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 16th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:

January 17, 2014
Daiwa Office Investment Corporation
Stock Exchange Listing: TSE
8976
URL: http://www.daiwa-office.co.jp
Nobuaki Omura, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Akira Yamanouchi, President and Representative Director
Yuji Shinotsuka, Vice President and Representative Director
TEL: +81-3-6215-9649
and Head of Finance Department

Scheduled date of submission of periodic securities report (yuka shoken hokokusho):Scheduled date of start of distribution payments:
Preparing presentation material:
Holding financial brief meeting:February 25, 2014
February 14, 2014

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

1. Status of Management and Assets for the 16th Fiscal Period
16th Fiscal Period: Fiscal period ended November 2013 (from June 1, 2013 to November 30, 2013)
15th Fiscal Period: Fiscal period ended May 2013 (from December 1, 2012 to May 31, 2013)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
16th
Period15th
PeriodOperating income

Ordinary income

Net income¥8,432 million

10.7%¥3,677 million

11.1%¥2,955 million

14.1%¥2,959 million

14.3%¥7,615 million

0.6%¥3,308 million

5.1%¥2,590 million

9.5%¥2,589 million

9.3%

Net income
per unit
16th
Period15th
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥7,478

1.5%

0.8%

35.1%

¥6,541

1.3%

0.8%

34.0%

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

16th
Period15th
PeriodTotal
distribution
amountDistribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payoutDistribution
amount to
net assets¥7,478¥2,959 million¥0¥– million

100.0%

1.5%¥6,542¥2,589 million¥0¥– million

100.0%

1.3%(3) Financial Position

16th
Period15th
PeriodUnitholders’ equity tototal assets

Net assets
per unit

Total assets

Net assets¥363,653 million¥201,683 million

55.5%¥509,560¥342,572 million¥201,345 million

58.8%¥508,707-1-

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period(4) Cash FlowsNet cashprovided by (used in)operating activities
16th
Period15th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥4,581 million(¥20,526 million)¥16,811 million¥16,924 million¥3,349 million(¥17,187 million)¥13,848 million¥16,057 million

2. Management Status Forecasts for the 17th Fiscal Period and 18th Fiscal Period
17th Fiscal Period: Fiscal period ended May 2014 (from December 1, 2013 to May 31, 2014)
18th Fiscal Period: Fiscal period ended November 2014 (from June 1, 2014 to November 30, 2014)[% figures show the period-over-period increase (decrease)]

Operating revenue
17thPeriod18th
PeriodOperating income

0.1%¥3,756 million

2.2%¥2,986 million

1.0%¥2,984 million

0.8%¥8,607 million

2.0%¥3,786 million

0.8%¥2,998 million

0.4%¥2,996 million

0.4%

Distribution amount per unit

(Reference)

Net income¥8,441 million(excluding distribution amount in excess of earnings)

17th
Period18th
PeriodOrdinary income

Distribution amount in excess of earnings per unit

¥7,540¥0¥7,570¥0

Estimated net income per unit for the 17th Fiscal Period: ¥7,540; 18th Fiscal Period: ¥7,570

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies due to amended accounting standards, etc.: None(ii) Changes in accounting policies other than (i):None(iii) Changes in accounting estimates:None(iv) Retrospective restatement:
None(2) Number of Investment Units Issued and Outstanding(i) Number of investment units issued and outstanding at end of period (including treasury units):
16th Fiscal Period: 395,798 units
15th Fiscal Period: 395,798 units(ii) Number of treasury units at end of period:
16th Fiscal Period:– units
15th Fiscal Period:– units(Note) Please refer to “Notes to Per Unit Information” on page 28 for the number of investment units used as the basis for calculating
the net income per unit.
*Explanation on the Appropriate Use of the Management Status Forecasts, and Other Matters of Special Note
The forecast figures set forth herein are the current prospects based on information currently available to the Investment Corporation andcontain elements of uncertainty. Accordingly, the actual operating revenue, operating income, ordinary income, net income anddistribution amount per unit may vary due to changes in the status. Moreover, the forecasts set forth herein should not be construed as aguarantee of distribution amounts. For details on the assumptions underlying the forecast figures above, please refer to “2. Management
Policy and Management Status; 2.2. Management Status; Assumptions for the Management Status Forecasts for the 17th Fiscal Period
and 18th Fiscal Period” on page 10.

-2-Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

1. Affiliated Juridical Persons of the Investment Corporation
Disclosure is omitted because there are no significant changes from the “Structure of the Investment Corporation”
set out in the most recent periodic securities report (yuka shoken hokokusho) (submitted on August 26, 2013).

2. Management Policy and Management Status
2.1. Management Policy
Disclosure is omitted because there are no significant changes from the “Investment Policy,” “Investment
Target” and “Distribution Policy” set out in the most recent periodic securities report (yuka shoken hokokusho)(submitted on August 26, 2013) as at the date of this document.
2.2. Management Status(1) Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Daiwa Office Investment Corporation (former name DA Office Investment Corporation) (the “Investment
Corporation”) was established on July 11, 2005 in accordance with the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate AssetManagement Co., Ltd. (former name K.K. daVinci Select) (the “Asset Manager”) as the organizer. After its
establishment, the Investment Corporation implemented an additional issuance of investment units through apublic offering (99,600 units) on October 18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE)Real Estate Investment Trust Section (stock code: 8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price),
subsequent activities, such as additional acquisition of properties and replacement of portfolio properties,
resulted in the assets under management amounting to 352,786 million yen as of the last day of November
2013.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets
based on a clear portfolio development policy of specializing in investment in office buildings, with aparticular focus on investment in a total floor area of more than about 2,000m2 situated in downtown Tokyo,
as well as through dedicated efforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment (from June 2013 to November 2013)
Japanese economy during the fiscal period under review saw a recovery trend as business sentiment andcorporate performances primarily in export-related companies improved in line with the depreciation of yen
and rise in stock prices, against the backdrop of economic policies centering on the financial policies promotedby the Abe administration and a large-scale monetary easing policy implemented by the Bank of Japan.
Furthermore, other trends such as the recovery in personal consumption and improvement of employment
signaling economic expansion have been observed.
In the office building leasing market in central Tokyo, the vacancy rate peaked out in June 2013 as new
supplies slowed down and dropped to as low as 7.52% at the end of November 2013. Led by improvement in
the vacancy rate for large buildings, the overall vacancy rates including small to middle sized buildings are on
an improving trend. On the other hand, the office rent for the market as a whole was on a slight downward
trend although rent increases were seen for large buildings in some areas. For the office building transaction
market, an appetite for property acquisitions continued to be strong among real estate companies and funds(including J-REITs) with the continuing favorable equity procurement environment and proactive lending
attitude by financial institutions backed by the forecast of an increase in property prices in accordance withexpectations for economic recovery.
b. Management Performance
In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sales ofproperties) over the medium to long term, the Investment Corporation continued to work on “external
growth,” which aims to boost revenue through acquisition of properties, and “internal growth,” which aims tomaximize income generating from existing properties.
Concerning external growth, the Investment Corporation acquired “Tosen Dogenzaka Daini Building”(acquisition price: 4,500 million yen) in July 2013, “Akasaka Business Place” (acquisition price: 9,200
million yen) in August 2013 and “Nisseki Shibuya Building” (acquisition price: 7,000 million yen) in-3-Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
September 2013. As a result, the Investment Corporation’s assets under management as of the end of the 16th
Fiscal Period (November 30, 2013) totaled 44 properties, the sum total of acquisition prices of whichamounted to 352,786 million yen.
Concerning internal growth, while the office leasing market weakened, the Investment Corporation
conducted proactive leasing such as taking in the need for floor expansion through strengthening relationshipwith the existing tenants, reinforcing collaboration with leasing brokers and property managers. As a result,the occupancy rate as of the end of the 16th Fiscal Period (November 30, 2013) was 96.3%, up 1.3 points
from the previous fiscal period.
C. Overview of Capital Procurementa. Status of Interest-Bearing Liabilities(i) Procurement of Capital for New Property Acquisitions
In the 16th Fiscal Period, the Investment Corporation made the following borrowings to fund the acquisitionof Tosen Dogenzaka Daini Building, Akasaka Business Building and Nisseki Shibuya Building.
• A total amount of 4,600 million yen was borrowed from Sumitomo Mitsui Banking Corporation,
Development Bank of Japan Inc., Shinsei Bank, Ltd. and Higashi-Nippon Bank, Ltd. on July 3, 2013 tofund the acquisition of a new property (Tosen Dogenzaka Daini Building; July 3, 2013 delivery portion).
• A total amount of 9,400 million yen was borrowed from The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, The Bank of Fukuoka,
Ltd. and Tokio Marine & Nichido Fire Insurance Co., Ltd., on August 9, 2013 to fund the acquisition of anew property (Akasaka Business Place; August 9, 2013 delivery).
• A total amount of 7,400 million yen was borrowed from Mizuho Bank, Ltd., Mitsubishi UFJ Trust andBanking Corporation and Sumitomo Mitsui Trust Bank, Limited on September 27, 2013 to fund theacquisition of a new property (Nisseki Shibuya Building; September 27, 2013 delivery).
(ii) Procurement of Capital for Redemption of Investment Corporation Bonds (Refinancing)In the 16th Fiscal Period, the Investment Corporation made the following borrowings to fund theredemption of investment corporation bonds of which redemption date arrived.
• A total amount of 5,000 million yen was borrowed from Sumitomo Mitsui Banking Corporation and
Sumitomo Mitsui Trust Bank, Limited on June 21, 2013 to fund the redemption of 5,000 million yen of
the 2nd unsecured investment corporation bonds of which redemption date arrived on June 24, 2013.
(iii) Procurement of Capital for Repayment of Borrowings (Refinancing)In the 16th Fiscal Period, the Investment Corporation made the following borrowings to fund the repaymentof borrowings that were due for repayment.
• A total amount of 5,000 million yen was borrowed from Kansai Urban Banking Corporation on June 28,
2013 to fund the repayment of the 5,000 million yen borrowed from said bank that was due for repayment
on June 28, 2013.
• A total amount of 6,000 million yen was borrowed from Sumitomo Mitsui Trust Bank, Limited and The
Bank of Fukuoka on July 8, 2013 to fund the repayment of the total amount of 6,000 million yen
borrowed from said banks that was due for repayment on July 8, 2013.
• 2,000 million yen was borrowed from Shinsei Bank, Ltd. on July 31, 2013 to fund the repayment of the
2,000 million yen borrowed from said bank that was due for repayment on July 31, 2013.
• A total amount of 3,500 million yen was borrowed from The Bank of Fukuoka and ORIX Bank
Corporation on September 30, 2013 to fund the repayment of the total amount of 3,500 million yen
borrowed from said banks that was due for repayment on September 30, 2013.
• A total amount of 4,000 million yen was borrowed from Sumitomo Mitsui Banking Corporation,
Sumitomo Mitsui Trust Bank, Limited and Shinsei Bank, Ltd. on November 29, 2013 to fund therepayment of the total amount of 6,000 million yen borrowed from said banks that was due for repayment
on November 29, 2013.
(iv) Status of Interest-Bearing Liabilities at End of the Fiscal Period under Review
As a result of the above, the balance of interest-bearing liabilities outstanding as of the end of the 16th
Fiscal Period (November 30, 2013) stood at 147,700 million yen (short-term loans payable: 3,000 million
yen; long-term loans payable: 141,200 million yen; investment corporation bonds: 3,500 million yen). The-4-

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Periodbalance of the current portion of long-term loans payable stood at 33,900 million yen.
Concerning borrowing in the 16th Fiscal Period, the Investment Corporation made borrowings centeringon periods of between 5 years and 7 years, extending the average remaining period from 2.49 years (during
the 15th Fiscal Period) to 3.43 years (during 16th Fiscal Period). In addition, liabilities costs were loweredby reducing credit spread interest. Meanwhile, the Investment Corporation concluded the interest-rate swap
agreement in the 16th fiscal Period to fixate future interest payment for the total borrowing of 32,500
million yen in order to offset the risks of the possible increase of the interest rate.

