of Daiwa Securities SMBC Co., Ltd.
(currently, Daiwa Securities Capital Markets Co. Ltd.)
Head of Corporate Planning Department of Daiwa
Securities Group Inc.
Temporarily transferred to Daiwa Real Estate AssetManagement Co., Ltd.
Director (Head of Administration Department)(current position)
Joined Daiwa Securities Co. Ltd. (currently, Daiwa
Securities Group Inc.)
Head of Corporate Institutions Department (V) of
Daiwa Securities SMBC Co., Ltd. (currently, Daiwa
Securities Capital Markets Co. Ltd.)
Head of Corporate Institutions Department (IV)
Head of Corporate Finance Department
Head of Corporate Finance Department (I)Head of Fixed Income, Currency andCommodities (FICC) Department
Head of Business Planning Department of Daiwa
Securities Group Inc.
Executive Officer
Director (non-executive) of Daiwa Real Estate Asset- 30 -

Number ofshares held
－

－

－

－

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
Title

Name

Career summary

Number ofshares held

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

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

5. Reference Information
5.1. Investment Status
12th Fiscal Period(As of November 30, 2011)
Type of asset
Use
RegionTotal amount owned
As a percentage of(million yen)
total assets(Note 1)(%)
Five Central Wards of Tokyo
282,709
87.5
OfficeTrust beneficial
Tokyo Metropolitan Area
18,289
5.7
interest in real estate
Major Regional Cities
4,879
1.5
Total
305,878
94.6
Deposits and other assets
17,3385.4
323,217100.0
Total amount of assets (Note 2)[305,878][94.6](Note 1) The total amount owned is the carrying amount (the book value after deducting depreciation).
(Note 2) The figures in parentheses [ ] under “Total amount of assets” shows the portion of the applicable asset that,in effect, corresponds to the holding of real estate properties.

- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
5.2. Investment Real Estate Properties (As of November 30, 2011)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Carrying
priceamountRegionProperty name(million yen) (million yen)
(Note 4)(Note 5)
Daiwa Ginza
14,10013,571
Daiwa Ginza Annex
3,050
2,920
Daiwa Shibaura
8,265
8,145
Daiwa Minami-Aoyama
4,550
4,497
Daiwa Sarugakucho
3,000
2,953
Daiwa A Hamamatsucho (Note 8)
2,865
2,810
Daiwa Jingumae
2,800
2,755
Daiwa Shibadaimon
2,578
2,460
Daiwa Misakicho
2,346
2,233
Daiwa Shimbashi 510
2,080
2,139
BPS Square
1,560
1,384
Daiwa Tsukiji
1,240
1,217
Daiwa Tsukiji 616
2,440
2,323
Daiwa Tsukishima
7,840
7,282
Five Central Nihombashi MS Building
2,520
2,503
Wards ofDaiwa Azabudai
1,600
1,570
Tokyo
Daiwa
Shibuya
SS
3,930
3,837
(Note 1)
Daiwa Nihombashi Honcho
7,420
7,197
Daiwa Ginza 1-chome
4,620
4,545
Daiwa Kyobashi
3,460
3,381
Sunline Building No. 7 (Note 8)
2,680
2,646
Daiwa Onarimon
13,86013,680Shinjuku Maynds Tower (Note 8)
133,800
131,775
SHIBUYA EDGE
5,900
5,835
Daiwa Kodenmacho
2,460
2,446
Daiwa Jimbocho
4,150
4,140
Daiwa Nishi-Shimbashi
5,000
5,072
Daiwa Kudan
4,000
3,993
Daiwa Kayabacho Building
5,600
5,618
Jimbocho Place
3,550
3,626
E SPACE TOWER
24,00024,141
Total for Five Central Wards of Tokyo (31properties)
287,264
282,709
Daiwa Kinshicho
3,653
3,470
Tokyo
Metropolitan Daiwa Higashi-Ikebukuro
2,958
2,840
Area
Benex S-3
4,950
4,469
(Note 2)
Daiwa Shinagawa North
7,710
7,508
Total for Tokyo Metropolitan Area (4 properties)
19,271
18,289
Major
Regional
Daiwa Minami-Senba
4,810
4,879
Cities(Note 3)
Total for Major Regional Cities (1 property)
4,810
4,879
Total (36properties)
311,345
305,878- 33 -

