April 18, 2019

Financial Results for the Fiscal Period Ended February 28, 2019
(September 1, 2018 - February 28, 2019)

Real estate investment trust unit issuer: Daiwa House REIT Investment Corporation (“DHR”)
Listing:
Tokyo Stock Exchange
Securities code: 8984
URL:
https://www.daiwahouse-reit.co.jp/en/
Representative: Jiro Kawanishi, Executive Director
Asset manager: Daiwa House Asset Management Co., Ltd.
Representative: Koichi Tsuchida, President and CEO
Inquiries:
Haruto Tsukamoto, Director and CFO
TEL: +81-3-3595-1265
Scheduled date of submitting Securities Report:
May 30, 2019
Scheduled date of starting distribution payments:
May 13, 2019
Supplementary materials for the financial results provided: Yes
Results briefing for the period:
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen)

1.

Financial results for the fiscal period ended February 28, 2019
(September 1, 2018 - February 28, 2019)(1) Operating results
Operating revenues
Millions of yen%
Fiscal period ended
February 28, 2019
Fiscal period ended
August 31, 201823,127

4.1

9,960

7.5

8,597

10.6

8,597

10.7

22,211

12.7

9,269

15.7

7,770

8.7

7,765

8.7

Basic earnings
per unit
Fiscal period ended
February 28, 2019
Fiscal period ended
August 31, 2018
(Note)(Percentage figures represent period-on-period changes)
Operating profit
Ordinary profit
ProfitMillions of yen% Millions of yen% Millions of yen%

Return on equity(ROE)

Ordinary profit tototal assets ratio

Ordinary profit tooperating revenues ratio
%
%

Yen

%

4,461

2.0

1.1

37.2

4,083

1.9

1.1

35.0

Please refer to “Per Unit Information” on page 35 for the number of investment units used as the basis for calculating
basic earnings per unit.

(2) Distributions
Distributions
per unit

Total
distributions(excluding
distributions inexcess of earnings
per unit)(excluding
distributions inexcess of
earnings)

Yen Millions of yen
Fiscal period ended
February 28, 2019
Fiscal period ended
August 31, 2018

Distributions
in excess ofearnings
per unit

Total
distributions
in excess ofearnings

Payout ratio

Distributions to
net assets ratio

Yen Millions of yen

%

%

5,427

10,457

0

0

121.7

2.4

5,046

9,723

0

0

123.6

2.3

(Note 1) For the fiscal period ended February 28, 2019, the funds from which distributions are paid out are the amountincluding the reversal of reserve for temporary difference adjustments of ¥1,980 million and the accumulation ofreserve for distribution of ¥120 million, and differ from “profit.”Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Note 2) For the fiscal period ended August 31, 2018, the funds from which distributions are paid out are the amount including
the reversal of reserve for temporary difference adjustments of ¥1,980 million and the accumulation of reserve for
distribution of ¥22 million, and differ from “profit.”(3) Financial position
Total assets
Millions of yen
777,727
771,281

Net assets
Millions of yen
429,223
430,596

Net cash provided by(used in) operating
activities

Net cash provided by(used in) investing
activities

Net cash provided by(used in) financing
activities

Millions of yen

Millions of yen

Millions of yen

20,030(13,520)(2,719)41,25013,879(95,543)

78,102

37,460

As of February 28, 2019
As of August 31, 2018

Equity ratio
%
55.2
55.8

Net assets per unit
Yen
222,741
223,454(4) Cash flows

Fiscal period ended
February 28, 2019
Fiscal period ended
August 31, 20182.

Cash andcash equivalents
at end of period
Millions of yen

Forecasts of operating results for the fiscal period from March 1, 2019 to August 31,
2019 and for the fiscal period from September 1, 2019 to February 29, 2020

Operatingrevenues(Percentage figures represent period-on-period changes)
Distributions
Distributions
per unit
Ordinaryin excess of(excluding
Profitprofitearnings
distributions in
per unit
excess of earnings

Operatingprofitper unit)

Fiscal period ending
August 31, 2019
Fiscal period ending
February 29, 2020

Millionsof yen% Millionsof yen% Millionsof yen% Millionsof yen

%

Yen

Yen

24,585

6.3

10,438

4.8

8,747

1.7

8,747

1.7

5,170

0

24,911

1.3

10,668

2.2

9,161

4.7

9,161

4.7

5,370

0

(Reference) Forecasted basic earnings per unit
For the fiscal period ending August 31, 2019:¥4,215For the fiscal period ending February 29, 2020:¥4,414(Note 1) For the fiscal period ending August 31, 2019, the funds from which distributions are paid out are the amount including
the reversal of reserve for temporary difference adjustments of ¥1,982 million, and differ from “profit.”(Note 2) For the fiscal period ending February 29, 2020, the funds from which distributions are paid out are the amountincluding the reversal of reserve for temporary difference adjustments of ¥1,982 million, and differ from “profit.”Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

*

Other

(1) Changes in accounting policies, changes in accounting estimates and retrospective restatement
a.
b.
c.
d.

Changes in accounting policies due to amendment of accounting standards and other regulations: None
Changes in accounting policies due to reasons other than a. above: None
Changes in accounting estimates: None
Retrospective restatement: None

(2) Total number of investment units issued
a. Total number of investment units issued at the end of the period (including treasury investment units)
As of February 28, 2019
1,927,000 units
As of August 31, 2018
1,927,000 units
b. Number of treasury investment units at the end of the period
As of February 28, 2019
0 units
As of August 31, 2018
0 units(Note) Please refer to “Per Unit Information” on page 35 for the number of investment units used as the basis
for calculating basic earnings per unit.

* Status of auditing proceduresThis financial results report is not subject to auditing procedures pursuant to the Financial Instruments
and Exchange Act (Act No. 25 of 1948, as amended; hereinafter referred to as the “FIE Act”).
Accordingly, as of the time of disclosure of this financial results report, DHR had not completed auditing
procedures pursuant to the FIE Act.
* Remarks on appropriate use of forecasts of operating results and other special notes
The forward-looking statements, including operating results forecasts, contained in these materials are
based on information currently available to DHR and on certain assumptions deemed reasonable by
DHR. The actual operating and other results may differ significantly from those presented herein as aconsequence of numerous factors. These forecasts also do not guarantee the amount of distributions.
Please refer to “Assumptions for Forecasts of Operating Results for the Fiscal Period Ending August 31,
2019 and February 29, 2020” on pages 11 and 12 for information on assumptions for the forecasts ofoperating results.
At the board of directors meetings held on February 8, 2019 and February 20, 2019, it was decided toissue new investment units through public offering and through third-party allotment. The payment for
the issuance of new investment units through public offering was completed on March 1, 2019, while thepayment for the issuance of new investment units through third-party allotment was completed on March
26, 2019.
The above figures in “2. Forecasts of operating results for the fiscal period from March 1, 2019 toAugust 31, 2019 and for the fiscal period from September 1, 2019 to February 29, 2020,” are based on
DHR’s assumption of the number of investment units issued of 2,075,000 units, which is the total of
1,927,000 investment units issued as of February 28, 2019 and 148,000 new investment units issued as
described above (public offering: 138,000 units, third-party allotment: 10,000 units).
Disclaimer:This English translation has been prepared for general reference purposes only. DHR shall not be
responsible for any consequence resulting from the use of the English translation in place of theoriginal Japanese text. In any legal matter, readers should refer to and rely upon the original Japanese
text released on April 18, 2019.

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Index
1. The Investment Corporation and Related Corporations.............................................................................. 2
2. Operating Policies and Results ................................................................................................................... 2(1) Operating Policies ............................................................................................................................... 2(2) Operating Results ................................................................................................................................ 2(3) Investment Risk ................................................................................................................................. 10
3. Financial Statements ................................................................................................................................. 13(1) Balance Sheets................................................................................................................................... 13(2) Statements of Income ........................................................................................................................ 16(3) Statements of Unitholders’ Equity .................................................................................................... 17(4) Statements of Cash Distributions ...................................................................................................... 19(5) Statements of Cash Flows ................................................................................................................. 20(6) Notes on Assumption of Going Concern........................................................................................... 22(7) Notes on Important Accounting Policies........................................................................................... 22(8) Notes to Financial Statements ........................................................................................................... 24(9) Changes in Number of Investment Units Issued ............................................................................... 39
4. Changes in Officers .................................................................................................................................. 40(1) Changes in DHR’s Directors ............................................................................................................. 40(2) Changes in Officers of Asset Manager.............................................................................................. 41
5. Reference Information .............................................................................................................................. 45(1) Portfolio List ..................................................................................................................................... 45(2) Summary of Major Tenants............................................................................................................... 85(3) Summary on Appraisal Report .......................................................................................................... 86(4) Summary on Engineering Report ...................................................................................................... 97(5) Status of Portfolio Diversification ................................................................................................... 101(6) Capital Expenditures for Properties Held ........................................................................................ 102-1-

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

1. The Investment Corporation and Related Corporations
As there have been no significant changes with respect to the “Scheme of Investment Corporation” fromsuch content provided in the latest Securities Report (submitted on November 21, 2018; prepared inJapanese only), such disclosure has been omitted.

2. Operating Policies and Results(1) Operating Policies
As there have been no significant changes with respect to the “Investment Policy,” “Investment Targets,”and “Distribution Policy” from such content provided in the latest Securities Report (submitted on
November 21, 2018; prepared in Japanese only), such disclosure has been omitted.
(2) Operating Resultsi) Summary of results for the current fiscal period
A. Transition of the Investment Corporation
DHR is a real estate investment trust (J-REIT) whose sponsor is Daiwa House Industry Co., Ltd.
(hereinafter referred to as “Daiwa House”) and whose asset manager is Daiwa House AssetManagement Co., Ltd. (hereinafter referred to as the “Asset Manager”), a wholly owned subsidiary of
Daiwa House.
DHR was listed on the Real Estate Investment Trust (REIT) Market of the Tokyo Stock Exchange,
Inc. (hereinafter referred to as the “Tokyo Stock Exchange”) on March 22, 2006, and then later
merged with New City Residence Investment Corporation (hereinafter referred to as “NCR”) on April
1, 2010 (hereinafter referred to as “the merger with NCR”). Subsequently on December 1, 2011, thecorporate name was changed to Daiwa House Residential Investment Corporation (the corporation
prior to change of corporate name to “Daiwa House REIT Investment Corporation” is hereinafterreferred to as the “former DHI”), and accordingly changed its investment targets to residential
properties.
The former Daiwa House REIT Investment Corporation (the Daiwa House REIT Investment
Corporation, which was dissolved upon having merged with DHR as of September 1, 2016, ishereinafter referred to as the “former DHR”) was established on September 14, 2007, whose asset
manager was Daiwa House REIT Management Co., Ltd., a wholly owned subsidiary of Daiwa House.
The former DHR was listed on the Tokyo Stock Exchange Real Estate Investment Trust (REIT)
Market on November 28, 2012, as a REIT that targets investment in logistics and retail properties.
On September 1, 2016, the former DHI and the former DHR (hereinafter collectively referred to as
the “Investment Corporations”) conducted an absorption-type merger (hereinafter referred to as the“Merger”) whereby the former DHI was the surviving corporation and the former DHR was theabsorbed corporation, shifted to a diversified REIT portfolio that targets investment in new asset
classes such as hotel and office properties, in addition to those that the Investment Corporations hadtargeted for investment in the past, and changed its corporate name from Daiwa House Residential
Investment Corporation to Daiwa House REIT Investment Corporation.

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Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

B. Performance for the current fiscal period
DHR acquired four properties for a total acquisition price(Note 1) of ¥12.7 billion through the Daiwa
House Group(Note 2)’s pipeline, etc. in September and December 2018 by a combination of funds inhand and loans. Furthermore, in December 2018, DHR sold one residential property for a sales priceof ¥1.2 billion. As a result, DHR’s portfolio as of the end of the current fiscal period consists of 216
properties with an asset value of ¥683.4 billion(Note 3).
(Note 1) “Acquisition price” is the purchase price stipulated in the respective purchase agreements of assets owned by
DHR (not including expenses pertaining to acquisitions, settlement money such as taxes and public dues,
consumption taxes, or leasehold guarantee deposits, etc.), except as otherwise noted. However, theacquisition prices of properties previously owned by NCR have been presented as the appraisal values as ofFebruary 28, 2010, which were the prices received at the time of the merger with NCR, and the acquisition
prices of properties previously owned by the former DHR have been presented as the appraisal values as ofAugust 31, 2016, which were the prices received at the time of the merger with the former DHR. The “totalacquisition price” has been rounded down to the nearest unit. The same shall apply hereinafter.
(Note 2) The Daiwa House Group comprises Daiwa House, which is the parent company, 332 consolidated
subsidiaries, 1 non-consolidated subsidiary, 39 equity-method affiliates and 3 non-equity-method affiliates
as of December 31, 2018. The Asset Manager is a member of the group. The same shall apply hereinafter.
(Note 3) “Asset value” is the aggregate total of the acquisition prices of respective assets owned by DHR at respective
points in time, except as otherwise noted. The same shall apply hereinafter.

C. Overview of financing
DHR conducted debt financing of ¥7,000 million on September 27, 2018 and December 7, 2018, toprovide for some of the acquisition costs and the related expenses for the acquisition of properties
through the Daiwa House Group’s pipeline, etc.
As a result, the balance of interest-bearing debt outstanding as of the end of the current fiscal periodamounted to ¥321,268 million (loan balance: ¥302,268 million, investment corporation bond balance:¥19,000 million), which is an increase of ¥7,000 million in comparison with the previous fiscal
period. As of the end of the current fiscal period, its LTV (including goodwill)(Note 1) was 41.3%, andits LTV (excluding goodwill)(Note 2) was 45.4%.
(Note 1) “LTV (including goodwill)” is obtained using the following formula. The same shall apply hereinafter.
LTV (including goodwill) = total amount of interest-bearing debt (borrowings + investment corporation
bonds) ÷ total assets (including goodwill) × 100(Note 2) “LTV (excluding goodwill)” is obtained using the following formula. The same shall apply hereinafter.
LTV (excluding goodwill) = total amount of interest-bearing debt (borrowings + investment corporation
bonds) ÷ total assets (excluding goodwill) × 100

The credit ratings of DHR as of the date of this financial results report are as follows:
Rating agency

Type

Rating/Outlook

Rating and Investment Information, Inc. (R&I)

Issuer rating

A+ Positive

Long-term issuer rating

AA Stable

Japan Credit Rating Agency, Ltd. (JCR)

D. Difference between real estate appraisal value and book value
The total appraisal value of assets held at the end of the current fiscal period was ¥753,721 million,
and the amount of unrealized gain(Note) on the portfolio, which is the difference compared to the bookvalue was ¥93,224 million.
(Note)“Unrealized gain” is the positive valuation difference when the appraisal value exceeds the book value ofreal estate properties (excluding construction in progress and construction in progress in trust). (Negative
valuation difference is referred to as unrealized loss.) The same shall apply hereinafter. Please note that
unrealized gain is not guaranteed to be realized as a result of the sale of real estate.

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Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

E. Overview of financial results
As a result of the abovementioned investment management activities, in the current fiscal period,
DHR posted operating revenues of ¥23,127 million, operating profit of ¥9,960 million, ordinary profitof ¥8,597 million, and profit of ¥8,597 million (¥4,461 per investment unit).
Furthermore, based on its distribution policy, DHR reversed ¥1,980 million (¥1,028 per investmentunit) as the amount equivalent to amortization of goodwill from reserve for temporary difference
adjustments to top up profit, while at the same time, ¥120 million (¥62 per investment unit) recorded
as gain on sale of real estate properties and refunded consumption taxes relating to properties that
DHR acquired in prior years was accumulated as reserve for distribution. As a result, total
distributions amounted to ¥10,457 million (¥5,427 per investment unit).
ii) Outlook for next fiscal period
A. Investment environment
During the current fiscal period, despite sluggish exports, the Japanese economy continued on a
gradual recovery trend. The GDP growth rate (the 2nd preliminary) turned negative temporarily for
July to September 2018 against the previous quarter due to factors including natural disasters and highcrude oil prices, but shifted to positive for October to December with a real GDP growth rate of 0.5%
(1.9% annualized), as the Japanese economy remained firm. According to the quarterly Financial
Statements Statistics of Corporations by Industry, conditions including corporate earnings showed
quarterly sales maintaining consecutive increases year on year. Despite remaining at a high level,
ordinary profit has stalled, having fallen for two consecutive quarters (July to December). Capital
expenditure for October to December showed a positive percent change of 3.3% compared with thecorresponding quarter of the previous year in contrast for July to September, which had a negative
percent change. As for consumer spending, against the backdrop of tightening labor supply anddemand and improvement in the employment environment, consumption is expected to growgradually in the future. In terms of the outlook going forward, amid an increasing sense of uncertainty
including a slowdown in the Chinese economy, items such as trends in economic policy and policy
rates in major foreign countries, concern over trade friction between the US and China, and the UK’s
departure from the EU could affect the Japanese economy going forward, and these trends requiresufficient attention.
In Japan’s real estate market, according to the Land Value LOOK Report for the fourth quarter of2018 released by the Ministry of Land, Infrastructure, Transport and Tourism in February 2019,
among the 100 intensively used districts of major cities, land value rose in 97 districts (compared with
96 districts in the third quarter of 2018), stayed flat in 3 districts (compared with 4 districts in the third
quarter of 2018), and dropped in 0 districts (compared with 0 districts in the third quarter of 2018).
The main reason that the percentage of districts with rising prices maintained such a high level was acontinuing strong investment sentiment for offices, stores, and condominiums, etc. owing topersistently favorable office market conditions such as lower vacancy rates and higher rents,
particularly in the three major metropolitan areas, cities becoming more vibrant due to ongoingredevelopment projects, robust construction demand for stores and hotels in response to the increasing
number of visitors to Japan, and robust condominium demand in highly convenient regions.
In Japan’s stock market in 2018, the TOPIX experienced weak performance for the full year, falling
17.8% annually. However, the J-REIT market enjoyed strong performance due to capital inflows fromforeign investors, and the Tokyo Stock Exchange REIT Index rose 6.7% from 1,662.92 points at theend of 2017 to 1,774.06 points at the end of 2018. Since entering 2019, the index remained firm,reaching 1,850.03 points at the end of the current fiscal period.
Under the aforementioned environment, the investment environment is expected to continue to be
tough due to lowering capitalization rates used in real estate appraisals, rising land prices, soaring
construction costs, and other factors. Nevertheless, DHR will continue to ensure sustainable profits
while making use of the Daiwa House Group’s integrated capabilities, and real estate development
knowhow.

-4-Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

B. Future operating policies and issues to be addressed(a) Growth strategy
Due to its shift to a diversified REIT portfolio as a result of the Merger, taking advantage of the
expanded opportunities to acquire properties from an extensive range of asset classes, DHR aims tosteadily grow its asset size while maximizing unitholder value by securing stable income over thelong term.
Due to its shift to a diversified REIT portfolio, DHR’s portfolio now includes a range of assets withvarying risk-return profiles, and as of the date of this financial results report, maintains highoccupancy rates for assets held across all asset classes. By investing in various types of assets, DHR
deems that it will be able to diversify its portfolio and mitigate the risk of excessive reliance on alimited number of tenants in order to boost portfolio income and generate more consistent cash
flows.
DHR carefully selects and acquires assets that contribute to increasing unitholder value mainly
through the Daiwa House Group’s pipeline and plans to maintain its policy of selective investment
going forward.
Furthermore, through continuous property replacement, DHR aims to increase the quality of its
portfolio and realize increased unitholder value.
(b) Distribution policy
As of the end of the current fiscal period, DHR had a total of ¥507 million in tax loss
carryforwards(Note 1), ¥8,804 million in reserve for temporary difference adjustments (before reversal
for the current fiscal period; the amount after reversal is ¥6,823 million), and ¥1,986 million inreserve for distribution (before accumulation for the current fiscal period; the amount after
accumulation is ¥2,106 million).
DHR changed part of its distribution policy in the fiscal period ended February 28, 2017 and makes
it a policy to reverse the amount equivalent to amortization of goodwill from the reserve fortemporary difference adjustments and to use this to top up profit.
In case profit falls below the initially expected amount due to losses incurred in special cases suchas loss on sale of real estate properties, in case of the dilution of distribution due to capital increase,in case sufficient revenues could not be secured due to short operation periods of properties
acquired during a fiscal period along with a capital increase, or in the case of extraordinary
expenses such as issuance expenses arising, DHR plans to reverse the reserve for temporary
difference adjustments(Note 2).
Goodwill recognized from the Merger is amortized over 20 years using the straight-line method. As
described above, although DHR plans to reverse the amount equivalent to amortization of goodwill
from the reserve for temporary difference adjustments and distribute it, after the reversal of thereserve for temporary difference adjustments is complete, DHR plans to pay distributions in excessof earnings of the amount equivalent to amortization of goodwill (distribution of reserve fortemporary difference adjustments).
DHR’s policy is to flexibly utilize voluntary reserve and subsequently pay distributions in excess ofearnings (distribution of reserve for temporary difference adjustments) to realize stabilization of
distributions on a medium- to long-term basis(Note 3) while ensuring the level of distributions not
impacted by the amortization of goodwill that accompanied the Merger.
(Note 1) The loss carryforwards inherited from the former DHR as a result of the Merger is ¥507 million and thecarryforward period for such loss carryforwards will be until the end of the fiscal period ending February 28,
2021.
(Note 2) DHR’s reversals of reserve for temporary difference adjustments do not fall under distributions in excess ofearnings (return of unitholders’ capital).
(Note 3) Under the above distribution policy, DHR has the policy to stabilize distributions. However, it is notintended as a guarantee or promise of the payment of distribution and amounts thereof.

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Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

C. Financial strategy
DHR seeks as its basic policy to execute a well-planned and flexible financial strategy with the aim of
ensuring sustainable profits on a medium- to long-term basis, contributing to the steady growth andefficient management of its properties and creating management stability.
DHR is also working to improve the stability of its financial base by maintaining and expanding its
strong lender formation through initiatives geared toward diversifying methods of raising capitalthrough issuance of investment corporation bonds, and by promoting use of long-term fixed rates oninterest-bearing debt and staggering repayment dates.

D. Forecasts of operating results for the fiscal periods ending August 31, 2019 and February 29, 2020

Operatingrevenues

OperatingprofitOrdinary
profitProfitDistributions
per unit(excluding
distributions
in excess ofearnings per
unit)

Distributions
in excess ofearnings perunit

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Yen

Fiscal period ending
August 31, 201924,585

10,438

8,747

8,747

5,170

0

Fiscal period ending
February 29, 2020

24,911

10,668

9,161

9,161

5,370

0

(Note 1) For the fiscal period ending August 31, 2019, the funds from which distributions are paid out are the amountincluding the reversal of reserve for temporary difference adjustments of ¥1,982 million, and differ from“profit.”(Note 2) For the fiscal period ending February 29, 2020, the funds from which distributions are paid out are the amountincluding the reversal of reserve for temporary difference adjustments of ¥1,982 million, and differ from“profit.”For the assumptions for the forecasts above, please refer to “Assumptions for Forecasts of Operating
Results for the Fiscal Period Ending August 31, 2019 and February 29, 2020” on pages 11 and 12.
Due to changes in the circumstances surrounding DHR, actual operating revenues, operating profit,
ordinary profit, profit, distributions per unit and distributions in excess of earnings per unit may
change. Furthermore, these forecasts do not guarantee the amount of distributions.
iii) Significant events after balance sheet date
A. Issuance of new investment units
At the board of directors meetings held on February 8, 2019, and on February 20, 2019, it was
resolved to issue new investment units, as follows. The payment for the new investment units issued
through public offering was completed on March 1, 2019, while the payment for the new investment
units issued through third-party allotment was completed on March 26, 2019.
As a result, unitholders’ capital amounts to ¥198,492 million, and the total number of investment units
issued is 2,075,000 units.
(a) Issuance of new investment units (public offering)Number of new investment units issued:

138,000 units(Japan: 86,900 units; Overseas: 51,100 units)¥245,784 per unit
¥33,918,192,000¥238,260 per unit
¥32,879,880,000
March 1, 2019

Issue price:
Total issue price:Amount paid in (issue value):
Total amount paid in (issue value):
Payment date:(b) Issuance of new investment units through third-party allotment
Number of new investment units issued:
Amount paid in (issue value):

10,000 units¥238,260 per unit
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Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Total amount paid in (issue value):
Payment date:
Allottee:¥2,382,600,000
March 26, 2019
Nomura Securities Co., Ltd.

B. Acquisition of assets
DHR acquired the following properties.
Asset name

D Project Kitahachioji I

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥4,300,000 thousand

Seller (Note 2)

DH Development II Godo Kaisha

Date of acquisition

April 5, 2019

Asset name

D Project Kitahachioji II

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥5,700,000 thousand

Seller (Note 2)

DH Development II Godo Kaisha

Date of acquisition

April 5, 2019

Asset name

D Project Kitahachioji III

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥7,300,000 thousand

Seller (Note 2)

DH Development II Godo Kaisha

Date of acquisition

April 5, 2019

Asset name

D Project Itabashi Shingashi

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥12,300,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019

Asset name

D Project Sagamihara

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥3,900,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019

Asset name

D Project Kuki VIII

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥6,100,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019

Asset name

D Project Yokkaichi

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥1,490,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019-7-

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Asset name

D Project Ibaraki Ishioka

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥4,050,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019

Asset nameiias Tsukuba (30% quasi co-ownership)

Asset type

Trust beneficiary interest in real estate

Asset class

Retail properties

Acquisition price (Note 1)¥10,320,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 5, 2019

Asset name

Aoyama Tailor Bunkyo Sengoku Ekimae Store

Asset type

Trust beneficiary interest in real estate

Asset class

Retail properties

Acquisition price (Note 1)¥750,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 5, 2019

Asset name

FOLEO Shobu

Asset type

Trust beneficiary interest in real estate

Asset class

Retail properties

Acquisition price (Note 1)¥5,000,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 5, 2019

Asset nameDaiwa Roynet Hotel Nagoya Shinkansenguchi

Asset type

Trust beneficiary interest in real estate

Asset class

Hotel properties

Acquisition price (Note 1)¥4,500,000 thousand

Seller (Note 2)

Nihon Jyutaku Ryutu Co., Ltd.

Date of acquisition

April 5, 2019

Asset name

Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi Store

Asset type

Trust beneficiary interest in real estate

Asset class

Other assets

Acquisition price (Note 1)¥1,380,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

March 12, 2019

(Note 1) This figure does not include expenses pertaining to acquisitions, settlement money such as taxes and publicdues, consumption taxes, etc.
(Note 2) The following companies are defined as interested parties, etc. in the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951, as amended; hereinafter referred to as the “Investment TrustsAct”): Daiwa House, which is the seller of D Project Itabashi Shingashi, D Project Sagamihara, D Project
Kuki VIII, D Project Yokkaichi, D Project Ibaraki Ishioka, iias Tsukuba, Aoyama Tailor Bunkyo Sengoku
Ekimae Store, FOLEO Shobu and Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi Store andNihon Jyutaku Ryutu Co., Ltd., which is the seller of Daiwa Roynet Hotel Nagoya Shinkansenguchi.
DH Development II Godo Kaisha, which is the seller of D Project Kitahachioji I, D Project Kitahachioji II
and D Project Kitahachioji III, is a special purpose company (Tokutei Mokuteki Kaisha) on which Daiwa
House, a parent company of the Asset Manager, may have a significant influence and is an interested party as
defined in the Asset Manager’s regulations on transactions with interested parties; however, is not aninterested party, etc., as defined in the Investment Trusts Act.
The Asset Manager has gone through the necessary discussion and resolution procedures in accordance with
its regulations on transactions with interested parties.

-8-

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

C. Debt financing(a) DHR conducted debt financing for the fund to refinance long-term loans of ¥4,000 million due on
March 27, 2019 and ¥7,600 million due on March 29, 2019, as follows.
LenderSumitomo Mitsui Trust Bank
Limited;Sumitomo Mitsui Banking
Corporation;
MUFG Bank, Ltd.;
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
Limited;Aozora Bank, Ltd.;The Norinchukin Bank;
Sumitomo Mitsui Banking
Corporation;
The Chiba Bank, Ltd.;
Mizuho Bank, Ltd.;The Bank of Fukuoka, Ltd.;The Shizuoka Bank, Ltd.

Borrowingamount(Millions ofyen)Interest rate

Borrowing Repayment Method of
Collateral
date
date
repayment

Base interest rate
(Japanese Bankers
March 27,
4,000
Association
2019
1-month yen
TIBOR) +0.18%

0.42882%
7,600(Fixed interest
rate)

Bulletrepayment

Unsecuredandnonguaranteed

March 29, September
Bullet201930, 2025 repayment

Unsecuredandnonguaranteed

August31, 2022(b) DHR conducted debt financing for acquiring the properties mentioned in “B. Acquisition ofassets” above, on April 5, 2019 and April 10, 2019, as follows.
Borrowingamount(Millions ofyen)Interest rate

Borrowing Repayment Method of
Collateral
date
date
repayment

1,000

0.45000%(Fixed interest
rate)

April 5,2019

April 30,
2026

Bulletrepayment

Unsecuredandnonguaranteed

500

0.49677%(Fixed interest
rate)

April 5,2019

April 30,
2027

Bulletrepayment

Unsecuredandnonguaranteed

Development Bank of Japan Inc.

1,500

0.58880%(Fixed interest
rate)

April 5,2019

April 28,
2028

Bulletrepayment

Unsecuredandnonguaranteed

Sumitomo Mitsui Banking
Corporation;
Sumitomo Mitsui Trust Bank,
Limited;
MUFG Bank, Ltd.;
Mizuho Bank, Ltd.

Base interest rate
(Japanese Bankers
6,000
Association
1-month yen
TIBOR) +0.23%

April 10,2019

October
31, 2022

Bulletrepayment

Unsecuredandnonguaranteed

April 10,2019

October
31, 2024

Bulletrepayment

Unsecuredandnonguaranteed

LenderMitsui Sumitomo Insurance
Company, Ltd.

Nippon Life Insurance
Company

Sumitomo Mitsui Banking
Corporation;
The Norinchukin Bank;
Sumitomo Mitsui Trust Bank,
Limited;Shinsei Bank, Limited;
Shinkin Central Bank;
The Bank of Fukuoka, Ltd;The Chiba Bank, Ltd.;The 77 Bank, Ltd.;The Nishi-Nippon City Bank,Ltd.;
The Iyo Bank, Ltd.;The Chugoku Bank, Ltd.

8,100

0.39138%(Fixed interest
rate)

-9-

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

LenderBorrowingamount(Millions ofyen)Interest rate

Borrowing Repayment Method of
Collateral
date
date
repayment

Sumitomo Mitsui Banking
Corporation;
Mizuho Bank, Ltd.;
Unsecured
Sumitomo Mitsui Trust Bank,
0.74800%
April 10, April 27,
BulletandLimited;10,400(Note)
20192029
repayment
nonResona Bank, Limited;
guaranteed
Mizuho Trust & Banking Co.,Ltd.;
MUFG Bank, Ltd.
(Note) DHR entered into an interest rate swap transaction to hedge its exposure to interest rate fluctuation risk. The
stated interest rate includes the effect of the interest rate swap.

(3) Investment Risk
As there have been no significant changes in the “Investment Risk” as described in the Securities
Registration Statement submitted on February 8, 2019 (prepared in Japanese only), the disclosure has
been omitted.

- 10 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Assumptions for Forecasts of Operating Results for the Fiscal Period Ending August 31, 2019 andFebruary 29, 2020
Item

Assumptions

・ Fiscal period ending August 31, 2019:(184 days from March 1, 2019 to August 31, 2019)
Accounting period・ Fiscal period ending February 29, 2020:(182 days from September 1, 2019 to February 29, 2020)
・ DHR has assumed that there will be no changes (meaning acquisition of new
properties or sale of acquired properties) until February 29, 2020 in 229 properties(hereinafter referred to as the “composition of the portfolio”), which are real estate
Portfolio
and trust beneficiary interests in real estate held by DHR as of the date of thisfinancial results report.
・ Changes in the composition of the portfolio may, however, occur.
・ Operating revenues include revenues from rent, common area charges, parking lot
Operatingusage fees, incidental revenues, utilities charge reimbursements and key money, etc.
revenues
Each of these items is calculated based on past records and future estimate.
・ DHR has assumed no delinquencies or non-payment of rents by tenants.
・ Operating expenses mainly comprise rental expenses. Those expenses, excluding
depreciation of the current properties, are calculated based on past performance,
making certain adjustments as appropriate considering factors causing changes in
expenses.
・ DHR has assumed that DHR will incur depreciation expenses of ¥4,767 million for
the fiscal period ending August 31, 2019 and ¥4,832 million for the fiscal period
ending February 29, 2020. These figures are calculated using the straight-line
method with incidental expenses added to purchase prices of non-current assets.
・ DHR has estimated property tax, city planning tax and depreciable asset tax at¥1,784 million for the fiscal period ending August 31, 2019 and ¥1,784 million for
the fiscal period ending February 29, 2020. Property tax and city planning tax thatwill be paid by DHR and the former owner (former beneficiary) on a pro rata basis
Operatingaccording to the number of days of ownership due to the acquisition of real estate,
expensesetc. are included in the acquisition cost of the real estate, etc., and are not booked(excluding
under expenses. Therefore, DHR expects to record the property tax and city planning
amortization oftax related to the 13 properties acquired on March 12, 2019, April 5, 2019, and April
goodwill)
10, 2019 as expenses from the fiscal period ending August 31, 2020, and assumes
that figure will be ¥206 million.
・ DHR has assumed that DHR will incur certain repairs and maintenance expenses ineach fiscal period based on the medium- to long-term repair and maintenance plan
prepared by the Asset Manager. However, actual repairs and maintenance expenses
in each fiscal period may differ substantially from DHR’s forecasts, as (i) DHR may
incur expenses for urgent repairs to properties due to damage caused byunforeseeable factors, (ii) generally, there is a substantial difference in expenses
incurred between each fiscal period, and (iii) expenses are not incurred based on aregular schedule.
・ Selling, general and administrative expenses are estimated based on the actual values
or rates, etc., of each item individually.
Amortization of ・ Amortization of goodwill is estimated at ¥1,982 million for the fiscal period ending
goodwill
August 31, 2019 and ¥1,982 million for the fiscal period ending February 29, 2020.
・ DHR has assumed interest expenses and other borrowing-related expenses, etc. of¥1,492 million for the fiscal period ending August 31, 2019 and ¥1,507 million for
Non-operating
the fiscal period ending February 29, 2020.
expenses・ DHR has assumed one-time costs of ¥200 million for the fiscal period ending August
31, 2019 as expenses related to issuance of new investment units and related matters.