List of Borrowings in the 16th Fiscal Period
LenderSumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Kansai Urban Banking Corporation
Kansai Urban Banking Corporation
Kansai Urban Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Shinsei Bank, Ltd.
The Higashi-Nippon Bank, Limited
The Bank of Fukuoka
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Ltd.
Shinsei Bank, Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Bank of Fukuoka
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
ORIX Bank Corporation
The Bank of Fukuoka
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Ltd.

Loan amount(million yen)
3,000
2,000
1,500
1,500
2,000
1,000
1,600
1,000
1,000
1,000
1,000
4,000
1,000
1,000
1,000
1,000
2,000
3,000
1,000
1,400
2,000
4,000
1,400
1,500
2,000
2,000
1,000
1,000

Drawdown
date
2013/6/21
2013/6/21
2013/6/28
2013/6/28
2013/6/28
2013/7/3
2013/7/3
2013/7/3
2013/7/3
2013/7/8
2013/7/8
2013/7/8
2013/7/31
2013/7/31
2013/8/9
2013/8/9
2013/8/9
2013/8/9
2013/8/9
2013/8/9
2013/9/27
2013/9/27
2013/9/27
2013/9/30
2013/9/30
2013/11/29
2013/11/29
2013/11/29

Repayment
date
2013/11/29
2013/11/29
2018/8/31
2019/8/30
2020/8/31
2018/8/31
2020/8/31
2020/11/30
2020/11/30
2018/8/31
2019/11/29
2020/5/29
2021/5/31
2021/8/31
2018/7/31
2018/8/31
2018/8/31
2020/8/31
2021/2/26
2021/5/31
2018/11/30
2021/3/31
2021/3/31
2019/2/28
2019/3/29
2014/9/17
2014/9/17
2020/11/30

Balance of Borrowings from Each Financial Institution (as of November 30, 2013)
End of the 16th Fiscal Period
Share
Lender(million yen)
Sumitomo Mitsui Banking Corporation
29,90020.74%
Sumitomo Mitsui Trust Bank, Limited
18,35012.73%Development Bank of Japan Inc.
17,75012.31%
Mizuho Bank, Ltd.
11,900
8.25%
Shinsei Bank, Ltd.
11,000
7.63%
Resona Bank, Ltd.
9,000
6.24%
Aozora Bank, Ltd.
6,000
4.16%
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
5,000
3.47%
Mitsubishi UFJ Trust and Banking Corporation
5,000
3.47%
-5-

Loan
period
0.4 years
0.4 years
5.2 years
6.2 years
7.2 years
5.2 years
7.2 years
7.4 years
7.4 years
5.2 years
6.4 years
6.9 years
7.8 years
8.1 years
5.0 years
5.1 years
5.1 years
7.1 years
7.6 years
7.8 years
5.2 years
7.5 years
7.5 years
5.4 years
5.5 years
0.8 years
0.8 years
7.0 years

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
Kansai Urban Banking Corporation
Mizuho Trust and Banking Co., Ltd.
The Bank of Fukuoka, Ltd.
ORIX Bank Corporation
The Gunma Bank, Ltd.
The Shizuoka Bank, Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Musashino Bank, Ltd.
The Higashi-Nippon Bank, Limited
The Hiroshima Bank, Ltd.
The Kagawa Bank, Ltd.
The 77 Bank, Ltd.
The Bank of Yokohama, Ltd.
The Yamaguchi Bank, Ltd.
Taiyo Life Insurance Company
Nippon Life Insurance Company
Fukoku Mutual Life Insurance Company
Total(Note 1) Share is rounded to two decimal places.
b. Rating Information (as of November 30, 2013)
Credit rating agency
Rating
R&I
A+

5,000

3.47%

4,500

3.12%

4,000

2.77%

2,500

1.73%

2,500

1.73%

2,000

1.39%

2,000

1.39%

1,500

1.04%

1,500

1.04%

1,000

0.69%

1,000

0.69%

1,000

0.69%

500

0.35%

500

0.35%

300

0.21%

300

0.21%

200

0.14%

144,200

100.00%

Outlook
Stablec. Shelf Registration
The Investment Corporation filed a shelf registration statement on April 3, 2012 as below.
Investment corporation bonds (excluding short-term investment corporation bonds)
Planned issue amount 100 billion yen
Planned issue period
From April 11, 2012 to April 10, 2014
Funds for acquisition of specified assets, repayment of loans, redemption of
investment corporation bonds (including short-term investment corporation
Use of funds
bonds), refund of leasehold and security deposits, and payment of repairs, etc.;
funds for working capital; etc.
D. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance forthe 16th Fiscal Period of 8,432 million yen in operating revenue, 3,677 million yen in operating income, 2,955
million yen in ordinary income and 2,959 million yen in net income.
Concerning distributions, to ensure that the amount equivalent to distributions from earnings would be
included in the amount of tax-deductible expenses based on application of special provisions for taxation of
corporation tax (Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957;
including amendments thereto) (the “Special Taxation Measures Act”)), the Investment Corporation decided to
distribute the entire amount of unappropriated retained earnings, excluding fractions of the distribution amount
per unit that are less than 1 yen. Accordingly, the Investment Corporation declared a distribution amount perunit of 7,478 yen.

-6-

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period(2) Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy ahead is expected to see the effects of various economic measures focused on financial
policy promoted by the Abe administration and large-scale monetary easing measures by the Bank of Japan aswell as pickup in overseas economies lead to moderate economic recovery through improvement in corporate
earnings, centering on public-investment-and exports-related companies, and recover in personal spending.
However, the rise in long-term interest rates, overseas economic / overseas financial market uncertainty, andthe change in demand impacted by the consumption tax hike may likely serve as downward risks on theJapanese economy and are thus thought to require attention.
In the office building leasing market, decrease in supply of newly-built buildings, undervalued rent,
improvement in employment and such stimulated demand resulting in lower vacancy rates. Moreover, amid
the improving supply and demand balance, further demand for office space in line with improvement ofcorporate earnings is expected, expected to result in a moderate rise in rents. In the office building transaction
market, the demand for property acquisitions by real estate companies and funds (including J-REITs) isthought to grow even stronger, backed by the favorable financing environment and expectations of rent
bottoming out.

-7-

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Under the office leasing market conditions described above, the tenant side is also expected to become more
selective with properties. Consequently, the Investment Corporation will carry out operational management
under the following policy with an aim to enhance the competitiveness of existing properties and thereby
increase the long-term EPS over the medium to long term.
(i) Maintain and raise occupancy rates
Concerning existing tenants, strive to reduce vacancy risks by improving the quality of buildings,
equipment and management system. In addition, concerning new tenants, strive to maintain and raiseoccupancy rates through the provision of services that are of higher satisfaction levels than competing
properties through proactive participation in the market.
(ii) Maintain and raise profitability
Aim to secure stable revenue over the medium to long term through further strengthening good
relationships with existing tenants, as well as proactively tapping the needs of new tenants by discerning
the market environment.
(iii) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of high tenantsatisfaction levels by implementing efficient operational management and reviewing systematicconstruction work by optimally leveraging the economies of scale achieved from proactively realizing
external growth.
b. Strategy for New Property Investments
The Investment Corporation will invest in office buildings that have a total floor area of about 2,000m2 or
more based on various external growth strategies, while maintaining a balance with the asset acquisition
environment and financing situation. In principle, considerations will focus on Tokyo as the investment target
area, but the Investment Corporation will also consider investing in competitive properties in cities other thanTokyo from a viewpoint of territorially-distributed investments.
As pipeline support, in addition to expanding its own information-sourcing channels, the Investment
Corporation will continue to search for properties that meet its investment criteria by proactively gathering
real estate transaction market information through greater collaboration with the Asset Manager and Sponsor
Group and utilizing the Group’s extensive network of clients, partners, etc.
In the 16th Fiscal Period, the Investment Corporation acquired “Tosen Dogenzaka Daini Building”,“Akasaka Business Place” and “Nisseki Shibuya Building” which is located in Tokyo. The Investment
Corporation believes that acquisition of these properties will contribute to further stabilization andenhancement of the portfolio. The Investment Corporation will continue to strive to acquire properties in linewith the investment strategy described above.
c. Financial Strategy
The Investment Corporation will conduct disciplined financial management of the following basic content.
(i) Control leverage by keeping the ratio of interest-bearing liabilities (LTV) to total assets within the rangeof 40% to 50% at maximum, taking into consideration also the real LTV, etc., as a principle.
(ii) Diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing
liabilities that shall become due during any single fiscal period as a principle.
(iii) Aim to have long-term loans account for at least 70% of total loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.
(v) Pursuant to its fund management rules, maintain stability in its financial standing by managing
necessary funds, such as the amount equivalent to distributions paid, separately from working capital.

-8-

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
C. Significant Subsequent Events
Not applicable.
D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 17th Fiscal Period (fiscal
period ending May 2014 (from December 1, 2013 to May 31, 2014)). For the assumptions underlying themanagement status forecasts, please refer to the “Assumptions for the Management Status Forecasts for the
17th Fiscal Period and 18th Fiscal Period” on page 10.

17th Fiscal Period (fiscal period ending May 2014 (from December 1, 2013 to May 31, 2014))
Operating revenue
8,441 million yen
Operating income
3,756 million yen
Ordinary income
2,986 million yen
Net income
2,984 million yen
Distribution amount per unit
7,540 yen
Distribution amount in excess of earnings per unit
0 yen
In addition, on the basis that the “Assumptions for the Management Status Forecasts for the 17th Fiscal
Period and 18th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following
management status for the 18th Fiscal Period (fiscal period ending November 2014 (from June 1, 2014 toNovember 30, 2014)).
18th Fiscal Period (fiscal period ending November 2014 (from June 1, 2014 to November 30, 2014))
Operating revenue
8,607 million yen
Operating income
3,786 million yen
Ordinary income
2,998 million yen
Net income
2,996 million yen
Distribution amount per unit
7,570 yen
Distribution amount in excess of earnings per unit
0 yen
(Note) The forecast figures above are the current forecasts calculated based on certain assumptions.
Accordingly, the actual operating revenue, operating income, ordinary income, net income,
distribution amount per unit and distribution amount in excess of earnings per unit may vary due tochanges in the status. Moreover, the forecasts set forth herein should not be construed as a guaranteeof distribution amounts.

-9-

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
Assumptions for the Management Status Forecasts for the 17th Fiscal Period and 18th Fiscal Period
Item
Assumptions• 17th Fiscal Period and 18th Fiscal Period:
Assets under
Assets under management are assumed to be the 44 properties held as of November 30,
management
2013.
• The actual number of properties may vary due to changes in the assets under management.
• Rent revenue from existing properties is calculated based on historical data and taking into
Operatingaccount variable factors.
revenue• It is assumed that there is no gain (loss) on sales of real estate properties.
• Expenses related to rent business, which constitute a major component of operating
expenses, are calculated based on historical data and taking into account variable factors.
• Repair expenses for buildings are recorded as expenses in the amount expected to benecessary in the respective fiscal period based on the medium to long term repair planestablished by the Asset Manager.
• Operating income from property leasing (excluding gain on sales of real estate properties)
Operatingafter deducting expenses related to rent business (including depreciation) is expected to be
expenses
4,656 million yen in the 17th Fiscal Period and 4,700 million yen in the 18th Fiscal Period.
• Consignment expenses are expected to be 667 million yen in the 17th Fiscal Period and 640
million yen in the 18th Fiscal Period.
• Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 698 million
yen in the 17th Fiscal Period and 801 million yen in the 18th Fiscal Period.
• Depreciation is expected to be 1,341 million yen in the 17th Fiscal Period and 1,350 million
yen in the 18th Fiscal Period.
• Non-operating expenses in the 17th Fiscal Period are expected to be 769 million yen, of
which the interest expenses, interest expenses on investment corporation bonds, andNon-operating
borrowing related expenses are expected to be 765 million yen.
expenses• Non-operating expenses in the 18th Fiscal Period are expected to be 787 million yen, of
which the interest expenses, interest expenses on investment corporation bonds, andborrowing related expenses are expected to be 782 million yen.
• The total amount of interest-bearing liabilities is assumed to be 147,700 million yen at theend of the 17th Fiscal Period and 147,700 million yen at the end of the 18th Fiscal Period.
• The assumption is that, in the 17th Fiscal Period, the 4,000 million yen in loans that is tobecome due for repayment on March 18, 2014, the 2,000 million yen in loans that is tobecome due for repayment on March 25, 2014 and the 8,900 million yen in loans that is toInterest-bearing
become due for repayment on March 31, 2014 will each be refinanced in the entire amount.
liabilities• The assumption is that, in the 18th Fiscal Period, the 19,000 million yen in loans that is tobecome due for repayment on July 8, 2014, the 3,000 million yen in loans that is to becomedue for repayment on September 17, 2014 will each be refinanced in the entire amount. The
assumption is that, early redemption is to be conducted for the 3,500 million yen of First
Series Unsecured Investment Corporation Bonds with early redemption clause byrefinancing in the entire amount on September 17, 2014
Number of• The number of investment units issued and outstanding is assumed to be the 395,798 units
investment units
issued and outstanding as of the date of submission of this document, and there is assumed toissued andbe no additional issuance of investment units through to November 30, 2014.
outstanding• 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.
Distribution amount•The distribution amount per unit may vary depending on a variety of factors, such as changes
per unitin the assets under management, changes in the rent revenue due to tenant changes and othercauses, and incurrence of unforeseen repairs.
Distribution amount• At present, there is no plan to make any distribution in excess of earnings (distribution
in excess of earnings
amount in excess of earnings per unit).
per unit- 10 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
Item