Estimated price Investment
at end of periodratio(million yen)(%)
(Note 6)(Note 7)
13,900
4.5
2,860
1.0
7,380
2.7
3,970
1.5
2,120
1.0
2,870
0.9
2,010
0.9
2,730
0.8
2,470
0.8
2,250
0.7
1,560
0.5
1,370
0.4
2,400
0.8
7,870
2.5
2,330
0.8
1,760
0.5
3,810
1.3
6,740
2.4
4,190
1.5
2,880
1.1
2,250
0.9
14,400
4.5
106,000
43.0
4,060
1.9
1,920
0.8
2,930
1.3
5,600
1.6
2,960
1.3
6,110
1.8
3,640
1.1
25,9007.7
253,240
92.3
3,540
1.2
3,500
1.0
3,410
1.6
5,670
2.5
16,120
6.2
2,940

1.5

2,940
272,300

1.5
100.0

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period(Note 1) “Five Central Wards of Tokyo” are the Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards.
(Note 2) “Tokyo Metropolitan Area” is Tokyo (excluding the Five Central Wards of Tokyo), 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 November 30, 2011.
(Note 6) Estimated price at end of period is the price that has November 30, 2011 as the date of the price opinion
stated in 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 in accordance with the articles of incorporation of the Investment Corporation and the rules of The
Investment Trusts Association, Japan.
(Note 7) Investment ratio is the acquisition price of the applicable trust beneficial interest expressed as a percentageof the total amount of acquisition prices, rounded to one decimal place.
(Note 8) For Daiwa A Hamamatsucho, Sunline Building No. 7 and Shinjuku Maynds Tower, the figures are thosepertaining to the Investment Corporation’s ownership interest.