- 11 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Item

Interest-bearing
debt

Investment units

Distributions
per unit

Distributions
in excess ofearnings per unit
OthersAssumptions
・ As of the date of this financial results report, the balance of interest-bearing debt was¥348,768 million.
・ DHR has assumed the long-term loans of ¥28,910 million that become due by theend of the fiscal period ending February 29, 2020 will be fully refinanced.
・ DHR has assumed the balance of outstanding interest-bearing debt will beunchanged until February 29, 2020.
・ The total number of investment units is based on DHR’s assumption of 2,075,000
units, which is the number of investment units issued as of the date of this financial
results report. DHR has assumed there will be no change in the number of units
outstanding resulting from the issuance of additional investment units, etc. until
February 29, 2020.
・ For distributions (distributions per unit), DHR has assumed that a distribution ismade with limits of the amount of earnings or less in accordance with the distribution
policy prescribed in DHR’s Articles of Incorporation. In addition, DHR has assumed
that for the amount equivalent to amortization of goodwill described in“Amortization of goodwill” above, reserve for temporary difference adjustments,
apart from profit, is partially reversed and used as funds for payment, and that
reserve for temporary difference adjustments of ¥1,982 million (¥955 per investmentunit) and ¥1,982 million (¥955 per investment unit) is reversed and used as funds forpayment in the fiscal period ending August 31, 2019 and the fiscal period ending
February 29, 2020, respectively.
・ Changes in DHR’s portfolio, fluctuations in rent income due to changes in tenants
and other factors, unforeseen repairs and maintenance expenses and other factors
may lead to changes in the amount of distributions per unit.
・ DHR has no plans to pay distributions in excess of earnings (distributions in excessof earnings per unit) as of the date of this financial results report.
・ DHR has assumed no enforcement of such revisions to laws and regulations, tax
systems, accounting standards, securities listing regulations and rules of The
Investment Trusts Association, Japan, etc. that may affect the above forecasts.
・ DHR’s forecasts assume no unforeseen significant changes in general economic
trends or conditions in the real estate market.

- 12 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

3. Financial Statements(1) Balance Sheets(Unit: Thousands of yen)Previous fiscal period(As of August 31, 2018)

Current fiscal period(As of February 28, 2019)

26,954,525
10,505,983
176,748
618,449
3,551,655
227(2,137)41,805,452

31,274,515
9,976,462
275,683
609,658–
25(1,225)
42,135,120

26,566,010(4,374,887)
22,191,122
249,493(43,759)
205,733
454,987(129,260)
325,726
669,144(354,201)
314,943
21,637,530
317,552,921(27,516,054)
290,036,867
7,054,268(547,644)
6,506,624
2,361,439(932,610)
1,428,829
867,589(348,059)
519,530
302,954,257
73,774646,194,941

26,298,220(4,602,743)
21,695,476
245,467(45,395)
200,072
472,105(138,790)
333,314676,056(377,657)
298,398
20,879,124
323,844,247(31,322,569)
292,521,677
7,302,031(688,505)
6,613,525
2,417,497(1,017,666)
1,399,830
967,046(401,423)
565,623
310,001,420
15,228654,523,691

71,360,157
6,035,339
569
2,337
77,398,403

69,377,930
5,987,926
276
2,059
75,368,193

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Goodwill
Leasehold rights in trust
SoftwareTrademark rights
Total intangible assets- 13 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen)Previous fiscal period(As of August 31, 2018)
Investments and other assets
Investment securities
Long-term prepaid expenses
Guarantee deposits
Lease and guarantee deposits in trust
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Unearned revenue
Deposits received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans
Long-term unearned revenue
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Derivatives liabilities
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
SurplusCapital surplus
Voluntary reserve
Reserve for temporary difference
adjustments
Reserve for distribution
Total voluntary reserve
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity*3*4- 14 -

9,342
2,284,919
261
3,489,293
5,783,816
729,377,161

Current fiscal period(As of February 28, 2019)
*3

9,360
2,110,873
261
3,489,293
5,609,787
735,501,672

99,182
99,182771,281,796

90,82390,823
777,727,616

1,336,266
11,600,000
306,108
1,390,790
605–
2,675,485
221,735
327,234
90,42917,948,655

1,297,062
40,510,000
66,683
1,418,415
605
398,538
2,757,226
222,342345,273
91,92947,108,077

19,000,000
283,668,000
928,843
280,916
17,422,350
620,349
816,561
322,737,022
340,685,677

19,000,000
261,758,000
818,279
276,389
17,854,492
626,251
1,063,056
301,396,469
348,504,547

163,230,367

163,230,367

247,667,563

247,667,563

10,785,218*48,804,571

1,964,241
12,749,459

1,986,536
10,791,107

7,765,290

8,597,087

268,182,313
431,412,680

267,055,758
430,286,126

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen)Previous fiscal period(As of August 31, 2018)

Current fiscal period(As of February 28, 2019)(816,561)(816,561)
430,596,119
771,281,796(1,063,056)(1,063,056)
429,223,069
777,727,616

Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets*2- 15 -*2

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(2) Statements of Income(Unit: Thousands of yen)Previous fiscal period(From March 1, 2018
to August 31, 2018)
Operating revenues
Rental revenues
Other rental revenues
Gain on sale of real estate properties
Total operating revenues
Operating expenses
Rental expenses
Loss on sale of real estate properties
Asset management fees
Asset custody fees
Administrative service fees
Directors’ remuneration
Amortization of goodwill
Provision of allowance for doubtful accounts
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Gain on forfeiture of unclaimed distributions
Settlement received
Reversal of allowance for doubtful accounts
Settlement money for property tax, etc.
Refunded consumption taxes
Interest on tax refund
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Investment unit issuance expenses
Borrowing related expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on litigation
Total extraordinary losses
Profit before income taxes
Income taxes - current
Total income taxes
ProfitUnappropriated retained earnings (undisposed loss)

*1
*1

*1
*2

- 16 -

Current fiscal period(From September 1, 2018
to February 28, 2019)

21,160,720
1,050,855–
22,211,576*18,944,104
99,3801,452,834
32,882
83,8596,600
1,982,226
561
339,658
12,942,107
9,269,468

*1

*1
*2

21,984,957
1,028,600
113,532
23,127,090
9,184,698–
1,519,464
33,727
89,1966,600
1,982,226–
351,000
13,166,914
9,960,176

178
4,168
10,070––22,295–2,573
39,287

166
4,436
–
266
1,564
6,720
1,518
1
14,674

1,019,240
42,392

1,036,887
51,092

7,709

8,358

191,068
275,881
2,056
1,538,348
7,770,407–
278,819
2,000
1,377,157
8,597,692

4,512
4,512
7,765,895
605
605
7,765,290
7,765,290––
8,597,692
605
605
8,597,087
8,597,087

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(3) Statements of Unitholders’ Equity
Previous fiscal period (From March 1, 2018 to August 31, 2018)(Unit: Thousands of yen)
Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginningof period
Changes of items
during period
Issuance of new
investment units
Reversal ofreserve fortemporarydifference
adjustments
Accumulation ofreserve for
distribution
Distributions
from retained
earnings

108,136,162

Voluntary reserve
Capital surplus

247,667,563

Reserve fortemporarydifference
adjustments

Reserve for
distribution

12,767,357

1,617,617

Total
voluntary
reserve
14,384,974(1,982,138)

346,623

377,331,045(1,982,138)

1,982,138––

346,623(346,623)––(8,777,860)(8,777,860)(8,777,860)

7,765,290

7,765,290

7,765,290

55,094,205–(1,982,138)

346,623(1,635,515)

622,945(1,012,569)

54,081,635* 163,230,367

247,667,563

10,785,218

1,964,241

12,749,459

7,765,290

268,182,313

431,412,680

Total
Deferred gains
valuation andor losses ontranslation
hedgesadjustments(1,030,085)(1,030,085)

Total net
assets376,300,960

55,094,205––(8,777,860)

ProfitNet changes of
items other thanunitholders’equityTotal changes of
items during period
Balance at end of
period269,194,883

Total
unitholders’equity55,094,205(Unit: Thousands of yen)
Valuation and translation
adjustments

Balance at beginningof period
Changes of items
during period
Issuance of new
investment units
Reversal ofreserve fortemporarydifference
adjustments
Accumulation ofreserve for
distribution
Distributions
from retained
earnings

7,142,344

55,094,205

ProfitNet changes of
items other thanunitholders’equityTotal changes of
items during period
Balance at end of
periodUnappropriatedretainedearnings
Total surplus(undisposed
loss)

7,765,290
213,523

213,523

213,523

213,523

213,523

54,295,158(816,561)(816,561)

430,596,119- 17 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Current fiscal period (From September 1, 2018 to February 28, 2019)(Unit: Thousands of yen)
Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginningof period
Changes of items
during period
Reversal ofreserve fortemporarydifference
adjustments
Accumulation ofreserve for
distribution
Distributions
from retained
earnings

163,230,367

Voluntary reserve
Capital surplus

247,667,563

Reserve fortemporarydifference
adjustments

Reserve for
distribution

10,785,218

1,964,241(1,980,646)

22,295

Total
voluntary
reserve

7,765,290

268,182,313

431,412,680(1,980,646)

1,980,646––

22,295(22,295)––(9,723,642)(9,723,642)(9,723,642)

8,597,087

8,597,087

8,597,087––(1,980,646)

22,295(1,958,351)

831,797(1,126,554)(1,126,554)* 163,230,367

247,667,563

8,804,571

1,986,536

10,791,107

8,597,087

267,055,758

430,286,126(Unit: Thousands of yen)
Valuation and translation
adjustments
Total
Deferred gains
valuation andor losses ontranslation
hedgesadjustments
Balance at beginningof period
Changes of items
during period
Reversal ofreserve fortemporarydifference
adjustments
Accumulation ofreserve for
distribution
Distributions
from retained
earnings(816,561)(816,561)

Total net
assets430,596,119––(9,723,642)

ProfitNet changes of
items other thanunitholders’equityTotal changes of
items during period
Balance at end of
periodTotalunitholders’equity12,749,459

ProfitNet changes of
items other thanunitholders’equityTotal changes of
items during period
Balance at end of
periodUnappropriatedretainedearnings
Total surplus(undisposed
loss)

8,597,087(246,495)(246,495)(246,495)(246,495)(246,495)(1,373,049)(1,063,056)(1,063,056)

429,223,069- 18 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(4) Statements of Cash Distributions
Item
I Unappropriated retained earnings
II Reversal of voluntary reserve
Reversal of reserve for temporary
difference adjustments
III Distributions[Distributions per investment unit]
IV Voluntary reserve
Accumulation of reserve for
distribution
V Retained earnings carried forward
Calculation method for distributions

Fiscal period ended August 31, 2018
Amount (Yen)
7,765,290,290

Fiscal period ended February 28, 2019
Amount (Yen)
8,597,087,441* 1,980,646,890* 1,980,994,520

9,723,642,000[5,046]

10,457,829,000[5,427]22,295,180

120,252,961––

Based on the cash distribution policy
Based on the cash distribution policy
set forth in Article 37, paragraph 1,
set forth in Article 37, paragraph 1,
item 1 of the Articles of Incorporation item 1 of the Articles of Incorporationof DHR, distributions shall be limited of DHR, distributions shall be limited
to the amount of earnings in excess of to the amount of earnings in excess ofan amount equivalent to ninetyan amount equivalent to ninetyhundredths (90/100) of distributable
hundredths (90/100) of distributableearnings, as stipulated in Article 67-15 earnings, as stipulated in Article 67-15
of the Act on Special Measuresof the Act on Special Measures
Concerning Taxation.
Concerning Taxation.
Furthermore, in accordance with the
Furthermore, in accordance with the
cash distribution policy set forth in the cash distribution policy set forth in the
Articles of Incorporation, DHR will
Articles of Incorporation, DHR will
make a distribution by reversing the
make a distribution by reversing theamount equivalent to amortization ofamount equivalent to amortization of
goodwill from reserve for temporary
goodwill from reserve for temporary
difference adjustments and by adding
difference adjustments and by adding
this to unappropriated retained
this to unappropriated retained
earnings.
earnings.
Based on the above policy, for the
Based on the above policy, for thecurrent fiscal period, DHR will reverse current fiscal period, DHR will reverse
the amount equivalent to amortization the amount equivalent to amortizationof goodwill of ¥1,980,646,890 fromof goodwill of ¥1,980,994,520 fromreserve for temporary difference
reserve for temporary difference
adjustments, add the reversal toadjustments, add the reversal tounappropriated retained earnings ofunappropriated retained earnings of¥7,765,290,290 and subtract an¥8,597,087,441 and subtract anaccumulation of reserve for distribution accumulation of reserve for distributionof ¥22,295,180 to distributeof ¥120,252,961 to distribute¥9,723,642,000 as cash distributions¥10,457,829,000 as cash distributions(¥5,046 per unit); provided, however,(¥5,427 per unit); provided, however,that DHR will not pay the portion ofthat DHR will not pay the portion ofamount that exceeds the earnings
amount that exceeds the earnings
defined in Article 37, paragraph 2 ofdefined in Article 37, paragraph 2 of
the Articles of Incorporation of DHR. the Articles of Incorporation of DHR.

- 19 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(5) Statements of Cash Flows(Unit: Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Amortization of investment corporation bondissuance costs
Amortization of trademark rights
Amortization of software
Loss on retirement of non-current assets
Investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in deposits received
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for loss on litigation
Decrease in property, plant and equipment due tosales
Decrease in property, plant and equipment in trust
due to sales
Decrease (increase) in lease and guarantee deposits
in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security
deposits
Proceeds from tenant leasehold and security deposits
in trust
Repayments of tenant leasehold and security
deposits in trust
Net cash provided by (used in) investing activities- 20 -

Previous fiscal period(From March 1, 2018
to August 31, 2018)

Current fiscal period(From September 1, 2018
to February 28, 2019)

7,765,895
4,296,514
1,982,226

8,597,692
4,454,820
1,982,226

7,709

8,358

278
292
16,012
191,068(178)
1,061,632(28,319)(127)(3,785,886)(46,785)
188,80986,602
170,806(47,265)424,696(75,229)278
292
17,768–(166)
1,087,979(98,934)127
3,950,194
8,790(27,917)(201,982)
29,267
18,03881,741
174,045(23,989)(911)(89,514)––

1,044,407

2,814,320–(74,572)–

214,356
15,049,353
178(1,168,950)(608)
13,879,972

104,553
21,230,670
166(1,199,579)(603)
20,030,654(54,600)(97,886,478)(661,753)
43,535(60,640)(13,790,149)–
26,682(19,069)(82,788)

3,801,302

844,486(766,840)(457,861)(95,543,905)(13,520,271)

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen)Previous fiscal period(From March 1, 2018
to August 31, 2018)
Cash flows from financing activities
Proceeds from long-term loans
Repayments of long-term loans
Proceeds from issuance of investment corporation
bonds
Proceeds from issuance of investment units
Distributions 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*- 21 -

Current fiscal period(From September 1, 2018
to February 28, 2019)

32,000,000(3,000,000)

7,000,000–

2,971,170–

54,903,136(8,771,497)
78,102,808(3,561,123)
41,021,631
37,460,508–(9,719,912)(2,719,912)
3,790,470
37,460,508
41,250,978*

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(6) Notes on Assumption of Going Concern
Not applicable.
(7) Notes on Important Accounting Policies
1. Valuation basis andaccounting methods for
assetsSecurities
Held-to-maturity bonds
The amortized cost method (straight-line method) is used.

2. Method of depreciationof non-current assets(1)

Property, plant and equipment (including assets in trust)The straight-line method is used.
The useful lives of major property, plant and equipment are listed below.
Buildings
2 to 69 years
Structures
3 to 63 years
Machinery and equipment
7 to 28 years
Tools, furniture and fixtures
2 to 28 years(2)

Intangible assets (including assets in trust)The straight-line method is used.
The useful lives of major intangible assets are listed below.
Goodwill
20 years
Software5 years
Leasehold rights (fixed-term land lease rights in general) are amortized on a straightline basis over the life of each contract.

3. Accounting method fordeferred assets

Investment corporation bond issuance costs
Costs are amortized by the straight-line method over the redemption period.

4. Recognition ofallowance

Allowance for doubtful accounts
The allowance for doubtful accounts consists of the individually estimateduncollectible amounts with respect to certain identified doubtful receivables and theamounts calculated using the rate of actual collection losses with respect to the otherreceivables.

5. Recognition of revenues
and expenses

Property-related taxes
For property tax, city planning tax, depreciable asset tax and other tax for real
properties held, etc., the amount of tax levied corresponding to the fiscal period isrecorded as real estate rental expenses.
The settlement money for property-related taxes for the year including the acquisition
date that is paid to the transferor for acquisition of real estate, etc. is not recorded asreal estate rental expenses but included in the acquisition costs for the related
properties.

6. Method of hedge
accounting(1)

Method of hedge accounting
The deferral hedge accounting is used; provided, however, that special treatment isapplied for interest rate swaps when the swaps satisfy the requirements for special
treatment.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swaps
Hedged items: Interest on borrowings(3) Hedging policy
DHR conducts derivative transactions for the purpose of hedging risks provided for in
the Articles of Incorporation of DHR pursuant to the basic policy of risk management.
(4) Method of assessing hedge effectiveness
Assessment of hedging effectiveness is omitted when the material conditions for thenotional principal of hedging instruments and those for hedged items are the same, andchanges in cash flows of hedged items can be expected to be offset in full at thecommencement of a hedge and continuously thereafter.
In addition, the assessment of hedging effectiveness is omitted for interest rate swaps
to which special treatment is applied.

- 22 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

7. Scope of cash in thestatements of cash flows(cash and cash
equivalents)

Cash in the statements of cash flows (cash and cash equivalents) include cash on hand,cash in trust, demand deposits, deposits in trust, and highly liquid short-term investmentsthat are readily convertible, carry little risk in price fluctuations, and mature within threemonths of the date of acquisition.

8. Other significant matters (1) Accounting method for trust beneficiary interests in real estate
forming the basis ofWith regard to trust beneficiary interests in real estate, all assets and liabilities as well
preparing the financial
as all revenues and expense items associated with all trust assets are accounted forstatements
under the respective account items of the balance sheets and statements of income.
Of the trust assets accounted for under the respective account items, the following
items with significance are separately indicated on the balance sheets.
i)
Cash and deposits in trustii) Buildings in trust, structures in trust, machinery and equipment in trust, tools,
furniture and fixtures in trust, land in trust and construction in progress in trustiii) Leasehold rights in trustiv) Lease and guarantee deposits in trustv) Tenant leasehold and security deposits in trust(2)

Accounting method for consumption tax and local consumption tax
Consumption tax and local consumption tax are accounted for by the tax-exclusion
method.
Non-deductible consumption taxes for acquisition of assets are added on to theacquisition cost of each asset.

- 23 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(8) Notes to Financial Statements
Notes to Balance Sheets
1.

Commitment line contracts
DHR has commitment line contracts with four banks with which it has transaction.

Total amount specified in commitment line contracts
Loans executed and outstanding
Unused credit lines*2.

(Unit: Thousands of yen)
Current fiscal period(As of February 28, 2019)50,000Government bonds have been deposited with the Tokyo Legal Affairs Bureau as business security
deposits in accordance with the Building Lots and Building Transaction Business Act.

Investment securities*4.

(Unit: Thousands of yen)
Current fiscal period(As of February 28, 2019)
25,000,000–
25,000,000

Minimum net assets stipulated in Article 67, paragraph 4 of the Act on Investment Trusts andInvestment Corporations
Previous fiscal period(As of August 31, 2018)
50,000*3.

Previous fiscal period(As of August 31, 2018)
20,000,000–
20,000,000

Previous fiscal period(As of August 31, 2018)
9,342(Unit: Thousands of yen)
Current fiscal period(As of February 28, 2019)
9,360

Matters regarding accumulation and reversal of reserve for temporary difference adjustments(Unit: Thousands of yen)
Current fiscal period(As of February 28, 2019)

Previous fiscal period(As of August 31, 2018)
Reserves recognized by transfer
Balance at beginning of period
Amount of accumulation during period
Amount of reversal during period
Balance at end of period

14,748,347
12,767,357–
1,982,138
10,785,218

Reserves recognized by transfer
Balance at beginning of period
Amount of accumulation during period
Amount of reversal during period
Balance at end of period

14,748,347
10,785,218–
1,980,646
8,804,571

Reasons for accumulation and reversal
Reasons for accumulation and reversal
Allocation for distributions
Allocation for distributions(Note) The balance of the portion of the amount(Note) The balance of the portion of the amountcorresponding to gain on negative goodwill recorded
corresponding to gain on negative goodwill recorded
in prior years. Reversal of this reserve at not less thanin prior years. Reversal of this reserve at not less than
the amount equivalent to 1%, which equals the fiftythe amount equivalent to 1%, which equals the fiftyyear-uniform amount, shall be performed beginning
year-uniform amount, shall be performed beginningfrom the fiscal period ended August 31, 2017.
from the fiscal period ended August 31, 2017.
However, DHR intends to reverse the amount
However, DHR intends to reverse the amountequivalent to amortization of goodwill from reserve
equivalent to amortization of goodwill from reserve
for temporary difference adjustments for distribution.
for temporary difference adjustments for distribution.

- 24 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Notes to Statements of Income*1.

A.

Breakdown of income (loss) from real estate rental business
Previous fiscal period(From March 1, 2018
to August 31, 2018)(Unit: Thousands of yen)
Current fiscal period(From September 1, 2018
to February 28, 2019)

Real estate rental revenues
Rental revenues
Rent

20,695,802

21,511,590

Common area charges

464,918

Other rental revenues
Facility charges
Incidental revenues
Other

365,832
295,306
389,716

Total real estate rental revenues
B.

C.

Real estate rental expenses
Rental expenses
Management fees
1,303,367
Utilities
342,082
Taxes and public dues
1,440,930
Repairs and maintenance expenses
568,311
Restoration costs
311,974
Insurance
26,911
Custodian fees
68,447
Depreciation
4,296,514
Other operating expenses
585,563
Total real estate rental expenses
Income (loss) from real estate rental business (A – B)

*2.

Breakdown of gain (loss) on sale of real estate properties

21,160,720

1,050,855
22,211,576

8,944,104
8,944,104
13,267,472

Previous fiscal period (From March 1, 2018 to August 31, 2018)(Unit: Thousands of yen)
Crest Kusatsu
Proceeds from sale of real estate properties
Cost of real estate properties sold
Other sales expenses
Gain (loss) on sale of real estate properties

2,800,000
2,814,320
85,060(99,380)

Current fiscal period (From September 1, 2018 to February 28, 2019)(Unit: Thousands of yen)
Morino Tonari
Proceeds from sale of real estate properties
Cost of real estate properties sold
Other sales expenses
Gain (loss) on sale of real estate properties

1,200,000
1,044,407
42,060113,532- 25 -

473,366

21,984,957

382,753
283,633
362,213

1,028,600
23,013,558

1,283,640
349,856
1,432,107
746,985
230,219
27,55858,202
4,454,820
601,3079,184,698
9,184,698
13,828,859

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Notes to Statements of Unitholders’ Equity*

Total number of authorized investment units and total number of investment units issued
Previous fiscal period(From March 1, 2018
to August 31, 2018)

Total number of authorized investment units
Total number of investment units issued

8,000,000 units
1,927,000 units

Current fiscal period(From September 1, 2018
to February 28, 2019)
8,000,000 units
1,927,000 units

Notes to Statements of Cash Distributions*

Reserve for temporary difference adjustments

Previous fiscal period(From March 1, 2018
to August 31, 2018)
DHR has applied the transitional measures of Supplementary
Provision, paragraph 3 of the “Regulations on Accounting ofInvestment Corporations” (Cabinet Office Order No. 27 of2015) and accumulated ¥14,748,347,148, which is thebalance of the portion of the amount corresponding to gain
on negative goodwill recorded in prior years, in reserve fortemporary difference adjustments in the statements of cash
distributions for the fiscal period ended February 28, 2017.
Reversal of this reserve at not less than the amountequivalent to 1%, which equals the fifty-year-uniform
amount (¥147,483,472 or more) shall be performed
beginning from the fiscal period ended August 31, 2017.
However, DHR intends to reverse the amount equivalent toamortization of goodwill from reserve for temporary
difference adjustments for distribution.
DHR conducted reversal of ¥1,980,646,890 in the fiscal
period ended August 31, 2018.

Current fiscal period(From September 1, 2018
to February 28, 2019)
DHR has applied the transitional measures of Supplementary
Provision, paragraph 3 of the “Regulations on Accounting ofInvestment Corporations” (Cabinet Office Order No. 27 of2015) and accumulated ¥14,748,347,148, which is thebalance of the portion of the amount corresponding to gain
on negative goodwill recorded in prior years, in reserve fortemporary difference adjustments in the statements of cash
distributions for the fiscal period ended February 28, 2017.
Reversal of this reserve at not less than the amountequivalent to 1%, which equals the fifty-year-uniform
amount (¥147,483,472 or more) shall be performed
beginning from the fiscal period ended August 31, 2017.
However, DHR intends to reverse the amount equivalent toamortization of goodwill from reserve for temporary
difference adjustments for distribution.
DHR conducted reversal of ¥1,980,994,520 in the fiscal
period ended February 28, 2019.

Notes to Statements of Cash Flows*

Reconciliation between cash and cash equivalents at end of period and relevant amount on the balance
sheetsPrevious fiscal period(From March 1, 2018
to August 31, 2018)(Unit: Thousands of yen)
Current fiscal period(From September 1, 2018
to February 28, 2019)

Cash and deposits
Cash and deposits in trust

26,954,525
10,505,983

31,274,515
9,976,462

Cash and cash equivalents

37,460,508

41,250,978

Lease Transactions
Operating lease transactions (Lessor)
Future lease payments
Previous fiscal period(As of August 31, 2018)(Unit: Thousands of yen)
Current fiscal period(As of February 28, 2019)

Due within one year
Due after one year

21,249,137
142,337,743

21,668,874
142,417,289

Total

163,586,881

164,086,163- 26 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Financial Instruments
1.

Matters regarding financial instruments(1) Policy for financial instruments
As a policy, when acquiring real estate and other properties, as well as when repaying its obligations,
DHR raises necessary funds through loans from banks, issuance of investment corporation bonds andissuance of investment units, etc. As for financing efforts, DHR carefully pays attention to the long-term,
cost effectiveness and soundness of the financial instruments, while considering the diversification offinancial methods and repayment deadlines.
DHR may use derivative financial instruments for such purposes as hedging interest rate fluctuation risk,
but does not engage in speculative transactions using these instruments. DHR currently uses interest-rate
swaps to hedge interest rate fluctuation risk.
Surplus funds can be invested in securities or monetary claims; however, as a current policy of DHR, they
are deposited in interest-bearing accounts.
(2) Content and risks of financial instruments and risk management system therefor
The Asset Manager stipulates basic provisions of risk management in its risk management rules.
Investment corporation bonds and loans are used to finance such efforts as acquisition of real estate andrepayment of loans. These financial instruments are exposed to liquidity risk, though DHR controls suchrisks by maintaining the ratio of interest-bearing debt to total assets under a certain percentage,
diversifying repayment deadlines, and retaining a certain amount of highly liquid cash and deposits.
For floating rate loans exposed to the risk of interest rate fluctuations, DHR, in order to reduce the impact
caused by rising interest rates, closely watches the movement of interest rates, and intends to increase theratio of fixed rate loans, etc.
Deposits are exposed to credit risks, including collapse of the financial institutions where deposits are
made, and, thus, are managed through the use of liquid deposits.
(3) Supplementary remarks on fair value, etc. of financial instruments
The fair value of financial instruments is based on market prices or reasonably calculated value if there isno market price available. As certain assumptions are used in calculating these values, if different
assumptions are used, these values could vary.

- 27 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 20192.

Matters regarding fair value, etc. of financial instruments

Balance sheet carrying amounts, fair values, and the difference between the two values are as shown below.
Previous fiscal period (As of August 31, 2018)(Unit: Thousands of yen)

(1) Cash and deposits(2) Cash and deposits in trust(3) Investment securities
Held-to-maturity bonds
Total assets(4) Current portion of long-term loans(5) Investment corporation bonds(6) Long-term loans(7) Tenant leasehold and security deposits
in trust
Total liabilities(8) Derivative transactions
Total derivative transactions

Balance sheet carrying
amount26,954,525
10,505,983

Fair value

Difference

26,954,525
10,505,983

–
–

9,342
37,469,850
11,600,000
19,000,000
283,668,000

8,921
37,469,429
11,613,463
19,028,099
286,291,112

(421)
(421)
13,46328,0992,623,112

624,821609,723(15,098)

314,892,821[816,561][816,561]

317,542,398[816,561][816,561]

2,649,577––

Current fiscal period (As of February 28, 2019)(Unit: Thousands of yen)

(1) Cash and deposits(2) Cash and deposits in trust(3) Investment securities
Held-to-maturity bonds
Total assets(4) Current portion of long-term loans(5) Investment corporation bonds(6) Long-term loans(7) Tenant leasehold and security deposits
in trust
Total liabilities(8) Derivative transactions
Total derivative transactions

Balance sheet carrying
amount31,274,515
9,976,462

Fair value

Difference

31,274,515
9,976,462

–
–

9,360
41,260,338
40,510,000
19,000,000
261,758,000

9,228
41,260,206
40,614,396
19,129,020
265,438,709

(132)
(132)
104,396
129,020
3,680,709

603,606

596,174(7,432)321,871,606[1,063,056][1,063,056]

325,778,301[1,063,056][1,063,056]

3,906,694––* Amounts shown for derivative transactions are the net amount of credit and liability arising fromderivatives. Values inside square parentheses [ ] indicate a net liability.
(Note 1) Measurement methods for fair values of financial instruments and matters regarding derivativetransactions(1) Cash and deposits, (2) Cash and deposits in trust
These instruments are settled in the short term and their fair values are approximately equal to theirbook values, thus, the measurement is based on their book values.
(3) Investment securities
The fair value is based on reference bond trading statistics.
For the balance sheet carrying amount and fair value of held-to-maturity bonds and the difference
between the two values, please refer to “Securities” described later.
(4) Current portion of long-term loans, (6) Long-term loans
The fair value of long-term loans carrying floating interest rates is approximately equal to their bookvalue, thus, the measurement is based on their book value. However, for long-term loans carrying
floating interest rates to which special treatment for interest rate swaps is applied, DHR employs amethod to calculate the fair value by discounting the sum of principal and interest, which are treatedin combination with the said interest rate swap, at the reasonable rate estimated for similar types ofloans.
- 28 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

The fair value of long-term loans carrying fixed interest rates is calculated by discounting the sum of
principal and interest at the reasonable rate estimated for a similar loan.
(5) Investment corporation bonds
The fair value of these bonds is measured as the present value, which is calculated by discounting thesum of principal and interest at the interest rate determined taking into account the current maturity
and corresponding credit risk.
(7) Tenant leasehold and security deposits in trust
The fair value is measured based on the discounted cash flows, using rates reflecting the period up to
payment.
(8) Derivative transactions
Please refer to “Derivative Transactions” described later.
(Note 2) Balance sheet carrying amount of financial instruments whose fair value is considered extremely
difficult to determine(Unit: Thousands of yen)
Current fiscal period(As of February 28, 2019)276,389
17,250,886

Previous fiscal period(As of August 31, 2018)280,916
16,797,529

Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust* These are not subject to fair value disclosure because there are no market prices for them, and the actual
deposit period is not estimable as leases may be cancelled, renewed or re-signed even if a lease term is set
in the lease agreement, which in turn makes it difficult to reasonably estimate cash flow.
(Note 3) Redemption schedule for monetary claims after balance sheet datePrevious fiscal period (As of August 31, 2018)(Unit: Thousands of yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Cash and deposits

26,954,525

–

–

–

–

–

Cash and deposits in trust

10,505,983

–

–

–

–

–

–

–

–

–

–

10,00037,460,508

–

–

–

–

10,000Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Cash and deposits

31,274,515

–

–

–

–

–

Cash and deposits in trust

9,976,462

–

–

–

–

–

–

–

–

–

–

10,00041,250,978

–

–

–

–

10,000Investment securities
Total

Due after
5 years

Current fiscal period (As of February 28, 2019)(Unit: Thousands of yen)

Investment securities
Total- 29 -

Due after
5 yearsDaiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Note 4) Expected amount of repayments of investment corporation bonds and long-term loans after
balance sheet datePrevious fiscal period (As of August 31, 2018)(Unit: Thousands of yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years––

3,000,000

4,000,000–

12,000,000

11,600,000

36,810,000

16,000,000

33,858,000

35,900,000

161,100,000

11,600,000

36,810,000

19,000,000

37,858,000

35,900,000

173,100,000

Investment corporation bonds
Long-term loans (*)
Total
(*)

Due after
5 years

Includes the current portion of long-term loans.

Current fiscal period (As of February 28, 2019)(Unit: Thousands of yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years–

3,000,000

4,000,000––

12,000,000

40,510,000

11,400,000

26,358,000

38,500,000

35,400,000

150,100,000

40,510,000

14,400,000

30,358,000

38,500,000

35,400,000

162,100,000

Investment corporation bonds
Long-term loans (*)
Total
(*)

Due after
5 years

Includes the current portion of long-term loans.

Securities
Previous fiscal period (As of August 31, 2018)
Held-to-maturity bonds(Unit: Thousands of yen)
Balance sheet
carrying amount
Bonds with fair value exceeding the balance
sheet carrying amount
Bonds with fair value not exceeding thebalance sheet carrying amount–Government
bonds

Total

Fair value

Difference

–

–

–

9,342

8,921

(421)

9,342

8,921

(421)

Current fiscal period (As of February 28, 2019)
Held-to-maturity bonds(Unit: Thousands of yen)
Balance sheet
carrying amount
Bonds with fair value exceeding the balance
sheet carrying amount
Bonds with fair value not exceeding thebalance sheet carrying amount–Government
bonds

Total

- 30 -

Fair value

Difference

–

–

–

9,360

9,228

(132)

9,360

9,228

(132)

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Derivative Transactions
1.

Derivative transactions not applying hedge accounting
Not applicable for the previous fiscal period (as of August 31, 2018) and current fiscal period (as ofFebruary 28, 2019).

2.

Derivative transactions applying hedge accounting
The following table shows contracted amount or principal amount equivalent or the like set forth in thecontract as of the balance sheet date for each hedge accounting method.
Previous fiscal period (As of August 31, 2018)

Hedge accounting
methodPrinciple method
Special treatment
for interest rate
swap

Type ofderivative transaction
Interest rate swap transaction
Receipt: floating interest rate
Payment: fixed interest rate
Interest rate swap transaction
Receipt: floating interest rate
Payment: fixed interest rate
Total

Major
hedged item

Contracted amountPortion due
after one year

(Unit: Thousands of yen)Calculation
Fair value method forfair value

Long-term
loans

47,500,000

47,500,000(816,561)(Note 1)Long-term
loans

48,268,000

48,268,000(Note 2)–

95,768,000

95,768,000(816,561)–

Current fiscal period (As of February 28, 2019)
Hedge accounting
methodType ofderivative transaction

Major
hedged item

Contracted amountPortion due
after one year

(Unit: Thousands of yen)Calculation
Fair value method forfair value

Interest rate swap transaction
Long-term
Receipt: floating interest rate
47,500,000
47,500,000 (1,063,056) (Note 1)
loans
Payment: fixed interest rate
Special treatment Interest rate swap transaction
Long-term(Note 2)–for interest rate
Receipt: floating interest rate
48,268,000
30,858,000
loans
swap
Payment: fixed interest rate
Total
95,768,000
78,358,000 (1,063,056)–(Note 1) Fair value is quoted by counterparties based on the prevailing market interest rate.
(Note 2) Fair value of interest rate swap with the special treatment is included in fair value of hedged long-term loans as suchinterest rate swap and the hedged long-term loans are processed as a single unit. (Please refer to “Financial
Instruments” above.)
Principle method

Related Party Transactions
1.