Other

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

2.3. Investment Risks
Disclosure is omitted because there are no significant changes from the “Part I: Fund Information; Section 1:
Fund Status; 3. Investment Risks” set out in the most recent periodic securities report (yuka shoken hokokusho)(submitted on August 26, 2013).

- 11 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

3. Financial Statements
3.1. Balance Sheets

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Deferred tax assets
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Other
Accumulated depreciation
Other, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Other in trust
Accumulated depreciation
Other in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment

15th Fiscal Period[As of May 31, 2013](Unit: thousand yen)
16th Fiscal Period[As of Nov. 30, 2013]

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

11,479,896
5,445,075
299,238－
289,694
7,426
108,600
17,629,931

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

3,073,746(1,367,157)
1,706,588
10,296(2,192)
8,103
7,422(5,593)
1,828－－－
12,302,226
2,457
75,848,965(15,550,718)
60,298,247
858,205(135,345)
722,860
861,301(399,705)
461,596
94,734(50,484)
44,2496,017(6,017)－
266,787,276
39,544342,374,979*1- 12 -*1

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits in trust
Long-term prepaid expenses
Deferred tax assets
Derivatives assets
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

15th Fiscal Period[As of May 31, 2013](Unit: thousand yen)
16th Fiscal Period[As of Nov. 30, 2013]

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

1,448
2,407,101
306,884
2,818
2,718,252

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

113,684
778,748
23,705－
10,020926,158
346,019,390

8,216
8,216
342,572,865

4,585
4,585
363,653,907

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

772,4173,000,000－
33,900,000
286,983811
96,308977,470
164,118
39,198,109

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

3,500,000
107,300,000
7,306,108
4,597,921
68,576
122,772,606
161,970,715

198,780,951

198,780,951

2,589,422
2,589,422
201,370,373

2,959,947
2,959,947
201,740,899(25,003)(25,003)
201,345,370
342,572,865(57,707)(57,707)
201,683,191
363,653,907*2- 13 -*2

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
3.2. Statements of Income

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

15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013](Unit: thousand yen)
16th Fiscal Period[From: June 1, 2013
To: Nov. 30, 2013]*1*1

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

8,367,068
65,001
8,432,069*1

3,499,437
634,585
16,654
61,07820,657
5,400
68,525
4,306,339
3,308,734*1

3,870,374
696,224
17,657
63,107
21,7175,400
80,5594,755,040
3,677,029

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

492,196
95,533
135,545
10,632733,9072,590,049－－
2,590,049
869
5874
2,589,175
247
2,589,422- 14 -

1,423
1,101
2,464
4,989

*2

522,251
53,609144,284
5,935
726,080
2,955,938
4,884
4,884
2,960,822
992
(6)
986
2,959,835
111
2,959,947

Daiwa Office Investment Corporation (8976) Financial Report for the 16th 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
Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of current period
Total valuation and translation adjustments
Balance at beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of current period
Total net assets
Balance at beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of current period- 15 -

15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013](Unit: thousand yen)
16th Fiscal Period[From: June 1, 2013
To: Nov. 30, 2013]

198,780,951

198,780,951*1－
198,780,951*1－
198,780,951

2,369,494

2,589,422(2,369,246)
2,589,175
219,928
2,589,422(2,589,310)
2,959,835
370,525
2,959,947

2,369,494

2,589,422(2,369,246)
2,589,175
219,928
2,589,422(2,589,310)
2,959,835
370,525
2,959,947

201,150,445

201,370,373(2,369,246)
2,589,175
219,928
201,370,373(2,589,310)
2,959,835
370,525
201,740,899(32,701)(25,003)

7,698
7,698
(25,003)(32,701)
7,698
7,698
(25,003)(32,704)(32,704)(57,707)(25,003)(32,704)(32,704)(57,707)

201,117,743

201,345,370(2,369,246)
2,589,175
7,698
227,626
201,345,370(2,589,310)
2,959,835(32,704)
337,821201,683,191

Daiwa Office Investment Corporation (8976) Financial Report for the 16th 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 amount15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]
Amount (yen)2,589,422,414
2,589,310,516[6,542]
111,898
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of
the amount equivalent to 90% of
its distributable earnings as
defined in Article 67-15 of the Act
on Special Measures Concerning
Taxation” but no more than theamount of earnings as specified in
Article 32, Item 1 of theInvestment Corporation’s articles
of incorporation, the Investment
Corporation decided the
distributions from earnings that itshall pay out shall be themaximum value of the integral
multiple of the number of units
issued and outstanding (395,798
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, theInvestment Corporation declared a
distribution amount of
2,589,310,516 yen. Furthermore,
the Investment Corporation shallnot distribute cash in excess ofearnings as stipulated in Article
32, Item 2 of its articles ofincorporation.

- 16 -

16th Fiscal Period[From: June 1, 2013
To: Nov. 30, 2013]
Amount (yen)2,959,947,688
2,959,777,444[7,478]170,244
Pursuant to the policy that “theInvestment Corporation shall
distribute an amount in excess of
the amount equivalent to 90% of
its distributable earnings as
defined in Article 67-15 of the Act
on Special Measures Concerning
Taxation” but no more than theamount of earnings as specified in
Article 32, Item 1 of theInvestment Corporation’s articles
of incorporation, the Investment
Corporation decided the
distributions from earnings that itshall pay out shall be themaximum value of the integral
multiple of the number of units
issued and outstanding (395,798
units) in an amount that is not inexcess of unappropriated retained
earnings. Accordingly, theInvestment Corporation declared a
distribution amount of
2,959,777,444 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 16th Fiscal Period
3.5. Statements of Cash Flows

15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds issuance costs
Interest income
Interest expenses(Increase) Decrease in operating accounts receivable(Increase) Decrease in consumption taxes refund receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
Repayments of tenant security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of investment corporation bonds redeemable
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 17 -*1(Unit: thousand yen)
16th Fiscal Period[From: June 1, 2013
To: Nov. 30, 2013]

2,590,049
1,281,373
8,536
(923)
587,730
31,498(248,781)(16,382)(68,851)(884)(53,374)
42,962(95,986)(103,539)
3,953,427
923(604,367)(887)
3,349,095

2,960,822
1,330,093
3,631(1,423)575,860(69,086)
248,781(26,739)
201,239
29,441
63,881
102,540(294,805)
72,5485,196,784
1,423(615,390)(960)
4,581,857(238,242)(17,500,043)(279)
311,407759,494(229,658)(289,821)(17,187,143)(25,556)(21,370,401)－
372,769
835,362(332,947)(5,404)(20,526,177)－－
21,700,000(5,481,250)－(2,369,894)
13,848,855
10,807
16,046,965
16,057,772*1

8,000,000(5,000,000)
38,900,000(17,500,000)(5,000,000)(2,588,480)
16,811,519
867,199
16,057,772
16,924,971

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
3.6. Notes to the Going Concern
Not applicable.
3.7. Notes to Significant Accounting Policies
1.
Accumulated depreciation(1) Property, plant and equipment (including trust assets)method for noncurrent assets
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as follows:
Buildings
2~64 years
Structures
4~56 years
Machinery and equipment
2~23 years
Tools, furniture and fixtures
5~18 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
2.
Accounting policies for
Investment corporation bonds issuance costs
deferred assets
Amortized using the straight-line method over the period up to
redemption.
3.
Accounting standards for
Accounting for fixed property tax, etc.
recording revenues and expenses
Concerning fixed property tax, city planning tax, depreciated asset tax,
etc. for owned real estate in trust, of the tax amount that has beenbroken down into installments, the method of accounting for the amountcorresponding to the concerned fiscal period as expenses related to rent
business is adopted.
Concerning the amount equivalent to fixed property tax, etc. for the
initial fiscal year that shall be borne by the Investment Corporation incorrelation with acquisitions of real estate or trust beneficial interest
that have real estate as assets in trust, the amount is not expensed but israther included in the cost of acquisition of the concerned real estate
property.
The amount equivalent to fixed property tax, etc. that was included in
the cost of acquisition of real estate properties in the 15th Fiscal Period
is 49,317 thousand yen and 16th Fiscal Period is 71,319 thousand yen.
4.
Hedge accounting approaches(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet therequirements for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate cap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge
risks stipulated in the Investment Corporation’s articles of incorporationin accordance with the Investment Corporation’s risk management
policy.
(4) Method for assessing the effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between thechange in aggregated amount of cash flow of the hedging instruments
and the change in aggregated amount of cash flow of the hedged items.
Interest rate swaps that meet the requirements for special accounting are
omitted from assessment of the effectiveness.

- 18 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
5.

Scope of funds in thestatements of cash flows

6.

Other significant mattersforming basis for preparation offinancial statements

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

3.8. Notes to Financial Statements
Concerning notes to lease transactions, securities, retirement benefits, tax-effect accounting and asset retirement
obligations, disclosure is omitted because there is no substantial need for such disclosure in the financial report(kessan tanshin).
[Notes to Balance Sheets]*1. Advanced depreciation amount for noncurrent assets acquired by government subsidies, etc.
15th Fiscal Period[As of May 31, 2013]
Buildings in trust
32,898 thousand yen

16th Fiscal Period[As of November 30, 2013]
Buildings in trust
32,898 thousand yen*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
15th Fiscal Period
16th Fiscal Period[As of May 31, 2013][As of November 30, 2013]
50,000 thousand yen
50,000 thousand yen- 19 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing

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

15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013](Unit: thousand yen)
16th Fiscal Period[From: June 1, 2013
To: Nov. 30, 2013]

7,519,690
95,3838,367,068
65,001
7,615,074

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

8,432,069
654,832
877,331
692,430
12,927251,073
1,328,912
52,8663,499,437

3,870,374

4,115,636

4,561,695

15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013](Unit: thousand yen)
16th Fiscal Period[From: June 1, 2013
To: Nov. 30, 2013]*2. Transactions with major unitholders

Transactions other than business transaction
Interest expenses on investment corporation bonds

48,527

48,102[Notes to Statements of Unitholders’ Equity]
15th Fiscal Period[From: Dec. 1, 2012
To: May 31, 2013]

16th Fiscal Period[From: June 1, 2013
To: Nov. 30, 2013]*1. Total number of investment units authorized andnumber of investment units issued and outstanding
Total number of investment units authorized
Number of investment units issued and outstanding