- 34 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th 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
7,027.59 1（26）84.9
313,360
B3 / 12F
SRC
Daiwa Ginza Annex
Aug. 1972
1（7）2,032.99
2,032.99
100.0
85,170B3 / 8F
SRC
Daiwa Shibaura
Oct. 1987
9,626.35
9,544.53 1（54）99.1
258,115
B1 / 12FS / SRC
Daiwa Minami-Aoyama
Sept. 1990
1（6）2,715.54
2,715.54
100.0
128,889
B2 / 5F
SRC
Daiwa Sarugakucho (Note 8)
June 1985
1（0）3,657.43
0.00
0.0
8F
SRC
Daiwa A Hamamatsucho
July 1993
3,671.25
3,671.25 1（12）100.0
141,900
B2 / 10FRC
Daiwa Jingumae
Dec. 1997
1（3）2,198.61
1,726.65
78.5
45,017
B1 / 4F
SRC / RC
Daiwa Shibadaimon
Nov. 1996
1（5）2,384.70
2,384.70
100.0
86,083
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（9）2,803.80
2,733.66
97.4
94,338
B1 / 8FSRC
BPS Square (Note 8)
Jan. 1996
1（1）2,852.97
2,852.97
100.0
10F
SRC
Daiwa Tsukiji
Jan. 1990
1（5）1,487.82
1,487.82
100.0
48,653
B1 / 7F
SRC
Daiwa Tsukiji 616
Mar. 1994
1（9）2,932.65
2,932.65
100.0
83,399B1 / 9FS
Five Central Daiwa Tsukishima
July 1996
1（3）8,426.85
8,426.85
100.0
286,383
5F
Wards of
SRC
Tokyo
Nihombashi MS Building
Apr. 1993
1（9）2,920.19
2,920.19
100.0
83,401B2 / 7F
SRC
Daiwa Azabudai
Apr. 1984
1（9）1,705.44
1,705.44
100.0
65,863B2 / 9F
SRC / S
Daiwa Shibuya SS
July 1977
2,978.87
2,978.87 1（10）100.0
128,490
B1 / 9F
SRC
Daiwa Nihombashi Honcho
Jan. 1964
7,419.75
5,460.20 1（10）73.5
140,378
B1 / 10F
SRC
Daiwa Ginza 1-chome
Jan. 1962
3,757.77
3,312.70 1（12）88.1
111,947
B2 / 11F
SRC
Daiwa Kyobashi
Oct. 1974
1（6）3,233.37
1,739.51
53.7
49,375
B1 / 8F
SRC
Sunline Building No. 7
Oct. 1987
1（6）2,405.15
1,639.69
68.1
61,553B2 / 9F
SRC
Daiwa Onarimon
Apr. 1973 11,615.37 10,121.00
1（8）
87.1
417,593
9F
S / SRC
Shinjuku Maynds Tower (Note 9)
Sept. 1995 45,544.04 45,539.31 1（37）99.9
2,538,947
B3 / 34FRC
SHIBUYA EDGE
Aug. 2006
1（6）2,480.65
2,480.65
100.0
115,806
B1 / 9F
SRC
Daiwa Kodenmacho
Mar. 1985
1（8）2,379.31
2,379.31
100.0
64,9358F
S
Daiwa JimbochoMar. 1997
1（2）3,166.84
3,166.84
100.0
161,481
B1 / 8F
SRC
Daiwa Nishi-Shimbashi
July 1993
1（7）4,815.84
2,652.87
55.0
137,671
B1 / 10F
SRC
Mar. 1987
Daiwa Kudan
1（4）3,104.23
2,737.37
88.1
127,697
9F- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th 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（6）2,889.34
2,889.34
100.0
90,9429F
S・SRC
E SPACE TOWER
Oct.2002 13,960.85 13,960.85
1（7）
100.0
539,461
B1／15F
Total for Five Central Wards of Tokyo (31 properties)
175,477.66 161,257.98 31(289)91.8
6,803,824
S
Daiwa KinshichoJan. 1992
1（6）5,468.85
5,468.85
100.0
151,854
B1 / 5F
SRC / S
Daiwa Higashi-Ikebukuro
June 1993
Tokyo
1（6）
4,630.94
4,537.71
97.9
145,311
B1 / 9F
Metropolitan
S / SRC
Area
Benex S-3
Feb. 1994
7,470.30
6,690.43 1（20）89.5
160,166
B1 / 12F
SRC
Daiwa Shinagawa North
July 1991
6,551.33
6,551.33 1（13）100.0
180,917
B1 / 11F
Total for Tokyo Metropolitan Area (4 properties)
24,121.42 23,248.32 4（45）96.3
638,250
Major
SRC
Regional Daiwa Minami-Senba
Sept. 1986
1（6）5,719.54
5,249.30
91.7
108,522
B1 / 8F
CitiesTotal for Major Regional Cities (1 property)
1（6）5,719.54
5,249.30
91.7
108,522
Total (36 properties)
205,318.62 189,755.60 36(340)92.4
7,550,598(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 12th 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.

- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A
Capital Expenditures for 13th 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)

Renovation work for air
conditioning, lighting energy
conservation and common area

Daiwa Sarugakucho(Chihyoda-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Nishi-Shimbashi(Minatoku, Tokyo)
Daiwa Jimbocho(Chihyoda-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

B

Scheduled
implementation
periodPurposeFrom: Jan. 2012
To: Mar. 2012

Introduction of heat source
Updating package air conditioners
Renovation work for common area
Construction work for energy
conservation (lighting of parking)From: Dec. 2011
To: May. 2012
From: June. 2011
To: Dec. 2011
From: Dec. 2011
To: Jan. 2012
From: Jan. 2012
To: May. 2012

Expected construction amount (million yen)
Total
Amount paid
Total amountamount during current period already paid
400

–

–

270

–

–

150

–

–

50

–

–

21

–

–

Capital Expenditures during 12th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented
during the 12th Fiscal Period. Capital expenditures for the 12th Fiscal Period amounted to 240 million yen
and, when combined with the 290 million yen in repair expenses charged to 12th Fiscal Period expenses,
totals 530 million yen in construction work implemented.

Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Nihombashi MS Building(Chuo-ku, Tokyo)
Daiwa Ginza 1-chome(Chuo-ku, Tokyo)

Purpose

PeriodConstruction work for replacement of stairs passage
guide light.
Construction work for repair of ceiling of wind shelter
room in entrance.
Construction work for repair of humidificationequipment
Construction work for replacement of air-conditioning
equipment on 2F.

From: Nov. 2011
To: Nov. 2011
From: July. 2011
To: Nov. 2011
From: Oct. 2011
To: Nov. 2011
From: Sep. 2011
To: Oct. 2011
From: June. 2011
To: Nov 2011

Other
Total

Construction amount paid
(million yen)
23
15
11
11
177
240

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 Period
10th Fiscal Period 11th Fiscal Period 12th Fiscal Period
Fiscal period[From: Dec 1, 2009 [From: June 1,2010 [From: Dec 1, 2010 [From: June 1,2011
To: May 31, 2010] To: Nov 30, 2010]
To: May 31, 2011]
To: Nov 30,2011]
Balance of reserve at end of
–
643
803
1,369
previous period–
Amount of reserve in current
643
386
601
periodReversal of reserve in current
–
226
36
130
periodAmount carried forward to next
643
803
1,369
1,239
periodC- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period
5.2.4.

Summary of Estimated Price at End of Period (As of November 30, 2011)

Property nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho
Daiwa A Hamamatsucho (Note 3)
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 3)
Daiwa Onarimon
Shinjuku Maynds Tower (Note 4)
SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kudan
Daiwa Kayabacho Building
Jimbocho PlaceE SPACE TOWER
Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
Benex S-3
Daiwa Shinagawa North
Daiwa Minami-Senba
Total

Summary of Appraisal Report
Estimated price Direct capitalization method
DCF method
Price indicatedat end of periodby the costPrice
Terminal(million yen)approachPrice
Cap rate
Discount rate
(million
cap rate(Note 1)(million yen)(million yen)
(%)
(%)
yen)
(%)
(Note 2)
13,900
2,860
7,380
3,970
2,120
2,870
2,010
2,730
2,470
2,250
1,560
1,370
2,400
7,870
2,330
1,760
3,810
6,740
4,190
2,880
2,250
14,400106,000
4,060
1,920
2,930
5,600
2,960
6,110
3,640
25,900
3,540
3,500
3,410
5,670
2,940
272,300

15,200
3,060
7,430
4,060
2,330
2,900
2,080
2,790
2,500
2,260
1,620
1,380
2,410
7,950
2,510
1,840
4,120
7,360
4,500
3,050
2,400
15,500132,000
4,140
2,030
3,060
5,750
3,050
6,220
3,760
26,300
3,570
3,520
3,580
6,230
2,960
305,420

4.6
4.5
5.1
4.9
5.3
4.8
4.7
4.7
5.1
5.2
5.3
5.2
5.0
5.2
5.0
5.0
5.0
5.1
4.8
5.0
5.0
4.9
4.0
4.6
5.3
5.2
4.9
5.0
4.5
4.5
4.3
5.4
5.2
5.8
5.3
5.5
-

13,400
2,780
7,360
3,870
2,030
2,850
1,980
2,710
2,450
2,240
1,540
1,360
2,400
7,840
2,250
1,720
3,680
6,470
4,060
2,800
2,180
13,900121,000
3,970
1,870
2,870
5,540
2,930
6,060
3,590
25,500
3,530
3,490
3,330
5,430
2,910
283,890

4.3
4.2
4.9
4.6
5.0
4.6
4.4
4.5
4.9
4.9
5.3
5.2
4.7
4.9
4.7
4.7
4.7
4.7
4.4
4.7
4.7
4.6
3.8
4.3
5.0
5.2
4.6
5.0
4.3
4.3
4.1
5.2
5.0
5.5
5.0
5.2
-

4.9
4.8
5.3
5.2
5.6
5.0
5.0
4.9
5.3
5.5
5.6
5.5
5.2
5.4
5.3
5.3
5.3
5.4
5.1
5.3
5.3
5.2
4.1
4.9
5.6
5.5
5.1
5.3
4.7
4.7
4.5
5.6
5.4
6.1
5.6
5.8
-