Parent company and major corporate unitholders
Not applicable for the previous fiscal period (from March 1, 2018 to August 31, 2018) and current fiscal
period (from September 1, 2018 to February 28, 2019).

2.

Associates, etc.
Not applicable for the previous fiscal period (from March 1, 2018 to August 31, 2018) and current fiscal
period (from September 1, 2018 to February 28, 2019).

3.

Sister companies, etc.
Not applicable for the previous fiscal period (from March 1, 2018 to August 31, 2018) and current fiscal
period (from September 1, 2018 to February 28, 2019).

4.

Directors and principal individual unitholders
Not applicable for the previous fiscal period (from March 1, 2018 to August 31, 2018) and current fiscal
period (from September 1, 2018 to February 28, 2019).
- 31 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Tax Effect Accounting
1. Significant components of deferred tax assets and liabilities(Unit: Thousands of yen)
Current fiscal period(As of February 28, 2019)

Previous fiscal period(As of August 31, 2018)
Deferred tax assets
Allowance for doubtful accounts
Deferred interest income

652

386

360,001

328,554

Valuation difference from the time of merger(Long-term prepaid expenses, etc.)

134

90

Valuation difference from the time of merger(Land, Buildings)

2,748,571

2,677,223

Loss carryforwards assumed at the time ofmerger160,307160,288

Asset retirement obligations

195,991

197,832

Deferred gains or losses on hedges

257,982

335,819

Depreciation of fixed-term land lease rights

107,406

122,371

Accounts payable - other (Loss on litigation)

28,713

–

Other

2,210

9,589

Subtotal

3,861,972

3,832,157

Valuation allowance(3,861,972)(3,832,157)––

Valuation difference from the time of merger(Investment securities)

(758)

(740)

Valuation difference from the time of merger(Land, Buildings)(14,555,319)(14,519,107)

Asset retirement costs associated with asset
retirement obligations(174,361)(174,340)

Subtotal(14,730,439)(14,694,188)

Valuation allowance

14,730,439

14,694,188

–

–

–

–

Total
Deferred tax liabilities

Total
Net deferred tax assets(Note)

Based on the cash distribution policy set forth in Article 37 of the Articles of Incorporation of DHR, DHR candistribute an amount of cash that exceeds profit in order to suppress the incurrence of income taxes. Accordingly, as
payment of corporate taxes in future accounting periods is not expected, deferred tax liabilities are not recorded.

2. Reconciliation of significant difference between the statutory effective tax rate and the actual effective
tax rate after application of tax effect accounting
Previous fiscal period(As of August 31, 2018)
Statutory effective tax rate

(Unit: %)Current fiscal period(As of February 28, 2019)

31.74

31.51

(38.84)(37.87)(Adjustments)
Distributions paid included in deductibles
Amortization of goodwill

8.10

7.26

Change in valuation allowance(1.01)(0.92)

Other

0.02

0.01

0.01

0.01

Effective tax rate after application of tax effectaccounting- 32 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Retirement Benefits
Not applicable for the previous fiscal period (as of August 31, 2018) and current fiscal period (as ofFebruary 28, 2019), since DHR does not have a retirement benefit plan.
Asset Retirement Obligations
1. Details of applicable asset retirement obligations
DHR has entered into agreements involving fixed-term land lease rights with the landowners for part of
DHR’s assets, and recognizes asset retirement obligations associated with restoration obligations upon
expiration of the lease agreements.
2. Methods of calculating the amounts of applicable asset retirement obligations
DHR estimates the useful life of applicable assets as the remaining agreement period of the applicable
fixed-term land lease rights (46-60 years), and uses a 1.0%-2.4% discount rate for the calculation of
applicable asset retirement obligations.
3. Changes in applicable asset retirement obligations
Previous fiscal period(From March 1, 2018
to August 31, 2018)(Unit: Thousands of yen)
Current fiscal period(From September 1, 2018
to February 28, 2019)

Balance at beginning of period
Increase due to acquisitions of property, plantand equipment
Accretion expense

439,186

620,349

175,465

–

5,698

5,901

Balance at end of period

620,349

626,251

Investment and Rental Properties
DHR holds rental logistics, residential, retail, and other properties in the greater Tokyo area and other areas
for rental revenues. The balance sheet carrying amounts, changes during the fiscal period, and fair values ofthese properties are as follows:
Previous fiscal period(From March 1, 2018
to August 31, 2018)
Balance sheet carrying amount
Balance at beginning of period

560,376,601(Unit: Thousands of yen)
Current fiscal period(From September 1, 2018
to February 28, 2019)652,230,280

Changes during period

91,853,678

8,281,337

Balance at end of period

652,230,280

660,511,618

731,042,000

753,721,000

Fair value at end of period(Note 1) The balance sheet carrying amount is the acquisition cost less accumulated depreciation.
(Note 2) In changes during period, the increase in the previous fiscal period is mainly due to the acquisitions of 16 properties
including DPL Fukuoka Kasuya (¥97,823,050 thousand), while the decrease is principally due to the sale of Crest
Kusatsu (¥2,814,320 thousand) and depreciation. The increase in the current fiscal period is mainly due to theacquisitions of four properties including COMBOX310 (¥12,912,161 thousand), while the decrease is principally due
to the sale of Morino Tonari (¥1,044,407 thousand) and depreciation.
(Note 3) The fair value at end of period is the appraisal value provided by external real estate appraisers.

The profit or loss concerning investment and rental properties is indicated under “Notes to Statements ofIncome.”- 33 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Segment Information
1.

Segment information
Segment information is omitted since DHR is engaged in a single business of real estate leasing and there
is no reportable segment subject to disclosure.

2.

Related information

Previous fiscal period (From March 1, 2018 to August 31, 2018)(1) Information about product and service
This information is omitted since operating revenues from external customers in the single product andservice category exceeded 90% of operating revenues on the statements of income.
(2) Information about geographical areai) Operating revenues
This information is omitted since operating revenues from external customers in Japan exceeded 90% of
operating revenues on the statements of income.
ii) Property, plant and equipment
This information is omitted since the amount of property, plant and equipment located in Japanexceeded 90% of property, plant and equipment on the balance sheet.
(3) Information about major customers
This information is omitted as there are no cases where operating revenues attributable to a single externalcustomer accounts for 10% or more of the operating revenues recorded in the statements of income.
Current fiscal period (From September 1, 2018 to February 28, 2019)(1) Information about product and service
This information is omitted since operating revenues from external customers in the single product andservice category exceeded 90% of operating revenues on the statements of income.
(2) Information about geographical areai) Operating revenues
This information is omitted since operating revenues from external customers in Japan exceeded 90% of
operating revenues on the statements of income.
ii) Property, plant and equipment
This information is omitted since the amount of property, plant and equipment located in Japanexceeded 90% of property, plant and equipment on the balance sheet.
(3) Information about major customers
This information is omitted as there are no cases where operating revenues attributable to a single externalcustomer accounts for 10% or more of the operating revenues recorded in the statements of income.
Equity in Earnings or Losses of Equity-method Investments
Not applicable for the previous fiscal period (as of August 31, 2018) and current fiscal period (as ofFebruary 28, 2019), since there is no associate.

- 34 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Per Unit Information
Previous fiscal period(From March 1, 2018
to August 31, 2018)

Current fiscal period(From September 1, 2018
to February 28, 2019)¥223,454¥222,741¥4,083¥4,461

Net assets per unit
Basic earnings per unit

(Note 1) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units forthe period. Fully diluted earnings per investment unit is not stated, as there is no potential investment unit.
(Note 2) The basis for calculating basic earnings per unit is as follows:
Previous fiscal period(From March 1, 2018
to August 31, 2018)

Current fiscal period(From September 1, 2018
to February 28, 2019)(Thousands of yen)

7,765,290

8,597,087

Amount not attributable to common
unitholders(Thousands of yen)––

Profit attributable to common
investment units (Thousands of yen)

7,765,290

8,597,087

Average number of investment units
for the period(Units)1,901,777

1,927,000

ProfitMajor Subsequent Events
1.

Issuance of new investment units
At the board of directors meetings held on February 8, 2019, and on February 20, 2019, it was resolved toissue new investment units, as follows. The payment for the new investment units issued through public
offering was completed on March 1, 2019, while the payment for the new investment units issued throughthird-party allotment was completed on March 26, 2019.
As a result, unitholders’ capital amounts to ¥198,492 million, and the total number of investment units
issued is 2,075,000 units.

(1) Issuance of new investment units (public offering)Number of new investment units issued:

138,000 units(Japan: 86,900 units; Overseas: 51,100 units)¥245,784 per unit
¥33,918,192,000¥238,260 per unit
¥32,879,880,000
March 1, 2019

Issue price:
Total issue price:Amount paid in (issue value):
Total amount paid in (issue value):
Payment date:(2) Issuance of new investment units through third-party allotment
Number of new investment units issued:
Amount paid in (issue value):
Total amount paid in (issue value):
Payment date:
Allottee:

10,000 units¥238,260 per unit
¥2,382,600,000
March 26, 2019
Nomura Securities Co., Ltd.

- 35 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 20192.

Acquisition of assets
DHR acquired the following properties.
Asset name

D Project Kitahachioji I

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥4,300,000 thousand

Seller (Note 2)

DH Development II Godo Kaisha

Date of acquisition

April 5, 2019

Asset name

D Project Kitahachioji II

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥5,700,000 thousand

Seller (Note 2)

DH Development II Godo Kaisha

Date of acquisition

April 5, 2019

Asset name

D Project Kitahachioji III

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥7,300,000 thousand

Seller (Note 2)

DH Development II Godo Kaisha

Date of acquisition

April 5, 2019

Asset name

D Project Itabashi Shingashi

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥12,300,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019

Asset name

D Project Sagamihara

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥3,900,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019

Asset name

D Project Kuki VIII

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥6,100,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019

Asset name

D Project Yokkaichi

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥1,490,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019

Asset name

D Project Ibaraki Ishioka

Asset type

Trust beneficiary interest in real estate

Asset class

Logistics properties

Acquisition price (Note 1)¥4,050,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 10, 2019- 36 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Asset nameiias Tsukuba (30% quasi co-ownership)

Asset type

Trust beneficiary interest in real estate

Asset class

Retail properties

Acquisition price (Note 1)¥10,320,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 5, 2019

Asset name

Aoyama Tailor Bunkyo Sengoku Ekimae Store

Asset type

Trust beneficiary interest in real estate

Asset class

Retail properties

Acquisition price (Note 1)¥750,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 5, 2019

Asset name

FOLEO Shobu

Asset type

Trust beneficiary interest in real estate

Asset class

Retail properties

Acquisition price (Note 1)¥5,000,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

April 5, 2019

Asset nameDaiwa Roynet Hotel Nagoya Shinkansenguchi

Asset type

Trust beneficiary interest in real estate

Asset class

Hotel properties

Acquisition price (Note 1)¥4,500,000 thousand

Seller (Note 2)

Nihon Jyutaku Ryutu Co., Ltd.

Date of acquisition

April 5, 2019

Asset name

Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi Store

Asset type

Trust beneficiary interest in real estate

Asset class

Other assets

Acquisition price (Note 1)¥1,380,000 thousand

Seller (Note 2)

Daiwa House Industry Co., Ltd.

Date of acquisition

March 12, 2019

(Note 1) This figure does not include expenses pertaining to acquisitions, settlement money such as taxes and publicdues, consumption taxes, etc.
(Note 2) The following companies are defined as interested parties, etc. in the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951, as amended; hereinafter referred to as the “Investment TrustsAct”): Daiwa House, which is the seller of D Project Itabashi Shingashi, D Project Sagamihara, D Project
Kuki VIII, D Project Yokkaichi, D Project Ibaraki Ishioka, iias Tsukuba, Aoyama Tailor Bunkyo Sengoku
Ekimae Store, FOLEO Shobu and Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi Store andNihon Jyutaku Ryutu Co., Ltd., which is the seller of Daiwa Roynet Hotel Nagoya Shinkansenguchi.
DH Development II Godo Kaisha, which is the seller of D Project Kitahachioji I, D Project Kitahachioji II
and D Project Kitahachioji III, is a special purpose company (Tokutei Mokuteki Kaisha) on which Daiwa
House, a parent company of the Asset Manager, may have a significant influence and is an interested party as
defined in the Asset Manager’s regulations on transactions with interested parties; however, is not aninterested party, etc., as defined in the Investment Trusts Act.
The Asset Manager has gone through the necessary discussion and resolution procedures in accordance with
its regulations on transactions with interested parties.

- 37 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 20193.

Debt financing
DHR conducted debt financing for acquiring the properties mentioned in “2. Acquisition of assets” above,on April 5, 2019 and April 10, 2019, as follows.
Borrowingamount(Millions ofyen)Interest rate

Borrowing Repayment Method of
Collateral
date
date
repayment

1,000

0.45000%(Fixed interest
rate)

April 5,2019

April 30,
2026

Bulletrepayment

Unsecuredandnonguaranteed

500

0.49677%(Fixed interest
rate)

April 5,2019

April 30,
2027

Bulletrepayment

Unsecuredandnonguaranteed

Development Bank of Japan Inc.

1,500

0.58880%(Fixed interest
rate)

April 5,2019

April 28,
2028

Bulletrepayment

Unsecuredandnonguaranteed

Sumitomo Mitsui Banking
Corporation;
Sumitomo Mitsui Trust Bank,
Limited;
MUFG Bank, Ltd.;
Mizuho Bank, Ltd.

Base interest rate
(Japanese Bankers
6,000
Association
1-month yen
TIBOR) +0.23%

April 10,2019

October
31, 2022

Bulletrepayment

Unsecuredandnonguaranteed

April 10,2019

October
31, 2024

Bulletrepayment

Unsecuredandnonguaranteed

LenderMitsui Sumitomo Insurance
Company, Limited

Nippon Life Insurance
Company

Sumitomo Mitsui Banking
Corporation;
The Norinchukin Bank;
Sumitomo Mitsui Trust Bank,
Limited;Shinsei Bank, Limited;
Shinkin Central Bank;
The Bank of Fukuoka, Ltd.;The Chiba Bank, Ltd.;The 77 Bank, Ltd.;The Nishi-Nippon City Bank,Ltd.;
The Iyo Bank, Ltd.;The Chugoku Bank, Ltd.

8,100

0.39138%(Fixed interest
rate)

Sumitomo Mitsui Banking
Corporation;
Mizuho Bank, Ltd.;
Unsecured
Sumitomo Mitsui Trust Bank,
0.74800%
April 10, April 27,
BulletandLimited;10,400(Note)
20192029
repayment
nonResona Bank, Limited;
guaranteed
Mizuho Trust & Banking Co.,Ltd.;
MUFG Bank, Ltd.
(Note) DHR entered into an interest-rate swap contract to hedge its exposure to interest rate fluctuation risk. The
stated interest rate includes the effect of the interest-rate swap.

- 38 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(9) Changes in Number of Investment Units Issued
DHR’s total number of investment units issued and changes in unitholders’ capital for the most recent five
years until February 28, 2019 are as follows:

Date

Event

Total number ofinvestment units issued(Units)Unitholders’ capital(Millions of yen)

ChangeChangeBalance

RemarkBalance

March 1, 2015

Split of investment units

373,870

747,740–

61,703(Note 1)

September 1,
2016

Delivery by allotment
due to merger

771,540

1,519,280–

61,703(Note 2)

March 21, 2017

Capital increase throughpublic offering

156,720

1,676,000

42,625

104,328(Note 3)

April 14, 2017

Capital increase throughthird-party allotment

14,0001,690,000

3,807

108,136(Note 4)

March 19, 2018

Capital increase throughpublic offering

222,000

1,912,000

51,607

159,743(Note 5)

April 13, 2018

Capital increase throughthird-party allotment

15,0001,927,000

3,486

163,230(Note 6)(Note 1) A 2-for-1 split of investment units was implemented with an effective date of March 1, 2015.
(Note 2) At the time of the Merger, which became effective as of September 1, 2016, DHR allotted 2.2 units of DHR per
unit of the former DHR, and as a result, 771,540 new investment units were issued.
(Note 3) Investment units were issued by public offering with an issue price of ¥280,868 per unit (issue value: ¥271,983)
in order to raise funds for the acquisition of new properties, etc.
(Note 4) Additional investment units were issued with an issue value of ¥271,983 per unit in order to raise funds for theacquisition of new properties, etc.
(Note 5) Investment units were issued by public offering with an issue price of ¥239,806 per unit (issue value: ¥232,465)
in order to raise funds for the acquisition of new properties, etc.
(Note 6) Additional investment units were issued with an issue value of ¥232,465 per unit in order to raise funds for theacquisition of new properties, etc.

- 39 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

4. Changes in Officers(1) Changes in DHR’s Directors
The following table shows about the DHR’s Directors as of the date of this financial results report.
Title and post

Name

Executive Director

Jiro Kawanishi

Supervisory
Director

Supervisory
Director

Tetsuya Iwasaki

Major career summary
Apr. 1974

Joined The Mitsui Trust and Banking Company,
LimitedJun. 2001

Executive Officer and General Manager,
Nihonbashi Business Dept. IV, The Chuo Mitsui
Trust and Banking Company, Limited

Mar. 2003

Managing Director, Chuo Mitsui Card Co., Ltd.

May 2008

President and CEO, Chuo Mitsui Card Co., Ltd.

Jun. 2009

Corporate Auditor, GS Yuasa Corporation

Mar. 2014

Corporate Auditor (part-time), Fujita Kanko Inc.

Dec. 2015

Executive Director, DHR (current position)

Apr. 1990

Joined Deloitte Touche TohmatsuMar. 1994

Registered as a certified public accountant

Feb. 1997

Joined NED Kabushiki Kaisha

Feb. 1997

Opened Tetsuya Iwasaki Certified Public
Accountant Firm

May 2002

Registered as a certified public tax accountant

Aug. 2004

Joined Citia Certified Public Accountant Firm
(current position)

Jan. 2006

Supervisory Director, DHR (current position)

Jun. 2015

Outside Director, Uoriki Co., Ltd. (current
position)

Hiroshi Ishikawa Apr. 1997

Number ofinvestment
units held
(Units)00Legal apprentice

Apr. 1999

Tokyo Bar Association
Joined Ohhara Law Office (current position)

Jun. 2013

Outside Director, Japan Medical Dynamic
Marketing, INC. (current position)

Dec. 2013

Supervisory Director, DHR (current position)- 40 -

0Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(2) Changes in Officers of Asset Manager
The following table shows about the Officers of the Asset Manager as of the date of this financial results
report.
Title and post

Name

President and CEO

Koichi Tsuchida

Major career summary
Apr. 1983

Joined Daiwa House Industry Co., Ltd.

Oct. 1997

Manager, Administration and Accounting
Section, Kumamoto Branch, Daiwa House
Industry Co., Ltd.

Apr. 2002

Manager, Administration and Support Group,
Accounting Department, Administrative
Headquarters, Daiwa House Industry Co., Ltd.

Oct. 2003

Manager, Finance and Fund Group, Finance
Department, Administrative Headquarters, Daiwa
House Industry Co., Ltd.

Apr. 2005

Deputy Department Manager, Finance and FundGroup, Finance Department, Administrative
Headquarters, Daiwa House Industry Co., Ltd.

Apr. 2006

General Manager, Finance Department,
Administrative Headquarters, Daiwa House
Industry Co., Ltd.

Jun. 2006

Corporate Auditor (part-time), Daiwa Service
Co., Ltd.

Dec. 2006

Outside Director, Daiwa House Insurance Co.,Ltd.

Apr. 2007

General Manager, Finance Department,
Management Administration Headquarters,
Daiwa House Industry Co., Ltd.

Apr. 2008(Concurrent) General Manager, IR Department,
Management Administration Headquarters,
Daiwa House Industry Co., Ltd.

Apr. 2014

President and CEO, Daiwa House AssetManagement Co., Ltd. (employment transfer)(current position)- 41 -

Number ofshares held
(Shares)0Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Title and post

Name

Senior Managing
Director

KenjiroMatsutakeManaging Director

Major career summary
Apr. 1983

Joined Daiwa House Industry Co., Ltd.

Jan. 1994

Manager, Commercial Facilities Marketing
Headquarters, Osaka Head Office, Daiwa House
Industry Co., Ltd.

Oct. 1999

Sales Office Manager, Commercial Facilities
Sales Office, Shiga Branch, Daiwa House
Industry Co., Ltd.

Apr. 2004

Manager, LOC Promotion Office, Commercial
Facilities Business Promotion Department,
Marketing Headquarters, Daiwa House Industry
Co., Ltd.

Jan. 2005

Director and General Manager, Planning
Department, Morimoto Asset Management Co.,
Ltd. (currently, Daiwa House Asset Management
Co., Ltd.) (seconded)

Nov. 2005

Senior Managing Director, Morimoto AssetManagement Co., Ltd.

Oct. 2006

Director and Executive Manager, Investment
Management Department, Daiwa House REITManagement Co., Ltd. (seconded)

May 2009

President and CEO, Daiwa House REITManagement Co., Ltd.
Executive Director, Daiwa House REIT
Investment Corporation

Aug. 2012

Director and Executive Manager, Investment
Management Department, Daiwa House REITManagement Co., Ltd.

Apr. 2015

Managing Director and Executive Manager,
Investment Management Department, Daiwa
House REIT Management Co., Ltd.

Sep. 2016

Senior Managing Director and Head ofInvestment Management Division, Daiwa House
Asset Management Co., Ltd. (seconded)

Apr. 2019

Daiwa House Asset Management Co., Ltd.
(employment transfer) (current position)

Masahiko Arima Apr. 1986

Number ofshares held
(Shares)0

Joined Daiwa House Industry Co., Ltd.

Apr. 2002

Manager, Accounting and Administration
Division, Ryomo Branch, Daiwa House Industry
Co., Ltd.

Apr. 2006

Manager, Accounting Division and
Administration Division, Fukushima Branch,Daiwa House Industry Co., Ltd.

Apr. 2011

Deputy General Manager, Accounting Division
and Administration Division, Fukushima Branch,Daiwa House Industry Co., Ltd.

Apr. 2012Managing Director and General Manager,
Administration & Accounting Department, Daiwa
House Asset Management Co., Ltd. (seconded)

Aug. 2016

Managing Director and General Manager,
Administration & Accounting Department and
Finance and Corporate Planning Department,
Daiwa House Asset Management Co., Ltd.

Sep. 2016

Managing Director and General Manager,
Administration & Accounting Department, Daiwa
House Asset Management Co., Ltd.

Apr. 2019

Daiwa House Asset Management Co., Ltd.
(employment transfer) (current position)- 42 -

0Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Title and post
Director

Corporate Auditor(Part-time)

Name
HarutoTsukamoto

Hiroshi Tobita

Major career summary
Apr. 1983

Joined The Mitsui Trust and Banking Company,
LimitedAug. 2003

Branch Manager, Yachiyo Branch, The Chuo
Mitsui Trust and Banking Company, Limited

Nov. 2004

General Manager, Sales Department I, Nagoya
Branch, and Satellite Office Manager,
Kanayamabashi Satellite Office, The Chuo Mitsui
Trust and Banking Company, Limited

Jul. 2006

General Manager, Sales Department II, Nagoya
Branch, The Chuo Mitsui Trust and Banking
Company, Limited

Jan. 2008

Branch Manager, Urawa Branch, The Chuo
Mitsui Trust and Banking Company, Limited

Jul. 2009

Chief Operational Auditor, Operational Audit
Group, Internal Audit Department, The Chuo
Mitsui Trust and Banking Company, Limited

Mar. 2011

Mitsui Memorial Hospital (seconded)

Apr. 2013

Deputy Director General, Internal Audit
Department, Sumitomo Mitsui Trust Bank,
LimitedNov. 2014

Director and Executive Manager, Finance
Department, Daiwa House REIT Management
Co., Ltd. (seconded)

Apr. 2016

Daiwa House REIT Management Co., Ltd.
(employment transfer)

Sep. 2016

Director and General Manager, Finance andCorporate Planning Department (CFO), Daiwa
House Asset Management Co., Ltd. (current
position)

Apr. 1995

Legal apprentice

Apr. 1997

Tokyo Bar Association
Joined Saotome Goro Law Office

Apr. 2000

Joined Nishimura & Partners

Aug. 2010

Opened Tobita Hiroshi Law OfficeNov. 2010

Partner, Wisdom Law OfficeJun. 2015

Opened Tobita & Partners Law Offices (current
position)

Jun. 2015

Corporate Auditor (part-time), Daiwa House
Asset Management Co., Ltd. (current position)

Jun. 2015

Outside Director and Audit and Supervisory
Committee Member, Mutoh Holdings Co., Ltd.
(current position)

Jun. 2018

External Corporate Auditor, Tokyo International
Air Terminal Corporation (current position)- 43 -

Number ofshares held
(Shares)00Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

The following table shows about the Compliance Officer as of the date of this financial results report.
Title and post

Name

Compliance Officer

Hirofumi Wakui

Major career summary
Apr. 1982

Joined The Chuo Trust and Banking Co., Ltd.

Jun. 2001

Deputy General Manager, General Planning
Department, The Chuo Mitsui Trust and Banking
Company, Limited

Feb. 2002

Deputy General Manager, General Planning
Department, The Chuo Mitsui Trust and Banking
Company, Limited and Deputy General Manager,
Corporate Planning Department, Mitsui TrustHoldings, Inc.

Jul. 2002

Branch Manager, Gifu Branch, The Chuo Mitsui
Trust and Banking Company, Limited

Apr. 2005

General Manager, Operations Administration
Department, The Chuo Mitsui Trust and Banking
Company, Limited

Oct. 2007

General Manager, General Planning Department,
The Chuo Mitsui Trust and Banking Company,
LimitedJul. 2009Managing Executive Officer and General
Manager, General Planning Department, The
Chuo Mitsui Trust and Banking Company,
LimitedJun. 2010

Managing Executive Officer and General
Manager, Internal Audit Department, The Chuo
Mitsui Trust and Banking Company, Limited

Apr. 2012

Executive Vice-president, Sumitomo Mitsui Trust
Card Co., Ltd.

Jul. 2013

Compliance Officer, Daiwa House AssetManagement Co., Ltd. (employment transfer)(current position)- 44 -

Number ofshares held
(Shares)0Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

5. Reference Information
Status of DHR’s investment(1) Portfolio Listi)

Status of Investment
The status of DHR’s investment as of February 28, 2019 is shown below.
Type of assets

Real estate

Area

Asset class

Residential
properties(Note 1)

Residential
properties

Greater Tokyo area

23,854

3.1

909

0.1

Greater Osaka area

13,315

1.7

Other

5,329

0.7

Three major
metropolitan
areas of Japan

Three major
metropolitan
areas of Japan

Hotelproperties

Three major
metropolitan
areas of Japan

Other

43,408

5.6

Greater Tokyo area

206,536

26.6

Greater Nagoya area

15,426

2.0

Greater Osaka area

23,0773.0

Other90,356

11.6
21.6

Greater Tokyo area

168,091

Greater Nagoya area

6,048

0.8

Greater Osaka area

6,132

0.8

Other

5,082

0.7

Greater Tokyo area

26,780

3.4

Greater Nagoya area

2,390

0.3

Greater Osaka area

20,534

2.6

Other29,229

3.8

Greater Tokyo area

4,803

0.6

Greater Osaka area

1,476

0.2

Greater Tokyo area

1,919

0.2

Other

9,217

1.2

Three major
metropolitan
areas of Japan

Trust beneficiaryinterest in real estate Retailproperties(Note 2)

Percentage
to total assets(%) (Note 3)

Greater Nagoya area

Three major
metropolitan
areas of Japan
Subtotal

Logistics
properties

Total amount held
(Millions of yen)Three major
metropolitan
areas of Japan

617,103

79.3

Deposits and other assets

Subtotal

117,215

15.1

Total assets

777,727

100.0

Amount(Millions of yen)

Percentage
to total assets(%) (Note 3)

Total liabilities

348,504

44.8

Total net assets

429,223

55.2(Note 1)

(Note 2)

(Note 3)Three major metropolitan areas of Japan in “Area” are the Greater Tokyo area (Tokyo, Kanagawa, Saitama andChiba), the Greater Nagoya area (Aichi, Gifu and Mie) and the Greater Osaka area (Osaka, Kyoto, Hyogo, Naraand Shiga). The same shall apply hereinafter.
“Total amount held” represents the amount recorded on the balance sheets as of February 28, 2019, which isrounded down to the nearest million yen. For real estate and trust beneficiary interest in real estate, the amounts
are their acquisition prices (including expenses associated with the acquisition) less accumulated depreciation.
“Percentage to total assets” is rounded to the nearest tenth.

- 45 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019ii) Major investment securities
The status of investment securities held by DHR as of February 28, 2019 is shown below.
(Unit: Thousands of yen)
Type

Issue name

Total face
value

Book
value

Prepaid
Valuation
AccruedInvestment
accrued Fair value gain orinterest
ratio
interest
loss

Interest
rate

Maturity

–

–

9,228

(132)

0.0%

–

–

9,228

(132)

0.0%

30-year principalGovernment
stripped government
bonds
bonds (Series 27)

10,0009,360–

September
20, 2037

Total

10,000

9,360

–

–

Remark
Depositedas businesssecurity
depositiii) Summary of assets held
A. The summary of real estate or trust beneficiary interest in real estate (or referred as “real estate intrust”) held by DHR as of February 28, 2019 is shown below.

