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 27th Fiscal Period
Name of REIT Issuer:
Stock Code No.:
Representative:
Name of Asset Manager:
Representative:
Inquiries to:

Daiwa Office Investment Corporation
8976
Motoi Takahashi, Executive Director
Daiwa Real Estate Asset Management Co., Ltd.
Toshio Fukushima., President and Representative Director
Kentaro Azumi, Manager of Corporate Division

July 18, 2019
Stock Exchange Listing: TSE
URL: http://www.daiwa-office.co.jp

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:

TEL: +81-3-6215-9649
August 22, 2019
August 13, 2019

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 27th Fiscal Period
27th Fiscal Period: Fiscal period ended May 2019 (from December 1, 2018 to May 31, 2019)(1) Management[% figures show the period-over-period increase (decrease)]

Operating revenue
27th
Period26th
PeriodOperating income

Ordinary income

Net income¥13,833 million

4.8%¥6,979 million

6.8%¥6,320 million

7.1%¥6,320 million

7.1%¥13,193 million(1.8%)¥6,535 million(2.1%)¥5,902 million

0.2%¥5,901 million

0.2%

Net income
per unit
27th
Period26th
PeriodNet income tounitholders’ equity

Ordinary income tototal assets

Ordinary income tooperating revenue¥12,848

2.5%

1.3%

45.7%

¥11,997

2.3%

1.2%

44.7%

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

Total distribution
amount(excluding distribution
amount in excess ofearnings)

Distribution
amountin excess ofearnings
per unit

Total
distribution
amountin excess ofearnings

Dividend
payoutDistribution
amount to
net assets

27th¥12,559¥6,177 million¥0¥– million
97.8%
2.4%
Period26th¥11,997¥5,901 million¥0¥– million
100.0%
2.3%
Period(Note) Distribution amount per unit for the 27th Fiscal Period is calculated by dividing the amount obtained by deducting
provision of reserve for reduction entry (¥142 million) from unappropriated retained earnings by the total number ofinvestment units issued and outstanding. The main difference between distribution amount per unit and net income
per unit is due to the calculation.

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This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(3) Financial Position
27th
Period26th
PeriodUnitholders’ equity tototal assets

Net assets
per unit

Total assets

Net assets¥485,636 million¥254,460 million

52.4%¥517,324¥479,212 million¥254,124 million

53.0%¥516,641(4) Cash FlowsNet cashprovided by (used in)operating activities
27th
Period26th
PeriodNet cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period¥22,979 million(¥15,746 million)(¥400 million)¥30,143 million¥7,612 million(¥20,888 million)¥4,515 million¥23,310 million

2. Management Status Forecasts for the 28th Fiscal Period and 29th Fiscal Period
28th Fiscal Period: Fiscal period ending November 2019 (from June 1, 2019 to November 30, 2019)29th Fiscal Period: Fiscal period ending May 2020 (from December 1, 2019 to May 31, 2020)[% figures show the period-over-period increase (decrease)]

Operating revenue
28th
Period29th
PeriodOperating income

Net income¥14,024 million

1.4%¥7,058 million

1.1%¥6,396 million

1.2%¥6,394 million

1.2%¥13,979 million(0.3%) ¥7,138 million

1.1%¥6,495 million

1.5%¥6,493 million

1.5%

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

28th
Period29th
PeriodOrdinary income

Distribution amount in excess of earnings per unit

¥13,000¥0¥13,200¥0(Reference) Estimated net income per unit for the 28th Fiscal Period: ¥13,000; 29th Fiscal Period: ¥13,200

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies due to amended accounting standards, etc.:
None(ii) Changes in accounting policies other than (i):None(iii) Changes in accounting estimates:None(iv) Retrospective restatement:
None(2) Total Number of Investment Units Issued and Outstanding(i) Total number of investment units issued and outstanding at end of period (including treasury units):
27th Fiscal Period: 491,877 units
26th Fiscal Period: 491,877 units(ii) Total number of treasury units at end of period:
27th Fiscal Period:– units
26th Fiscal Period:– units(Note) Please refer to “Notes to Per Unit Information” on page 26 for the number of investment units used as the basis for calculating the net
income per unit.
* This financial report (kessan tanshin) is exempt from the audit by a certified public accountant or an auditing company.
* Special note
The forecast figures are forward-looking statements based on information currently available to Daiwa Office Investment Corporation and involve
uncertainties. Accordingly, the actual operating revenue, operating income, ordinary income, net income and distribution amount per unit mayvary due to changes in the status. In addition, the forecast is not a guarantee of the distribution amount. For details on the assumptions underlying
the forecast figures above, please refer to “Assumptions for the Management Status Forecasts for the 28th Fiscal Period and 29th Fiscal Period” onpage 10.

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○ Table of Contents
1. Management Status ................................................................................................................................................ 4
1.1. Management Status.......................................................................................................................................... 4
1.1.1. Overview of the Fiscal Period under Review ............................................................................................ 4
1.2.2. Outlook for the Next Fiscal Period ............................................................................................................ 7
1.2. Investment Risks............................................................................................................................................ 11
2. Financial Statements ............................................................................................................................................ 122.1. Balance Sheets ............................................................................................................................................... 122.2. Statements of Income .................................................................................................................................... 14
2.3. Statements of Unitholders’ Equity ................................................................................................................. 15
2.4. Statements of Cash Distributions................................................................................................................... 17
2.5. Statements of Cash Flows .............................................................................................................................. 18
2.6. Notes to the Going Concern .......................................................................................................................... 19
2.7. Notes to Significant Accounting Policies ...................................................................................................... 19
2.8. Notes to Financial Statements ....................................................................................................................... 20
2.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding................................................ 27
3. Reference Information.......................................................................................................................................... 29
3.1. Investment Status ........................................................................................................................................... 29
3.2. Investment Real Estate Properties (As of May 31, 2019) ............................................................................... 30
3.2.1. Price and Investment Ratio of Investment Real Estate Properties ........................................................... 30
3.2.2. Summary of Building and Leasing of Investment Real Estate ................................................................ 32
3.2.3. Capital Expenditures for Assets under Management .............................................................................. 34
3.2.4. Summary of Estimated Price at End of Period (As of May 31, 2019) .................................................... 36
3.2.5. Status of Income (Loss), etc. of Individual Properties ............................................................................ 38-3-

1. Management Status
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 17, 2018).
1.1. Management Status
1.1.1. Overview of the Fiscal Period under Review
A. Brief History of the Investment Corporation
Investment Corporation was established on July 11, 2005 in accordance with the Act on Investment Trusts 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 a public
offering (99,600 units) on October 18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE) Real Estate
Investment Trust Section (stock code: 8976) on the following day.
Though initial assets under management were 79,573 million yen (sum total of acquisition price), subsequent
activities, such as additional acquisition of properties and replacement of portfolio properties, resulted in the assets
under management amounting to 460,076 million yen as of the last day of May 2019.
The Investment Corporation strives to secure stable revenue and sustained growth of the investment assets based ona clear portfolio development policy of specializing in investment in office buildings, with a particular focus on
investment in a total floor area of more than about 2,000 m2 situated in downtown Tokyo, as well as throughdedicated efforts to heighten tenant satisfaction levels.
B. Investment Environment and Management Performancea. Investment Environment
The Japanese economy during the fiscal period under review saw real GDP growth rate (Second Preliminary
Estimates) for January to March 2019 at an annual rate of 2.2%, falling after a temporary standstill in the recovery
trend that had continued for eight consecutive quarters under the ongoing quantitative/qualitative monetary easing
policy by the Bank of Japan.
In the office building leasing market in central Tokyo, the vacancy rate took a turn after peaking in June 2013,
dropping to 1.64% at the end of May 2019. Led by improvement in the vacancy rate for existing large buildings, theoverall vacancy rate that includes small- to medium-sized buildings also continues to be on an improving trend. The
drop in the vacancy rate has led to an increase in office rent in some areas, and the market as a whole continues to see
increase in rent, albeit slight.
For the office building transaction market, a strong appetite for property acquisitions continued among real estatecompanies, funds (including J-REITs) and overseas investors with the continuing proactive lending attitude byfinancial institutions.
b. Management Performance
In view of increasing the ordinary EPS (EPS (net income per unit) after deducting gain on sale from properties) overthe medium to long term, the Investment Corporation continued to work on “external growth,” which aims to boost
revenue through acquisition of properties, and “internal growth,” which aims to maximize income generating from
owned properties.
Concerning external growth, the Investment Corporation acquired “Sasazuka South Building” (acquisition price:
3,000 million yen in total) in December 2018 and “Glass City Harumi” (acquisition price: 11,200 million yen in total)in February 2019, while divesting “Daiwa Onarimon Building” (sale price: 13,700 million yen) in February 2019. As
a result, the Investment Corporation’s assets under management as of the end of the 27th Fiscal Period (May 31,2019) totaled 59 properties, the sum total of acquisition prices of which amounted to 460,076 million yen.
Concerning internal growth, while the office leasing market remained strong, the Investment Corporation
conducted proactive leasing, such as capturing needs for floor expansion within the same property throughstrengthening relationships with existing tenants and reinforcing collaboration with leasing brokers and property
managers. Consequently, the occupancy rate as of the end of the 27th Fiscal Period (May 31, 2019) was 97.1%.
C. Overview of Capital Procurementa. Procurement of Capital for the Acquisition of New Properties Repayment of Borrowings
In the 27th Fiscal Period, the Investment Corporation made the following borrowings to fund the acquisition of new
properties and the repayment of borrowings.
(i) The Investment Corporation took out loans of 3,000 million yen in total from Sumitomo Mitsui Banking
Corporation on December 27, 2018 to fund the acquisition of a new property (Sasazuka South Building)acquired on the same day.
(ii) The Investment Corporation took out loans of 11,000 million yen in total from Sumitomo Mitsui Trust Bank,
Ltd., MUFG Bank, Ltd., Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corporation on February 27, 2019
to fund the acquisition of a new property (Glass City Harumi) acquired on the same day.
(iii) The Investment Corporation took out loans of 6,000 million yen in total from The Bank of Fukuoka, Ltd.,MUFG Bank, Ltd. and The Gunma Bank, Ltd. on March 29, 2019 to fund the repayment of 6,000 million yen
in total borrowed from the same banks for the same amount that was due for repayment on the same day.

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(iv) The Investment Corporation took out loans of 4,500 million yen in total from The Musashino Bank, Ltd., The
Norinchukin Bank, The Hyakugo Bank, Ltd. and The Yamanashi Chuo Bank, Ltd. on May 31, 2019 to allocate
the fund to the following.
･ The Investment Corporation allocated the funds to cash on hand which was used to repay 2,500 million yen
in total borrowed from ORIX Bank Corporation and The Kagawa Bank, Ltd. that was due for repayment on
February 28, 2019.
･ The Investment Corporation allocated the funds to the repayment of 1,500 million yen in total borrowed
from Aozora Bank, Ltd. and The Musashino Bank, Ltd. that was due for repayment on May 31, 2019.
On May 31, 2019, the Investment Corporation conducted early repayment for 9,000 million yen out of 14,000
million yen in total borrowed from Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Ltd.,MUFG Bank, Ltd. and Mizuho Bank, Ltd. to acquire “Sasazuka South Building” and “Glass City Harumi,” usingpart of proceeds from divestment of “Daiwa Onarimon Building.”
The Investment Corporation concluded interest-rate swap agreements in the 27th Fiscal Period for 40,500
million yen of loans with floating interest rates to hedge against interest rate risks in the future.
b. 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 27th Fiscal Period(May 31, 2019) stood at 204,450 million yen in total (short-term loans payable: 5,000 million yen, long-term loans
payable: 194,350 million yen; investment corporation bonds: 5,100 million yen). The balance of the current portion of
long-term loans payable stood at 19,500 million yen, while that of investment corporation bonds stood at 3,000
million yen.
The average remaining period of interest-bearing liabilities as of the end of the 27th Fiscal Period stands at 4.0
years.
List of Borrowings in the 27th Fiscal Period
Loan amount(million yen)
3,000
3,000
3,000
3,000
2,000
3,000
2,000
1,000
2,000
1,000
1,000
500

LenderSumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Fukuoka, Ltd.
MUFG Bank, Ltd.
The Gunma Bank, Ltd.
The Norinchukin BankThe Yamanashi Chuo Bank, Ltd.
The Hyakugo Bank, Ltd.
The Musashino Bank, Ltd.

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Drawdown
date
2018/12/27
2019/2/27
2019/2/27
2019/2/27
2019/2/27
2019/3/29
2019/3/29
2019/3/29
2019/5/31
2019/5/31
2019/5/31
2019/5/31

Repayment
date
2019/12/27
2020/1/31
2020/1/31
2020/1/31
2020/1/31
2028/3/31
2028/3/31
2026/3/31
2026/5/29
2029/5/31
2026/5/29
2027/5/31

Loanperiod
1.0 year
0.9 year
0.9 year
0.9 year
0.9 year
9.0 years
9.0 years
7.0 years
7.0 years
10.0 years
7.0 years
8.0 years

Balance of Borrowings from Each Financial Institution (as of May 31, 2019)
End of the 27th Fiscal Period
Lender(million yen)
Sumitomo Mitsui Banking Corporation
41,400Sumitomo Mitsui Trust Bank, Limited
24,500Development Bank of Japan Inc.
21,750MUFG Bank, Ltd.
21,500Mizuho Bank, Ltd.
20,400Shinsei Bank, Ltd.
14,000Resona Bank, Ltd.
12,500Mizuho Trust and Banking Co., Ltd.
9,500
The Bank of Fukuoka, Ltd.
6,500
Kansai Mirai Bank, Limited
5,000
The Nishi-Nippon City Bank Limited
3,000
The Gunma Bank, Ltd.
2,500
Aozora Bank, Ltd.
2,000
The 77 Bank, Ltd.
2,000
The Musashino Bank, Ltd.
2,000
Tokio Marine & Nichido Fire Insurance Co., Ltd.
2,000
The Yamaguchi Bank, Ltd.
2,000
The Norinchukin Bank
2,000
Nippon Life Insurance Company
1,300
The Higashi-Nippon Bank, Limited
1,000
The Hyakugo Bank, Ltd.
1,000
The Yamanashi Chuo Bank, Ltd.
1,000
Taiyo Life Insurance Company
300
Fukoku Mutual Life Insurance Company
200
Total
199,350(Note) Share is rounded to two decimal places.