11,100
2,880
5,630
3,380
1,340
1,810
2,040
1,640
1,330
1,780
960
680
1,170
4,250
1,590
1,210
2,730
3,990
4,000
1,910
3,190
10,300100,000
2,950
977
2,600
3,470
1,990
4,660
3,240
21,300
2,110
2,130
3,310
4,620
1,900
224,167(Note 1) “Estimated price at end of period” is the price that has November 30, 2011 as the date of the price opinion
stated in 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 in accordance with the articles of incorporation of the Investment Corporation and the rules of The
Investment Trusts Association, Japan.
(Note 2) “Price indicated by the cost approach” is rounded down to the nearest million yen.
(Note 3) For Daiwa A Hamamatsucho and Sunline Building No. 7, the prices are those pertaining to the Investment
Corporation’s ownership interest.
(Note 4) For Shinjuku Maynds Tower, the estimated price at end of period is the price pertaining to the Investment
Corporation’s ownership interest, and the price indicated by the direct capitalization method, price indicatedby the DCF method and price indicated by the cost approach are the prices pertaining to the entire Property.

- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th 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 12th Fiscal Period (fromJune 1, 2011 to November 30, 2011). Income (loss) information is presented in the “Significant Accounting
Policies” outlined earlier.
RegionFive Central Wards of Tokyo
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

3,000

4.5

1.0

2.7

1.5

1.0

13,571

2,920

8,145

4,497

2,953

13,900

2,860

7,380

3,970

2,120

Investment ratio (%)

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

Leasing
information

Daiwa
Shibaura

26

7

54

6

0

Leasable floor area (m2)

8,273.05

2,032.99

9,626.35

2,715.54

3,657.43

Leased floor area (m2)

7,027.59

2,032.99

9,544.53

2,715.54

0Occupancy rate (%)
End of Nov. 2009

85.4

86.4

88.5

100.0

100.0

End of May 2010

89.2

86.5

99.1

100.0

100.0

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

End of Nov. 2011

84.9

100.0

99.1

100.0

0.0

183

183

183

183

183

313,360

85,170259,632

128,889－

313,360

85,170258,115

128,889

－

－

－

1,517

－

－

154,658

41,88989,591

41,904－

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 5)

Property name18,605

6,794

16,777

6,088－

Utilities expenses

26,634

4,677

21,076

7,821－

Taxes and dues

26,357

8,806

20,588

11,883

－

509

122

497

181

－

Repair expenses

2,548

3,483

6,309

4,585

－

Depreciation (C)67,934Non-life insurance expenses

17,731

24,342

11,343－

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

12,067

272

－

－

－

158,701

43,281

170,041

86,985－

226,636

61,012

194,383

98,32861,788

Capital expenditures (F) (thousand yen)

13,8092,171

21,296

5,370－

NCF [(E) – (F)] (thousand yen)

212,827

58,841

173,086

92,95861,788

49.35

49.18

34.51

32.51

－

52,682

17,46840,706

23,594

6,067

128,190

34,770218,640

111,190

162,170

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral (Note 4)

None- 39 -

None

None

None

None

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

RegionDaiwa A
Hamamatsucho

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

2,865

2,800

2,578

2,346

2,080

Investment ratio (%)

0.9

0.9

0.8

0.8

0.7

2,810

2,755

2,460

2,233

2,139

2,870

2,010

2,730

2,470

2,250

Daiwa
Shibadaimon

Daiwa
Shimbashi 510

12

3

5

1

9

Leasable floor area (m2)

3,671.25

2,198.61

2,384.70

2,137.53

2,803.80

Leased floor area (m2)

3,671.25

1,726.65

2,384.70

2,137.53

2,733.66

End of Nov. 2009

100.0

100.0

100.0

100.0

88.2

End of May 2010

100.0

0.0

100.0

100.0

88.2

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

183

183

183

183

183

141,900

45,01786,083－

94,338141,900

45,01786,083－

94,338

－

－

－

－

－

74,282

26,48936,247－

24,346

10,844

3,825

7,164

－

5,192

Utilities expenses

9,041

4,800

6,752

－

5,828

Taxes and dues

9,207

6,601

6,295

－

5,667

Occupancy rate (%)