Asset
class

Property
number(Note 1)

Property nameLocation(city or county, prefecture)

Acquisition
date(Note 2)Acquisition price(Note 3)
Price
(Millions ofyen)

Investment
ratio (%)
(Note 4)

Assessedvalue at theBook value
end of(Millions ofperiodyen)(Millions of(Note 5)yen)
(Note 6)

LB-001 D Project Machida

Machida City, Tokyo

September 1, 2016

9,200

1.3

9,251

9,840

LB-002 D Project Hachioji

Hachioji City, Tokyo

September 1, 2016

15,4002.3

15,24317,000

LB-003 D Project Aikawa-Machi

Aiko District, Kanagawa

September 1, 2016

3,390

0.5

3,790

4,410

LB-004 D Project Shin-Misato

Misato City, Saitama

September 1, 2016

5,710

0.8

5,605

5,750

LB-005 D Project Urayasu I

Urayasu City, Chiba

September 1, 2016

9,280

1.4

9,145

9,960

LB-006 D Project Urayasu II

Urayasu City, Chiba

September 1, 2016

26,0003.8

25,594

28,100

LB-007 D Project Akanehama

Narashino City, Chiba

September 1, 2016

2,950

0.4

2,888

3,070

LB-008 D Project Noda

Noda City, Chiba

September 1, 2016

6,210

0.9

6,074

6,550

LB-009 D Project Inuyama (Note 7)

Inuyama City, Aichi

September 1, 2016

10,7901.6

10,521

11,780

LB-010 D Project Gifu

Anpachi District, Gifu

September 1, 2016

1,100

0.2

1,075

1,170

LB-011 D Project Neyagawa

Neyagawa City, Osaka

September 1, 2016

5,980

0.9

5,858

6,320

LB-012 D Project Sapporo Minami

Kitahiroshima City,
Hokkaido

September 1, 2016

818

0.1

790

862

LB-013 D Project Morioka

Takizawa City, Iwate

September 1, 2016

1,200

0.2

1,154

1,210

LB-014 D Project Sendai Minami

Iwanuma City, Miyagi

September 1, 2016

1,530

0.2

1,525

1,580

LB-015 D Project Tsuchiura

Tsuchiura City, Ibaraki

September 1, 2016

3,390

0.5

3,266

3,540

LB-016 D Project Gotenba

Gotenba City, Shizuoka

September 1, 2016

1,140

0.2

1,115

1,140

LB-017 D Project Nishi-Hiroshima

Hiroshima City, Hiroshima

September 1, 2016

1,210

0.2

1,180

1,210

LB-018 D Project Fukuoka Umi

Kasuya District, Fukuoka

September 1, 2016

4,240

0.6

4,128

4,510

LB-019 D Project Tosu

Tosu City, Saga

September 1, 2016

5,740

0.8

5,512

6,150

Kuki City, Saitama

September 1, 2016

3,900

0.6

3,802

4,150

Kuki City, Saitama

September 1, 2016

8,120

1.2

7,838

8,650

Kawagoe City, Saitama

September 1, 2016

3,530

0.5

3,450

3,850

LB-023 D Project Kawagoe II

Kawagoe City, Saitama

September 1, 2016

4,850

0.7

4,758

5,390

LB-024 DPL Inuyama

Inuyama City, Aichi

September 1, 2016

3,940

0.6

3,830

4,220

LB-025 D Project Fukuoka Hakozaki

Fukuoka City, Fukuoka

September 1, 2016

4,340

0.6

4,222

4,630

LB-026 D Project Kuki III

Kuki City, Saitama

September 1, 2016

7,630

1.1

7,405

8,250

LB-027 D Project Kuki IV

Kuki City, Saitama

September 1, 2016

5,520

0.8

5,372

5,910

LB-028 D Project Kuki V

Kuki City, Saitama

September 1, 2016

8,280

1.2

8,088

8,910

LB-029 D Project Kuki VI

Kuki City, Saitama

September 1, 2016

5,140

0.8

5,002

5,510

LB-030 D Project Yashio

Yashio City, Saitama

September 1, 2016

6,400

0.9

6,258

6,790

LB-031 D Project Nishiyodogawa

Osaka City, Osaka

September 1, 2016

10,3001.5

9,996

10,900

LB-032 D Project Matsudo

Matsudo City, Chiba

September 1, 2016

7,370

1.1

7,217

7,760

LB-033 D Project Hibiki Nada

Kitakyushu City, Fukuoka

September 28, 2016

2,080

0.3

2,004

2,170

LB-034 D Project Morioka II

Takizawa City, Iwate

September 28, 2016

1,280

0.2

1,249

1,330

Logistics LB-020 D Project Kuki I
properties
LB-021 D Project Kuki II
LB-022 D Project Kawagoe I

LB-035 D Project Kawagoe III

Kawagoe City, Saitama

April 11, 2017

7,200

1.1

7,089

7,830

LB-036 D Project Kazo

Kazo City, Saitama

April 11, 2017

3,300

0.5

3,249

3,460

LB-037 D Project Urayasu III

Urayasu City, Chiba

April 11, 2017

8,500

1.2

8,512

9,760

LB-038 D Project Tomisato

Tomisato City, Chiba

April 11, 2017

5,000

0.7

4,900

5,280

LB-039 D Project Kyotanabe

Kyotanabe City, Kyoto

April 11, 2017

3,520

0.5

3,494

3,710

LB-040 D Project Sendai Izumi

Sendai City, Miyagi

April 11, 2017

1,510

0.2

1,485

1,610

- 46 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Asset
class

Property
number(Note 1)

Property nameLocation(city or county, prefecture)

Acquisition
date(Note 2)Acquisition price(Note 3)
Price
(Millions ofyen)

Investment
ratio (%)
(Note 4)

Assessedvalue at theBook value
end of(Millions ofperiodyen)(Millions of(Note 5)yen)
(Note 6)

LB-041 D Project Oyama

Oyama City, Tochigi

April 11, 2017

2,000

0.3

1,965

2,040

LB-042 D Project Sano

Sano City, Tochigi

April 11, 2017

1,780

0.3

1,744

1,800

LB-043 D Project Tatebayashi

Tatebayashi City, Gunma

April 11, 2017

3,100

0.5

3,041

3,210

LB-044 D Project Kakegawa

Kakegawa City, Shizuoka

April 11, 2017

6,000

0.9

5,936

6,130

LB-045 D Project Hiroshima Seifu

Hiroshima City, Hiroshima

April 11, 2017

3,820

0.6

3,763

4,050

LB-046 D Project Tosu II

Tosu City, Saga

April 11, 2017

1,700

0.2

1,667

1,890

LB-047 D Project Kawagoe IV

Kawagoe City, Saitama

April 10, 2018

5,600

0.8

5,589

5,930

LB-048 D Project Kuki VII

Kuki City, Saitama

April 10, 2018

1,040

0.2

1,042

1,110

LB-049 D Project Chibakita
Logistics
LB-050 D Project Matsudo II
properties
LB-051 D Project Tomisato II

Chiba City, Chiba

April 10, 2018

7,640

1.1

7,624

8,020

Matsudo City, Chiba

April 10, 2018

8,200

1.2

8,181

8,370

Tomisato City, Chiba

April 10, 2018

6,900

1.0

6,866

7,150

LB-052 D Project Osaka Hirabayashi

Osaka City, Osaka

April 10, 2018

3,600

0.5

3,728

4,350

LB-053 D Project Sendai Izumi II

Sendai City, Miyagi

April 10, 2018

7,300

1.1

7,249

7,540

LB-054 D Project Kaminokawa

Kawachi District, Tochigi

April 10, 2018

7,900

1.2

7,859

8,050

LB-055 D Project Fuji

Fuji City, Shizuoka

April 10, 2018

3,600

0.5

3,582

3,680

LB-056 D Project Tosu III

Tosu City, Saga

April 10, 2018

9,200

1.3

9,141

9,380

LM-001 DPL Misato

Misato City, Saitama

April 11, 201716,831

2.5

16,691

17,80013,300LM-002 DPL Fukuoka Kasuya

Kasuya District, Fukuoka

April 10, 2018

13,3001.9

13,261

LM-003 DPL Kitakyushu

Kitakyushu City, Fukuoka

September 27, 2018

3,510

0.5

3,506

3,580

340,00949.7

335,395

361,602

Total of 59 Logistics properties
RE-001 Qiz Ebisu
RE-002

Castalia Azabujuban
Shichimenzaka

Shibuya Ward, Tokyo

March 22, 2006

7,650

1.1

7,165

8,810

Minato Ward, Tokyo

March 22, 2006

4,500

0.7

4,176

4,350

RE-003 Castalia Shibakoen

Minato Ward, Tokyo

March 22, 2006

2,630

0.4

2,424

2,310

RE-004 Castalia Ginza

Chuo Ward, Tokyo

March 22, 2006

2,520

0.4

2,320

2,260

RE-005 Castalia Hiroo

Minato Ward, Tokyo

March 22, 2006

2,220

0.3

2,060

1,930

RE-006 Castalia Nihonbashi

Chuo Ward, Tokyo

March 22, 2006

1,200

0.2

1,052

1,190

RE-007 Castalia Hacchobori

Chuo Ward, Tokyo

March 7, 2007

2,300

0.3

2,074

2,330

RE-008 Castalia Azabujuban

Minato Ward, Tokyo

June 21, 2007

2,910

0.4

2,760

2,730

RE-009 Castalia Azabujuban II

Minato Ward, Tokyo

June 21, 2007

2,690

0.4

2,528

2,560

RE-010 Castalia Shinjuku Natsumezaka Shinjuku Ward, Tokyo

June 21, 2007

1,865

0.3

1,753

1,630

RE-011 Castalia Ginza II

June 21, 2007

1,800

0.3

1,656

1,760

June 21, 2007

1,400

0.2

1,327

1,180

Chuo Ward, Tokyo

RE-012 Castalia Shibuya Sakuragaoka Shibuya Ward, Tokyo
Castalia Nishi Azabu
Kasumicho

Minato Ward, Tokyo

April 1, 2010

2,143

0.3

2,331

2,480

RE-014 Castalia Ochanomizu

Chiyoda Ward, Tokyo

April 1, 2010

1,770

0.3

1,689

2,250

RE-015 Castalia Sangubashi

Shibuya Ward, Tokyo

April 1, 2010

1,393

0.2

1,479

1,530

RE-016 Castalia Suitengu

Chuo Ward, Tokyo

April 1, 2010

1,279

0.2

1,217

1,540

Chuo Ward, Tokyo

April 1, 2010

1,138

0.2

1,088

1,390

Chuo Ward, Tokyo

April 1, 2010

932

0.1

901

1,120

RE-013RE-017 Castalia Suitengu II
Residential RE-018 Castalia Shintomicho
properties
RE-019 Castalia Shintomicho II

Chuo Ward, Tokyo

April 1, 2010

825

0.1

807

988

RE-020 Castalia Harajuku

Shibuya Ward, Tokyo

April 1, 2010

887

0.1

854

970

RE-021 Castalia Yoyogi Uehara

Shibuya Ward, Tokyo

April 1, 2010

608

0.1

653

740

RE-022 Castalia Sendagaya

Shibuya Ward, Tokyo

April 1, 2010

555

0.1

553

654

RE-023 Castalia Shinjuku 7 chome

Shinjuku Ward, Tokyo

April 1, 2010

464

0.1

437

541

RE-024 Castalia Ningyocho

Chuo Ward, Tokyo

April 1, 2010

947

0.1

885

1,290

RE-025 Castalia Ningyocho II

Chuo Ward, Tokyo

April 1, 2010

1,070

0.2

987

1,420

RE-026 Castalia Shin-Ochanomizu

Chiyoda Ward, Tokyo

April 1, 2010

914

0.1

848

1,090

RE-027 Castalia Higashi Nihonbashi II Chuo Ward, Tokyo

April 1, 2010

1,370

0.2

1,245

1,710

RE-028 Castalia Jinbocho

Chiyoda Ward, Tokyo

April 1, 2010

1,160

0.2

1,074

1,460

RE-029 Castalia Shintomicho III

Chuo Ward, Tokyo

April 1, 2010

675

0.1

608

771

RE-030 Castalia Shinjuku Gyoen

Shinjuku Ward, Tokyo

April 1, 2010

2,720

0.4

2,590

3,320

RE-031 Castalia Takanawadai

Minato Ward, Tokyo

April 1, 2010

860

0.1

811

1,050

Chuo Ward, Tokyo

April 1, 2010

666

0.1

603

830
550

RE-032

Castalia Higashi Nihonbashi
III

RE-033 Castalia Shinjuku Gyoen II

Shinjuku Ward, Tokyo

April 1, 2010

486

0.1

469

RE-034 Castalia Shintomicho IV

Chuo Ward, Tokyo

April 1, 2010

400

0.1

392

505

RE-035 Castalia Takanawadai II

Minato Ward, Tokyo

April 1, 2010

1,190

0.2

1,147

1,380

RE-036 Castalia Minami Azabu

Minato Ward, Tokyo

April 1, 2010

642

0.1

605

710

- 47 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Asset
class

Property
number(Note 1)

Property nameLocation(city or county, prefecture)

Acquisition
date(Note 2)Acquisition price(Note 3)
Price
(Millions ofyen)

Investment
ratio (%)
(Note 4)

Assessedvalue at theBook value
end of(Millions ofperiodyen)(Millions of(Note 5)yen)
(Note 6)RE-037 Castalia Ginza III

Chuo Ward, Tokyo

April 1, 2010

2,880

0.4

2,712

3,070

RE-038 Castalia Kayabacho

Chuo Ward, Tokyo

April 1, 2010

2,707

0.4

2,506

3,240

RE-039 Castalia Takanawa

Minato Ward, Tokyo

April 1, 2010

7,430

1.1

7,111

8,240

RE-040 Castalia Higashi Nihonbashi

Chuo Ward, Tokyo

April 1, 2010

3,520

0.5

3,217

4,080

RE-041 Castalia Shinjuku

Shinjuku Ward, Tokyo

April 1, 2010

2,950

0.4

2,823

3,500

RE-042 Castalia Ichigaya

Shinjuku Ward, Tokyo

RE-043 Shibaura Island Bloom Tower Minato Ward, Tokyo

June 29, 2010

940

0.1

863

1,350

October 18, 2011

7,580

1.1

6,656

9,350

RE-044 Castalia Hatsudai

Shibuya Ward, Tokyo

December 19, 2011

2,030

0.3

1,953

2,390

RE-045 Castalia Hatsudai II

Shibuya Ward, Tokyo

September 27, 2013

1,900

0.3

1,861

2,180

RE-046 Castalia Ebisu

Shibuya Ward, Tokyo

September 27, 2013

1,420

0.2

1,401

1,640

RE-047 Castalia Meguro Kamurozaka

Shinagawa Ward, Tokyo

December 20, 2005

4,500

0.7

4,016

4,470

RE-048 Castalia Toritsudaigaku

Meguro Ward, Tokyo

March 22, 2006

648

0.1

583

536

RE-049 Castalia Yukigaya

Ota Ward, Tokyo

March 7, 2007

1,110

0.2

983

1,150

RE-050 Castalia Yutenji

Meguro Ward, Tokyo

June 21, 2007

1,450

0.2

1,328

1,320

RE-051 Castalia Otsuka

Toshima Ward, Tokyo

June 21, 2007

1,480

0.2

1,303

1,650

RE-052 Castalia Kikukawa

Sumida Ward, Tokyo

June 21, 2007

817

0.1

713

809

RE-053 Castalia Meguro

Meguro Ward, Tokyo

April 1, 2010

844

0.1

862

1,070

RE-054 Castalia Otsuka II

Toshima Ward, Tokyo

April 1, 2010

1,040

0.2

972

1,290

RE-055 Castalia Jiyugaoka

Meguro Ward, Tokyo

April 1, 2010

1,200

0.2

1,157

1,400

RE-056 Castalia Mejiro

Toshima Ward, Tokyo

April 1, 2010

988

0.1

924

1,100

RE-057 Castalia Ikebukuro

Toshima Ward, Tokyo

April 1, 2010

2,570

0.4

2,426

2,950

RE-058 Castalia Kaname-cho

Toshima Ward, Tokyo

April 1, 2010

1,140

0.2

1,049

1,280

Castalia Tower Shinagawa
RE-059SeasideShinagawa Ward, Tokyo

April 1, 2010

7,380

1.1

6,725

9,130

RE-060 Castalia Yakumo

Meguro Ward, Tokyo

April 1, 2010

857

0.1

824

819

RE-061 Castalia Togoshiekimae

Shinagawa Ward, Tokyo

April 1, 2010

1,560

0.2

1,454

2,050
1,230

RE-062 Castalia Honjo Azumabashi

Sumida Ward, Tokyo

April 1, 2010

996

0.1

982

RE-063 Castalia Kitazawa

Setagaya Ward, Tokyo

April 1, 2010

742

0.1

757

849

Koto Ward, Tokyo

April 1, 2010

503

0.1

473

603

Residential RE-064 Castalia Monzennakachoproperties RE-065 Castalia Kamiikedai
RE-066 Castalia Morishita

Ota Ward, Tokyo

April 1, 2010

198

0.0

179

222

Koto Ward, Tokyo

April 1, 2010

832

0.1

792

1,050
864

RE-067 Castalia Wakabayashikoen

Setagaya Ward, Tokyo

April 1, 2010

776

0.1

740

RE-068 Castalia Asakusabashi

Taito Ward, Tokyo

April 1, 2010

792

0.1

728

984

RE-069 Castalia Iriya

Taito Ward, Tokyo

April 1, 2010

546

0.1

517

671

RE-070 Castalia Kita Ueno

Taito Ward, Tokyo

April 1, 2010

2,641

0.4

2,379

2,880

RE-071 Castalia Morishita II

Koto Ward, Tokyo

April 1, 2010

686

0.1

611

833

RE-072 Castalia Minowa

Taito Ward, Tokyo

April 1, 2010

1,430

0.2

1,288

1,580

RE-073 Castalia Oyamadai

Setagaya Ward, Tokyo

April 1, 2010

533

0.1

515

613

RE-074 Castalia Nakano

Nakano Ward, Tokyo

April 1, 2010

1,060

0.2

965

1,280

RE-075 Castalia Yoga

Setagaya Ward, Tokyo

April 1, 2010

923

0.1

864

1,170

RE-076 Castalia Sumiyoshi

Koto Ward, Tokyo

April 1, 2010

948

0.1

840

1,060

RE-077 Castalia Monzennakacho II

Koto Ward, Tokyo

April 1, 2010

2,160

0.3

1,974

2,760

RE-078 Castalia Oshiage

Sumida Ward, Tokyo

April 1, 2010

1,100

0.2

977

1,150

RE-079 Castalia Kuramae

Taito Ward, Tokyo

April 1, 2010

1,260

0.2

1,131

1,500

RE-080 Castalia Nakanobu

Shinagawa Ward, Tokyo

June 29, 2010

1,790

0.3

1,640

2,590

RE-081 Royal Parks Toyosu

Koto Ward, Tokyo

November 1, 2010

7,360

1.1

6,143

9,950

RE-082 Castalia Togoshi

Shinagawa Ward, Tokyo

November 1, 2010

1,770

0.3

1,580

2,520

RE-083 Castalia Ooimachi

Shinagawa Ward, Tokyo

June 30, 2011

1,181

0.2

1,147

1,540

RE-084 Castalia Omori

Ota Ward, Tokyo

August 2, 2011

1,500

0.2

1,412

1,810

RE-085 Castalia Mishuku

Setagaya Ward, Tokyo

October 7, 2011

1,900

0.3

1,830

2,320

RE-086 Castalia Arakawa

Arakawa Ward, Tokyo

March 28, 2012

1,660

0.2

1,583

2,190

RE-087 Castalia Omori II

Ota Ward, Tokyo

March 29, 2012

2,370

0.3

2,257

3,010

RE-088 Castalia Nakameguro

Meguro Ward, Tokyo

November 29, 2012

3,800

0.6

3,778

4,530

RE-089 Castalia Meguro Chojyamaru

Shinagawa Ward, Tokyo

September 27, 2013

2,030

0.3

1,996

2,400

RE-090 Castalia Meguro Takaban

Meguro Ward, Tokyo

September 27, 2013

1,750

0.3

1,744

1,900

RE-091 Castalia Omori III

Shinagawa Ward, Tokyo

September 27, 2013

1,520

0.2

1,469

1,740

RE-093 Castalia Meguro Tairamachi

Meguro Ward, Tokyo

September 26, 2014

1,165

0.2

1,201

1,320

RE-094 Royal Parks SEASIR

Adachi Ward, Tokyo

May 1, 2015

4,350

0.6

4,085

4,980

- 48 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Asset
class

Property
number(Note 1)

Property nameLocation(city or county, prefecture)

Acquisition
date(Note 2)Acquisition price(Note 3)
Price
(Millions ofyen)

Investment
ratio (%)
(Note 4)

Assessedvalue at theBook value
end of(Millions ofperiodyen)(Millions of(Note 5)yen)
(Note 6)

RE-095 Castalia Honkomagome

Bunkyo Ward, Tokyo

May 1, 2015

1,520

0.2

1,515

1,830

RE-096 Cosmo Heim Musashikosugi

Kawasaki City, Kanagawa

March 22, 2006

1,674

0.2

1,654

2,020

RE-097 Castalia Tsurumi

Yokohama City, Kanagawa

June 21, 2007

666

0.1

586

754

RE-098 Castalia Funabashi

Funabashi City, Chiba

April 1, 2010

704

0.1

694

794

RE-099 Castalia Nishi Funabashi

Funabashi City, Chiba

April 1, 2010

783

0.1

741

954
328

RE-105 Castalia Nogeyama

Yokohama City, Kanagawa

April 1, 2010

325

0.0

296

RE-106 Castalia Ichikawa

Ichikawa City, Chiba

April 1, 2010

461

0.1

404

549

RE-107 Royal Parks Hanakoganei

Kodaira City, Tokyo

October 7, 2011

5,300

0.8

4,791

6,280

RE-108 Castalia Musashikosugi

Kawasaki City, Kanagawa

September 27, 2013

1,680

0.2

1,641

1,890

RE-109 Royal Parks Wakabadai

Inagi City, Tokyo

March 28, 2014

4,360

0.6

3,895

4,790

Yokohama City, Kanagawa

May 1, 2015

9,100

1.3

8,444

10,900

RE-111 L-Place Shinkoyasu

Yokohama City, Kanagawa

May 1, 2015

1,720

0.3

1,699

2,110

RE-112 Royal Parks Musashikosugi

Kawasaki City, Kanagawa

May 1, 2015

1,060

0.2

991

1,310

RE-116 Castalia Sakaisuji Honmachi

Osaka City, Osaka

April 1, 2010

1,490

0.2

1,307

1,820

RE-110

Pacific Royal Court
Minatomirai Urban Tower

RE-117 Castalia Shin-Umeda

Osaka City, Osaka

April 1, 2010

1,376

0.2

1,211

1,590

RE-118 Castalia Abeno

Osaka City, Osaka

April 1, 2010

4,368

0.6

3,986

5,310

RE-119 Castalia Sakae

Nagoya City, Aichi

April 1, 2010

1,010

0.1

909

1,220

RE-121 Castalia Maruyama Urasando

Sapporo City, Hokkaido

April 1, 2010

411

0.1

361

508

Sapporo City, Hokkaido
Residential
Fukuoka City, Fukuoka
properties RE-123 Castalia Higashi Hie
RE-124 Castalia Tower Nagahoribashi Osaka City, Osaka

April 1, 2010

1,740

0.3

1,535

2,010

Castalia Maruyama
RE-122
Omotesando

April 1, 2010

960

0.1

837

1,050

April 1, 2010

3,400

0.5

2,933

4,620
1,500

RE-125 Castalia Sannomiya

Kobe City, Hyogo

April 1, 2010

1,230

0.2

1,066

RE-126 Castalia Kotodaikoen

Sendai City, Miyagi

April 1, 2010

481

0.1

413

558

RE-127 Castalia Ichibancho

Sendai City, Miyagi

April 1, 2010

783

0.1

690

938

RE-128 Castalia Omachi

Sendai City, Miyagi

April 1, 2010

656

0.1

603

820

RE-129 Castalia Uemachidai

Osaka City, Osaka

April 1, 2010

2,190

0.3

1,950

2,770

RE-130 Castalia Tower Higobashi

Osaka City, Osaka

April 1, 2010

2,670

0.4

2,369

3,590

RE-131 Big Tower Minami Sanjo

Sapporo City, Hokkaido

November 1, 2010

1,740

0.3

1,313

2,650

RE-132 Castalia Fushimi

Nagoya City, Aichi

January 14, 2011

2,260

0.3

1,958

3,110

RE-133 Castalia Meieki Minami

Nagoya City, Aichi

August 1, 2011

720

0.1

657

964

RE-134 Castalia Yakuin

Fukuoka City, Fukuoka

September 26, 2011

930

0.1

886

1,180

RE-135 Castalia Mibu

Kyoto City, Kyoto

December 22, 2011

1,193

0.2

1,100

1,490

RE-136 Castalia Tsutsujigaoka

Sendai City, Miyagi

September 3, 2012

1,208

0.2

1,179

1,750

RE-137 Castalia Ohori Bay Tower

Fukuoka City, Fukuoka

March 25, 2013

2,910

0.4

2,589

3,670

RE-138 Royal Parks Namba

Osaka City, Osaka

March 29, 2013

2,830

0.4

2,512

2,970

RE-139 Castalia Shigahondori

Nagoya City, Aichi

June 26, 2013

1,730

0.3

1,590

2,090

RE-140 Castalia Kyoto Nishioji

Kyoto City, Kyoto

November 2, 2015

973

0.1

1,006

1,080

RE-141 Castalia Ningyocho III

Chuo Ward, Tokyo

September 28, 2016

2,000

0.3

1,997

2,440

RE-142 Royal Parks Umejima

Adachi Ward, Tokyo

September 28, 2016

2,020

0.3

1,980

2,200

RE-143 Castalia Shinsakae II

Nagoya City, Aichi

April 11, 2017

1,800

0.3

1,841

1,960

246,42436.1

228,762

287,859

Total of 133 Residential properties
RM-001ACROSSMALL
Shinkamagaya

Kamagaya City, Chiba

September 1, 2016

7,770

1.1

7,511

8,340

RM-002 FOLEO Hirakata

Hirakata City, Osaka

September 1, 2016

4,580

0.7

4,503

4,670

RM-003 QiZ GATE URAWA

Saitama City, Saitama

September 1, 2016

4,270

0.6

4,233

4,330

RM-004 UNICUS Takasaki

Takasaki City, Gunma

September 1, 2016

3,000

0.4

2,947

3,110

Iruma District, Saitama

September 1, 2016

3,740

0.5

3,740

3,950

Aomori City, Aomori

September 1, 2016

8,100

1.2

7,931

8,510

Kitakyushu City, Fukuoka

August 29, 2017

1,600

0.2

1,617

1,900

Ome City, Tokyo

August 29, 2017

3,800

0.6

3,770

3,950

RM-005ACROSSPLAZA Miyoshi(Land)

Retail RM-006 DREAM TOWN ALi
properties RM-007 ASOBOX (Land)
RM-008 FOLEO Ome Imai
RM-009 FOLEO Otsu Ichiriyama

Otsu City, Shiga

April 3, 2018

8,100

1.2

8,105

8,450

RM-010 FOLEO Hakata

Fukuoka City, Fukuoka

April 3, 2018

3,200

0.5

3,203

3,680

RM-011ACROSSMALL Semboku(Land) (Note 8)

December 7, 2018

3,250

0.5

3,383

3,880

RR-001 LIFE Sagamihara Wakamatsu Sagamihara City, Kanagawa

Sakai City, Osaka

September 1, 2016

1,670

0.2

1,655

1,800

RR-002 FOLEO Sendai Miyanomori

September 1, 2016

6,960

1.0

6,858

7,380

Sendai City, Miyagi- 49 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Asset
class

Property
number(Note 1)

RR-003

Property nameACROSSPLAZA Inazawa(Land)

Sports Depo and GOLF5
RR-004
Kokurahigashi IC Store
RetailHiratsuka Retail Property
properties RR-005(Land)
RR-006

Royal Home Center
Morinomiya (Land)

RU-001 COMBOX310

Location(city or county, prefecture)

Acquisition
date(Note 2)

2,390

0.3

2,390

2,520

Kitakyushu City, Fukuoka

September 28, 2016

2,230

0.3

2,182

2,400

Hiratsuka City, Kanagawa

January 31, 2017

5,620

0.8

5,857

6,640

Osaka City, Osaka

March 27, 2018

4,500

0.7

4,541

5,220

Mito City, Ibaraki

December 7, 2018

HO-001

Daiwa Roynet Hotel
Yokohama Kannai

Yokohama City, Kanagawa

HO-002

Super Hotel JR Nara Station
Sanjo Street

Nara City, Nara

OT-001 Urban Living Inage

Chiba City, Chiba

OT-002 Aburatsubo Marina HILLS

Miura City, Kanagawa

Naha Shin-Toshin Center
OT-003 Building (Daiwa Roynet Hotel Naha City, Okinawa
Naha-Omoromachi)
OT-004 Sharp Hiroshima Building(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)Investment
ratio (%)
(Note 4)September 1, 2016

4,480

0.7

4,489

4,600

79,260

11.6

78,921

85,330April 3, 2018

4,800

0.7

4,803

4,940

December 6, 2018

1,470

0.2

1,476

1,490
6,430

Total of 2 Hotel properties

Other
assetsPrice(Millions ofyen)Assessedvalue at theBook value
end of(Millions ofperiodyen)(Millions of(Note 5)yen)
(Note 6)

Inazawa City, Aichi

Total of 18 Retail properties
Hotelproperties

Acquisition price(Note 3)Hiroshima City, Hiroshima

6,270

0.9

6,279

June 24, 2013

930

0.1

848

1,280

September 1, 2014

1,100

0.2

1,070

1,260

September 28, 2016

7,600

1.1

7,379

8,010

1,850

0.3

1,838

1,950

Total of 4 Other assets

April 11, 2017

11,4801.7

11,136

12,500

Portfolio Total of 216 Properties

683,443

100.0

660,496753,721“Property number” is assigned for each property according to the use categories; L represents logistics
properties, RE represents residential properties, R represents retail properties, HO represents hotel properties and
OT represents other properties, which are further classified into LB (Built-to-Suit (BTS) type), LM (multi-tenanttype), RR (roadside type), RM (mall type) and RU (urban type). The same shall apply hereinafter.
With regard to the properties acquired through past mergers, “Acquisition date” represents the effective date of
the merger.
“Acquisition price” represents the purchase price stipulated in the respective purchase agreements of assets heldby DHR (excluding expenses pertaining to acquisitions, settlement money such as taxes and public dues,
consumption taxes etc., or guarantee deposits on leased land, etc.). However, the acquisition prices of properties
previously owned by NCR have been presented as the appraisal values as of February 28, 2010, which were theprices received at the time of the merger with NCR, and the acquisition prices of properties previously owned by
the former DHR have been presented as the appraisal values as of August 31, 2016, the prices received at thetime of the merger with the former DHR. “Total acquisition price” is rounded to the nearest million yen.
“Investment ratio” represents the percentage of the acquisition price for each property to the total acquisition
price of assets held, which is rounded to the nearest tenth.
“Book value” represents the amount recorded on the balance sheets as of February 28, 2019, which is rounded
down to the nearest million yen.
“Assessed value at the end of period” is the appraisal value as of February 28, 2019 provided by real estateappraisers (Daiwa Real Estate Appraisal Co., Ltd., Chuo Real Estate Appraisal Co., Ltd., The Tanizawa Sōgō
Appraisal Co., Ltd., Japan Real Estate Institute and JLL Morii Valuation & Advisory K.K.) in accordance with
the Articles of Incorporation of DHR as well as “Regulations on Accounting of Investment Corporations”(Cabinet Office Order No. 47 of 2006, as amended). The amounts are rounded down to the nearest million yen.
Regarding “D Project Inuyama,” DHR made an additional acquisition on April 10, 2018 (acquisition price¥2,100 million). The “acquisition price” represents the total price for the existing building and additionallyacquired building, and the “acquisition date” represents the acquisition date for the existing building.
On April 1, 2019, CROSS MALL (Land) has changed its name to ACROSSMALL Semboku (Land). The same
shall apply hereinafter.

- 50 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

B. The leasable area, leased area, occupancy rate, number of tenants and annual rent of real estate orreal estate in trust held by DHR as of February 28, 2019 are as follows:
Property
number

Property nameLocation(city or county, prefecture)

Leasablearea(m2)(Note 1)

Leasedarea(m2)(Note 2)

Occupancy rate(%)
(Note 3)

Number oftenants(Note 4)

Annual rent
(excluding
consumptiontax) (Millionsof yen)(Note 5)

LB-001 D Project Machida

Machida City, Tokyo

50,490.39

50,490.39

100.0

1

(Note 6)

LB-002 D Project Hachioji

Hachioji City, Tokyo

62,394.17

62,394.17

100.0

2

(Note 6)

LB-003 D Project Aikawa-Machi

Aiko District, Kanagawa

14,240.84

14,240.84

100.0

1

(Note 6)

LB-004 D Project Shin-Misato

Misato City, Saitama

11,289.91

11,289.91

100.0

1

(Note 6)

LB-005 D Project Urayasu I

Urayasu City, Chiba

36,515.81

36,515.81

100.0

1

(Note 6)

LB-006 D Project Urayasu II

Urayasu City, Chiba

72,320.01

72,320.01

100.0

1

(Note 6)

LB-007 D Project Akanehama

Narashino City, Chiba

11,663.39

11,663.39

100.0

1

(Note 6)

LB-008 D Project Noda

Noda City, Chiba

29,232.53

29,232.53

100.0

1

(Note 6)

LB-009 D Project Inuyama

Inuyama City, Aichi

54,197.80

54,197.80

100.0

1

(Note 6)

LB-010 D Project Gifu

Anpachi District, Gifu

7,669.91

7,669.91

100.0

1(Note 6)

LB-011 D Project Neyagawa

Neyagawa City, Osaka

11,151.51

11,151.51

100.0

1

(Note 6)

LB-012 D Project Sapporo Minami

Kitahiroshima City, Hokkaido

6,749.10

6,749.10100.01(Note 6)

LB-013 D Project Morioka

Takizawa City, Iwate

9,558.32

9,558.32

100.0

1(Note 6)

LB-014 D Project Sendai Minami

Iwanuma City, Miyagi

11,052.27

11,052.27

100.0

1

(Note 6)

LB-015 D Project Tsuchiura

Tsuchiura City, Ibaraki

17,448.86

17,448.86

100.0

1

(Note 6)

LB-016 D Project Gotenba

Gotenba City, Shizuoka

6,737.53

6,737.53

100.0

1(Note 6)

LB-017 D Project Nishi-Hiroshima

Hiroshima City, Hiroshima

5,093.51

5,093.51100.0

2(Note 6)

LB-018 D Project Fukuoka Umi

Kasuya District, Fukuoka

24,729.56

24,729.56

100.0

4

253

LB-019 D Project Tosu

Tosu City, Saga

17,858.01

17,858.01

100.0

1

(Note 6)

LB-020 D Project Kuki I

Kuki City, Saitama

22,708.72

22,708.72

100.0

1

(Note 6)

LB-021 D Project Kuki II

Kuki City, Saitama

50,490.00

50,490.00

100.0

1

(Note 6)

LB-022 D Project Kawagoe I

Kawagoe City, Saitama

16,150.88

16,150.88

100.0

1

205

LB-023 D Project Kawagoe II

Kawagoe City, Saitama

19,872.00

19,872.00

100.0

1

281

LB-024 DPL Inuyama

Inuyama City, Aichi

21,628.50

21,628.50

100.0

1

(Note 6)

LB-025 D Project Fukuoka Hakozaki

Fukuoka City, Fukuoka

34,710.80

34,710.80

100.0

1

(Note 6)

LB-026 D Project Kuki III

Kuki City, Saitama

26,937.41

26,937.41

100.0

1

(Note 6)

LB-027 D Project Kuki IV

Kuki City, Saitama

26,460.00

26,460.00

100.0

1

(Note 6)

LB-028 D Project Kuki V

Kuki City, Saitama

47,320.89

47,320.89

100.0

1

(Note 6)

LB-029 D Project Kuki VI

Kuki City, Saitama

29,244.66

29,244.66

100.0

1

(Note 6)

LB-030 D Project Yashio

Yashio City, Saitama

21,965.04

21,965.04

100.0

2

(Note 6)

LB-031 D Project Nishiyodogawa

Osaka City, Osaka

39,584.80

39,584.80

100.0

1

(Note 6)

LB-032 D Project Matsudo

Matsudo City, Chiba

26,776.67

26,776.67

100.0

1

(Note 6)

LB-033 D Project Hibiki Nada

Kitakyushu City, Fukuoka

23,933.75

23,933.75

100.0

1

(Note 6)

LB-034 D Project Morioka II

Takizawa City, Iwate

4,481.00

4,481.00

100.0

1(Note 6)

LB-035 D Project Kawagoe III

Kawagoe City, Saitama

39,572.32

39,572.32

100.0

1

(Note 6)

LB-036 D Project Kazo

Kazo City, Saitama

18,371.10

18,371.10

100.0

1

(Note 6)

LB-037 D Project Urayasu III

Urayasu City, Chiba

39,441.32

39,441.32

100.0

1

(Note 6)

LB-038 D Project Tomisato

Tomisato City, Chiba

36,113.25

36,113.25

100.0

1

(Note 6)

LB-039 D Project Kyotanabe

Kyotanabe City, Kyoto

10,965.68

10,965.68

100.0

1

(Note 6)

LB-040 D Project Sendai Izumi

Sendai City, Miyagi

10,764.05

10,764.05

100.0

1

(Note 6)

LB-041 D Project Oyama

Oyama City, Tochigi

14,106.91

14,106.91

100.0

1

(Note 6)

LB-042 D Project Sano

Sano City, Tochigi

15,668.44

15,668.44

100.0

1

(Note 6)

LB-043 D Project Tatebayashi

Tatebayashi City, Gunma

13,521.56

13,521.56

100.0

1

(Note 6)

LB-044 D Project Kakegawa

Kakegawa City, Shizuoka

39,341.44

39,341.44

100.0

1

(Note 6)

LB-045 D Project Hiroshima Seifu

Hiroshima City, Hiroshima

19,004.72

19,004.72

100.0

1

(Note 6)

LB-046 D Project Tosu II

Tosu City, Saga

13,012.50

13,012.50

100.0

1

(Note 6)

LB-047 D Project Kawagoe IV

Kawagoe City, Saitama

24,684.47

24,684.47

100.0

1

320

LB-048 D Project Kuki VII

Kuki City, Saitama

3,225.46

3,225.46

100.0

1(Note 6)

LB-049 D Project Chibakita

Chiba City, Chiba

24,368.86

24,368.86

100.0

1

(Note 6)

LB-050 D Project Matsudo II

Matsudo City, Chiba

25,305.82

25,305.82

100.0

1

(Note 6)

LB-051 D Project Tomisato II

Tomisato City, Chiba

40,870.56

40,870.56

100.0

1

(Note 6)

LB-052 D Project Osaka Hirabayashi

Osaka City, Osaka

22,485.08

22,485.08

100.0

1

(Note 6)

LB-053 D Project Sendai Izumi II

Sendai City, Miyagi

39,580.46

39,580.46

100.0

1

(Note 6)

- 51 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameLocation(city or county, prefecture)

Leasablearea(m2)(Note 1)

Leasedarea(m2)(Note 2)

Occupancy rate(%)
(Note 3)

Number oftenants(Note 4)

Annual rent
(excluding
consumptiontax) (Millionsof yen)(Note 5)

LB-054 D Project Kaminokawa

Kawachi District, Tochigi

52,239.75

52,239.75

100.0

1

(Note 6)