Share (%)
(Note)
20.77
12.29
10.91
10.79
10.23
7.02
6.27
4.77
3.26
2.51
1.50
1.25
1.00
1.00
1.00
1.00
1.00
1.00
0.65
0.50
0.50
0.50
0.15
0.10
100.00c. Rating Information (as of May 31, 2019)
Credit rating agency
R&I
Japan Credit Rating Agency

RatingA+
AA

OutlookPositive
StableD. Overview of Financial Performance and Distributions
As a result of the management described above, the Investment Corporation posted financial performance for the 27th
Fiscal Period of 13,833 million yen in operating revenue, 6,979 million yen in operating income, 6,320 million yen in
ordinary income and 6,320 million yen in net income.
Concerning distributions, 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”)) is planned. In addition, by retaining 142,474,820 yen from application of “Special
Provisions for Taxation in Cases of Repurchase of Specified Assets” (Article 65-7 of the Special Taxation MeasuresAct) and 311,960 yen of correction amount (due to the change in effective statutory tax rate) for deferred tax
liabilities as reserve for reduction entry, the Investment Corporation decided to distribute almost the entire amountremaining after deducting provision of reserve for reduction entry from unappropriated retained earnings (excluding
fractions of the distribution amount per unit that are less than 1 yen), and declared a per unit distribution amount of
12,559 yen.

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1.2.2. Outlook for the Next Fiscal Period
A. Investment Environment
The Japanese economy going forward was expected to continue to expand backed by solid trends in personal
spending against the backdrop of a favorable employment environment and the improved income environment while
the monetary easing policy implemented by Bank of Japan continued. However, it is more likely that the economy
will remain sluggish, falling below the potential growth rate. In addition, factors such as policies set out by the U.S.
President Donald Trump, the downward swing of the Chinese economy, deterioration of European economy, rise of
crude oil price, increased regulation on overtime work, and consumption tax hike scheduled for October 2019 may
slow down the Japanese economy, and are thus thought to require attention.
In the Tokyo office building leasing market, the vacancy rate has dropped backed by strong corporate performance.
With demand for office floor space projected to continue increasing, rent is expected to continue rising moderately
mainly in central Tokyo. In the office building transaction market, backed by the favorable financing environment,
among other factors, the property acquisition appetite among overseas investors, real estate companies and funds(including J-REITs) is thought to remain strong.
B. Future Management Policy and Tasks
a. Strategy for Managing Existing Properties
Although some have become cautious towards overall economic trends and the office market, office leasing market
conditions remain stable and strong centering on central Tokyo. Under such environment, the Investment
Corporation intends to improve its skill in building management by constantly attempting to grasp the latest tenantneeds and market conditions, regularly reviewing management systems and such. Consequently, the Investment
Corporation will carry out operational management under the following policy with an aim to enhance thecompetitiveness 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 cancellation 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 highly satisfactory services from gaining deeper understanding of
tenant needs 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 withexisting tenants, as well as proactively tapping the needs of new tenants by discerning the market environment.
(iii) Lower operational management costs
Strive to lower operational management costs based on maintaining office environments of high tenantsatisfaction levels by implementing efficient operational management and reviewing systematic construction
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 2,000 m2 or more
based on various external growth strategies, while maintaining a balance with the asset acquisition environment andfinancing situation. In principle, considerations will focus on Tokyo as the investment target area, but the Investment
Corporation will also consider investing in competitive properties in cities other than Tokyo from a viewpoint ofterritorially-distributed investments.
As pipeline support, in addition to expanding its own information-sourcing channels, the Investment Corporation
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 theGroup’s extensive network of clients, partners, etc.
Furthermore, in the 27th Fiscal Period, the Investment Corporation acquired “Sasazuka South Building” and“Glass City Harumi” located in Tokyo. The Investment Corporation believes that acquisition of these properties willcontribute to further stabilization and enhancement of the portfolio. The Investment Corporation will continue to
strive to acquire properties in line with the investment strategy described above.
c. Financial Strategy
The Investment Corporation will conduct disciplined financial management of the following basic content.
(i) Control leverage by keeping the ratio of interest-bearing liabilities to total assets (LTV) within the range of
40% to 50% at maximum, taking into consideration also the LTV, etc. based on appraisal value, 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 balance of loans as a principle.
(iv) Achieve diversification of lenders, which shall mainly be Japanese financial institutions.
(v) Pursuant to its fund management rules, maintain stability in its financial standing by managing necessary funds,
such as the amount equivalent to distributions paid, separately from working capital.

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C. Significant Subsequent Eventsa. Acquisition and Divestment of Assets through Exchange
The Investment Corporation acquired and divested trust beneficial interest in real estate through exchange on July
1, 2019 as follows.
Summary of Exchange
Date of Conclusion of Exchange Agreement

July 1, 2019

Date of Exchange

July 1, 2019

The Counterparty of the Exchange

Sumitomo Realty & Development Co., Ltd.

Reduction Entry

Difference from Exchange of Property

The Investment Corporation is scheduled to make a reduction entry for theland and building of the property to be acquired (provisions of “Inclusion in
Deductible Expenses of the Amount of Advanced Depreciation of Assets
Acquired by Exchange” in Article 50 of the Corporation Tax Act will beapplied).
The difference from exchange of property (50 million yen), which is thedifference between the sale price of Daiwa Osaki 3-chome Building and theacquisition price of Sumitomo Fudosan Mita 2-chome Building, will be paid
to the Investment Corporation by Sumitomo Realty & Development Co.,
Ltd., the counterparty of the exchange, on the delivery date.

Summary of Asset Acquired
Property name

Sumitomo Fudosan Mita 2-Chome Building

Type of asset

Trust beneficial interest in domestic real estate

Location

2-10-4 Mita, Minato-ku, Tokyo

Acquisition Price

2,635 million yen(excluding associated acquisition costs, consumption tax, etc.)

Summary of Asset Divested
Property name
Type of asset
Sale Price

Daiwa Osaki 3-chome Building

Trust beneficial interest in domestic real estate
2,685 million yen(excluding settlement amounts of fixed asset tax and city planning tax,
consumption tax, etc.)-8-

D. Outlook for Management Status
The Investment Corporation forecasts the following management status for the 28th Fiscal Period (fiscal period
ending November 2019 (from June 1, 2019 to November 30, 2019)). For the assumptions underlying the management
status forecasts, please refer to the “Assumptions for the Management Status Forecasts for the 28th Fiscal Period and29th Fiscal Period” on page 10.
28th Fiscal Period (fiscal period ending November 2019 (from June 1, 2019 to November 30, 2019))
Operating revenue
14,024 million yen
Operating income
7,058 million yen
Ordinary income
6,396 million yen
Net income
6,394 million yen
Distribution amount per unit
13,000 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 28th Fiscal Period and29th Fiscal Period” will remain unchanged, the Investment Corporation forecasts the following management status forthe 29th Fiscal Period (fiscal period ending May 2020 (from December 1, 2019 to May 31, 2020)).
29th Fiscal Period (fiscal period ending May 2020 (from December 1, 2019 to May 31, 2020))
Operating revenue
13,979 million yen
Operating income
7,138 million yen
Ordinary income
6,495 million yen
Net income
6,493 million yen
Distribution amount per unit
13,200 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 to changes in the status. Moreover, theforecasts set forth herein should not be construed as a guarantee of distribution amounts.

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Assumptions for the Management Status Forecasts for the 28th Fiscal Period and 29th Fiscal Period
Item
Assumptions
 28th Fiscal Period: While 59 properties were under management as of May 31, 2019, assets undermanagement are assumed to be the 59 properties after the exchange (the “Exchange”) of
Sumitomo Fudosan Mita 2-chome Building (property acquired) and Daiwa Osaki 3-chome
Assets under
Building (property divested) on July 1, 2019.
management
 29th Fiscal Period: Assets under management are assumed to be the properties mentioned above.
 The actual number of properties may vary due to changes in the assets under management otherthan above.
 Rent revenue from existing properties is calculated based on historical data and taking into accountvariable factors.
 As a result of the Exchange, the Investment Corporation is scheduled to make a reduction entry forthe gain on sale from the divestment of a portfolio property expected for the 28th Fiscal Period byapplying the provisions of the “Inclusion in Deductible Expenses of the Amount of Advanced
Operating
Depreciation of Assets Acquired by Exchange” (Article 50 of the Corporation Tax Act) and deduct
revenueadvanced depreciation amount of 1,067 million yen among the gain on sale of the divested
property from the book value of the acquired property in the Exchange. As a result, 20 million yen
calculated by deducting the above advanced depreciation amount (1,067 million yen) from of gainon sale of 1,087 million yen, which is calculated by deducting divestment costs, etc. (estimatedamount) from the sale price of the divested property, is assumed to be recorded as gain on sale ofreal estate in the fiscal period ending November 2019 (28th fiscal period).
 Expenses related to rent business, which constitute a major component of operating expenses, arecalculated based on historical data and taking into account variable factors.
 Repair expenses for buildings are recorded as expenses in the amount expected to be necessary in
the respective fiscal period based on the medium to long term repair plan established by the AssetManager.
 Operating income from property leasing (excluding gain on sale from real estate properties) after
deducting expenses related to rent business (including depreciation) is expected to be 8,450
million yen in the 28th Fiscal Period and 8,535 million yen in the 29th Fiscal Period.
 Consignment expenses are expected to be 980 million yen in the 28th Fiscal Period and 910
Operatingmillion yen in the 29th Fiscal Period.
expenses Taxes and dues (fixed property tax, city planning tax, etc.) are expected to be 1,122 million yen in
the 28th Fiscal Period and 1,118 million yen in the 29th Fiscal Period.
 While, in general, fixed property tax, city planning tax, etc. in the transaction of real estate, etc. are
calculated on a pro rata basis and reimbursed at the time of acquisition with the current owner, but
for the Investment Corporation, the amount equivalent to the reimbursement is included in the costof acquisition and thus it is not recognized as expenses in the period of acquisition of properties.
As such, fixed property tax, city planning tax, etc. for properties acquired will be recorded as
expenses starting from the fiscal year following the acquisition year.
 Depreciation is expected to be 1,811 million yen in the 28th Fiscal Period and 1,836 million yen in
the 29th Fiscal Period.
 Non-operating expenses in the 28th Fiscal Period are expected to be 661 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related
Non-operating
expenses are expected to be 656 million yen.
expenses Non-operating expenses in the 29th Fiscal Period are expected to be 643 million yen, of which theinterest expenses, interest expenses on investment corporation bonds, and borrowing related
expenses are expected to be 638 million yen.
 The total amount of interest-bearing liabilities is assumed to be 204,450 million yen at the end of
the 28th Fiscal Period and 204,450 million yen at the end of the 29th Fiscal Period
 In the 28th Fiscal Period, it is assumed that the entire amount of borrowings due for repayment on
August 30, 2019 (2,500 million yen), September 30, 2019 (2,000 million yen) and November 29,
Interest-bearing
2019 (3,500 million yen); and of No. 3 Unsecured Investment Corporation Bond maturing on
liabilities
September 12, 2019 (3,000 million yen) is refinanced.
 In the 29th Fiscal Period, it is assumed that the entire amount of borrowings due for repayment on
January 31, 2020 (5,000 million yen), February 28, 2020 (5,500 million yen) and May 29, 2020
(6,000 million yen) is refinanced.
 The total number of investment units issued and outstanding is assumed to be 491,877 units as of
Total number of
May 31, 219.
investment units
issued and It is assumed that there are no changes to the number of investment units other than stated above
outstanding
until the end of the 29th Fiscal Period through the issuance of new investment units, etc.
 The distribution amount per unit is calculated based on the cash distribution policy as set out in theDistribution amountarticles of incorporation of the Investment Corporation.
per unit The distribution amount per unit may vary depending on a variety of factors, such as changes in
the assets under management, changes in the rent revenue due to tenant changes and other causes,- 10 -

Item

Assumptions
and incurrence of unforeseen repairs.

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

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

1.2. 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
February 20, 2019).

- 11 -

2. Financial Statements
2.1. Balance Sheets

26th Fiscal Period[As of Nov. 30, 2018]
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Right of trademark
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets*1

19,008,711
4,301,854
201,341
314,284
336,925
40,287
24,203,404

26,663,769
3,479,870
173,823－333,048
65,52030,716,033

3,261,447(2,231,615)
1,029,832
14,344(6,152)
8,191
19,917(9,943)
9,974
12,302,226
2,997
105,205,800(22,206,438)
82,999,361
743,077(170,150)
572,927
859,534(408,262)
451,272
259,118(131,315)
127,803353,252,550
422,487
451,179,623

3,267,838(2,315,252)
952,585
14,344(6,593)
7,750
19,917(11,031)
8,885
12,302,226
2,846
106,908,695(23,140,985)

324
2,398,275
306,884
23,464
2,728,949- 12 -(Unit: thousand yen)
27th Fiscal Period[As of May 31, 2019]*1

83,767,710
767,841(180,115)
587,725
858,858(439,084)
419,773
266,040(145,403)
120,637
352,187,043
828,644451,185,830
270
2,398,275
306,884
19,8592,725,289

26th Fiscal Period[As of Nov. 30, 2018]
Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Derivatives
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
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Unitholders' capital, net
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
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*2- 13 -(Unit: thousand yen)
27th Fiscal Period[As of May 31, 2019]113,684
884,452
26,08851,62810,0401,085,894
454,994,467

113,684
791,008
63,978
7,486
21,075997,232
454,908,352

14,696
14,696479,212,568

11,75811,758
485,636,144

1,255,722－
3,000,000
18,000,000
583,518990
122,292
2,177,690
656,351
25,796,564

981,467
5,000,000
3,000,000
19,500,000
567,015803
364,984
2,323,112
895,324
32,632,707

2,100,000
175,850,000
18,145,584
2,647,046
349,866
199,227
199,291,724
225,088,289

2,100,000
174,850,000
19,145,369
1,844,488
409,112194,297
198,543,268
231,175,975

251,551,759(3,675,523)
247,876,236

251,551,759(3,675,523)
247,876,236

567,422567,422
5,901,266
6,468,688
254,344,924

567,422567,422
6,320,338
6,887,760
254,763,996(220,645)(220,645)
254,124,279
479,212,568(303,827)(303,827)*2

254,460,169
485,636,144

2.2. Statements of Income(Unit: thousand yen)
27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]

26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]
Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Trust fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Insurance income
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
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)*1*1