2,000,000 units

2,000,000 units

395,798 units

395,798 units[Notes to Statements of Cash Flows]*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the statements of cash flows(Unit: thousand yen)
15th Fiscal Period
16th Fiscal Period[From: Dec. 1, 2012
[From: June 1, 2013
To: May 31, 2013]
To: Nov. 30, 2013]
Cash and deposits
10,948,755
11,479,896
Cash and deposits in trust
5,109,017
5,445,075
Cash and cash equivalents
16,057,772
16,924,971- 20 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period[Notes to Financial Instruments](1) Matters Concerning Status of Financial Instruments(a) Policy for financial instruments
The Investment Corporation raises funds through bank borrowings, issuance of investment corporation bonds
and issuance of new investment units, etc. for the acquisition and repair of investment properties, the paymentsof dividends and the reimbursement of bank borrowings.
As for debt finance, the Investment Corporation focuses on lengthening maturities, fixing interest rates, anddispersing maturity dates in order to secure financial stability and avoid future fluctuation risk of interest rates.
The Investment Corporation manages surplus funds through safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks.
(b) Contents and risk of financial instruments and policies and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds
for the acquisition of investment properties (such as trust beneficial interest in real estate) and thereimbursement of current debts and bonds. While these debts and bonds are exposed to liquidity risk, theInvestment Corporation manages the risk by maintaining the LTV ratio at low levels, dispersing maturity dates,
maintaining the ratio of long-term debt to total debt at high levels, and diversifying lenders with particularfocus on domestic financial institutions.
Bank borrowings with floating interest rates are exposed to interest rate risk and the risk is controlled byusing derivative instruments (interest swap transaction).
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount ofcash flow of the hedging instruments and the change in aggregated amount of cash flow of the hedged items.
Interest rate swaps that meet the requirements for special accounting are omitted from assessment of theeffectiveness.
Enforcement and management of derivative transactions are carried out in accordance with the provisions
established by the basic policy of risk management.
Security deposits from tenants are exposed to liquidity risk upon tenants moving out and the Investment
Corporation reduces the risk by pooling funds to a certain degree.
Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) andare managed by limiting the terms to short durations and establishing credit rating level of counterparties, etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instrumentswith no available market price is determined by using price reasonably estimated. As various factors areincorporated into these calculations, the resulting value may differ if different assumptions are provided.
Furthermore, the contractual amounts of derivative transactions do not represent the market risk involved inthese derivative transactions.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values and their differences are as follows. Please note that the following table does
not include those for which discerning of fair value is recognized to be extremely difficult (please refer to (Note2)).
15th Fiscal Period [As of May 31, 2013](1) Cash and deposits(2) Cash and deposits in trust
Total assets(1) Short-term loans payable(2) Current portion of investment corporation bonds(3) Current portion of long-term loans payable(4) Investment corporation bonds(5) Long-term loans payable
Total liabilities
Derivative transactions (*)

Carrying amount
10,948,755
5,109,017
16,057,772－
5,000,000
32,400,000
3,500,000
87,400,000
128,300,000(39,478)- 21 -

Fair value
10,948,755
5,109,017
16,057,772－
5,005,500
32,400,577
3,500,000
87,010,905
127,916,982(39,478)(Unit: thousand yen)
Difference
－
－
－
－
5,500
577
－
(389,094)(383,017)－

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

16th Fiscal Period [As of November 30, 2013](1) Cash and deposits(2) Cash and deposits in trust
Total assets(1) Short-term loans payable(2) Current portion of investment corporation bonds(3) Current portion of long-term loans payable(4) Investment corporation bonds(5) Long-term loans payable
Total liabilities
Derivative transactions (*)

Carrying amount
11,479,896
5,445,075
16,924,971
3,000,000－
33,900,000
3,500,000
107,300,000
147,700,000(88,820)

Fair value
11,479,896
5,445,075
16,924,971
3,000,000－
33,902,829
3,500,000
107,324,155
147,726,984(88,820)(Unit: thousand yen)
Difference
－
－
－
－
－
2,829
－
24,15526,984－(*) The value of assets and liabilities arising from derivatives are indicated at net basis. The amount in parentheses
represents the net liability position.
(Note 1) Method of calculation of fair value of financial instruments and matters concerning derivatives.
Assets(1) Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value
and thus is stated at that book value.
Liabilities(1) Short-term loans payable; (3) Current portion of long-term loans payable; (5) Long-term loans payable
As those with floating interest rates reflect market interest rates within a short period of time and theInvestment Corporation’s credit capability does not differ markedly from the execution, the fair value isapproximately the same as the book value and thus is stated at that book value. Those with fixed interest rates,on the other hand, are based on the method of calculating by discounting the sum total amount of principal andinterest (*) by the reasonably estimated interest rate in the case that the same type of borrowings areundertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest ishandled together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions]below.)(2) Current portion of investment corporation bonds; (4) Investment corporation bonds
Concerning the fair value of investment corporation bonds issued by the Investment Corporation, as these arebased on floating interest rates and reflect market interest rates within a short period of time and theInvestment Corporation’s credit capability does not differ markedly from the execution, the fair value isapproximately the same as the book value and thus is stated at that book value.
Derivative transactions
Please refer to [Notes to Derivative transactions] below.
(Note 2) Financial products for which it is extremely difficult to estimate fair value.
(Unit: thousand yen)
15th Fiscal Period[As of May 31, 2013]

16th Fiscal Period[As of Nov. 30, 2013]

Tenant leasehold and security deposits
6,659,828
7,306,108
Tenant leasehold and security deposits in trust
4,374,420
4,597,921
Total
11,034,249
11,904,029
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited bylessees of rental properties are not subject to disclosure of market price because discerning of the market priceis recognized to be extremely difficult as future cash flows cannot be reasonably estimated due to there being
no fair value and difficulty in calculation of the actual deposit period.

- 22 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period(Note 3) Amount of redemption of monetary claims scheduled to be due after the settlement of accounts.
15th Fiscal Period [As of May 31, 2013](Unit: thousand yen)
Cash and deposits
Cash and deposits in trust
Total

Within 1 year

Within 2 years,
but over 1 year

10,948,755
5,109,017
16,057,772－－－

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

－
－
－

－
－
－

Over 5 years

－
－
－

－
－
－

16th Fiscal Period [As of November 30, 2013](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Cash and deposits

11,479,896

－

－

－

－

－

Cash and deposits in trust

5,445,075

－

－

－

－

－

16,924,971

－

－

－

－

－

Total

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

Over 5 years(Note 4) Amount of repayment of investment corporation bond and long-term loans payable scheduled to be due
after the settlement of accounts.
15th Fiscal Period [As of May 31, 2013](Unit: thousand yen)
Current portion of
investment corporation bonds
Current portion of
long-term loans payable
Investment corporation bonds
Long-term loans payable
Total

Within 1 year

Within 2 years,
but over 1 year

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

5,000,000

－

－

－

－

－

32,400,000

－

－

－

－

－

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

3,500,000
12,000,000
15,500,000

Over 5 years

16th Fiscal Period [As of November 30, 2013](Unit: thousand yen)
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

Over 5 years

Current portion of
investment corporation bonds
Current portion of
long-term loans payable

3,000,000

－

－

－

－

－

33,900,000

－

－

－

－

－

Investment corporation bonds

－

－

－

－

－

3,500,000

Long-term loans payable－

16,600,000

3,700,000

28,250,000

17,350,000

41,400,000

36,900,000

16,600,000

3,700,000

28,250,000

17,350,000

44,900,000

Total- 23 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
15th Fiscal Period [As of May 31, 2013]
Not applicable.
16th Fiscal Period [As of November 30, 2013]
Not applicable.
(2) Transactions for which hedge accounting is applied
15th Fiscal Period [As of May 31, 2013]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to
the principal provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are
as follows.
(Unit: thousand yen)Contract
amount,
etc.
Hedge
Main
Method ofType, etc. of
accounting
hedgedFair value
calculation of
Of which,
derivative transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
43,900,000
26,000,000(39,478) quoted by partner
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
27,350,000
27,350,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total
71,250,000
53,350,000(39,478)
16th Fiscal Period [As of November 30, 2013]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to
the principal provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are
as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of
accounting
hedgedFair value
calculation of
Of which,
derivative transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
quotedby partner
65,400,000
34,500,000 （88,820）
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans
32,350,000(*)
32,350,000
for interest
Fixed payablepayablerate swaps
Floating receivable
Total
97,750,000 66,850,000(88,820)(*) Since the derivative financial instruments qualifying for the special accounting for interest rate swaps areaccounted for as one transaction together with their hedged item, long-term loans payable, the fair value of thesederivatives is included in that of related long-term loans payable. (Please refer to “Notes to Financial Instruments(2) Matters Concerning Fair Value, etc. of Financial Instruments (Note 1) Liabilities (3) (5)”).

- 24 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period[Notes to Transactions with Related Parties](1) Transactions with related parties
15th Fiscal Period [From: December 1, 2012 To: May 31, 2013]
Name ofClassification company,etc.

Parentcompany

Location

Capital stockorBusiness
investments description
in capital

Daiwa
Chiyoda-ku,
247.3
SecuritiesTokyobillion yen
Group Inc.

Holdingcompany

Percentage ofAmount ofvoting rights, etc.
Balance at
Relationshipheld by related
Nature of transaction Accounting end of periodwith related
item
party (held in thetransaction (thousand(thousand
party
yen)
Investmentyen)
Corporation)
Payment of
Investment
interest
corporation
3,500,000(Held in the
expenses on
bonds
Investment
Provision of investment
Corporation)
48,527
corporation
capital
Other
Directly: 14.99%
bonds(current
20,304
Indirectly: 32.57%(Notesliabilities)
1 and 2)Of the amounts above, the amount of transaction does not include consumption tax, etc.
(Note 1) Issuance terms, etc. for investment corporation bonds were determined by conducting a multifaceted
analysis, including the disparity in the spread of investment corporation bonds of other similar investment
corporation bonds and the spread of senior bonds and subordinated bonds in the market (bank bonds) andverification from the spread of subordinated investment corporation bonds issued in the past in Japan.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning
conflict of interest in the internal rule of the Asset Manager.
16th Fiscal Period [From: June 1, 2013 To: November 30, 2013]
Name ofClassification company,etc.

Parentcompany

Location

Capital stockorBusiness
investments description
in capital

Daiwa
Chiyoda-ku,
247.3
SecuritiesTokyobillion yen
Group Inc.

Holdingcompany

Percentage ofAmount ofvoting rights, etc.
Balance at
Relationshipheld by related
Nature of transaction Accounting end of periodwith related
item
party (held in thetransaction (thousand(thousand
party
yen)
Investmentyen)
Corporation)
Payment of
Investment
interest
corporation
3,500,000(Held in the
expenses on
bonds
Investment
Provision of investment
Corporation)
48,102
corporation
capital
Other
Directly: 14.99%
bonds(current
19,358Indirectly: 32.57%(Notesliabilities)
1 and 2)Of the amounts above, the amount of transaction does not include consumption tax, etc.
(Note 1) Issuance terms, etc. for investment corporation bonds were determined by conducting a multifaceted
analysis, including the disparity in the spread of investment corporation bonds of other similar investment
corporation bonds and the spread of senior bonds and subordinated bonds in the market (bank bonds) andverification from the spread of subordinated investment corporation bonds issued in the past in Japan.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning
conflict of interest in the internal rule of the Asset Manager.
(2) Notes to parent company and significant affiliated companies
15th Fiscal Period [From: December 1, 2012 To: May 31, 2013]
Parent company’s information
Daiwa Securities Group Inc. (listed on the Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya
Stock Exchange)
16th Fiscal Period [From: June 1, 2013 To: November 30, 2013]
Parent company’s information
Daiwa Securities Group Inc. (listed on the Tokyo Stock Exchange and Nagoya Stock Exchange)- 25 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period[Notes to Investment and Rental Properties]
The Investment Corporation has rental office buildings, etc. (including land) in Tokyo and other regions. The carrying
amount, amount of increase (decrease) during period and fair value for these rental properties are as follows.
(Unit: thousand yen)
15th Fiscal Period
16th Fiscal Period[From: Dec. 1, 2012
[From: June 1, 2013
To: May 31, 2013]
To: Nov. 30, 2013]
Carrying amount
Balance at beginning of period