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

Daiwa
Jingumae

Daiwa
Misakicho(Note 5)

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

Leasing
information

Five Central Wards of Tokyo

Non-life insurance expenses

229

89

139

－

136

Repair expenses

4,141

1,180

1,354

－

1,030

Depreciation (C)11,4189,901

14,542－

6,430

29,400

89

－

－

61

67,61818,527

49,835－69,992

79,03628,42964,377

68,84976,422Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)
NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral (Note 4)

－

6,048

8,774

－

500

79,03622,38155,602

68,84975,922

52.35

58.84

42.11

－

25.81

18,23913,203

12,31010,965

11,298115,840

84,98098,390129,500

117,390

None- 40 -

None

None

None

None

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

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

Leasing
information

Income(loss)
information

Five Central Wards of TokyoBPS Square(Note 5)

Daiwa
Tsukiji

Daiwa
Tsukiji 616

Daiwa
Tsukishima

Nihombashi
MS Building

Jan. 2006

Jan. 2006

Mar. 2006

Mar. 2006

May 2006

1,560

1,240

2,440

7,840

2,520

0.5

0.4

0.8

2.5

0.8

1,384

1,217

2,323

7,282

2,503

1,560

1,370

2,400

7,870

2,330

1

5

9

3

9

Leasable floor area (m2)

2,852.97

1,487.82

2,932.65

8,426.85

2,920.19

Leased floor area (m2)

2,852.97

1,487.82

2,932.65

8,426.85

2,920.19

End of Nov. 2009

100.0

100.0

100.0

100.0

100.0

End of May 2010

100.0

85.1

100.0

100.0

100.0

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

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

183

183

183

183

183

－

48,65383,399286,383

83,401－

48,65383,399286,383

83,401Other lease business revenue
Total property leasing expenses (B)(thousand yen)
Consignment expenses

－

－

－

－

－

－

18,26742,407

126,230

29,958

－

3,546

6,351

12,781

5,076

Utilities expenses

－

3,104

7,627

26,264

5,303

Taxes and dues

－

4,143

7,214

13,802

7,059

Non-life insurance expenses

－

68

152

367

155

Repair expenses

－

365

773

5,178

998

Depreciation (C)

－

7,039

20,28867,835

11,365

－

－

－

－

－

－

30,38640,992

160,153

53,443

41,63837,42561,280227,988

64,808

Occupancy rate (%)

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)
NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral (Note 4)

300

200

3,746

3,593

13,062

41,33837,22557,533

224,395

51,745

－

37.55

50.85

44.08

35.92

10,7898,257

14,26327,604

13,900114,750

49,77073,410331,450

139,000

None- 41 -

None

None

None

None

Daiwa Office Investment Corporation (8976) Financial Report for the 12th 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

1,570

3,837

7,197

4,545

3,381

1,760

3,810

6,740

4,190

2,880

9

10

10

12

6

Leasable floor area (m2)

1,705.44

2,978.87

7,419.75

3,757.77

3,233.37

Leased floor area (m2)

1,705.44

2,978.87

5,460.20

3,312.70

1,739.51

End of Nov. 2009

87.9

91.3

84.9

78.9

100.0

End of May 2010

100.0

100.0

38.2

78.9

88.1

End of Nov. 2010

100.0

100.0

65.2

97.4

100.0

End of May 2011

100.0

100.0

73.5

97.9

42.1

End of Nov. 2011

100.0

100.0

73.5

88.1

53.7

183

183

183

183

183

65,863129,060

140,378

130,245

49,37565,863

128,490

140,378

111,947

49,375－570－

18,297－

20,21644,07089,22454,76057,924

3,633

6,771

8,107

9,189

6,006

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

Five Central Wards of Tokyo

Utilities expenses

3,171

9,143

12,969

7,573

5,311

Taxes and dues

5,199

10,65812,089

8,390

7,176

Non-life insurance expenses

100

166

348

170

161

Repair expenses

373

1,382

27,101

10,90022,366

Depreciation (C)7,736

15,94828,60818,536

16,903

－

－

－

－

－

45,64784,99051,15375,484(8,549)53,384

100,939

79,762

94,0208,354

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)