13,164,114
29,733
13,193,848

*1
*1
*2

13,628,608
62,035
142,474
13,833,118*1

5,344,992
1,068,779
23,42479,32718,3077,200
116,304
6,658,336
6,535,512*1

5,479,166
1,116,953
24,287
74,132
19,671
7,200
132,496
6,853,907
6,979,210

28
721
2,323
86
3,160

17
538
2,728
1,076
4,360

482,148
16,707133,108
4,458
636,423
5,902,249
5,902,249
993
(10)
982
5,901,266

503,464
16,892
137,389
5,203
662,948
6,320,622
6,320,622
804

(302)

5,901,266- 14 -*1502
6,320,120
217
6,320,338

2.3. Statements of Unitholders’ Equity
26th Fiscal Period (from June 1, 2018 to November 30, 2018)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital

SurplusReserve for
reduction entry

Total voluntary
retained earnings

Unappropriatedretained earnings(undisposed
loss)

164,162

164,162

5,887,688

6,051,850

403,259

403,259(403,259)-

Dividends from surplus(5,484,428)(5,484,428)

Net income

5,901,266

5,901,266

Unitholders’capitalBalance at beginning of current
fiscal period

Deduction fromunitholders' capital

251,551,759(3,675,523)

Voluntary retained earnings

Unitholders'
capital, net

247,876,236

Total Surplus

Changes of items during theperiodProvision of reserve for
reduction entry

Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period---403,259

403,259

13,578416,837

251,551,759(3,675,523)

247,876,236

567,422567,422

5,901,266

6,468,688

Unitholders’ equity

Total valuation and translation
adjustments

Total unitholders’ Deferred gains orequitylosses on hedges
Balance at beginning of current
fiscal period

253,928,086(251,915)

Total valuationand translation
adjustments

Total net assets(251,915)

253,676,171

Changes of items during theperiodProvision of reserve for--

Dividends from surplus(5,484,428)(5,484,428)

Net income

5,901,266

5,901,266

reduction entry

Net changes of items other

31,27031,27031,270416,837

31,27031,270448,107254,344,924(220,645)(220,645)

254,124,279

than shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period- 15 -

27th Fiscal Period (from December 1, 2018 to May 31, 2019)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital

SurplusReserve for
reduction entry

Total voluntary
retained earnings

Unappropriatedretained earnings(undisposed
loss)

567,422567,422

5,901,266

6,468,688

Dividends from surplus(5,901,048)(5,901,048)

Net income

6,320,120

6,320,120

Unitholders’capitalBalance at beginning of current
fiscal period

251,551,759

Deduction fromunitholders' capital(3,675,523)

Unitholders'
capital, net

247,876,236

Voluntary retained earnings

Total Surplus

Changes of items during theperiodNet changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period

－

－

－

－

－

419,072

419,072251,551,759(3,675,523)

247,876,236

567,422567,422

6,320,338

6,887,760

Unitholders’ equity

Total valuation and translation
adjustments

Total unitholders’ Deferred gains orequitylosses on hedges
Balance at beginning of current
fiscal period

254,344,924(220,645)

Total valuationand translation
adjustments

Total net assets(220,645)

254,124,279

Changes of items during theperiodDividends from surplus(5,901,048)(5,901,048)

Net income

6,320,120

6,320,120

Net changes of items other(83,182)(83,182)(83,182)

419,072(83,182)(83,182)

335,889

254,763,996(303,827)(303,827)

254,460,169

than shareholders’ equity
Total changes of items during
the period
Balance at end of current fiscal
period- 16 -

2.4. Statements of Cash Distributions

Item
I.
II.

Unappropriated retained earnings
Distribution amount[Distribution amount per unit]
III. Voluntary retained earnings
Provision of reserve for reduction entry
IV. Retained earnings carried forward
Method for calculating distribution amount26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]
Amount (yen)5,901,266,172
5,901,048,369(11,997)
217,803
Pursuant to the policy that “theInvestment
Corporation
shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(491,877 units) in an amount that is
not in excess of unappropriatedretained earnings. Accordingly, theInvestment Corporation declared a
distribution amount of 5,901,048,369
yen. Furthermore, the Investment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

- 17 -

27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]
Amount (yen)6,320,338,406
6,177,483,243(12,559)
142,786,780
68,383Pursuant to the policy that “theInvestment
Corporation
shall
distribute an amount in excess of theamount equivalent to 90% of its
distributable earnings as defined in
Article 67-15 of the Act on Special
Measures Concerning Taxation” butno more than the amount of earnings
as specified in Article 32, Item 1 ofthe Investment Corporation’s articles
of incorporation, the Investment
Corporation decided the distributions
from earnings that it shall pay out
shall be the maximum value of theintegral multiple of the total numberof units issued and outstanding(491,877 units) in an amount that is
not in excess of the amount remained
after deducting (i) provision ofreserve for reduction entry defined in
Article 65-7 of the Act on Special
Measures Concerning Taxation and(ii) reserve for reduction entry, whichis the correction amount (due to thechange in effective statutory tax rate)
for deferred tax liabilities, fromunappropriated retained earnings.
Accordingly,
theInvestment
Corporation declared a distribution
amount of 6,177,483,243 yen.
Furthermore,theInvestment
Corporation shall not distribute cash
in excess of earnings as stipulated in
Article 32, Item 2 of its articles ofincorporation.

2.5. Statements of Cash Flows

26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]
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
Decrease (increase) in accounts receivable - other(Increase) Decrease in consumption taxes refund receivable(Increase) Decrease in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received(Increase) Decrease in long-term prepaid expenses
Decrease from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Proceeds from tenant security deposits
Proceeds from tenant security deposits in trust
Repayments of tenant security deposits
Repayments of tenant security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
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- 18 -*1(Unit: thousand yen)
27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]

5,902,249
1,738,044
2,954
(28)
498,856(20,393)2,214(314,284)
1,609
158,324
14,386(174,068)
103,890
19,354－
162,814
8,095,920
28(498,948)
15,608
7,612,610

6,320,622
1,816,695
2,938
(17)
520,356
27,517－314,284
3,876
95,903
109,696242,692
145,422
93,444
13,486,543
321,158
23,501,134
17(520,264)(991)
22,979,896(801)(22,175,382)(2,500)1,013,828
924,173(639,121)(8,759)(20,888,563)(18,363)(15,925,167)－
1,135,935
439,482(1,309,333)(68,856)(15,746,304)－－
15,500,000(5,500,000)(5,484,393)
4,515,606(8,760,346)
32,070,911
23,310,565

14,000,000(9,000,000)
10,500,000(10,000,000)(5,900,516)(400,516)
6,833,074
23,310,565
30,143,640*1

2.6. Notes to the Going Concern
Not applicable.
1.

2.
3.

2.7. Notes to Significant Accounting Policies
Accumulated depreciation method(1)
for noncurrent assets

Accounting policies fordeferred assets
Accounting standards for recording
revenues and expenses

4.

Hedge accounting approaches

5.

Scope of funds in thestatements of cash flows

Property, plant and equipment (including trust assets)
The straight-line method is adopted.
The useful life of primary property, plant and equipment are as follows:
Buildings
2~64 years
Structures
10~56 years
Machinery and equipment
6~23 years
Tools, furniture and fixtures
5~15 years(2) Intangible assets
The straight-line method is adopted.
(3) Long-term prepaid expenses
The straight-line method is adopted.
Investment corporation bonds issuance costs
Amortized using the straight-line method over the period up to redemption.
Accounting for fixed property tax, etc.
Concerning fixed property tax, city planning tax, depreciated asset tax, etc. forowned real estate in trust, of the tax amount that has been broken down into
installments, the method of accounting for the amount corresponding to theconcerned fiscal period as expenses related to rent business is adopted.
Concerning the amount equivalent to fixed property tax, etc. for the initialfiscal year that shall be borne by the Investment Corporation in correlation withacquisitions of real estate or trust beneficial interest that have real estate as
assets in trust, the amount is not expensed but is rather included in the cost of
acquisition of the concerned real estate property. The amount equivalent to
fixed property tax, etc. that was included in the cost of acquisition of real estate
properties is 27,275 thousand yen in the 26th Fiscal Period and 3,316 thousand
yen in the 27th Fiscal Period.
(1) Hedge accounting approach
Deferral hedge accounting is adopted.
Special accounting is adopted for interest rate swaps that meet the requirements
for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate swap transactions
Hedged items:
Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge risks
stipulated in the Investment Corporation’s articles of incorporation inaccordance with the Investment Corporation’s risk management policy.
(4) Method for assessing the effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between the change
in aggregated amount of cash flow of the hedging instruments and the change
in aggregated amount of cash flow of the hedged items.
Interest rate swaps that meet the requirements for special accounting are
omitted from assessment of the effectiveness.
The funds (cash and cash equivalents) in the statements of cash flows consist of cashon hand and cash in trust; deposits that can be withdrawn at any time and deposits intrust; and short-term investments with a maturity of 3 months or less from the date ofacquisition, which are readily convertible to cash and bear only an insignificant riskof price fluctuation.

- 19 -

6.

Other significant matters forming
basis for preparation of financial
statements

(1)

(2)

Accounting method for trust beneficial interest in real estate, etc.
Concerning owned trust beneficial interest that have real estate properties asassets in trust, all accounts of assets and liabilities within assets in trust as well
as all accounts of revenues and expenses incurred from the assets in trust arerecorded in the relevant account item of the balance sheets and statements ofincome.
The following material items of the assets in trust recorded in the relevant
account item are separately listed on the balance sheets.
(i) Cash and deposits in trust(ii) Buildings in trust, structures in trust, machinery and equipment in trust,
tools, furniture and fixtures in trust, land in trust and construction inprogress in trust(iii) Leasehold rights in trust(iv) Lease and guarantee deposits in trust(v) Tenant leasehold and security deposits in trust
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.

2.8. 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.
26th Fiscal Period[As of November 30, 2018]
Buildings in trust

27th Fiscal Period[As of May 31, 2019]

32,898 thousand yen

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

26th Fiscal Period[As of November 30, 2018]

27th Fiscal Period[As of May 31, 2019]50,000 thousand yen

50,000 thousand yen[Notes to Statements of Income]*1. Breakdown of operating income (loss) from property leasing(Unit: thousand yen)
26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]
A.

B.

C.

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

27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]13,628,608
62,035

13,164,114
29,733
13,193,848

1,062,834
1,099,123
1,041,049
15,289395,024
1,813,035
52,809928,207
1,093,880
1,041,948
14,085472,933
1,734,275
59,662

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

- 20 -

13,690,644

5,344,992

5,479,166

7,848,856

8,211,477

*2. Breakdown of gain (loss) on sales of real estate properties (Unit: thousand yen)
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]
Daiwa Onarimon Building
Proceeds from sales of real estate
properties
Cost of sales of real estate properties
Other expenses on sales

13,700,000
13,486,543
70,981Gain on sales of real estate properties

142,474[Notes to Statements of Unitholders’ Equity]
26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]
Total number of investment units authorized and number ofinvestment units issued and outstanding
Total number of investment units authorized
Total number of investment units issued and outstanding

2,000,000 units
491,877 units

27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]

2,000,000 units
491,877 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)
26th Fiscal Period
27th Fiscal Period[From: June 1, 2018
[From: Dec. 1, 2018
To: Nov. 30, 2018]
To: May 31, 2019]
Cash and deposits
26,663,769
19,008,711
Cash and deposits in trust
3,479,870
4,301,854
Cash and cash equivalents

23,310,565

30,143,640[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 andissuance of new investment units, etc. for the acquisition and repair of investment properties, the payments ofdividends 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 deposits and safe and highly liquid money claims andsecurities (in principle, deposits).
Derivative transactions are limited to hedge operations which hedge against interest rate risks attributable toliabilities of the Investment Corporation.
(b) Contents and risk of financial instruments and related risk management
The Investment Corporation uses the proceeds from the financing of debts and investment corporation bonds for theacquisition of investment properties (such as trust beneficial interest in real estate) and the reimbursement of current
debts and bonds. While these debts and bonds are exposed to liquidity risk, the Investment Corporation manages therisk by maintaining the LTV ratio at low levels, dispersing maturity dates, maintaining the ratio of long-term debt tototal debt at high levels, and diversifying lenders with particular focus on domestic financial institutions.
Bank borrowings etc. with floating interest rates are exposed to interest rate risk and the risk is controlled by using
derivative instruments (interest rate swap transaction) for some long-term borrowings to avoid interest rate rise and to
fix interest expense.
The effectiveness of hedging is assessed by the correlation between the change in aggregated amount of cash flowof 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.
Enforcement and management of derivative transactions are carried out in accordance with the provisions
established by the basic policy of risk management. Tenant leasehold and security deposits and tenant leasehold andsecurity deposits in trust are exposed to liquidity risk upon tenants moving out and the Investment Corporation
reduces the risk by pooling funds to a certain degree.

- 21 -

Surplus funds by deposits are exposed to credit risk of counterparties (financial institutions and so on) and aremanaged by limiting the terms to short durations and establishing credit rating level of counterparties (except forcheckable deposit), etc.
(c) Supplementary explanation for fair value of financial instruments
The fair value of financial instruments is based on their market price. The fair value of financial instruments with noavailable market price is determined by using price reasonably estimated. As various factors are incorporated into
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 in these derivative transactions.
(2) Matters Concerning Fair Value, etc. of Financial Instruments
The carrying amounts and fair values and their differences are as follows. Please note that the following table does notinclude those for which discerning of fair value is recognized to be extremely difficult (please refer to (Note 2)).
26th Fiscal Period [As of November 30, 2018](1) Cash and deposits(2) Cash and deposits in trust
Total assets(3) Short-term loans payable(4) Current portion of investment corporation bonds(5) Current portion of long-term loans payable(6) Investment corporation bonds(7) Long-term loans payable
Total liabilities
Derivative transactions (*)

Carrying amount
19,008,711
4,301,854
23,310,565

Fair value
19,008,711
4,301,854
23,310,565(Unit: thousand yen)
Difference－－－

3,000,000
18,000,000
2,100,000
175,850,000
198,950,000(322,520)

3,004,200
18,008,126
2,158,380
175,820,891
198,991,597(322,520)

4,200
8,126
58,380(29,108)
41,597－

Fair value
26,663,769
3,479,870
30,143,640
5,000,000
3,001,500
19,502,614
2,166,780
174,967,636
204,638,530(443,290)(Unit: thousand yen)
Difference
－
－
－
－
1,500
2,614
66,780117,636
188,530－

27th Fiscal Period [As of May 31, 2019](1) Cash and deposits(2) Cash and deposits in trust
Total assets(3) Short-term loans payable(4) Current portion of investment corporation bonds(5) Current portion of long-term loans payable(6) Investment corporation bonds(7) Long-term loans payable
Total liabilities
Derivative transactions (*)

Carrying amount
26,663,769
3,479,870
30,143,640
5,000,000
3,000,000
19,500,000
2,100,000
174,850,000
204,450,000(443,290)(Note 1) Methods to estimate fair value of financial instruments and matters concerning derivative transactions.
Assets(1) Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and thus
is stated at that book value.
Liabilities(3) Short-term loans payable; (5) Current portion of long-term loans payable; (7) Long-term loans payable
As those with floating interest rates reflect market interest rates within a short period of time and the Investment
Corporation’s credit capability does not differ markedly from the execution, the fair value is approximately the sameas 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 and interest (*) by the reasonably
estimated interest rate in the case that the same type of borrowings is undertaken.
(*) For long-term loans payable that are subject to special accounting for interest rate swaps, the interest is handled
together with applicable interest rate swaps. (Please refer to [Notes to Derivative Transactions] below.)(4) Current portion of investment corporation bonds; (6) Investment corporation bonds
The fair value of the investment corporation bonds issued by the Investment Corporation is based on the market price.