LB-055 D Project Fuji

Fuji City, Shizuoka

23,795.40

23,795.40

100.0

1

(Note 6)

LB-056 D Project Tosu III

Tosu City, Saga

65,215.07

65,215.07

100.0

1

(Note 6)LM-001 DPL Misato

Misato City, Saitama

55,864.47

55,864.47

100.0

1

(Note 6)LM-002 DPL Fukuoka Kasuya

Kasuya District, Fukuoka

73,739.04

73,739.04

100.0

1

(Note 6)LM-003 DPL Kitakyushu

Kitakyushu City, Fukuoka

26,672.98

26,672.98

100.0

1

(Note 6)
19,756

Total of 59 Logistics properties

1,620,589.26

1,620,589.26

100.0

65

Shibuya Ward, Tokyo

5,230.39

5,199.79

99.4

1

430

RE-002 Castalia Azabujuban Shichimenzaka Minato Ward, Tokyo

3,492.93

3,336.03

95.5

1

219

RE-001 Qiz Ebisu
RE-003 Castalia Shibakoen

Minato Ward, Tokyo

2,707.51

2,676.97

98.9

1

135

RE-004 Castalia Ginza

Chuo Ward, Tokyo

2,226.42

2,129.02

95.6

1

122

RE-005 Castalia Hiroo

Minato Ward, Tokyo

1,621.59

1,621.59

100.0

1

99

RE-006 Castalia Nihonbashi

Chuo Ward, Tokyo

1,458.73

1,409.16

96.6

1

72

RE-007 Castalia Hacchobori

Chuo Ward, Tokyo

2,969.57

2,827.66

95.2

1

125

RE-008 Castalia Azabujuban

Minato Ward, Tokyo

2,400.00

2,400.00

100.0

1

144

RE-009 Castalia Azabujuban II

Minato Ward, Tokyo

2,094.58

1,993.89

95.2

1

126

RE-010 Castalia Shinjuku Natsumezaka

Shinjuku Ward, Tokyo

1,917.62

1,917.62

100.0

1

93

RE-011 Castalia Ginza II

Chuo Ward, Tokyo

1,817.56

1,698.92

93.5

1

94

RE-012 Castalia Shibuya Sakuragaoka

Shibuya Ward, Tokyo

1,123.80

1,123.80

100.0

1

68

RE-013 Castalia Nishi Azabu Kasumicho

Minato Ward, Tokyo

2,779.77

2,779.77

100.0

1

141

RE-014 Castalia Ochanomizu

Chiyoda Ward, Tokyo

2,559.21

2,559.21

100.0

1

116

RE-015 Castalia Sangubashi

Shibuya Ward, Tokyo

1,898.47

1,898.47

100.0

1

81

RE-016 Castalia Suitengu

Chuo Ward, Tokyo

1,940.94

1,940.94

100.0

1

89

RE-017 Castalia Suitengu II

Chuo Ward, Tokyo

1,858.34

1,858.34

100.0

1

80

RE-018 Castalia Shintomicho

Chuo Ward, Tokyo

1,444.52

1,396.45

96.7

1

63

RE-019 Castalia Shintomicho II

Chuo Ward, Tokyo

1,244.54

1,244.54

100.0

1

56

RE-020 Castalia Harajuku

Shibuya Ward, Tokyo

1,225.26

1,225.26

100.0

1

52

RE-021 Castalia Yoyogi Uehara

Shibuya Ward, Tokyo

811.95811.95

100.0

1

44

RE-022 Castalia Sendagaya

Shibuya Ward, Tokyo

803.03803.03

100.0

1

39

RE-023 Castalia Shinjuku 7 chome

Shinjuku Ward, Tokyo

957.60957.60

100.0

1

37

RE-024 Castalia Ningyocho

Chuo Ward, Tokyo

1,747.90

1,706.95

97.7

1

70

RE-025 Castalia Ningyocho II

Chuo Ward, Tokyo

1,826.80

1,826.80

100.0

1

79

RE-026 Castalia Shin-Ochanomizu

Chiyoda Ward, Tokyo

1,308.38

1,308.38

100.0

1

64

RE-027 Castalia Higashi Nihonbashi II

Chuo Ward, Tokyo

2,117.46

2,117.46

100.0

1

98

RE-028 Castalia Jinbocho

Chiyoda Ward, Tokyo

1,628.80

1,628.80

100.0

1

83

RE-029 Castalia Shintomicho III

Chuo Ward, Tokyo

972.51950.05

97.7

1

47

RE-030 Castalia Shinjuku Gyoen

Shinjuku Ward, Tokyo

3,594.16

3,594.16

100.0

1

163

RE-031 Castalia Takanawadai

Minato Ward, Tokyo

1,147.44

1,147.44

100.0

1

58

RE-032 Castalia Higashi Nihonbashi III

Chuo Ward, Tokyo

1,105.20

1,105.20

100.0

1

48

RE-033 Castalia Shinjuku Gyoen II

Shinjuku Ward, Tokyo

668.79668.79

100.0

1

32

RE-034 Castalia Shintomicho IV

Chuo Ward, Tokyo

681.00647.00

95.0

1

30

RE-035 Castalia Takanawadai II

Minato Ward, Tokyo

1,567.84

1,567.84

100.0

1

77

RE-036 Castalia Minami Azabu

Minato Ward, Tokyo

882.67882.67

100.0

1

42

RE-037 Castalia Ginza III

Chuo Ward, Tokyo

3,494.42

3,448.47

98.7

1

167

RE-038 Castalia Kayabacho

Chuo Ward, Tokyo

4,602.95

4,550.25

98.9

1

185

RE-039 Castalia Takanawa

Minato Ward, Tokyo

10,408.26

10,153.84

97.6

1

463

RE-040 Castalia Higashi Nihonbashi

Chuo Ward, Tokyo

6,442.28

6,442.28

100.0

1

268

RE-041 Castalia Shinjuku

Shinjuku Ward, Tokyo

3,150.80

3,150.80

100.0

1

179

RE-042 Castalia Ichigaya

Shinjuku Ward, Tokyo

1,546.34

1,546.34

100.0

1

81

RE-043 Shibaura Island Bloom Tower

Minato Ward, Tokyo

16,849.50

16,577.64

98.4

2

740

RE-044 Castalia Hatsudai

Shibuya Ward, Tokyo

3,077.05

2,992.16

97.2

1

134

RE-045 Castalia Hatsudai II

Shibuya Ward, Tokyo

2,339.42

2,339.42

100.0

1

117

RE-046 Castalia Ebisu

Shibuya Ward, Tokyo

1,659.71

1,659.71

100.0

1

86

RE-047 Castalia Meguro Kamurozaka

Shinagawa Ward, Tokyo

4,967.97

4,693.24

94.5

1

239

RE-048 Castalia Toritsudaigaku

Meguro Ward, Tokyo

863.70837.26

96.9

1

38

RE-049 Castalia Yukigaya

Ota Ward, Tokyo

1,542.30

1,516.99

98.4

1

68

RE-050 Castalia Yutenji

Meguro Ward, Tokyo

1,380.35

1,380.35

100.0

1

73

- 52 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameLocation(city or county, prefecture)

Leasablearea(m2)(Note 1)

Leasedarea(m2)(Note 2)

Occupancy rate(%)
(Note 3)

Number oftenants(Note 4)

Annual rent
(excluding
consumptiontax) (Millionsof yen)(Note 5)RE-051 Castalia Otsuka

Toshima Ward, Tokyo

1,871.70

1,788.00

95.5

1

88

RE-052 Castalia Kikukawa

Sumida Ward, Tokyo

1,168.18

1,168.18

100.0

1

53

RE-053 Castalia Meguro

Meguro Ward, Tokyo

1,414.73

1,355.18

95.8

1

59

RE-054 Castalia Otsuka II

Toshima Ward, Tokyo

1,784.50

1,743.99

97.7

1

72

RE-055 Castalia Jiyugaoka

Meguro Ward, Tokyo

1,472.47

1,399.11

95.0

1

73

RE-056 Castalia Mejiro

Toshima Ward, Tokyo

1,658.90

1,658.90

100.0

1

66

RE-057 Castalia Ikebukuro

Toshima Ward, Tokyo

3,644.35

3,644.35

100.0

1

168

RE-058 Castalia Kaname-cho

Toshima Ward, Tokyo

1,624.06

1,601.76

98.6

1

76

RE-059 Castalia Tower Shinagawa Seaside

Shinagawa Ward, Tokyo

12,732.35

12,416.53

97.5

1

519

RE-060 Castalia Yakumo

Meguro Ward, Tokyo

1,276.91

1,276.91

100.0

1

50

RE-061 Castalia Togoshiekimae

Shinagawa Ward, Tokyo

2,014.12

2,014.12

100.0

1

100
69

RE-062 Castalia Honjo Azumabashi

Sumida Ward, Tokyo

2,255.88

2,127.80

94.3

1

RE-063 Castalia Kitazawa

Setagaya Ward, Tokyo

1,220.16

1,137.94

93.3

1

47

RE-064 Castalia Monzennakacho

Koto Ward, Tokyo

887.94887.94

100.0

1

34

RE-065 Castalia Kamiikedai

Ota Ward, Tokyo

414.45414.45

100.0

1

15

RE-066 Castalia Morishita

Koto Ward, Tokyo

1,383.90

1,383.90

100.0

1

63

RE-067 Castalia Wakabayashikoen

Setagaya Ward, Tokyo

1,425.43

1,425.43

100.0

1

53

RE-068 Castalia Asakusabashi

Taito Ward, Tokyo

1,537.84

1,456.69

94.7

1

60

RE-069 Castalia Iriya

Taito Ward, Tokyo

1,415.15

1,415.15

100.0

1

46

RE-070 Castalia Kita Ueno

Taito Ward, Tokyo

4,197.66

4,130.63

98.4

1

169

RE-071 Castalia Morishita II

Koto Ward, Tokyo

1,275.60

1,275.60

100.0

1

55

RE-072 Castalia Minowa

Taito Ward, Tokyo

2,406.41

2,356.17

97.9

1

97

RE-073 Castalia Oyamadai

Setagaya Ward, Tokyo

857.32807.30

94.2

1

34

RE-074 Castalia Nakano

Nakano Ward, Tokyo

1,613.86

1,613.86

100.0

1

71

RE-075 Castalia Yoga

Setagaya Ward, Tokyo

1,472.38

1,430.60

97.2

1

63

RE-076 Castalia Sumiyoshi

Koto Ward, Tokyo

1,362.60

1,336.99

98.1

1

63

RE-077 Castalia Monzennakacho II

Koto Ward, Tokyo

3,038.98

3,038.98

100.0

1

136

RE-078 Castalia Oshiage

Sumida Ward, Tokyo

1,785.24

1,785.24

100.0

1

71

RE-079 Castalia Kuramae

Taito Ward, Tokyo

1,994.93

1,994.93

100.0

1

86

RE-080 Castalia Nakanobu

Shinagawa Ward, Tokyo

2,421.82

2,231.37

92.1

1

126

RE-081 Royal Parks Toyosu

Koto Ward, Tokyo

18,112.03

18,112.03

100.0

1

636

RE-082 Castalia Togoshi

Shinagawa Ward, Tokyo

2,629.59

2,606.44

99.1

1

148

RE-083 Castalia Ooimachi

Shinagawa Ward, Tokyo

1,413.75

1,413.75

100.0

1

78

RE-084 Castalia Omori

Ota Ward, Tokyo

2,046.36

1,979.92

96.8

1

98

RE-085 Castalia Mishuku

Setagaya Ward, Tokyo

2,640.86

2,502.40

94.8

1

128

RE-086 Castalia Arakawa

Arakawa Ward, Tokyo

3,797.92

3,674.68

96.8

1

125

RE-087 Castalia Omori II

Ota Ward, Tokyo

2,818.70

2,756.64

97.8

1

152

RE-088 Castalia Nakameguro

Meguro Ward, Tokyo

3,166.71

3,117.30

98.4

1

222

RE-089 Castalia Meguro Chojyamaru

Shinagawa Ward, Tokyo

2,123.77

2,098.94

98.8

1

125
99

RE-090 Castalia Meguro Takaban

Meguro Ward, Tokyo

1,961.52

1,898.54

96.8

1

RE-091 Castalia Omori III

Shinagawa Ward, Tokyo

2,004.80

1,979.52

98.7

1

95

RE-093 Castalia Meguro Tairamachi

Meguro Ward, Tokyo

1,278.52

1,217.62

95.2

1

62

RE-094 Royal Parks SEASIR

Adachi Ward, Tokyo

17,269.74

17,269.74

100.0

1

454

RE-095 Castalia Honkomagome

Bunkyo Ward, Tokyo

2,224.41

2,224.41

100.0

1

101

RE-096 Cosmo Heim Musashikosugi

Kawasaki City, Kanagawa

4,208.83

4,208.83

100.0

1

111

RE-097 Castalia Tsurumi

Yokohama City, Kanagawa

1,452.09

1,408.95

97.0

1

50

RE-098 Castalia Funabashi

Funabashi City, Chiba

1,552.01

1,482.41

95.5

1

56

RE-099 Castalia Nishi Funabashi

Funabashi City, Chiba

1,597.32

1,597.32

100.0

1

65

RE-105 Castalia Nogeyama

Yokohama City, Kanagawa

744.90744.90

100.0

1

27

RE-106 Castalia Ichikawa

Ichikawa City, Chiba

876.89876.89

100.0

1

39

RE-107 Royal Parks Hanakoganei

Kodaira City, Tokyo

18,153.57

18,153.57

100.0

1

458

RE-108 Castalia Musashikosugi

Kawasaki City, Kanagawa

2,179.80

2,179.80

100.0

1

110

RE-109 Royal Parks Wakabadai

Inagi City, Tokyo

21,367.93

21,367.93

100.0

2

488

RE-110

Pacific Royal Court Minatomirai
Urban Tower

Yokohama City, Kanagawa

26,294.49

26,294.49

100.0

1

983

RE-111 L-Place Shinkoyasu

Yokohama City, Kanagawa

3,009.74

3,009.74

100.0

1

111

RE-112 Royal Parks Musashikosugi

Kawasaki City, Kanagawa

3,808.97

3,808.97

100.0

1

129

RE-116 Castalia Sakaisuji Honmachi

Osaka City, Osaka

3,471.39

3,361.03

96.8

1

117

- 53 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameLocation(city or county, prefecture)

Leasablearea(m2)(Note 1)

Leasedarea(m2)(Note 2)

Occupancy rate(%)
(Note 3)

Number oftenants(Note 4)

Annual rent
(excluding
consumptiontax) (Millionsof yen)(Note 5)

RE-117 Castalia Shin-Umeda

Osaka City, Osaka

3,279.90

3,141.93

95.8

1

104

RE-118 Castalia Abeno

Osaka City, Osaka

10,920.75

10,920.75

100.0

1

336

RE-119 Castalia Sakae

Nagoya City, Aichi

2,836.00

2,734.08

96.4

1

84

RE-121 Castalia Maruyama Urasando

Sapporo City, Hokkaido

1,522.89

1,452.09

95.4

1

37

RE-122 Castalia Maruyama Omotesando

Sapporo City, Hokkaido

6,100.31

5,530.19

90.7

1

132

RE-123 Castalia Higashi Hie

Fukuoka City, Fukuoka

3,061.60

2,962.40

96.8

1

81

RE-124 Castalia Tower Nagahoribashi

Osaka City, Osaka

8,747.40

8,587.79

98.2

1

309

RE-125 Castalia Sannomiya

Kobe City, Hyogo

3,071.60

3,044.89

99.1

1

104

RE-126 Castalia Kotodaikoen

Sendai City, Miyagi

1,684.10

1,644.08

97.6

1

45

RE-127 Castalia Ichibancho

Sendai City, Miyagi

2,800.32

2,800.32

100.0

1

73

RE-128 Castalia Omachi

Sendai City, Miyagi

2,149.08

2,089.61

97.2

1

62

RE-129 Castalia Uemachidai

Osaka City, Osaka

5,415.39

5,340.82

98.6

1

165

RE-130 Castalia Tower Higobashi

Osaka City, Osaka

6,230.20

5,953.53

95.6

1

244

RE-131 Big Tower Minami Sanjo

Sapporo City, Hokkaido

8,661.19

8,196.44

94.6

1

195

RE-132 Castalia Fushimi

Nagoya City, Aichi

7,022.69

6,779.41

96.5

1

199

RE-133 Castalia Meieki Minami

Nagoya City, Aichi

1,822.10

1,748.15

95.9

1

59

RE-134 Castalia Yakuin

Fukuoka City, Fukuoka

2,784.83

2,761.59

99.2

1

80

RE-135 Castalia Mibu

Kyoto City, Kyoto

2,828.39

2,724.71

96.3

1

87

RE-136 Castalia Tsutsujigaoka

Sendai City, Miyagi

4,471.11

4,426.51

99.0

1

109

RE-137 Castalia Ohori Bay Tower

Fukuoka City, Fukuoka

11,089.75

5,742.29

51.8

1

151

RE-138 Royal Parks Namba

Osaka City, Osaka

10,354.15

10,354.15

100.0

1

256

RE-139 Castalia Shigahondori

Nagoya City, Aichi

5,086.69

4,943.68

97.2

1

140

RE-140 Castalia Kyoto Nishioji

Kyoto City, Kyoto

2,035.37

2,035.37

100.0

1

64

RE-141 Castalia Ningyocho III

Chuo Ward, Tokyo

2,897.06

2,897.06

100.0

1

134
191

RE-142 Royal Parks Umejima

Adachi Ward, Tokyo

6,828.78

6,828.78

100.0

1RE-143 Castalia Shinsakae II

Nagoya City, Aichi

4,425.46

4,425.46

100.0

1

114

472,121.87

459,981.14

97.4

135

17,820Total of 133 Residential properties
RM-001 ACROSSMALL Shinkamagaya

Kamagaya City, Chiba

41,742.84

41,742.84

100.0

1

551

RM-002 FOLEO Hirakata

Hirakata City, Osaka

16,390.96

15,207.55

92.8

1

346

RM-003 QiZ GATE URAWA

Saitama City, Saitama

9,720.49

9,720.49

100.0

11

334

RM-004 UNICUS Takasaki

Takasaki City, Gunma

9,277.08

9,277.08

100.0

1

259

RM-005 ACROSSPLAZA Miyoshi (Land)

Iruma District, Saitama

24,018.00

24,018.00

100.0

1

188

RM-006 DREAM TOWN ALi

Aomori City, Aomori

22,196.81

22,196.81

100.0

1

590

RM-007 ASOBOX (Land)

Kitakyushu City, Fukuoka

11,207.90

11,207.90

100.0

1

94

RM-008 FOLEO Ome ImaiOme City, Tokyo

8,637.91

8,637.91

100.0

1

257

RM-009 FOLEO Otsu Ichiriyama

Otsu City, Shiga

62,917.73

62,917.73

100.0

1

643

RM-010 FOLEO Hakata

Fukuoka City, Fukuoka

23,230.77(Note 7)

23,230.77(Note 7)

100.0

1

252

RM-011 ACROSSMALL Semboku (Land)

Sakai City, Osaka

30,824.72

30,824.72

100.0

1

181

RR-001 LIFE Sagamihara Wakamatsu

Sagamihara City, Kanagawa

2,973.44

2,973.44100.01(Note 6)

RR-002 FOLEO Sendai Miyanomori

Sendai City, Miyagi

19,845.72

19,845.72

100.0

1

477

RR-003 ACROSSPLAZA Inazawa (Land)

Inazawa City, Aichi

31,981.70

31,981.70

100.0

1

139

Sports Depo and GOLF5
RR-004
Kokurahigashi IC Store

Kitakyushu City, Fukuoka

8,899.89

8,899.89

100.0

1(Note 6)

RR-005 Hiratsuka Retail Property (Land)

Hiratsuka City, Kanagawa

28,002.92

28,002.92

100.0

1

(Note 6)

Royal Home Center Morinomiya
RR-006(Land)

Osaka City, Osaka

6,669.74

6,669.74

100.0

1

206

RU-001 COMBOX310

Mito City, Ibaraki
Total of 18 Retail properties

30,517.69

30,517.69

100.0

1

297

389,056.31

387,872.90

99.7

28

5,349

HO-001

Daiwa Roynet Hotel Yokohama
Kannai

Yokohama City, Kanagawa

7,932.37

7,932.37

100.0

1

262

HO-002

Super Hotel JR Nara Station Sanjo
StreetNara City, Nara

2,637.18

2,637.18

100.0

1

75

10,569.55

10,569.55

100.0

2

337

OT-001 Urban Living Inage

Total of 2 Hotel properties
Chiba City, Chiba

4,177.52

4,177.52

100.0

1

87

OT-002 Aburatsubo Marina HILLS

Miura City, Kanagawa

3,901.14

3,901.14

100.0

1

78

Naha Shin-Toshin Center Building
OT-003 (Daiwa Roynet Hotel NahaOmoromachi)

Naha City, Okinawa

13,480.00

13,480.00

100.0

1

543

- 54 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property name

OT-004 Sharp Hiroshima Building(Note 1)

(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

Location(city or county, prefecture)

Leasedarea(m2)(Note 2)

Leasablearea(m2)(Note 1)Hiroshima City, Hiroshima

Occupancy rate(%)
(Note 3)

Number oftenants(Note 4)

Annual rent
(excluding
consumptiontax) (Millionsof yen)(Note 5)(Note 6)

3,064.89

3,064.89

100.0

1

Total of 4 Other assets

24,623.55

24,623.55

100.0

4

825

Portfolio Total of 216 Properties

2,516,960.54

2,503,636.40

99.5

234

44,089“Leasable area” means the leasable area of the building (or land in the case of land properties) in relation to eachreal estate or each real estate in trust which DHR believes is leasable as indicated in the relevant lease agreement
or drawing of the building in relation to each real estate or each real estate in trust as of February 28, 2019. In thecases of each co-owned real estate or quasi co-owned trust beneficiary interests, the leasable area of the entire
real estate multiplied by the ratio of co-ownership of the real estate or quasi co-ownership of the trust beneficiaryinterests in real estate held by DHR is provided.
“Leased area” represents the leased area in the leasable area as indicated in the lease agreement in relation toeach real estate or each real estate in trust as of February 28, 2019. However, in the case of a pass-through typemaster lease agreement entered into with the master lease company, the leased area to end-tenants, as indicatedin the sublease agreement for each real estate or each real estate in trust as of February 28, 2019, is provided. As
some lease agreements for each real estate or each real estate in trust may indicate leased area that includes
portions not included in the gross floor area, the leased area may exceed the gross floor area. In particular at
logistics properties, when eaves are included in the leased area, the leased area may significantly exceed thegross floor area. In the cases of each co-owned real estate or quasi co-owned trust beneficiary interests, theleased area of the entire real estate multiplied by the ratio of co-ownership of the real estate or quasi coownership of the trust beneficiary interests in real estate held by DHR is provided.
“Occupancy rate” represents the percentage of leased area to the leasable area of each real estate or each realestate in trust as of February 28, 2019, which is rounded to the nearest tenth.
“Number of tenants” is equal to the number of tenants per property based upon the lease agreement in relation toeach real estate or each real estate in trust as of February 28, 2019. However, the number of tenants is indicatedas 1 (one) in the case of a property subject to a master lease agreement with the master lease company.
“Annual rent” represents the amount calculated by multiplying the monthly rent as indicated in the leaseagreement in relation to each real estate or each real estate in trust as of February 28, 2019 by 12 (as to realestate in trust for which multiple lease agreements are entered into, the total amount indicated in such leaseagreements). Annual rent for residential properties includes common area charges. However, in the case of apass-through type master lease agreement entered into with the master lease company, the annual rent represents
the amount calculated by multiplying the monthly rent indicated in each sublease agreement entered into
between the master lease company and end-tenants for each real estate or each real estate in trust as of February
28, 2019 by 12 (as to real estate or each real estate in trust for which multiple sublease agreements are enteredinto, the total amount indicated in such sublease agreements). For revenue-based rent, a monthly amount linked
to sales in February 2019 is used. Therefore, the sums of the “Annual rent” of each property may not add up to
the total for the portfolio. Furthermore, in the cases of each co-owned real estate or quasi co-owned trust
beneficiary interests, the annual rent of the entire real estate multiplied by the ratio of co-ownership of the realestate or quasi co-ownership of the trust beneficiary interests in real estate held by DHR is provided.
Undisclosed as consent for disclosure has not been obtained from the lessee.
Separately from the building of this property, a part of the land of this property is leased to the lessee for the
purpose of subleasing to Fukuoka Prefecture and other third parties as land for a police station, etc. The area ofsuch leased land is not included in the leasable area and leased area.

iv) Status of revenues from real estate and real estate in trust
The status of revenues from each real estate and each real estate in trust including rental revenues is asfollows.
Figures related to revenues are calculated in accordance with the following:Amounts are presented in thousands of yen and rounded down to the nearest thousand yen. Therefore,
the sum of figures shown in the tables may not necessarily be equal to the total amount.



Rental revenues include rent and common area charges.



Other rental revenues include revenues from parking lot usage fees, signboard usage fees, utilities
expenses, vending machines, key money, renewal commissions, restoration and early termination
penalty.



In principle, property taxes and city planning taxes, which are included in taxes and public dues, areimposed on the owner as of January 1 of each year. The amount of adjustment equivalent to prepaid
property taxes and city planning taxes with the former owner (prior beneficiary) at the acquisition are- 55 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

included in the acquisition cost of real estate, etc. as part of incidental expenses, and are not recorded
in rental expenses.


Outsourcing expenses include management outsourcing expenses, PM fee, leasing fee and renewal
commissions.



Repairs and maintenance expenses include repairs and restoration costs.



Since repairs and maintenance expenses, and capital expenditures significantly fluctuate from year toyear and do not arise regularly, the repairs and maintenance expenses and capital expenditures in thefiscal period may differ substantially from the amount of such expenses and capital expenditures
incurred when DHR continues to hold the acquired asset for a long term.

Insurance represents the amount calculated based on premiums paid in relation to the relevant term.



Other rental expenses include custodian fees and parking lot usage fees.

Depreciation represents the amount in relation to the number of months in the disclosure period.

Leasehold and security deposits, etc. represents the total amount of outstanding leasehold and security
deposit as indicated in the lease agreement in relation to each real estate or each real estate in trust (asto real estate or real estate in trust for which multiple lease agreements are entered into, the total
amount indicated in such lease agreements). However, in the case of a pass-through type master leaseagreement entered into with the master lease company, the total scheduled outstanding amount ofleasehold and security deposit, as indicated in each sublease agreement entered into between themaster lease company and end-tenants in relation to each real estate or each real estate in trust as ofFebruary 28, 2019 (as to real estate or real estate in trust for which multiple sublease agreements areentered into, the total amount indicated in such sublease agreements), is provided. When there are
portions that do not need to be repaid due to special agreements concerning non-refundable deposits
or written-off deposits, the amount represents the amount after subtracting these deductions.

- 56 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Status of revenues from real estate and real estate in trust
Property number
Property name
Period for asset management

LB-001(Unit: Thousands of yen, unless otherwise stated)
LB-003
LB-004

LB-002

D Project Machida

D Project Hachioji

D Project Aikawa-Machi

D Project Shin-Misato

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

208,323

366,649

105,864

141,319(D) Depreciation

43,73583,61022,31920,942(E) Income (loss) from rental business(= C – D)

164,588

283,039

83,544

120,376(F) Capital expenditures

162,215

7,831

–

–

(G) NCF (= C – F)

46,108358,818

105,864

141,319

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Property number

LB-005

LB-006

LB-007

LB-008Property name

D Project Urayasu I

D Project Urayasu II

D Project Akanehama

D Project Noda

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

176,002554,053

70,080156,425(D) Depreciation

32,90085,866

13,10034,606(E) Income (loss) from rental business(= C – D)

143,102468,187

56,979

121,818(F) Capital expenditures

6,047

–

–

–

(G) NCF (= C – F)

169,955

554,053

70,080156,425

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

- 57 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management

LB-009(Unit: Thousands of yen, unless otherwise stated)
LB-011
LB-012

LB-010

D Project Inuyama

D Project Gifu

D Project Neyagawa

D Project Sapporo Minami

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

290,01332,537

143,390(25,973)(D) Depreciation

65,243

7,979

24,3827,273(E) Income (loss) from rental business(= C – D)

224,770

24,558

119,007(33,246)(F) Capital expenditures

–

–

–

–

(G) NCF (= C – F)

290,01332,537

143,390(25,973)

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Property number

LB-013

LB-014

LB-015

LB-016

Property name

D Project Morioka

D Project Sendai Minami

D Project Tsuchiura

D Project Gotenba

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

36,99342,228100,400

23,969(D) Depreciation

9,160

12,952

24,882

6,863(E) Income (loss) from rental business(= C – D)

27,83329,27575,518

17,106(F) Capital expenditures

–

–

–

9,938

(G) NCF (= C – F)

36,99342,228100,400

14,030

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

- 58 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
LB-019
LB-020Property number

LB-017

LB-018Property name

D Project Nishi-Hiroshima

D Project Fukuoka Umi

D Project Tosu

D Project Kuki I

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

127,702(Note 1)

(Note 1)

Rental revenues(Note 1)

127,693(Note 1)

(Note 1)Other rental revenues(Note 1)9(Note 1)

(Note 1)

(Note 1)

12,784(Note 1)

(Note 1)

Taxes and public dues

(Note 1)8,860

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

3,229

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)–

(Note 1)

(Note 1)

Insurance(Note 1)

173

(Note 1)

(Note 1)

Utilities expenses(Note 1)–

(Note 1)

(Note 1)Other rental expenses(Note 1)

522

(Note 1)

(Note 1)

(C) NOI (= A – B)

37,308114,918

153,595

100,089(D) Depreciation

6,103

25,80745,436

20,483(E) Income (loss) from rental business(= C – D)

31,204

89,110108,158

79,606(F) Capital expenditures

–

–

–

4,689

(G) NCF (= C – F)

37,308114,918

153,595

95,399Leasehold and security deposits, etc.

(Note 1)

177,369(Note 1)

(Note 1)

Property number

LB-021

LB-022

LB-023

LB-024

Property name

D Project Kuki II

D Project Kawagoe I

D Project Kawagoe II

DPL Inuyama

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019
(Note 1)

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

102,969

141,550

Rental revenues(Note 1)

102,762

141,528(Note 1)Other rental revenues(Note 1)207

22(Note 1)

(B) Real estate rental expenses subtotal(Note 1)

11,826

19,604(Note 1)

Taxes and public dues

(Note 1)

9,259

11,263(Note 1)

Outsourcing expenses(Note 1)

1,800

1,881

(Note 1)

Repairs and maintenance expenses(Note 1)

380

5,826

(Note 1)

Insurance(Note 1)

119150

(Note 1)

Utilities expenses(Note 1)––

(Note 1)Other rental expenses(Note 1)

268

483

(Note 1)

(C) NOI (= A – B)

216,477

91,143

121,946

101,486(D) Depreciation

56,245

16,40423,332

21,893(E) Income (loss) from rental business(= C – D)

160,232

74,73898,61379,593(F) Capital expenditures––

23,064–(G) NCF (= C – F)

216,477

91,14398,881

101,486

Leasehold and security deposits, etc.

(Note 1)

173,500

140,148(Note 1)

- 59 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
LB-027
LB-028Property number

LB-025

LB-026

Property name

D Project Fukuoka
Hakozaki

D Project Kuki III

D Project Kuki IV

D Project Kuki V

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

112,277

199,108

157,440

220,510(D) Depreciation

23,59744,91335,04550,472(E) Income (loss) from rental business(= C – D)

88,680154,194

122,395

170,037

–

–

–

–

(G) NCF (= C – F)

112,277

199,108

157,440

220,510

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)(F) Capital expenditures

Property number

LB-029LB-030

LB-031

LB-032

Property name

D Project Kuki VI

D Project Yashio

D Project Nishiyodogawa

D Project Matsudo

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

135,076

156,223

242,826

176,112(D) Depreciation

35,95434,54960,93630,492(E) Income (loss) from rental business(= C – D)99,122

121,674

181,889

145,619(F) Capital expenditures

–

–

750

–

(G) NCF (= C – F)

135,076

156,223

242,076

176,112

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

- 60 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number

LB-033(Unit: Thousands of yen, unless otherwise stated)
LB-035
LB-036

LB-034

Property name

D Project Hibiki Nada

D Project Morioka II

D Project Kawagoe III

D Project Kazo

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

65,58840,631

183,025

90,141(D) Depreciation

19,4598,527

46,077

21,782(E) Income (loss) from rental business(= C – D)

46,12832,103

136,947

68,359(F) Capital expenditures

–

–

–

–

(G) NCF (= C – F)

65,58840,631

183,025

90,141

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Property number

LB-037

LB-038

LB-039LB-040Property name

D Project Urayasu III

D Project Tomisato

D Project Kyotanabe

D Project Sendai Izumi

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

179,485

135,721

105,962

43,151(D) Depreciation

46,341

38,296

21,896

11,822(E) Income (loss) from rental business(= C – D)

133,144

97,42484,06631,328(F) Capital expenditures

–

–

3,150

–

(G) NCF (= C – F)

179,485

135,721102,812

43,151

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

- 61 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management

LB-041(Unit: Thousands of yen, unless otherwise stated)
LB-043
LB-044

LB-042

D Project Oyama

D Project Sano

D Project Tatebayashi

D Project Kakegawa

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

57,77852,06991,903

178,155(D) Depreciation

14,176

15,432

23,30442,247(E) Income (loss) from rental business(= C – D)

43,601

36,636

68,599135,908(F) Capital expenditures

–

–

–

–

(G) NCF (= C – F)

57,77852,06991,903

178,155

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Property number

LB-045

LB-046

LB-047

LB-048Property name

D Project Hiroshima Seifu

D Project Tosu II

D Project Kawagoe IV

D Project Kuki VII

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

161,065(Note 1)

Rental revenues(Note 1)

(Note 1)

160,380(Note 1)Other rental revenues(Note 1)

(Note 1)685

(Note 1)

(Note 1)

(Note 1)2,804

(Note 1)
(Note 1)

(B) Real estate rental expenses subtotal
Taxes and public dues

(Note 1)

(Note 1)

14

Outsourcing expenses(Note 1)

(Note 1)1,800

(Note 1)

Repairs and maintenance expenses(Note 1)

(Note 1)–

(Note 1)

Insurance(Note 1)

(Note 1)201

(Note 1)

Utilities expenses(Note 1)

(Note 1)–

(Note 1)Other rental expenses(Note 1)

(Note 1)

787

(Note 1)

(C) NOI (= A – B)

111,068

50,559158,261

31,037(D) Depreciation

24,470

14,11426,8984,854(E) Income (loss) from rental business(= C – D)

86,59736,445

131,363

26,183(F) Capital expenditures

–

–

–

–

(G) NCF (= C – F)

111,068

50,559158,261

31,037

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

108,000(Note 1)

- 62 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
LB-051
LB-052

Property number

LB-049

LB-050Property name

D Project Chibakita

D Project Matsudo II

D Project Tomisato II

D Project Osaka
Hirabayashi

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

201,846

209,933

204,388

124,286(D) Depreciation

38,25842,652

48,46045,012(E) Income (loss) from rental business(= C – D)

163,588

167,280

155,928

79,274(F) Capital expenditures

–

–

–

–

(G) NCF (= C – F)

201,846

209,933

204,388

124,286

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Property number

LB-053

LB-054

LB-055

LB-056

Property name

D Project Sendai Izumi II

D Project Kaminokawa

D Project Fuji

D Project Tosu III

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

(Note 1)

Rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental revenues(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

(Note 1)

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

Insurance(Note 1)

(Note 1)

(Note 1)

(Note 1)

Utilities expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)Other rental expenses(Note 1)

(Note 1)

(Note 1)

(Note 1)

(C) NOI (= A – B)

221,785

258,874

117,831

278,171(D) Depreciation

59,38553,27527,687

67,131(E) Income (loss) from rental business(= C – D)

162,399

205,599

90,143211,039(F) Capital expenditures

–

–

–

–

(G) NCF (= C – F)

221,785

258,874

117,831

278,171

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

(Note 1)

- 63 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management(Unit: Thousands of yen, unless otherwise stated)
LM-002
LM-003LM-001DPL Misato

DPL Fukuoka Kasuya

DPL Kitakyushu

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 27, 2018
to February 28, 2019

Logistics properties
subtotal

Information on revenues and expenses(A) Real estate rental revenues subtotal(Note 1)

(Note 1)

(Note 1)

10,017,054

Rental revenues(Note 1)

(Note 1)

(Note 1)

9,937,875

Other rental revenues(Note 1)

(Note 1)

(Note 1)

79,178(Note 1)

(Note 1)

(Note 1)

1,196,763

Taxes and public dues

(Note 1)

(Note 1)

(Note 1)

708,333

Outsourcing expenses(Note 1)

(Note 1)

(Note 1)

221,238

Repairs and maintenance expenses(Note 1)

(Note 1)

(Note 1)

167,146

Insurance(Note 1)

(Note 1)

(Note 1)

13,512

Utilities expenses(Note 1)

(Note 1)

(Note 1)

10,697

Other rental expenses(B) Real estate rental expenses subtotal(Note 1)

(Note 1)

(Note 1)75,834(C) NOI (= A – B)

376,186

388,410105,2138,820,291(D) Depreciation

74,081

91,261

31,126

1,985,525(E) Income (loss) from rental business(= C – D)

302,104

297,148

74,086

6,834,766(F) Capital expenditures

21,586840–

240,113(G) NCF (= C – F)

354,599

387,570

105,2138,580,177

Leasehold and security deposits, etc.