1,539

2,464

7,532

19,374

3,861

NCF [(E) – (F)] (thousand yen)

51,84598,47572,22974,646

4,492

30.69

34.15

63.56

42.04

－

10,384

21,28023,84916,771

14,25567,880113,840

116,900

191,730

61,450

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral (Note 4)

None- 42 -

None

None

None

None

Daiwa Office Investment Corporation (8976) Financial Report for the 12th 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

4.5

2,646

SHIBUYAEDGE

Daiwa
Kodenmacho
Aug. 2007

5,900

2,460

43.0

1.9

0.8

13,680131,775

5,835

2,446

2,250

14,400106,000

4,060

1,920

6

8

37

6

8

Leasable floor area (m )2,405.15

11,615.37

45,544.04

2,480.65

2,379.31

Leased floor area (m2)

1,639.69

10,121.00

45,539.31

2,480.65

2,379.31

Occupancy rate (%)
End of Nov. 2009

76.9

86.6

99.1

100.0

100.0

End of May 2010

79.7

100.0

78.1

100.0

86.8

End of Nov. 2010

80.5

100.0

99.9

100.0

100.0

End of May 2011

79.7

100.0

99.9

100.0

100.0

End of Nov. 2011

68.1

87.1

99.9

100.0

100.0

183

183

183

183

183

70,373

417,5932,541,293

115,806

64,93561,553

417,5932,538,947

115,806

64,935

8,819

－

2,346

－

－

38,691

107,347

1,358,110

38,37021,466

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

5,677

17,817

151,354

6,695

3,975

Utilities expenses

5,220

19,873

292,440

6,080

4,248

Taxes and dues

14,341

36,682

263,549

7,456

3,824

155

518

4,463

130

93

Non-life insurance expenses
Repair expenses

3,702

3,013

113,960

1,344

323

Depreciation (C)9,592

29,443528,283

16,662

8,177

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

－

－

4,057

－

822

31,682

310,245

1,183,182

77,436

43,46941,274

339,688

1,711,466

94,09851,647

Capital expenditures (F) (thousand yen)

3,915

2,476

85,319400

615

NCF [(E) – (F)] (thousand yen)

37,359337,2121,626,147

93,69851,032

54.98

25.71

53.44

33.13

33.06

28,43773,313527,097

14,8897,649

68,810236,800

2,502,610

48,29070,970

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral (Note 4)

None- 43 -

None

None

None

None

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

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

Leasing
information

Mar. 2010

Aug. 2010

Sep. 2010

Daiwa
Kayabacho
Building(Note 5)Mar. 2011

4,150

5,000

4,000

5,600

Daiwa
Nishi-Shimbas Daiwa Kudan
hi

Daiwa
Jimbocho

JimbochoPlace
Mar. 2011
3,550

1.3

1.6

1.3

1.8

1.1

4,140

5,072

3,993

5,618

3,626

2,930

5,600

2,960

6,110

3,640

2

7

4

1

6

Leasable floor area (m2)

3,166.84

4,815.84

3,104.23

5,899.11

2,889.34

Leased floor area (m2)

3,166.84

2,652.87

2,737.37

5,899.11

2,889.34

End of Nov. 2009

－

－

－

－

－

End of May 2010

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

183

183

183

183

183

161,481

137,671

127,697－

90,942

161,481

137,671

127,697－

90,942

－

－

－

－

－

56,692

135,275

47,473－33,506

7,889

14,050

6,552

－

7,703

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

Five Central Wards of Tokyo

Utilities expenses

11,627

10,830

7,166

－

5,814

Taxes and dues

11,212

17,040

8,987

－

6

Non-life insurance expenses

181

303

153

－

155

Repair expenses

2,678

46,070

652

－

118

Depreciation (C)23,062

46,97623,961－

19,708

40

3

－

－

－

104,788

2,396

80,224－57,435

127,850

49,372

104,185

159,796

77,144

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)
Capital expenditures (F) (thousand yen)
NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference for fiscal 2011 (thousand yen)
information Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)
Status of pledge as collateral (Note 4)