- 22 -

Derivative transactions
Please refer to [Notes to Derivative Transactions] below.
(Note 2) Carrying amount of financial products for which it is extremely difficult to estimate fair value
26th Fiscal Period[As of November 30, 2018]
Tenant leasehold and security deposits*
Tenant leasehold and security deposits in trust*

18,145,584
2,6474,046(Unit: thousand yen)
27th Fiscal Period[As of May 31, 2019]19,145,369
1,844,488

Total
20,792,630
20,989,857(*) Tenant leasehold and security deposits and tenant leasehold and security deposits in trust that are deposited by lessees ofrental properties are not subject to disclosure of fair value because discerning of the fair value is recognized to be
extremely difficult as future cash flows cannot be reasonably estimated due to there being no market price and difficultyin calculation of the actual deposit period, which is the period from tenants’ move-ins to move-outs.
(Note 3) Redemption schedule for monetary claims due after the settlement of accounts.
26th Fiscal Period [As of November 30, 2018](Unit: thousand yen)
Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Cash and deposits

19,008,711

–

–

–

–

–

Cash and deposits in trust

4,301,854

–

–

–

–

–

Total

23,310,565

–

–

–

–

–

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

Cash and deposits

26,663,769

－

－

－

－

－

Cash and deposits in trust

3,479,870

－

－

－

－

－

30,143,640

－

－

－

－

－

Over 5 years

27th Fiscal Period [As of May 31, 2019](Unit: thousand yen)

Total

Over 5 years(Note 4) Amount of repayment of current portion of long-term loans payable, long-term loans payable, current portion of
investment corporation bonds and investment corporation bonds scheduled to be due after the settlement ofaccounts.
26th Fiscal Period [As of November 30, 2018](Unit: thousand yen)
Current portion of investment
corporation bonds
Current portion of
long-term loans payable

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

3,000,000

－

－

－

－

－

18,000,000

－

－

－

－

－

Over 5 years

Investment corporation bonds

－

－

－

－

－

2,100,000

Long-term loans payable－

28,100,000

24,200,000

31,600,000

26,200,000

65,750,000

21,000,000

28,100,000

24,200,000

31,600,000

26,200,000

67,850,000

Within 1 year

Within 2 years,
but over 1 year

Within 3 years,
but over 2 years

Within 4 years,
but over 3 years

Within 5 years,
but over 4 years

5,000,000

－

－

－

－

－

3,000,000

－

－

－

－

－

19,500,000

－

－

－

－

－

－

－

－

－

－

2,100,000－

33,300,000

21,500,000

30,600,000

23,700,000

65,750,000

27,500,000

33,300,000

21,500,000

30,600,000

23,700,000

67,850,000

Total

27th Fiscal Period [As of May 31, 2019](Unit: thousand yen)
Short-term loans payable
Current portion of investment
corporation bonds
Current portion of
long-term loans payable
Investment corporation bonds
Long-term loans payable
Total- 23 -

Over 5 years

[Notes to Derivative Transactions](1) Transactions for which hedge accounting is not applied
26th Fiscal Period [As of November 30, 2018]
Not applicable.
27th Fiscal Period [As of May 31, 2019]
Not applicable.
(2) Transactions for which hedge accounting is applied
26th Fiscal Period [As of November 30, 2018]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to theprincipal provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
quotedby partner
102,100,000
90,100,000(322,520)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
(*)
loans
－
4,500,000
2,000,000
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
106,600,000
92,100,000(322,520)
27th Fiscal Period [As of May 31, 2019]
About derivative transactions for which hedge accounting is applied, the contract amount, amount equivalent to the principal
provided in the contract, etc. as of the settlement of accounts for each hedge accounting approach are as follows.
(Unit: thousand yen)Contract amount, etc.
Hedge
Main
Method ofType, etc. of derivative
accounting
hedgedFair value
calculation of
Of which,transaction
approach
item
that fair value
over 1 year
Interest rate swap
Principle
Long-term
Based on pricetransaction
accounting
loans
quoted by partner
135,600,000
118,100,000(443,290)
Fixed payable
methodpayablefinancial institution
Floating receivable
SpecialInterest rate swap
Long-term
accounting
transaction
loans－
3,000,000
3,000,000(*)
for interest
Fixed payablepayablerate swaps
Floating receivable
Total－
138,600,000
121,100,000(443,290)(*) Since the derivative financial instruments qualifying for the special accounting for interest rate swaps are accounted for as
one transaction together with their hedged item, long-term loans payable, the fair value of these derivatives is included in thatof related long-term loans payable. (Please refer to “Notes to Financial Instruments (2) Matters Concerning Fair Value, etc.
of Financial Instruments (Note 1) Liabilities (5) (7)”).
[Notes to Transactions with Related Parties](1) Parent company and major corporate unitholders, etc.
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]
Not applicable.
(2) Affiliated companies, etc.
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]- 24 -

(3) Sister companies, etc.
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]

Category

Name ofcompany,
etc.

Rate of voting
Balance at
Capital stockrights, etc. held Relation
Transaction
end oforBusinessby related
withNature ofamountLocation
Account period
investments description party (held in Related transaction (thousand(thousandin capital
the Investment Parties
yen)
yen)
Corporation)

Subsidiary
Daiwa
of OtherChuo-ku, 100 million Real estate
Property Co.,affiliated
Tokyo
yen
businessLtd.
company－

Divestment
Divestmentof trustof trust
beneficial
beneficial
13,700,000
interest ininterest inreal estate
real estate(Note 1, 2)－－

Of amounts indicated above, transaction amount does not include consumption tax, etc.
(Note 1) Transaction terms and conditions were determined based on the market.
(Note 2) Terms and conditions with interested persons were determined according to the regulation concerning conflict ofinterest in the internal rule of the Asset Manager.
(4) Officers and major individual unitholders, etc.
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]
Not applicable.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]
Not applicable.
[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)
26th Fiscal Period[From: June 1, 2018
To: Nov. 30, 2018]

27th Fiscal Period[From: Dec. 1, 2018
To: May 31, 2019]

Carrying amount
Balance at beginning of period

432,377,563

453,459,299

Amount of increase (decrease) during period

21,081,736(399,799)

Balance at end of period

453,459,299

453,059,500

537,030,000

548,130,000

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 26th Fiscal Period, the amount of increase ismainly attributable to acquisition of three properties (Prime Kanda Building, Kita-Shinagawa Gotenyama Building
and Sasazuka NA Building) (20,295 million yen) and the amount of decrease is mainly attributable to depreciation(1,734 million yen). For the 27th Fiscal Period, the amount of increase is mainly attributable to acquisition of two
properties (Sasazuka South Building and Glass City Harumi) (14,200 million yen) and the amount of decrease ismainly attributable to divestment of Daiwa Onarimon Building (13,486 million yen) and depreciation (1,813 million
yen).
(Note 3) The fair value at end of period presents the appraisal value estimated by external real estate appraisers.
The income (loss) for investment and rental properties are as presented in the aforementioned “Notes to Statements of Income.”- 25 -

[Notes to 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
26th Fiscal Period [From: June 1, 2018 To: November 30, 2018]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 excess of
90% of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales figure to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
27th Fiscal Period [From: December 1, 2018 To: May 31, 2019]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 excess of
90% of the operating revenue on statements of income.
B. Property, plant and equipment
Information about property, plant and equipment has been omitted because the amount of property, plant andequipment located in Japan is in excess of 90% of the amount of property, plant and equipment on balance sheets.
③ Information about major customers
Information about principal customers has been omitted because each net sales figure to a single external customer
accounts for less than 10% of the operating revenue on statements of income.
[Notes to Per Unit Information]
26th Fiscal Period
27th Fiscal Period[From: June 1, 2018
[From: Dec. 1, 2018
To: May 31, 2019]
To: Nov. 30, 2018]
Net assets per unit
516,641 yen
517,324 yen
Net income per unit
11,997 yen
12,848 yen(Note 1) Net income per unit is calculated by dividing net income by the average number of investment units during theperiod. 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.
26th Fiscal Period
27th Fiscal Period[From: June 1, 2018
[From: Dec. 1, 2018
To: Nov. 30, 2018]
To: May 31, 2019]
Net income (thousand yen)
5,901,266
6,320,120
Amounts not attributable to common unitholders (thousand yen)－－
Net income attributable to common investment units (thousand yen)
5,901,266
6,320,120
Average number of investment units during the period (unit)
491,877
491,877- 26 -

[Notes to Significant Subsequent Events]a. Acquisition and Divestment of Assets through Exchange
The Investment Corporation acquired and divested trust beneficial interest in real estate through exchange on July
1, 2019, as follows.
Summary of Exchange
Date of Conclusion of Exchange Agreement

July 1, 2019

Date of Exchange

July 1, 2019

The Counterparty of the Exchange

Sumitomo Realty & Development Co., Ltd.

Reduction Entry

Difference from Exchange of Property

The Investment Corporation is scheduled to make a reduction entry for theland and building of the property to be acquired (provisions of “Inclusion in
Deductible Expenses of the Amount of Advanced Depreciation of Assets
Acquired by Exchange” in Article 50 of the Corporation Tax Act will beapplied).
The difference from exchange of property (50 million yen), which is thedifference between the sale price of Daiwa Osaki 3-chome Building and theacquisition price of Sumitomo Fudosan Mita 2-chome Building, will be paid
to the Investment Corporation by Sumitomo Realty & Development Co.,
Ltd., the counterparty of the exchange, on the delivery date.

Summary of Asset Acquired
Property name

Sumitomo Fudosan Mita 2-Chome Building

Type of asset

Trust beneficial interest in domestic real estate

Location

2-10-4 Mita, Minato-ku, Tokyo

Acquisition Price

2,635 million yen(excluding associated acquisition costs, consumption tax, etc.)

Summary of Asset Divested
Property nameDaiwa Osaki 3-chome Building

Property nameDaiwa Osaki 3-chome Building

Type of asset

Trust beneficial interest in domestic real estate
2,685 million yen(excluding settlement amounts of fixed asset tax and city planning tax,
consumption tax, etc.)

Sale Price

2.9. Increase (Decrease) in Number of Investment Units Issued and Outstanding
Since no capital increase, etc. were conducted in the 27th Fiscal Period, there is no change to unitholders’ capital, etc.
The overview of capital increase in the most recent 5 years up to the end of the 27th Fiscal Period is as follows.
Number of investment units
Unitholders’ capitalissued and outstanding(million yen)(units)Payment date
Description
Notes
Increase
Increase
Balance
Balance(Decrease)(Decrease)
Capital increase through public
July 2, 2014
(Note 1)
41,092436,890
18,522
217,303
offering
Capital increase by way of a
July 30, 2014
(Note 2)4,110
441,000
1,852
219,155
third-party allotment
Capital increase through public
June 1, 2015
(Note 3)41,045
482,045
23,145242,301
offering
Capital increase by way of aJune 24, 2015
(Note 4)
1,955
484,000
1,102
243,403
third-party allotment
Capital increase through public
August 2, 2016
(Note 5)
12,700496,700
7,461
250,864
offering
Capital increase by way of a
August 31, 2016
(Note 6)
1,169
497,869686
251,551
third-party allotment
May 31, 2018 Cancellation(Note 7)
(5,992)491,877(3,675)
247,876(Note 1) The Investment Corporation issued new investment units through public offering at an issue price of 466,537 yen perunit (paid-in price: 450,746 yen) to procure funds for acquisition of properties, etc.

- 27 -

(Note 2) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 450,746
yen per unit (paid-in price: 450,746 yen) to procure funds for acquisition of properties, etc.
(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of 583,050 yen perunit (paid-in price: 563,914 yen) to procure funds for acquisition of properties, repayment of borrowings, etc.
(Note 4) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 563,914
yen per unit (paid-in price: 563,914 yen) to procure funds for acquisition of properties, repayment of borrowings, etc.
(Note 5) The Investment Corporation issued new investment units through public offering at an issue price of 607,425 yen perunit (paid-in price: 587,489 yen) to procure funds for repayment of borrowings, etc.
(Note 6) The Investment Corporation issued new investment units by way of a third-party allotment at an issue price of 587,489
yen per unit (paid-in price: 587,489 yen) to procure funds for repayment of borrowings, etc.
(Note 7) In the period from March 1, 2018 to May 18, 2018, the Investment Corporation acquired own investment units throughmarket purchase at the Tokyo Stock Exchange based on a discretionary transaction agreement with a securities
company. The Investment Corporation cancelled all of the acquired own investment units (5,992 units) on May 31,
2018 based on the resolution at its Board of Directors meeting held on May 28, 2018.