(Note 1)

(Note 1)

(Note 1)

- 64 -––

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RE-003RE-004

Property number

RE-001

RE-002

Property nameQiz Ebisu

Castalia Azabujuban
Shichimenzaka

Castalia Shibakoen

Castalia Ginza

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal

235,449

123,071

71,482

67,234

Rental revenues

211,998

110,871

66,114

61,218Other rental revenues

23,45012,199

5,367

6,015

52,41928,384

17,35020,895(B) Real estate rental expenses subtotal
Taxes and public dues

8,420

4,779

3,459

3,327

Outsourcing expenses

17,978

10,979

7,097

8,349

Repairs and maintenance expenses

7,562

6,370

4,252

6,213

117

81

53

59

16,543

3,205

518

672

Insurance
Utilities expenses

1,797

2,967

1,969

2,271

(C) NOI (= A – B)

Other rental expenses

183,029

94,68654,132

46,339(D) Depreciation

32,66526,446

15,792

13,660(E) Income (loss) from rental business(= C – D)

150,364

68,23938,33932,678(F) Capital expenditures

6,258

4,119

5,986

5,099

(G) NCF (= C – F)

176,771

90,56648,14541,239Leasehold and security deposits, etc.

182,093

27,426

12,626

11,106

Property number

RE-005RE-006RE-007RE-008Property nameCastalia Hiroo

Castalia Nihonbashi

Castalia Hacchobori

Castalia Azabujuban

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

52,19738,79367,73275,95448,03036,67264,13870,880

4,166

2,120

3,593

5,074

10,789

11,683

12,415

13,633

Taxes and public dues

2,778

1,829

2,869

2,437

Outsourcing expenses

3,788

5,040

6,529

7,464

Repairs and maintenance expenses

1,505

2,827

2,055

2,216

34

36

56

47

1,967

382

339

332

Insurance
Utilities expenses

714

1,567

563

1,134

(C) NOI (= A – B)

Other rental expenses

41,407

27,10955,31762,321(D) Depreciation

11,451

8,486

14,583

12,331(E) Income (loss) from rental business(= C – D)

29,956

18,62340,73349,989(F) Capital expenditures

2,246

3,870

945

694

(G) NCF (= C – F)

39,161

23,23854,371

61,626

Leasehold and security deposits, etc.

42,060

10,66813,175

14,754- 65 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RE-011
RE-012

Property number

RE-009RE-010Property nameCastalia Azabujuban II

Castalia Shinjuku
Natsumezaka

Castalia Ginza II

Castalia Shibuya
Sakuragaoka

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal
Taxes and public dues

68,28947,741

51,39535,276

65,29945,05547,78333,086
2,189

2,989

2,686

3,611

36,125

13,53540,538

8,827

2,871

2,166

2,223

1,812

Outsourcing expenses

6,036

5,476

8,197

4,412

Repairs and maintenance expenses

25,1583,625

29,086

1,538

Insurance

46

38

38

27

Utilities expenses

554

1,122

321

316

1,457

1,106

669

720

(C) NOI (= A – B)

Other rental expenses

32,16434,206

10,857

26,448(D) Depreciation

13,977

8,271

10,9776,180(E) Income (loss) from rental business(= C – D)

18,18625,934(120)

20,267(F) Capital expenditures

31,522

4,468

20,454

3,228

641

29,737(9,596)23,21912,425

16,153

8,108

6,841

(G) NCF (= C – F)
Leasehold and security deposits, etc.

Property number

RE-013RE-014RE-015RE-016

Property nameCastalia Nishi Azabu
Kasumicho

Castalia Ochanomizu

Castalia Sangubashi

Castalia Suitengu

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

70,25960,40345,406

46,68766,922

57,647

39,102

43,848

3,337

2,756

6,303

2,839

23,70010,464

15,604

14,661

Taxes and public dues

4,630

2,942

2,829

2,366

Outsourcing expenses

7,869

4,858

5,271

4,191

Repairs and maintenance expenses

6,087

1,057

5,953

5,963

59

49

37

41

2,627

376

425

1,374

Insurance
Utilities expenses

2,426

1,180

1,086

723

(C) NOI (= A – B)

Other rental expenses

46,55949,93929,80232,025(D) Depreciation

12,264

8,673

6,776

8,114

(E) Income (loss) from rental business(= C – D)

34,294

41,26523,02523,910(F) Capital expenditures

12,587

1,021

14,9091,582(G) NCF (= C – F)

33,971

48,917

14,89230,442

Leasehold and security deposits, etc.

17,134

17,682

9,707

7,120

- 66 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management

RE-017(Unit: Thousands of yen, unless otherwise stated)
RE-019RE-020RE-018

Castalia Suitengu II

Castalia Shintomicho

Castalia Shintomicho II

Castalia Harajuku

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues

42,21133,75029,16828,49039,56932,54928,10026,198
2,292

2,642

1,201

1,067

13,917

7,129

5,209

5,196

2,470

1,868

1,381

1,500

Outsourcing expenses

4,027

2,714

2,262

2,385

Repairs and maintenance expenses

5,042

986

921

453

42

32

25

26

1,571

467

403

297

(B) Real estate rental expenses subtotal
Taxes and public dues

Insurance
Utilities expenses

763

1,060

214

532

(C) NOI (= A – B)

Other rental expenses

28,293

26,621

23,95923,293(D) Depreciation

6,873

6,438

6,211

3,042

(E) Income (loss) from rental business(= C – D)

21,42020,182

17,74820,251(F) Capital expenditures

2,527

465

1,060

935

(G) NCF (= C – F)

25,76626,15522,89922,358

Leasehold and security deposits, etc.

6,808

7,794

5,561

5,319

Property number

RE-021

RE-022

RE-023RE-024
Castalia Ningyocho
From September 1, 2018
to February 28, 2019

Property nameCastalia Yoyogi Uehara

Castalia Sendagaya

Castalia Shinjuku 7
chome

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal

23,03020,331

18,88836,510Rental revenues

21,471

19,48918,49435,091Other rental revenues

1,558

841

393

1,418

5,230

4,925

4,769

8,738

Taxes and public dues

1,023

1,024

968

1,959

Outsourcing expenses

2,703

2,643

2,075

3,248

Repairs and maintenance expenses

700

478

764

2,264

Insurance

17

15

21

33

Utilities expenses

174

183

328

423

(B) Real estate rental expenses subtotal

610

580

612

809

(C) NOI (= A – B)

Other rental expenses

17,80015,405

14,11827,771(D) Depreciation

3,459

2,552

1,884

6,579

(E) Income (loss) from rental business(= C – D)

14,34012,853

12,233

21,192(F) Capital expenditures

802

1,001

101

1,293

(G) NCF (= C – F)

16,997

14,40414,016

26,478

Leasehold and security deposits, etc.

5,122

3,918

2,722

7,950

- 67 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RE-027
RE-028Property number

RE-025RE-026

Property nameCastalia Ningyocho II

Castalia Shin-Ochanomizu

Castalia Higashi
Nihonbashi II

Castalia Jinbocho

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal

40,95433,54251,02043,506

Rental revenues

39,10532,051

49,02741,222Other rental revenues

1,848

1,490

1,993

2,284

9,480

7,183

8,377

10,269(B) Real estate rental expenses subtotal
Taxes and public dues

1,996

1,776

2,301

1,800

Outsourcing expenses

3,939

2,960

3,911

4,103

Repairs and maintenance expenses

3,113

2,026

1,357

803

Insurance

35

29

46

32

Utilities expenses

464

245

384

385

1,017

814

931

833

(C) NOI (= A – B)

Other rental expenses

31,47326,35942,642

33,237(D) Depreciation

7,395

4,445

8,293

5,857

(E) Income (loss) from rental business(= C – D)

24,077

21,91334,34927,380(F) Capital expenditures

233

2,204

552

3,704

(G) NCF (= C – F)

31,23924,15542,09029,533

Leasehold and security deposits, etc.

9,053

7,391

10,858

7,011

Property number

RE-029RE-030RE-031

RE-032

Property nameCastalia Shintomicho III

Castalia Shinjuku Gyoen

Castalia Takanawadai

Castalia Higashi
Nihonbashi III

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

25,633

83,84430,491

24,33624,267

81,66728,31824,336

1,365

2,177

2,173

–

5,616

15,492

8,671

3,985

Taxes and public dues

1,168

4,160

1,546

1,304

Outsourcing expenses

2,681

5,536

3,294

1,493

Repairs and maintenance expenses

656

3,812

2,585

103

Insurance

26

76

25

25

Utilities expenses

257

650

265

368

826

1,254

954

690

(C) NOI (= A – B)

Other rental expenses

20,016

68,352

21,82020,350(D) Depreciation

4,651

12,173

3,891

3,274

(E) Income (loss) from rental business(= C – D)

15,36456,17917,92817,075(F) Capital expenditures

1,299

1,679

2,364

1,653

(G) NCF (= C – F)

18,716

66,672

19,456

18,696

Leasehold and security deposits, etc.

4,881

19,057

4,259

6,228

- 68 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number

RE-033(Unit: Thousands of yen, unless otherwise stated)
RE-035
RE-036RE-034

Property nameCastalia Shinjuku Gyoen II Castalia Shintomicho IV

Castalia Takanawadai II

Castalia Minami Azabu

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

16,261

16,66939,89821,472

15,911

15,90538,16020,924

350

764

1,737

547

3,619

3,815

7,756

4,129

Taxes and public dues

878

814

2,064

1,148

Outsourcing expenses

1,600

1,776

3,338

1,979

Repairs and maintenance expenses

337

300

1,061

150

Insurance

14

14

32

17

Utilities expenses

185

195

323

119

601

713

936

713

(C) NOI (= A – B)

Other rental expenses

12,641

12,85332,142

17,342(D) Depreciation

2,818

2,637

5,491

2,789

(E) Income (loss) from rental business(= C – D)

9,823

10,216

26,651

14,553(F) Capital expenditures

1,761

172

245

776

(G) NCF (= C – F)

10,88012,681

31,897

16,565

Leasehold and security deposits, etc.

1,137

3,125

7,146

4,102

Property number
Property name
Period for asset management

RE-037

RE-038RE-039RE-040

Castalia Ginza III

Castalia Kayabacho

Castalia Takanawa

Castalia Higashi
Nihonbashi

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal

87,85897,448251,183

142,962

Rental revenues

82,26490,882

232,534

132,143

Other rental revenues

5,593

6,566

18,64910,81921,347

20,36657,22132,180

Taxes and public dues

4,536

4,534

14,433

7,627

Outsourcing expenses

9,118

7,990

20,76414,306

Repairs and maintenance expenses

8,150(B) Real estate rental expenses subtotal

5,971

6,374

13,747

Insurance

75

97

261

140

Utilities expenses

813

600

2,792

1,121

831

769

5,220

835

(C) NOI (= A – B)

Other rental expenses

66,511

77,082

193,961

110,781(D) Depreciation

14,73415,75330,32020,818(E) Income (loss) from rental business(= C – D)

51,77761,329163,641

89,963(F) Capital expenditures

9,512

6,979

15,9425,460(G) NCF (= C – F)

56,99970,103

178,018

105,321

Leasehold and security deposits, etc.

15,015

21,90854,447

37,203- 69 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RE-043RE-044

Property number

RE-041

RE-042

Property nameCastalia Shinjuku

Castalia Ichigaya

Shibaura Island Bloom
Tower

Castalia Hatsudai

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

92,55440,263393,935

69,91489,731

38,589360,228

64,516

2,822

1,673

33,707

5,397

10,925

14,927

141,813

23,947

Taxes and public dues

4,982

1,893

18,1034,123

Outsourcing expenses

4,703

6,335

62,842

10,432

Repairs and maintenance expenses

188

4,906

16,427

7,944

Insurance

68

32

636

66

Utilities expenses

639

293

4,641

653

343

1,467

39,161725(C) NOI (= A – B)

Other rental expenses

81,62825,335

252,12145,967(D) Depreciation

9,999

6,930

89,832

15,459(E) Income (loss) from rental business(= C – D)

71,62918,405

162,289

30,507(F) Capital expenditures(G) NCF (= C – F)

366

1,752

7,257

5,332

81,262

23,583244,864

40,634–6,500

223,014

12,334

Leasehold and security deposits, etc.

Property number
Property name
Period for asset management

RE-045RE-046RE-047

RE-048

Castalia Hatsudai II

Castalia Ebisu

Castalia Meguro
Kamurozaka

Castalia Toritsudaigaku

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues

60,37542,855

126,41420,011

56,06840,723

118,303

18,577

4,306

2,131

8,110

1,433

20,827

13,421

36,2296,038

Taxes and public dues

3,414

2,309

5,900

550

Outsourcing expenses

8,755

6,624

14,7302,927

Repairs and maintenance expenses

1,388(B) Real estate rental expenses subtotal

7,344

3,262

12,100Insurance

51

35

123

21

Utilities expenses

613

379

1,042

346

648

810

2,331

803

(C) NOI (= A – B)

Other rental expenses

39,54829,43390,184

13,972(D) Depreciation

10,6908,445

28,9085,296(E) Income (loss) from rental business(= C – D)

28,857

20,987

61,2768,675(F) Capital expenditures

6,468

3,114

18,446

1,462(G) NCF (= C – F)

33,07926,31971,73812,509Leasehold and security deposits, etc.

10,864

8,884

22,9273,567- 70 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management

RE-049(Unit: Thousands of yen, unless otherwise stated)
RE-051
RE-052RE-050

Castalia Yukigaya

Castalia Yutenji

Castalia Otsuka

Castalia Kikukawa

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues

35,57836,91846,25527,46534,35334,82643,18425,806
1,659

1,224

2,091

3,070

7,080

10,292

12,051

6,821

Taxes and public dues

1,903

1,304

2,178

1,452

Outsourcing expenses(B) Real estate rental expenses subtotal

3,454

4,473

6,128

3,183

Repairs and maintenance expenses

846

2,256

2,153

993

Insurance

34

26

44

27

Utilities expenses

343

172

758

292

499

2,059

787

872

(C) NOI (= A – B)

Other rental expenses

28,497

26,62634,203

20,643(D) Depreciation

8,367

9,229

11,7166,876(E) Income (loss) from rental business(= C – D)

20,13017,39622,486

13,766(F) Capital expenditures

295

1,272

189

587

(G) NCF (= C – F)

28,201

25,35334,01420,056

Leasehold and security deposits, etc.

9,885

12,111

8,859

5,766

Property number

RE-053RE-054RE-055RE-056

Property nameCastalia Meguro

Castalia Otsuka II

Castalia Jiyugaoka

Castalia Mejiro

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues

30,98239,28839,42534,52929,481

36,59337,48032,445
2,083

1,500

2,694

1,944

8,460

10,028

9,325

8,300

1,465

1,796

2,133

1,652

Outsourcing expenses

3,355

3,734

4,243

3,637

Repairs and maintenance expenses

2,702

3,209

1,857

2,183

Insurance

25

39

29

30

Utilities expenses

250

388

280

212

(B) Real estate rental expenses subtotal
Taxes and public dues

Other rental expenses(C) NOI (= A – B)

661

859

780

583

22,521

29,25930,09926,228(D) Depreciation

5,871

6,978

5,533

5,368

(E) Income (loss) from rental business(= C – D)

16,65022,281

24,566

20,860(F) Capital expenditures

8,408

1,331

2,966

1,006

(G) NCF (= C – F)

14,11327,927

27,13325,222

Leasehold and security deposits, etc.

6,120

8,227

8,848

7,319

- 71 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RE-059
RE-060Property number

RE-057RE-058Property nameCastalia Ikebukuro

Castalia Kaname-cho

Castalia Tower Shinagawa
SeasideCastalia Yakumo

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues

88,564

39,117

279,61325,86382,42038,109261,047

24,829

6,143

1,007

18,565

1,033

19,781

9,225

63,7196,703

Taxes and public dues

4,154

1,600

15,1791,718

Outsourcing expenses

8,831

3,615

26,006

3,083

Repairs and maintenance expenses

1,395(B) Real estate rental expenses subtotal

5,166

2,783

15,110Insurance

76

34

307

25

Utilities expenses

714

313

4,342

193

837

878

2,773

287

(C) NOI (= A – B)

Other rental expenses

68,78329,891

215,894

19,159(D) Depreciation

13,423

5,590

46,6933,805(E) Income (loss) from rental business(= C – D)

55,35924,301

169,201

15,354(F) Capital expenditures

1,748

314

17,151

293(G) NCF (= C – F)

67,03429,577

198,743

18,866

Leasehold and security deposits, etc.

16,727

8,802

68,125

4,954

Property number

RE-061

RE-062

RE-063RE-064

Property nameCastalia Togoshiekimae

Castalia Honjo
Azumabashi

Castalia Kitazawa

Castalia Monzennakacho

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

51,462

39,23725,173

17,58950,46636,132

22,454

17,181

996

3,105

2,718

408

8,769

9,409

11,341

4,149

Taxes and public dues

2,592

2,396

1,757

919

Outsourcing expenses

2,895

3,343

4,530

1,180

Repairs and maintenance expenses

917

2,632

2,159

3,634

Insurance

46

45

24

17

Utilities expenses

350

475

451

252

252

987

941

860

(C) NOI (= A – B)

Other rental expenses

42,69329,827

13,832

13,439(D) Depreciation

6,309

7,515

4,657

3,496

(E) Income (loss) from rental business(= C – D)

36,384

22,312

9,174

9,942

(F) Capital expenditures

1,280

1,780

6,221

1,066

(G) NCF (= C – F)

41,41328,047

7,610

12,373

Leasehold and security deposits, etc.

10,810

8,508

6,065

30

- 72 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management

RE-065(Unit: Thousands of yen, unless otherwise stated)
RE-067
RE-068RE-066

Castalia Kamiikedai

Castalia Morishita

Castalia Wakabayashikoen

Castalia Asakusabashi

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues

7,800

33,23628,55232,7007,709

31,477

26,66730,222
2,477

Other rental revenues

91

1,759

1,885

1,806

7,116

8,039

9,734

234

1,637

1,909

1,557

Outsourcing expenses

519

3,146

2,972

3,720

Repairs and maintenance expenses

151

1,180

2,141

3,599

Insurance

7

30

31

32

Utilities expenses

27

321

318

263

(B) Real estate rental expenses subtotal
Taxes and public dues

865

800

666

560

(C) NOI (= A – B)

Other rental expenses

5,994

26,12020,51322,965(D) Depreciation

1,045

5,395

4,376

5,163

(E) Income (loss) from rental business(= C – D)

4,948

20,724

16,136

17,801(F) Capital expenditures(G) NCF (= C – F)

139

1,714

1,969

3,097

5,854

24,405

18,543

19,867

681

7,741

5,699

7,102

Leasehold and security deposits, etc.

Property number

RE-069RE-070RE-071

RE-072

Property nameCastalia Iriya

Castalia Kita Ueno

Castalia Morishita II

Castalia Minowa

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

22,63990,741

28,702

49,62521,081

84,997

26,94747,945

1,557

5,744

1,755

1,680

21,922

21,173

6,784

12,545

Taxes and public dues

1,312

5,336

1,455

2,614

Outsourcing expenses

3,734

8,444

3,348

5,498

Repairs and maintenance expenses

3,421

15,994

5,072

1,138

Insurance

27

100

29

52

Utilities expenses

273

929

282

458

Other rental expenses

579

1,289

531

500

716

69,567

21,91837,080(D) Depreciation

3,820

16,676

4,677

9,510

(E) Income (loss) from rental business(= C – D)(3,103)52,89017,24027,570(C) NOI (= A – B)

(F) Capital expenditures

22,693

7,045

405

4,215

(G) NCF (= C – F)

(21,976)

62,522

21,51332,864

5,487

20,362

6,220

8,747

Leasehold and security deposits, etc.

- 73 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management

RE-073(Unit: Thousands of yen, unless otherwise stated)
RE-075RE-076RE-074

Castalia Oyamadai

Castalia Nakano

Castalia Yoga

Castalia Sumiyoshi

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal
Taxes and public dues

17,13037,11832,39935,613

16,79034,72830,572

32,052
3,560

339

2,390

1,827

20,737

8,693

9,483

6,951

1,238

1,878

1,615

1,701

Outsourcing expenses

2,473

4,958

4,885

3,354

Repairs and maintenance expenses

16,517

1,038

2,225

1,127

Insurance

21

36

29

33

Utilities expenses

171

300

298

267

315

481

430

467

(C) NOI (= A – B)

Other rental expenses(3,607)28,42522,916

28,661(D) Depreciation

2,252

6,630

3,812

6,379

(E) Income (loss) from rental business(= C – D)(5,859)21,794

19,104

22,281(F) Capital expenditures

19,525

998

557

966

(G) NCF (= C – F)

(23,133)

27,42622,35827,694

2,003

7,053

7,025

6,618

Leasehold and security deposits, etc.

Property number

RE-077

RE-078RE-079RE-080Property nameCastalia Monzennakacho II

Castalia Oshiage

Castalia Kuramae

Castalia Nakanobu

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

69,44436,40444,45870,154

68,03235,292

43,416

67,575

1,412

1,112

1,042

2,579

10,998

7,512

7,302

16,078

Taxes and public dues

3,725

2,100

2,463

3,367

Outsourcing expenses

4,844

2,949

3,649

7,873

Repairs and maintenance expenses

2,924

1,386

1,542

586

Insurance

67

43

46

53

Utilities expenses

589

278

447

604

385

598

108

1,255

(C) NOI (= A – B)

Other rental expenses

58,44628,89237,15654,076(D) Depreciation

11,254

7,337

7,597

13,761(E) Income (loss) from rental business(= C – D)47,191

21,55529,55840,314(F) Capital expenditures

1,018

291

122

5,694

(G) NCF (= C – F)

57,42728,60037,03348,381

Leasehold and security deposits, etc.

5,972

9,310

–

12,603- 74 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management

RE-081(Unit: Thousands of yen, unless otherwise stated)
RE-083
RE-084RE-082

Royal Parks Toyosu

Castalia Togoshi

Castalia Ooimachi

Castalia Omori

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues

334,281

75,88239,15653,367317,142

71,52538,921

50,566

Other rental revenues(B) Real estate rental expenses subtotal

17,138

4,356

235

2,800

130,828

20,573

5,644

7,390

Taxes and public dues

17,903

4,297

1,730

2,371

Outsourcing expenses

17,163

7,619

2,740

3,360

Repairs and maintenance expenses

41,332

5,956

402

411

437

67

30

50

–

775

252

536

Insurance
Utilities expenses

53,992

1,857

488

661

(C) NOI (= A – B)

Other rental expenses

203,452

55,30833,51145,976(D) Depreciation

105,750

16,7888,020

13,210(E) Income (loss) from rental business(= C – D)

97,702

38,52025,491

32,765(F) Capital expenditures

45,439

7,187

–

126

(G) NCF (= C – F)

158,012

48,121

33,51145,850

Leasehold and security deposits, etc.

73,633

15,987

10,085

13,271

Property number

RE-085RE-086RE-087

RE-088Property nameCastalia Mishuku

Castalia Arakawa

Castalia Omori II

Castalia Nakameguro

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal

69,15967,66678,962

119,700

Rental revenues

66,134

63,71773,983

108,748

Other rental revenues

3,024

3,948

4,979

10,952

16,526

14,402

21,64526,920

Taxes and public dues

3,439

3,732

3,616

4,398

Outsourcing expenses

7,948

5,409

7,429

12,391

Repairs and maintenance expenses

6,192(B) Real estate rental expenses subtotal

4,118

3,822

6,399

Insurance

60

75

67

65

Utilities expenses

578

632

1,641

2,597

380

731

2,491

1,273

(C) NOI (= A – B)

Other rental expenses

52,63253,26357,317

92,780(D) Depreciation

13,67518,025

13,857

13,346(E) Income (loss) from rental business(= C – D)

38,95735,23843,45979,433(F) Capital expenditures

3,165

1,897

4,394

22,246(G) NCF (= C – F)

49,46751,36652,92270,533

Leasehold and security deposits, etc.

19,75914,39527,77349,342- 75 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RE-091
RE-092 (Note 2)

Property number

RE-089

RE-090Property nameCastalia Meguro
Chojyamaru

Castalia Meguro Takaban

Castalia Omori III

Morino Tonari

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to December 6, 2018

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues

64,90053,98349,171

17,16562,25749,85046,60815,849
1,315

2,642

4,133

2,562

13,444

11,83912,889

5,266

3,820

1,850

2,507

1,409

Outsourcing expenses

5,646

6,231

5,763

1,577

Repairs and maintenance expenses

2,857

2,652

3,376

2,008

Insurance

47

39

40

27

Utilities expenses

645

375

376

122

(B) Real estate rental expenses subtotal
Taxes and public dues

427

690

825

120

(C) NOI (= A – B)

Other rental expenses

51,45542,14336,281

11,898(D) Depreciation

9,625

6,811

10,2603,734(E) Income (loss) from rental business(= C – D)

41,82935,331

26,021

8,163(F) Capital expenditures

2,674

3,117

2,628

–

(G) NCF (= C – F)

48,781

39,02633,652

11,898

Leasehold and security deposits, etc.

10,506

9,694

11,353–

Property number

RE-093

Property nameCastalia Meguro
Tairamachi
From September 1, 2018
to February 28, 2019

Period for asset management

RE-094

RE-095

RE-096

Royal Parks SEASIR

Castalia Honkomagome

Cosmo Heim
Musashikosugi

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues

33,511

245,852

50,74459,004

31,627227,217

48,91455,764

1,883

18,635

1,829

3,240

6,351

91,718

10,895

8,809

Taxes and public dues

1,490

14,487

2,660

3,790

Outsourcing expenses

3,519

8,253

5,497

891

543

7,773

1,692

3,565

Insurance

26

362

48

68

Utilities expenses

186

–

339

2

Other rental expenses

585

60,841657491(C) NOI (= A – B)

27,160154,134

39,84850,195(D) Depreciation

4,881

76,354

8,758

6,827

(E) Income (loss) from rental business(= C – D)

22,27877,77931,08943,367(B) Real estate rental expenses subtotal

Repairs and maintenance expenses(F) Capital expenditures

–

750

303

6,751

(G) NCF (= C – F)

27,160

153,384

39,54443,443

Leasehold and security deposits, etc.

7,044

41,235

11,591

85,460- 76 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management

RE-097(Unit: Thousands of yen, unless otherwise stated)
RE-099RE-105

RE-098

Castalia Tsurumi

Castalia Funabashi

Castalia Nishi Funabashi

Castalia Nogeyama

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal

27,80030,82733,78914,713

Rental revenues

24,897

29,20531,432

13,106

Other rental revenues

2,903

1,622

2,357

1,606

8,111

8,409

8,293

4,170

Taxes and public dues

1,400

1,493

1,446

741

Outsourcing expenses

3,288

3,260

3,899

2,190

Repairs and maintenance expenses

563(B) Real estate rental expenses subtotal

1,415

955

1,687

Insurance

29

31

32

16

Utilities expenses

199

1,651

422

229

1,778

1,015

805

428

(C) NOI (= A – B)

Other rental expenses

19,68822,41825,496

10,543(D) Depreciation

5,226

6,129

4,834

1,716

(E) Income (loss) from rental business(= C – D)

14,461

16,28920,6628,826(F) Capital expenditures

151

237

–

–

(G) NCF (= C – F)

19,53722,18025,496

10,543

Leasehold and security deposits, etc.

6,555

5,768

7,349

2,836

Property number

RE-106

RE-107

RE-108

RE-109Property nameCastalia Ichikawa

Royal Parks Hanakoganei

Castalia Musashikosugi

Royal Parks Wakabadai

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal

19,681

246,140

58,186

266,030

19,680229,174

53,046

244,068

1

16,965

5,139

21,961

3,259

112,033

19,439108,001

Taxes and public dues

882

13,702

2,753

18,854

Outsourcing expenses

1,507

1,921

6,871

1,490

73

58,252

8,673

13,469Insurance

19

379

45

347

Utilities expenses

152

–

406

–

Other rental expenses

623

37,776689

73,839(C) NOI (= A – B)

16,422

134,10738,746

158,028(D) Depreciation

3,397

74,42011,34673,417(E) Income (loss) from rental business(= C – D)

13,024

59,68627,39984,611(F) Capital expenditures

1,581

106,211

10,032

2,035(G) NCF (= C – F)

14,841

27,89528,714

155,993

Leasehold and security deposits, etc.

7,044

41,411

12,565

124,904

Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

Repairs and maintenance expenses- 77 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RE-112
RE-116

Property number

RE-110

RE-111

Property name

Pacific Royal Court
Minatomirai Urban Tower

L-Place Shinkoyasu

Royal Parks
Musashikosugi

Castalia Sakaisuji
Honmachi

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues

520,501

57,036

68,33861,610491,885

55,92064,95858,811Other rental revenues(B) Real estate rental expenses subtotal

28,615

1,116

3,380

2,799

212,965

5,350

30,457

15,981

Taxes and public dues

34,881

3,593

3,273

3,332

Outsourcing expenses

42,218

1,174

2,908

5,036

Repairs and maintenance expenses

19,322

281

1,116

4,526

772

68

77

78

–

–

–

1,986

Insurance
Utilities expenses

115,770

232

23,082

1,020(C) NOI (= A – B)

Other rental expenses

307,536

51,68537,88045,629(D) Depreciation

180,845

17,724

18,337

11,199(E) Income (loss) from rental business(= C – D)

126,691

33,96019,54334,429(F) Capital expenditures

3,588

–

–

412

(G) NCF (= C – F)

303,948

51,68537,88045,216

Leasehold and security deposits, etc.

87,782

26,67424,266

4,894

Property number

RE-117

RE-118

RE-119RE-121

Property nameCastalia Shin-Umeda

Castalia Abeno

Castalia Sakae

Castalia Maruyama
Urasando

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues

56,648

179,73144,79919,84553,513

162,765

41,53018,406

3,135

16,966

3,268

1,438

14,55152,457

13,994

4,979

Taxes and public dues

3,290

11,132

3,194

1,670

Outsourcing expenses

5,002

18,060

5,713

1,618

Repairs and maintenance expenses

3,856

18,472

3,816

678

74

211

59

32

1,429

3,825

458

688

(B) Real estate rental expenses subtotal

Insurance
Utilities expenses

898

755

752

291

(C) NOI (= A – B)

Other rental expenses

42,097

127,274

30,804

14,865(D) Depreciation

11,01428,970

7,779

3,120

(E) Income (loss) from rental business(= C – D)

31,082

98,30323,025

11,745(F) Capital expenditures

5,894

4,454

3,723

226

(G) NCF (= C – F)

36,202

122,819

27,08014,638

Leasehold and security deposits, etc.

5,436

18,596

13,7153,293- 78 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RE-124
RE-125

Property number

RE-122

RE-123

Property nameCastalia Maruyama
Omotesando

Castalia Higashi Hie

Castalia Tower
Nagahoribashi

Castalia Sannomiya

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

75,38943,309166,248

52,777

69,615

41,146

155,931

49,770

5,773

2,162

10,317

3,007

18,20812,42934,946

14,602

Taxes and public dues

7,103

3,232

11,0873,076

Outsourcing expenses

6,091

4,304

14,904

6,038

Repairs and maintenance expenses

2,134

3,566

3,319

4,224

133

63

231

67

2,013

386

4,223

682

Insurance
Utilities expenses

731

876

1,180

513

(C) NOI (= A – B)

Other rental expenses

57,18130,879131,30238,175(D) Depreciation

12,2708,179

29,0449,938(E) Income (loss) from rental business(= C – D)

44,91022,699102,257

28,236(F) Capital expenditures

120

–

915

2,802

(G) NCF (= C – F)

57,06130,879130,387

35,372

Leasehold and security deposits, etc.

11,8366,700

13,9905,700

Property number

RE-126

RE-127

RE-128

RE-129Property nameCastalia Kotodaikoen

Castalia Ichibancho

Castalia Omachi

Castalia Uemachidai

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

23,87538,85834,02589,261

23,48536,69431,32583,547

389

2,163

2,700

5,713

5,176

8,473

7,378

16,356

Taxes and public dues

1,695

2,843

2,049

5,562

Outsourcing expenses

1,705

3,191

3,495

6,375

Repairs and maintenance expenses

100

610

1,081

2,378

Insurance

41

60

51

120

Utilities expenses

512

507

272

945

1,121

1,260

428

973

(C) NOI (= A – B)

18,69830,384

26,647

72,904(D) Depreciation

4,323

5,956

6,390

14,463(E) Income (loss) from rental business(= C – D)

14,374

24,427

20,25758,441(F) Capital expenditures

1,040

1,224

2,092

1,473

(G) NCF (= C – F)

17,657

29,15924,55571,430

Leasehold and security deposits, etc.