308,107,273

324,976,352

Amount of increase (decrease) during period

16,869,079

20,069,800

Balance at end of period

324,976,352

345,046,153

302,510,000

328,290,000

Fair value at end of period(Note 1) The carrying amount is the amount after accumulated depreciation is deducted from the cost of acquisition.
(Note 2) Of the amount of increase (decrease) for rental properties during the 15th Fiscal Period, the amount of
increase is mainly attributable to acquisition of shinyon curumu (9,650 million yen), Honshu Meieki (5,300
million yen), and Kamiooka Eye Mark (2,000 million yen), and the amount of decrease is mainly
attributable to depreciation (1,280 million yen). Of the amount of increase (decrease) for rental properties
during the 16th Fiscal Period, the amount of increase is mainly attributable to acquisition of Tosen
Dogenzaka Daini (4,500 million yen), Akasaka Business Place (9,200 million yen) and Nisseki Shibuya(7,000 million yen), and the amount of decrease is mainly attributable to depreciation (1,328 million yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by an external real estate appraiser.
The income (loss) for investment and rental properties are as presented in “Notes to Statements of Income.”- 26 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period[Segment Information, etc.](1) Segment Information
Segment information has been omitted because the Investment Corporation has no segment except the property
leasing business.
(2) Related Information
15th Fiscal Period [From: December 1, 2012 To: May 31, 2013]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one
segment are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excessof 90% of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plantand equipment located in Japan is in excess of 90% of the amount of property, plant and equipment onbalance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
16th Fiscal Period [From: June 1, 2013 To: November 30, 2013]① Information about products and services
Information about products and services has been omitted because net sales to external customers for one
segment are in excess of 90% of the operating revenue on statements of income.
② Information about geographical areas
A. Net sales
Information about net sales has been omitted because net sales to external customers in Japan are in excessof 90% of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plantand equipment located in Japan is in excess of 90% of the amount of property, plant and equipment onbalance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales to a single external customer
accounts for less than 10% of the operating revenue on statements of income.

- 27 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period[Notes to Per Unit Information]
15th Fiscal Period
16th Fiscal Period[From: Dec. 1, 2012
[From: June 1, 2013
To: May 31, 2013]
To: Nov. 30, 2013]
Net assets per unit
508,707 yen
509,560 yen
Net income per unit
6,541.66 yen
7,478.15 yen(Note 1) The net income per unit was calculated by dividing the net income by the daily weighted average number ofinvestment units issued and outstanding. The diluted net income per unit is not stated as there are no diluted
investment units.
(Note 2) The basis for calculating the net income per unit is as follows.
15th Fiscal Period
16th Fiscal Period[From: Dec. 1, 2012
[From: June 1, 2013
To: May 31, 2013]
To: Nov. 30, 2013]
Net income (thousand yen)
2,589,175
2,959,835
Amounts not attributable to common unitholders (thousand yen)――
Net income attributable to common investment units (thousand yen)
2,589,175
2,959,835
Average number of investment units during the period (unit)
395,798
395,798[Notes to Significant Subsequent Events]
Not applicable.

- 28 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
3.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
Number of investment units
Unitholders’ capitalissued and outstanding(million yen)(units)
Notes
Payment date
Description
Increase
Increase
Balance
Balance(Decrease)(Decrease)
Incorporation throughJuly 11, 2005
400
400
200
200 (Note 1)
private placement
Capital increase throughOctober 18, 2005
99,600100,000
49,49849,698 (Note 2)
public offering
Capital increase throughJuly 10, 2007
100,000
200,000
75,316125,015 (Note 3)
public offering
Capital increase by way of a
August 7, 2007
5,000
205,000
3,765
128,781 (Note 4)
third-party allotment
Capital increase by way of aJune 4, 2008
138,905
343,905
59,999188,780 (Note 5)
third-party allotment
Capital increase by way of a
July 1, 2009
51,893395,798
10,000198,780 (Note 6)
third-party allotment(Note 1) The Investment Corporation was incorporated at an issue price of 500,000 yen per unit.
(Note 2) The Investment Corporation issued new investment units through public offering at an issue price of 515,000
yen per unit (amount to be paid in: 496,975 yen) to procure funds for acquisition of properties to be acquired
upon listing, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of 781,060
yen per unit (amount to be paid in: 753,165 yen) to procure funds for acquisition of acquisition properties, etc.
(Note 4) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of
753,165 yen per unit (amount to be paid in: 753,165 yen) to fund part of acquisition of acquisition properties,
etc.
(Note 5) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of
431,949 yen per unit (amount to be paid in: 431,949 yen) to fund repayment of loans and redemption of
investment corporation bonds.
(Note 6) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of
192,705 yen per unit (amount to be paid in: 192,705 yen) to fund repayment of loans, capital expenditure toenhance property value, acquisition of property, etc.

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
4. Changes in Directors
4.1. Changes in Directors at the Investment Corporation
Not applicable.
4.2. Changes in Directors at the Asset Manager
Not applicable.

- 30 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

5. Reference Information
5.1. Investment Status
16th Fiscal Period(As of November 30, 2013)
Total amount owned
As a percentage of(million yen)
total assets(Note 1)(%)

Type of asset

Use

RegionReal estate (Note 2)

OfficeFive Central Wards of Tokyo

16,425

4.5

Five Central Wards of Tokyo

296,702

81.6

Greater Tokyo

21,657

6.0

Major Regional Cities

10,2612.8

345,04694.9

18,607

5.1

363,653

100.0

Trust beneficial
interest in real estate(Note 2)

OfficeTotal
Deposits and other assets
Total amount of assets (Note 3)[345,046][94.9](Note 1) The total amount owned is the carrying amount (the book value after deducting depreciation in the case ofreal estate and trust beneficial interest in real estate).
(Note 2) Additional acquisition of the compartmentalized ownership interest, etc. of “Sunline Building No. 7” wasmade in March 2013 and May 2013. For the additionally-acquired compartmentalized ownership, etc., it
was categorized and counted as real estate in the 15th Fiscal Period, but is categorized and counted as trust
beneficial interest in real estate in the 16th Fiscal Period in accordance with the additional trust conducted asof September 2013. Hereafter, all are treated accordingly.
(Note 3) The figures in parentheses [ ] under “Total amount of assets” shows the portion of the applicable asset that,in effect, corresponds to the holding of real estate properties. The amount of construction in progress(including construction in progress in trust) is not included in the amount of real estate and trust beneficial
interest in real estate.

- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
5.2. Investment Real Estate Properties (As of November 30, 2013)
5.2.1. Price and Investment Ratio of Investment Real Estate Properties
Acquisition
Type ofprice
specified
RegionProperty name

Estimated price Investment
ratio
at end of period(million yen)(%)
(Note 6)(Note 7)
14,900
4.0(million yen)(million yen)

(Note 4)
14,100(Note 5)
13,538

3,050

2,886

3,140

0.9

Daiwa Shibaura

8,265

8,081

7,470

2.3

Daiwa Minami-Aoyama

4,550

4,469

4,100

1.3

Daiwa Sarugakucho

3,190

3,260

3,160

0.9

Daiwa A Hamamatsucho (Note 8)

2,865

2,798

2,850

0.8

Daiwa Jingumae

2,800

2,720

2,100

0.8

Daiwa Shibadaimon

2,578

2,414

2,640

0.7

Daiwa Misakicho

2,346

2,191

2,450

0.7

Daiwa Shimbashi 510

2,080

2,123

2,400

0.6

Daiwa Tsukijiekimae

1,560

1,407

1,400

0.4

Daiwa Tsukiji

1,240

1,196

1,460

0.4

Daiwa Tsukiji 616

2,440

2,257

2,410

0.7

Daiwa Tsukishima

7,840

7,030

8,010

2.2

Nihombashi MS

2,520

2,470

2,480

0.7

Daiwa Azabudai

1,600

1,548

1,740

0.5

Daiwa Shibuya SS

3,930

3,783

3,840

1.1

7,420

7,101

7,130

2.1

4,620

4,509

4,590

1.3

3,460

3,344

3,100

1.0

asset
Daiwa Ginza
Daiwa Ginza Annex

Five
CentralWards of
Tokyo
(Note 1)

Carrying
amountDaiwa Nihombashi Honcho
Daiwa Ginza 1-chome
Daiwa Kyobashi
Sunline Building No. 7

Real estate

Trustbeneficial
interest inreal estate

2,910

2,881

2,640

0.8

Daiwa Onarimon

13,86013,571

13,600

3.9

Shinjuku Maynds Tower (Note 8)

133,800

130,627

113,000

37.9

SHIBUYA EDGE

5,900

5,777

4,260

1.7

Daiwa Kodenmacho

2,460

2,425

1,980

0.7

Daiwa Jimbocho

4,150

4,103

2,860

1.2

Daiwa Nishi-Shimbashi

5,000

4,997

4,710

1.4

Daiwa Kudan

4,000

3,913

2,920

1.1

Daiwa Kayabacho

5,600

5,507

6,460

1.6

Jimbocho Place

3,550

3,547

3,760

1.0

E SPACE TOWER

24,00023,923

27,100

6.8

Nihonbashi Hongokucho Tosei

1,721

1,706

1,850

0.5

shinyon curumu

9,650

9,969

10,3002.7

Tosen Dogenzaka Daini

4,500

4,539

4,750

1.3

Akasaka Business Place

9,200

9,290

10,400

2.6

Nisseki Shibuya

7,000

7,211

7,280

2.0

319,755

313,127

299,240

90.6

Total for Five Central Wards of Tokyo (36 properties)- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

Estimated price Investment
ratio
at end of period(million yen)(%)
(Note 6)(Note 7)3,340
1.0

Acquisition
price

Carrying
amount(million yen)(million yen)

(Note 4)(Note 5)

3,653

3,396

2,958

2,773

3,330

0.8

4,950

4,344

3,290

1.4

7,710

7,389

5,890

2.2

1,650

1,695

1,980

0.5

Kamiooka Eye Mark

2,000

2,057

2,070

0.6

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

22,921

21,657

19,900

6.5

4,810

4,777

2,780

1.4

5,300

5,484

6,370

1.5

10,11010,2619,150

2.9

RegionProperty name

Type ofspecifiedasset

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

Trust
beneficial
interest inreal estate

Trustbeneficial
interest inreal estate

Total (44 properties)
352,786
345,046
328,290100.0(Note 1) “Five Central Wards of Tokyo” means Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards.
(Note 2) “Greater Tokyo” means Tokyo excluding the Five Central Wards of Tokyo, Kanagawa, Chiba and Saitama
prefectures.
(Note 3) “Major Regional Cities” means Osaka area (i.e., Osaka, Kyoto and Hyogo prefectures), Nagoya area (Aichi,
Mie and Gifu prefectures) and ordinance-designated cities and core cities under the Local Autonomy Act.
(Note 4) Acquisition price is excluding acquisition costs, fixed property tax, city planning tax, consumption tax andlocal consumption tax.
(Note 5) Carrying amount is the book value after deducting depreciation as of November 30, 2013.
(Note 6) Estimated price at end of period is the price as of November 30, 2013 stated in appraisal reports prepared byreal estate appraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., Morii
Appraisal & Investment Consulting, Inc. and Japan Real Estate Institute in accordance with the articles ofincorporation of the Investment Corporation and the rules of The Investment Trusts Association, Japan.
(Note 7) Investment ratio is the acquisition price of each property expressed as a percentage of the total amount ofacquisition prices, rounded to one decimal place.
(Note 8) For Daiwa A Hamamatsucho Building and Shinjuku Maynds Tower, the figures are those pertaining to theInvestment Corporation’s ownership interest.

- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
5.2.2. Summary of Building and Leasing of Investment Real Estate
StructureandConstruction Leasable
RegionProperty namenumber of completion floor area
(Note 2)floors(Note 3)(Note 1)SRC
Daiwa Ginza
July 1963 8,246.64
B3 / 12F
SRC
Daiwa Ginza Annex
Aug. 1972 2,032.99
B3 / 8F
SRC
Daiwa Shibaura
Oct. 1987 9,626.38
B1 / 12FS / SRC
Daiwa Minami-Aoyama
Sept. 1990 2,715.54
B2 / 5F
SRC
Daiwa Sarugakucho (Note 8)
June 1985 3,657.43
8F
SRC
Daiwa A Hamamatsucho
July 1993 3,663.38
B2 / 10FRC
Daiwa Jingumae
Dec. 1997 2,198.61
B1 / 4F
SRC / RC
Daiwa Shibadaimon
Nov. 1996 2,386.02
B1 / 7F
S
Daiwa Misakicho (Note 8)
July 1996 2,137.53
8F
SRC
Daiwa Shimbashi 510
Apr. 1974 2,676.14
B1 / 8F
SRC
Daiwa TsukijiekimaeJan. 1996 2,659.59
10F
SRC
Daiwa Tsukiji
Jan. 1990 1,487.82
B1 / 7F
SRC
Daiwa Tsukiji 616
Mar. 1994 2,931.93
B1 / 9F
S
Daiwa Tsukishima
July 1996 8,426.85
5F
Five Central
SRC
Apr. 1993 2,850.81
Wards of Nihombashi MS
B2 / 7F
Tokyo
SRC
Daiwa Azabudai
Apr. 1984 1,697.38
B2 / 9F
SRC / S
Daiwa Shibuya SS
July 1977 2,969.11
B1 / 9F
SRC
Daiwa Nihombashi Honcho
Jan. 1964 7,418.61
B1 / 10F
SRC
Daiwa Ginza 1-chome
Jan. 1962 3,758.43
B2 / 11F
SRC
Daiwa Kyobashi
Oct. 1974 3,265.83
B1 / 8F
SRC
Sunline Building No. 7
Oct. 1987 2,690.90
B2 / 9F
SRC
Daiwa Onarimon
Apr. 1973 11,615.37
9F
S / SRC
Shinjuku Maynds Tower (Note 9)
Sept. 1995 45,544.00
B3 / 34FRC
SHIBUYA EDGE
Aug. 2006 2,480.65
B1 / 9F
SRC
Daiwa Kodenmacho
Mar. 1985 2,379.31
8F
S
Daiwa JimbochoMar. 1997 3,164.26
B1 / 8F
SRC
Daiwa Nishi-Shimbashi
July 1993 4,815.84
B1 / 10F
SRC
Daiwa Kudan
Mar. 1987 2,882.61
9F
S / SRC
Daiwa Kayabacho (Note 8)
Apr. 2010 5,899.11
B1 / 8F- 34 -

Leasedfloor area
(Note 4)

Rent revenue
Total
Occupancy
duringnumber of
ratecurrent period
tenants(%)(thousand yen)
(Note 5)(Note 6)(Note 7)

7,166.43

23

86.9

350,6222,032.99

7

100.0

92,652

8,688.07

55

90.2

227,3212,556.80

5

94.1

119,339

3,657.43

1

100.0

-

3,663.38

13

100.0

136,723

2,198.61

4

100.0

69,4492,386.02

7

100.0

88,0072,137.53

1

100.0

-

2,660.926

99.4

80,1032,659.59

6

100.0

12,6791,487.82

5

100.0

47,8832,931.93

9

100.0

75,837

8,426.853

100.0

287,0312,850.81

9

100.0

81,598

1,697.38

10

100.0

51,5802,969.11

12

100.0

115,2037,224.43

13

97.3

181,904

3,694.84

12

98.3

121,299

3,265.83

9

100.0

91,3592,690.90

8

100.0

90,675

11,615.37

9

100.0

355,233

43,615.82

36

95.7

2,337,660

2,480.65

5

100.0

76,2952,379.31

8

100.0

62,4103,164.26

7

100.0

89,8384,815.84

12

100.0

143,984

2,882.61

7

100.0

76,0085,899.11

1

100.0

-

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
Structure
Rent revenue
Total
OccupancyandConstruction Leasable
duringLeasednumber of
rate
RegionProperty namenumber of completion floor area floor area
current period
tenants(%)(Note 2)(thousand yen)floors(Note 3)(Note 4)(Note 5)(Note 6)(Note 1)
(Note 7)
S
Feb. 2010 2,889.34
2,889.34
7
100.0
107,665
Jimbocho Place
9F
S / SRCE SPACE TOWER
Oct. 2002 13,960.87 13,960.87
7
100.0
770,024
B1 / 15F
S
2,143.08
6
100.0
61,352
Nihonbashi Hongokucho Tosei
May 2010 2,143.08
8F
S / RC
4,564.64
13
67.5
123,800
shinyon curumu
Jan. 2012 6,756.45
B2 / 11F
SRC
4,144.90
5
100.0
121,418
Tosen Dogenzaka DainiMar. 1988 4,144.90
B1/11F
SRC
Akasaka Business Place
Sept. 1990 8,789.84
8,408.13
14
95.6
196,995
B2/7F
S
Nisseki Shibuya (Note 8)
Dec. 1988 6,327.95
6,327.95
1
100.0
B1/12F203,291.50 196,339.55
356
96.5
7,287,192
Total for Five Central Wards of Tokyo (36 properties)
S
Jan. 1992 5,378.02
Daiwa Kinshicho
5,378.02
6
100.0
134,187
B1 / 5F
SRC / S
Daiwa Higashi-Ikebukuro
June 1993 4,589.17
4,589.17
6
100.0
137,934
B1 / 9FS / SRC
Benex S-3
Feb. 1994 7,470.18
6,994.39
24
93.6
149,189
B1 / 12F
Greater
SRC
Tokyo
Daiwa Shinagawa North
July 1991 6,549.98
6,549.98
13
100.0
191,275
B1 / 11F
S / RCWest Park Osaki
Sept. 2007 1,786.58
1,786.58
5
100.0
58,814
B1 / 6F
S / SRC
Kamiooka Eye MarkMay 2011 2,630.30
2,427.21
8
92.2
80,566
B3 / 7F
Total for Greater Tokyo (6 properties)
28,404.23 27,725.35
62
97.6
751,968
SRC
Major
Sept. 1986 5,719.54
Daiwa Minami-Senba
5,719.546
100.0
120,915
B1 / 8F
Regional
S
Honshu Meieki
Dec. 1997 7,461.90
Cities
6,073.02
18
81.3
206,991
12F
Total for Major Regional Cities (2 properties)
13,181.44 11,792.56
24
89.4
327,907
Total (41 properties)
244,877.17 235,857.46
442
96.3
8,367,068(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 agreements andsuch executed with end-tenants as of November 30, 2013. For Nisseki Shibuya, a fixed amount of rent isbeing paid based on a master lease agreement, the concerned tenant is regarded as the end-tenant andindicated as so. Hereafter, all are treated accordingly.
(Note 5) “Total number of tenants” is the number of end-tenants (Properties excluding Daiwa Ginza and Daiwa Ginza
Annex have a master lease agreement). When there is a tenant occupying multiple buildings, the concerned
tenant is counted and stated for each individual building.
(Note 6) “Occupancy rate” is the figure arrived at when leased floor area is divided by leasable floor area, rounded
down to one decimal place.
(Note 7) “Rent revenue during current period” is rent income, common area charges income, parking lot income andother income generated from the applicable investment real estate property during the 16th Fiscal Period,
rounded down to the nearest thousand yen.

- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period(Note 8) Not shown for such reasons as consent was not obtained from major tenants to disclose the rent revenue
during current period for the properties.
(Note 9) 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 16th Fiscal Period
5.2.3. Capital Expenditures for Assets under Management
A. Capital Expenditures for 16th Fiscal Period
The following are the principal capital expenditures arising from renovation construction work, etc. currently
planned for existing portfolio properties. Please note that the expected construction amount includes portions thatare expensed as a separate account item of accounting costs.
Name of real estate properties(Location)

Upgrading of CVCF and

Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

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

Scheduled
implementation
periodPurposerenovation work fordisaster-prevention equipment

Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

Renovation work for central

Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

Coating work for steel parts ofShinjuku Maynds Tower(Shibuya-ku, Tokyo)

Upgrading of main central

Shinjuku Maynds Tower(Shibuya-ku, Tokyo)

Renewal work for common area

supervisory system
atriumsupervisory system VAV andcontroller
for shops on B1F

From: Oct. 2013
To: Mar. 2015

406

1

5

From: Oct. 2013
To: Sept. 2015

297

1

3

From: Sept. 2013
To: Mar. 2014

134

－

－

From: Oct. 2013
To: Sept. 2015

110

0

1

From: Dec. 2013
To: Apr. 2014

85

－

－

B. Capital Expenditures during 15th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented
during the 16th Fiscal Period. Capital expenditures for the 16th Fiscal Period amounted to 293 million yen and,
when combined with the 251 million yen in repair expenses charged to 16th Fiscal Period expenses, totals 544
million yen in construction work implemented.
Name of real estate properties(Location)
Shinjuku Maynds Tower(Shibuya-ku, Tokyo)
Daiwa Kinishicho Building(Koto-ku, Tokyo)
Sunline Building No. 7(Chiyoda-ku, Tokyo)

Purpose

PeriodRenovation work for common area
Maintenance work for multistory parking lot
equipment
Renovating 9F floor to office space

Other

Construction amount paid
(million yen)

From: Aug. 2013
To: Nov. 201339

From: Oct. 2013
To: Nov. 201314

From: Jul. 2013
To: Sept. 2013
From: Jun. 2013
To: Nov. 2013

13
226

Total

293

C. Reserve Amount for Long-Term Repair Plans (Reserve for Repairs)
The Investment Corporation sets aside the following reserve for repairs from cash flows during the fiscal period
for the payment of future major repairs.
(Unit: million yen)
12th
13th
14th
15th
16th
FiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscal period[From: June 1, 2011
To: Nov. 30, 2011]

Balance of reserve at
end of previous period
Amount of reserve incurrent period
Reversal of reserve incurrent period
Amount carried forward
to next period[From: Dec. 1, 2011
To: May 31, 2012][From: June 1, 2012
To: Nov. 30, 2012][From: Dec. 1, 2012
To: May 31, 2013][From: June 1, 2013
To: Nov. 30, 2013]