- 28 -

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

3. Reference Information
3.1. Investment Status
Type of asset
Real estate

Trust beneficial
interest in real estate

Use
OfficeOffice27th Fiscal Period(As of May 31, 2019)
Total amount owned
As a percentage of(million yen) (Note 1)
total assets (%)

RegionFive Central Wards of Tokyo(Note 2)Five Central Wards of Tokyo(Note 2)

15,6693.2

349,068

71.9

Greater Tokyo (Note 3)

79,14816.3

Major Regional Cities(Note 4)

9,173

1.9

453,059

93.3

32,576

6.7

485,636100.0[453,059][93.3]

Total
Deposits and other assets
Total amount of assets (Note 5)(Note 1) “Total amount owned” is the carrying amount (the book value after depreciation in the case of real estate and trust
beneficial interest in real estate).
(Note 2) “Five Central Wards of Tokyo” are Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards.
(Note 3) “Greater Tokyo” is Tokyo, Kanagawa, Chiba and Saitama Prefectures (excluding the Five Central Wards of Tokyo).
(Note 4) “Major Regional Cities” are the Osaka metropolitan area (Osaka, Kyoto and Hyogo Prefectures), Nagoya metropolitan
area (Aichi, Mie and Gifu Prefectures), and ordinance-designated cities and core cities set forth in the Local Autonomy
Act.
(Note 5) 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 constructionin progress in trust) is not included in the amount of real estate and trust beneficial interest in real estate.

- 29 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
3.2. Investment Real Estate Properties (As of May 31, 2019)
3.2.1. Price and Investment Ratio of Investment Real Estate Properties
Carrying
Acquisition
Type ofamountprice
RegionProperty namespecified asset (million yen) (million yen)
(Note 1)
(Note 2)
Daiwa Ginza
14,10012,920Real estate
Daiwa Ginza Annex
3,050
2,749
Daiwa Shibaura
8,265
7,980
Daiwa Minami-Aoyama
4,550
4,413
Daiwa Sarugakucho
3,190
3,161
Daiwa A Hamamatsucho (Note 5)
2,865
2,747
Daiwa Jingumae
2,800
2,693
Daiwa Shibadaimon
2,578
2,376
Daiwa Misakicho
2,346
2,128
Daiwa Shimbashi 510
2,080
2,127
Daiwa Tsukijiekimae
1,560
1,273
Daiwa Tsukiji
1,240
1,127
Daiwa Tsukishima
7,840
6,775
Daiwa Nihonbashi Horidomecho
2,520
2,436
Daiwa Azabudai
1,600
1,503
Daiwa Kyobashi
3,460
3,188
Daiwa Kojimachi 4-chome
2,910
2,822
Shinjuku Maynds Tower (Note 5)
66,90064,158Daiwa SHIBUYA EDGE
5,900
5,628
Daiwa Kodenmacho
2,460
2,354
Daiwa Jimbocho
4,150
3,964
Daiwa Nishi-Shimbashi
5,000
4,678
Daiwa Kayabacho Building
5,600
5,208
Five
Daiwa Jimbocho 3-chome
3,550
3,334
Central E SPACE TOWER
Trust
24,00023,541
Wards ofbeneficial
Daiwa Nihonbashi Hongokucho
1,721
1,567
Tokyo
interest in real
shinyon curumu
9,650
9,614
estateDaiwa Akasaka
9,200
10,239Daiwa Shibuya Miyamasuzaka
7,000
7,360
Daiwa Azabu Terrace
14,00013,981
Daiwa Ebisu 4-chome
4,135
4,228
LAQUAS Higashi Shinjuku
8,450
8,441
Daiwa Aoyama
9,800
9,994
Shinsen Place
4,800
4,864
Glass City Shibuya
16,00015,919Daiwa River Gate
28,00027,837
Daiwa Hatchobori ekimae
2,871
2,923
Daiwa Hatchobori ekimae West
1,647
1,717
Daiwa Nishi-Shinjuku
13,71013,991
Kirin Nihonbashi Building
8,180
8,390
Daiwa Higashi-nihonbashi
6,370
6,290
Daiwa Daikanyama
2,280
2,380
Shinjuku West Building
942
979
Daiwa Kanda Mikura-cho Building
1,592
1,592
Daiwa Kanda East
4,200
4,285
Prime Kanda Building
2,295
2,377
Sasazuka NA Building
15,50016,072
Sasazuka South Building
3,000
3,110
Glass City Harumi
11,20011,281
Total for Five Central Wards of Tokyo
371,057
364,738(49 Properties)- 30 -

Estimated price at Investment
end of periodratio(million yen)(%)
(Note 3)(Note 4)
17,400
3.1
3,860
0.7
8,080
1.8
4,660
1.0
3,970
0.7
3,810
0.6
2,880
0.6
3,290
0.6
2,870
0.5
2,530
0.5
2,150
0.3
1,640
0.3
10,500
1.7
2,780
0.5
1,940
0.3
3,450
0.8
2,890
0.6
63,000
14.5
5,250
1.3
2,230
0.5
3,890
0.9
7,050
1.1
8,190
1.2
5,240
0.8
35,900
5.2
2,580
0.4
16,2002.1
15,0002.0
11,4001.5
17,400
3.0
6,100
0.9
10,9001.8
12,400
2.1
6,720
1.0
21,3003.5
32,600
6.1
3,360
0.6
1,860
0.4
16,000
3.0
8,290
1.8
6,860
1.4
3,510
0.5
1,210
0.2
1,770
0.3
5,470
0.9
2,760
0.5
16,100
3.4
3,340
0.7
12,0002.4
444,580

80.7

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
Carrying
Acquisition
Type ofamountpricespecified asset (million yen) (million yen)
(Note 1)
(Note 2)
Daiwa Higashi-Ikebukuro
2,958
2,633
Daiwa Shinagawa North
7,710
7,116
Daiwa Osaki 3-chome
1,650
1,584
Trust
Daiwa Kamiooka
2,000
1,875
Greater Integral Tower
beneficial
15,22015,738Tokyo
interest in real
Daiwa Meguro Square
5,600
5,494
estateDaiwa Ogikubo
3,800
3,983
CONCURRED Yokohama (Note 5)
38,10038,136Kita-Shinagawa Gotenyama Building
2,500
2,583
Total for Greater Tokyo (9 properties)
79,53879,148Trust
Major
beneficial
Regional Daiwa Kitahama
9,481
9,173
interest in real
CitiesestateTotal for Major Regional Cities (1 property)
9,481
9,173
Total (59 properties)
460,076
453,059
RegionProperty name

Estimated price at Investment
end of periodratio(million yen)(%)
(Note 3)(Note 4)
4,250
0.6
6,210
1.7
2,480
0.4
2,840
0.4
22,000
3.3
6,910
1.2
4,610
0.8
39,900
8.3
2,650
0.5
91,85017.3
11,7002.1

11,700548,1302.1
100.0(Note 1) “Acquisition price” is excluding acquisition costs, fixed property tax, city planning tax, consumption tax and local
consumption tax.
(Note 2) “Carrying amount” is the book value after depreciation as of May 31, 2019.
(Note 3) “Estimated price at end of period” is the price as of May 31, 2019 stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation &Advisory K.K. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 4) “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 5) For Daiwa A Hamamatsucho Building, Shinjuku Maynds Tower and CONCURRED Yokohama, the figures arethose pertaining to the Investment Corporation’s ownership interest.

- 31 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
3.2.2. Summary of Building and Leasing of Investment Real Estate
RegionProperty nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho (Note 8)
Daiwa A Hamamatsucho
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho (Note 8)
Daiwa Shimbashi 510
Daiwa Tsukijiekimae
Daiwa Tsukiji
Daiwa Tsukishima
Daiwa Nihonbashi
Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Five Central
Wards ofDaiwa Kojimachi 4-chomeTokyo
Daiwa Onarimon(Note 9)Shinjuku Maynds Tower(Note 10)
Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho Building(Note 8)Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi
Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya
Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome(Note 8)LAQUAS Higashi Shinjuku

Structureandnumber offloors(Note 1)SRC
B3 / 12F
SRC
B3 / 8F
SRC
B1 / 12FS / SRC
B2 / 5F
SRC
8F
SRC
B2 / 10FRC
B1 / 4F
SRC / RC
B1 / 7F
S
8F
SRC
B1 / 8F
SRC
10F
SRC
B1 / 7F
S
5F
SRC
B2 / 7F
SRC
B2 / 9F
SRC
B1 / 8F
SRC
B2 / 9F
SRC
9F
S / SRC
B3 / 34F
RC
B1 / 9F
SRC
8FS
B1 / 8F
SRC
B1 / 10F
S / SRC
B1 / 8F
S
9F
S / SRC
B1 / 15F
S
8F
S / RC
B2 / 11F
SRC
B2 / 7FS
B1 / 12F
S / RC
B1 / 6F
SRC
B1 / 9F
S
10F

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

Rent revenue
during current
period(thousand yen)
(Note 7)

July 1963

8,114.93

8,082.76

26

99.6

411,787

Aug. 1972

2,032.11

2,032.11

7

100.0

98,515Oct. 1987

9,619.67

9,541.50

54

99.1

260,480

Sept. 1990

2,715.54

2,715.545

100.0

130,737

June 1985

3,657.43

3,657.432

100.0(Not disclosed)

July 1993

3,663.38

3,663.38

12

100.0

135,884

Dec. 1997

2,198.61

2,198.61

5

100.0

78,751

Nov. 1996

2,386.48

2,386.48

6

100.0

87,259July 1996

2,137.53

2,137.531

100.0(Not disclosed)

Apr. 1974

2,595.76

2,595.76

7

100.0

76,380Jan. 1996

2,659.59

2,659.59

6

100.0

67,187Jan. 1990

1,487.44

1,487.44

5

100.0

51,535

July 1996

8,425.69

8,425.69

4

100.0

280,562

Apr. 1993

2,850.81

2,850.81

8

100.0

84,699Apr. 1984

1,697.88

1,697.88

11

100.0

55,446

Oct. 1974

3,265.83

3,265.83

10

100.0

103,915

Oct. 1987

2,695.31

2,695.31

7

100.0

88,824

Apr. 1973

-

-

-

-

149,714

Sept. 1995

22,746.12

22,592.19

38

99.3

1,334,628

Aug. 2006

2,480.65

2,480.65

5

100.0

128,157

Mar. 1985

2,379.31

2,379.31

8

100.0

66,202Mar. 1997

3,164.26

3,164.26

6

100.0

103,021

July 1993

4,815.84

4,815.84

11

100.0

167,803

Apr. 2010

5,899.11

5,899.111

100.0(Not disclosed)

Feb. 2010

2,889.34

2,545.95

7

88.1

115,308

Oct. 2002

13,960.87

12,519.21

11

89.6

765,141

May 2010

2,143.08

2,143.08

5

100.0

71,732

Jan. 2012

6,751.31

6,751.31

17

100.0

391,383

Sept. 1990

8,747.39

8,747.39

17

100.0

357,743

Dec. 1988

6,328.94

6,328.94

9

100.0

301,868

Sept. 2009

13,234.39

13,234.39

12

100.0

471,657

Dec. 1997

2,951.70

2,951.701

100.0(Not disclosed)

Aug. 2010

7,498.33

7,498.33

4

100.0

230,454- 32 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
StructureandRegionProperty namenumber offloors(Note 1)
S / RC
Daiwa Aoyama
B1 / 7F
RC
Shinsen Place (Note 8)
B1 / 9FS / SRC
Glass City Shibuya
B1 / 11F
S / SRC /Daiwa River GateRC
B2 / 20FS / SRC
Daiwa Hatchobori ekimae
B1 / 10F
Daiwa Hatchobori ekimae
SRC
West
B1 / 9F
SRC / RC /Daiwa Nishi-Shinjuku
S
B2 / 11F
Kirin Nihonbashi Building
S / SRC
7F
Five Central (Note 8)
S
Wards of Daiwa Higashi-nihonbashi
7F
Building
Tokyo
S
Daiwa Daikanyama (Note 8)
6F
RC
Shinjuku West Building
4F
Daiwa Kanda Mikura-cho
SRC / S
B1 / 7F
Building
S
Daiwa Kanda East
9F
S / RC
Prime Kanda Building
B1 / 10F
SRC / RC /Sasazuka NA BuildingS
B2 / 18F
SRC / S
Sasazuka South Building
B1 / 8F
S
Glass City Harumi
B1 / 12F
Total for Five Central Wards of Tokyo (50 properties)
SRC / S
Daiwa Higashi-Ikebukuro
B1 / 9F
SRC
Daiwa Shinagawa North
B1 / 11F
S / RC
Daiwa Osaki 3-chome
B1 / 6F
S / SRC
Daiwa Kamiooka
B3 / 7F
Greater
S / SRC
Integral Tower (Note 11)Tokyo
B2 / 18FS / SRC
Daiwa Meguro Square
B2 / 14F
SRC
Daiwa Ogikubo
B1 / 7F
CONCURRED Yokohama
S / SRC(Note 12)
B1 / 20F
Kita-Shinagawa Gotenyama
SRC / S
Building
8F
Total for Greater Tokyo (9 properties)
Major
S / SRC
Regional Daiwa Kitahama
B1 / 16F
CitiesTotal for Major Regional Cities (1 property)
Total (60 properties)

Construction
completion(Note 2)

Leasable
floor area(m2)
(Note 3)

Leased floor
area
(m2)
(Note 4)

Total
number oftenants(Note 5)

Occupancy
rate(%)(Note 6)

Rent revenue
during current
period(thousand yen)
(Note 7)

Nov. 2001

4,426.10

4,426.10

7

100.0

227,404

Sept. 2001

2,811.35

2,811.351

100.0(Not disclosed)

Feb. 2004

8,566.73

8,566.73

12

100.0

397,162

Feb. 1994

32,055.85

31,963.52

93

99.7

1,062,880

Feb. 2006

2,622.42

2,622.42

9

100.0

83,293Feb. 1996

1,723.15

1,723.158

100.0

47,491

Aug. 1991

6,967.61

6,967.61

7

100.0

338,420

Feb. 1999

5,630.17

5,630.171

100.0(Not disclosed)

Mar. 2008

5,015.88

5,015.88

5

100.0

173,721Mar. 2001

1,642.83

1,642.83

1

100.0(Not disclosed)

Mar. 1989

1,120.58

1,120.588

100.0

38,316

Jan. 1991

1,719.51

1,719.51

7

100.0

50,754

Feb. 2005

3,980.56

3,980.56

5

100.0

138,966

Aug. 1990

2,211.64

2,211.64

9

100.0

63,981Feb. 1993

16,160.25

16,160.25

5

100.0

464,516

Dec. 1992

3,758.00

3,611.08

8

96.0

77,10911,227.10

5,320.58

6

47.3

72,935279,834.36

271,639.27

520

97.0

10,807,914

June 1993

4,461.47

4,461.478

100.0

122,856

July 1991

6,548.17

6,548.17

11

100.0

196,306

Sept. 2007

1,786.06

1,786.06

5

100.0

65,496

May 2011

2,630.30

2,630.30

9

100.0

93,212June 1993

17,778.14

17,710.63

9

99.6

659,394

July 2009

3,519.50

3,519.50

16

100.0

162,712

Nov. 1990

3,849.63

3,849.63

12

100.0

127,276Feb. 2008

28,052.98

27,714.30

36

98.7

989,706

Jan. 2008

July 1992

Feb. 2008

2,396.96

2,396.96

6

100.0

61,04871,023.21

70,617.02

112

99.4

2,478,010

13,517.62

11,749.06

7

86.9

342,683

13,517.62
364,375.19

11,749.06
354,005.35

7
639

86.9
97.1

342,683
13,628,608(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 tofloors above ground.
(Note 2) “Construction completion” is the entry in the real estate registry of the building of the applicable investment realestate property.