3,921

4,029

5,522

8,759

Other rental expenses- 79 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RE-132
RE-133

Property number

RE-130RE-131

Property nameCastalia Tower Higobashi

Big Tower Minami Sanjo

Castalia Fushimi

Castalia Meieki Minami

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

133,124

110,220

107,179

32,034

123,660

97,359100,31130,213
1,821

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues

9,464

12,861

6,868

34,45532,327

24,223

7,950

Taxes and public dues

7,432

9,335

6,176

1,885

Outsourcing expenses

13,996

11,376

11,692

3,356

Repairs and maintenance expenses

8,259

8,018

3,249

1,042

144

225

133

37

3,199

2,024

1,105

303

(B) Real estate rental expenses subtotal

Insurance
Utilities expenses

1,424

1,345

1,865

1,325

(C) NOI (= A – B)

Other rental expenses

98,66877,893

82,95624,083(D) Depreciation

19,81334,01425,7736,659(E) Income (loss) from rental business(= C – D)

78,85543,87957,182

17,424(F) Capital expenditures

1,440

21,5651,201–(G) NCF (= C – F)

97,22856,32881,75424,083

Leasehold and security deposits, etc.

14,405

15,594

16,372

6,444

Property number

RE-134RE-135

RE-136

RE-137

Property nameCastalia Yakuin

Castalia Mibu

Castalia Tsutsujigaoka

Castalia Ohori Bay Tower

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal

42,22351,42560,090147,473

Rental revenues

39,63344,00754,036

74,137

Other rental revenues

2,590

7,418

6,054

73,336

10,905

14,226

17,32435,770

Taxes and public dues

2,956

2,824

3,758

12,532

Outsourcing expenses

4,358

5,381

5,898

13,178

Repairs and maintenance expenses

2,254

4,380

6,369

1,812

Insurance

61

56

85

265

Utilities expenses

601

1,017

448

6,342

(B) Real estate rental expenses subtotal

673

565

764

1,638

(C) NOI (= A – B)

Other rental expenses

31,317

37,19942,766

111,703(D) Depreciation

10,872

12,25615,09042,508(E) Income (loss) from rental business(= C – D)

20,44524,94327,67569,194(F) Capital expenditures

18,723

2,092

202

–

(G) NCF (= C – F)

12,59435,10742,564

111,703

Leasehold and security deposits, etc.

9,514

6,653

19,281

13,106- 80 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property number
Property name
Period for asset management

RE-138(Unit: Thousands of yen, unless otherwise stated)
RE-140RE-141

RE-139

Royal Parks Namba

Castalia Shigahondori

Castalia Kyoto Nishioji

Castalia Ningyocho III

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues

135,660

74,48433,92374,043

128,364

70,184

31,634

66,611Other rental revenues(B) Real estate rental expenses subtotal

7,296

4,299

2,289

7,431

37,38019,568

10,328

16,639Taxes and public dues

9,543

4,327

1,776

3,130

Outsourcing expenses

5,019

6,195

3,760

8,623

Repairs and maintenance expenses

1,482

10,281

7,287

3,423

Insurance

196

82

44

66

Utilities expenses

164

464

934

554

12,174

1,209

390

2,782

(C) NOI (= A – B)

Other rental expenses

98,28054,916

23,59457,403(D) Depreciation

42,761

20,376

8,150

11,266(E) Income (loss) from rental business(= C – D)

55,51934,53915,443

46,136(F) Capital expenditures

4,419

3,095

881

208

(G) NCF (= C – F)

93,861

51,82022,71257,194

Leasehold and security deposits, etc.

24,97525,266

3,478

13,011

Property number

RE-142

RE-143

Property nameRoyal Parks Umejima

Castalia Shinsakae II

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Residential properties
subtotal

Information on revenues and expenses(A) Real estate rental revenues subtotal

102,852

60,5039,544,130

Rental revenues

95,521

57,216

8,863,066

Other rental revenues

7,330

3,287

681,064

36,947

8,674

2,708,036(B) Real estate rental expenses subtotal
Taxes and public dues

6,203

3,687

527,032

Outsourcing expenses

8,449

2,539

851,357

Repairs and maintenance expenses

3,542

271

646,609148

92

10,717

Utilities expenses

1,760

761

118,087

Other rental expenses

Insurance

16,843

1,322

554,231(C) NOI (= A – B)

65,904

51,8296,836,094(D) Depreciation

26,224

13,168

1,998,645(E) Income (loss) from rental business(= C – D)

39,68038,661

4,837,449(F) Capital expenditures349–

645,382(G) NCF (= C – F)

65,554

51,8296,190,711

Leasehold and security deposits, etc.

24,411

9,536- 81 -––

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RM-003
RM-004

Property number

RM-001

RM-002

Property nameACROSSMALL
Shinkamagaya

FOLEO Hirakata

QiZ GATE URAWA

UNICUS Takasaki

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal

276,055

269,536

214,539

129,870

275,700

217,118

181,110

129,870355

52,41833,428–50,396145,157

132,590

33,171

Taxes and public dues

25,20822,942

13,7509,792

Outsourcing expenses

9,002

42,27935,81020,350

Repairs and maintenance expenses

15,314

19,90354,732

2,335

320

229

115

82

–

50,51927,350

–

550

9,282

832

610

(C) NOI (= A – B)

225,659

124,378

81,94996,698(D) Depreciation

53,83337,643

28,34912,024(E) Income (loss) from rental business(= C – D)

171,825

86,73553,59984,673

Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

Insurance
Utilities expenses
Other rental expenses(F) Capital expenditures

712

2,865

2,840

–

(G) NCF (= C – F)

224,946

121,513

79,10896,698

Leasehold and security deposits, etc.

551,400

375,143

213,439

151,515

Property number

RM-005

RM-006

RM-007

RM-008Property nameACROSSPLAZA Miyoshi(Land)

DREAM TOWN ALi

ASOBOX (Land)

FOLEO Ome Imai

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

94,284

392,653

47,076

128,820

94,284

294,567

47,076

128,820–

98,085

–

–

9,750

183,239

7,467

28,350

Taxes and public dues

9,534

22,6057,251

10,387

Outsourcing expenses–

33,914–

9,528

Repairs and maintenance expenses–

38,530–306

Insurance

–

312

–

109

Utilities expenses
Other rental expenses(C) NOI (= A – B)
(D) Depreciation(E) Income (loss) from rental business(= C – D)(F) Capital expenditures–

83,070

–

–

216

4,805

216

8,019

84,533

209,41439,608100,469–

38,608–17,64984,533

170,805

39,60882,819

–

8,942

–

–

(G) NCF (= C – F)

84,533

200,472

39,608100,469

Leasehold and security deposits, etc.

188,568

460,985

94,152412,070- 82 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
RM-011
RR-001

Property number

RM-009RM-010Property name

FOLEO Otsu Ichiriyama

FOLEO Hakata

ACROSSMALL Semboku(Land)

LIFE Sagamihara
Wakamatsu

Period for asset management

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From December 7, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal

322,633

126,216

42,388(Note 1)

321,900

126,216

42,381(Note 1)

733

–

7

(Note 1)

29,521

10,57133(Note 1)

Taxes and public dues

–

–

–

(Note 1)

Outsourcing expenses

10,9003,852–(Note 1)

Repairs and maintenance expenses

17,297

5,903–(Note 1)

717

272

–

(Note 1)

Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

Insurance
Utilities expenses

–

–

–

(Note 1)

605

543

33

(Note 1)

(C) NOI (= A – B)

293,112

115,644

42,354

44,127(D) Depreciation

79,44326,020–2,925(E) Income (loss) from rental business(= C – D)

213,668

89,62342,354

41,201Other rental expenses(F) Capital expenditures

23,072

2,858

–

–

(G) NCF (= C – F)

270,039

112,785

42,354

44,127

Leasehold and security deposits, etc.

315,000

124,538

151,010(Note 1)

Property number

RR-002

RR-003

RR-004

RR-005

Property name

FOLEO Sendai
Miyanomori

ACROSSPLAZA Inazawa(Land)

Sports Depo and GOLF5
Kokurahigashi IC Store

Hiratsuka Retail Property(Land)

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Period for asset management
Information on revenues and expenses(A) Real estate rental revenues subtotal

238,500

69,660(Note 1)

(Note 1)

238,500

69,660(Note 1)

(Note 1)––

(Note 1)

(Note 1)

26,857

7,370(Note 1)

(Note 1)

Taxes and public dues

22,566

7,154(Note 1)

(Note 1)

Outsourcing expenses

3,600

–

(Note 1)

(Note 1)

Rental revenues
Other rental revenues(B) Real estate rental expenses subtotal

Repairs and maintenance expenses
Insurance
Utilities expenses––(Note 1)

(Note 1)

169–

(Note 1)

(Note 1)––

(Note 1)

(Note 1)520

216

(Note 1)

(Note 1)

(C) NOI (= A – B)

211,642

62,28979,460116,797(D) Depreciation

21,118–12,854–(E) Income (loss) from rental business(= C – D)

190,524

62,28966,606

116,797

Other rental expenses(F) Capital expenditures

3,600

–

–

–

(G) NCF (= C – F)

208,042

62,28979,460116,797

Leasehold and security deposits, etc.

238,500

139,320(Note 1)

(Note 1)

- 83 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
HO-001

Property number

RR-006

RU-001

Property nameRoyal Home Center
Morinomiya (Land)

COMBOX310

From September 1, 2018
to February 28, 2019

From December 7, 2018
to February 28, 2019

Period for asset management

Retail properties subtotal

Daiwa Roynet Hotel
Yokohama Kannai
From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal
Rental revenues

103,488

69,6002,789,389

168,331

103,488

69,6002,604,360

142,720––

185,029

25,611212

1,403

689,775

33,978Other rental revenues(B) Real estate rental expenses subtotal
Taxes and public dues––

169,108–

Outsourcing expenses

–

1,122

173,960

10,180

Repairs and maintenance expenses––

155,623

828

Insurance

–

150

2,586

145
22,290Utilities expenses––

160,940212

130

27,556534

103,275

68,1962,099,613

134,352–

20,283

350,755

22,764103,275

47,912

1,748,857

111,587

Other rental expenses(C) NOI (= A – B)
(D) Depreciation(E) Income (loss) from rental business(= C – D)(F) Capital expenditures––

44,891

4,615(G) NCF (= C – F)

103,275

68,196

2,054,721

129,737

Leasehold and security deposits, etc.

171,000

148,800

Property number

HO-002

Property nameSuper Hotel JR Nara
Station Sanjo Street

Period for asset management

Hotel properties subtotal

From December 6, 2018
to February 28, 2019––

222,447

OT-001

OT-002

Urban Living Inage

Aburatsubo Marina HILLSFrom September 1, 2018
to February 28, 2019

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal

24,900193,231

39,06043,749Rental revenues

20,282

163,00239,06043,749Other rental revenues

4,617

30,228

–

–

4,199

38,177

4,736

3,013

(B) Real estate rental expenses subtotal
Taxes and public dues

–

–

2,456

2,407

Outsourcing expenses

1,466

11,647273

240

Repairs and maintenance expenses

–

828

1,678

84

Insurance

21

166

59

64

2,588

24,878

–

–

122

656

267

217

(C) NOI (= A – B)

20,701

155,053

34,32340,735(D) Depreciation

4,399

27,164

12,48916,615(E) Income (loss) from rental business(= C – D)

16,301

127,889

21,834

24,119

Utilities expenses
Other rental expenses(F) Capital expenditures

–

4,615

673

–

(G) NCF (= C – F)

20,701

150,438

33,65040,735

Leasehold and security deposits, etc.

92,00041,93753,900––- 84 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Unit: Thousands of yen, unless otherwise stated)
Property number

OT-003

OT-004

Property nameNaha Shin-Toshin Center
Building (Daiwa Roynet Sharp Hiroshima Building
Hotel Naha-Omoromachi)

Period for asset management

From September 1, 2018
to February 28, 2019

Other assets subtotal

Total

From September 1, 2018
to February 28, 2019

Information on revenues and expenses(A) Real estate rental revenues subtotal

328,739(Note 1)

469,751

23,013,558

Rental revenues

275,642(Note 1)

416,651

21,984,957

Other rental revenues

53,096(Note 1)53,099

1,028,600

83,672(Note 1)

97,125

4,729,878

Taxes and public dues

18,754(Note 1)

27,631

1,432,107

Outsourcing expenses

23,723(Note 1)

25,436

1,283,640

Repairs and maintenance expenses

5,234(Note 1)

6,997

977,205415(Note 1)

575

27,55835,252(Note 1)35,252349,856(B) Real estate rental expenses subtotal

Insurance
Utilities expenses

290(Note 1)

1,230

659,510(C) NOI (= A – B)

Other rental expenses

245,066

52,500372,626

18,283,679(D) Depreciation

55,782

7,841

92,7294,454,820(E) Income (loss) from rental business(= C – D)

189,284

44,658279,896

13,828,859(F) Capital expenditures

9,040

–

9,714

944,717(G) NCF (= C – F)

236,025

52,500362,911

17,338,961

Leasehold and security deposits, etc.

470,510(Note 1)––––

(Note 1) Undisclosed as consent for disclosure has not been obtained from the lessee.
(Note 2) Sold as of December 7, 2018.

(2) Summary of Major Tenants
Not applicable.
(Note)A major tenant is a tenant for which leased area accounts for 10% or more of the leased areas in the entire
portfolio.

- 85 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(3) Summary on Appraisal Report
DHR obtains an appraisal report for each real estate or real estate in trust from DAIWA REALESTATE APPRAISAL CO., LTD., Chuo Real Estate Appraisal Co., Ltd., The Tanizawa Sōgō
Appraisal Co., Ltd., Japan Real Estate Institute or JLL Morii Valuation & Advisory K.K. The following
is a summary on the appraisal report obtained for each real estate or real estate in trust, which was
owned by DHR as of February 28, 2019.
The appraisal value does not provide any guarantees or promises that the relevant real estate or realestate in trust may be sold at the appraisal value now or in future. DHR has no interest in the above
appraisal agencies.
Property
number

Property nameAppraisal
agency(Note 1)

Date ofvalue
appraised

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod
(%)
1st to 8th year
4.2
9th year and later
4.3

LB-001 D Project MachidaT

February28, 2019

LB-002 D Project HachiojiTFebruary28, 2019

17,00016,7004.2

17,100

4.2

4.4

LB-003 D Project Aikawa-Machi

T

February28, 2019

4,410

4,460

4.6

4,390

4.6

4.8

T

February28, 2019

9,840

10,100

4.3

9,730

4.5

1st to 10th year
LB-004 D Project Shin-Misato

5,750

5,900

4.8

5,680

4.8
11th year

5.0

4.9
T

February28, 2019

LB-006 D Project Urayasu II

T

February28, 2019

28,10028,4003.8

28,000

LB-007 D Project AkanehamaT

February28, 2019

3,070

3,130

4.4

3,050

T

February28, 2019

LB-005 D Project Urayasu I

9,960

10,200

3.9

9,850

4.0

4.1

1st to 8th year
3.8
9th year and later
3.9
4.5

4.0

4.6

1st to 8th year
LB-008 D Project Noda

6,550

6,600

4.6

6,530

4.5
9th year and later
4.6

4.8

Building A
1st to 6th year
4.6
7th year and later
4.7
11,780
Building B
1st to 8th year
4.6
9th year and later
4.7

T

February28, 2019

LB-010 D Project Gifu

T

February28, 2019

1,170

1,160

5.3

1,180

LB-011 D Project Neyagawa

T

February28, 2019

6,320

6,350

4.5

6,300

T

February28, 2019

LB-009 D Project Inuyama

11,78011,7704.7

4.9

1st to 5th year
5.2
6th year and later
5.3

5.5

1st to 10th year
4.5
11th year

4.7

4.6
LB-012 D Project Sapporo Minami

862- 86 -

855

5.9

865

5.8

6.1

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameAppraisal
agency(Note 1)

Date ofvalue
appraised

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price
based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod(%)

T

February28, 2019

LB-014 D Project Sendai Minami

T

February28, 2019

1,580

1,570

5.2

1,580

LB-015 D Project TsuchiuraT

February28, 2019

3,540

3,460

5.1

3,580

LB-013 D Project Morioka

1,210

1,210

6.0

1,210

5.9

6.2

1st to 2nd year
5.0
3rd year and later
5.1

5.4

1st to 10th year
5.0
11th year

5.3

5.1
1st to 10th year
LB-016 D Project Gotenba

T

February28, 2019

1,140

1,130

5.4

1,150

5.3
11th year

5.6

5.4
Building A
1st to 4th year

LB-017 D Project Nishi-Hiroshima

T

February28, 2019

1,210

1,180

5.4

5.4
5th year and later
5.5
1,220
Building B
1st to 10th year
5.4
11th year
5.5

5.6

Building A
1st to 2nd year
4.7
3rd year and later
4.8
Building B
1st to 3rd year
4.6
4,520 4th year and later
4.8
Building C
4.8
Building D
1st to 2nd year
4.7
3rd year and later
4.8

T

February28, 2019

T

February28, 2019

LB-020 D Project Kuki I

TFebruary28, 2019

4,150

4,190

4.7

4,130

LB-021 D Project Kuki II

TFebruary28, 2019

8,650

8,770

4.7

8,600

LB-022 D Project Kawagoe I

T

February28, 2019

3,850

3,910

4.6

3,820

LB-023 D Project Kawagoe II

T

February28, 2019

5,390

5,440

4.6

5,370

LB-018 D Project Fukuoka Umi

4,510

4,500

4.9

5.1

1st to 5th year
LB-019 D Project Tosu

6,150

6,260

4.9

6,100

4.9
6th year and later
5.0

5.1

1st to 6th year
4.7
7th year and later
4.8

4.9

1st to 4th year
4.7
5th year and later
4.8

4.9

1st to 7th year
4.6
8th year and later
4.7

4.8

1st to 9th year

- 87 -

4.6
10th year and later
4.7

4.8

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameAppraisal
agency(Note 1)

Date ofvalue
appraised

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price
based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod
(%)
1st to 10th year

T

February28, 2019

LB-025 D Project Fukuoka Hakozaki

TFebruary28, 2019

4,630

4,670

4.6

4,610

LB-026 D Project Kuki III

T

February28, 2019

8,250

8,420

4.7

8,180

LB-027 D Project Kuki IV

T

February28, 2019

LB-028 D Project Kuki V

TFebruary28, 2019

8,910

8,990

4.7

8,880

LB-029 D Project Kuki VI

T

February28, 2019

5,510

5,580

4.7

5,480

LB-030 D Project Yashio

F

February28, 2019

6,790

6,840

4.5

6,730

4.0

4.8

LB-031 D Project Nishiyodogawa

F

February28, 2019

10,90011,0004.7

10,700

4.4

4.9

LB-032 D Project Matsudo

F

February28, 2019

7,760

7,780

4.5

7,730

4.2

4.6

LB-033 D Project Hibiki Nada

T

February28, 2019

LB-024 DPL Inuyama

4,220

4,230

4.7

4,210

4.6
11th year

4.9

4.7
4.5

4.8

1st to 4th year
4.7
5th year and later
4.8

4.9

1st to 5th year
5,910

5,880

4.7

5,920

4.7
6th year and later
4.8

4.9

1st to 3rd year
4.7
4th year and later
4.8

4.9

1st to 5th year
4.7
6th year and later
4.8

4.9

1st to 3rd year
2,170

2,180

5.7

2,170

5.6
4th year and later
5.8

5.9

1st to 7th year
5.7
LB-034 D Project Morioka II

T

February28, 2019

T

February28, 2019

T

February28, 2019

1,330

1,340

6.0

1,320

8th to 9th year
5.8
10th year and later
5.9

6.2

1st to 5th year
LB-035 D Project Kawagoe III

7,830

7,910

4.5

7,800

4.5
6th year and later
4.6

4.7

1st to 6th year
LB-036 D Project Kazo

3,460

3,450

4.8

3,460

4.8
7th year and later
4.9

5.0

1st to 3rd year
3.8
4th to 7th year

T

February28, 2019

LB-038 D Project Tomisato

T

February28, 2019

5,280

5,270

4.8

5,280

LB-039 D Project KyotanabeF

February28, 2019

3,710

3,720

5.5

3,690

5.1

5.8

LB-040 D Project Sendai Izumi

F

February28, 2019

1,610

1,620

5.3

1,600

5.0

5.5

LB-041 D Project Oyama

T

February28, 2019

2,040

2,070

5.5

2,020

5.6

5.7

LB-037 D Project Urayasu III

9,760

10,100

3.9

9,620

3.9
8th year and later
4.0

4.1

1st to 7th year

- 88 -

4.8
8th year and later
4.9

5.0

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameAppraisal
agency(Note 1)

Date ofvalue
appraised

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price
based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod
(%)
1st to 10th year
5.5

T

February28, 2019

LB-043 D Project Tatebayashi

T

February28, 2019

3,210

3,220

5.5

3,210

5.5

5.7

LB-044 D Project Kakegawa

F

February28, 2019

6,130

6,170

5.7

6,080

5.5

5.9

LB-045 D Project Hiroshima Seifu

F

February28, 2019

4,050

4,080

5.4

4,010

4.9

5.8

LB-046 D Project Tosu II

T

February28, 2019

1,890

1,900

5.0

1,890

LB-047 D Project Kawagoe IV

T

February28, 2019

5,930

6,060

4.6

5,880

LB-048 D Project Kuki VII

T

February28, 2019

1,110

1,100

4.8

1,110

4.8

5.0

LB-049 D Project Chibakita

D

February28, 2019

8,020

8,090

4.4

7,990

4.2

4.6

LB-050 D Project Matsudo II

F

February28, 2019

8,370

8,400

4.5

8,340

4.2

4.6

LB-051 D Project Tomisato II

T

February28, 2019

T

February28, 2019

LB-053 D Project Sendai Izumi II

FFebruary28, 2019

7,540

7,610

5.2

7,460

LB-054 D Project Kaminokawa

TFebruary28, 2019

8,050

8,080

5.5

8,040

LB-055 D Project Fuji

F

February28, 2019

3,680

3,730

5.6

3,630

LB-056 D Project Tosu III

T

February28, 2019

9,380

9,440

5.1

9,360

LM-001 DPL Misato

T

February28, 2019

17,80018,0004.1

17,700LM-002 DPL Fukuoka Kasuya

F

February28, 2019

13,30013,400

4.6

13,100

LB-042 D Project Sano

1,800

1,810

5.5

1,790

11th year

5.7

5.6

1st to 5th year
5.0
6th year and later
5.1

5.2

1st to 2nd year
4.6
3rd year and later
4.7

4.8

1st to 8th year
7,150

7,160

4.8

4,440

4.7
(Note 4)

7,140

4.8
9th year and later
4.9

5.0

Period earning
LB-052 D Project Osaka Hirabayashi

4,350

4,310

4.6
Terminal value–(Note 4)

4.9
5.0

5.4

1st to 2nd year
5.5
3rd year and later
5.6
5.4

5.7

5.9

1st to 3rd year
5.0
4th year and later
5.2

5.3

1st to 5th year

- 89 -

4.1
6th year and later
4.2
4.4

4.3

4.8

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameAppraisal
agency(Note 1)

Date ofvalue
appraised

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price
based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod(%)
Building A
1st to 4th year
5.4
5th to 9th year
5.5
10th year and later
5.6
3,600
Building B
1st to 3rd year
5.4
4th to 8th year
5.5
9th year and later
5.6

LM-003 DPL Kitakyushu

TFebruary28, 2019

3,580

3,530

5.5

RE-001 Qiz Ebisu

T

February28, 2019

8,810

9,030

3.7

8,720

3.9

3.9

Castalia Azabujuban
Shichimenzaka

C

February28, 2019

4,350

4,390

4.1

4,330

3.9

4.3

RE-003 Castalia Shibakoen

T

February28, 2019

2,310

2,340

4.1

2,290

4.2

4.3

RE-004 Castalia Ginza

T

February28, 2019

2,260

2,270

4.1

2,250

4.1

4.3

RE-005 Castalia Hiroo

T

February28, 2019

1,930

1,980

3.9

1,910

4.0

4.1

RE-006 Castalia Nihonbashi

T

February28, 2019

1,190

1,200

4.2

1,190

4.2

4.4

RE-007 Castalia Hacchobori

T

February28, 2019

2,330

2,340

4.2

2,320

4.2

4.4

RE-008 Castalia Azabujuban

C

February28, 2019

2,730

2,770

4.1

2,710

3.9

4.3

RE-009 Castalia Azabujuban IIC

February28, 2019

2,560

2,620

4.0

2,540

3.8

4.2

RE-010 Castalia Shinjuku Natsumezaka

C

February28, 2019

1,630

1,660

4.2

1,620

4.0

4.4

RE-011 Castalia Ginza II

T

February28, 2019

1,760

1,770

4.1

1,750

4.1

4.3

RE-012 Castalia Shibuya Sakuragaoka

T

February28, 2019

1,180

1,210

3.9

1,170

4.1

4.1

Castalia Nishi Azabu
Kasumicho

T

February28, 2019

2,480

2,510

4.0

2,470

4.1

4.2

RE-014 Castalia Ochanomizu

F

February28, 2019

2,250

2,290

4.1

2,210

3.9

4.3

RE-015 Castalia Sangubashi

T

February28, 2019

1,530

1,550

4.1

1,520

4.3

4.3

RE-016 Castalia Suitengu

T

February28, 2019

1,540

1,550

4.2

1,540

4.2

4.4

RE-017 Castalia Suitengu II

T

February28, 2019

1,390

1,410

4.1

1,380

4.2

4.3

RE-018 Castalia ShintomichoT

February28, 2019

1,120

1,130

4.2

1,110

4.2

4.4

RE-019 Castalia Shintomicho II

T

February28, 2019

988

996

4.2

984

4.2

4.4

RE-020 Castalia Harajuku

FFebruary28, 2019

970

987

3.9

953

3.7

4.1

RE-021 Castalia Yoyogi UeharaF

February28, 2019

740

751

4.0

729

3.8

4.2

RE-022 Castalia Sendagaya

F

February28, 2019

654

664

4.0

643

3.8

4.2

RE-023 Castalia Shinjuku 7 chomeF

February28, 2019

541

548

4.4

533

4.2

4.6

RE-002

RE-013- 90 -

5.7

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameAppraisal
agency(Note 1)

Date ofvalue
appraised

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price
based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod(%)

RE-024 Castalia Ningyocho

F

February28, 2019

1,290

1,310

4.1

1,270

3.9

4.3

RE-025 Castalia Ningyocho II

F

February28, 2019

1,420

1,440

4.1

1,390

3.9

4.3

RE-026 Castalia Shin-Ochanomizu

F

February28, 2019

1,090

1,100

4.1

1,070

3.9

4.3

RE-027 Castalia Higashi Nihonbashi II

FFebruary28, 2019

1,710

1,730

4.1

1,680

3.9

4.3

RE-028 Castalia Jinbocho

F

February28, 2019

1,460

1,480

4.1

1,430

3.9

4.3

RE-029 Castalia Shintomicho III

F

February28, 2019

771

785

4.2

757

3.9

4.5

RE-030 Castalia Shinjuku Gyoen

T

February28, 2019

3,320

3,400

4.1

3,290

4.3

4.3

RE-031 Castalia Takanawadai

F

February28, 2019

1,050

1,060

4.0

1,030

3.8

4.2

RE-032 Castalia Higashi Nihonbashi III

D

February28, 2019

830

840

4.1

825

3.9

4.3

RE-033 Castalia Shinjuku Gyoen II

T

February28, 2019

550

565

4.1

543

4.3

4.3

RE-034 Castalia Shintomicho IV

D

February28, 2019

505

511

4.1

502

3.9

4.3

RE-035 Castalia Takanawadai II

FFebruary28, 2019

1,380

1,400

4.0

1,360

3.8

4.2

RE-036 Castalia Minami Azabu

F

February28, 2019

710

722

4.0

698

3.8

4.2

RE-037 Castalia Ginza III

T

February28, 2019

3,070

3,110

4.1

3,050

4.1

4.3

RE-038 Castalia KayabachoT

February28, 2019

3,240

3,250

4.2

3,230

4.2

4.4

RE-039 Castalia Takanawa

T

February28, 2019

8,240

8,460

4.1

8,150

4.4

4.3

RE-040 Castalia Higashi Nihonbashi

C

February28, 2019

4,080

4,070

4.4

4,080

4.2

4.6

RE-041 Castalia Shinjuku

TFebruary28, 2019

3,500

3,580

4.1

3,470

4.3

4.3

RE-042 Castalia Ichigaya

C

February28, 2019

1,350

1,360

4.3

1,340

4.1

4.5

RE-043 Shibaura Island Bloom Tower

F

February28, 2019

9,350–(Note 3)–(Note 3)

9,350

3.9

5.9

RE-044 Castalia HatsudaiD

February28, 2019

2,390

2,430

4.1

2,370

3.9

4.3

RE-045 Castalia Hatsudai II

MFebruary28, 2019

2,180

2,210

3.9

2,140

3.7

4.1

RE-046 Castalia Ebisu

M

February28, 2019

1,640

1,670

3.8

1,600

3.6

4.0

RE-047 Castalia Meguro Kamurozaka

D

February28, 2019

4,470

4,540

4.0

4,440

3.8

4.2

RE-048 Castalia Toritsudaigaku

CFebruary28, 2019

536

547

5.0

531

4.8

5.3

RE-049 Castalia Yukigaya

TFebruary28, 2019

1,150

1,160

4.2

1,140

4.3

4.4

RE-050 Castalia Yutenji

C

February28, 2019

1,320

1,350

4.1

1,310

3.9

4.3

RE-051 Castalia Otsuka

C

February28, 2019

1,650

1,660

4.2

1,650

4.0

4.4

RE-052 Castalia Kikukawa

TFebruary28, 2019

809

817

4.3

805

4.4

4.5

RE-053 Castalia Meguro

F

February28, 2019

1,070

1,080

4.2

1,060

3.9

4.4

- 91 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameAppraisal
agency(Note 1)

Date ofvalue
appraised

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price
based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod(%)

RE-054 Castalia Otsuka IIFFebruary28, 2019

1,290

1,310

4.2

1,270

4.0

4.4

RE-055 Castalia Jiyugaoka

F

February28, 2019

1,400

1,420

4.0

1,380

3.8

4.2

RE-056 Castalia Mejiro

C

February28, 2019

1,100

1,110

4.5

1,090

4.3

4.7

RE-057 Castalia Ikebukuro

D

February28, 2019

2,950

2,990

4.1

2,930

3.9

4.3

RE-058 Castalia Kaname-cho

TFebruary28, 2019

1,280

1,310

4.2

1,270

4.4

4.4

T

February28, 2019

9,130

9,190

4.2

9,100

4.2

4.4

RE-060 Castalia Yakumo

TFebruary28, 2019

819

829

4.1

814

4.3

4.3

RE-061 Castalia TogoshiekimaeF

February28, 2019

2,050

2,080

4.2

2,020

4.0

4.4

RE-062 Castalia Honjo Azumabashi

T

February28, 2019

1,230

1,240

4.4

1,220

4.5

4.6

RE-063 Castalia Kitazawa

F

February28, 2019

849

862

4.1

836

3.9

4.3

RE-064 Castalia MonzennakachoTFebruary28, 2019

603

612

4.4

599

4.5

4.6

RE-065 Castalia Kamiikedai

F

February28, 2019

222

223

4.8

220

4.4

5.0

RE-066 Castalia MorishitaF

February28, 2019

1,050

1,060

4.2

1,030

4.0

4.4

RE-067 Castalia Wakabayashikoen

D

February28, 2019

864

875

4.1

859

3.9

4.3

RE-068 Castalia Asakusabashi

C

February28, 2019

984

982

4.4

985

4.2

4.6

RE-069 Castalia Iriya

C

February28, 2019

671

674

4.8

669

4.6

5.0

RE-070 Castalia Kita Ueno

T

February28, 2019

2,880

2,920

4.3

2,860

4.4

4.5

RE-071 Castalia Morishita II

T

February28, 2019

833

836

4.3

831

4.4

4.5

RE-072 Castalia Minowa

T

February28, 2019

1,580

1,600

4.3

1,570

4.4

4.5

RE-073 Castalia Oyamadai

TFebruary28, 2019

613

622

4.2

609

4.3

4.4

RE-074 Castalia Nakano

F

February28, 2019

1,280

1,300

4.1

1,260

3.9

4.3

RE-075 Castalia Yoga

T

February28, 2019

1,170

1,200

4.1

1,160

4.3

4.3

RE-076 Castalia Sumiyoshi

T

February28, 2019

1,060

1,070

4.3

1,050

4.4

4.5

RE-077 Castalia Monzennakacho II

F

February28, 2019

2,760

2,800

4.1

2,710

3.9

4.3

T

February28, 2019

RE-059Castalia Tower Shinagawa
Seaside1st to 10th year
RE-078 Castalia Oshiage

1,150

1,160

4.4

1,150

4.7
11th year

4.6

4.5
1st to 10th year
RE-079 Castalia KuramaeT

February28, 2019

1,500

1,530

4.3

1,490

4.5
11th year

4.5

4.4
RE-080 Castalia Nakanobu

C

February28, 2019

2,590

2,630

4.2

2,570

4.0

4.4

RE-081 Royal Parks Toyosu

CFebruary28, 2019

9,950

10,100

4.6

9,890

4.3

4.9

- 92 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameAppraisal
agency(Note 1)

Date ofvalue
appraised

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price
based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod(%)

RE-082 Castalia Togoshi

C

February28, 2019

2,520

2,550

4.3

2,510

4.1

4.5

RE-083 Castalia Ooimachi

M

February28, 2019

1,540

1,570

3.8

1,510

3.6

4.0

RE-084 Castalia Omori

C

February28, 2019

1,810

1,830

4.3

1,800

4.1

4.5

RE-085 Castalia Mishuku

C

February28, 2019

2,320

2,350

4.3

2,310

4.1

4.5

RE-086 Castalia Arakawa

C

February28, 2019

2,190

2,200

4.5

2,190

4.3

4.7

RE-087 Castalia Omori II

M

February28, 2019

3,010

3,050

3.9

2,970

3.7

4.1

RE-088 Castalia Nakameguro

M

February28, 2019

4,530

4,600

3.8

4,460

3.6

4.0

RE-089 Castalia Meguro Chojyamaru

M

February28, 2019

2,400

2,440

3.8

2,350

3.6

4.0

RE-090 Castalia Meguro Takaban

M

February28, 2019

1,900

1,930

4.0

1,860

3.8

4.2

RE-091 Castalia Omori III

M

February28, 2019

1,740

1,770

4.0

1,710

3.8

4.2

RE-093 Castalia Meguro Tairamachi

M

February28, 2019

1,320

1,350

3.7

1,290

3.5

3.9

1st to 10th year
5.0
4,980 11th year to end ofland leasing period
5.4

RE-094 Royal Parks SEASIRM

February28, 2019

4,980

5,080

5.2
(Note 4)–(Note 4)