1,369

1,239

1,058

611

806

－

306

89

619

181

130

487

536

424

156

1,239

1,058

611

806

830

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

5.2.4. Summary of Estimated Price at End of Period (As of November 30, 2013)
Summary of Appraisal Report
Estimated price
DCF method
at end of period Direct capitalization method
Property nameDiscount Terminal(million yen)Price
Cap rate
Price
rate
cap rate(Note 1)(million yen)(%)(million yen)(%)(%)
14,90015,9004.2
14,400
4.0
4.4
Daiwa Ginza
3,140
3,200
4.1
3,080
3.9
4.3
Daiwa Ginza Annex
7,470
7,540
4.9
7,440
4.7
5.1
Daiwa Shibaura
4,100
4,180
4.5
4,010
4.3
4.7
Daiwa Minami-Aoyama
3,160
3,200
5.0
3,110
4.8
5.2
Daiwa Sarugakucho
2,850
2,880
4.6
2,840
4.4
4.8
Daiwa A Hamamatsucho (Note 2)
2,100
2,110
4.4
2,090
4.2
4.6
Daiwa Jingumae
2,640
2,710
4.5
2,610
4.3
4.7
Daiwa Shibadaimon
2,450
2,470
4.8
2,440
4.6
5.0
Daiwa Misakicho
2,400
2,450
4.7
2,340
4.5
4.9
Daiwa Shimbashi 510
1,400
1,460
5.0
1,370
5.0
5.2
Daiwa Tsukijiekimae (Note 3)
1,460
1,470
4.9
1,460
4.9
5.1
Daiwa Tsukiji
2,410
2,420
4.9
2,400
4.6
5.1
Daiwa Tsukiji 616
8,010
8,050
5.0
7,990
4.7
5.2
Daiwa Tsukishima
2,480
2,520
4.7
2,430
4.5
4.9
Nihombashi MS
1,740
1,780
4.5
1,700
4.3
4.7
Daiwa Azabudai
3,840
4,000
4.6
3,770
4.4
4.8
Daiwa Shibuya SS
7,130
7,490
4.6
6,980
4.3
4.8
Daiwa Nihombashi Honcho
4,590
4,840
4.4
4,480
4.1
4.6
Daiwa Ginza 1-chome
3,100
3,160
4.6
3,040
4.4
4.8
Daiwa Kyobashi
2,640
2,790
4.3
2,580
4.1
4.5
Sunline Building No. 7
13,60013,7004.4
13,500
4.2
4.6
Daiwa Onarimon
113,000
139,000
3.8
129,000
3.6
4.0
Shinjuku Maynds Tower (Note 4)
4,260
4,430
4.3
4,180
4.1
4.5
SHIBUYA EDGE
1,980
2,020
4.9
1,940
4.7
5.1
Daiwa Kodenmacho
2,860
3,030
4.9
2,790
4.9
5.1
Daiwa Jimbocho
4,710
4,840
4.7
4,650
4.5
4.9
Daiwa Nishi-Shimbashi
2,920
3,120
4.7
2,850
4.7
4.9
Daiwa Kudan
6,460
6,560
4.3
6,420
4.1
4.5
Daiwa Kayabacho
3,760
3,850
4.3
3,720
4.1
4.5
Jimbocho Place
27,10027,5004.1
26,6003.9
4.3
E SPACE TOWER
1,850
1,880
4.9
1,830
4.7
5.1
Nihonbashi Hongokucho Tosei
10,30010,600
4.2
10,200
4.0
4.4
shinyon curumu
4,750
4,900
4.4
4,680
4.2
4.6
Tosen Dogenzaka Daini
10,40010,6004.2
10,300
4.0
4.4
Akasaka Business Place
7,280
7,320
4.3
7,230
4.0
4.4
Nisseki Shibuya
3,340
3,380
5.2
3,320
5.0
5.4
Daiwa Kinshicho
3,330
3,400
5.1
3,300
4.9
5.3
Daiwa Higashi-Ikebukuro
3,290
3,350
5.5
3,230
5.3
5.7
Benex S-3
5,890
6,020
4.9
5,750
4.7
5.1
Daiwa Shinagawa North
1,980
2,000
4.7
1,970
4.5
4.9
West Park Osaki
2,070
2,070
5.5
2,070
5.3
5.7
Kamiooka Eye Mark- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
2,780
2,840
5.4
2,720
5.2
5.6
Daiwa Minami-Senba
6,370
6,510
5.1
6,310
5.1
5.3
Honshu Meieki
328,290359,540
341,120
Total(Note 1) “Estimated price at end of period” is the price as of November 30, 2013 stated in appraisal reports preparedby 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 thearticles of incorporation of the Investment Corporation and the rules of The Investment Trusts Association,
Japan.
(Note 2) For Daiwa A Hamamatsucho, the prices are those pertaining to the Investment Corporation’s ownershipinterest.
(Note 3) Discount rate for Daiwa Tsukijiekimae is the figure after the 6th fiscal year. (4.8% in and before the 3rd
fiscal year, 4.9% in 4th and 5th fiscal years.)(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 and priceindicated by the DCF method are the prices pertaining to the entire Property.

- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period
5.2.5. Status of Income (Loss), etc. of Individual Properties
The following table lists the status of income (loss), etc. of each property for the 16th Fiscal Period (from June
1, 2013 to November 30, 2013). Income (loss) information is presented in accordance with “3. Financial
Statements; 3.7. Notes to Significant Accounting Policies” outlined earlier.
RegionFive Central Wards of Tokyo
Daiwa
Ginza Annex

Daiwa
Shibaura

Daiwa
MinamiAoyama

Daiwa
Sarugakucho(Note 4)

Property name

Daiwa
Ginza

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

14,100

3,050

8,265

4,550

3,190

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

4.0

0.9

2.3

1.3

0.9

13,538

2,886

8,081

4,469

3,260

14,900

3,140

7,470

4,100

3,160

23

7

55

5

1

Leasable floor area (m2)8,246.64

2,032.99

9,626.38

2,715.54

3,657.43

Leased floor area (m2)

7,166.43

2,032.99

8,688.07

2,556.80

3,657.43

End of Nov. 2011

84.9

100.0

99.1

100.0

0.0

End of May 2012

86.9

100.0

98.3

100.0

100.0

End of Nov. 2012

94.3

100.0

98.8

100.0

100.0

End of May 2013

96.4

100.0

87.4

94.1

100.0

End of Nov. 2013

86.9

100.0

90.2

94.1

100.0

183

183

183

183

183

364,216

92,652

229,030

119,339－

350,622

92,652

227,321

119,339－

13,594

－

1,709

－

－

169,723

42,961

91,39639,906－

19,354

6,753

17,828

5,499－

Utilities expenses

34,1606,989

21,774

10,056－

Taxes and dues

27,615

9,100

19,208

11,692

－

455

108

429

155

－

6,348

1,730

7,035

888

－

Occupancy rate (%)
Leasing
information

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

Non-life insurance expenses
Repair expenses

69,946

18,27825,12011,614－

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

11,841－－－－

194,492

49,691

137,634

79,432－

264,439

67,969

162,754

91,04685,568

Capital expenditures (F) (thousand yen)

8,357

1,849

12,5109,728－

256,081

66,120150,244

81,31885,568

46.60

46.37

39.91

33.44

－

55,191

18,05337,88522,923

13,299128,190

34,770218,640

111,190

162,170

Depreciation (C)NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]Annualamount of fixed property tax, etc.
Referenceforfiscal2013 (thousand yen)
information
Estimated long-term repair expenses(thousand yen) (Note 2)- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

RegionFive Central Wards of Tokyo
Daiwa
Jingumae

Daiwa
Shibadaimon

Daiwa
Misakicho(Note 4)

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

0.8

0.8

0.7

0.7

0.6

2,798

2,720

2,414

2,191

2,123

2,850

2,100

2,640

2,450

2,400

Daiwa
Shimbashi 510

13

4

7

1

6

Leasable floor area (m2)

3,663.38

2,198.61

2,386.02

2,137.53

2,676.14

Leased floor area (m2)

3,663.38

2,198.61

2,386.02

2,137.53

2,660.92

End of Nov. 2011

100.0

78.5

100.0

100.0

97.4

End of May 2012

100.0

100.0

78.0

100.0

99.7

End of Nov. 2012

100.0

100.0

100.0

100.0

99.7

End of May 2013

100.0

100.0

100.0

100.0

99.7

End of Nov. 2013

100.0

100.0

100.0

100.0

99.4

183

183

183

183

183

136,723

69,44988,007－

81,903

136,723

69,44988,007－

80,103

－

－

－

－

1,800

74,421

28,10832,673－

26,717

10,648

4,222

6,884

－

5,611

Utilities expenses

11,226

6,465

9,081

－

7,638

Taxes and dues

8,640

6,302

6,249

－

5,562

197

85

118

－

117

Repair expenses

1,897

774

832

－

1,172

Depreciation (C)Occupancy rate (%)
Leasing
information

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

Non-life insurance expenses

12,410

10,251

9,507

－

6,615

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

29,4007－－－62,302

41,341

55,334－55,18674,71351,59364,842

68,81461,802

Capital expenditures (F) (thousand yen)

1,742

3,317

1,273

5,372

3,947

NCF [(E) – (F)] (thousand yen)

72,97048,27563,56863,44257,854

54.43

40.47

37.13

－

32.62

17,037

12,604

12,162

10,293

11,087

115,840

84,98098,390129,500

117,390

Expense rate (%) [(B) ÷ (A)]Annualamount of fixed property tax, etc.
Referenceforfiscal2013 (thousand yen)
information
Estimated long-term repair expenses(thousand yen) (Note 2)- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

RegionFive Central Wards of Tokyo

Property name

Daiwa
Tsukijiekimae

Acquisition dateJan. 2006

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

Daiwa
Tsukiji

Daiwa
Tsukiji 616

Daiwa
Tsukishima

Nihombashi
MSJan. 2006

Mar. 2006

Mar. 2006

May 2006

1,560

1,240

2,440

7,840

2,520

0.4

0.4

0.7

2.2

0.7

1,407

1,196

2,257

7,030

2,470

1,400

1,460

2,410

8,010

2,480

6

5

9

3

9

Leasable floor area (m2)2,659.59

1,487.82

2,931.93

8,426.85

2,850.81

Leased floor area (m2)2,659.59

1,487.82

2,931.93

8,426.85

2,850.81

End of Nov. 2011

100.0

100.0

100.0

100.0

100.0

End of May 2012

Occupancy rate (%)
Leasing
information

0.0

100.0

89.7

100.0

100.0

End of Nov. 2012

0.0

100.0

100.0

100.0

100.0

End of May 2013

10.3

100.0

100.0

100.0

100.0

End of Nov. 2013

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

12,70947,88375,837

287,031

81,59812,67947,88375,837

287,031

81,598

30

－

－

－

－

51,444

19,411

43,161

132,781

46,76819,384

3,734

5,164

12,761

5,336

Utilities expenses

4,030

3,533

8,003

31,403

7,224

Taxes and dues

5,033

3,824

6,680

13,213

6,556

96

59

130

319

135

Repair expenses

8,724

1,158

2,904

20,576

15,819Depreciation (C)14,175

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

Non-life insurance expenses

7,100

20,27754,506

11,696

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

－

－

－

－

－

(38,735)

28,472

32,676

154,250

34,83035,573

52,953208,756

46,526

Capital expenditures (F) (thousand yen)

23,236

2,775

2,006

4,171

1,653

(47,796)

32,79750,947

204,585

44,873

－

40.54

56.91

46.26

57.32

10,007

7,589

13,194

26,427

12,941

114,750

49,77073,410331,450

139,000

NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]Annualamount of fixed property tax, etc.
Referenceforfiscal2013 (thousand yen)
information
Estimated long-term repair expenses(thousand yen) (Note 2)(24,560)- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

RegionFive Central Wards of Tokyo
Daiwa
Shibuya SS

Daiwa
Nihombashi
HonchoDaiwa
Ginza 1-chome

May 2006

May 2006

July 2006

July 2006

July 2006

Acquisition price (million yen)

1,600

3,930

7,420

4,620

3,460

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

0.5

1.1

2.1

1.3

1.0

1,548

3,783

7,101

4,509

3,344

1,740

3,840

7,130

4,590

3,100

Property nameAcquisition date

Daiwa
Azabudai

Daiwa
Kyobashi

10

12

13

12

9

Leasable floor area (m2)

1,697.38

2,969.11

7,418.61

3,758.43

3,265.83

Leased floor area (m2)

1,697.38

2,969.11

7,224.43

3,694.84

3,265.83

End of Nov. 2011

100.0

100.0

73.5

88.1

53.7

End of May 2012

Occupancy rate (%)
Leasing
information

100.0

87.0

85.2

96.9

88.6

End of Nov. 2012

80.2

100.0

97.6

98.8

100.0

End of May 2013

100.0

100.0

97.6

89.0

99.5

End of Nov. 2013

100.0

100.0

97.3

98.3

100.0

183

183

183

183

183

55,414

115,203

189,986

130,696

91,35951,580115,203

181,904

121,299

91,359

3,833

－

8,082

9,396

－

25,48750,484

71,637

46,694

48,244

4,990

5,489

10,160

8,237

6,331

Utilities expenses

4,459

11,534

16,657

8,158

9,955

Taxes and dues

4,812

9,276

11,692

7,784

6,948

87

140

297

147

140

Repair expenses

3,170

7,465

3,171

2,338

7,046

Depreciation (C)7,967

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

Non-life insurance expenses

16,29929,65720,02817,821Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

－

279

－

－

－

29,92664,718118,349

84,001

43,11437,89481,017148,006

104,02960,936

Capital expenditures (F) (thousand yen)

4,399

457

283

1,091

13,248

NCF [(E) – (F)] (thousand yen)

33,49480,560147,723

102,938

47,688

45.99

43.82

37.71

35.73

52.81

9,605

18,51722,961

15,567

13,79867,880113,840

116,900

191,730

61,450

Expense rate (%) [(B) ÷ (A)]Annualamount of fixed property tax, etc.
Referenceforfiscal2013 (thousand yen)
information
Estimated long-term repair expenses(thousand yen) (Note 2)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