- 33 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period(Note 3) “Leasable floor area” represents the floor area of the building of the applicable property that is leasable, notincluding the leasable area of the land (including level parking space), and is the floor area indicated in the lease
contract, etc. as of May 31, 2019.
(Note 4) “Leased floor area” is the sum total of the floor area that is actually leased based on lease agreements, etc. executedwith end-tenants as of May 31, 2019.
(Note 5) “Total number of tenants” is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 6) “Occupancy rate” is the figure arrived at when leased floor area is divided by leasable floor area, rounded down to
one decimal place.
(Note 7) “Rent revenue during current period” is rent income, common area charges income, parking lot income and otherincome generated from the applicable investment real estate property (excluding other lease business revenue)
during the 27th Fiscal Period, rounded down to the nearest thousand yen.
(Note 8) Not shown for such reasons as consent was not obtained from major tenants to disclose the rent revenue during
current period for the properties.
(Note 9) The property was divested on February 28, 2019. This is reflected in the totals for the number of properties and therent revenue during current period.
(Note 10) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the co-ownershipinterest corresponding to three-sevenths of the entire property. Accordingly, leasable floor area and leased floor area
are the floor areas corresponding to three-sevenths of the entire building.
(Note 11) The buildings consist of three registrations. Of these, the details of the major building are shown here.
(Note 12) The real estate in trust pertaining to trust beneficial interest held by the Investment Corporation is the quasi
co-ownership interest corresponding to 75% of the entire property. Accordingly, leasable floor area and leased floorarea are the floor areas corresponding to 75% of the entire building.
3.2.3. Capital Expenditures for Assets under Management
A. Scheduled Capital Expenditures for the 27th Fiscal Period

The following are the principal capital expenditures arising from renovation construction work, etc. currently planned forexisting portfolio properties. Please note that the expected construction amount includes portions that are expensed as aseparate account item of accounting costs.
Name of real estate
properties(Location)
Integral Tower(Suginami-ku, Tokyo)
Daiwa Kitahama(Osaka-shi, Osaka)
Sasazuka South Building(Shibuya-ku, Tokyo)
Daiwa Kojimachi 4-chome(Chiyoda-ku, Tokyo)
Daiwa Tsukishima(Chuo-ku, Tokyo)

PurposeUpgrading of air-conditioning system(West side)
Renovation of exclusive areas on 2nd
and 3rd floors
Renovation of exclusive areas on 8th
floor
Upgrading of air-conditioning facilities
on 3rd to 8th floors
Repair of exterior walls

Expected construction amount (million yen)
Scheduled
implementation
Amount paid
Total amount
Total amountperiodduring current period
already paid
From: June 2018
430
277
962
To July 2019
From: Feb. 2019111
To June 2019
From: June 201982
To Nov. 2019
From: June 201975
To Nov. 2019
From:
Jan. 201937
To June 2019

B. Capital Expenditures during the 27th Fiscal Period
The following summarizes the primary construction work that constitutes capital expenditures implemented during the27th Fiscal Period. Capital expenditures for the 27th Fiscal Period amounted to 471 million yen and, when combined withthe 395 million yen in repair expenses charged to the 27th Fiscal Period expenses, totals 866 million yen in construction
work were implemented.
Name of real estate properties(Location)
Daiwa Shibuya Miyamasuzaka(Shibuya-ku, Tokyo)
CONCURRED Yokohama(Yokohama-shi, Kanagawa)
Sasazuka NA Building(Shibuya-ku, Tokyo)
Other

Purpose

PeriodRepair of exterior walls
Changing lighting in common-use areas to LED
Renovation of power receiving and transforming facility

From:
To
From:
To
From:
To

Mar. 2018
Feb. 2019Feb 2019
Mar. 2019Feb. 2019Feb. 2019

Construction amount paid
(million yen)
197
20
16
237
471

Total

- 34 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
C. Reserve Amount for Long-Term Repair Plans (Reserve for Repairs)
The Investment Corporation sets aside the following reserve for repairs from cash flows during the fiscal period for thepayment of future major repairs.
(Unit: million yen)
23rd
24th
25th
26th
27th
FiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscalPeriodFiscal period[From: Dec. 1, 2016
To: May 31, 2017]

Balance of reserve at
beginning of current
periodAmount of reserve incurrent period
Reversal of reserve incurrent period
Amount carried forward
to next period[From: June 1, 2017
To: Nov. 30, 2017][From: Dec. 1, 2017
To: May 31, 2018][From: June 1, 2018
To: Nov. 30, 2018][From: Dec. 1, 2018
To: May 31, 2019]

2,043

1,900

1,839

1,576

1,629

84

1,417

－

476

460

227

1,478

263

423

－

1,900

1,839

1,576

1,629

2,089

- 35 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
3.2.4. Summary of Estimated Price at End of Period (As of May 31, 2019)

Property nameDaiwa Ginza
Daiwa Ginza Annex
Daiwa Shibaura
Daiwa Minami-Aoyama
Daiwa Sarugakucho
Daiwa A Hamamatsucho(Note 2)
Daiwa Jingumae
Daiwa Shibadaimon
Daiwa Misakicho
Daiwa Shimbashi 510
Daiwa Tsukijiekimae (Note 3)
Daiwa Tsukiji
Daiwa Tsukishima
Daiwa Nihonbashi Horidomecho
Daiwa Azabudai
Daiwa Kyobashi
Daiwa Kojimachi 4-chome
Shinjuku Maynds Tower(Note 4)
Daiwa SHIBUYA EDGE
Daiwa Kodenmacho
Daiwa Jimbocho
Daiwa Nishi-Shimbashi
Daiwa Kayabacho Building
Daiwa Jimbocho 3-chome
E SPACE TOWER
Daiwa Nihonbashi Hongokucho
shinyon curumu
Daiwa Akasaka
Daiwa Shibuya Miyamasuzaka
Daiwa Azabu Terrace
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Daiwa Aoyama
Shinsen Place
Glass City Shibuya
Daiwa River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Daiwa Nishi-Shinjuku
Kirin Nihonbashi Building
Daiwa Higashi-nihonbashi
Building
Daiwa Daikanyama(Note 5)
Shinjuku West Building
Daiwa Kanda Mikura-cho
Building

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

Summary of Appraisal Report
Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminalrate
cap rate
(%)
(%)
3.3
3.7
3.3
3.7
3.8
4.2
3.6
4.0
4.2
4.6

17,400
3,860
8,080
4,660
3,970

17,600
3,830
8,060
4,720
4,030

3.5
3.5
4.0
3.8
4.4

17,100
3,880
8,090
4,600
3,910

3,810

3,890

3.7

3,780

3.5

3.9

2,880
3,290
2,870
2,530
2,150
1,640
10,500
2,780
1,940
3,450
2,890

2,930
3,350
2,910
2,560
2,150
1,650
10,600
2,840
1,970
3,500
2,910

3.8
3.6
3.9
4.0
4.1
4.0
4.1
4.0
3.9
4.0
3.7

2,820
3,270
2,850
2,500
2,150
1,640
10,400
2,710
1,900
3,400
2,870

3.6
3.4
3.7
3.8
4.1
4.0
3.8
3.8
3.7
3.8
3.5

4.0
3.8
4.1
4.2
4.3
4.2
4.3
4.2
4.1
4.2
3.9

63,000150,000

3.2

144,000

3.0

3.4

5,250
2,230
3,890
7,050
8,190
5,240
35,9002,580
16,20015,00011,40017,400
6,100
10,90012,4006,720
21,30032,6003,360
1,860
16,000
8,290

5,340
2,250
3,900
7,180
8,340
5,360
36,7002,610
16,50015,30011,60017,7006,020
11,20012,7006,820
21,50032,7003,490
1,920
16,500
8,440

3.7
4.2
3.8
3.5
3.3
3.3
3.1
3.9
3.2
3.2
3.4
3.6
3.7
3.4
3.2
3.3
3.4
3.8
3.5
3.6
3.3
3.9

5,150
2,200
3,890
6,990
8,120
5,190
35,1002,570
16,10014,900
11,20017,1006,130
10,70012,2006,670
21,00032,5003,310
1,830
15,800
8,130

3.5
4.0
3.8
3.3
3.1
3.1
2.9
3.7
3.0
3.0
3.2
3.4
3.8
3.2
3.0
3.2
3.2
3.5
3.3
3.4
3.1
3.6

3.9
4.4
4.0
3.7
3.5
3.5
3.3
4.1
3.4
3.4
3.6
3.8
3.9
3.6
3.4
3.5
3.6
3.9
3.7
3.8
3.5
4.0

6,860

7,020

3.9

6,790

3.7

4.1

3,510

3,570

3.3

3,490

3.3

3.5

1,210

1,220

3.8

1,200

3.6

4.0

1,770

1,800

3.9

1,760

3.9

4.1

- 36 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period

Property name

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

Summary of Appraisal Report
Direct capitalization method
Price(million yen)

Cap rate(%)

DCF method
Price(million yen)

Discount Terminalrate
cap rate
(%)
(%)
3.3
3.7
3.7
3.9
3.7
4.1
3.8
4.2
3.8
4.0
3.9
4.3
4.0
4.4
3.6
4.0
4.3
4.7
3.5
3.9
3.4
3.8
3.7
4.1

Daiwa Kanda East
5,470
5,500
3.6
5,430
Prime Kanda Building
2,760
2,840
3.7
2,720
Sasazuka NA Building
16,10016,8003.9
15,800
Sasazuka South Building
3,340
3,480
4.0
3,280
Glass City Harumi
12,00012,7003.8
11,700Daiwa Higashi-Ikebukuro
4,250
4,310
4.1
4,230
Daiwa Shinagawa North
6,210
6,300
4.2
6,120
Daiwa Osaki 3-chome
2,480
2,520
3.8
2,460
Daiwa Kamiooka
2,840
2,850
4.5
2,830
Integral Tower
22,00022,2003.7
21,900Daiwa Meguro Square
6,910
7,080
3.6
6,840
Daiwa Ogikubo
4,610
4,680
3.9
4,580
CONCURRED Yokohama
39,90041,200
4.3
39,4004.1
4.5(Note 6)Kita-Shinagawa Gotenyama
2,650
2,710
4.0
2,630
3.8
4.2
Building
Daiwa Kitahama
11,70012,0003.8
11,600
3.6
4.0
Total
548,130
644,350
623,410(Note 1) “Estimated price at end of period” is the price as of May 31, 2019 stated in appraisal reports prepared by real estateappraisers of Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation &Advisory K.K. and Japan Real Estate Institute in accordance with the articles of incorporation of the Investment
Corporation and the rules of The Investment Trusts Association, Japan.
(Note 2) For Daiwa A Hamamatsucho, the prices are those pertaining to the Investment Corporation’s ownership interest.
(Note 3) Discount rate for Daiwa Tsukijiekimae is the figure after the 2nd fiscal year (4.0% for the 1st fiscal year).
(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 price indicated by
the DCF method are the prices pertaining to the entire Property.
(Note 5) Discount rate for Daiwa Daikanyama is the figure after the 11th fiscal year (3.4% up to the 10th fiscal year).
(Note 6) For CONCURRED Yokohama, Price indicates a price pertaining to the Investment Corporation’s ownershipinterest.

- 37 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
3.2.5. Status of Income (Loss), etc. of Individual Properties
The following table lists the status of income (loss), etc. of each property for the 27th Fiscal Period (from December 1,
2018 to May 31, 2019). Income (loss) information is presented in accordance with “2. Financial Statements; 2.7. Notes to
Significant Accounting Policies” outlined earlier.
RegionProperty name

Daiwa
Ginza

Daiwa
Ginza Annex

Daiwa
Shibaura

Daiwa
MinamiAoyama

Daiwa
Sarugakucho(Note 3)Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

Investment ratio (%)

14,100

3,050

8,265

4,550

3,190

3.1

0.7

1.8

1.0

0.7

Carrying amount (million yen)

12,920

2,749

7,980

4,413

3,161

Estimated price at end of period(million yen)

17,400

3,860

8,080

4,660

3,970

Total number of tenants (Note 1)

26

7

54

5

2

Leasable floor area (m2)

8,114.93

2,032.11

9,619.67

2,715.54

3,657.43

Leased floor area (m2)

8,082.76

2,032.11

9,541.50

2,715.54

3,657.43

End of May 2017

96.9

100.0

90.3

100.0

100.0

End of Nov. 2017

89.3

100.0

99.1

100.0

100.0

End of May 2018

95.0

100.0

99.1

84.8

100.0

End of Nov. 2018

100.0

100.0

98.3

100.0

100.0

End of May 2019

99.6

100.0

99.1

100.0

100.0

182

182

182

182

182

425,575

98,515

263,820

130,737(Not disclosed)

Rent revenue – real estate

411,787

98,515

260,480

130,737(Not disclosed)

Other lease business revenue

13,787

－

3,340

－

(Not disclosed)

Total property leasing expenses (B)(thousand yen)

179,098

32,957

96,733

41,671(Not disclosed)

Consignment expenses

23,374

5,503

17,4205,737(Not disclosed)

Utilities expenses

26,865

6,997

20,082

7,136(Not disclosed)

Taxes and dues

29,7409,751

20,496

12,479(Not disclosed)

389

90

355

140

(Not disclosed)

Repair expenses

10,703

330

7,289

1,484

(Not disclosed)

Depreciation (C)74,881

10,28431,06914,693(Not disclosed)

20－(Not disclosed)

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A)(thousand yen)

Income (loss)
information

Non-life insurance expenses

Other lease business expenses

Reference
information

13,144－

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

246,477

65,557167,087

89,065(Not disclosed)

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

321,358

75,842

198,156

103,758

92,155

Capital expenditures (F) (thousand
yen)