RE-095 Castalia Honkomagome

M

February28, 2019

1,830

1,860

4.1

1,790

3.9

4.3

RE-096 Cosmo Heim Musashikosugi

C

February28, 2019

2,020

2,050

4.8

2,000

4.6

5.0

RE-097 Castalia Tsurumi

C

February28, 2019

754

755

5.1

754

4.9

5.3

RE-098 Castalia Funabashi

T

February28, 2019

794

796

4.9

793

RE-099 Castalia Nishi Funabashi

F

February28, 2019

954

964

5.1

944

4.9

5.3

RE-105 Castalia Nogeyama

F

February28, 2019

328

331

5.0

324

4.8

5.2

RE-106 Castalia Ichikawa

F

February28, 2019

549

554

4.9

543

4.8

5.2

1st to 2nd year
4.9
3rd to 11th year

5.1

4.7

1st to 10th year
RE-107 Royal Parks Hanakoganei

D

February28, 2019

6,280

6,220

5.0
(Note 4)

RE-108 Castalia Musashikosugi

MFebruary28, 2019

1,890

1,920

4.3

D

February28, 2019

4,690

5.1
(Note 4)M

February28, 2019

11,1004.8(Note 4)4.8
6,300 11th year to end ofland leasing period
5.2
1,850

4.1

–
(Note 4)4.5

1st to 10th year
RE-109 Royal Parks Wakabadai

4,790

4.9
4,830 11th year to end ofland leasing period
5.3–(Note 4)

1st to 10th year
Pacific Royal Court
RE-110
Minatomirai Urban Tower

10,900- 93 -

4.6
10,900 11th year to end ofland leasing period
5.0–(Note 4)

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameAppraisal
agency(Note 1)

RE-111 L-Place Shinkoyasu

F

Date ofvalue
appraisedFebruary28, 2019

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price
based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod
(%)
2,110

2,130

4.8

2,080

4.6

5.0

1st to 10th year
4.5
1,310 11th year to end ofland leasing period
4.9

RE-112 Royal Parks Musashikosugi

MFebruary28, 2019

1,310

1,330

4.7
(Note 4)

RE-116 Castalia Sakaisuji Honmachi

T

February28, 2019

1,820

1,830

4.5

1,810

4.6

4.7

RE-117 Castalia Shin-Umeda

T

February28, 2019

1,590

1,600

4.6

1,580

4.7

4.8

RE-118 Castalia Abeno

T

February28, 2019

5,310

5,350

4.5

5,290

4.6

4.7

RE-119 Castalia Sakae

C

February28, 2019

1,220

1,220

4.8

1,220

4.6

5.0

RE-121 Castalia Maruyama UrasandoT

February28, 2019

508

509

4.8

507

4.8

5.0

Castalia Maruyama
OmotesandoT

February28, 2019

2,010

2,020

4.8

2,000

4.8

5.0

RE-123 Castalia Higashi Hie

T

February28, 2019

1,050

1,060

4.8

1,040

5.0

5.0

RE-124 Castalia Tower Nagahoribashi

C

February28, 2019

4,620

4,640

4.7

4,610

4.5

4.9

RE-125 Castalia Sannomiya

DFebruary28, 2019

1,500

1,510

4.9

1,490

4.7

5.1

RE-126 Castalia Kotodaikoen

D

February28, 2019

558

557

5.2

558

5.2

5.4

RE-127 Castalia IchibanchoD

February28, 2019

938

946

5.2

935

5.2

5.4

RE-128 Castalia Omachi

D

February28, 2019

820

821

5.2

819

5.2

5.4

RE-129 Castalia Uemachidai

DFebruary28, 2019

2,770

2,800

4.6

2,750

4.4

4.8

RE-130 Castalia Tower Higobashi

C

February28, 2019

3,590

3,600

4.7

3,580

4.5

4.9

RE-131 Big Tower Minami Sanjo

D

February28, 2019

2,650

2,660

5.1

2,650

4.9

5.3

RE-132 Castalia Fushimi

F

February28, 2019

3,110

3,150

4.6

3,070

4.4

4.8

RE-133 Castalia Meieki Minami

M

February28, 2019

964

981

4.3

947

4.1

4.5

RE-134 Castalia Yakuin

M

February28, 2019

1,180

1,200

4.4

1,160

4.2

4.6

RE-135 Castalia Mibu

F

February28, 2019

1,490

1,510

4.7

1,470

4.5

4.9

RE-136 Castalia Tsutsujigaoka

M

February28, 2019

1,750

1,770

4.8

1,720

4.6

5.0

RE-137 Castalia Ohori Bay Tower

M

February28, 2019

3,670

3,750

5.2

3,580

5.0

5.4

RE-122–(Note 4)

1st to 10th year
5.3
2,970 11th year to end ofland leasing period
5.7

RE-138 Royal Parks Namba

D

February28, 2019

2,970

2,960

5.4
(Note 4)RE-139 Castalia ShigahondoriF

February28, 2019

2,090

2,110

4.8

2,060

4.6

5.0

RE-140 Castalia Kyoto Nishioji

M

February28, 2019

1,080

1,100

4.4

1,060

4.2

4.6

RE-141 Castalia Ningyocho III

F

February28, 2019

2,440

2,470

4.0

2,400

3.8

4.2

- 94 -–(Note 4)

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameAppraisal
agency(Note 1)

Date ofvalue
appraised

Value based on income method (Millions of yen) (Note 2)
Appraisal
Price
based
Terminal
value
Capitalization Price basedon direct
capitalization
Discount rate
(Millionsrate
on DCF(%)
rateof yen) capitalization(%)
methodmethod
(%)
1st to 10th year
2,200

2,250

5.2
(Note 4)5.0
2,200 11th year to end ofland leasing period
5.4–(Note 4)

RE-142 Royal Parks UmejimaM

February28, 2019

RE-143 Castalia Shinsakae II

D

February28, 2019

1,960

1,990

4.9

1,940

4.7

5.1

RM-001 ACROSSMALL Shinkamagaya

F

February28, 2019

8,340

8,420

5.5

8,260

5.2

5.7

RM-002 FOLEO Hirakata

F

February28, 2019

4,670

4,710

6.0

4,630

5.5

6.1

RM-003 QiZ GATE URAWA

F

February28, 2019

4,330

4,360

5.5

4,290

5.1

5.6

RM-004 UNICUS Takasaki

F

February28, 2019

3,110

3,120

6.1

3,090

5.8

6.3

T

February28, 2019

3,950–(Note 3)–(Note 3)

3,950

4.2

–
(Note 4)

RM-006 DREAM TOWN ALi

F

February28, 2019

8,510

8,630

5.6

8,390

5.4

5.9

RM-007 ASOBOX (Land)F

February28, 2019

1,900–(Note 3)–(Note 3)

1,900

4.9

–
(Note 4)

RM-008 FOLEO Ome ImaiF

February28, 2019

3,950

3,980

5.1

3,920

4.6

5.4

RM-009 FOLEO Otsu Ichiriyama

F

February28, 2019

8,450

8,540

5.5

8,350

5.3

5.8

RM-010 FOLEO Hakata

F

February28, 2019

3,680

3,740

4.8

3,620

4.6

5.1

T

February28, 2019

3,880–(Note 3)–(Note 3)

3,880

4.3

–
(Note 4)

RR-001 LIFE Sagamihara Wakamatsu

F

February28, 2019

1,800

1,820

4.7

1,780

4.3

4.8

RR-002 FOLEO Sendai Miyanomori

F

February28, 2019

7,380

7,420

5.6

7,330

5.3

5.8

RM-005

RM-011ACROSSPLAZA Miyoshi(Land)ACROSSMALL Semboku(Land)

RR-003

ACROSSPLAZA Inazawa(Land)

F

February28, 2019

2,520–(Note 3)–(Note 3)

2,520

5.1

–
(Note 4)

RR-004Sports Depo and GOLF5
Kokurahigashi IC StoreT

February28, 2019

2,400

2,410

6.0

2,400

6.1

6.2

RR-005

Hiratsuka Retail Property(Land)

T

February28, 2019

6,640–(Note 3)–(Note 3)

6,640

4.0

–
(Note 4)

RR-006

Royal Home Center
Morinomiya (Land)

T

February28, 2019

5,220–(Note 3)–(Note 3)

5,220

4.0

–
(Note 4)D

February28, 2019

4,600

4,590

5.6

4,600

5.4

5.8

RU-001 COMBOX310
HO-001

Daiwa Roynet Hotel Yokohama
KannaiD

February28, 2019

4,940

4,970

4.7

4,930

4.5

4.9

HO-002

Super Hotel JR Nara Station
Sanjo Street

D

February28, 2019

1,490

1,500

4.8

1,480

4.6

5.0

OT-001 Urban Living Inage

D

February28, 2019

1,280

1,290

5.3

1,270

5.1

5.5

OT-002 Aburatsubo Marina HILLSF

February28, 2019

1,260

1,270

6.1

1,250

5.9

6.3

Naha Shin-Toshin Center
OT-003 Building (Daiwa Roynet Hotel
Naha-Omoromachi)D

February28, 2019

8,010

8,010

5.5

8,010

5.3

5.7

OT-004 Sharp Hiroshima Building

F

February28, 2019

1,950

1,970

5.3

1,930

5.1

5.5

(Note 1)

In “Appraisal agency,” “D” represents DAIWA REAL ESTATE APPRAISAL CO., LTD., “C” represents Chuo Real
Estate Appraisal Co., Ltd., “T” represents The Tanizawa Sōgō Appraisal Co., Ltd., “F” represents Japan Real Estate
Institute, and “M” represents JLL Morii Valuation & Advisory K.K.

- 95 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

(Note 2)

(Note 3)(Note 4)

“Value based on income method” represents value calculated by the direct capitalization method and value calculatedby the DCF method. The direct capitalization method is a technique to estimate a value by dividing net cash flow fora period by the capitalization rate. The DCF method is a technique to estimate a value based on income calculated bydiscounting net cash flow and terminal value for consecutive multiple periods to the present values corresponding to
the periods in which each belong and adding the respective discounted values together.
In this appraisal, because the contractual terms prescribe the restoration of land to its original state at the expiry of theagreement and the direct capitalization method where net cash flow over a period of time is capitalized at thecapitalization rate is not suitable, the price based on the direct capitalization method was not calculated.
The capitalization rate states the discount rate used in the direct capitalization method (inwood method). Since thecapitalization method was not applied in the calculation of price of selling the vacant lot, the terminal capitalization
rate was not presented.

- 96 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(4) Summary on Engineering Report
DHR obtains building condition evaluation reports and detailed earthquake risk analysis reports
concerning building inspections, building evaluations, compliance with relevant laws and regulations,evaluations of repairs and maintenance expenses, environmental assessments, and earthquake risk
analyses (collectively termed “Engineering Reports”) from Tokio Marine & Nichido Risk Consulting
Co., Ltd. for each real estate or each real estate in trust owned by DHR. The summary of theEngineering Reports for each real estate or each real estate in trust as of February 28, 2019, is asfollows:
Property
number
LB-001
LB-002
LB-003
LB-004
LB-005
LB-006
LB-007
LB-008Property name
D Project Machida
D Project Hachioji
D Project Aikawa-Machi
D Project Shin-Misato
D Project Urayasu I
D Project Urayasu II
D Project Akanehama
D Project Noda

Repairs and maintenance expenses(Thousands of yen) (Note 1)
Long-term
Emergency
Short-term(12 years)––
275,315––
188,463––
27,858––38,465––200,122––
273,325––
18,091––64,458PML (%)(Note 2)
2.7
6.0
5.5
0.8
3.5
2.1
1.7
1.7

LB-009D Project Inuyama (Note 3)––

124,865

2.7

LB-010
LB-011
LB-012
LB-013
LB-014
LB-015
LB-016
LB-017
LB-018
LB-019
LB-020
LB-021
LB-022
LB-023
LB-024
LB-025
LB-026
LB-027
LB-028
LB-029LB-030
LB-031
LB-032
LB-033
LB-034
LB-035
LB-036
LB-037
LB-038
LB-039LB-040
LB-041
LB-042
LB-043
LB-044
LB-045
LB-046
LB-047
LB-048
LB-049
LB-050
LB-051
LB-052
LB-053
LB-054
LB-055
LB-056

D Project Gifu
D Project Neyagawa
D Project Sapporo Minami
D Project Morioka
D Project Sendai Minami
D Project Tsuchiura
D Project Gotenba
D Project Nishi-Hiroshima
D Project Fukuoka Umi
D Project Tosu
D Project Kuki I
D Project Kuki II
D Project Kawagoe I
D Project Kawagoe II
DPL Inuyama
D Project Fukuoka Hakozaki
D Project Kuki III
D Project Kuki IV
D Project Kuki V
D Project Kuki VI
D Project Yashio
D Project Nishiyodogawa
D Project Matsudo
D Project Hibiki Nada
D Project Morioka II
D Project Kawagoe III
D Project Kazo
D Project Urayasu III
D Project Tomisato
D Project Kyotanabe
D Project Sendai Izumi
D Project Oyama
D Project Sano
D Project Tatebayashi
D Project Kakegawa
D Project Hiroshima Seifu
D Project Tosu II
D Project Kawagoe IV
D Project Kuki VII
D Project Chibakita
D Project Matsudo II
D Project Tomisato II
D Project Osaka Hirabayashi
D Project Sendai Izumi II
D Project Kaminokawa
D Project Fuji
D Project Tosu III

–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
50
–
–
50
–
–
–

–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–

13,29723,505
26,61642,41027,07032,53537,81035,594
126,738
11,00053,893
77,66050,8895,231
56,367
123,696
42,95011,712
59,38541,38069,61820,912
20,86877,61920,721
99,12944,541
236,787
57,681
47,381
29,414
31,146
38,71445,05658,49339,347
26,713
134,126
42,27458,38677,49657,78735,471
99,230227,367
66,58893,341

4.1
2.7
1.9
8.1
1.5
1.6
7.0
2.3
1.3
5.2
0.5
3.4
7.6
3.2
7.0
10.9
0.1
1.7
2.8
2.0
1.6
7.3
3.1
1.3
14.5
2.2
1.2
3.7
2.9
5.7
4.4
1.6
1.5
1.8
9.1
4.7
3.0
3.5
1.5
2.4
3.5
2.1
8.0
6.7
1.3
14.0
4.3

- 97 -

Preparation
date of the relevantbuilding condition
evaluation reportAugust 2017
August 2017
August 2017
August 2017
August 2017
August 2017
August 2017
August 2017
August 2017
February 2018
August 2017
August 2017
August 2017
August 2017
August 2017
August 2017
August 2017
August 2017
August 2017
August 2017
February 2019
February 2019
February 2019
February 2014
February 2019
February 2019
February 2015
February 2015
February 2015
February 2015
February 2015
February 2015
February 2015
April 2016
March 2016
February 2017
February 2017
February 2017
February 2017
February 2017
February 2017
February 2017
February 2017
February 2017
February 2017
February 2017
February 2017
February 2018
February 2018
February 2018
February 2018
February 2018
February 2018
February 2018
February 2018
February 2018
February 2018

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number

Property nameLM-001
LM-002
LM-003RE-001
RE-002
RE-003RE-004RE-005RE-006RE-007RE-008RE-009RE-010RE-011
RE-012
RE-013RE-014RE-015RE-016RE-017
RE-018RE-019RE-020RE-021
RE-022
RE-023RE-024RE-025RE-026RE-027
RE-028RE-029RE-030RE-031
RE-032
RE-033
RE-034RE-035
RE-036RE-037
RE-038RE-039RE-040RE-041
RE-042
RE-043RE-044RE-045RE-046RE-047
RE-048RE-049RE-050RE-051
RE-052RE-053RE-054RE-055RE-056RE-057RE-058RE-059
RE-060
RE-061
RE-062
RE-063RE-064RE-065

DPL Misato
DPL Fukuoka Kasuya
DPL Kitakyushu
Qiz Ebisu
Castalia Azabujuban Shichimenzaka
Castalia Shibakoen
Castalia Ginza
Castalia Hiroo
Castalia Nihonbashi
Castalia Hacchobori
Castalia Azabujuban
Castalia Azabujuban II
Castalia Shinjuku Natsumezaka
Castalia Ginza II
Castalia Shibuya Sakuragaoka
Castalia Nishi Azabu Kasumicho
Castalia Ochanomizu
Castalia Sangubashi
Castalia Suitengu
Castalia Suitengu II
Castalia Shintomicho
Castalia Shintomicho II
Castalia Harajuku
Castalia Yoyogi Uehara
Castalia Sendagaya
Castalia Shinjuku 7 chome
Castalia Ningyocho
Castalia Ningyocho II
Castalia Shin-Ochanomizu
Castalia Higashi Nihonbashi II
Castalia Jinbocho
Castalia Shintomicho III
Castalia Shinjuku Gyoen
Castalia Takanawadai
Castalia Higashi Nihonbashi III
Castalia Shinjuku Gyoen II
Castalia Shintomicho IV
Castalia Takanawadai II
Castalia Minami Azabu
Castalia Ginza III
Castalia Kayabacho
Castalia Takanawa
Castalia Higashi Nihonbashi
Castalia Shinjuku
Castalia Ichigaya
Shibaura Island Bloom Tower
Castalia Hatsudai
Castalia Hatsudai II
Castalia Ebisu
Castalia Meguro Kamurozaka
Castalia Toritsudaigaku
Castalia Yukigaya
Castalia Yutenji
Castalia Otsuka
Castalia Kikukawa
Castalia Meguro
Castalia Otsuka II
Castalia Jiyugaoka
Castalia Mejiro
Castalia Ikebukuro
Castalia Kaname-cho
Castalia Tower Shinagawa Seaside
Castalia Yakumo
Castalia Togoshiekimae
Castalia Honjo Azumabashi
Castalia Kitazawa
Castalia Monzennakacho
Castalia Kamiikedai

Repairs and maintenance expenses(Thousands of yen) (Note 1)
Long-term
Emergency
Short-term(12 years)––
297,332
516,216––
84,977––183,070––
98,288––––98,295––98,619––50,386––57,168––72,397––75,318––87,409––53,396––
40,586––55,552––
41,824––31,540––63,845––42,310––44,755––37,208––39,776––
58,662––
36,712––37,313––41,89439,495––42,335––44,699––71,520––54,406––43,489––––65,142––
43,633––43,554––
31,226
17,714––42,885––27,965––––95,256––
95,974––
266,139––
116,722––
32,453––34,073––418,923––
101,851––
51,667––41,598––126,143––
56,449––69,120––43,828––57,326––53,076––28,15642,746––
62,055––––45,570––66,490––51,382––
274,548––
43,824––
31,373––36,364––30,415––41,454––
12,823- 98 -PML (%)(Note 2)
0.5
0.9
1.1
3.4
2.3
3.9
2.8
6.0
2.7
5.2
3.8
3.8
5.1
2.5
7.6
5.0
6.8
4.2
6.6
6.9
5.4
3.6
9.6
9.1
10.3
4.9
4.9
5.4
5.7
4.8
5.6
3.2
2.9
6.9
4.6
4.8
5.8
10.0
5.0
2.7
5.0
4.0
2.2
4.3
7.5
2.0
3.9
4.9
3.4
2.6
5.9
2.5
8.5
4.3
7.6
4.2
3.8
9.3
5.3
2.8
2.3
3.1
9.1
5.6
4.5
4.4
8.1
11.2

Preparation
date of the relevantbuilding condition
evaluation reportFebruary 2017
February 2018
September 2018
February 2019
February 2019
July 2018
July 2018
February 2017
February 2019
July 2015
February 2016
February 2016
August 2016
August 2016
January 2017
January 2018
January 2018
January 2018
July 2018
July 2018
July 2018
July 2018
January 2018
January 2018
January 2018
January 2018
February 2019
February 2019
February 2019
February 2019
February 2019
February 2019
July 2018
July 2018
July 2018
July 2018
July 2018
February 2019
February 2019
July 2015
July 2015
July 2015
July 2015
July 2015
July 2015
August 2016
August 2016
July 2017
July 2017
February 2019
January 2018
February 2016
February 2016
August 2016
August 2016
January 2018
February 2019
February 2019
July 2015
February 2019
July 2015
July 2015
July 2015
July 2015
July 2018
January 2018
January 2018
January 2018

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number
RE-066RE-067
RE-068RE-069RE-070RE-071
RE-072
RE-073RE-074RE-075RE-076RE-077
RE-078RE-079RE-080RE-081
RE-082
RE-083
RE-084RE-085RE-086RE-087
RE-088RE-089
RE-090
RE-091
RE-093
RE-094
RE-095
RE-096
RE-097
RE-098
RE-099RE-105
RE-106
RE-107
RE-108
RE-109RE-110
RE-111
RE-112
RE-116
RE-117
RE-118
RE-119RE-121
RE-122
RE-123
RE-124
RE-125
RE-126
RE-127
RE-128
RE-129RE-130RE-131
RE-132
RE-133
RE-134RE-135
RE-136
RE-137
RE-138
RE-139RE-140RE-141
RE-142

Property nameCastalia Morishita
Castalia Wakabayashikoen
Castalia Asakusabashi
Castalia Iriya
Castalia Kita Ueno
Castalia Morishita II
Castalia Minowa
Castalia Oyamadai
Castalia Nakano
Castalia Yoga
Castalia Sumiyoshi
Castalia Monzennakacho II
Castalia Oshiage
Castalia Kuramae
Castalia Nakanobu
Royal Parks Toyosu
Castalia Togoshi
Castalia Ooimachi
Castalia Omori
Castalia Mishuku
Castalia Arakawa
Castalia Omori II
Castalia Nakameguro
Castalia Meguro Chojyamaru
Castalia Meguro Takaban
Castalia Omori III
Castalia Meguro Tairamachi
Royal Parks SEASIR
Castalia Honkomagome
Cosmo Heim Musashikosugi
Castalia Tsurumi
Castalia Funabashi
Castalia Nishi Funabashi
Castalia Nogeyama
Castalia Ichikawa
Royal Parks Hanakoganei
Castalia Musashikosugi
Royal Parks Wakabadai
Pacific Royal Court Minatomirai
Urban Tower
L-Place Shinkoyasu
Royal Parks Musashikosugi
Castalia Sakaisuji Honmachi
Castalia Shin-Umeda
Castalia Abeno
Castalia Sakae
Castalia Maruyama Urasando
Castalia Maruyama Omotesando
Castalia Higashi Hie
Castalia Tower Nagahoribashi
Castalia Sannomiya
Castalia Kotodaikoen
Castalia Ichibancho
Castalia Omachi
Castalia Uemachidai
Castalia Tower Higobashi
Big Tower Minami Sanjo
Castalia Fushimi
Castalia Meieki Minami
Castalia Yakuin
Castalia Mibu
Castalia Tsutsujigaoka
Castalia Ohori Bay Tower
Royal Parks Namba
Castalia Shigahondori
Castalia Kyoto Nishioji
Castalia Ningyocho III
Royal Parks Umejima

Repairs and maintenance expenses(Thousands of yen) (Note 1)
Long-term
Emergency
Short-term(12 years)––
39,361––
42,768––57,462600–
35,393––
141,363
36,879––69,378––––14,148––33,418––26,900––28,68164,061––64,580––64,028––––53,877––
265,862––
59,537––
43,161––
79,460––108,838––
98,574––
42,630––107,342––
54,250––88,717––48,261––
27,167––250,736––
15,112––
109,643––
32,193––71,478––42,396––
48,467––39,289––430,325––
56,442––
349,081

6.7
3.4
2.8
5.4
3.3
6.7
5.4
8.7
3.9
5.6
6.8
7.3
6.5
4.1
2.8
7.2
3.8
3.9
3.7
5.9
4.5
4.0
3.6
3.1
7.0
3.7
6.2
3.6
6.6
9.1
9.0
3.0
3.6
5.3
2.7
4.5
6.4
5.3

Preparation
date of the relevantbuilding condition
evaluation reportFebruary 2019
July 2018
February 2019
July 2015
July 2018
February 2019
February 2019
July 2015
July 2015
July 2015
July 2015
February 2019
February 2019
February 2019
July 2015
July 2015
July 2015
February 2016
February 2016
February 2016
February 2016
August 2016
February 2017
July 2017
July 2017
July 2017
January 2018
February 2019
February 2015
January 2018
August 2016
January 2018
January 2018
January 2018
July 2018
February 2016
July 2017
March 2014

PML (%)(Note 2)––438,587

3.9

February 2015

–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–

–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–

20,57569,395
115,236
109,880
301,752
79,77854,712
187,773
136,557
219,649
97,414
68,19895,966
50,682
67,67595,723
198,537
131,779
60,447102,156
54,21778,747
294,660
293,019
135,510
39,962
19,732
91,236

3.0
6.2
6.1
8.3
10.1
4.2
1.3
1.1
2.6
4.6
5.3
3.4
2.9
2.6
5.9
5.8
0.9
3.1
4.6
5.6
9.4
2.7
1.9
7.8
2.3
9.3
3.6
4.1

February 2015
February 2019
February 2019
February 2019
July 2015
July 2018
July 2018
July 2018
February 2016
February 2019
January 2018
July 2018
July 2018
July 2018
July 2015
July 2015
July 2018
July 2018
February 2016
February 2016
August 2016
January 2017
February 2019
January 2017
January 2017
September 2015
April 2016
April 2016

- 99 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019

Property
number
RE-143
RM-001
RM-002
RM-003
RM-004
RM-005
RM-006
RM-007
RM-008RM-009RM-010
RM-011
RR-001
RR-002
RR-003
RR-004
RR-005
RR-006
RU-001
HO-001
HO-002
OT-001
OT-002
OT-003
OT-004

Property name

Repairs and maintenance expenses(Thousands of yen) (Note 1)
Long-term
Emergency
Short-term(12 years)––
24,415––414,104––
333,040––
253,420––
119,348–––––
219,367–––––
31,736––
670,853––
275,039–––––
49,315––
121,705–––

Castalia Shinsakae II
ACROSSMALL Shinkamagaya
FOLEO Hirakata
QiZ GATE URAWA
UNICUS Takasaki
ACROSSPLAZA Miyoshi (Land)
DREAM TOWN ALi
ASOBOX (Land)
FOLEO Ome Imai
FOLEO Otsu Ichiriyama
FOLEO Hakata
ACROSSMALL Semboku (Land)
LIFE Sagamihara Wakamatsu
FOLEO Sendai Miyanomori
ACROSSPLAZA Inazawa (Land)
Sports Depo and GOLF5
Kokurahigashi IC Store
Hiratsuka Retail Property (Land)
Royal Home Center Morinomiya(Land)COMBOX310
Daiwa Roynet Hotel Yokohama
KannaiSuper Hotel JR Nara Station Sanjo
StreetUrban Living Inage
Aburatsubo Marina HILLSNaha Shin-Toshin Center Building(Daiwa Roynet Hotel NahaOmoromachi)
Sharp Hiroshima Building
Portfolio PML (Note 5)

PML (%)(Note 2)
4.5
2.4
13.3
1.8
1.0
– (Note 4)
1.8– (Note 4)
9.3
14.7
1.2
– (Note 4)
11.0
2.8– (Note 4)

Preparation
date of the relevantbuilding condition
evaluation reportFebruary 2017
November 2017
February 2018
February 2018
February 2018–
September 2015–
July 2017
February 2018
February 2018–
February 2018
February 2018–––

160,912

0.5

–

–

–

– (Note 4)

–

–

–

–

– (Note 4)

–

–

–

–

1.6

November 2018––

100,991

9.7

February 2018––33,420

9.4

November 2018

–
–

–
–

41,90740,302

3.5
8.8

January 2017
July 2018––597,524

1.2

April 2016––

25,5253.0
1.4

February 2017–

April 2016

(Note 1) “Repairs and maintenance expenses” represent the amount exclusive of tax.
(Note 2) “PML (probable maximum loss)” is the ratio (%) of anticipated loss due to earthquake to reproduction cost from an
event with an annual exceedance probability of 0.21% (once in 475 years). However, PML in relation to the portfolio
relates to groups of multiple buildings, and in consideration of the likelihood of damage occurring simultaneously tomultiple buildings, the ratio (%) of anticipated loss affecting either single or multiple buildings in a group to
reproduction cost from an event with an annual exceedance probability of 0.21% (once in 475 years) is shown. DHR is
considering taking out earthquake insurance based on PML. However, there are no current plans to take out earthquake
insurance for each piece of real estate or real estate in trust above.
(Note 3) Regarding “D Project Inuyama,” DHR made an additional acquisition on April 10, 2018 (acquisition price ¥2,100
million), and the “preparation date of the relevant building condition evaluation report” information is listed
individually for the existing building and the additionally acquired building.
(Note 4) For ACROSSPLAZA Miyoshi (Land), ASOBOX (Land), ACROSSMALL Semboku (Land), ACROSSPLAZA
Inazawa (Land), Hiratsuka Retail Property (Land), and Royal Home Center Morinomiya (Land), PML figures were notpresented because only the land is owned and the building was not acquired.
(Note 5) “Portfolio PML” is a numerical value obtained in the same way for the aggregate of the 210 properties as for anindividual property, excluding ACROSSPLAZA Miyoshi (Land), ASOBOX (Land), ACROSSMALL Semboku(Land), ACROSSPLAZA Inazawa (Land), Hiratsuka Retail Property (Land), and Royal Home Center Morinomiya(Land), for which only the land was acquired, based on the report on earthquake risk assessment provided by Tokio
Marine & Nichido Risk Consulting Co., Ltd.

- 100 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(5) Status of Portfolio Diversification (As of February 28, 2019)i)

Investment ratio by area
Area (Note 1)
Three major
metropolitan
areas of Japan

Number of properties

Acquisition price(Millions of yen)

Investment ratio (%)(Note 2)

Greater Tokyo area

145

448,156

65.6

Greater Nagoya area

925,740

3.8

Greater Osaka area

19

67,0209.8

43142,52720.9

216

683,443

100.0

Other
Total

79.1

(Note 1) For details of “Area,” please refer to “(1) Portfolio List, i) Status of Investment (Note 1)” above.
(Note 2) “Investment ratio” is calculated based on the acquisition price, rounded to the nearest tenth. The same shallapply hereinafter.

ii) Investment ratio by asset class
Asset classCore assets

Number of properties

Acquisition price(Millions of yen)

Investment ratio (%)

Logistics properties

59

340,00949.7

Residential properties

133

246,424

36.1

Retail properties

18

79,26011.6

Hotel properties

2

6,270

0.9

Other assets
Total

98.3

4

11,4801.7

216

683,443

100.0iii) Diversification by age of property
Age of property

Number of properties

Acquisition price(Millions of yen)

Investment ratio (%)

Less than 5 years

24

92,26513.9

5 years or more but less than 10 years

35

195,322

29.5

10 years or more

151

374,75656.6

210

662,343

100.0

Total

iv) Average age of property by asset class
Asset class

Average age (year)

Logistics properties

7.9

Residential properties

13.0

Retail properties

10.1

Hotel properties

8.3

Other assets

7.4
Total

10.0

(Note) “Average age” is the weighted average age of owned properties as of February 28, 2019 based on the acquisition
price, rounded to the nearest tenth.

- 101 -

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019(6) Capital Expenditures for Properties Heldi)Schedule of capital expenditures
The following table shows major scheduled capital expenditures for planned renovation work, etc. forowned properties (real estate, real estate in trust, etc.) as of February 28, 2019. The estimatedconstruction cost includes the portion charged to expenses.

Property name (Location)

PurposeD Project Gotenba

Repair work of exterior(Gotenba City, Shizuoka)

walls

Qiz Ebisu(Shibuya Ward, Tokyo)

Scheduled period

From April 2019
to June 2019
From October 2018

Large-scale renovations

to November 2019

Estimated construction cost(Thousands of yen)
Payment
Total amount
Total amount during thepaidperiod39,420––292,680––

Castalia Ichigaya(Shinjuku Ward, Tokyo)

Large-scale renovations

From March 2019
to June 2019

51,591––

Royal Parks Hanakoganei(Kodaira City, Tokyo)

Large-scale renovations

From January 2019
to August 2019

158,544––

12,734––

86,40012,96073,440Royal Parks Musashikosugi

Preventive maintenance(Kawasaki City, Kanagawa)construction in mechanicalparking lots

ACROSSMALL
Shinkamagaya

Groundwater usage
facilities installation(Kamagaya City, Chiba)

construction

From August 2019
to August 2019
From October 2018
to March 2019ii) Capital expenditures during the period
For owned properties (real estate, real estate in trust, etc.), an overview of major construction work
conducted during the current fiscal period that falls into DHR’s capital expenditures is as follows.
Capital expenditures during the current fiscal period were ¥944,717 thousand together with ¥746,985
thousand in repairs and maintenance expenses and ¥230,219 thousand in restoration costs classified as
expenses for the current fiscal period, making a total of ¥1,921,923 thousand in construction work.
Property name (Location)
D Project Machida(Machida City, Tokyo)
Castalia Azabujuban II(Minato Ward, Tokyo)
Castalia Iriya(Taito Ward, Tokyo)
Castalia Oyamadai(Setagaya Ward, Tokyo)

Purpose

PeriodRepair work of exterior walls
Repair work of exterior walls
Repair work of exterior walls
Repair work of exterior walls

From October 2018
to January 2019
From October 2018
to February 2019
From October 2018
to February 2019
From November 2018
to February 2019

Royal Parks Hanakoganei

Repair work of exterior walls (Building

From August 2018

(Kodaira City, Tokyo)

A and C)

to February 2019

Castalia Yakuin(Fukuoka City, Fukuoka)

Preventive maintenance construction inmechanical parking lots

From February 2019
to February 2019

- 102 -

Construction cost(Thousands of yen)
96,351
29,54920,832
19,385102,518
16,377

Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended February 28, 2019iii) Cash reserves for long-term repair and maintenance plans
DHR sets aside the following cash reserves for repair and maintenance in order to provide for paymentof funds for future maintenance of the value of assets and the renewal of facilities and equipment.
(Unit: Thousands of yen)
Operating period

22nd period
From September 1, 2016
to February 28, 2017

Balance of reservesat beginning of
period589,520

1,298,495

1,439,455

1,470,535

1,509,615

Amount of reserves
during period

708,974

140,960

39,08039,08039,080

Amount of reversalof reserves during
period

–

–

8,000

–

–

1,298,495

1,439,455

1,470,535

1,509,615

1,548,695

Reserves carriedforward

23rd period
From March 1, 2017
to August 31, 201724th period
From September 1, 2017
to February 28, 2018

- 103 -

25th period
From March 1, 2018
to August 31, 2018

26th period
From September 1, 2018
to February 28, 2019