RegionFive Central Wards of Tokyo

Property nameSunlineBuilding No. 7(Note 5)Acquisition date

Oct. 2006

Acquisition price (million yen)

2,910

Investment ratio (%)

Shinjuku
Maynds Tower

SHIBUYAEDGE

Daiwa
Kodenmacho

Dec. 2006

July and Nov.
2007

July 2007

Aug. 2007

13,860133,800

5,900

2,460

Daiwa
Onarimon

0.8

3.9

37.9

1.7

0.7

2,881

13,571

130,627

5,777

2,425

2,640

13,600113,000

4,260

1,980

8

9

36

5

8

Leasable floor area (m )2,690.90

11,615.37

45,544.00

2,480.65

2,379.31

Leased floor area (m2)2,690.90

11,615.37

43,615.82

2,480.65

2,379.31

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

Occupancy rate (%)
Leasing
information

End of Nov. 2011

68.1

87.1

99.9

100.0

100.0

End of May 2012

88.4

100.0

99.9

100.0

100.0

End of Nov. 2012

100.0

100.0

98.3

100.0

100.0

End of May 2013

96.0

100.0

94.9

100.0

100.0

End of Nov. 2013

100.0

100.0

95.7

100.0

100.0

183

183

183

183

183

90,675355,233

2,337,670

76,54562,41090,675355,233

2,337,660

76,29562,410

－

－

10

250

－

45,465

123,606

1,126,254

43,26230,325

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

6,395

16,158

161,656

11,204

4,038

Utilities expenses

8,809

29,892308,690

7,448

5,583

Taxes and dues

13,46733,659247,226

7,272

3,595

3,947

110

86

Non-life insurance expenses

124

433

Repair expenses

5,732

13,78929,057684

7,733

Depreciation (C)10,93529,672367,976

16,541

8,465

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

－

－

7,700

－

822

45,210231,627

1,211,416

33,28332,08556,145261,299

1,579,392

49,82540,550Capital expenditures (F) (thousand yen)

16,684

3,242

87,537

1,100

4,070

NCF [(E) – (F)] (thousand yen)

39,461

258,056

1,491,855

48,72536,480

50.14

34.80

48.18

56.52

48.59

26,67367,268494,001

14,538

7,190

68,810236,800

2,502,610

48,29070,970

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

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

RegionFive Central Wards of Tokyo
Daiwa
NishiShimbashi

Daiwa
Kayabacho(Note 4)

Property name

Daiwa
Jimbocho

Acquisition dateMar. 2010

Aug. 2010

Sept. 2010

Mar. 2011

Mar. 2011

Acquisition price (million yen)

4,150

5,000

4,000

5,600

3,550

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

1.2

1.4

1.1

1.6

1.0

4,103

4,997

3,913

5,507

3,547

2,860

4,710

2,920

6,460

3,760

Daiwa
Kudan

Jimbocho
Place

7

12

7

1

7

Leasable floor area (m2)

3,164.26

4,815.84

2,882.61

5,899.11

2,889.34

Leased floor area (m2)

3,164.26

4,815.84

2,882.61

5,899.11

2,889.34

End of Nov. 2011

100.0

55.0

88.1

100.0

100.0

End of May 2012

20.6

79.6

88.0

100.0

100.0

Occupancy rate (%)
Leasing
information

End of Nov. 2012

86.7

80.7

100.0

100.0

100.0

End of May 2013

100.0

100.0

100.0

100.0

100.0

End of Nov. 2013

100.0

100.0

100.0

100.0

100.0

183

183

183

183

183

89,838143,984

76,008－

107,665

89,838143,984

76,008－

107,665

－

－

－

－

－

78,93685,757

48,126－

46,698

6,688

15,345

5,350

－

7,368

Utilities expenses

9,979

13,701

9,297

－

9,186

Taxes and dues

10,647

15,650

8,464

－

9,348

141

255

120

－

133

Repair expenses

26,873

730

565

－

953

Depreciation (C)24,604

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

Non-life insurance expenses

40,071

24,328－19,708Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

0

3

－

－

－

10,90258,22727,881－60,96735,507

98,29852,209148,33180,675

Capital expenditures (F) (thousand yen)

6,955

－

748

－

－

NCF [(E) – (F)] (thousand yen)

28,552

98,29851,461

148,33180,675

87.86

59.56

63.32

－

43.37

20,91230,996

16,87525,185

18,663126,090

187,140

141,450

38,44026,390

Expense rate (%) [(B) ÷ (A)]Annualamount of fixed property tax, etc.
Referenceforfiscal2013 (thousand yen)
information
Estimated long-term repair expenses(thousand yen) (Note 2) (Note 3)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

RegionFive Central Wards of Tokyo
Nihonbashi
Hongokucho
Tosei

E-SPACE
TOWER

Property nameshinyoncurumu(Note 6)

Tosen
Dogenzaka
Daini

AkasakaBusiness Place

Acquisition dateJuly 2011

May 2012

Dec. 2012 andApr. 2013

Jul. 2013

Aug. 2013

Acquisition price (million yen)

24,000

1,721

9,650

4,500

9,200

Investment ratio (%)

6.8

0.5

2.7

1.3

2.6

23,923

1,706

9,969

4,539

9,290

27,1001,850

10,3004,750

10,400

7

6

13

5

14

Leasable floor area (m )13,960.87

2,143.08

6,756.45

4,144.90

8,789.84

Leased floor area (m2)

13,960.87

2,143.08

4,564.64

4,144.90

8,408.13

End of Nov. 2011

100.0

－

－

－

－

End of May 2012

100.0

100.0

－

－

－

End of Nov. 2012

100.0

100.0

－

－

－

End of May 2013

100.0

100.0

55.9

－

－

End of Nov. 2013

100.0

100.0

67.5

100.0

95.6

183

183

183

151

114

770,024

61,352

149,999

121,418

197,006

770,024

61,352

123,800

121,418

196,995－－

26,199－11

243,793

25,590107,559

36,91263,54848,436

4,059

39,507

9,840

21,495Price
information Carrying amount (million yen)
Estimated price at end of period(million yen)
Number of tenants (Note 1)
2

Occupancy rate (%)
Leasing
information

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

Utilities expenses

63,924

3,853

14,675

10,94225,553

Taxes and dues

56,4794,433

17,765

8

13

698

83

349

189

288

Non-life insurance expenses
Repair expenses

10,172

－

100

1,073

1,560

Depreciation (C)63,72013,16035,14914,857

14,637

361

－

12

－

－

526,230

35,76142,43984,506

133,458

589,951

48,921

77,58999,363148,095

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)]Annualamount of fixed property tax, etc.
Reference
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)

6,228

－

－

1,671

3,242

583,723

48,921

77,58997,692

144,853

31.66

41.71

71.71

30.40

32.26

112,9228,856

35,420－－317,590

22,401

65,855230,176

430,612- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

Five Central
Wards ofTokyo

Greater Tokyo

Property name

NissekiShibuya(Note 4)

Daiwa
Kinshicho

Acquisition date

RegionDaiwa
Higashi-IkebukuroBennex S-3

Daiwa
ShinagawaNorth

Sept. 2013

Oct. 2005

Oct. 2005

May 2006

July 2007

Acquisition price (million yen)

7,000

3,653

2,958

4,950

7,710

Investment ratio (%)

2.0

1.0

0.8

1.4

2.2

7,211

3,396

2,773

4,344

7,389

7,280

3,340

3,330

3,290

5,890

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

1

6

6

24

13

Leasable floor area (m2)

6,327.95

5,378.02

4,589.17

7,470.18

6,549.98

Leased floor area (m2)

6,327.95

5,378.02

4,589.17

6,994.39

6,549.98

End of Nov. 2011

－

100.0

97.9

89.5

100.0

End of May 2012

－

100.0

90.1

96.6

100.0

End of Nov. 2012

100.0

Occupancy rate (%)
Leasing
information

－

100.0

100.0

88.0

End of May 2013

－

100.0

100.0

98.2

100.0

End of Nov. 2013

100.0

100.0

100.0

93.6

100.0

65

183

183

183

183

－

134,187

137,934

149,189

191,275－

134,187

137,934

149,189

191,275

－

－

－

－

－

－

86,742

66,23898,051122,052

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－

13,561

14,76818,875

15,075

Utilities expenses－

15,936

19,891

21,504

19,172

Taxes and dues－

11,970

8,773

15,242

18,628Non-life insurance expenses

－

265

253

394

376

Repair expenses－

15,977412

2,489

36,000Depreciation (C)－29,031

22,13839,54432,789

－

－

－

－

9

－

47,44571,695

51,137

69,222Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

59,141

76,476

93,834

90,682102,012

Capital expenditures (F) (thousand yen)－

30,365

11,497

8,310

910

59,141

46,11082,337

82,371

101,102

－

64.64

48.02

65.72

63.81

－

23,356

17,46830,48436,155416,816

285,600

141,210

402,880

191,640

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

Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period

RegionGreater Tokyo

Major Regional Cities

Property nameWest Park
Osaki

Acquisition date

Sept. 2012

Mar. 2013

Aug. 2007

Feb. 2013

Acquisition price (million yen)

1,650

2,000

4,810

5,300

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

0.5

0.6

1.4

1.5

1,695

2,057

4,777

5,484

1,980

2,070

2,780

6,370

Kamiooka Eye
Daiwa
Honshu Meieki
Mark
Minami-Senba

5

8

6

18

Leasable floor area (m2)

1,786.58

2,630.30

5,719.54

7,461.90

Leased floor area (m2)

1,786.58

2,427.21

5,719.54

6,073.02

End of Nov. 2011

－

－

91.7

－

End of May 2012

－

－

100.0

－

End of Nov. 2012

100.0

－

92.7

－

End of May 2013

100.0

100.0

100.0

85.4

End of Nov. 2013

100.0

92.2

100.0

81.3

183

183

183

183

58,81480,651

120,915

206,991

58,81480,566

120,915

206,991

－

85

－

－

25,54029,551

69,992

77,223

3,697

5,762

13,342

26,310Utilities expenses

4,530

5,603

13,557

15,428

Taxes and dues

3,949

4

10,603

0

74

139

252

440

Repair expenses

2,331

336

696

320

Depreciation (C)10,957

Occupancy rate (%)
Leasing
information

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

Non-life insurance expenses

17,70531,541

34,721Other lease business expenses
Operating income (loss) from property
leasing (D) [(A) – (B)] (thousand yen)
NOI (E) [(D) + (C)] (thousand yen)

－

－

－

－

33,274

51,10050,922

129,768

44,23268,80582,464

164,490

Capital expenditures (F) (thousand yen)

1,717

－

7,848

348

NCF [(E) – (F)] (thousand yen)

42,51468,80574,615

164,142

43.43

36.64

57.89

37.31

7,890

－

21,206－37,912

24,782

107,090

170,803

Expense rate (%) [(B) ÷ (A)]Annual amount of fixed property tax, etc.
Reference
information for fiscal 2013 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)(Note 1) Number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimatedto arise over the 12-year period from the 1st year to the 12th year as stated in the building investigation
diagnosis report.

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Daiwa Office Investment Corporation (8976) Financial Report for the 16th Fiscal Period(Note 3) Estimated long-term repair expenses of “Daiwa Kayabacho Building” are the total amount of repair
expenses and renewal expenses estimated to arise over the 10-year period from the 1st year to the 10th year
as stated in the building investigation diagnosis report.
(Note 4) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue,
etc. for the property.
(Note 5) Additional acquisition of compartmentalized ownership interest of “Sunline Building No. 7” was made inMarch 2013 and May 2013. Annual amount of fixed property tax, etc. for fiscal 2013 and estimatedlong-term repair expenses are shown without taking into consideration the additionally-acquiredcompartmentalized ownership interest portion.
(Note 6) “shinyon curumu Building” was acquired in December 2012 and April 2013. Annual amount of fixed
property tax, etc. for fiscal 2013 is shown for the December 2012 acquisition portion only.

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