4,861

1,529

5,930

5,624

140

NCF [(E) – (F)] (thousand yen)

316,497

74,312

192,226

98,13492,015

Expense rate (%) [(B) ÷ (A)]

42.08

33.45

36.67

31.87

(Not disclosed)

63,41920,813

41,16925,575

14,118346,060

86,510347,210

185,215

171,199

Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 38 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
A Hamamatsucho

Daiwa
Jingumae

Daiwa
Shibadaimon

Daiwa
Misakicho(Note 3)Daiwa
Shimbashi 510

Acquisition date

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Oct. 2005

Acquisition price (million yen)

2,865

2,800

2,578

2,346

2,080

Investment ratio (%)

0.6

0.6

0.6

0.5

0.5

Carrying amount (million yen)

2,747

2,693

2,376

2,128

2,127

Estimated price at end of period(million yen)

3,810

2,880

3,290

2,870

2,530

Total number of tenants (Note 1)

12

5

6

1

7

Leasable floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,595.76

Leased floor area (m2)

3,663.38

2,198.61

2,386.48

2,137.53

2,595.76

End of May 2017

100.0

100.0

100.0

100.0

99.6

End of Nov. 2017

100.0

100.0

100.0

100.0

89.4

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

78.5

100.0

100.0

100.0

End of May 2019

100.0

100.0

100.0

100.0

100.0

182

182

182

182

182

135,884

92,08887,259(Not disclosed)

76,380Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Reference
information

135,884

78,751

87,259(Not disclosed)

76,380

Other lease business revenue－

13,336－(Not disclosed)－

Total property leasing expenses (B)(thousand yen)

105,932

29,08231,316(Not disclosed)

28,335

Consignment expenses

9,817

8,152

6,595

(Not disclosed)

7,161

Utilities expenses

9,249

4,411

6,460

(Not disclosed)

5,399

Taxes and dues

9,047

6,737

6,566

(Not disclosed)

6,049

164

76

111

(Not disclosed)

114

Non-life insurance expenses
Repair expenses

33,142485

745(Not disclosed)

317

Depreciation (C)15,111

9,212

10,837(Not disclosed)

9,293

Other lease business expenses

29,4007－(Not disclosed)－

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

29,951

63,00555,943(Not disclosed)

48,044

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

45,062

72,21866,78063,22757,338

Capital expenditures (F) (thousand
yen)

－

－

－

320

2,080

NCF [(E) – (F)] (thousand yen)

45,062

72,21866,78062,90755,257

Expense rate (%) [(B) ÷ (A)]

77.96

31.58

35.89

(Not disclosed)

37.10

17,977

13,78912,967

10,744

12,286

100,430

117,930

150,927

182,856

169,555

Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 39 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Tsukijiekimae

Daiwa
Tsukiji

Daiwa
Tsukishima

Daiwa
Nihonbashi
Horidomecho

Daiwa
Azabudai

Acquisition dateJan. 2006

Jan. 2006

Mar. 2006

May 2006

May 2006

Acquisition price (million yen)

1,560

1,240

7,840

2,520

1,600

Investment ratio (%)

0.3

0.3

1.7

0.5

0.3

Carrying amount (million yen)

1,273

1,127

6,775

2,436

1,503

Estimated price at end of period(million yen)

2,150

1,640

10,500

2,780

1,940

Total number of tenants (Note 1)

6

5

4

8

11

Leasable floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

Leased floor area (m2)2,659.59

1,487.44

8,425.69

2,850.81

1,697.88

End of May 2017

100.0

100.0

100.0

100.0

100.0

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

100.0

100.0

End of May 2019

Occupancy rate (%)
Leasing
information

100.0

100.0

100.0

100.0

100.0

Number of days of asset management

182

182

182

182

182

Total property leasing revenue (A)(thousand yen)

67,18751,535

280,562

84,69955,446

Rent revenue – real estate

Income (loss)
information

67,18751,535

280,562

84,69955,446

Other lease business revenue

－

－

－

－

－

Total property leasing expenses (B)(thousand yen)

28,707

19,161

98,36534,444

21,739Consignment expenses

3,913

3,814

11,675

4,745

3,855

Utilities expenses

5,542

2,869

15,241

5,198

3,440

Taxes and dues

5,230

4,056

14,264

6,992

5,080

89

57

269

121

68

Non-life insurance expenses
Repair expenses

376

740

900

2,060

120

Depreciation (C)13,537

7,622

56,012

15,326

9,174

Other lease business expenses

Reference
information

18

－

－

－

－

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

38,48032,373

182,197

50,25433,707

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

52,01739,996238,20965,58042,882

Capital expenditures (F) (thousand
yen)

－

－

270

1,294

1,698

NCF [(E) – (F)] (thousand yen)

52,01739,996

237,939

64,286

41,183

Expense rate (%) [(B) ÷ (A)]

42.73

37.18

35.06

40.67

39.21

10,511

8,145

29,984

13,848

10,121

120,530

109,848

102,930

234,846

108,280

Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 40 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
KyobashiDaiwa
Kojimachi
4-chomeDaiwa
Onarimon(Note 4)

Shinjuku Maynds
Tower

Daiwa
SHIBUYAEDGE

Acquisition dateJuly 2006

Oct. 2006

Dec. 2006

July 2007 andNov. 2007

July 2007

Acquisition price (million yen)

3,460

2,910

－

66,9005,900

Investment ratio (%)

0.8

0.6

－

14.5

1.3

Carrying amount (million yen)

3,188

2,822

－

64,158

5,628

Estimated price at end of period(million yen)

3,450

2,890

－

63,0005,250

Total number of tenants (Note 1)

10

7

－

38

5

Leasable floor area (m2)

3,265.83

2,695.31－

22,746.12

2,480.65

Leased floor area (m2)

3,265.83

2,695.31－

22,592.19

2,480.65

Occupancy rate (%)
Leasing
information

End of May 2017

87.9

100.0

100.0

96.6

100.0

End of Nov. 2017

87.9

100.0

100.0

96.6

100.0

End of May 2018

100.0

100.0

100.0

99.8

100.0

End of Nov. 2018

100.0

100.0

96.3

99.9

100.0

End of May 2019

100.0

100.0

－

99.3

100.0

182

182

89

182

182

103,91588,824

155,684

1,334,628

128,157

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

Income (loss)
information

103,91588,824

149,714

1,334,628

128,157

Other lease business revenue

－

－

5,969

－

－

Total property leasing expenses (B)(thousand yen)

47,56382,134

95,193

560,491

38,971

Consignment expenses

5,864

4,900

11,27485,555

6,657

Utilities expenses

8,794

6,893

13,699135,616

7,630

Taxes and dues

7,476

16,05550,166130,392

7,587

183

1,669

96

Non-life insurance expenses

119

131

Repair expenses

5,486

40,312

803

3,914

136

Depreciation (C)19,821

13,84019,066201,093

16,862Other lease business expenses

Reference
information

－

－

－

2,248

－

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

56,351

6,690

60,491

774,136

89,186

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

76,173

20,53079,558975,230

106,049

Capital expenditures (F) (thousand
yen)

1,975

485

－

5,172

2,114

NCF [(E) – (F)] (thousand yen)

74,19720,04579,558970,057

103,934

Expense rate (%) [(B) ÷ (A)]

45.77

92.47

61.14

42.00

30.41

14,97832,593－

268,526

15,967140,200

169,753－

4,460,870

62,460

Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 41 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Kodenmacho

Daiwa
Jimbocho

Daiwa
NishiShimbashi

Daiwa
Kayabacho
Building(Note 3)

Daiwa
Jimbocho
3-chomeAcquisition dateAug. 2007

Mar. 2010

Aug. 2010

Mar. 2011

Mar. 2011

Acquisition price (million yen)

2,460

4,150

5,000

5,600

3,550

Investment ratio (%)

0.5

0.9

1.1

1.2

0.8

Carrying amount (million yen)

2,354

3,964

4,678

5,208

3,334

Estimated price at end of period(million yen)

2,230

3,890

7,050

8,190

5,240

Total number of tenants (Note 1)

8

6

11

1

7

Leasable floor area (m2)2,379.31

3,164.26

4,815.84

5,899.11

2,889.34

Leased floor area (m2)2,379.31

3,164.26

4,815.84

5,899.11

2,545.95

End of May 2017

100.0

100.0

100.0

100.0

100.0

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

100.0

100.0

End of May 2019

Occupancy rate (%)
Leasing
information

100.0

100.0

100.0

100.0

88.1

Number of days of asset management

182

182

182

182

182

Total property leasing revenue (A)(thousand yen)

66,202103,021

167,803(Not disclosed)

124,000

66,202Rent revenue – real estate

Income (loss)
information

103,021

167,803(Not disclosed)

115,308

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

－

－

－

(Not disclosed)

8,692

42,97750,16286,351(Not disclosed)

45,702

Consignment expenses

5,156

9,073

20,733(Not disclosed)

7,501

Utilities expenses

5,067

7,133

10,336(Not disclosed)

7,439

Taxes and dues

3,792

11,534

16,253(Not disclosed)

9,843

Non-life insurance expenses

86

124

223

(Not disclosed)

115

Repair expenses

18,327877

3,396(Not disclosed)

947

Depreciation (C)9,724

21,15935,408(Not disclosed)

19,854

822

260

－

(Not disclosed)－

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

23,22452,85881,451(Not disclosed)

78,298

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

32,94874,017

116,860

146,990

98,153

Capital expenditures (F) (thousand
yen)

－

2,828

5,535

4,955

651

NCF [(E) – (F)] (thousand yen)

32,94871,189111,325

142,035

97,501

Expense rate (%) [(B) ÷ (A)]

64.92

48.69

51.46

(Not disclosed)

36.86

7,682

23,20832,22825,663

19,847100,234

128,200

187,580

125,988(Note 5)82,470

Other lease business expenses

Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 42 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionProperty name

E-SPACE
TOWER

Daiwa
Nihonbashi
Hongokucho

shinyoncurumuDaiwa
AkasakaDaiwa
ShibuyaMiyamasuzaka

Acquisition dateJuly 2011

May 2012

Dec. 2012 andApr. 2013

Aug. 2013

Sept. 2013

Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

24,000

1,721

9,650

9,200

7,000

5.2

0.4

2.1

2.0

1.5

Carrying amount (million yen)

23,541

1,567

9,614

10,2397,360

Estimated price at end of period(million yen)

35,9002,580

16,20015,00011,400Total number of tenants (Note 1)

Investment ratio (%)

11

5

17

17

9

Leasable floor area (m2)

13,960.87

2,143.08

6,751.31

8,747.39

6,328.94

Leased floor area (m2)

12,519.21

2,143.08

6,751.31

8,747.39

6,328.94

100.0

100.0

Occupancy rate (%)
Leasing
information

End of May 2017

100.0

100.0

99.5

End of Nov. 2017

92.8

100.0

99.5

91.4

100.0

End of May 2018

100.0

100.0

99.5

100.0

100.0

End of Nov. 2018

93.3

100.0

100.0

100.0

100.0

End of May 2019

89.6

100.0

100.0

100.0

100.0

182

182

182

182

182

765,141

71,732

394,138

357,743

301,868

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

Income (loss)
information

765,141

71,732

391,383

357,743

301,868

Other lease business revenue

－

－

2,754

－

－

Total property leasing expenses (B)(thousand yen)

239,752

24,719120,722160,690

165,252

Consignment expenses

49,1003,354

24,142

24,63424,159

Utilities expenses

48,2083,459

24,07630,215

16,275

Taxes and dues

59,644

4,533

35,211

34,39921,137

Non-life insurance expenses

598

71

305

375

267

Repair expenses

6,321

－

487

11,99378,032

Depreciation (C)75,037

13,30036,50058,871

25,343

Other lease business expenses

Reference
information

841

－

－

200

36

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

525,388

47,013

273,416

197,053

136,615

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

600,426

60,313309,916

255,924

161,959

Capital expenditures (F) (thousand
yen)

22,111

1,236

960

1,714

197,816

NCF [(E) – (F)] (thousand yen)

578,31459,077

308,956

254,209(35,856)

Expense rate (%) [(B) ÷ (A)]

31.33

34.46

30.63

44.92

54.74

124,697

9,099

74,517

71,46045,251

574,150

50,940166,089

327,392

457,625

Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 43 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionProperty name

Daiwa
Azabu Terrace

Daiwa
Ebisu 4-chome(Note 3)LAQUAS
HigashiShinjuku

Daiwa
AoyamaShinsen Place(Note 3)Acquisition dateJuly 2014

Dec. 2014

Dec. 2014

Mar. 2015

Mar. 2015

Acquisition price (million yen)Price
information

Five Central Wards of Tokyo

14,000

4,135

8,450

9,800

4,800

3.0

0.9

1.8

2.1

1.0

Carrying amount (million yen)

13,981

4,228

8,441

9,994

4,864

Estimated price at end of period(million yen)

17,400

6,100

10,90012,4006,720

Investment ratio (%)

Total number of tenants (Note 1)

12

1

4

7

1

Leasable floor area (m2)

13,234.39

2,951.70

7,498.33

4,426.10

2,811.35

Leased floor area (m2)

13,234.39

2,951.70

7,498.33

4,426.10

2,811.35

End of May 2017

99.6

100.0

100.0

85.9

100.0

End of Nov. 2017

99.6

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

Occupancy rate (%)
Leasing
information

99.6

100.0

100.0

End of Nov. 2018

99.6

100.0

100.0

91.5

100.0

End of May 2019

100.0

100.0

100.0

100.0

100.0

182

182

182

182

182

475,286(Not disclosed)

230,454

227,404(Not disclosed)

Rent revenue – real estate

471,657(Not disclosed)

230,454

227,404(Not disclosed)

Number of days of asset management
Total property leasing revenue (A)(thousand yen)

Income (loss)
information

Other lease business revenue

3,629(Not disclosed)－－(Not disclosed)

Total property leasing expenses (B)(thousand yen)

175,592(Not disclosed)

79,34956,361(Not disclosed)

Consignment expenses

35,152(Not disclosed)

9,939

16,081(Not disclosed)

Utilities expenses

48,266(Not disclosed)

13,602

7,674(Not disclosed)

Taxes and dues

33,089(Not disclosed)

21,095

13,446(Not disclosed)

Non-life insurance expenses

531(Not disclosed)

276

139

(Not disclosed)

Repair expenses

6,567(Not disclosed)

1,109

370

(Not disclosed)