1,748

3,541

2,427

－

－

126,10245,831

101,758

159,796

77,144

35.11

98.26

37.18

－

36.84

22,42533,597

17,928－－126,090

187,140

141,450

38,44026,390None- 44 -

None

None

None

None

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

RegionFive Central
Wards ofTokyo

Property name

E-SPACETOWER

Acquisition date
Acquisition price (million yen)Price
information

2

Leasing
information

Daiwa
ShinagawaNorth

Oct. 2005

Oct. 2005

May 2006

July 2007

24,000

3,653

2,958

4,950

7,710

7.7

1.2

1.0

1.6

2.5

24,141

3,470

2,840

4,469

7,508

25,900

3,540

3,500

3,410

5,670

7

6

6

20

13

13,960.85

5,468.85

4,630.94

7,470.30

6,551.33

Leased floor area (m2)

13,960.85

5,468.85

4,537.71

6,690.43

6,551.33

End of Nov. 2009

－

100.0

100.0

67.2

100.0

End of May 2010

－

100.0

100.0

80.4

90.8

End of Nov. 2010

－

100.0

97.9

100.0

95.2

End of May 2011

－

100.0

97.9

95.6

100.0

End of Nov. 2011

100.0

100.0

97.9

89.5

100.0

146

183

183

183

183

539,461

151,854

155,983

163,025

180,917539,461

151,854

145,311160,166

180,917－－

10,671

2,858－

135,20269,55967,694

93,98386,30953,353

15,20912,34418,06014,961

28,50011,643

15,59016,98315,155

Taxes and dues

13

13,067

9,632

8,160

19,645

Non-life insurance expenses

632

303

292

455

409

Occupancy rate (%)

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

Repair expenses

490

1,049

7,579

5,120

2,805

Depreciation (C)52,07828,28622,25445,20233,332

135

－

－

－

－

Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)404,258

82,29588,28869,041

94,608456,336

110,582

110,543

114,244

127,940

Capital expenditures (F) (thousand yen)

2,462

3,160

1,075

13,684

1,782

453,874

107,422

109,468

100,560

126,158

25.06

45.81

43.40

57.65

47.71

－

25,551

19,21332,63838,361

317,590285,600

141,210

402,880

191,640

None

None

None

None

NCF [(E) – (F)] (thousand yen)

Reference
information

Benex S-3

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

Income (loss)
information

Daiwa
Higashi-Ikeb
ukuro

Daiwa
Kinshicho

July. 2011

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

Tokyo Metropolitan Area

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
for fiscal 2011 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral (Note 4)- 45 -

None

Daiwa Office Investment Corporation (8976) Financial Report for the 12th Fiscal Period

Price
information

RegionMajor Regional
CitiesProperty name

Daiwa
Minami-Senba

Acquisition dateAug. 2007

Acquisition price (million yen)

4,810

Investment ratio (%)

1.5

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

4,879

2

Leasing
information

5,719.54

Leased floor area (m2)5,249.30

Occupancy rate (%)
End of Nov. 200963.2

End of May 201063.2

End of Nov. 2010

91.7

End of May 201191.7

End of Nov. 2011

91.7

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

183
108,522
108,522－62,826
13,872

Utilities expenses

10,501

Taxes and dues

5,811

Non-life insurance expenses

273

Repair expenses

497

Depreciation (C)31,871Other 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

6

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

Income (loss)
information

2,940

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax,
etc. for fiscal 2011 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)
Status of pledge as collateral (Note 4)－
45,696
77,567
4,054
73,512
57.89
23,245
107,090
None- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 12th 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 13th 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 11th year as statedin the building investigation diagnosis report.
(Note 4) The Investment Corporation released all security interests on September 30, 2011.
(Note 5) Not disclosed due to tenant’s request.

- 47 -