Depreciation (C)51,902(Not disclosed)

33,16818,649(Not disclosed)(Not disclosed)

Other lease business expenses

Reference
information

82(Not disclosed)

158－

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

299,694(Not disclosed)

151,104

171,043(Not disclosed)

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

351,596140,076

184,273

189,692

125,481

Capital expenditures (F) (thousand
yen)

120

5,584

7,114

802

292

NCF [(E) – (F)] (thousand yen)

351,476

134,492

177,158

188,890

125,189

Expense rate (%) [(B) ÷ (A)]

36.94

(Not disclosed)

34.43

24.78

(Not disclosed)

67,24819,942

42,084

28,63917,262

491,112

115,410

125,440

97,530112,510Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 44 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionFive Central Wards of Tokyo

Property nameGlass City
Shibuya

Daiwa
River Gate

Daiwa
Hatchobori
ekimaeDaiwa
Hatchobori
ekimae West

Daiwa
Nishi-Shinjuku

Acquisition date

May 2015

June 2015

Sept. 2015

Sept. 2015

Mar. 2016

Acquisition price (million yen)

16,00028,000

2,871

1,647

13,710Investment ratio (%)
Price
information Carrying amount (million yen)

3.5

6.1

0.6

0.4

3.0

15,91927,837

2,923

1,717

13,991

Estimated price at end of period(million yen)

21,30032,600

3,360

1,860

16,000Total number of tenants (Note 1)

12

93

9

8

7

Leasable floor area (m )8,566.73

32,055.85

2,622.42

1,723.15

6,967.61

Leased floor area (m2)

8,566.73

31,963.52

2,622.42

1,723.15

6,967.61

End of May 2017

100.0

90.3

100.0

100.0

99.3

End of Nov. 2017

100.0

98.1

100.0

100.0

100.0

End of May 2018

100.0

99.4

100.0

100.0

100.0

End of Nov. 2018

100.0

99.3

100.0

100.0

100.0

End of May 2019

100.0

99.7

100.0

100.0

100.0

182

182

182

182

182

397,162

1,069,611

83,29347,491

338,420

397,162

1,062,880

83,29347,491

338,420

2

Occupancy rate (%)
Leasing
information

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

Income (loss)
information

Other lease business revenue

－

6,730

－

－

－

Total property leasing expenses (B)(thousand yen)

144,600

454,361

61,16817,166

92,640Consignment expenses

59,02982,346

6,929

4,822

14,666

Utilities expenses

22,751

124,667

6,154

3,148

17,230

Taxes and dues

28,550103,435

9,263

4,220

37,612Non-life insurance expenses

330

1,596

116

59

280

Repair expenses

745

11,30328,394110

1,490

Depreciation (C)33,193130,891

10,3104,806

21,167

Other lease business expenses

Reference
information

－

120

－

－

193

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

252,562

615,250

22,12430,324

245,779

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

285,755

746,142

32,43535,130266,946

Capital expenditures (F) (thousand
yen)

2,121

35,707

－

－

8,837

NCF [(E) – (F)] (thousand yen)

283,634

710,434

32,43535,130258,109

Expense rate (%) [(B) ÷ (A)]

36.41

42.48

73.44

36.15

27.37

57,711

204,884

18,446

8,457

78,363202,340

1,970,900

114,190

84,620284,170

Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 45 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionProperty nameAcquisition date

Price
information

Five Central Wards of Tokyo
Kirin Nihonbashi
Daiwa
Building
Higashi-nihonbas(Note 3)hi Building
May 2016

June 2016

Daiwa
Daikanyama(Note 3)

Shinjuku West
Building

Daiwa
Kanda Mikura-cho
Building

June 2016

July 2016

Dec. 2016

Acquisition price (million yen)

8,180

6,370

2,280

942

1,592

Investment ratio (%)

1.8

1.4

0.5

0.2

0.3

Carrying amount (million yen)

8,390

6,290

2,380

979

1,592

Estimated price at end of period(million yen)

8,290

6,860

3,510

1,210

1,770

Total number of tenants (Note 1)

1

5

1

8

7

Leasable floor area (m2)

5,630.17

5,015.88

1,642.83

1,120.58

1,719.51

Leased floor area (m2)

5,630.17

5,015.88

1,642.83

1,120.58

1,719.51

End of May 2017

100.0

100.0

100.0

100.0

69.5

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

99.0

100.0

End of May 2019

100.0

100.0

100.0

100.0

100.0

182

182

182

182

182

Occupancy rate (%)
Leasing
information

Number of days of asset management
Total property leasing revenue (A)(thousand yen)

Income (loss)
information(Not disclosed)

173,721(Not disclosed)

38,31650,754

Rent revenue – real estate(Not disclosed)

173,721(Not disclosed)

38,31650,754

Other lease business revenue(Not disclosed)－(Not disclosed)－－

Total property leasing expenses (B)(thousand yen)

(Not disclosed)

55,213(Not disclosed)

11,873

15,978

Consignment expenses(Not disclosed)

7,023(Not disclosed)

3,503

4,331

Utilities expenses(Not disclosed)

10,575(Not disclosed)

2,685

2,796

Taxes and dues

(Not disclosed)

11,667(Not disclosed)

3,113

3,496

Non-life insurance expenses(Not disclosed)

187(Not disclosed)

38

51

Repair expenses(Not disclosed)

586(Not disclosed)

261

343

Depreciation (C)(Not disclosed)

25,174(Not disclosed)

2,259

4,959

Other lease business expenses(Not disclosed)－(Not disclosed)

12－(Not disclosed)

118,508(Not disclosed)

26,442

34,776

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

156,045

143,682(33,187)

28,701

39,735

Capital expenditures (F) (thousand
yen)

802

1,165

9,206

1,782

－

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

NCF [(E) – (F)] (thousand yen)
Expense rate (%) [(B) ÷ (A)]
Reference
information

Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)

155,243

142,517(42,393)

26,91939,735(Not disclosed)

31.78(Not disclosed)

30.99

31.48

22,18423,254

10,300

6,229

7,047

216,720

158,880

45,044

79,33074,026- 46 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionPrice
information

Five Central Wards of Tokyo

Property name

Daiwa
Kanda East

Prime Kanda
Building

Sasazuka NA
Building

Sasazuka South
Building

Glass City
HarumiAcquisition dateJan. 2018

June 2018 andNov. 2018

Oct. 2018

Dec. 2018

Feb. 2019

Acquisition price (million yen)

4,200

2,295

15,5003,000

11,200Investment ratio (%)

0.9

0.5

3.4

0.7

2.4

Carrying amount (million yen)

4,285

2,377

16,072

3,110

11,281

Estimated price at end of period(million yen)

5,470

2,760

16,1003,340

12,000Total number of tenants (Note 1)

5

9

5

8

6

Leasable floor area (m2)

3,980.56

2,211.64

16,160.25

3,758.00

11,227.10

Leased floor area (m2)

3,980.56

2,211.64

16,160.25

3,611.08

5,320.58

Occupancy rate (%)
Leasing
information

End of May 2017

－

－

－

－

－

End of Nov. 2017

－

－

－

－

－

End of May 2018

91.8

－

－

－

－

End of Nov. 2018

100.0

100.0

100.0

－

－

End of May 2019

100.0

100.0

100.0

96.0

47.3

182

182

182

156

94

138,966

63,981

467,293

77,10972,935

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

Income (loss)
information

138,966

63,981

464,516

77,10972,935

Other lease business revenue

－

－

2,776

－

－

Total property leasing expenses (B)(thousand yen)

41,25417,758183,016

24,657110,310Consignment expenses

10,972

6,660

49,227

6,699

81,573

Utilities expenses

10,0094,347

67,552

7,924

5,399

Taxes and dues

134

41

9

17

74

Non-life insurance expenses

136

64

724

114

210

Repair expenses

1,603

132

5,600

245

－

Depreciation (C)18,396

6,511

59,903

9,656

23,051Other lease business expenses

－

－

－

－

－

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

97,712

46,222284,276

52,452(37,374)

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

116,10952,733

344,179

62,108(14,323)

Capital expenditures (F) (thousand yen)

Reference
information

974

805

52,676603－

NCF [(E) – (F)] (thousand yen)

115,134

51,928291,50361,505(14,323)

Expense rate (%) [(B) ÷ (A)]

29.69

27.76

39.17

31.98

－

20,6639,140

110,514

17,584－

133,61176,730718,270

129,490

253,020

Annual amount of fixed property tax,
etc. for fiscal 2019 (thousand yen)
Estimated long-term repair expenses(thousand yen) (Note 2)- 47 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionProperty nameAcquisition date

Greater Tokyo
Daiwa
Daiwa
Higashi-Ikebukuro Shinagawa North
Oct. 2005

July 2007

Daiwa
Osaki 3-chome

Daiwa
Kamiooka

Integral Tower

Sept. 2012

Mar. 2013

May 2014

Acquisition price (million yen)

2,958

7,710

1,650

2,000

15,220Investment ratio (%)

Price
information Carrying amount (million yen)

0.6

1.7

0.4

0.4

3.3

2,633

7,116

1,584

1,875

15,738Estimated price at end of period(million yen)

4,250

6,210

2,480

2,840

22,000Total number of tenants (Note 1)

8

11

5

9

9

Leasable floor area (m2)

4,461.47

6,548.17

1,786.06

2,630.30

17,778.14

Leased floor area (m2)

4,461.47

6,548.17

1,786.06

2,630.30

17,710.63

End of May 2017

100.0

100.0

100.0

100.0

100.0

End of Nov. 2017

100.0

100.0

100.0

100.0

100.0

End of May 2018

100.0

100.0

100.0

100.0

100.0

End of Nov. 2018

100.0

100.0

100.0

100.0

100.0

End of May 2019

100.0

100.0

100.0

100.0

99.6

182

182

182

182

182

122,856

196,306

65,496

93,212

659,394

122,856

196,306

65,496

93,212

659,394

－

－

－

－

－

106,935

88,476

22,83339,162

283,083

Consignment expenses

12,052

15,402

3,727

5,277

53,128

Utilities expenses

13,535

15,284

3,351

8,319

77,370

Taxes and dues

8,567

18,885

4,006

6,414

45,204

197

304

65

110

779

Repair expenses

48,130

2,427

254

973

6,050

Depreciation (C)24,451

35,982

11,42818,06599,921

－

190

－

－

630

15,921

107,830

42,66254,049376,31140,373

143,81254,091

72,115476,232

13,432

8,978

1,411

－

5,904

NCF [(E) – (F)] (thousand yen)

26,940134,833

52,68072,115

470,328

Expense rate (%) [(B) ÷ (A)]

87.04

45.07

34.86

42.01

42.93

17,12337,023

7,995

12,79889,302

228,260

331,160

54,91563,700575,795

Occupancy rate (%)
Leasing
information

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

Income(loss)
information

Non-life insurance expenses

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

Annual amount of fixed property
Reference tax, etc. for fiscal 2019 (thousand
information yen)
Estimated long-term repair
expenses(thousand yen) (Note 2)- 48 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period
RegionProperty name

Daiwa
Meguro Square

Daiwa
Ogikubo

CONCURRED
Yokohama

Kita-Shinagawa
Gotenyama Building

Daiwa
Kitahama

Acquisition date

May 2015

July 2016

Jan. 2018

Sept. 2018

Aug. 2014

Acquisition price (million
yen)

5,600

3,800

38,100

2,500

9,481

1.2

0.8

8.3

0.5

2.1

5,494

3,983

38,136

2,583

9,173

6,910

4,610

39,9002,650

11,700

16

12

36

6

7

3,519.50

3,849.63

28,052.98

2,396.96

13,517.62

3,519.50

3,849.63

27,714.30

2,396.96

11,749.06

End of May 2017

100.0

100.0

－

－

98.8

End of Nov. 2017

100.0

100.0

－

－

100.0

End of May 2018

100.0

100.0

93.2

－

100.0

End of Nov. 2018

100.0

100.0

99.3

58.6

100.0

End of May 2019

100.0

100.0

98.7

100.0

86.9

182

182

182

182

182

162,712

127,276

990,724

61,048342,683

162,712

127,276

989,706

61,048342,683

－

－

1,018

－

－

56,92439,503

288,237

21,668

149,627

Investment ratio (%)
Price
Carrying amount (million
information yen)
Estimated price at end of
period(million yen)
Total number of tenants(Note 1)
2

Leasable floor area (m )2Leased floor area (m )Leasing
information

Occupancy rate (%)

Number of days of asset
management
Total property leasing
revenue (A)(thousand yen)
Rent revenue – realestateOther lease businessrevenue
Total property leasing
expenses (B)(thousand yen)
Consignment
expenses
Income(loss)
information

Major Regional
CitiesGreater Tokyo

9,716

9,528

55,4808,876

25,065

Utilities expenses

8,810

6,344

86,448

3,898

33,586

Taxes and dues

13,836

8,089

28,72717

33,833Non-life insurance
expenses

154

132

767

81

519

Repair expenses

1,230

2,402

2,613

2,969

2,178

Depreciation (C)23,17413,006113,314

5,673

54,148

－

－

885

150

296

105,787

87,773

702,487

39,380193,056

128,962

100,780

815,801

45,053

247,204

1,364

6,642

29,526

929

3,084

127,598

94,137786,274

44,124244,120

34.98

31.04

29.09

35.49

43.66

27,37016,332

153,211

10,97969,876

110,053

161,340

718,980

102,564

275,080

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)] (thousandyen)
Expense rate (%) [(B) ÷(A)]
Annual amount of fixed
Reference property tax, etc. for fiscal
information 2019 (thousand yen)
Estimated long-term repair
expenses(thousand yen) (Note 2)- 49 -

Daiwa Office Investment Corporation (8976) Financial Report for the 27th Fiscal Period(Note 1) Total number of tenants is the number of end-tenants. When there is a tenant occupying multiple buildings, theconcerned tenant is counted and stated for each individual building.
(Note 2) Estimated long-term repair expenses are the total amount of repair expenses and renewal expenses estimated to arise
over the 12-year period from the 1st year to the 12th year as stated in the building investigation diagnosis report.
(Note 3) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc. forthe property.
(Note 4) Daiwa Onarimon Building was divested on February 28, 2019.
(Note 5) Estimated long-term repair expenses of “Daiwa Kayabacho Building” are the total amount of repair expenses andrenewal expenses estimated to arise over the 10-year period from the 1st year to the 10th year as stated in thebuilding investigation diagnosis report.

- 50 -